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Government to wind back electric vehicle FBT exemption in three stages The Government has announced a staged wind-back of the current Fringe Benefits Tax (FBT) exemption for electric vehicles (EVs), following recommendations from the Statutory Review of the Electric Car Discount released in May 2026. While the policy continues to support EV uptake, it also aims to make concessions more sustainable and better targeted. The changes are expected to save the Budget an estimated $1.7 billion over five years from 2025–26. Importantly, nothing changes immediately—the existing full FBT exemption for qualifying EVs continues until 31 March 2027. Three-phase transition Phase 1 — Now until 31 March 2027 The current rules remain fully in place. Eligible EVs below the Luxury Car Tax (LCT) threshold (approximately $91,387 for fuel-efficient vehicles in 2025–26) continue to enjoy a complete FBT exemption. For businesses and employees using novated leases or salary packaging, there is no change during this period. Phase 2 — 1 April 2027 to 31 March 2029 The concession begins to narrow, with a focus on more affordable vehicles: EVs costing $75,000 or less: Full FBT exemption continues if the eligibility conditions are met. EVs priced above $75,000 and below the LCT threshold: A 25% FBT discount applies when calculating the FBT liability. This phase is intended to encourage manufacturers to continue supplying competitively priced EVs into the Australian market, complementing the Government’s New Vehicle Efficiency Standards. Phase 3 — From 1 April 2029 All eligible EVs under the LCT threshold will receive a flat 25% FBT discount, regardless of price. The import tariff exemption for qualifying EVs remains permanently in place. Grandfathering of existing leases The Government has indicated that existing arrangements will be protected: current leases will not be affected by the new rules. Draft legislation will clarify the precise scope of this grandfathering, but businesses and employees can take some comfort that current packages will continue to qualify for existing FBT concessions. What this means for your business and your employees The FBT exemption has been one of the most effective incentives driving EV adoption, particularly via novated leasing, allowing employees to access EVs using pre-tax income. The Review found that the exemption: Led to around 64,000 additional battery EVs in its first three years Reduced emissions and improved fuel savings Increased EV uptake across metropolitan, regional and outer-suburban areas However, it also highlighted equity concerns (higher-income employees benefited disproportionately) and noted that costs to the Budget were growing quickly. The new phased approach aims to balance continued access to lower-cost EVs with long-term fiscal sustainability from the Government’s perspective. Practical considerations for businesses and individuals Consider acting before 31 March 2027: Anyone thinking about packaging an EV may benefit from entering arrangements while the full exemption still applies. Timing of orders and leases will be particularly important. Review fleet and salary packaging models: From 2027 onwards, the value proposition will shift. EVs at or below $75,000 will remain highly attractive under the full exemption in Phase 2. Commercial fleets: Businesses with high work-use vehicles may see limited impact, but reviewing total cost of ownership (including FBT, running costs and charging infrastructure) remains essential. Second-hand EVs: A growing used-EV market may provide cost-effective alternatives, particularly where new-vehicle thresholds become restrictive. EV momentum remains strong. EV/PHEV sales reached 22.9% of new vehicles in March 2026, up from just 1.8% in May 2022, with an increasing number of models now available in the $30,000–$40,000 range. Next steps These reforms maintain support for cleaner transport while tightening the focus of concessions. As always, the fine print in the amending legislation will matter, especially when it comes to transitional rules. If you are considering acquiring an EV—personally or for your business—or want to understand the impact on salary packaging and fleet costs, Collins Hume can model the outcomes and advise on the optimal timing. Please let us know if you would like our assistance with working through your options.

We are now just over 6 months into the November 2025 aged care changes. How’s it going so far? From what I see, hear and read … it’s not going as well as hoped / planned. We still have delays to get an assessment, we have an assessment tool that seems to be restricting home care package levels, we have a Commonwealth Home Support Program (CHSP) that is bulging at the seams and difficult to find participating service providers and workers, we still have long wait times for home care funding and people having to restrict / limit / cancel home care services as they exceed budgets due to increased service hourly rates, we still have long residential care waiting lists and hospitals have (unintentionally) become residential aged care facilities … and the Government want you to pay more for all of this. The aged care wave often travels far too slowly when you want / need it to go (much) faster. In recent times, I’ve had an increased number of people and their families approach me about how they can be better prepared just in case they need to jump onto the aged care wave … rather than wait for a crisis and hope for good outcomes. Get your legal documents done / reviewed Make sure you have a Will, an Enduring Power of Attorney (financial matters), an Enduring Guardian (health & care matters) and an Advance Care Directive. Make sure you know where the originals are stored and review them to ensure they accurately reflect your current wishes and expectations. Ensure the person / people nominated for various roles know they’ve been nominated and that they clearly understand their role and responsibilities (especially if they are a friend or neighbour). Register with My Aged Care The aged care journey starts when you register with My Aged Care. It’s a phone call (P: 1800 200 422) to request that you be registered on the system … even if you don’t need anything else right now. Nominate people who can talk and act on your behalf With organisations like My Aged Care and Centrelink, you should nominate someone to act as a back-up Authority (responsible person) on your behalf if you are unable to for whatever reason. Get all your important documents sorted and together For someone to step into your life to help handle your affairs, it’s important that they know what is expected of them … AND (most importantly) where to find all your important documents. This makes a difficult job so much less stressful rather than having to find and sort through reams of paperwork. Get a Centrelink assessment underway Centrelink are the hub for financial assessments … how much are you going to pay for your care – either at home or in residential care. And … there’s a form for that (of course). Many people mistakenly think Centrelink already know all about their financial affairs. They don’t … unless you (regularly) tell them. If you don’t want to tell them … that’s fine … but be prepared to pay for that. How Family Aged Care Advocates help you Family Aged Care Advocates can help you with all of this. Give us a call on 0411 264 002 or email Shane to organise a day and time for a discussion … at your home. Call Shane Hayes on 0411 264 002 or email shane@faca.com.au to organise a day and time for a discussion at your home.

Why Payday Super Raises the Stakes for Company Directors If you’re a director of a small business, Payday Super isn’t just an HR or payroll issue. It’s a governance issue that could directly affect your personal legal exposure. The new rules don’t just change how super is paid — they change the legal landscape around director responsibilities, insolvency protections and personal liability. The Safe Harbour Problem Under Australian insolvency law, directors have a duty to prevent a company from trading while insolvent. The Safe Harbour provisions under the Corporations Act provide some protection — they allow directors to continue trading while pursuing a restructuring plan, provided certain conditions are met. One of those conditions is that employee entitlements are being paid on time. And from 1 July 2026, super is front and centre. Under Payday Super, if your company is not paying super contributions within seven business days of each payday, you may not be eligible for Safe Harbour protection. This is a significant change. Previously, with quarterly deadlines, there was more flexibility. Now, every missed payday super payment could undermine your ability to rely on Safe Harbour if your business faces financial difficulty. For directors of businesses with fluctuating revenue or tight cash flow, this creates a much narrower path. You need to be meeting super obligations in real time to maintain your legal protections. Personal Liability for Directors Directors should also be aware of the director penalty regime. Under existing law, the ATO can issue Director Penalty Notices (DPNs) to recover unpaid super. If super goes unreported or unpaid for more than three months, the penalty becomes “lockdown” — meaning it can only be discharged by paying the full amount. It cannot be avoided through voluntary administration or liquidation. With Payday Super, the shift from quarterly to per-payday obligations means shortfalls can accumulate faster and become visible sooner. The ATO will have much more frequent data points to identify non-compliance, and the window for DPN lockdown is tighter. In plain terms: if your company falls behind on super under the new rules, the personal risk to you as a director escalates more quickly than it did before. Treasury’s Frank Acknowledgement It’s worth noting that Treasury has openly acknowledged the reform is likely to trigger an increase in insolvencies. Many businesses have historically used the quarterly super cycle as an informal cash flow tool — holding contributions until the due date to manage short-term liquidity. That practice is no longer viable under Payday Super. Businesses that can’t fund super with every pay run will need to either restructure their operations or face the consequences. For directors, this means having honest conversations about your company’s financial position — now, not in July. How to Protect Yourself Know your obligations. Understand how the Safe Harbour provisions interact with Payday Super and what you need to do to maintain eligibility. Monitor cash flow closely. Build cash flow forecasts that incorporate per-payday super obligations and flag potential shortfalls early. Stay current on super payments. Even one missed payment could have consequences. Ensure your payroll and payment systems are automated and reliable. Document your decision-making. If your business faces financial difficulty, keeping clear records of your efforts to comply and restructure can support a Safe Harbour defence. Get professional advice early. If you’re concerned about your company’s ability to meet Payday Super obligations, speak to your accountant and a restructuring advisor before problems escalate. This Is Not One to Ignore Payday Super raises the governance bar for company directors. The stakes are personal, the timelines are tighter, and the consequences of non-compliance are more immediate. If you’re a director and you’re unsure how these changes affect your legal position, book a time to speak with Collins Hume. We can help you understand your obligations, review your company’s readiness, and put a plan in place that protects both your business and you personally. Access our free Payday Super resources and factsheets »

The end of the financial year is fast approaching. What to check before 30 June. For SMSF members and trustees, a few timely checks now can avoid headaches later and help preserve valuable tax and contribution opportunities. Below is a checklist of the things members and trustees should consider before 30 June. Contributions — timing matters Get contributions into the fund by 30 June: For both tax deductibility and contribution cap purposes, cash and electronic transfers generally need to be received by the SMSF’s bank account on or before 30 June. TIP: When transferring amounts between different banks allow extra days for bank processing times. Personal deductible contributions: If you want to claim a tax deduction for a personal contribution, you must notify the fund and receive the fund’s acknowledgement by the required deadline (usually before the earlier of lodging the tax return or 30 June the following year). If you’re looking to start a pension early in the new year, you’ll need to get your notice of intent to claim a deduction processed even earlier (ie, before you start the pension). Otherwise, you may miss out on the opportunity to claim a deduction for the contribution made. Contribution strategies you might use Carry forward concessional amounts: Eligible members with lower total super balances (less than $500,000) at 30 June in the prior year may be able to use unused concessional caps from previous years to make larger deductible contributions this year. This may be useful if you have a larger capital gain in your personal name for the 2025/26 financial year. SMSF‑only 28‑day allocation rule: SMSFs can temporarily hold a June contribution in an unallocated reserve and allocate it to a member in July so it counts for the following year’s caps — but this must be done correctly, documented in minutes and the fund’s deed must allow it. Commonly referred to as a contribution reserving strategy. Again, this may allow members to take advantage of claiming a larger tax deduction this year. Post‑tax personal contributions and limits Non‑concessional contributions and bring‑forward: Whether a member can use the bring‑forward rule depends on their total super balance on the prior 30 June. Opportunities may be available for some members to make contributions this year, including bringing forward and taking advantage of future year contribution amounts. Spouse contributions and government co‑contribution: Contributions made by a member for their spouse can attract a tax offset in some circumstances; low‑income members may qualify for a government co‑contribution if they make post‑tax contributions and meet the income test. Increase in contribution caps Current year (2025/26) contribution caps are: Concessional contributions: $30,000. Non-concessional contributions: $120,000. These caps will increase from 1 July 2026 to: Concessional contributions: $32,500. Non-concessional contributions: $130,000 Pensions and the transfer balance cap Minimum pension payments: If your fund is paying account‑based pensions, make sure the minimum pension for each member has been paid by no later than 30 June 2026. Failing to pay the annual minimum pension for the financial year can create administrative complications and loss of tax concessions. Other types of pensions will also have minimum or set amounts that must be paid. Certain pensions also have maximum limits that should not be exceeded, as this will also have adverse outcomes. Transfer balance cap timing: Indexation to the general transfer balance cap will apply from 1 July 2026. Members thinking of starting a pension around the end of the 2025-26 financial year should consider timing carefully, as commencing before or after 1 July 2026 can affect how much can be moved into a tax‑free retirement pension. Current year (2025/26) general transfer balance cap is $2 million. This is set to increase to $2.1 million from 1 July 2026. Not everyone will have access to the general transfer balance cap, and an individual’s personal transfer balance cap may be lower than this. Records, valuations and audit readiness Market valuations: Ensure all assets are valued at market on 30 June (or as close to as possible) and supporting evidence is retained — especially for property, related‑party assets and unlisted holdings. Related‑party arrangements: Confirm leases, rents and services with related parties are documented and commercially reasonable. Pension paperwork and minutes: Check that pension commencements, commutations and lump sums are supported by correctly signed documents and trustee minutes. If you have any questions in relation to your SMSF year-end processes, please contact Collins Hume's SMSF Specialists to discuss on 02 6686 3000.

It's one of the most common things we hear: "We earn decent money but just can't seem to get ahead." The frustrating part? It's rarely about spending too much on takeaway. It's usually a structural problem. Money arrives, gets absorbed and disappears before it ever gets put to work. There's a few reasons this happens: Your income has grown, but so has your lifestyle A bigger salary often brings bigger expenses. The mortgage grows and so do lifestyle costs, but the savings rate stays the same. Because it happens gradually, it's easy to miss until you step back and realise not much has actually changed. There's no system telling your money where to go Without a clear structure in place, money tends to fill whatever space it's given. There's no automatic allocation, no clear destination; the month just happens, and the money goes with it. You're holding too much in the wrong places Cash sitting in an everyday account. Offset accounts not being fully utilised. Super parked in a default fund that hasn't been looked at since the job before last. These aren't dramatic mistakes. They're ones that compound over a long time. Tax is taking more than it needs to Dual income households, investment properties, business income, trust distributions, share portfolios. The more moving parts in your financial life, the more opportunity there is for tax drag to quietly erode what you're building. And the more opportunity there is to do something about it with the right structure. What actually changes things? Getting ahead on a good income isn't about earning more. It's about making sure what you already earn is working properly across every layer of your financial life. A cash flow structure that runs itself Most people budget reactively. They check what's left and try not to spend it. A properly designed cash flow structure flips that. income arrives, gets allocated automatically across living expenses, tax provisions, buffers and investments and wealth building before discretionary spending gets a look in. For clients with more complex income, whether that's commission, bonuses, business distributions or multiple income streams, getting this structure right will have the biggest impact. Putting idle money to work across the right structures There's usually more sitting around than people realise. An offset account that isn't fully loaded. Cash earning 1% when it could be doing more. Super sitting unreviewed. For higher net worth clients, the question also becomes which entity should hold what. Assets sitting in personal names when a trust or company structure might be more appropriate, investment income being taxed at the top marginal rate when it doesn't need to be. Finding and fixing these often lead to the fastest wins. Reducing the tax drag For higher earners, tax is frequently the single largest expense and the most controllable one. Salary sacrifice, concessional super contributions, debt recycling strategies, investment timing, franking credit optimisation, and income splitting. A good financial plan doesn't just invest your money. It looks seriously at how to keep more of it first, and builds the investment strategy around that foundation. Giving every dollar a clear purpose When money has a destination, whether that's the mortgage, an investment portfolio, school fees or a property purchase in three years, it stops disappearing into the general noise of life. For our clients with multiple goals running at the same time, having a plan that holds all of that together is key. 👉 Key takeaway: The people who break out of the cash flow trap aren't usually the ones who started earning more. They're the ones who got a proper structure in place and stopped leaving it to chance. For more clarity on how advice could help you, please feel free to get in touch with Essential Wealth & Retirement (EWAR). P. 02 5562 6260 (Ballina) P. 07 5230 4198 (Gold Coast) E: support@ewar.com.au W: www.ewar.com.au Ballina Office Address: 97 Tamar Street, Ballina, NSW 2478 Gold Coast Office Address: 80-82 Upton St, Bundall, QLD 4217 BallinaGCFP Pty Ltd ABN 12 670 111 583 trading as Essential Wealth & Retirement is a Corporate Authorised Representative no. 1305335 of GPS Wealth Ltd AFSL 254 544. A word of caution - the included material in this newsletter has been provided as General Advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Adviser before you make any decision regarding this communication. We have taken care to prepare this material, but any decisions or actions you take as a result of you reading this communication are entirely your own.

FY27 Business Planning Planning for the year ahead shouldn’t feel like piling more onto an already stretched business. Yet that’s exactly where many plans go wrong. New products and services get added. More campaigns get approved. Extra goals creep in. On paper, it looks like progress. In reality, it often creates friction. The businesses that break through aren’t the ones doing the most. They’re the ones doing the right things – deliberately, consistently and well. The hidden cost of expansion without direction There’s a tipping point where adding options starts to erode performance: Every additional service requires delivery capacity Every new initiative demands attention Every extra priority competes for resources. Individually manageable. Collectively overwhelming. Over time, this shows up as slower execution, inconsistent outcomes for customers, teams unsure where to focus effort and revenue that grows – but margins and energy don’t. It’s not a capability issue. It’s a concentration issue. Reframing focus as a growth strategy Focus is often misunderstood as restriction. In practice, it’s a commercial decision: choosing where the business will win and where it won’t compete. That clarity creates leverage. Instead of spreading effort across multiple directions, focused businesses channel it into areas that produce measurable results. Key areas where focus drives immediate impact Tighten your positioning. Strong businesses are easy to understand. If a prospective customer asked, “What do you do best?”, the answer should be immediate and specific. When positioning is broad, marketing becomes harder and sales cycles lengthen. When it’s tight, both accelerate. Rationalise what you offer. Service creep is common, especially in established businesses. Over time, offerings expand to accommodate requests, opportunities, or internal capability. Not all of them remain commercially viable. A sharper portfolio typically means fewer services delivered at a higher standard, better alignment with profitable customers, and less operational strain. Remove operational drag. Most inefficiency isn’t obvious – it’s embedded in the way work flows. Repeated manual steps, duplicated effort and unnecessary approvals all slow a business down. Cleaning this up doesn’t just save time – it improves consistency and frees capacity for higher-value work. A more effective planning framework Instead of building next year’s plan by adding layers, start by stripping back: Start with subtraction. List everything currently consuming time, budget or attention. Then ask: if we were building this business today, would we choose to include this? If the answer is no, it’s a candidate for removal. Choose a primary commercial outcome. Whether it’s improving profitability, strengthening cash flow or building a specific capability, clarity matters. Multiple competing objectives dilute progress. A single priority concentrates it. Align effort to that outcome. Time, capital and team capacity should reflect what matters most. Anything sitting outside that direction needs a clear justification. Protect capacity for high-value work. Most businesses don’t lack ideas; they lack uninterrupted time to execute them properly. Creating space for meaningful work is often the difference between movement and measurable progress. What changes when focus improves Customers better understand your value. Marketing becomes more direct and effective. Internal decision-making speeds up. Teams operate with greater confidence. Growth becomes more controlled and predictable. Rather than chasing momentum, your business builds it. Planning with discipline, not volume As you map out the next 12 months, resist the instinct to expand first. Start with sharper questions: What is delivering the strongest return today? What is adding complexity without meaningful benefit? Where would a narrower focus improve performance? Often, the most effective plan is not the one with the most initiatives, but the one with the clearest intent. If your planning process needs more clarity and less clutter, Collins Hume’s Strategy360 advisory framework helps you identify where to concentrate effort, what to remove and how to align your business for stronger results. Start a conversation with Nathan McGrath and build a plan that delivers without adding unnecessary complexity. ​STRATEGY360° Inspiring, Powerful, Meaningful Advice for Your Business

When was the last time you worked ON your business? New workshop series for Northern Rivers Business Operators: The Business of Doing Business. Starts on Thursday 4 June. THE BUSINESS OF DOING BUSINESS A practical workshop series for Northern Rivers business owners and operators. Most business operators are caught in the crossfire between competing demands and dealing with the everyday business challenges that take you away from strategy: Staff issues Cash flow Customers Operations The next thing that lands on the desk Very few get the chance to step back and work on the business properly, which is exactly what is called for right now to stay ahead of the curve. That’s why we created The Business of Doing Business Series. Sometimes a single idea, a strategic shift, or a moment of clarity can completely change the trajectory of your business. We have created a practical workshop series designed by business operators for business operators, delivering on the BNSW mission of maximising the opportunities and potential of every Australian business. Clearer thinking. Strategic decision making. Stronger business. Across four half-day workshops throughout 2026, local business leaders, operators and advisers will work through the real challenges businesses are dealing with. Attend one session based on what your business needs most right now or attend the full series as the sessions build from direction, to dollars, to demand, to delivery. THE FOUR SESSIONS 4 JUNE Strategy, Growth & Transition Where is your business actually heading? * 2 JULY Money, Numbers & Funding Can we actually afford it? * 10 SEPTEMBER Customers, Brand & Digital Content Do they get it? 12 NOVEMBER Enhancing Business Performance Can we deliver it? WHAT YOU CAN EXPECT Real business examples and discussion Practical tools and frameworks Peer learning with other Northern Rivers businesses Time to work on your own business during the session Clear actions to take back into the business immediately LOCATION AND BOOKING DETAILS Starts Thursday 4 June 2026 Hosted at Southern Cross University, Lismore (easy parking and venue access) 8:30am to 12:30pm. Ticket options Individual sessions → $34 + GST & booking fees Full series pass → $99 + GST & booking fees Tickets now available via Humanitix: https://events.humanitix.com/the-business-of-doing-business-series * Nathan McGrath, Senior Adviser at Strategy360 By Collins Hume will be company-presenting two of the four Business of Doing Business Workshop sessions

What 2026–27 Federal Budget tax reforms mean for you The 2026–27 Federal Budget, released on 12 May 2026, has received more attention than most Budgets in recent years. With proposed changes to negative gearing, the CGT discount and the taxation of trusts, this is a Budget that has the potential to materially impact on property investors, business owners and families using discretionary trusts. However, it is important to remember that the proposed changes are not yet law and we might yet see further developments with some of these key proposals. For example, even though legislation has been introduced into Parliament in relation to some of the measures, there is no guarantee that the Bills will be passed in their current form. While don’t yet have certainty on how this will all play out, we understand that the proposals are causing some confusion and concern and so we have set out below some comments on what we know so far. Negative gearing – changes to apply from 1 July 2027 The Government is planning to tighten up negative gearing on established residential properties. For properties purchased after 7:30pm AEST on 12 May 2026: Rental losses can only be offset against rental income or capital gains from other residential properties. Any remaining losses must be carried forward and applied only against future residential rental income or residential property capital gains. Grandfathering applies. If you already own an established property—or had exchanged contracts before Budget night—nothing changes in terms of negative gearing. You can continue to deduct losses against salary, business profits and other income sources until you sell the property. The explanatory memorandum released with the legislation indicates that existing negative gearing rules will apply to properties that were acquired before Budget night, even if they weren’t used as rental properties at that time. For example, if you own a property that is currently used as your private residence but you later move out and start using it to generate rental income then the Government is indicating that existing negative gearing rules can still be available. However, the position is more complex than this and there is a technical issue that could potentially change this outcome. As a result, please contact us to discuss this further if you are thinking about converting your private home into a rental property. The new restrictions only apply to residential property, so losses relating to commercial property, shares and other asset classes should not be impacted. There are also carve-outs for commercial residential properties such as hotels, motels and boarding houses. ‘New builds’ remain fully eligible for current negative-gearing rules both before and after 1 July 2027, but final details of what will qualify as a ‘new build’ haven’t been released yet. Additional carve-outs apply to build-to-rent projects and certain government-supported housing. CGT discount - changes to apply from 1 July 2027 Individuals who hold an asset for more than 12 months often qualify for a 50% discount to reduce the taxable gain made on sale of the asset. A similar outcome can arise when a trust makes a capital gain and this is distributed to an individual beneficiary. However, from 1 July 2027 the CGT discount will be replaced for individuals and trusts with: Cost base indexation (inflation adjustment), and A 30% minimum tax on capital gains. This change will apply across all CGT asset categories—including residential and commercial property, shares, business assets and even pre-CGT assets. Importantly, gains that accrue up to 1 July 2027 will still receive the existing CGT discount or benefit from the existing exemption for pre-CGT assets. It will be necessary to determine the market value of assets at that date so that CGT calculations can be performed. For new residential properties, investors can choose either the existing CGT discount or the new indexation / minimum tax method. Companies won’t have access to indexation and complying super funds will continue to enjoy the benefit of the existing 1/3 CGT discount. Indexation won’t be available to individuals who have been classified as a foreign resident or temporary resident for tax purposes during the ownership period of the asset. Example Michael owns an investment property purchased before Budget night that is currently negatively geared. He can continue offsetting rental losses against his salary. When he sells: The portion of the gain attributable to ownership before 1 July 2027 receives the 50% CGT discount. The portion accruing after that date is subject to indexation plus the 30% minimum tax. Michael’s overall tax outcome will depend on his marginal rate and how long he holds the property, but in a situation like this we would typically expect Michael to pay more tax overall as a result of these changes compared with the current rules. Practical issues While it isn’t time to panic, a review of your investment portfolio is essential. Existing assets bought before Budget night will typically receive more favourable tax treatment compared with newer assets, but the overall impact of the proposed changes will vary depending on your situation. Discretionary trusts – changes to apply from 1 July 2028 The introduction of a 30% minimum tax rate on the taxable income of discretionary trusts would represent a fundamental change to the way the tax system operates at the moment. The Government is indicating that the 30% tax would initially be paid by the trustee, with beneficiaries (other than companies) receiving a non-refundable tax credit for the tax paid at the trust level. This measure is aimed at curbing income splitting to lower-taxed family members and corporate beneficiaries (often known as bucket companies). Some exemptions would apply, including for fixed and widely held trusts, superannuation funds, special disability trusts, deceased estates, charitable trusts, primary production income and some other specific trust types. While the Government has indicated that existing discretionary testamentary trusts would be exempt from these changes, concerns have been raised about the application of the changes to testamentary trusts that come into existence after Budget night. However, reports in the media suggest that the Government is open to reconsidering this aspect of the changes, but we will have to wait and see how this plays out. To assist with transitions, three years of roll-over relief will be available for restructures into companies or fixed trusts. Example (adapted from Budget materials) Kurt operates his business through a discretionary trust and makes a profit of $300,000. Kurt pays himself a salary of $100,000 and distributes the remaining $200,000 to four family members who have no other income. In total, Kurt and his family members pay around $42,000 in tax on this income. If the 30% minimum tax rate rules are introduced then Kurt and his family members would pay around $86,000 in tax on this income. This is a significant increase in the total amount of tax paid on the same level of profit. In situations like this there might be scope to restructure the business into a company to potentially access a lower 25% tax rate or pay salary / wages to some family members who are genuinely working in the business. Practical issues Many business and investment structures will face higher effective tax rates under the proposed changes, although the Government is planning to undertake a consultation process to refine the rules. It is possible that the final version of the rules will look a bit different to the proposals announced in the Budget. While the start date for this measure isn’t until 1 July 2028, now is the time to start modelling scenarios and comparing the pros and cons of other options. In some cases the overall impact of the changes might be minimal and no material changes will be required. In some cases it might still make sense to continue utilising discretionary trust structures, but with some alternative distribution strategies in place. In other cases it will make sense to explore whether a restructure might provide better long-term outcomes. Other measures worth noting $250 Working Australians Tax Offset (from 2027–28) – increases the effective tax-free threshold for wage earners and sole traders. $1,000 standard deduction for work-related expenses (from 2026–27) – simplifies tax time for many employees. Small business measures – a permanent $20,000 instant asset write-off for plant and equipment. What to do next The proposed reforms are significant, but the practical impact will depend on your situation. While we are still waiting to see how this all plays out, if you have concerns in the meantime feel free to contact Collins Hume on 02 6686 3000. We can review your situation, run tailored projections and help you make informed decisions. We will also keep you up to date as further details emerge and legislation progresses.

Having too much choice If your business is reliant on carrying inventory of any kind, please read on for high value insights applicable to businesses of any size and scale. When business owners talk about cash flow pressure, the usual suspects come up: slow-paying debtors, rising costs or seasonal dips in revenue. But one of the quietest cash killers rarely gets a mention. Stock complexity. Not poor buying decisions. Not bad forecasting. Just too many options. The Breakdown – When “More Choice” Starts Costing You One product: 5 colours x 10 brands x 10 sizes = 500 variations of the same item. Each variation is a separate Stock Keeping Unit (SKU) – a unique version of a product you need to buy, store, track and sell. Even if you only hold one of each, your cash is now spread across 500 separate decisions. Multiply that across your full product range and the impact compounds quickly. Shelves fill up. Warehouses expand. Showrooms get cluttered. And your cash? It gets trapped – quietly, consistently and, often, invisibly. How Cash Leak Happens (Without You Noticing) This isn’t usually a deliberate strategy. It creeps in over time: “Customers want more choice” “Let’s add another supplier” “We should stock that just in case” Each decision makes sense in isolation. But together, they create complexity that your cash flow has to fund. If your margins aren’t strong enough to support that complexity, your business starts leaking cash every day without showing up clearly in your profit and loss statement (P&L). What the Best Operators Do Differently Some of the most effective businesses don’t win by offering more. They win by simplifying. ALDI ALDI runs with a deliberately limited product range of around 1,500 core items compared to 20,000 - 30,000 in a typical supermarket. Fewer Stock Keeping Units (SKUs) means: Less inventory sitting in warehouses Faster stock turnover Stronger buying power with suppliers Simpler operations The result is a model built on speed: stock moves quickly and cash comes back just as fast. Grill'd Burgers Grill’d keeps its menu tight and controlled compared to many hospitality operators that continually expand their offerings. Rather than adding endless variations, it focuses on a defined core range, allowing: Better control over ingredients and suppliers Reduced waste and spoilage More predictable stock levels Consistent margins across locations That operational simplicity supports stronger cash flow without compromising the customer experience. The Pattern Is Always the Same Across industries, the result repeats. Less complexity leads to: Faster stock turnover Lower holding costs Stronger cash flow Clearer decision-making More complexity does the opposite. And the key point for business owners? Cash flow doesn’t improve just because you’re selling more. It improves when your stock moves faster and your capital isn’t tied up unnecessarily. Why Preventing Cash Leak Matters Right Now In today’s environment, cash flow is under pressure from every angle – costs, wages, supply chains and financing. That makes working capital one of the most powerful levers available to business owners. Stock is often the biggest and most overlooked part of that equation. How to Gain Control If you’re reviewing your cash flow position, ask: Which products actually drive profit, not just revenue? Where is stock sitting too long? Which variations add complexity without adding margin? Are you funding choice that your customers don’t truly value? These questions often reveal opportunities that don’t require more sales, just better structure. Sometimes Growth Isn’t About Adding More It’s about simplifying what you already have. If this is resonating, it’s worth stepping back and looking at how your stock is impacting your cash position. The team at Strategy360 By Collins Hume works with business owners to analyse stock at a granular level, identify where complexity isn’t paying its way, and design simpler, more profitable models that improve cash flow without hurting sales. Start the conversation with us https://www.collinshume.com/strategy360. STRATEGY360° Inspiring, Powerful, Meaningful Advice for Your Business

Team Fundraiser: The ASICS Gold Coast Marathon 2026 Collins Hume Accountants Kaleb Morhaus and Sam Gardnir take on the 2026 ASICS Gold Coast Marathon to support an incredible cause — Beyond Blue. On 4-5 July 2026 they’ll join more than 40,000 runners from around the world at Australia’s premier road running event, tackling one of the country’s most iconic flat and fast marathon courses along the stunning Gold Coast coastline. But this run is about far more than finish lines and personal bests. They’re running to help Beyond Blue continue providing free 24/7 mental health support to Australians doing it tough. Right now:
 More than 3 million Australians live with anxiety
 More than 1 million experience depression
 On average, nine Australians die by suicide every day Every call to the Beyond Blue Support Service matters — and it costs around $66 to answer each one. That means every donation genuinely helps ensure someone in crisis can reach a trained counsellor when they need support most. If you can, please support Kaleb and Sam with a donation — big or small — and help them make every kilometre count for mental health. Together, let's help ensure no call for help goes unanswered. Please support Kaleb and Sam with a donation and help them make every kilometre count for mental health. Beyond Blue has spent 25 years working alongside Australians to improve mental health awareness, reduce stigma and help prevent suicide. The demand for support continues to grow, and fundraising efforts like this directly help keep the service available to anyone who needs it. Read more at https://www.beyondblue.org.au The ASICS Gold Coast Marathon is now in its 46th year and is recognised internationally as one of the world’s leading road running events, famous for its fast, scenic course and incredible atmosphere. Collins Hume’s broader community focus extends beyond sponsorships through ongoing support of regional initiatives, local organisations and impact-driven programs that help strengthen communities. Read more at collinshume.com/impact

For many owners, transitioning out of a business does not begin with a neatly mapped-out plan. It begins with a moment. Sometimes it is burnout. Sometimes it is a health issue, a change in family circumstances or a falling out between business partners. Sometimes it is an unexpected offer that arrives before you feel ready. What looks like a sudden decision to sell is often the result of years of putting the question off while staying buried in the day-to-day. Our catalogue of succession and exit planning articles make the same point from different angles: the best business transitions are rarely rushed, and the strongest outcomes usually come from planning well before a sale, transfer or succession event is forced on you. That is why waiting for the “perfect time” can be risky. When owners delay the conversation, they also delay the work that actually improves outcomes: understanding what the business is worth, reducing reliance on the founder, strengthening systems, improving profitability, tightening risk management and getting clear on what life after ownership should look like. Transition planning is not simply about leaving a business. It is about maximising value, protecting financial security and ensuring a smoother transition for customers, staff and family. Read more » A lot of owners assume business transition planning only matters when they are ready to sell. In reality, that is exactly when some of the best options may already be narrowing. Starting early gives you choices It gives you time to lift business value, address weak points and decide what kind of transition actually suits you. That might mean a third-party sale. It might mean a staged handover to management. It might mean passing the business to family. But each path requires different preparation, and none of them should be left to chance. We consistently stress defining personal and business goals first, then assessing value, enhancing value and weighing the right options for your transition. For owners thinking about family succession, the emotional pull can be strong, but sentiment alone is not a strategy. Keeping a business in the family can be deeply rewarding, yet it only works when willingness and capability are both present. The next generation may want the opportunity, but wanting the business is not the same as being ready to run it. Equally, parents may assume their children will step in, only to discover they want a different future altogether. That is why generational succession needs the same rigour as an external sale, with clear agreements around control, capital, remuneration, timeframes and expectations. Read more » Then there is the question nearly every owner asks at some point: What is my business actually worth? That number matters, but not just because it shapes a sale price. It also tells you how exposed the business may be to risk, how heavily it depends on you and where the biggest value gaps sit. The four recurring drivers of business value: 1. sustainable growth 2. capacity for scale 3. profitability and return on investment, and 4. risk management. Businesses that can show reliable revenue, strong systems, documented processes and less owner dependency are generally better positioned when the time comes to transition. Read more » And value is only one part of the equation. Structure matters too. A business may attract a buyer, but the terms of the deal can still shape whether the outcome is successful. That is especially true when arrangements such as staged transitions or performance-based payments come into play. Much of our writing on the topic of exit planning points to the importance of understanding the path forward early, identifying gaps and putting a practical plan in place while you still have control over the process. Read more » The real worry is not if a business transition will trigger. It is that it will happen before you are ready. Business owners often think they still have time, until something shifts and the decision is no longer theoretical. The partnership tension that has been simmering for years finally breaks. The energy to keep pushing fades. Family priorities change. A health issue makes the long hours harder to carry. Or a serious buyer appears and wants answers you have not yet prepared. In those moments, clarity becomes incredibly valuable. That clarity usually starts with a few simple but powerful questions. What is the business worth today? How dependent is it on you? What would make it more attractive to a buyer or successor? Who could realistically take it forward? What do you want your life to look like after the transition? They are not small questions, but they are far easier to answer while you still have room to move. The strongest business transitions are not orchestrated in a hurry. They are shaped over time, with honest conversations, careful planning and a willingness to look at the business from the outside in. Whether your future involves a sale, a family handover or simply the desire to build a more valuable and resilient business, starting the discussion early can make all the difference. Planning ahead is not about locking yourself into one path. It is about making sure that when the trigger comes, you are responding from a position of strength, not pressure. If exit, succession or transition is somewhere on your radar, now is the time to start the conversation. A confidential discussion today can help you understand your current position, clarify your options and begin building a pathway that works for your business and your future. Inspiring, Powerful, Meaningful Advice for Your Business

Collins Hume Proud to Support Love Lennox Festival for Second Year Running Collins Hume is proud to announce its continued support of the Love Lennox Festival as a Bronze Sponsor for 2026, marking the second consecutive year the firm has backed the much-loved community event. Returning to the shores of Seven Mile Beach on Saturday 13 June 2026, the Love Lennox Festival celebrates the unique culture, creativity and coastal lifestyle of Lennox Head through live music, local food, market stalls, family activities, surf culture, art and community connection. Practice Manager Naomi Monk said the sponsorship reflects Collins Hume's ongoing commitment to supporting initiatives that strengthen local communities and regional business networks. “Love Lennox captures so much of what makes this region special — community spirit, local business, creativity and connection,” Naomi said. “We’re proud to support the festival again this year and help contribute to an event that brings people together while showcasing the incredible businesses, artists and organisations that make Lennox Head such a vibrant place to live and visit.” The festival, organised by Business Lennox Head, is expected to once again attract strong community participation and visitor numbers, with the main street transformed into a vibrant festival precinct featuring entertainment, food experiences, family attractions and community activities. Collins Hume’s broader community focus extends beyond sponsorships through ongoing support of regional initiatives, local organisations and impact-driven programs that help strengthen communities across the Northern Rivers. Read more at https://www.collinshume.com/impact Save the date for Love Lennox 2026 and visit the festival website to learn more about the event and how to get involved https://www.lovelennox.com.au.