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

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

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

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

Helping Northern Rivers businesses turn uncertainty into action From rising costs and cash flow pressures to changing customer demand, Northern Rivers businesses have become accustomed to operating through uncertainty. Collins Hume Senior Business Advisor Nathan McGrath is helping local business owners move beyond short-term problem-solving to build stronger, more resilient and valuable businesses. Through a growing program of workshops and business events, Nathan is sharing practical strategies across cash flow, business valuation, benchmarking, business performance, grant writing, growth and transition planning. His work includes presenting for Business NSW’s Business of Doing Business series, designing Collins Hume’s Top Performer Benchmark Workshop and prior events with industry leader Mark Holton and philanthropic protagonist Paul Dunn. An upcoming cash flow webinar will continue this focus in August. Nathan brings more than 20 years of advisory and management experience across SMEs, corporations and government programs, including senior General Manager and Director roles. As Senior Business Advisor at Strategy360 By Collins Hume, Nathan works with owners and leadership teams to improve financial performance, reduce operational and strategic risk and build sustainable, transferable business value. His approach focuses on translating strategy and financial information into practical decisions. This includes identifying the real drivers of profitability, improving cash flow forecasting, testing if growth plans are financially sustainable or reducing business reliance on business owners. Nathan’s experience spans the Strategy, Growth & Transition and Money, Numbers & Funding streams of Business NSW’s program. It also informs Strategy360’s broader services across business performance, business valuations, succession, risk management, mentoring and Boad of Advice support. Previously he supported Northern NSW businesses through the Australian Government’s Entrepreneurs’ Programme and Strengthening Business initiative following major bushfires and floods. That experience reinforced the importance of understanding the numbers before a crisis occurs. For Northern Rivers businesses, the message is clear: resilience is not simply the ability to recover from the next disruption. Resilience is about competitive advantage, and it is built through better information, earlier decisions and a business that can perform without depending too heavily on one person, customer or revenue source. Nathan’s practical contribution to our region is helping more owners develop those capabilities before pressure forces their hand. Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you tailor a program to suit your requirements or read more here »

Revamping Your Mortgage: Solutions for Tough Economic Times Let’s face it, interest rates have risen, fuel has risen, groceries have risen — about the only thing that hasn’t gone up is your wage or business profit. Life is getting a little tight. We can’t fix that, but there are some simple things that we can do to help you with your loans – both home and business. Things that we could do: Refinance to a better rate – if you have had your loan for a couple of years you may be paying a loyalty tax (or as we often call it a 'lazy tax') to your lender. Time to stop and take the time to work with us to see if we can find a better deal for you. Refinance to a longer term – if you are 10 years into a 30 year loan, just by extending the term you can reduce your commitments – please note that if you do this, when times get better you need to increase your repayments so you don’t end up paying more for your loan. We can run you through how this works. Switching to interest only for a while (investment and business loans) – this would reduce your monthly repayments but, just like extending the term, you need to catch up later. Can you do it yourself? Sure can. But we work with over 100 lenders, many of which you may not have ever heard of or considered. And can you seriously be bothered trying to ask 10 lenders, let alone a 100? Trust us, it will do your head in after 5 calls. How much can you reduce your repayment? How long is a piece of string? To find out call David Seymour on 0418785747. Contact Lending Specialist David Seymour on 0418 785 747 at email david.seymour@regfin.com.au The above is general in nature and does not take into account your financial position, goals or objectives.

Why a professional property valuation could save investors at tax time A property valuation is not only useful when buying, selling or refinancing. It can also be essential for calculating capital gains tax and supporting the value reported to the Australian Taxation Office. With proposed changes to the capital gains tax treatment of investment property attracting attention, investors should ensure they have reliable evidence of their property’s market value at the relevant date. When might a valuation be required? A formal valuation may be important when: a property changes from a main residence to an investment property, or vice versa ownership is transferred between related parties or through an estate a property is transferred to or from a trust or superannuation fund its use changes or it is affected by a tax law change historical records are incomplete a market value is required to calculate a capital gain or loss. The correct valuation date depends on the circumstances and applicable tax rules, so advice should be obtained early. Why an online estimate may not be enough Automated estimates and bank valuations may indicate a property’s value, but they are not necessarily suitable for tax purposes. Bank valuations generally assess a lender’s financial risk rather than establish a defensible market value for capital gains tax. Commercial properties can be harder to assess because there may be fewer comparable sales, while lease terms, rental income, location, permitted use and property condition can all influence the result. An independent valuation from a qualified professional provides stronger evidence if the ATO reviews the reported value. Keep supporting evidence Investors should retain: signed and dated valuation reports valuer’s qualifications and engagement letter comparable sales information photographs of the property purchase and sale documents leases and rental statements records of improvements and capital expenditure. These records can be difficult to reconstruct years later, particularly if the property has changed or comparable sales data is no longer available. Do not chase the most favourable number A higher or lower valuation is not automatically better. The outcome depends on the property’s cost base, valuation date and applicable tax rules. The ATO can compare valuations with property databases, council information, state valuation records and previous tax returns. An unsupported valuation could result in additional tax, interest and penalties. The cost may be modest compared with the tax at stake Valuation fees vary according to the property’s type, value, location and complexity, with commercial and specialised properties generally costing more. However, where a substantial capital gain is involved, the cost may be small compared with the consequences of relying on an unsupported figure. Valuation expenses incurred for tax purposes may also be deductible, depending on the circumstances. Seek advice before commissioning a valuation Collins Hume can help you confirm: if a valuation is required the correct valuation date the appropriate valuation method the records you should retain how the value may affect your tax position. If you own residential or commercial investment property and are unsure if you need a valuation, contact Collins Hume on 02 6686 3000 before changing the property’s use or completing a transaction. Recommended reading For a more detailed examination of the proposed capital gains tax changes, valuation timing, costs and calculation methods, read Sam Tamblyn’s article, “How to protect your property gains from the CGT overhaul”, published in The Australian Financial Review on 5 August 2026. The print edition appeared under the headline “Tax changes mean investors need a property valuation”. Please note: the online article may be paywalled. This information is general in nature and does not constitute taxation or financial advice. Advice should be obtained for your individual circumstances.

New restrictions on limited recourse borrowing arrangements (LRBAs) will change how self-managed super funds (SMSFs) can invest in property. From 10 August 2026, SMSFs will generally only be able to use an LRBA to acquire business real property. New LRBAs can no longer be used to purchase standard residential investment properties. SMSF trustees considering a property purchase should review their plans and seek advice promptly. What is changing? An LRBA allows an SMSF to borrow to purchase an asset, with the lender’s rights generally limited to that asset if the loan defaults. Under the new rules, real property acquired through an LRBA must be used wholly and exclusively in carrying on a business. Standard houses and apartments leased to residential tenants will not qualify. The change applies to borrowing arrangements, not residential property itself. An SMSF may still purchase residential property outright using available fund cash, subject to the fund’s investment strategy and other superannuation rules. What happens to existing loans? Residential LRBAs entered into before 10 August 2026 will generally be protected and will not need to be unwound. An arrangement established before the commencement date may also qualify if settlement occurs later. However, trustees should not assume that preliminary negotiations, finance approval or an unsigned contract will be sufficient. Transactions approaching the deadline should be reviewed by an SMSF adviser and appropriately qualified legal professional. Can an SMSF still borrow for commercial property? LRBAs may continue to be used to acquire eligible business real property, including: offices and warehouses retail premises medical or consulting rooms qualifying primary production land other property used wholly and exclusively in a business. A business owner may be able to use their SMSF to purchase commercial premises and lease them to the operating business at market rates. However, property combining business and private use, vacant property without a business purpose, or premises retaining residential use may not qualify. Special considerations for primary production land Qualifying farmland may include a private residence, such as a homestead, without losing its business real property status if the residential area does not exceed two hectares and the property’s predominant use remains primary production. Each property and proposed transaction must still be assessed individually. What trustees should do now Before entering an LRBA, trustees should: confirm the property or asset qualifies review the fund’s investment strategy and cash flow allow time to arrange finance and legal documentation obtain accounting, financial and legal advice before committing. Incorrectly classifying a property or using the wrong structure can result in serious compliance consequences. Talk to Collins Hume before proceeding If your SMSF is considering purchasing property using borrowed funds, contact our team promptly. We can explain how the new rules affect your plans, review the proposed transaction and work with your legal, financial and lending advisers before any commitments are made. This information is general and does not take into account your objectives, financial situation or needs. Obtain professional accounting, financial and legal advice before acting.

New export support programs open global opportunities for NSW businesses NSW businesses considering their next phase of growth are being encouraged to explore a renewed suite of government programs designed to build export capability and connect businesses with international markets. The NSW Export Support Program 2026–27 provides assistance for businesses at different stages of the export journey, from assessing export readiness to finding overseas buyers, distributors and commercial partners. What support is available? The program includes: Export Capability Building Program Thirteen workshops will be delivered during 2026–27 to help businesses: assess their export readiness develop market entry strategies understand the practical requirements of exporting build the skills needed to pursue international opportunities. Communities of Practice for Exporters This new initiative will connect experienced exporters with businesses seeking to expand internationally. Industry-focused networks will cover agrifood, digital technology, and life sciences and healthcare. More than 100 businesses are expected to participate in peer learning, mentoring and market insight sessions. Going Global programs and trade missions More than 30 Going Global Export Programs and Going Global Trade Missions are planned for 2026–27. These initiatives will give eligible NSW businesses opportunities to attend international trade shows, meet prospective buyers and build connections in markets across Asia, India, North America, the United Kingdom, Europe and the Middle East. Target sectors include: agrifood digital technology life sciences and healthcare clean energy manufacturing mining equipment, technology and services. Going Global Export Programs are aimed at small and medium-sized businesses entering or diversifying into export markets, while the trade missions are intended for experienced and high-growth exporters pursuing further international expansion. Could exporting support your next growth phase? Exporting is not suitable for every business, but it should not be dismissed as an option reserved for large companies. For an established business with a proven product or service, the right capacity and a clearly defined market, exporting may provide access to new customers and revenue streams while reducing reliance on one domestic market. Before proceeding, businesses should carefully assess their financial capacity, operational readiness, intellectual property, supply arrangements, pricing, tax obligations and the risks associated with their target market. The renewed support programs provide a useful prompt for business owners to consider if exporting could form part of their longer-term growth strategy — and practical assistance for those already preparing to take that step. Considering export growth? If you are exploring new markets or considering exporting as part of your next growth phase, speak with our Strategy360 team. We can help you assess your business readiness, financial capacity and growth plans before you commit resources to an overseas expansion strategy. Learn more about the programs and upcoming opportunities through Export from NSW » Source: NSW Government. Eligibility requirements and program availability apply.

From 1996 starter to Partner in 2005: a career built on commitment and growth A Fellow of CPA Australia and CEO and Partner at Collins Hume, Christopher Atkinson is a practical, action-oriented leader who works closely with business owners to navigate complexity and make confident decisions. Drawing on his background in endurance racing and adventure sports, Chris brings a disciplined, adaptable mindset to business – focused on clear strategy, measured risk and consistent execution. Chris acts as a trusted advisor to clients and our team, providing a sounding board for opportunities and challenges while simplifying the path forward. His leadership style is grounded in clear communication, accountability and leading from the front, working alongside his team to deliver outcomes rather than directing from a distance. Chris has played a key role in modernising Collins Hume, expanding services, strengthening small business advisory capability and embedding technology to improve both client experience and team performance. His focus remains firmly on helping business owners build stronger, more sustainable businesses while contributing to their communities. Chris is also deeply committed to community impact In 2024, Chris participated in the Stars of Ballina Dance for Cancer raising funds and awareness for cancer research – an initiative closely aligned with both his own values and Collins Hume’s broader commitment to giving back. He was also named Outstanding Business Leader (21+ employees) at the Ballina Business Awards that same year. Most recently, Chris shared his expertise as a panellist at Elston’s Ascent 2026 conference and as a Shark Tank-style judge at the AI x Design Thinking Challenge 2026. Through these roles, he has lent his business insights and practical acumen to financial industry colleagues, entrepreneurs and creative thinkers, supporting innovation, professional development and positive outcomes for the wider community.

Discover what your debtor days are really worth As many businesses settle into the new financial year, it's a good time to revisit one of the most overlooked drivers of cash flow: debtors. Most business owners know what a debtor is. Far fewer know how to correctly calculate Debtor Days or understand what improving this KPI by just one day could mean for their business. Here's a real example: A business improved its Debtor Days by just one day and released approximately $45,000 in additional cash. A two-day improvement unlocked almost $90,000. Sales didn't increase. Margins didn't improve. The business simply gained faster access to money it had already earned. It's a reminder that cash flow pressure isn't always caused by declining sales or rising costs. Quite often, the opportunity sits within working capital. Debtors are just one of several working capital levers that can have a significant impact on cash availability and financial resilience. A simple question worth asking is: Do you know what one day of your debtors is worth in cash? Throughout August, we'll be sharing practical insights into the key working capital levers that influence cash flow and business performance. FREE WEBINAR | 25 AUGUST Practical Cash Flow for Business Owners If this is an area you'd like to better understand, we'd love you to join us at our Practical Cash Flow for Business Owners webinar in August, where we'll explore practical strategies to improve cash flow without necessarily increasing sales. Sometimes, the biggest opportunity isn't earning more – it's getting access to the cash you've already earned. Understand where your cash is going and identify practical ways to strengthen cash flow.

Your Financial Performance – Business Benchmarking Many business owners focus on growing sales, but few know how their business compares with others in their industry. At Strategy360 By Collins Hume, we use Top Performer Benchmarking to compare your business against both the industry average and the top 20% of businesses in your sector. The gap between the two often reveals practical opportunities to improve profitability, cash flow and business performance. Why average isn't enough Most benchmarking compares businesses against industry averages. The problem? Average doesn't always mean successful. Many businesses are simply getting by. Comparing yourself with the average shows where the middle of the market sits. Comparing yourself with the top 20% shows what's genuinely possible. Hidden profit opportunities Benchmarking isn't about producing another report; it's about uncovering opportunities. A business may already be profitable, yet benchmarking can reveal that margins, labour costs, pricing, inventory or overheads are limiting performance. Often, improving just one area can increase profit without increasing sales, hiring more staff or working longer hours. The numbers that matter High-performing businesses monitor the metrics that drive results, including: Gross profit margins Cost of goods sold Labour efficiency Operating expenses Cash flow Productivity Industry-specific KPIs As the saying goes, what you can measure, you can manage. Better decisions backed by data Business owners regularly ask: Why isn't my business as profitable as it could be? How do the best businesses achieve stronger results? Which area should I improve first? Where will changes have the biggest impact? Benchmarking replaces guesswork with objective financial data, helping you identify where your greatest opportunities lie. Turning insights into action Benchmarking identifies opportunities. The next step is taking action. Small improvements across several areas can have a significant impact on profitability. How Strategy360 helps Strategy360 By Collins Hume compares your business with both the industry average and the top 20% of performers, helping you identify practical ways to improve profit, cash flow and long-term business performance. Instead of relying on assumptions, you gain measurable insights to help prioritise the actions that will deliver the greatest return. Still relying on instinct instead of benchmarks? It's not too late to take action. Benchmarking gives you an objective view of how your business compares with industry leaders, helping you identify opportunities to improve profit, cash flow and business value. The greatest insights often come from the gap between the industry average and the top performers. What levels of performance are actually achievable? What decisions are the best businesses making? What actions are they taking differently? Take the first step towards stronger business performance with a quick recap of our recent Top Performer Benchmark program or call Nathan McGrath on 02 6686 3000. — Adapted and expanded by Collins Hume from How Benchmarking Reveals Hidden Profit Opportunities (ESS AccountantsMinute, Issue 459, 22 June 2026)