Business owners and leaders will have the opportunity to benchmark their performance against industry leaders at an upcoming Top Performer Workshop this May (date TBC), presented by Nathan McGrath. Designed for SMEs and growth-focused organisations, the workshop provides practical insights into what consistently high-performing businesses do differently, particularly in challenging and uncertain conditions. Participants will complete a personalised Risk-Profit-Value Driver Assessment ahead of the session, forming the foundation for a guided workshop experience. Using robust financial and non-financial benchmarks, attendees will gain a clear understanding of their business strengths, exposure areas, and the key drivers influencing profitability, risk and long-term value. The session will also include real-world case studies, Top Performer strategies and practical actions that can be applied immediately to improve performance and decision-making. Attendees will leave with a personalised driver scorecard, profitability insights, industry valuation perspectives and a clear set of priority actions. This workshop is suited to business owners, directors, executives, CFOs and leaders focused on strengthening performance, improving resilience and building long-term business value. Further details, including date, time and venue, will be confirmed shortly. Request a workshop brochure » About Nathan McGrath Nathan McGrath is a Senior Business Advisor at Strategy360 By Collins Hume, bringing more than a decade of hands-on advisory experience across SMEs, corporates and government programs, complemented by leadership roles at General Manager and Director level. His work centres on helping business owners step back from day-to-day pressures to clarify direction, strengthen performance and make confident decisions around growth, funding and transition.  Nathan brings practical, real-world insight, cutting through theory to focus on what actually works inside a business. He is known for translating financial and strategic complexity into clear, actionable steps, helping leaders improve profitability, manage risk and position their businesses for sustainable growth and long-term value.

The Payday Super Penalty Framework is stricter than you think Read What’s at Stake   One of the most important things to understand about Payday Super isn’t just that you need to pay super more often. It’s that the consequences of getting it wrong are more severe than under the current system. Under today’s rules, if you miss a quarterly super deadline, you face the Superannuation Guarantee Charge (SGC). It’s not pleasant, but the quarterly cycle means you have larger windows and fewer deadlines to manage. From 1 July 2026, the compliance framework tightens significantly. And for small businesses, the risks are real. How the New Penalties Work Under Payday Super, the SGC is assessed per payday, not per quarter. Every time you pay wages, you trigger a super obligation. If that contribution doesn’t reach the employee’s super fund within seven business days, the SGC clock starts ticking. The new SGC includes: The shortfall amount — the super you should have paid. Interest (notional earnings) — calculated on the unpaid amount. An administrative uplift of up to 60% — this is the real sting. It’s a penalty applied on top of the shortfall and interest, and it can vary depending on your compliance history. If you’ve been consistently paying on time and make a genuine mistake, the uplift may be reduced. But if you have a pattern of late payments, expect the full force of the penalty. On top of the SGC, additional penalties may apply if you don’t pay the charge within 28 days of receiving an ATO notice. Unlike regular super contributions, SGC amounts and penalties are generally not tax-deductible. Take Payday Super Compliance Seriously The penalty framework under Payday Super is designed to be taken seriously. A 60% administrative uplift on top of shortfall amounts can turn a small oversight into an expensive problem. The Hidden Risk: Processing Delays Here’s something many small businesses don’t realise yet: even if you initiate a super payment on time, it might not arrive at the fund within seven business days. Standard bank transfers can take up to three business days. If your clearing house or payment gateway adds another day or two for processing, you’re already eating into your seven-day window. A rejection or error could push you over the line entirely — and you may not even know it happened until the ATO flags it. This is one of the trickiest aspects of Payday Super for small businesses. You can do everything right on your end and still be caught out by the payment infrastructure. The First-Year Grace Period (With Conditions) The ATO has said it will take a “measured approach” to compliance during the first 12 months. In practice, this means they’ll differentiate between businesses that are genuinely trying to comply and those that aren’t. If you can show that you’ve updated your systems, are making payments on time, and are actively addressing any issues, you’re likely to be treated as low risk. But this is not a free pass. The ATO will still be monitoring, and repeated or careless non-compliance will be met with enforcement action. How to Protect Yourself Understand the seven-day rule inside out. Know how long your payments take from initiation to fund receipt, and build in a buffer. Automate your payments. The less manual intervention required, the lower your risk of delays and errors. Keep records. Maintain clear proof-of-payment documentation for every pay run. If the ATO comes knocking, you want a clean paper trail. Monitor your compliance history. A strong track record may reduce penalties if something goes wrong. If you’re unsure about your exposure under the new rules, speak with us sooner rather than later . We can review your current super processes, identify potential compliance risks, and help you put the right safeguards in place before Payday Super begins. Access our free Payday Super resources here »

Every decision you make as a business owner has consequences. Some choices move the business forward. Others quietly set it back. What many underestimate is how often the real damage comes not from big mistakes, but from small, repeated losses that go unnoticed. Cue sporting analogy Anyone who has trained for a triathlon knows that success isn’t about dominating one discipline. It’s about consistency across three. You might shave a few seconds off your swim with months of training. The same goes for improving your cycling power or running pace. Marginal gains are possible, but they take time and discipline. But go the other way? Miss a transition. Forget hydration. Push too hard early in the bike leg and fade on the run. Suddenly minutes disappear from your race time. Triathlon teaches a simple lesson: small mistakes compound faster than small improvements. Business works exactly the same way. Running a business is a constant balancing act. Pricing, staffing, marketing, service delivery and cash management all interact with each other. Each decision nudges performance slightly forward or slightly backward. And just like in triathlon, it’s often easier to lose ground than to gain it. Another parallel comes from training itself. When you’re preparing for endurance events, consistency matters more than intensity. Missing a few sessions might not feel like a big deal at the time, but over weeks those gaps show up in performance. Business behaves the same way. Small inefficiencies left unattended build into real problems. That might look like: Debtors sitting unpaid while cash flow tightens Labour not being properly recovered through pricing Small operational inefficiencies quietly eroding margin Owners coasting without fully understanding the numbers. Individually, none of these issues seem dramatic. But together they act like friction, slowing the entire business down. Many owners believe growth comes from constantly pushing harder — more customers, more sales, more activity. But often the bigger opportunity lies somewhere else entirely. It lies in stopping the easy losses. When those gaps are addressed, the gains you are already making begin to compound properly. Another truth about endurance sport applies here too: performance can be disguised in the short term. A strong race, favourable conditions or a good training block can mask underlying weaknesses. But over time the fundamentals catch up. Business is no different. A big project, a strong year, or a lucky run can hide inefficiencies for a while. But the organisations that endure are the ones that consistently manage the basics and avoid repeated performance leaks. Winning in business isn’t about perfection. It’s about staying steady, protecting the fundamentals, and giving your successes the time to compound. So the next time you find yourself pushing harder for incremental improvement, pause for a moment. Instead, ask a different question: Where might our business be quietly losing ground? Because fixing those hidden drop-offs will often deliver far greater long-term results than chasing small wins ever could. Ready to Find the Hidden Gaps? To gain a clearer picture of where your business may be leaking performance — from pricing and labour recovery to cash flow and operational efficiency — start with a structured review of the key drivers of business value. Speak with our Strategy360 team about a Value Driver Assessment and discover the areas where small improvements could deliver the biggest long-term impact.

A Wake-Up Call for Family Businesses on Fringe Benefits Tax With Fringe Benefits Tax (FBT) lodgement season, family businesses should carefully review the perks they provide to working directors and family members. A high-profile case involving luxury vehicles provided to three brothers who run a large business empire through a discretionary trust highlights the complexities — and potential risks — of informal arrangements. While the case initially appeared to expand FBT exposure, the latest decision handed down by the Full Federal Court offers reassurance that not all benefits provided to working owners will automatically trigger FBT. What may seem like harmless "owner entitlements" or beneficiary perks can still attract scrutiny from the Australian Taxation Office (ATO). However, the courts have emphasised the importance of substance, documentation, and the capacity in which benefits are provided. The Background Three brothers operate a substantial business involving petrol stations, convenience stores, fast food, tobacco outlets and gift shops. They serve as shareholders, directors and key decision-makers (with powers as appointors under the trust deed), working long hours in executive-style roles without drawing formal cash salaries or wages. Profits and benefits flow through the family discretionary trust (SFT Trust), of which their corporate trustee (SEPL Pty Ltd) is the trustee. The brothers and family members are beneficiaries. The business provided them with exclusive access to over 40 luxury and high-performance vehicles (including Bentleys and Ferraris) for both business and personal use. Costs associated with personal use were debited to the matriarch’s beneficiary account and later cleared by trust distributions — a mechanism consistent with beneficiary entitlements rather than employment remuneration. The ATO assessed FBT on the private use component of these car benefits, arguing they were fringe benefits provided to the brothers as "employees" in respect of their employment. What the Court Decided The Administrative Appeals Tribunal (AAT) initially ruled in favour of the taxpayer ( Re BQKD and Commissioner of Taxation  [2024] AATA 1796). It found that the brothers were not "employees" for FBT purposes and that, even on a hypothetical basis, the vehicle benefits were not provided "in respect of" any employment. The benefits were instead linked to their capacities as beneficiaries, proprietors, and controlling family members. The Commissioner appealed to a single judge of the Federal Court, who in June 2025 ( Commissioner of Taxation v SEPL Pty Ltd as trustee of the SFT Trust  [2025] FCA 581) allowed the appeal. Justice O'Sullivan held that the brothers were employees under the broad FBT definitions (including via the hypothetical deeming rule in s 137 of the Fringe Benefits Tax Assessment Act 1986 (Cth) — FBTAA) and that the benefits were provided in respect of their employment. The taxpayer then appealed to the Full Federal Court. On 27 March 2026, in SEPL Pty Ltd as trustee of the SFT Trust v Commissioner of Taxation  [2026] FCAFC 36 (Perry, O’Callaghan and Thawley JJ), the Full Court unanimously allowed the appeal. The Full Federal Court basically restored the AAT's decision. Key findings: Employee status: It was open to the AAT to conclude the brothers were not "employees" for FBT purposes. The definitions of "employee" and "salary or wages" ultimately draw on common law concepts of employment. The AAT properly considered factors such as the absence of employment contracts, no wages or leave entitlements, the presence of employed managers for operational roles, and the brothers' control being referable to their proprietorial and governance roles rather than traditional employment. "In respect of" employment: Even assuming (hypothetically) that the brothers were employees, it was open to the AAT to find there was no sufficient material connection between the benefits and any employment relationship. Here, access to the vehicles was not a substitute for salary or wages. The AAT correctly weighed competing explanations and found the benefits arose primarily from family/trust relationships, not employment. Why This Matters for Your Business The case underscores the ATO's ongoing focus on dual-capacity individuals (e.g., directors who are also beneficiaries and active workers in trust structures). However, the Full Court's reasoning provides important boundaries: Informal perks for working family members in discretionary trusts are not automatically subject to FBT. Substance and documentation matter: How benefits are provided, funded, and recorded (e.g., via trust distributions vs. remuneration) can help in determining the outcome. Common law employment concepts remain relevant in interpreting FBT definitions. Blending roles does not inevitably trigger FBT if the dominant characterisation is beneficiary-based. Family businesses should still exercise caution. The ATO may continue to scrutinise similar arrangements, particularly where benefits appear to represent a substitute for remuneration or lack clear documentation. Superannuation contributions or executive titles can sometimes support employee characterisation, though they were not decisive here. Practical Steps to Protect Your Business Don't wait for an audit — review your arrangements now: Document clearly: If a benefit is a trust distribution to a beneficiary, record it via trustee resolutions. If it's tied to work duties, treat it as a fringe benefit and calculate FBT accordingly. Or confirm why they fall outside the regime. Consider FBT properly: Apply statutory formulas or operating cost methods for cars. Employee contributions (e.g., reimbursing personal use) can reduce or eliminate liability. Consider exemptions/concessions: Minor benefits under $300, or salary packaging for EVs, might help. Audit overlaps: We also need to check for Division 7A loan issues or deemed dividends if benefits flow through private companies. Plan proactively: With ATO focus intensifying (as highlighted in recent compliance updates), model scenarios to minimise tax without losing commercial perks. Remember that if the ATO discovers some unreported FBT liabilities then the business can also be exposed to penalties and interest. The SEPL case ultimately favours the taxpayer and reinforces that FBT does not capture every benefit provided to working owners in family trust structures. However, every arrangement turns on its specific facts and evidence. If your business provides vehicles, phones, travel, or other perks to family members actively involved in operations — especially without formal salaries — now is a good time to review. Our team can help analyse your structures, run FBT calculations or risk assessments, and implement practical fixes to protect profits while maintaining flexibility. The law in this area is fact-sensitive and continues to evolve. Professional advice tailored to your circumstances is essential. 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.

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.