Don’t Let Fringe Benefits Assumptions Cost You The ATO has been turning up the heat on employers who provide work vehicles for private use. Sophisticated data-matching means assumptions and shortcuts can quickly lead to audits, penalties, interest charges and even reputational damage. You can see the latest ATO FBT audit warning here: Misreporting FBT on personal use of work vehicles | Australian Taxation Office . If you provide vehicles to your team, whether to support fieldwork, boost morale or offer a valuable perk, now is the time to ensure your FBT reporting is watertight. Here’s what the ATO is focusing on and how to protect your business. Don’t Assume Dual-Cab Utes Are Automatically Exempt Dual-cab utes are popular in trades and construction, but despite popular opinion, they’re not automatically FBT-free. Whether an FBT exemption applies can depend on the vehicle’s design and also how it is used across the FBT year. Even if a ute is designed to carry a load of at least 1 tonne (ie, it is not classified as a car for FBT purposes) or it isn’t designed mainly to carry passengers (there is a specific formula used for this purpose) FBT could still be triggered if there is some private use of the ute. The ATO has identified many cases where employers wrongly claimed full FBT exemptions, leading to back taxes plus interest. The best way to handle ATO enquiries around the FBT exemption for commercial vehicles is to ensure that appropriate evidence is already in place to support the application of that exemption. While the FBT rules don’t specifically require formal logbooks when looking at this exemption, failing to keep records that are similar to a logbook can make it difficult to navigate ATO review or audit activities. Accurately Apportion Private vs Business Use If a full FBT exemption doesn’t apply then FBT is typically calculated on private use of work vehicles. You need to determine what portion of running costs — fuel, maintenance, depreciation — relates to personal trips. Ignoring this step can seem harmless but can quickly escalate during an audit. Thorough record-keeping and proper apportioning can sometimes reduce your FBT liability even if the vehicle is used mainly for business purposes. Remember that if a FBT liability is triggered it is the employer’s problem. Lodging FBT Returns Even if you think the FBT liability for the year might be small or immaterial, you might find that there is still an obligation to lodge an FBT return. The ATO’s analytics flag non-lodgers automatically. Penalties can reach up to 200% of the tax owed, plus interest. Tip: Mark your calendar: FBT returns are due May 21 each year. Timely filing keeps your business compliant and avoids cash flow shocks. Keep Reliable Logbooks and Records A valid logbook tracks odometer readings, trip purposes, and business-use percentages over a 12-week period (renewable every five years). While not every scenario involving a motor vehicle specifically requires a valid logbook, failing to keep logbooks can sometimes lead to significant FBT liabilities that could otherwise have been avoided. Efficiency tip: Digital logbook apps simplify tracking, save time, and reduce errors. Good records can also support deductions. Why it Matters Commercially Non-compliance isn’t just a numbers game. ATO audits divert time and energy from running your business, and ATO attention can affect your reputation with clients, partners or lenders. Conversely, getting FBT right ensures you pay only what’s required, protects cash flow and may even reveal tax efficiencies. Next steps Review your vehicle policies, update records and ask us if you need help. We help businesses manage FBT with confidence, making compliance straightforward and stress-free. Remember: FBT assumptions can be costly, but a proactive approach protects your business, your people and your peace of mind. Call Collins Hume in Ballina for FBT help on 02 6686 3000.

Why Business Value Matters Most small business owners only think about value when they’re ready to sell. By then, it’s often too late! Across Australia and NZ: 42% of owners don’t know what their business is worth 84% face a value gap — where the sale price falls well short of expectations. Business value isn’t created at exit. It’s built every day. Here’s what busy business owners need to know. Business value is more than profit Profit matters  but buyers also look at: •       How dependent the business is on you (aka ‘owner reliance’) •       Strength of systems and documentation •       Customer concentration •       Risk exposure •       Leadership depth •       Growth potential. Non-financial performance now plays a major role in valuations. Strong operations reduce risk, and higher certainty drives higher value. The 5 fundamentals of a valuable business High-value businesses consistently show these traits: Robust valuation methodologies:  Clear understanding of how value is determined. Clear profit and value drivers:  You know exactly what creates profit and what also creates risk Comparable market data:  You understand how your business stacks up against peers Tested assumptions:  Forecasts and KPIs are validated, not guessed Professional standards:  Decisions are based on reliable data, not opinion. You don’t need a formal valuation to apply these — they’re practical management disciplines. Why many businesses disappoint at exit Value gaps usually come from: •       Owner dependence •       Weak systems •       Poor visibility of numbers •       No growth strategy •       Unmanaged risk •       No succession plan. Even profitable businesses struggle if they aren’t structured for transferability. Time alone doesn’t grow value. Intentional action does. Simple ways to increase business value Start by understanding what your business is worth today — because value can’t be improved if it isn’t measured. From there, identify the few critical drivers that truly influence profit and risk, and concentrate your efforts where they matter most. Next, reduce reliance on yourself . Strong systems, documented processes and capable leadership make your business more resilient — and far more attractive to buyers or successors. Clear financial reporting and meaningful KPIs  are equally important. Transparent numbers build confidence, support better decisions, and demonstrate operational maturity. Look closely at customer and revenue concentration . Over-dependence on a small number of patrons increases risk and erodes value, while diversification strengthens stability. Finally, treat strategy and succession  as ongoing disciplines, not future tasks. Regular strategic reviews keep your business aligned with growth opportunities, and early exit planning — even if selling feels a long way off — sharpens every major decision you make today. Business value is a strategy, not an event The strongest businesses actively manage: 1.     Profitability 2.     Risk 3.     Systems 4.     People 5.     Growth The payoff? Higher value. Lower stress. Better options. Ready to close your business value gap? Book a complimentary Risk and Value Driver Assessment (RAVDA) with our Strategy360 team. We’ll help you identify what’s driving (or draining) your business value and build a practical roadmap for growth. Spots are limited — secure your assessment today. Bloxham, G. and Haselhurst, L. (2025) Judgement & Data: Replicable and Defensible Small-Family-SME Business Valuations .

Insights from Collins Hume strategic partner, Borro Mortgage Brokers With interest rates continuing to shift in 2026, many clients are asking whether now is the right time to fix their home loan rate. It’s a fair question, particularly with ongoing uncertainty around where rates may move next. The reality is there is no one-size-fits-all answer. Fixing your rate isn’t about trying to pick the market perfectly. It’s about structuring your home loan in a way that aligns with your financial position, cash flow and future plans. What fixing your rate can offer Fixing part or all of your home loan can provide certainty around repayments, which can be valuable for anyone wanting stability in their budgeting. For some, this removes the stress of potential rate increases and allows for more confident financial planning. What to be aware of Fixed rates do come with trade-offs. They can limit flexibility, including restrictions on extra repayments, refinancing or accessing features such as offset accounts. There may also be break costs if circumstances change. Importantly, if interest rates decrease, you remain locked into a fixed rate for the agreed term. Why many are choosing a split strategy Rather than fixing 100% of their loan, many borrowers are now choosing to split their home loan. This approach allows you to fix a portion for certainty, while keeping the remainder variable to maintain flexibility and benefit from any potential rate reductions. The key takeaway? Fixing your home loan rate in 2026 isn’t about predicting where rates will go. It’s about managing risk and ensuring the loan structure supports your broader financial strategy. Regular reviews are key, particularly in a changing rate environment. Strategic partnerships that support Collins Hume clients Collins Hume is proud to partner with Borro to assist clients with their lending needs—providing access to tailored finance solutions across home, business and investment lending. If you’d like to sense-check a scenario, feel free to reach out to the team at Borro via our website https://www.collinshume.com/client-hub .

How the Collins Hume team recorded a 61% improvement in mental performance over 50 days! In most professional environments, performance improvement focuses on skills, systems and effort. Yet there is another variable that quietly shapes all three. Mental capacity. We recently explored what happens when that capacity is trained deliberately, measured objectively and applied to real work. Over a 50-day period, our team undertook structured mental performance training delivered by Nathan Laverty, Founder of Advanced Mental Performance (AMP) , using a framework grounded in cognitive neuroscience. This 61% improvement was measured using neurocognitive assessments across areas including attentional control, cognitive flexibility and pattern recognition. These are the functions that determine how well a professional sustains focus under load, holds and processes information, and adapts thinking under pressure. This experience reshaped how we think about performance and highlighted a powerful opportunity for teams to unlock even higher levels of professional capability. Why we focused on mental performance Like many professional teams, our people are capable, motivated and highly skilled. Yet even in supportive environments, familiar challenges still arise. Mental fatigue during sustained complex work. Difficulty maintaining focus amid constant interruption. Stress influencing judgement and productivity. These challenges are often treated as workload issues or personal limitations. In reality, they reflect how the brain responds under prolonged demand. Mental performance, like physical performance, is not fixed. It is trainable. As one participant noted early in the AMP program, "I expected something abstract. Instead, the techniques were practical and immediately usable in a normal workday." That practicality mattered. What we trained This was not a wellbeing initiative or a mindset seminar. The AMP framework focused on training specific cognitive and nervous system functions that underpin professional performance. Attentional control and executive focus. Emotional regulation under pressure. Cognitive flexibility during problem solving. Mental recovery between demanding tasks. Training consisted of short, structured daily practices designed to integrate into existing work patterns. There was no requirement to change personalities, working styles or workloads. The emphasis was on learning how to enter the right cognitive state for the task at hand and how to recover more quickly when focus or energy declined. What changed in practice Over the course of the program, several consistent shifts became apparent. Thinking became clearer under pressure. Focus held for longer periods with less mental fatigue. Recovery from interruption and stress became faster. Reactive responses gave way to more deliberate decision making. As one team member described it, "My thinking feels clearer than it has in years. I regain focus quickly and carry far less mental fatigue." Another noted, "I'm getting through the same workload with far less mental strain, and making better decisions while doing it." Importantly these improvements did not come from doing less work. They came from operating with greater cognitive efficiency. Why this matters In most organisations, performance improvement focuses on skills, systems and effort. Far less attention is paid to the mental capacity that enables all three. As work becomes more cognitively demanding, mental performance often becomes the limiting factor long before technical ability does. Our experience with Advanced Mental Performance reinforced that mental performance can be trained, measured and applied directly to real work . For teams and leaders curious about what becomes possible when mental capacity is treated as a trainable skill, we are happy to share what we learned. Advanced Mental Performance works with business leaders and their teams to improve focus, decision making and sustained cognitive performance under real world demands. For those interested in exploring how mental performance training could apply in their own context, please contact Nathan Laverty Cognitive Neuroscientist at Advanced Mental Performance by email at nathan@advancedmentalperformance.com.au   or via the website advancedmentalperformance.com.au .

Small businesses are feeling more optimistic — read what’s driving the shift. Australian small and family businesses are showing renewed confidence, with the Small Business Pulse recording its third consecutive quarterly increase to November 2025. While cost pressures and uncertainty haven’t disappeared, many business owners are shifting from survival mode to proactive growth, backed by practical ambition and a strong entrepreneurial mindset. What’s behind the growing optimism? Technology and AI adoption Small businesses are actively exploring how technology and artificial intelligence can streamline compliance, automate admin, improve efficiency and create better customer experiences. Interest remains high in ecommerce, websites, digital marketing and smarter ways to “run the business.” Expanding beyond traditional markets From online sales and exports to diversifying product lines, businesses are looking outside their usual customer base to unlock new growth opportunities. Customer retention is front of mind With competition intense, many owners are focusing on personalised service, community engagement, unique experiences and loyalty strategies to stand out. Stronger focus on cybersecurity and risk management There’s growing awareness of digital risks, with business owners seeking practical guidance to protect accounts, platforms and operations. Succession is injecting fresh energy More family businesses are planning succession, with the next generation bringing new ideas while preserving legacy, often leading to reinvention and renewed momentum. Startup activity remains strong Interest in starting new businesses continues at healthy levels, evenly split between women and men — a positive signal for Australia’s future entrepreneurial landscape. Overall, the shift is being dricen by more owners carving out time to work on their businesses, thinking strategically about growth, innovation and sustainability. The mood is cautious, but hopeful — a move from reacting to challenges toward actively shaping the future. Ready to turn optimism into action? If you’re looking to strengthen your business foundations, improve efficiency or plan your next phase of growth, now is the time to act. Book a confidential strategy session today to explore practical ways to future-proof your business, leverage technology and build sustainable momentum. Source: Australian Small Business and Family Enterprise Ombudsman (ASBFEO), 2025. It’s not all doom and gloom. Here’s why businesses are feeling more optimistic . (8 December 2025)

The ATO’s Free Super Clearing House closes 1 July 2026 What Employers Need to Do Now   If your business uses the ATO’s Small Business Superannuation Clearing House (SBSCH) to process super payments, this is important: the service is shutting down on 1 July 2026, and it’s not coming back. Since 1 October 2025, the SBSCH has already stopped accepting new registrations. Existing users can continue using it until 30 June 2026, but after that date, no new contributions will be processed. Any payments attempted through the system after closure simply won’t go through — putting you at immediate risk of missed deadlines and penalties. Don’t Leave This Until the Last Minute Migrating from one payment system to another takes time. You need to set up the new provider, test it with a few pay runs, train your team (or yourself), and make sure everything is working before the SBSCH closes. The worst-case scenario is finding out in July that your new system doesn’t work as expected and you have no fallback. Why Is SBSCH Closing? The SBSCH was designed for a world where super was paid quarterly. It processed payments in batches, which worked fine when employers only needed to submit four times a year. Payday Super changes that equation entirely. Super now needs to be paid with every pay cycle and received by funds within seven business days. The SBSCH simply cannot support the speed, frequency, and real-time tracking that the new rules demand. It wasn’t built for this, and the ATO has confirmed it won’t be upgraded — it will be retired. What SBSCH Closure Means for Your Business If you’re one of the many small businesses that have relied on the SBSCH as your go-to super payment method, you now have two challenges happening at once: You need a new clearing house solution that can handle payday-frequency super payments and confirm receipt within the seven-day window. You need to be set up and tested before 1 July 2026 — not scrambling on the day the old system goes dark. This isn’t just a change of provider. It’s a change in how your entire super payment process works. The new solution will need to integrate with your payroll, process payments in real time, and give you visibility into whether contributions have been received on time. SBSCH Options The good news is there are a number of commercial clearing house and integrated payroll solutions available that are specifically designed for Payday Super compliance. Many of the major payroll software providers — including Xero and MYOB — offer built-in super payment features that handle everything from calculation to submission to tracking. When evaluating your options, look for a solution that: Integrates directly with your payroll system so super is processed as part of your normal pay run. Supports SuperStream-compliant electronic payments to multiple funds. Provides real-time tracking so you can confirm contributions have reached employees’ funds within seven business days. Is already Payday Super-ready, or has a clear roadmap for compliance before July 2026. If you’re not sure which solution is right for your business, talk with Collins Hume . We can help you evaluate your options, coordinate the transition, and make sure you’re set up and confident well before the deadline. The earlier you move, the smoother this will be. Access our free Payday Super resources here »

Processing Payroll is about to get a lot busier Here’s How to Get Ready   When Payday Super kicks in on 1 July 2026, it won’t just change when you pay super. It will change how much your payroll system has to do, how often it has to do it, and how little room there is for error. For many small businesses, payroll has been relatively straightforward: process wages each pay cycle, then batch super contributions quarterly. Payday Super turns that into a continuous obligation — super must be calculated, submitted, and tracked with every single pay run. The Scale of the Shift Consider the numbers. If you currently pay super four times a year and you pay your staff fortnightly, you’re about to go from 4 super submissions to 26. Pay weekly? That’s 52. Each of those submissions needs to be accurate, timely, and properly recorded. Industry analysis suggests this could represent a 60% increase in administrative overhead for the average small business. That’s not an exaggeration — it’s the reality of processing super at the same frequency as wages. What Your Payroll System Needs to Do Under Payday Super, your payroll system will need to handle several things seamlessly: Calculate super contributions for each employee on every pay run, based on “qualifying earnings” (the new term replacing ordinary time earnings). Submit contributions electronically through SuperStream with every pay cycle. Track payment status to confirm that funds have reached each employee’s super fund within seven business days. Generate proof-of-payment records in case of an ATO audit or dispute. If your current system can’t do all of this automatically, you’re at risk of manual errors, missed deadlines, and penalties. The Danger of Manual Processes If you’re still managing super contributions through spreadsheets, manual uploads, or disconnected systems, Payday Super will expose those gaps quickly. Manual processes that worked fine for quarterly payments become unsustainable when they’re required 26 or 52 times a year. One missed step, one overlooked employee, one delayed upload — and you could be facing a Superannuation Guarantee Charge with interest and penalties. The margin for error shrinks dramatically under the new rules. How to Prepare for Payday Super Audit your current payroll setup. Can it process and submit super with every pay run without manual intervention? If not, it’s time to upgrade. Contact your payroll software provider. Most major providers (Xero, MYOB, QuickBooks, and others) are updating their systems for Payday Super. Find out what changes are coming and whether you need to activate new features. Automate wherever possible. The fewer manual steps in your super process, the lower your risk of errors and late payments. Test before July. Run a few pay cycles as if Payday Super is already in effect. Process and submit super with each pay run and see how your system handles it. Better to find problems now than after the deadline. Get Ahead of the Curve Payroll changes sound unglamorous, but getting this wrong will be expensive. The businesses that invest a little time now in checking and upgrading their systems will save themselves significant headaches later. Not sure if your payroll system is ready? Reach out to the Collins Hume team and we’ll help you assess your setup, identify any gaps, and make sure you’re fully prepared before Payday Super begins. Access our free Payday Super resources and checklists here »

AI Tax Tips: Helpful Shortcut or Costly Trap? As a business owner or investor, time is always tight. So it’s no surprise many people now turn to AI tools like ChatGPT for quick answers on tax deductions, super contributions or structuring ideas. The responses sound confident, arrive instantly and cost nothing. What could go wrong? Plenty! The Australian tax and super system is complex, highly fact-specific and constantly changing. While AI can be a useful starting point, relying on it for decisions can expose you to audits, penalties and poor financial outcomes. We’re increasingly seeing the clean-up work when AI advice goes wrong. Where AI Can Help (and Where it Can’t) AI is quite good at explaining basic concepts in plain English. It can help you understand what “negative gearing” means, outline the difference between concessional and non-concessional super contributions, or prompt you to think about record-keeping. Used this way, it can save time and help you ask better questions. The problem starts when AI moves from explaining concepts to giving “advice”. Tax and super outcomes depend on your specific facts: your income levels, business structure, age, residency status, assets, timing and future plans. AI does not know these details unless you provide them—and you generally shouldn’t. Even then, it cannot exercise judgement or balance competing risks the way an experienced adviser can. The Accuracy Risk: Confident, but Wrong AI tools are known to “hallucinate” – that is, provide answers that sound authoritative but are incorrect or incomplete. In practice, this can mean: Claiming deductions that don’t apply to your circumstances Miscalculating capital gains tax or ignoring integrity rules Suggesting super strategies that breach contribution caps or eligibility rules Quoting legislation, cases and rulings or concessions that don’t exist or are out of date. These errors are rarely obvious to a non-expert, but they are normally obvious to the ATO, courts and experienced advisers. A recent decision handed down by the Administrative Review Tribunal highlights some of the key problems. In Smith and Commissioner of Taxation  [2026] ARTA 25 the taxpayer appeared to rely on AI tools to identify cases which supported their argument, but this approach was shot down by the Tribunal. Some of the cases didn’t exist and others were simply not relevant to the matter being considered. If the person using the AI tool doesn’t verify the existence of the cases provided by the tool and read them to ensure their relevance then “the Tribunal’s resources are being wasted, as the Tribunal must look for cases that don’t exist and read cases that have no relevance at all”. ATO Scrutiny Increasing not decreasing The ATO isn't anti-AI—they use it internally for fraud detection and analytics. But for you? The ATO’s misinformation guide makes it clear that AI tools can provide false, inaccurate, incomplete or outdated information. The ATO’s message is to verify everything, or face the music. Surveys reveal 64% of businesses seek AI accounting help first, only for pros to unscramble the mess—wasting time and money. ATO AI transparency statement | Australian Taxation Office Protect yourself from misinformation and disinformation | Australian Taxation Office When something is wrong, the ATO will generally amend the return, charge interest and may apply penalties—even if the mistake came from AI advice rather than intent. We are seeing this play out most clearly with work-from-home claims, property deductions and SMSF compliance. Superannuation: High Stakes, Little Margin for Error Super is an area where AI advice can be particularly dangerous. Self-managed super funds, in particular, operate under strict rules. AI often overlooks key issues such as eligibility, timing, purpose tests and investment restrictions. The result can be non-compliance, forced unwinding of transactions and penalties that run into thousands of dollars. Super mistakes can also permanently damage your retirement savings. Data Security and Privacy There is also a practical risk many people overlook: entering personal or financial information into AI platforms. Once data is entered, you lose control over how it is stored or used. This creates privacy and fraud risks that are simply not worth taking. A Smarter Approach: AI Plus Professional Advice AI is best used as a support tool, not a decision-maker. It can help you understand the landscape, but important tax and super decisions should always be reviewed in light of your full circumstances. At our firm, we encourage clients to bring questions early, test ideas and have conversations before acting. That approach almost always costs less than fixing problems after the fact. The bottom line: AI can be a helpful assistant, but it is not your accountant. When it comes to protecting your wealth and staying compliant, tailored professional advice remains essential.

How Payday Super Will Change the Way Your Business Manages Money If you run a small business with employees, you’re probably used to paying superannuation once a quarter. You set aside the money, lodge it by the due date, and move on. It’s a rhythm most businesses have followed for years. That rhythm is about to change significantly. From 1 July 2026, the new Payday Super rules require you to pay super at the same time as your employees’ wages. Not quarterly. Every single payday. And the money must reach your employees’ super fund within seven business days. For small businesses, this is one of the most impactful changes in years — and the biggest area it will hit is your cash flow. What This Means in Practice Under the current system, if you pay staff fortnightly, you only need to settle super four times a year. That gives you up to three months of breathing room between payments. Many businesses use that buffer to manage seasonal dips, cover unexpected expenses, or simply keep operations running smoothly. Under Payday Super, that buffer disappears. Instead of four lump-sum payments, you’ll be making 26 (fortnightly) or even 52 (weekly) super payments per year. The total amount you owe doesn’t change, but the timing does — and timing is everything when it comes to cash flow. Industry modelling suggests the average small-to-medium business paying staff fortnightly could need an additional $124,000 in working capital from day one just to manage the transition. That’s not extra money you’re paying — it’s money you need available sooner than before. Which Businesses Will Feel It Most? Not every business will be affected equally. If your revenue is steady and predictable, you may adjust without too much difficulty. But if your business experiences seasonal fluctuations, irregular income, or operates in industries like hospitality, retail, or construction, the shift could create real pressure. Research suggests that more than one in five small and medium businesses could struggle with the cash flow impact of these changes. Businesses that have historically relied on the quarterly super cycle as an informal cash flow tool will feel the pinch the hardest. Treasury has been transparent about this. They’ve acknowledged that the reform may trigger financial difficulties for some businesses — particularly those already operating on tight margins. How to Prepare Start modelling now. Map out what your super obligations will look like on a per-pay-run basis, not quarterly. Understand the dollar impact across a full year. Build a cash buffer. If possible, begin setting aside super with every pay run now, even though it’s not yet required. This helps you adjust gradually rather than facing a sudden shift in July 2026. Review your payment terms. If you invoice clients on 30 or 60-day terms, consider whether your collection cycle aligns with more frequent super payments. Talk to your accountant. A cash flow forecast tailored to your business can identify potential shortfalls early, before they become a problem. Don’t Wait Until July The businesses that will navigate this transition smoothly are the ones that start planning now. Cash flow surprises are the kind of problem that’s far easier to prevent than to fix. If you’re unsure how Payday Super will affect your business financially, get in touch with Collins Hume today . Our Strategy360 team can help you build a clear cash flow plan so you’re ready well before the 1 July deadline. A cash flow conversation now could save you a lot of stress later. Access more Payday Super resources here »

When to Sell Your Business (and why you should start planning now even if you’re not ready) Deciding to sell your business is never just a financial decision. It’s personal. You’ve invested years of effort, energy and sacrifice into building something meaningful so it’s natural to feel unsure about when (or whether) to step away. But here’s the reality most business owners discover too late: The best time to prepare for selling your business is long before you actually want to sell. Waiting until circumstances force your hand — burnout, health issues, market shifts or unexpected life changes — often means accepting less than your business is truly worth. Even if selling isn’t on your radar right now, proactive exit planning puts you back in control. Why smart business owners plan their exit early There’s no universal “perfect time” to sell a business. However, experienced advisers see the same themes come up again and again when owners start considering their next chapter. These signs don’t mean you must sell, but they do signal it’s time to start planning. You’ve lost passion or momentum Every business has tough days. But when the bad consistently outweigh the good and motivation fades, it’s often a warning sign of burnout. Early planning gives you options, whether that’s restructuring, delegating more or preparing for a future exit. Your business is performing strongly Ironically, thriving businesses attract the strongest buyers. Strong profits, a capable team and clear growth potential place you in a powerful negotiating position. Planning while your business is healthy allows you to maximise value and avoid rushed decisions later. Your priorities are changing Family, lifestyle, new ventures or simply wanting more freedom — priorities evolve. If your focus is shifting, now is the time to assess how prepared your business is to operate without you at the centre. A well-planned business is easier to sell — and easier to step back from. Your industry is changing Technology, regulation and market conditions don’t stand still. If disruption is on the horizon and you’re unsure you want to lead the next phase, early preparation gives you flexibility before  external pressures reduce your options. Selling is emotional — planning makes it easier Selling a business isn’t just a transaction. It’s a transition. Many owners struggle with letting go of something that’s defined a large part of their life. Having a clear vision for what comes next — retirement, consulting, travel or a new venture — makes the process far smoother and more rewarding. Seller’s remorse is common. So is relief when an exit is well planned and well timed. Even if you’re not selling, exit planning strengthens your business Exit planning isn’t about walking away tomorrow. It’s about improving profitability, reducing owner dependency, documenting systems, strengthening management, understanding your business value and protecting against unexpected change. These steps don’t just prepare you for a future sale; they make your business stronger, more resilient and more enjoyable to run right now. In many cases, owners who start exit planning early end up building businesses they don’t need to sell. And that’s exactly what buyers want! Not planning to sell? That’s exactly why now is the right time to start. Don’t wait for burnout, market shifts or life events to force your decision. A simple exit readiness conversation can help you understand your business value, identify gaps and put a practical plan in place — whether selling is five years away or never. Start preparing while you still have choices. Reach out for a confidential discussion and take control of your future today. Inspiring, Powerful, Meaningful Advice for Your Business

Using Downsizer Contributions When Selling Your Home When clients sell a long-held family home, they may be able to channel part of the proceeds into superannuation by using the downsizer contribution rules. Basic Eligibility Conditions To qualify, the seller must meet a number of conditions: They must have reached the eligible age of 55 years (at the time of making the contribution). The eligible dwelling must be located in Australia and have been owned for at least 10 years. The disposal of the dwelling must be exempt from CGT under the main residence exemption to some extent (full exemption not required). The contribution must be made within 90 days of settlement, and an election form must be lodged with the fund no later than when the contribution is received. The downsizer contribution can only be used once per individual and is limited to the lesser of the gross sale proceeds or $300,000 per person. Does the Sale Need to be Fully CGT-exempt? A common question is whether the sale must be fully exempt as the main residence. Importantly, a full exemption is not required. Even if only part of the capital gain is exempt under main residence rules, the property may still qualify — provided all other conditions are met. Is the Property Required to be the Main Residence at Sale? Equally important: the property does not need to be the seller’s principal residence at the time of sale. Living in the property for some years and renting it out later does not disqualify it, as long as the ownership and residence history supports at least a partial main residence exemption.  Special Rules for Pre-CGT Properties Where a property was acquired before CGT began, the rules look at whether part of the gain would have been disregarded had CGT applied. A key requirement is that there is a dwelling that qualifies as the main residence. Disposal of vacant land will generally not satisfy the test and therefore will not meet downsizer requirements.  Eligibility of a Non-Owning Spouse It is common for only one spouse to be listed on the property title. A non-owning spouse may still qualify for a downsizer contribution if all other requirements are met, apart from ownership. However, a spouse who never lived in the property and could not reasonably have treated it as their main residence is unlikely to be eligible. Preservation and Access to Funds A downsizer contribution is subject to the standard preservation rules. Once contributed, the amount cannot be accessed until: You reach preservation age (60) and retire, or You reach age 65, regardless of retirement status. Consider future cash flow needs before making the contribution. Before you Contribute Although seemingly straightforward, downsizer contributions involve several nuances. Please contact Collins Hume in Ballina if you have any questions.

Payday Super: 6 Things Every Small Business Needs to Know Before 1 July 2026   If you employ staff, one of the biggest changes to hit your business in years is coming on 1 July 2026. It’s called Payday Super, and it fundamentally changes how and when you pay superannuation. Under the current system, you have until 28 days after the end of each quarter to pay your employees’ super. That’s about to end. From 1 July, you’ll need to pay super at the same time as wages, with contributions reaching your employees’ super funds within seven business days of each payday. The total amount you owe doesn’t change. But the timing, the systems, the compliance rules, and the consequences of getting it wrong all do. Here are the six key areas you need to understand. 1. Your Cash Flow Will Be Affected This is the change most businesses will feel first. Instead of four quarterly super payments, you’ll be making 26 (fortnightly) or 52 (weekly) payments per year. The quarterly buffer that many businesses have relied on to manage short-term cash flow simply disappears. The cash flow impact is real. Under the current system, you might hold two or three months’ worth of super in your account before it’s due. Under Payday Super, that money leaves every pay cycle. For a business with 10 employees on average salaries, that could mean tens of thousands of dollars you no longer have as a buffer. Employment Hero’s modelling of over 300,000 businesses put the average working capital shift at $124,000 — though the actual impact on your business will depend on your team size, pay levels, and pay cycle. Either way, the time to model this for your business is now, not in June. 2. Your Payroll System Needs to Keep Up Going from 4 super submissions a year to 26 or 52 is a massive jump in processing volume. Your payroll system will need to calculate, submit, and track super contributions with every single pay run — automatically and accurately. If you’re still relying on manual processes, spreadsheets, or disconnected systems, those gaps will be exposed quickly under Payday Super. One missed step on one pay run could trigger penalties. Check with your payroll software provider now to confirm their system is Payday Super-ready, and start testing before July. 3. The ATO’s Free Clearing House Is Closing If you use the ATO’s Small Business Superannuation Clearing House (SBSCH) to process super, it’s closing on 1 July 2026. It stopped accepting new registrations in October 2025, and existing users have until 30 June to transition to an alternative. The SBSCH was built for quarterly batch processing and simply can’t support the speed and frequency Payday Super demands. You’ll need to move to a commercial clearing house or an integrated payroll solution that can handle real-time payments. Don’t wait until the last minute — migrating takes time, and you’ll want to test your new setup before the old one switches off. 4. The Penalties Are Tougher Under the new rules, the Superannuation Guarantee Charge (SGC) is assessed per payday, not per quarter. If a contribution doesn’t reach an employee’s fund within seven business days, you’ll face the shortfall amount, interest, and an administrative uplift of up to 60%. Here’s the catch many businesses miss: even if you initiate the payment on time, bank transfers can take up to three days. Add clearing house processing time, and you could breach the seven-day rule without realising it. The ATO has said it will take a measured approach in the first year for businesses making a genuine effort — but that’s not a free pass. 5. How Super Is Calculated Is Changing Super will now be calculated on “qualifying earnings” (QE) instead of “ordinary time earnings” (OTE). QE is a broader measure that includes salary sacrifice contributions and other amounts. For most employees on simple pay arrangements, there will be no difference. But if you have staff on salary sacrifice, variable pay, or earnings near the maximum contribution base, it’s worth reviewing. The maximum super contribution base is also moving from a quarterly to an annual threshold. This means one-off bonuses that previously pushed an employee over the quarterly cap may now attract super if total annual earnings stay below the annual limit. For some businesses, this will mean paying more super for certain employees. 6. Directors Face Greater Personal Risk If you’re a company director, Payday Super raises the governance stakes. The Safe Harbour provisions under the Corporations Act — which protect directors pursuing a restructuring plan — require that employee entitlements are paid on time. Under the new rules, every missed payday super payment could disqualify you from Safe Harbour protection. The director penalty regime also becomes more immediate. With the ATO receiving per-payday data instead of quarterly reports, shortfalls are identified faster, and Director Penalty Notices can follow sooner. Treasury has openly acknowledged the reform may trigger an increase in insolvencies among businesses that have been using quarterly super as an informal cash flow tool. What You Should Do Now The 1 July 2026 deadline is firm, and the businesses that prepare early will transition smoothly. Those that don’t risk cash flow surprises, system failures and penalties that are far more punishing than under the current rules. We recommend every business take these steps now: model the cash flow impact of per-payday super payments, confirm your payroll system is ready, migrate off the SBSCH if you use it, and review your employee pay structures for any calculation changes. For help preparing for Payday Super, Collins Hume is here for you. Whether it’s a cash flow forecast, a payroll review, or simply a conversation about what these changes mean for your specific situation, reach out to our team. A small investment of time now will save you from a much bigger headache later. Access more Payday Super free factsheets here »