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Free and independent advice to help small business owners move forward with confidence. NSW small business owners can now access up to four hours of free, independent business advice each financial year through the Service NSW Small Business Advisory program. The program is designed to help people who are thinking about starting a business, owners already running a business or business owners planning for change. Eligible businesses can receive advice in person, online or over the phone. What small business support is available? The Small Business Advisory program provides access to independent business advisors with experience running a small business, together with workshops, webinars, networking opportunities and online learning resources. Eligible businesses can access up to four hours of advice each financial year across areas including: business planning marketing finance staffing digital skills artificial intelligence (AI). For micro and smaller businesses in particular, the program provides an opportunity to bring a business issue or idea to an experienced advisor and experience first-hand the benefits that external advice can bring. Appointments can be managed through a self-service booking system. Who can access the program? You may be eligible if you own or operate a small business in NSW or are thinking about starting one. Eligibility requirements apply. Explore the Small Business Advisory program website to find an advisor, book free business advice, register for workshops, networking events and webinars, or access practical online resources and tools to help build your business skills: https://www.service.nsw.gov.au/business/small-business-advisory-program How Strategy360 By Collins Hume helps Northern Rivers small business Strategy360 are Business Valuation Specialists who work with business owners to grow earnings and business value by creating clarity around profit, cash flow, growth opportunities and business risk. Thinking about the value of your business or how to improve it? Contact the Strategy360 team to discuss your circumstances and the options available to you.

For many SMSF trustees, property is one of the most significant assets held by their SMSF. Unlike personally owned assets, there is a legal requirement that all SMSF assets are valued each 30 June. This can be a simple process for assets that have a ready market like listed shares, however the process for other assets like property can be more onerous. Trustees are responsible for determining the market value of fund assets. After your annual financial statements are prepared your fund auditor will need to see objective and supportable evidence that backs up how you have arrived at the market value. Trustees have the option to use a qualified independent valuer for this and should consider this where an asset represents a significant part of the fund’s value or might be difficult to value. Where trustees choose not to use an independent valuer, they will need to be able to support asset valuations with evidence from multiple sources. Typically, for property this may include: Recent comparable sales – Generally at least 3 and the properties should be genuinely comparable in terms of size and location. A real estate agent appraisal that also includes comparable sales. Net income yields for commercial property (generally not sufficient evidence on its own). Where an SMSF holds property that meets the business real property (BRP) definition it is possible that this property can be leased to a business that is operated by a member or a related party of the SMSF. However, the fact that an arrangement like this is permitted does not mean the fund trustees can charge a non-market rate of rent. When a rental arrangement is entered into with a related party of the super fund, that arrangement should be on arm’s length (commercial) terms and this should be supported by a rental appraisal. An easy way to think about this is – do all the lease terms reflect an arrangement that would be agreed to if the tenant was an unrelated third party? To evidence that a related party arrangement is on arm’s length (commercial) terms an auditor should be provided with: A properly documented lease A rent appraisal when the lease was first entered into Evidence that the arrangement is operating based on the terms of the lease, and Evidence that where a prior lease term has expired the terms have been reset to market value – backed up by a new rent appraisal. Although your financial year 2026 SMSF audit might not be taking place for some months, the process can be much smoother where SMSF trustees are proactive and start to compile this evidence in advance, rather than waiting for the auditor’s request.

The Trident Fish & Grill: Building a Resilient Northern Rivers Business For more than 40 years, Trident Fish & Grill has grown from a family food business into a recognised Northern Rivers experience, with stores in Alstonville and Lismore and plans for further expansion across the region. Managing Director Chris Photiou attributes that longevity to quality and consistency, understanding customers, looking after people and being prepared to adapt without losing sight of the family values behind the business. That adaptability has been tested Their Alstonville store opened just four weeks before the first COVID lockdown, while the years since have brought floods, supply shortages, rising food and operating costs and a fire that forced the Lismore store to close for nearly three months. Through each challenge, the focus has remained on building a resilient business capable of sustainable growth. Chris says some of the most important lessons have been understanding the business' numbers and customers, putting the right people in the right positions and being prepared to change direction when circumstances demand it. Why The Trident Chose an Independent Business Valuation As The Trident expanded, understanding its financial performance, management structure and future growth opportunities became increasingly important. Collins Hume was engaged to undertake a business valuation, giving the owners an objective benchmark for the business and greater insight into the factors influencing its value. “We wanted an independent business valuation to give us a clear understanding of what the business was ‘actually’ worth, rather than relying on our own assumptions,” Chris says. “As The Trident continued to grow, it was important to understand where the value sat within the business and have a benchmark we could use when making decisions around future growth, investment and expansion decisions.” Understanding What Drives Business Value The process provided considerably more than a valuation figure. It helped identify and investigate financial performance, business systems, management structure and brand, while highlighting the importance of reducing reliance on any one individual. For Collins Hume Senior Business Advisor Nathan McGrath, this is one of the key benefits of obtaining a professional business valuation before there is a transaction on the table. “A business valuation can give owners a much clearer picture of what is driving value in their business and what may be holding it back. That information can then be used to make better decisions about growth, investment and the future direction of the business,” Nathan says. The Trident now has a benchmark against which future decisions can be considered, including how investment and expansion may affect the long-term value of the company. “For me, the valuation wasn't about putting a number on the business to sell it,” Chris says. “It was about understanding what we've built, identifying where we can improve, and making sure the decisions being made today are building a stronger and more valuable business for the future.” Business Advice to Support Growth That forward focus is supported by an ongoing relationship with Collins Hume. As The Trident has grown, Collins Hume has provided advice around financial performance, business structure and planning, helping the owners understand their numbers, identify opportunities for improvement and put stronger structures in place. Collins Hume Partner Kelly Crethar says the valuation complements the work the business has already done to strengthen its foundations. “Chris has a strong understanding of where The Trident has come from and a clear ambition for where he wants to take it. Having an independent view of the business’ value gives him another important measure to use as he plans that growth,” Kelly says. For Chris, Collins Hume's role extends well beyond compliance. “For us, Collins Hume isn't just about accounting and compliance. It's about having a trusted business adviser in our corner who understands where we've come from, where we're trying to go, and can help us make informed decisions along the way.” Local Business Leadership Recognised The strength of The Trident's leadership was recently recognised at the 2026 Ballina Business Excellence Awards, where Chris was named Outstanding Young Business Leader. Chris described the award as recognition of the wider team, family, customers, suppliers and mentors who have supported their business journey. “This award isn’t just about me. It’s a reflection of the incredible people I’ve been fortunate enough to have around me,” he says. Kelly says the recognition reflects the resilience and ambition she has seen in the business. “Chris and the team have continued to invest in the business, their people and the region while navigating some significant challenges. Their success is a great example of what can be achieved when strong business fundamentals are combined with a willingness to keep learning, adapting and looking ahead,” Kelly says. Discover The Trident Fish & Grill The Trident Fish & Grill is a third generation family-owned restaurant showcasing the best fresh quality seafood across the Northern Rivers. With origins that hark back to where fish and chips all began in the UK, The Trident focuses on serving up great food, friendly service and supporting local communities. Find out more about the business, check out the menu and follow their journey as they continue to grow across the Northern Rivers. Visit Chris and the team at thetrident.com.au or follow them via Instagram, Facebook and TikTok.

Discretionary trusts, often referred to as family trusts, have been a popular structure for Australian families and businesses for many decades. They are commonly used to operate family businesses, hold investments and assist with succession planning. Their flexibility, together with asset protection and estate planning benefits, has made them an attractive option for many groups. In the 2026–27 Federal Budget, the Government announced a significant proposed change. From 1 July 2028, trustees of discretionary trusts would generally be required to pay a minimum tax of 30% on the trust's taxable income. According to the Government, the proposal is intended to better align the tax paid on trust income with that paid by salary and wage earners, while reducing opportunities to split income between family members. However, the announcement has generated considerable debate. Professional bodies, business groups and tax advisers have expressed concerns that the changes could increase complexity and compliance costs for many genuine family businesses and investment structures. How the proposal is expected to work Under the proposal, the trustee would generally pay the minimum 30% tax on the trust's taxable income. Where trust income is distributed to individual beneficiaries or certain other non-corporate beneficiaries, those beneficiaries would generally receive a non-refundable tax offset recognising the tax already paid by the trustee. This is intended to reduce the risk of the same income being taxed twice, but while maintaining the impact of the 30% minimum tax rate. Importantly, the minimum tax would not apply to every trust. The Government has indicated that a number of trusts would be excluded, including fixed trusts, widely held trusts, complying superannuation funds, charitable trusts, deceased estates, special disability trusts and genuine testamentary trusts. Primary production income and certain income relating to vulnerable minors would also be excluded. The Government has also stated that more than 90% of small businesses are not expected to be affected. While that may be reassuring for some taxpayers, there are still some important issues that could affect family groups using discretionary trusts. What could this mean in practice? One area likely to receive close attention is the use of companies as beneficiaries of family trusts. Many family groups have historically distributed some trust income to a company. This can provide flexibility in managing cash flow, retaining profits within the business and funding future growth. Under the proposed rules, however, the corporate beneficiary would not receive a tax offset for the tax already paid by the trustee. In many cases this will mean that income distributed from a discretionary trust to a company would be subject to double taxation. Another practical impact of the proposed change is that some family groups may find it more difficult to fully utilise existing tax losses. While the impact will depend on each group's circumstances, the proposed minimum tax is likely to reduce some of the flexibility that currently exists when managing taxable income across a family structure within many groups. The Government has also proposed a temporary three-year rollover period, commencing from 1 July 2027, to help restructure into alternative business structures, such as companies or fixed trusts, without triggering immediate income tax or capital gains tax consequences. While this may assist some groups, restructuring is rarely straightforward. Depending on the circumstances, it might be necessary to consider things like stamp duty, loan approvals, financing arrangements, contract changes, licensing requirements and professional advice. Even relatively simple restructures can involve significant time and cost, so careful planning will be important. The rules are not yet final At this stage, the proposal remains subject to consultation. Treasury released a consultation paper in July 2026 seeking feedback on a range of design issues, including how the new rules would operate in different situations. Final legislation has not yet been introduced, meaning aspects of the proposal could still change before the rules become law. For this reason, most groups utilising discretionary trust structures should avoid making major structural decisions based solely on the announcement. Instead, it is sensible to monitor developments while considering whether existing structures are likely to remain appropriate if the proposal proceeds. What should you do now? For many families, discretionary trusts are about much more than tax. They can continue to provide valuable asset protection, succession planning and business flexibility. The proposed changes do not remove those benefits, nor do they prevent discretionary trusts from continuing to be used. However, the proposal does have the potential to change the tax outcomes for some family groups, particularly those with more complex structures or those that regularly distribute income to companies. With the proposed start date still some time away, there is an opportunity to pause and carefully understand how the changes may affect your circumstances and consider if any planning or restructuring might be appropriate. As the legislation develops, we can help you assess the impact on your business or investment structure and determine if any action is warranted.

What you need to know before 1 October 2026 The Reserve Bank of Australia (RBA) has confirmed that all surcharges on credit and debit card payments — across EFTPOS, Mastercard and Visa — will be banned from 1 October 2026. This represents one of the most significant updates to Australia’s payments landscape in years and will have a direct impact on businesses and consumers. Why this matters Australians pay an estimated $1.6 billion in card surcharges every year. At the same time, businesses collectively bear even higher card-acceptance costs behind the scenes. Under the new rules, total merchant payment costs are expected to fall by around $910 million per year, with small businesses likely to see the largest percentage savings. For many businesses this will mean simpler pricing, fewer compliance headaches and potentially better margins — but it also means some preparation is needed. What’s changing? The RBA’s reform package has three key components: 1. Surcharges banned From 1 October 2026, businesses cannot add any surcharge — percentage or flat fee — for payments made using eftpos, Mastercard, Visa or related networks. Customers must see and pay one final price, whether they purchase online, at the counter, or via mobile payment. 2. Lower interchange fees Interchange fees (the wholesale fees charged between banks when a customer pays by card) will be reduced, with new caps for foreign-issued cards. This should directly lower the cost that a business needs to pay to accept card payments. 3. Greater transparency Banks, card schemes and payment providers must publish clearer information about fees and margins. They must also demonstrate how reductions in wholesale fees are being passed through to retailers. This gives businesses more power to compare providers and negotiate. These changes are supported by oversight from the Australian Competition and Consumer Commission (ACCC) and guidance from the Australian Small Business and Family Enterprise Ombudsman. What your business should do now 1. Review your merchant fees Look at your recent statements and determine: How much you currently pay in card-acceptance fees; and Whether you have been relying on surcharges to offset part of those costs. If surcharges are part of your pricing strategy, you may need to adjust prices to maintain margins, where commercially appropriate. 2. Speak to your payment provider With lower interchange fees coming and more transparency required, it’s a good time to negotiate: Better merchant service fees Updated pricing plans POS or terminal upgrades Small businesses often pay closer to the current fee caps, so they stand to gain the most. 3. Update your pricing and POS systems You’ll need to remove: Surcharge signage Online checkout surcharges Automatic percentage add-ons All displayed prices must become all-inclusive. 4. Build changes into your cash flow Lower merchant fees won’t appear immediately, but most businesses should see reduced costs flow through during the 2026–27 financial year. This is a good time to revisit budgets, especially for cafés, retailers, trades and service-based operators that have a high proportion of small card transactions. 5. Watch customer behaviour Businesses might find that the removal of surcharges encourages more customers to pay by card. Higher card usage is often positive for convenience and transaction speed, but keep an eye on total acceptance costs as patterns shift. The broader commercial picture This reform levels the playing field to some extent. Businesses that never applied surcharges will simply benefit from lower underlying fees. Those that did add a surcharge will enjoy simpler operations, less admin and fewer compliance risks. Over time, the changes should encourage more competition among payment providers, potentially leading to better products and lower fees across the market. There may be secondary adjustments (for example, banks reviewing rewards programs), but the combined effort of the RBA and ACCC aims to ensure that cost savings are passed through fairly and transparently. This is ultimately a practical reform Fewer add-ons at the checkout, simpler pricing for customers, and lower complexity for businesses. Some businesses will see this as an opportunity to improve margins, streamline processes and enhance the customer experience. We recommend reviewing your payment arrangements in the coming months. Our team can help analyse your current merchant fees, model the likely impact of the changes, and support negotiations with providers. For tailored advice on how the end of card surcharges affects your business, please reach out to Collins Hume on 02 6686 3000 — now is the ideal time to prepare.

Why your business value at 1 July 2027 could matter From 1 July 2027, the Government’s CGT reforms will change how certain capital gains are taxed, including changes to the 50% CGT discount. For business owners, this means the value of your business at 1 July 2027 could become important if you later sell, transfer or transition the business. Why act now? Trying to establish what a business was worth years after the event can be difficult. Financial information changes, circumstances are forgotten and supporting evidence can be lost. Our recommendation is simple: Start establishing your position before 1 July 2027, not after it. Strategy360’s Business Position Assessment documents: Your current business value drivers and risks How your business compares with industry benchmarks Opportunities to strengthen business value before 1 July 2027 Our assessment is not a formal business valuation. It provides a documented starting point and a stronger foundation for establishing the value of your business as at 1 July 2027. Starting early also gives you time to improve your business value and prepare for the possible CGT consequences of a future sale. Talk with Nathan McGrath, Strategy360 Senior Business Adviser and Specialist Business Valuer, about starting your Business Position Assessment.

Business value is built on sustainable profit, reliable cash flow and manageable risk. If you cannot see those clearly, you may not know what your business is worth or what is increasing or eroding its value. New Xero research highlights the problem. More than one in three Australian small business owners (35%) do not often know if they made a profit in the previous month, while 32% are not regularly paying themselves a wage. Business value can erode unnoticed Strong revenue or a busy pipeline does not necessarily translate into a valuable business. Margins may be shrinking. Cash may be tied up in unpaid invoices. Growth may be increasing costs faster than profit. The business may also depend too heavily on its owner, several major customers or undocumented knowledge. Without timely financial information and decision support, these risks can remain hidden until an owner wants to sell, restructure, introduce another shareholder or fund succession. By then, there may be limited time to repair them. Confidence is not the same as control Xero found that 85% of owners felt confident handling financial issues. However, the majority of financial advisers surveyed (90%) believed small business owners lacked the skills needed to manage their finances effectively. The research also found that only 37% correctly answered all 10 basic business finance questions, while 41% were afraid to ask financial management questions because they felt they should already know the answers. The solution is not more reports. It is better decision support. Owners need current information that helps them act on pricing, margins, costs, cash flow, staffing, customer concentration and growth. Are your decisions building business value? A business valuation provides a point-in-time assessment. Regularly reviewing the factors driving that valuation helps owners make decisions that can improve sustainable financial performance, reduce risk and strengthen the business – increasing earnings today and building a stronger exit for tomorrow. Do you know which decisions are currently building (or eroding) your business value? Collins Hume’s Strategy360 Business Valuation Specialists help owners understand what your business is worth, what is influencing that value and where change could deliver the greatest commercial benefit. Source: Xero, “More than 1 in 3 Australian small business owners don’t know if they made a profit last month”, 13 August 2026. Research conducted with independent research agency One Picture.

Don’t Let Sharing Economy Income Catch You Off Guard This Tax Time The sharing economy has created new opportunities for Australians to earn additional income. Whether it's driving for a ride-sharing service, renting out a holiday property, completing freelance work, hiring out equipment, or creating digital content, many people are supplementing their regular income through online platforms. However, one aspect that can sometimes come as a surprise at tax time is that this income generally needs to be declared in your tax return. Unlike salary and wages, sharing economy income isn’t always fully pre-filled in your tax return, so it's important to maintain your own records and check that tax returns are completely accurately. The ATO continues to focus on income earned through the sharing economy and has expanded its data-matching capabilities in recent years. As a result, it is becoming increasingly likely that income reported by online platforms will be compared against returns that are lodged by taxpayers. What counts as sharing economy income? Sharing economy income can arise from a wide range of activities, including: Ride-sourcing services such as Uber or DiDi Short-term accommodation through platforms like Airbnb or Stayz Hiring out assets such as vehicles, caravans, tools, parking spaces or storage areas Freelance or task-based work, including deliveries, cleaning, handyman services or graphic design Creating digital content, streaming, selling digital products or receiving tips through online platforms. Even if these activities are only occasional or generate relatively modest amounts of income, they may still have tax consequences. In many cases, the income will be assessable for tax purposes, regardless of whether the activity is carried on as a business, as a contractor, or simply as a way of earning extra money. Increased reporting to the ATO Under the Sharing Economy Reporting Regime (SERR), many electronic platform operators are required to provide transaction information directly to the ATO. This regime applies across a growing range of sharing economy activities, including ride-sharing, short-term accommodation and certain personal services. This information may be used by the ATO to compare against the income reported in tax returns. Where discrepancies arise, the ATO may contact taxpayers to seek clarification and, in some cases, adjustments, interest or penalties could apply. Practical tips to help stay on top of your tax If you earn income through the sharing economy, a few simple habits can make tax time much easier. Keep good records While many platforms provide annual income summaries, it is generally worthwhile maintaining your own records as well. Keeping receipts and tracking expenses such as platform fees, vehicle costs, repairs, cleaning expenses or equipment purchases can help support any deductions you may be entitled to claim. Understand what expenses may be deductible You may be able to claim deductions for expenses that are directly related to earning your sharing economy income. This will always depend on your particular circumstances and the nature of the expenses you are incurring, so it's worth discussing your situation with us to ensure claims are appropriate and adequately supported. Plan ahead for your tax bill Unlike employment income, tax is often not withheld from sharing economy earnings. This can result in an unexpected tax liability when you lodge your return. Depending on your circumstances, it may be worthwhile considering strategies such as making voluntary tax payments during the year, setting aside part of your earnings in a separate account, or, where appropriate, entering the PAYG instalment system. Don't overlook other obligations In some situations, GST registration may be required if your activities reach the relevant turnover thresholds. If you are involved in ride-sourcing activities then you will normally need to register for GST regardless of the income you generate. Depending on the nature of your income, there may also be opportunities to make additional superannuation contributions, which could provide longer-term financial benefits. Looking beyond tax time Treating your sharing economy activities in a business-like manner can provide benefits beyond simply meeting your tax obligations. Good record-keeping and proactive tax planning may help you better understand the profitability of your activities, improve cash flow management and make it easier to access finance if the activity continues to grow. If you've earned income through an online platform during the year, now is a good time to review your records and ensure you're well prepared before lodging your tax return. A conversation with your tax accountant may help identify deductions you are entitled to claim, confirm that your reporting is accurate and avoid unnecessary surprises at tax time. The sharing economy can provide valuable opportunities to earn additional income. With some forward planning and good record-keeping, managing the tax implications should become a straightforward part of making the most of those opportunities. For more information, contact Collins Hume on 02 6686 3000 about your individual circumstances.

Key Changes to Self Managed Super Fund (SMSF) Borrowing Rules Explained To ensure passage of the negative gearing and CGT discount changes that were announced in the May 2026 Federal Budget the Government agreed to make amendments to the SMSF borrowing rules. SMSFs are able to borrow in restricted circumstances which includes borrowing under a limited recourse borrowing arrangement (LRBA) to purchase a single acquirable asset. While there have previously been no specific legislative restrictions on the type of asset a SMSF can borrow to purchase, most commonly we see LRBAs being used to purchase property. Up until this point, this could have been any type of real property. These amendments will mean that when SMSF trustees wish to borrow to purchase a property, it must meet the business real property (BRP) definition. This BRP definition relates to usage of the property rather than zoning or what the property was originally built for. This change became law on 26 June 2026, but the Bill includes a 45 day transitional period which will finish on 10 August 2026. This transitional period may allow for arrangements that are currently being implemented on non-BRP assets to be allowable under the new rules where settlement occurs after 10 August 2026, provided the arrangement to purchase the property was entered into on or before 10 August 2026. We recommend that SMSF trustees who are currently implementing LRBA arrangements on non-BRP assets seek specialist SMSF legal advice to ensure their arrangements meet these transitional rules. While this change has been referred to in the media as a ban on super funds borrowing to purchase residential property, the use of the BRP definition makes the change slightly more complex than this. As this definition relates to usage of the property, it is possible that some residentially designed properties could meet the BRP definition (for example, a medical practice that operates from a residentially designed terrace dwelling). The BRP definition also requires that the property is wholly and exclusively used for business purposes. This could mean that some properties that may initially appear to be commercial in nature may not meet the BRP definition (for example, a mixed use residential and retail property on a single title). The updated rules allow for existing LRBAs over non-BRP assets to continue. They also allow for existing arrangements to be refinanced, subject to lender availability and approval. We recommend that SMSF trustees entering into new LRBAs seek advice from specialist legal and financial advisers to ensure the new requirements are met.

Understanding the Tax Implications of the 2026–27 Vehicle Thresholds If you're thinking about purchasing or leasing a vehicle for your business this financial year, it's worth understanding the updated car thresholds that apply from 1 July 2026. While these limits may seem technical, they can have a practical impact on the amount you can claim for tax depreciation deductions, the GST credits that are available, and whether luxury car tax (LCT) could apply. Knowing how these rules work before signing a contract can help you make a more informed decision and potentially improve your overall tax and cash flow position. The car limit – understanding the depreciation cap For vehicles first used or leased in the 2026–27 income year, the car limit is $69,883. This limit generally represents the maximum value that can be used when calculating tax depreciation deductions for a passenger vehicle, regardless of how much was actually paid for the car. From a commercial perspective, this is an important consideration if you're looking at a higher-value vehicle. While purchasing a more expensive car may still make sense for operational or business reasons, the portion of the purchase price above the car limit will generally not attract depreciation deductions. If the vehicle is used for both business and private purposes - which is common for many business owners - you would typically only be able to claim deductions for the business-use portion. Maintaining appropriate records, such as a valid logbook and odometer readings, remains an important part of supporting those claims should the ATO undertake a review or audit. Rather than focusing solely on the purchase price, it is often worthwhile considering the overall after-tax cost of the vehicle. In many cases, a vehicle priced around the car limit may provide similar practical benefits while maximising the available tax deductions. It's also worth confirming which depreciation rules apply to your circumstances, including whether any simplified depreciation concessions are available so that deductions can be claimed at a faster rate. GST credits – also subject to a cap Businesses that are registered for GST may also be entitled to claim GST credits when purchasing a business vehicle. However, where the purchase price exceeds the car limit, the GST credit is also capped. For the 2026–27 financial year, the maximum GST credit available is $6,353 (being one-eleventh of the $69,883 car limit) for passenger vehicles. Even if the vehicle costs considerably more, the GST credit will generally not increase beyond this amount. However, when the vehicle is sold you will normally need to pay GST on the full sale price. For many businesses, GST credits can provide an important short-term cash flow benefit, so it is important to ensure they are claimed correctly and within the relevant time limits through your Business Activity Statement (BAS). Luxury Car Tax thresholds increase The Luxury Car Tax (LCT) thresholds have also increased from 1 July 2026 and are now: $91,661 for fuel-efficient vehicles $80,809 for all other vehicles. Where applicable, LCT is generally imposed at 33% of the value above the relevant threshold, increasing the overall purchase cost of eligible vehicles. If you're considering a premium vehicle, these thresholds may become an important part of the purchasing decision. In particular, many fuel-efficient vehicles, including a range of hybrid and electric models, benefit from the higher threshold. Depending on the vehicle selected, this could potentially reduce the amount of LCT payable while also delivering lower running costs over the life of the vehicle. Planning ahead can pay off These updated thresholds apply to vehicles first used or leased from 1 July 2026, making now an ideal time to review any planned vehicle purchases. Before making a decision, it may be worthwhile considering: The total after-tax cost of ownership, including depreciation deductions, GST credits and any LCT Whether purchasing or leasing is likely to be more suitable for your circumstances The expected business use of the vehicle and the records you'll need to maintain; and How the purchase fits within your broader cash flow and business plans. Whether you're replacing a work vehicle, expanding your fleet or purchasing a new car for client-facing activities, taking these factors into account can help ensure the vehicle meets both your operational requirements and your tax objectives. Key takeaways A business vehicle is often a significant investment, and while tax considerations shouldn't drive the decision, they can influence the overall cost of ownership. Before committing to a purchase, it's worth speaking with your tax accountant to model the likely tax outcomes based on your individual circumstances. A little planning upfront may help you maximise available tax concessions, avoid unexpected costs and ensure the purchase aligns with your broader business strategy. For more information, refer to the ATO’s Small Business Newsroom: Car thresholds from 1 July | Australian Taxation Office, or contact Collins Hume on 02 6686 3000 to discuss how these changes may apply to your business.

Independent Business Valuation Supports Cavvanba’s Employee Ownership and Growth When the departure of a key employee and original owner forced Collins Hume client Cavvanba Consulting to restructure, an independent business valuation provided the foundation for a fair and transparent employee share ownership model. The process gave employees confidence in the benchmark value of the shares and gave Cavvanba a clearer view of its performance. As the business expanded, cash flow became the other vital part of the equation. Background Cavvanba is an Australian, employee-owned environmental consulting firm specialising in the assessment, remediation and management of contaminated sites. They deliver efficient, innovative solutions to technical and regulatory challenges, supporting landowners, developers and regulators with contaminated land assessment, remediation management and environmental auditing. Facing a defining business moment “Cavvanba's biggest challenge came just three years into the business, when a key employee and original owner departed, forcing a significant restructure,” General Manager Rob McLelland says. The change prompted the owners to reconsider the kind of business they wanted to build and who would share in its future. “This period pushed us to re-examine why we were in business, what mattered most to us, and how we wanted to move forward.” As a precursor for employees being able to buy into the firm, Cavvanba needed an objective benchmark for the value of its shares. Collins Hume supported the restructure and completed an independent valuation to help create a credible basis for employee ownership. “An independent valuation was particularly important because employees needed confidence that the share price had been established objectively. It gave everyone a clear and credible starting point while supporting a fair transition of ownership,” Partner Peter Fowler says. The restructure became a springboard for expansion rather than a setback. “That process ultimately led to bringing on new partners, opening a new office, and growing our team and client base into the successful business we are today.” A valuation that revealed more than a share price While the immediate need was to establish a benchmark value for the shares, the valuation also encouraged Cavvanba to examine the business more critically. “The independent business valuation provides a few different benefits for us,” Rob says. “It gives a benchmark valuation of the shares in the business, allowing employees to buy into the business with confidence.” The analysis brought the firm’s performance, risks and value drivers into sharper focus, giving its owners useful evidence for decisions beyond the ownership transition. “It requires us to complete an internal analysis of how the business is working for us.” “It gives us a real picture of how the business is performing relative to previous years and against industry benchmarks.” For Collins Hume Senior Business Adviser Nathan McGrath, this is where a valuation becomes a practical management tool rather than simply a transaction requirement. “A meaningful valuation should give business owners more than a final number. It should provide practical insight into how the business is performing, what is driving its value and where attention may be needed to support future growth,” Nathan says. Growth put cash flow in focus Opening another office, adding people and serving a larger client base brought new working-capital demands. Cavvanba’s experience reinforced that profitability alone does not fund growth: cash must be available when wages, systems and other operating costs fall due. “Be very conscious of cash flow as your business expands,” Rob says. Collins Hume helps Cavvanba maintain visibility over its financial position so decisions about recruitment and investment can be made with their cash flow impact understood. “Strong cash flow management gives a growing business greater flexibility. It allows owners to identify upcoming pressure points, plan investments and make decisions with a clearer understanding of the financial impact,” Nathan says. A culture suited to employee ownership Cavvanba’s ownership model works because it is supported by a culture of shared responsibility. Employees have a personal stake in the firm’s performance, while the business benefits from people who are invested in its long-term direction. “We are intentionally a high-performing, close-knit team who genuinely enjoy working together. We value and encourage quality work, strong client relationships, and supporting each other professionally and personally. Our culture is collaborative, down-to-earth, and built on trust, initiative and continual learning,” Rob says. Its experience also showed why a plan should provide direction without becoming a constraint. “Have a clear plan but be willing to be flexible and adapt as your plan unfolds, because things will never go exactly to plan.” For Cavvanba, that flexibility transformed an unexpected ownership change into a stronger structure, an expanded business and a pathway for employees to participate in its future. Advice that evolves with the business Collins Hume has advised Cavvanba from its early days through its restructure, employee ownership transition and growth. “Collins Hume has provided us with expert financial and tax advice since our business started,” Rob says. That support also gives Cavvanba access to ideas and connections beyond its own operations. “They have organised numerous educational days that we have attended, that have helped in expanding our knowledge of best business practices and offered connection within the local business community.” Collins Hume continues to work with Cavvanba as the firm develops its employee-owned model, manages the cash flow demands of growth and plans its next moves. Learn more about Cavvanba Consulting at www.cavvanba.com

Capital Gains Tax (CGT) reforms are now law If you own an interest in a business, CGT changes introduce an important date that many business owners may not yet have considered: 1 July 2027. Background The Government confirmed the reforms in the 2026–27 Federal Budget, and the legislation has now been passed, with the new rules applying from 1 July 2027 Taking action now provides an opportunity to document the business circumstances and value drivers while they are current, rather than trying to reconstruct them after the date A review closer to 1 July 2027 can then capture any material changes. While you may have no intention of selling your business for many years, the new rules may require the market value (cost base) of your business interest to be established as at 1 July 2027 for future CGT purposes. Why is this important? A Business Valuation is based on the information that is known, or reasonably foreseeable, at the valuation date. This includes market conditions, industry trends, business-specific risks and the commercial factors influencing value at that point in time. The challenge is that much of this evidence exists around the valuation date, not necessarily years later when your business is eventually sold. Attempting to reconstruct those circumstances long after the event can become increasingly difficult, costly and less reliable. This is why documenting the evidence supporting your business value before 1 July 2027 is important now. It allows relevant commercial information to be captured while it is current, rather than relying on memory or incomplete records years later. A review closer to 1 July 2027 can then confirm the evidence remains appropriate and capture any material changes. Importantly, the quality of evidence available at the valuation date may influence the ability to support the inputs adopted in a future Business Valuation. Preserving contemporaneous evidence can therefore reduce uncertainty and provide greater confidence when that valuation needs to be relied upon. Even if selling your business is many years away, now is an appropriate time to consider how the evidence supporting your business value will be documented and retained before 1 July 2027. We've prepared a factsheet overview outlining: what the CGT changes may mean for business owners why preserving contemporaneous evidence around 1 July 2027 is important the options available for documenting that evidence, and the practical next steps to consider. For many businesses, the most practical approach may be to complete a Risk & Value Driver Assessment – CGT Readiness, documenting and preserving the commercial evidence that exists today. As 1 July 2027 approaches, that assessment can then be reviewed and updated to validate the information and capture any material changes before being securely retained to support a future Business Valuation, when required. Every business will have different circumstances. We can help you determine whether commencing a Risk & Value Driver Assessment – CGT Readiness now, updating it closer to 1 July 2027, or obtaining a formal Business Valuation is the most appropriate approach for your business. We encourage you to contact the Strategy360 By Collins Hume Advisory team to discuss your needs.