Free Business Webinar: Practical Cash Flow for Business Owners Understand where your cash is going and identify practical ways to strengthen cash flow. Cash flow pressure is affecting businesses of every size. Rising operating costs, increasing wages, higher material costs and ongoing interest rate pressure mean that generating a profit is no longer enough. This practical webinar will help business owners understand the key drivers of cash flow and identify where small improvements can have a significant impact. EVENT DETAILS — BOOK NOW Tuesday 25 August 2026 12:00 pm – 12:45 pm Free Webinar conducted online by Nathan McGrath, Senior Business Adviser at Strategy360 by Collins Hume WHY ATTEND? Our observations across many businesses include: ✓ Profit doesn't always equal cash ✓ Working capital often has a greater impact than expected ✓ Small operational improvements can significantly strengthen cash flow ✓ Better visibility supports better business decisions ✓ Understanding the drivers of cash flow creates greater confidence. WHAT WE'LL EXPLORE Why profitable businesses can still experience cash flow pressure The relationship between profit, working capital and cash flow The key drivers influencing cash flow performance Practical opportunities to improve cash flow WHO SHOULD ATTEND? ✓ Business Owners ✓ Directors, executives, business leaders ✓ Managers responsible for business performance WHAT YOU'LL TAKE AWAY ✓ Greater visibility of cash flow performance ✓ A clearer understanding of why profit is not equal to cash ✓ Practical ideas that may improve cash flow ✓ Greater confidence when making financial decisions CONTINUE THE CONVERSATION Every business is different. Following the webinar, you're invited to have a complimentary one-on-one business discussion to explore how Nathan's cash flow observations may apply to your own business. Understand where your cash is going and identify practical ways to strengthen cash flow.

Budgeting is not paperwork. It's your business control system. Many business owners invest time creating a business plan, then leave it sitting in a drawer. The businesses that consistently outperform their competitors do it differently: they turn that plan into a practical budget and cash flow forecast that guides day-to-day decisions. Imagine knowing exactly where your business is heading over the next 12 months. Instead of wondering if you'll have enough cash to pay suppliers, invest in new equipment or hire another team member, you can make decisions with confidence because you've already mapped out the financial impact. That's the peace of mind a well-built budget provides. A budget isn't about predicting the future perfectly. It's about measuring performance, identifying issues early and making informed decisions before small problems become expensive ones. Your business plan tells you where you want to go. Your budget tells you if you'll get there. Without discipline, decisions are often based on instinct rather than evidence: Build a budget you’ll use A useful budget should: Cover at least the next 12 months Reflect your business goals and growth plans Include a detailed cash flow forecast Be reviewed every month against actual results Be detailed enough to show where performance is improving (or slipping!) Don't hide the numbers A common budgeting mistake is combining every part of the business into one set of figures. If your business has different divisions, locations, products or services, track each separately. This gives you the visibility to answer important questions: Which part of the business is making money? Which area is consuming cash? Where are margins shrinking? Which operation needs attention first? Without this visibility, profitable areas can end up subsidising poor performers without anyone realising. Profit matters, but it isn't the whole story Successful businesses also monitor the assets and commitments that tie up cash, including: Stock and materials Finished goods Work in progress Accounts receivable (debtors) Accounts payable (creditors) Research and development investment Capital expenditure Even small changes in these areas can significantly affect cash flow, regardless of reported profit. Review. Learn. Adjust. The real value of budgeting comes from reviewing it consistently. Each month, compare your actual performance against your budget by asking: What changed? Why did it happen? Is this temporary or part of a trend? What should we do next? Regular reviews help you identify issues early, respond quickly and make decisions based on facts rather than assumptions. Turn your budget into a decision-making tool Your budget should be a management tool that helps you invest confidently, improve cash flow and respond to changing business conditions. If it isn't helping you make better decisions, it's time to rethink how you plan, measure and manage your business. Ready to make your budget work harder? The right budget gives you more than numbers – it provides you with clarity, confidence and control. To build a practical budgeting and cash flow strategy tailored to your business, contact the Strategy360 team today.

ATO Cracks Down on Personal Services Income Arrangements: Is Your Business at Risk? The ATO is sharpening its focus on how taxpayers generating income from personal services deal with that income for tax purposes. In a recent ATO Spotlight bulletin, Small Business Assistant Commissioner Tony Poulakis highlighted the release of Practical Compliance Guideline PCG 2025/5. This guideline clarifies the ATO’s compliance approach to the “alienation” of personal services income (PSI) — essentially, arrangements which involve routing income earned through your personal skills and efforts via a company or trust, rather than receiving it directly. Why the ATO Is Interested Many business owners operate through a company or trust rather than earning income personally. In many cases this is entirely legitimate and provides commercial benefits such as asset protection, flexibility and succession planning. However, where income is generated primarily from the efforts, skills or reputation of one individual, the ATO is concerned about arrangements that divert income away from that individual in order to reduce tax. Even where a business is able to pass certain tests to be classified as a Personal Services Business (PSB) under the tax rules and falls outside the strict PSI attribution rules, the ATO has made it clear that general anti-avoidance provisions in Part IVA can apply if the arrangement is primarily tax-driven. If Part IVA applies then this can lead to higher tax liabilities as well as significant penalties and interest charges. What Does the ATO Consider Low Risk? The ATO's guidance focuses heavily on whether the individual generating the income receives an appropriate share of the profits. Generally, an arrangement is more likely to be considered low risk where: The individual who performs the work receives most of the economic benefit through salary, wages, bonuses, director fees or trust distributions. Profits retained in a company are kept for genuine and short-term business reasons. Family members or associates are only paid reasonable amounts for genuine work performed. For example, retaining profits in a company to fund the purchase of new equipment in the short-term could be viewed favourably if there is evidence supporting those plans and the company actually follows through with these plans. What Will Attract ATO Attention? The ATO has specifically identified a number of higher-risk behaviours, including: Splitting income with family members who have made little or no contribution to earning that income. Retaining substantial profits in a company without a genuine short-term commercial purpose. Directing profits generating from someone’s personal services to entities or beneficiaries primarily because they are taxed at lower rates or because they have tax losses. The ATO’s expectations in this area are very strict. The greater the mismatch between who performed the work and who is ultimately taxed on the profits from that work, the greater the likelihood of ATO scrutiny. A Limited Opportunity to Review Existing Arrangements The ATO has provided a transition period for taxpayers who genuinely review and adjust their arrangements. Businesses that take genuine steps to move from higher-risk arrangements to lower-risk arrangements by 30 June 2027 are unlikely to face Part IVA action in relation to those arrangements if reviewed by the ATO. This is not an amnesty, but it is an opportunity for business owners to proactively assess their position and make changes where necessary. What Should Business Owners Do? Now is an ideal time to review how profits are being distributed within your structure. Questions worth considering include: Are retained profits supported by documented short-term commercial reasons? Are payments to family members commercially justifiable? Would your arrangements withstand ATO scrutiny if reviewed? If you operate through a company or trust and derive income largely from your personal skills or efforts, it is important to review existing arrangements in light of the ATO’s updated guidance. A proactive review today may prevent costly issues tomorrow.

The new financial year is the perfect time to look ahead, not just review the past. While many businesses prepare a budget, far fewer build a cash flow forecast based on the drivers that actually influence performance. At Strategy360 By Collins Hume, we help business owners identify those drivers to improve cash flow, make informed decisions and plan for sustainable growth. Start the year with the right questions July is the ideal time to ask: What are our goals this year? Will cash flow support them? Which areas will have the biggest impact on profit? Where are the risks? Answering these questions early gives you time to act before problems arise. Better forecasts start with better information Rather than relying on last year's numbers, effective forecasting is built around the activities that drive your business, including: Sales and seasonal demand Pricing and margins Labour productivity Inventory levels Debtor collections Planned investment Monitoring these drivers throughout the year turns forecasting into a practical decision-making tool. Cash flow pressure often begins long before the bank balance shows it. Late payments, rising costs, excess stock and shrinking margins can all reduce available cash. Tracking these indicators early gives you greater control and more options. Turn insight into action Historical reports explain what happened. Forecasting helps shape what happens next. By regularly reviewing cash flow and the key drivers behind your business, make better decisions about pricing, staffing, investment and growth throughout the year. At Strategy360, we combine financial forecasting with practical business advice to help improve cash flow, profitability and long-term business performance. Fresh off Business NSW’s Business of Doing Business series, Nathan McGrath will present Collins Hume’s August Cash Flow Workshop, sharing practical strategies to help business owners strengthen cash flow throughout the financial year. Watch this space for event details or call ahead now to reserve a spot. — Article adapted and expanded by Collins Hume from The Engine Room of Business Advisory (ESS AccountantsMinute, Issue 457, 10 June 2026).

Updates to Budget Measures and New Developments Since the Federal Treasurer handed down the 2026-27 Federal Budget on 12 May 2026 there has been a significant amount of commentary on some of the more controversial proposals, including the decision to replace the CGT discount with an indexation system and impose a 30% minimum tax rate on discretionary trusts. Since our latest update in this area, the Government has announced some changes to these proposals, as well as some other areas of the tax system that weren’t initially impacted by the Budget. CGT Changes On Budget night the Treasurer announced that the existing 50% CGT discount for individuals and trusts would be replaced with an indexation system and a 30% minimum tax rate on capital gains accruing from 1 July 2027 (with limited exceptions). However, the Government has announced that it plans to introduce a new Innovative Business CGT Concession that would provide a 50% CGT discount to early-stage investors, including founders and employee share scheme participants in innovative start-up businesses. A consultation paper has been released on the design of this concession. In addition, the Government is taking steps to increase the annual turnover threshold that applies in determining whether a small business or its owner can access the existing 50% “active asset reduction” under the small business CGT concessions, from $2m to $10m. This change would apply from 1 July 2027. The existing $2m turnover threshold would remain in place for the other three small business CGT concessions, being the 15 year exemption, retirement exemption and small business rollover relief. Taxpayers who can’t pass the turnover test can still access the concessions if they can pass a $6m net asset value test. Testamentary Trusts In the Budget the Government announced that a 30% minimum rate of tax would apply to the net taxable income of discretionary trusts from 1 July 2028. The Government had indicated that this would apply to testamentary trusts, unless they already existed at 12 May 2026. However, the Government has announced that it will now exempt income from all testamentary trusts from the new minimum tax rate rules, as long as they are established for “genuine testamentary purposes”. The exclusion from the rules will be limited to income from assets of the relevant deceased estate. For discretionary testamentary trusts established on or after 1 July 2028, the exclusion will only apply to trusts that can only benefit individuals and income tax exempt entities. SMSF Borrowing Arrangements As a result of negotiations with the Greens in connection with the changes to the CGT discount and negative gearing, the Government has agreed to remove the ability for SMSFs to borrow to purchase residential property (SMSF borrowing is commonly known as a limited recourse borrowing arrangement). It seems that existing arrangements will be grandfathered. We will keep you updated as more developments occur. However, please don’t hesitate to contact us if you wish to discuss how these changes impact your tax position.

From Passion to Purpose: How Collins Hume helped Byron Homemade Pizza rise from local favourite to regional success For Damian “Damo” Casiro and Benji White, Byron Homemade Pizza has always been about more than serving great food. From the beginning, they set out to build a business guided by strong values, genuine hospitality and a passion for bringing people together. Today, the Byron Homemade Group encompasses two successful brands — Byron Homemade Pizza and Jimmy Chimichurri — providing pizza catering, frozen pizzas and handcrafted Argentinian chimichurri throughout the Northern Rivers and beyond. Like many successful businesses, however, the journey has not been without challenges. As demand grew, so too did the pressures of managing cash flow, leading people, finding staff and maintaining the resilience needed to keep moving forward. It was during this period that Collins Hume became an important part of their business. "Successful businesses aren't built simply by working harder,” says Partner Peter Fowler. “They're built by creating clarity, making good decisions and designing a business that supports the life you actually want to live." Working alongside Damian and Benji, Peter and the Collins Hume team helped strengthen the business through proactive tax planning, cash flow management, BAS reporting and practical commercial advice that supported growth without losing sight of the owners' vision. Learning has also been an important part of the journey. Damian attended Collins Hume's Strategy360 'Cash Is King' event in 2025 and the Top Performer business benchmarking workshop earlier this year. Led by Nathan McGrath, Damian and Benji gained practical insights into one of the biggest challenges facing many growing businesses — cash flow. Combined with ongoing advice from Nathan, both sessions reinforced practical strategies that continue to support their business as it grows. For Damian and Benji, having trusted advisers who genuinely understand their business and the people behind it make all the difference. "Collins Hume don't just look at the numbers. They understand where we're trying to go and give us confidence to make better business decisions. Collins Hume feels like part of our team." The business has continued to evolve while staying true to its original mission — supplying quality food and memorable experiences across the Northern Rivers through both its catering operations and growing wholesale products. Their philosophy remains remarkably simple. "Patience, consistency and believing in what we do have always been our secret ingredients. We've stayed committed to our mission, vision and values from day one,” says Damian. That clarity of purpose is equally reflected in the advice they now share with aspiring entrepreneurs. "Do something you genuinely love. When your purpose is clear, the inevitable challenges become much easier to navigate." Peter says the Byron Homemade story demonstrates that sustainable growth rarely happens by accident. "Damian and Benji have built something authentic because they've remained true to their values while continually investing in the business.” “Our role is to provide the financial confidence and strategic support that allows passionate business owners to keep growing with purpose." Today, Byron Homemade Pizza caters for weddings, corporate functions, festivals and private events across the region while Jimmy Chimichurri continues introducing customers to authentic Argentinian flavours through its growing product range. Their success is built on far more than exceptional food. It is the result of clear values, consistent effort, trusted advice and a business designed to thrive for the long term. About The Byron Homemade Group Explore The Byron Homemade Pizza Team’s catering services, frozen pizzas and mobile pizza experiences at www.byronhomemadepizza.com, discover the story behind their handcrafted sauces at www.jimmychimichurri.com, or follow their latest creations and events on Instagram @byronhomemadepizza and @jimmy.chimi.

Why Strategic Advisory Support matters more than ever for Business Owners For small and medium businesses (SMBs) the past few years have felt like operating in permanent uncertainty. Rising interest rates. Inflationary pressure. Supply chain disruption. Labour shortages. Regulatory change. Global instability. A rapidly shifting tax environment. Increased reporting expectations from lenders, investors and government agencies. Business owners are not just dealing with one challenge at a time. They are trying to make decisions in an environment where the variables keep moving. That reality is changing what businesses need from their advisers. The traditional compliance relationship still matters. Importantly, this is not about replacing compliance services. It is about building on them. Tax returns, BAS, financial statements and compliance reporting remain essential. But increasingly, SMBs are looking for something more practical and forward-looking from their accounting and advisory relationships. They are looking for guidance. And they are seeking clarity. They are looking for a strategic partner who can help them interpret what is happening around them and make informed decisions with confidence. And there is growing recognition across our profession that SMBs require deeper advisory support to navigate complexity and plan effectively for the future. Why SMBs are seeking more Strategic Advisory Support This is where a structured advisory approach can make a material difference. In uncertain economic conditions, business owners often find themselves asking questions such as: Where are the pressure points in the business? What will cash flow look like six months from now? Which parts of the business are most profitable? How exposed are we to interest rate or market changes? Are we pricing correctly? What are top-performing businesses doing differently? How do we improve business value and reduce operational risk? What should we prioritise first? These are not year-end questions. They are operational and strategic questions that impact daily decision making. Rather than focusing purely on historical reporting, strategic advisory and Chief Financial Officer (CFO) Services provide business owners with forward-looking insights, benchmarking data, planning frameworks and ongoing accountability. That support becomes particularly valuable during periods of volatility, where delayed decisions or poor visibility can quickly erode profitability and business value. Moving Beyond Historical Reporting One of the major shifts occurring is the move from reactive reporting to proactive business guidance. The objective is not simply to generate reports. It is to support better decision making. Many SMBs already have access to data. The challenge is knowing what the data means and what action should follow. Through a Value-Centred Advisory Framework, advisers can help businesses turn financial information into clearer strategic direction. That may include strategic financial guidance, forward-looking business insights, performance analysis, risk and value improvement planning, and structured decision-making support designed to help business owners navigate growth, uncertainty and operational complexity with confidence. What top-performing businesses do differently For many SMBs, it is not a lack of effort holding them back. It is a lack of visibility. One of the strongest themes emerging from benchmarking and advisory work is that high-performing businesses tend to operate with greater visibility and discipline around performance measurement. Businesses that consistently outperform their peers typically operate with stronger financial visibility, clearer performance measurement, more disciplined decision-making processes and a greater focus on aligning operational activity with long-term strategic and commercial outcomes. This is why benchmarking has become increasingly valuable within business advice conversations. Understanding what top-performing businesses are doing differently can provide meaningful context for owners trying to improve profitability, efficiency, resilience and long-term value. Risk Reduction and Business Value Improvement The most robust businesses typically build value long before they need to. Periods of economic uncertainty place greater focus on risk management and business value. Many business owners only begin thinking seriously about valuation when a sale, succession event, dispute or funding requirement emerges. A proactive advisory approach can help businesses better understand the drivers of long-term value, resilience and sustainability, while identifying areas where operational, financial or strategic improvements may strengthen performance, reduce risk and support future growth outcomes. Improving these areas not only supports future valuation outcomes; it can also improve resilience, lender confidence, succession readiness and overall business performance today. Why this matters right now The businesses most likely to navigate volatility successfully are often those with stronger visibility, better planning frameworks and access to informed strategic guidance. The current business environment is placing enormous pressure on SMB owners. Many are making high-impact decisions while managing uncertainty on multiple fronts simultaneously. That creates a strong case for more structured strategic support. For some businesses, the real question may no longer be whether they should consider advisory support. It may be whether they can afford not to. The Opportunity for SMBs This is where Strategic Advisory Support can become highly valuable. Strategic advisory and CFO Services are not just for large corporates. Increasingly, SMBs are recognising the value of having access to: Strategic Advisory Services Financial Performance Insights Valuations and Value Building Advice Succession Planning Mentoring and Accountability Benchmarking Intelligence In many cases, business owners do not necessarily need more information. They need clearer interpretation, prioritisation and direction. If your business is navigating uncertainty, growth pressure, margin challenges or strategic change, now may be the right time to consider if your current reporting processes are providing enough visibility and direction. Read more on contact Nathan McGrath on 02 6686 3000. A structured advisory approach using a Value-Centred Advisory Framework can help provide greater clarity around planning, performance, risk reduction and long-term business value improvement. Inspo: Towers, P. 2026, From Compliance to Virtual CFO Leadership, ESS BIZTOOLS

From Accountant to 10 Years as a Partner A decade after becoming a Partner at Collins Hume, Jamie Doyle says the biggest change he has witnessed hasn't simply been technology or tax legislation – it has been the changing expectations of business owners. Increasingly, businesses are looking beyond traditional accounting services, seeking advisers who can provide strategic guidance, commercial insight and practical solutions to help them navigate growth with confidence. This year marks Jamie's 10th anniversary as a Partner at Collins Hume, a milestone that reflects more than a decade spent helping businesses build stronger financial foundations, embrace technology and make informed decisions. More than compliance Jamie joined Collins Hume as an Accountant before progressing through the firm to become a Partner. Along the way, both his role and the profession itself have evolved. Today, he works with everyone from start-ups and family businesses to established businesses looking to improve profitability, strengthen cash flow and plan confidently for the future. "The key to small business success is ensuring the right processes are in place and continually reviewed," Jamie said. "Anyone can have a great business idea, but it's having the systems, information and confidence to act on those ideas that helps businesses reach their full potential." Helping businesses work smarter A significant part of Jamie's work involves helping businesses use technology to improve efficiency. As a Certified Practising Accountant (CPA), he has led numerous cloud accounting and business improvement projects, helping clients simplify administration, reduce manual processes and gain real-time visibility over their financial performance. His work has also expanded into Virtual Chief Financial Officer (VCFO) services, providing business owners with ongoing financial reporting, forecasting and strategic advice throughout the year. Rather than looking backwards at historical figures, Jamie helps clients understand what their numbers are telling them now, and what actions they should take next. Strategic advice in action One of Jamie's clients, a business that grew from a regional operation into an international operation, demonstrated how the role of an accountant can evolve alongside a business. What began as traditional tax and compliance support gradually developed into a strategic advisory partnership as the business expanded and its financial requirements became more complex. Working closely with the founder and leadership team, Jamie assisted with business restructuring, financial management and Virtual Chief Financial Officer (VCFO) services, providing regular performance reporting, commercial insights and strategic guidance. The collaboration helped strengthen financial management, improve cash flow visibility, optimise the their tax position and support informed decision-making during a period of sustained growth. Reflecting on the relationship, the business owner said: "We got huge benefit out of working on a regular basis to provide detailed feedback on how we were tracking and what we should've be thinking about from a financial perspective. It's just really nice to have that sort of advice." Jamie believes this collaborative approach reflects how the accounting profession continues to evolve. "Business owners are looking for someone who understands their business, not just their tax return," he said. "They want practical advice, timely information and someone they can speak with before making important decisions." Looking to the future As he celebrates 10 years as a Partner, Jamie believes the future of accounting will continue to centre on helping businesses make better decisions. "Technology will keep changing, but business owners will always value practical advice from people who understand both the numbers and the realities of running a business," he said. For Collins Hume, Jamie's milestone marks not only a decade of partnership but also the continuing evolution of the accounting profession, from compliance specialists to strategic advisers helping businesses build stronger futures. Jamie holds a Bachelor of Business (Accounting), is a Certified Practising Accountant (CPA) and Registered Tax Agent.

Payday Super Has Arrived – What Employers Need to Know One of the most significant changes to the Australian superannuation system in decades has now commenced. From 1 July 2026, Payday Super requires employers to ensure super contributions reach employee super funds within seven business days of each payday. For many businesses, this represents a major shift from a quarterly payment cycle to a more frequent, real-time obligation. While the Government is aiming to get super into employee accounts faster and help close the national super gap, the new system introduces new compliance, cash flow and administrative considerations for employers. Businesses that have prepared well should find the transition manageable, but those still relying on quarterly processes need to act quickly to avoid significant problems. What Exactly Has Changed? Under the previous rules, employers generally had until 28 days after the end of each quarter to make super contributions. Under Payday Super, the clock now starts on each “Qualifying Earnings” (QE) day — essentially your payday for salary, wages, commissions, bonuses and certain contractor payments. Key Payday Super Requirements Contributions must be received and allocated to the employee’s fund within 7 business days of payday (there are limited exceptions to this) Shortfalls are now calculated per QE day rather than quarterly The ATO’s Small Business Superannuation Clearing House has closed, meaning businesses previously using the service must now use a SuperStream-compliant alternative. Penalties are also tougher. The administrative uplift can reach 60% of the shortfall (with reductions available for early voluntary disclosure), although the Superannuation Guarantee Charge itself is deductible in more circumstances. The ATO’s first-year compliance approach (PCG 2026/1) adopts a risk-based view, with businesses that make genuine efforts to comply and promptly rectify mistakes generally treated as lower risk. However, if an employee reports a problem to the ATO then don’t expect the ATO to ignore this. Managing the June-July Changeover There is a technical quirk in the rules which could catch out unsuspecting employers, especially when it comes to SG contributions made across the month of July 2026. If a business has paid employees during the June 2026 quarter then the SG deadline for this quarter would normally be 28 July 2026. However, many employers have decided to pay the SG amount for the June quarter before this deadline to reduce the risk of accidentally triggering a SGC problem. This is because any SG contributions made from 1 July 2026 will reduce the super owing for the June quarter first, before any remaining amount is used to meet Payday Super obligations relating to pay runs that occur in July. The best way to manage this situation to avoid SGC liabilities really depends on the dates of any July pay runs. Please contact us if you need help identifying any potential problems or to help come up with a practical solution. Three Practical Steps to Take Now Review Your Systems: Confirm that your payroll software, clearing house and internal processes are operating correctly under the new rules. If you have not already done so, review pay codes and contribution workflows to ensure QEs are correctly identified. Monitor Cash Flow and Processes: Assess the impact of more frequent super payments on cash flow. Review approval processes, onboarding procedures and the handling of bonuses or out-of-cycle payments. Strengthen Controls and Communication: Ensure payroll and finance teams understand the new requirements and have appropriate controls in place. Ongoing monitoring and periodic reviews will help identify issues before they become compliance problems. The interdependencies between payroll systems, clearing houses and super funds mean small oversights can quickly create larger compliance issues. Businesses that continue to monitor and refine their processes will be best placed to meet their obligations. At Collins Hume, we are helping clients navigate the practical implications of Payday Super through readiness reviews, payroll process assessments and cash flow planning. Our goal is to help businesses remain compliant while building stronger and more efficient systems. To discuss how Payday Super affects your business, contact your Collins Hume adviser on 02 6686 3000. We can help identify any remaining gaps and ensure your systems and processes continue to operate effectively under the new system.

Many business owners are feeling the pressure right now. Rising costs, tighter cash flow, labour challenges and ongoing uncertainty are forcing many small and medium businesses (SMBs) to rethink how they operate. For some, the focus has downgraded from business growth to protecting profitability and stability. The challenge is that business owners can get caught up running the business to stop and see where the real issues – or opportunities – sit inside the numbers. That is where good financial insight becomes incredibly valuable. Why businesses feel like they’re working harder for less We are seeing common patterns across many industries. Revenue may still be moving, but margins are tightening. Cash seems to disappear faster. Teams are working harder, yet profits are not improving at the same pace. Often, the issue is not one major problem; it is the accumulation of: Rising operating costs Labour inefficiencies Pricing pressure Poor cash flow discipline Unnoticed wastage and leakage Slow debtor collections Lack of visibility over key business drivers The difficulty is knowing exactly where to look first One of the biggest issues impacting SMBs right now is cash flow management. Even profitable operators can experience significant pressure if cash is not moving efficiently through the business. Small improvements can often create meaningful results: How quickly are invoices being collected? Are payment terms being enforced consistently? Is stock being managed effectively? Are rising costs quietly eroding margins? Is the business generating enough return per team member? Why Benchmarking Matters Many business owners make decisions based on instinct. But stronger businesses combine instinct with evidence. Benchmarking allows owners to compare their performance against similar businesses and identify: Areas where margins may be under pressure Operational inefficiencies Labour productivity concerns Pricing opportunities Profit improvement potential Without proper visibility, it becomes difficult to know whether your business is genuinely performing well, or simply “staying busy”. Looking ahead matters more than looking back Historical financials are important but, in the current environment, forward planning is more critical. Forward projections and cash flow forecasting can help owners make decisions earlier (rather than reacting once pressure has already built) with clarity on: Future cash flow requirements Upcoming cost pressures Wage and superannuation increases Growth funding requirements Contingency planning for slower trading conditions Businesses that adapt early often perform better The businesses navigating uncertainty effectively are the ones willing to: Review their numbers regularly Identify problems early Monitor key performance indicators Improve cash flow discipline Make informed operational decisions Seek outside insight before issues escalate Could your business benefit from a fresh financial perspective? For greater clarity around your business performance, cash flow, profitability or operational efficiency, our Strategy360 team can help you better understand what your numbers are really telling you. Whether it’s benchmarking, cash flow forecasting, profit improvement strategies or identifying hidden inefficiencies, we can help you focus on the areas that matter most.

What is a holiday home? A holiday home is a property used, or held for use, for your own holidays or recreation, or for use by family and friends either free of charge or at reduced rent. A property can still be considered a holiday home even if it is rented out part of the year. Holiday home – not rented out If you don’t rent out your holiday home, there are generally no tax implications until you sell the property. Once sold, you may need to calculate a capital gain or loss. Keep all purchase and ownership records to support future CGT calculations. Holiday home – rented out If your holiday home earns rental income, that income must be declared in your tax return. The deductions you can claim depend on whether the property is used or held mainly to produce rental income. Deductions for holiday homes Holiday homes are classified as leisure facilities. Special deduction rules apply. You can only claim ownership and use expenses if the property is mainly used, or held for use, to earn rental income. Ownership and use expenses include loan interest, borrowing costs, council and water rates, body corporate fees, land tax, and repairs and maintenance. These expenses do not include booking fees, advertising or cleaning costs associated with renting the property. Used or held for use mainly to produce rental income The ATO considers several factors when determining if a holiday home is mainly used to earn rental income, including: how the property is actually used the amount of time dedicated to rental use private use by owners, family or friends if the property is available during peak holiday periods. No single factor determines the outcome. Simply advertising the property for rent is not enough if personal use is prioritised. The owner’s intention alone is also not relevant. Holiday home – deductions when not mainly producing rental income If the property is not mainly used to produce rental income, ownership and use expenses are not deductible. However, direct rental-related expenses may still be deductible. Holiday home – deductions when mainly producing rental income Where the property is mainly used to earn rental income, deductions can generally be claimed to the extent expenses relate to producing that income. Expenses may need to be apportioned while other expenses remain fully deductible if they relate solely to rental activity. Expenses relating to private use are not deductible. Holiday home – clear change of main use A holiday home’s main use can change over time. A clear and sustained shift toward genuine income-producing use may allow deductions from that point onward. Seasonal fluctuations or isolated changes in use are generally insufficient. Holiday apartments and GST An individual holiday apartment located within commercial residential premises is generally still treated as residential premises for GST purposes. Leasing If you lease the apartment to guests or a management company: rental income is generally input taxed GST is not payable on the income GST credits cannot be claimed for purchases or imports relating to leasing the premises. Selling If you sell the apartment: the sale is generally input taxed GST is usually not payable GST credits cannot be claimed for purchases or imports relating to the sale. Capital gains tax may still apply. If you own a holiday home, holiday apartment or short-term rental property that is also used privately, understanding how the ATO views private use versus income-producing use is critical to claiming the right deductions and avoiding compliance issues. Contact Collins Hume on 02 6686 3000 for advice tailored to your circumstances or assistance reviewing your rental property tax position. Read more, including examples, in Australian Taxation Office article, ‘Holiday homes’, showing update 21 May 2026.

2026 End of Financial Year Actions – for Individuals Reducing your tax exposure, maximising the opportunities available to you and reducing your risk of an audit by the ATO is in your best interests. With the end of the financial year fast approaching, this update will help you do exactly that. We want to help you achieve the best result possible. If there is any additional information we can provide, or if we can assist you with your individual situation, please contact us today! What’s New for 2026? Federal Budget 2026-27 The Government handed down the 2026-27 Federal Budget on 12 May 2026, which included a broad range of significant proposed tax reform measures. Some of the key announcements that are relevant for individuals include: A proposed $1,000 instant deduction for work-related expenses from the 2026–27 income year The introduction of the Working Australians Tax Offset, providing a permanent annual $250 tax offset to eligible Australian workers Proposed changes to negative gearing, limiting deductions for residential property investments to new builds from 1 July 2027 The replacement of the 50% CGT discount with inflation adjusted indexation from 1 July 2027, together with the introduction of a proposed minimum 30% tax rate on capital gains. Since the Budget was handed down, legislation relating to some of the key tax measures has now been introduced into Parliament on 28 May 2026 but they are not yet law and the final form of the rules might end up changing. We recommend that you avoid making significant restructuring or transaction decisions based solely on the current announcements without speaking with us first. We will continue to monitor developments and provide updates as further detail becomes available. $1,000 instant deduction for work-related expenses As noted above, the Government is planning to introduce an optional standard deduction for work-related expenses from the 2026–27 income year onwards. Under the proposed rules, you may choose to claim a fixed deduction of $1,000 for certain work-related expenses without needing to keep receipts or other substantiation records for those expenses. The measure is intended to simplify the tax return process and reduce compliance costs for taxpayers with relatively low levels of deductible work-related expenses. Importantly, the proposed deduction is optional. If your actual deductible work-related expenses exceed $1,000, you would still be able to claim your actual expenses under the existing deduction and substantiation rules. Where you choose to use the standard deduction: You would not need to substantiate the first $1,000 of eligible work-related expenses; You would generally be prevented from separately claiming deductions for expenses covered by the standard deduction; and Certain deductions outside the standard deduction may still remain claimable where specifically allowed under the legislation. The standard deduction is primarily targeted at employees and other individuals earning labour income. Individuals who only derive other types of business or investment income are not expected to benefit from the measure. The proposed deduction does not provide an immediate cash payment. Any tax benefit would still only arise when you lodge your income tax return and the return is assessed by the ATO. This measure is not yet law and further amendments might still occur as the Bill progresses through Parliament. Concessional Superannuation Contribution The concessional contributions cap is the maximum amount of before-tax contributions you can contribute to your super each year without contributions being subject to extra tax. From 1 July 2026, the concessional contributions cap is $32,500. Electric Vehicle Home Charging Rate If you own and use an electric vehicle (EV) or a plug-in hybrid electric vehicle (PHEV) to produce your income, you may be able to use the ATO’s EV home charging rate to calculate the cost of charging your vehicle at home. You can use the EV home charging rate of 4.2 cents per kilometre to calculate your electricity costs for the year ending 30 June 2026 where you: Use your electric vehicle for earning assessable income Incur electricity costs when charging your vehicle at home Keep the required records for the income year, and Claim your car expenses using either the logbook method or your actual work-related vehicle expenses. This rate increases to 5.47 cents per kilometre from 1 July 2026 onwards. If you use a PHEV then the rates above aren’t applicable, but the ATO does have a formula that can be used to calculate the home electricity costs for a PHEV. The 7-step formula can be found in PCG 2024/2. Alternatively, you may choose to calculate and claim the actual electricity costs incurred in charging your EV or PHEV, but you would need appropriate records to support this. ATO Interest Charges General Interest Charges (GIC) and Shortfall Interest Charges (SIC) imposed by the ATO are no longer tax-deductible if they are incurred from 1 July 2025. As these amounts are no longer deductible, the actual cost associated with ATO interest charges will be higher now for many taxpayers. This means that the costs associated with leaving tax debts outstanding will often be higher, making it even more important to let us know if you are struggling to pay debts that are owed to the ATO. The ATO still retains discretion to remit GIC and SIC in appropriate, but this isn’t guaranteed and you should never assume that the ATO will release you from interest charges. Rental Properties The ATO has recently finalised new guidance for residential rental properties through TR 2026/1, PCG 2026/2 and PCG 2026/3. The new guidance reflects a much stricter approach to rental property claims, particularly for holiday homes and properties with some private use. The ATO’s focus is now on ensuring that tax deductions are only available where a property is genuinely being used to earn rental income, rather than mainly being held for private enjoyment or recreation. Under the new approach, the ATO will closely examine holiday homes and mixed-use properties to determine whether they are primarily being used to produce assessable income across the relevant year. If the ATO considers that a property is mainly being used or held by the owner, family members, or friends for private purposes, deductions such as interest on loans, council rates, land tax, insurance, and depreciation may be denied completely, even if the property is genuinely used to generate some income during the year. To support deduction claims, property owners need to demonstrate that the property was genuinely available for rent and primarily held for income-producing purposes. The ATO may review factors such as: Whether the property was blocked out during peak holiday periods or school holidays; Whether rental prices were set artificially high to discourage bookings; Whether unreasonable booking conditions were imposed; and The actual level of rental occupancy achieved during the year. Where a property is held mainly to produce income but there is some private use, expenses must be apportioned on a fair and reasonable basis. This generally means claims need to be reduced based on the period or area used privately, with appropriate records maintained to support the calculation. The ATO has also clarified that all rental income must be declared, including income earned through short-stay platforms such as Airbnb or informal arrangements with family and friends. However, where a property is rented to related parties at below-market rates, deductions relating to that period are generally limited to the amount of rental income received. This means losses cannot usually be generated from non-commercial rental arrangements. Areas of ATO Scrutiny Work-Related Deductions The ATO has announced that its key compliance focus areas for Tax Time 2026 will again include work-related deductions, working from home expenses and omitted income. The ATO continues to use sophisticated data-matching systems and real-time reporting information to identify incorrect claims and undeclared income, with a particular focus on claims that appear excessive when compared to a taxpayer’s occupation or income level. The ATO has produced a range of occupation-specific guides which can be helpful in finding out whether deductions claimed for specific expenses are likely to be allowed or challenged. The ATO emphasises that the deductibility of any expense ultimately depends on the specific facts and whether there is a sufficient connection between the expense and the taxpayer’s income-earning activities. Work from Home Expenses If you work from home, there are two methods to claim working from home expenses: The actual expense method The revised short-cut method. If you are using the revised short-cut method, then a rate of 70 cents per hour applies to energy expenses (electricity and gas), internet expenses, mobile and home phone expenses, and stationery and computer consumables for the year ending 30 June 2026. You can separately claim other costs, such as depreciation on computers or other running costs not referred to above. To use the revised short-cut method, you will need a record of all of the hours you worked from home. The ATO has warned that it will no longer accept estimates or a sample diary over a four-week period. For example, if you normally work from home on Mondays but one day you have an in-person meeting outside of your home, your diary should show that you did not work from home for at least a portion of that day. You also need to keep a copy of at least one document for each running cost you have incurred during the year which is covered by the short-cut method. This could include invoices, bills or credit card statements. Where bills are in the name of one member of a household but the cost is shared, each member of the household who contributes to the payment of that expense will be taken to have incurred it. For example, a husband and wife, or flatmates where they jointly contribute to costs. The ATO will also be closely examining claims where individuals attempt to deduct their entire bill or a substantial portion as work-related. It is particularly focused on identifying cases of "double dipping" — where taxpayers use the 70 cents per hour rate, which already includes phone expenses, and then also claim mobile phone costs separately. Occupancy Expenses You cannot claim occupancy expenses such as rent, mortgage interest, property insurance, and land taxes and rates unless your home is a place of business. It is unusual for an employee’s home to be classified as a place of business. Omitted Income The ATO is also reminding taxpayers to ensure that all sources of income are properly disclosed in their tax returns. This includes online platform earnings and income generated from secondary employment or side-hustle activities. With the expansion of third-party reporting and data-matching programs, the ATO is increasingly able to identify undeclared income from banks, employers, digital platforms, government agencies and other external data sources. Taxpayers who fail to disclose income may be subject to amended assessments, penalties and interest. The ATO is also often able to identify amounts that have been received from overseas sources. For example, if you have received money from a relative who is based overseas it will be necessary to check the source and nature of the funds so that the tax treatment can be determined before the ATO discovers it. Crypto Assets The ATO is specifically reviewing situations where taxpayers may have omitted or incorrectly reported capital gains and losses arising from crypto asset transactions, as well as cases where crypto-related business income or expenses have not been properly disclosed. The ATO continues to expand its Crypto Assets Data-Matching Program, which collects information from Australian service providers regarding crypto asset accounts and transaction activity. This information is then matched against amounts disclosed in tax returns. The ATO has indicated that it is reviewing a broad range of crypto asset activities including disposals, token swaps, staking arrangements and transactions involving decentralised finance platforms. If you have any crypto assets, you should ensure that accurate records of acquisition dates, disposal dates, transaction values and wallet activity are maintained to support the correct tax treatment of gains, losses and income. Getting Ready for your 2026 Individual Tax Return Having your paperwork organised always makes life much easier. Preparing your end of year documents and information prior to coming to see us will save you time and money. This is a general list of what to have ready when we next meet with you. Income Statement Interest income from banks and building societies Dividend statements for dividends received Tax statements of managed investment funds Rental property statements from real estate agent and details of other expenditure incurred For share sales or purchases, the purchase and sale contract notes and settlement sheets For real estate sales or purchases, the solicitor’s correspondence for the purchase and sale Any expenses related to your work you have not claimed from your employer Work from home diary Work-related car expenses details Self-education expenses Travel expenses Donations to charity Payments for income protection or sickness and accident insurance Health insurance and rebate entitlement Family Tax Benefits received Commonwealth assistance notices IAS statements or details of PAYG Instalments paid Details of any transactions involving cryptocurrency (e.g., Bitcoin) Details of any income derived from the sharing economy (e.g., Uber driving, rent from AirBNB, jobs completed through Airtasker etc,) Notice of intent to claim or vary personal super contribution. Next Steps Remember – we’re here to help you! Please email or phone us on 02 6686 3000and one of our expert accountants will assist you to save tax and have the peace of mind that your Tax Return will be lodged 100% correct!