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

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

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

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

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

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

Introducing Borro Borro is an award-winning brokerage specialising in Home Loans, Commercial Lending, SMSF Lending and Asset Finance. They work closely with families, professionals and business owners across Australia to structure lending that supports long-term wealth creation, not just short-term transactions. With an active presence in New South Wales, Victoria and Queensland, Borro now assists Collins Hume clients to ensure lending strategies align with broader tax, asset protection and investment objectives. Borro's philosophy is simple. Finance should be strategic, proactive and regularly reviewed. Borro acts as a long-term lending partner. That means structuring facilities correctly from day one, negotiating with lenders on clients’ behalf, and continually reviewing arrangements to ensure they remain competitive and aligned to evolving financial goals. Access to lenders is expected. Strategy, structure and ongoing advocacy are what set Borro apart. Meet Cara Giovinazzo Cara Giovinazzo is the Founder and Managing Director of Borro. With more than 15 years’ experience across Home Loans, Commercial Lending and SMSF Lending, she has built Borro into a recognised and awarded brokerage. Cara has extensive expertise in Residential, Commercial and SMSF Lending structures, working closely with accountants and financial advisers to ensure facilities are aligned with tax strategy, asset protection and long-term wealth objectives. Under her leadership, Borro has received significant industry recognition, including the MFAA Finance Broker Business Award and National finalist placements for Customer Service and Brokerage excellence just last year alone. Despite this growth, Cara remains actively involved in client strategy and professional collaboration, maintaining the high-touch, strategic approach Borro is known for. Borro's Areas of Expertise Home Loans Purchases, refinances, bridging and portfolio expansion structured with long-term flexibility and tax effectiveness in mind. Commercial Lending Commercial property acquisitions, development funding and business facilities aligned with growth objectives. SMSF Lending Specialist lending solutions for Self-Managed Super Funds, including Residential and Commercial property acquisitions structured in collaboration with accountants and advisers. Asset Finance Vehicle and equipment funding for business and personal use, structured to suit cash flow and accounting considerations. Refinancing and Strategic Reviews Ongoing assessment of lending facilities to ensure competitiveness and appropriate structure as market conditions evolve. Lending in the Current Environment Interest rates, credit policy and servicing models continue to evolve. In this environment, loan structure is as important as rate. Many borrowers remain on facilities that no longer suit their circumstances. Others may have opportunities to optimise their lending position through restructuring or review. Borro's role is to provide clarity by assessing lending holistically, considering income structure, entity arrangements, SMSF considerations, future investment plans and long-term objectives. For clients of Collins Hume, Borro welcomes a collaborative discussion to ensure your lending decisions align with broader tax, superannuation and financial planning strategies.

Against a backdrop of cost-of-living pressures and economic uncertainty, not-for-profits (NFPs) are operating in an increasingly complex environment. Funding pathways are under strain, compliance expectations are rising and operating costs continue to climb. While these pressures are real, they also present an opportunity for organisations to strengthen governance, rethink collaboration and build long-term financial resilience. Key considerations NFPs are navigating rising costs, funding uncertainty and higher public expectations, prompting a rethink of financial models, governance and internal capability Sector-wide insights highlight the importance of diversified income, stronger financial oversight and smarter use of tools such as cost analysis, scenario planning and technology A mission-led approach to financial planning – investing in people, systems and innovation – is critical to delivering sustainable impact. Insights from the recently released Not-for-Profit Sector Development Blueprint  underscore the scale of change facing the sector. The Blueprint outlines structural and regulatory shifts and sets out a vision for building capability and sustainability. What matters most, however, is how individual organisations respond through purposeful decisions about funding diversity, workforce strategy and financial systems that enable agility without losing sight of mission. Creating an environment where NFPs can thrive Regulatory and operational settings play a critical role in long-term financial health. Recent developments, including income tax exemption reporting for non-charitable NFPs  and proposed liquidity and financial management reforms in aged care, reflect a broader push for transparency and accountability. When approached strategically, compliance and reporting can become powerful tools to demonstrate impact, build trust and engage stakeholders. Many of the challenges highlighted in sector commentary – cost recovery, fair indexation and contract design – are not simply operational issues. They go to the heart of sustainability. Strengthening financial foundations often means actively diversifying income through a mix of grants, philanthropy, social enterprise, corporate partnerships and long-term giving strategies. Reviewing commercial activities through a mission-aligned lens, and making full use of available tax concessions, is equally important. Strong governance and forward planning underpin NFP efforts. A clear understanding of cost structures and pricing enables better decisions about service viability and impact. Tools such as cost allocation models, scenario analysis and investment planning give boards and executives greater confidence to act early, adapt quickly and maintain focus on outcomes. Building internal capability for sustainable impact Financial sustainability is closely linked to internal capability. Investment in governance, financial management and technology, particularly in payroll, automation and reporting, can significantly reduce administrative burden and free teams to focus on service delivery. Many NFPs are also streamlining operations, renegotiating supplier arrangements and exploring shared services to manage rising costs more effectively. Just as important is maintaining a people-led, purpose-driven culture. Mission drift can occur when short-term funding pressures or poorly aligned contracts push organisations into reactive decision-making. Strong governance helps keep purpose front and centre, supporting accountability to communities, funders and other stakeholders. Engaging boards, staff, volunteers and communities in shaping strategy strengthens relevance and trust. A skilled, supported workforce backed by appropriate systems, technology and capital investment is essential. Reviewing payroll processes, strengthening attraction and retention strategies and designing roles that align individual aspirations with organisational goals all contribute to long-term sustainability. Fostering an adaptive and resilient NFP sector With the operating environment continuing to evolve, resilience depends on adaptability. Expanding income streams through innovation in social enterprise, corporate engagement or philanthropy can help smooth funding volatility and future-proof operations. Rethinking how resources are used – from shared assets to technology-enabled service delivery – can also unlock efficiencies. Automation and emerging technologies, including AI, are increasingly being used to reduce manual work in finance and payroll, improve reporting and support better decision-making. This allows teams to spend more time on mission-critical activities. True resilience is not just about surviving change, but being prepared for it. Solid risk frameworks, adaptable strategies and a culture of continuous improvement position organisations to learn, evolve and thrive. Where to from here? Achieving financial sustainability today requires a proactive, mission-aligned approach to planning, funding and delivery. Understanding your cost base, strengthening governance, supporting your workforce and embracing smarter ways of operating are all part of the equation. If your NFP organisation is reassessing funding models, navigating regulatory change or exploring how technology can reduce pressure on your team, specialist NFP advisory support can make a meaningful difference. From financial modelling and payroll assurance to governance, systems and strategic reviews, the right advice helps NFPs build resilience and stay focused on impact, even during uncertain times. Collins Hume’s Not-for-Profit Advisory Services Collins Hume provides practical, sector-focused advisory services to help not-for-profits strengthen governance, improve financial sustainability and build organisational capability. Working closely with boards and leadership teams, we support strategy, risk and performance through tailored planning, financial modelling and governance support. Our collaborative, impact-driven approach helps NFPs navigate complexity, make confident decisions and deliver sustainable outcomes for the communities we serve. Take our NFP Risk Survey now and start making more informed, confident decisions for your NFP organisation’s future at https://www.collinshume.com/nfp  or contact Nathan McGrath on 02 6686 3000. Practical Strategies for NFP Growth, Governance and Sustainability Further reading Australian Taxation Office. (n.d.). NFP self-review return reporting requirement . https://www.ato.gov.au/businesses-and-organisations/not-for-profit-organisations/statements-and-returns/nfp-self-review-return-reporting-requirement Department of Social Services. (November 2024). Not-for-Profit Sector Development Blueprint.   https://www.dss.gov.au/panels-and-other-groups/resource/not-profit-sector-development-blueprint Grant Thornton Australia. (May 2025). Navigating financial sustainability in a complex not-for-profit landscape . Grant Thornton Insights. https://www.grantthornton.com.au/insights/blogs/navigating-financial-sustainability-in-a-complex-not-for-profit-landscape/

Aged Care Update by Shane Hayes at Family Aged Care Advocates We are now 4 months into the Government’s new (improved?) aged care reforms. There are opinions and numbers flying every which way.  I thought I’d try to collate where things are at with aged care here in Australia.  So here goes … Home care About 290,000 people are currently in receipt of a home care package … AND … 835,000 people are in receipt of Commonwealth Home Support Programme (CHSP) services Currently around 350,000 people are waiting for some help at home Wait times from initial My Aged Care Call to assessment to actually receiving funds / getting any help at home is around 12 + months 4,800 people have died in hospital (2024/2025) waiting for help in their home … CHSP far larger program than home care packages – not part of the recent aged care reforms There are over 1,000 home care providers to choose from Currently just over $15,000 per person in unspent home care package funds Fees paid to providers has decreased from around 30 to 35% … to 10% as part of the recent aged care reforms Hourly service rates have increased to compensate Cleaning, allied health, transport, home maintenance and social support are the top 5 home care services provided / wanted by people Average client hours per week is 5 to 6 hours Medium-sized (1,000 to 2,500 clients) home care providers are the most profitable. Residential care About 200,000 people in residential care now – demand will double over next 20 years About 740 residential care providers in Australia – all at almost full occupancy 1 in 2 providers are operating at a loss – especially those facilities under 120 beds Recent aged care changes designed to improve provider financials by increasing resident paid fees and room prices Average residential care room prices approx. ¾ the median house price Need 10,000 new beds per year over the next 20 years to meet demand … that’s 1 x 100 bed facility every 3 to 4 days (currently 1,000 new beds a year are actually being built). A concluding statement from me Many people simply don’t want to think … or talk about getting older and maybe needing some help. But if / when you need things to move fast … the aged care system moves slow and that can be a real problem. But there are things you can easily do now … just in case. How can Family Aged Care Advocates help you Family Aged Care Advocates can help you with the thinking and start the conversation.  Give us a call on 0411 264 002 or email Shane Hayes to organise a day and time for a discussion … at your home. Caring personally and challenging directly … it’s ALL about YOU

The impact of COVID-19 has been felt very differently from region to region. Fortunes vary wildly between business operators subject to ongoing lockdowns and trading impediments to those benefiting from the "new normal". For those severely impacted by COVID-19, JobKeeper might be available. The third and final phase of JobKeeper started on 4 January and runs through until 28 March 2021. To receive JobKeeper, employers need to have experienced a sufficient downturn (a 30% threshold applies to most entities) in their actual GST turnover in the December 2020 quarter compared to the same period in 2019 – although alternative tests exist. The payment rate for employers is $1,000 per fortnight per employee or business participant who worked 80 hours or more over a specific 28 day period, or $650 per fortnight per employee or business participant for those who worked less than 80 hours in the relevant period – a reduction from previous JobKeeper payment periods. Assessing eligibility, managing the decline in turnover test, calculating GST turnover for the decline in turnover test, and managing the 80 working hours requirement for the differential payment rates can all be complex. We've outlined a few of the key issues for employers in need of relief: My business did not previously qualify for JobKeeper. Can I access it now? Your business can potentially access JobKeeper for the period between 4 January 2021 and 28 March 2021 even if it didn't qualify for JobKeeper for the period between 28 September 2020 and 3 January 2021 or for the original JobKeeper scheme period that ended on 27 September 2020. The fact that you have not previously enrolled in JobKeeper or met the eligibility conditions prior to the start of the latest phase of the JobKeeper scheme should not prevent you from accessing JobKeeper from 4 January 2021. For example, if you could not pass the decline in turnover test for the September 2020 quarter this does not automatically prevent you from being able to access JobKeeper for the period between 4 January 2021 and 28 March 2021 as long as your business can pass the decline in turnover test for the December 2020 quarter. We have been in JobKeeper previously. Do my employees need to complete a new nomination form for JobKeeper from 4 January 2021? Employees should not need to provide you with a new enrolment form if they have previously provided a valid nomination to you. You should ensure that you have a copy of the original form on file and a copy of the notification that you sent to the employee confirming that their details were provided to the ATO and advising them of the payment rate that applies to them. What's included in GST Turnover for the decline in turnover test? To access JobKeeper, employers need to satisfy a decline in turnover test. The decline in turnover test for JobKeeper from 4 January 2021 compares actual GST turnover in the December 2020 quarter (October 2020, November 2020 and December 2020) to the same period in 2019 (alternative tests are available in some instances where this comparison is not appropriate). Understandably, we're receiving lots of questions about what is included in GST turnover and how it is calculated. In general, if your business is registered for GST you must use the same method that is used for GST reporting purposes. For example, if your business is registered for GST on a cash basis then a cash basis needs to be used to calculate current GST turnover for the purpose of the JobKeeper decline in turnover test for the December 2020 quarter. Your GST turnover includes proceeds from the sale of capital assets, such as property, equipment or licenses, unless the sale is input taxed. Current GST turnover includes taxable and GST-free supplies, but should exclude input taxed supplies such as residential rental income and financial supplies like dividends, interest etc. JobKeeper and ATO cash flow boost payments should be excluded from the calculation along with other payments that don't represent consideration for a supply made by the business such as certain State based grants. If your business has received payments in advance, then you will normally need to recognise these payments as part of the GST turnover calculation, even if the goods or services have not been provided to the customer yet. For example, if your business accounts for GST on a cash basis then you need to recognise the payment for GST purposes as it is received and include it in your GST turnover calculation, even if the services haven't been provided. There are some special rules where security deposits apply to defer the GST liability but these rules are reasonably limited in their application. And, if your business is part of a GST group, each entity needs to calculate its GST turnover as if it were not part of the group. That is, supplies made by another group member should not be included in GST turnover for the purposes of the decline in turnover test. When I stood down my employees, they started working for someone else to get by. Can they still receive JobKeeper? To access JobKeeper, employees need to have been either full-time, part-time or long terms casuals of your business on either 1 March 2020 or 1 July 2020. If the employment relationship remains intact (their employment has not been terminated and they haven't accessed JobKeeper from another business), then the fact that the employee is performing some work for another entity doesn't necessarily prevent ongoing access to JobKeeper with you, their original employer. Of course, the employee can only receive JobKeeper from one employer and there are a number of eligibility conditions that need to be satisfied.

Super Retail Group - owner of the Supercheap Auto, Rebel, BCF and Macpac brands - handed back $1.7 million in JobKeeper payments in January after releasing a trading update showing sales growth of 23% to December 2020. Toyota announced that it will return $18 million in JobKeeper payments after a record fourth quarter. And, Domino's Pizza has also handed back $792,000 of JobKeeper payments. Toyota, Super Retail Group, and Domino's were not obliged to hand back JobKeeper. Under the rules at the time, the companies qualified to access the payment. However, Toyota CEO Matthew Callachor said, "Like most businesses, Toyota faced an extremely uncertain future when the COVID-19 health crisis developed into an economic crisis …We claimed JobKeeper payments to help support the job security of almost 1,400 Toyota employees around Australia ….In the end, we were very fortunate to weather the storm better than most, so our management and board decided that returning JobKeeper payments was the right thing to do as a responsible corporate citizen." Domino's Group CEO and Managing Director, Don Meij said, "We appreciate the availability and support of JobKeeper during a period of significant uncertainty. That period has passed, the assistance package has served its purpose, and we return it to Australian taxpayers with our thanks." Companies that received JobKeeper and subsequently paid dividends to shareholders and executive bonuses have come under particular scrutiny, not just by the regulators but by public opinion. The first phase of JobKeeper did not require business to prove that they had actually suffered a downturn in revenue, just have evidence turnover was likely to drop in a particular month or quarter. For many businesses, early trends indicated that the pandemic would have a devastating impact on revenue. Many also took action and prevented the trend entrenching by actioning plans to protect their workforce and revenue. The fact that business improved, does not impact on initial JobKeeper eligibility. In the first phase of JobKeeper, employers were not obliged to stop JobKeeper payments if trends improved. Speaking at the Senate Select Committee on COVID-19, ATO Deputy Commissioner Jeremey Hirschhorn stated that the ATO rejected some $180 million in JobKeeper claims pre-issuance. Approximately, $340 million in overpayments have been identified. Of these, $50 million were honest mistakes and will not be clawed back where the payment had been passed on to the employee. Where the ATO determines that JobKeeper overpayments need to be repaid, they will contact you and let you know the amount and how the repayment should be made. Administrative penalties generally will not apply unless there is evidence of a deliberate attempt to manipulate the circumstances to gain the payment.

A recent article published in the Harvard Business Review by Bain & Co suggests that the pandemic has widened the productivity gap between top-performing companies. The article stated, "Some have remained remarkably productive during the Covid-era, capitalising on the latest technology to collaborate effectively and efficiently. Most, however, are less productive now than they were 12 months ago. The key difference between the best and the rest is how successful they were at managing the scarce time, talent, and energy of their workforces before Covid-19." Atlassian data scientists also crunched the numbers on the intensity and length of work days of software users during the pandemic. The results found that workdays were longer with a general inability to separate work and home life, and workers were working longer hours (predominantly because during lockdowns, there is no set start and end of the workday routine). Interestingly, the average length of a day for Australian workers is shorter than our international peers by up to an hour pre pandemic. Australia's average working day is around 6.8 active hours whereas the US is close to 7.2. However, working longer does not mean working more productively. Atlassian's research shows that while the length of the working day increased and the intensity of work increased earlier and later in the day, intensity during "normal" hours generally decreased. So, how do we measure productivity? Bain & Co suggests: The best companies have minimised wasted time and kept employees focused; the rest have not. Those that were able to collaborate effectively with team members and customers pre pandemic fared the best. Poor collaboration and inefficient work practices reduce productivity. The best have capitalised on changing work patterns to access difference-making talent (they acquire, develop, team, and lead scarce, difference-making talent). The best have found ways to engage and inspire their employees. Research shows an engaged employee is 45% more productive than one that is merely a satisfied worker. The productivity gap was always there. The pandemic merely brought the gap into stark contrast. Collins Hume Accountants and Business Advisers | Ballina & Byron Bay NSW | Ph 02 6686 3000