TIP: Self-running businesses aren’t just possible — they’re built on purpose! Many business owners fall into the same trap: becoming the linchpin holding everything together. They often think: “Customers won’t see the same value without me” “My team isn’t ready to take the reins” “The business will fall apart if I’m not involved daily” One business owner we know once believed all of that, too. Convinced that nothing would function without constant oversight, they felt indispensable. But the truth soon became clear: a business that can’t operate without its owner isn’t a business — it’s a high-stress job in disguise. So, they made a radical decision. They fired themselves! How stepping back made a better business The process didn’t happen overnight. Instead, they committed to systematically removing themselves from the day-to-day. That meant training the team, documenting processes and building systems that would support others to succeed. The results? The business didn’t just survive, it thrived Decisions turned around faster Customers remained happy The team stepped up with confidence. Without the owner acting as the bottleneck, the business unlocked new potential. Leadership was shared. Innovation happened organically. The business became more agile and resilient. From Job to Asset: the true value of a self-sufficient business The shift wasn’t just operational, it was transformational. What once felt like a demanding job became a genuine asset. The business could now grow in value and function without its founder’s daily involvement. A business that runs without the owner is more attractive to investors, successors or potential buyers. It becomes a self-sustaining engine — not just a source of income but a vehicle for long-term wealth and impact. And personally? Life improved dramatically. With more time and headspace, the owner reconnected with family, hobbies and health — priorities that had long been sidelined. A challenge to business owners: make yourself redundant There’s one question every business owner should ask themselves: “If I disappeared from my business for three months, what would happen?” If the answer is unsettling, it’s a signal to start making changes: Delegate more Document every repeatable task Build a team that doesn’t depend on one person. Because when the owner is no longer essential, the business becomes truly exceptional. Want a business that doesn’t rely on you? Building a self-running business doesn’t happen by accident — it’s a choice. Start small. Take action. And when you’re ready for support to create the systems that set you free, get in touch. It’s time to build something that thrives without you.

From air fryers to swimwear: tax deductions to avoid With the 2025 tax season fast in full swing the Australian Taxation Office (ATO) is reminding taxpayers to be careful when claiming work related expenses. This is in reaction to a spate of claims that didn’t quite pass the ‘pub test’. To give you a few examples of what didn’t get through… A mechanic attempting to claim an air fryer, microwave, two vacuum cleaners, TV, gaming console and gaming accessories as work related expenses A truck driver seeking to deduct swimwear purchased during transit due to hot weather A fashion industry manager attempting to claim over $10 000 in luxury branded clothing and accessories for work related events These claims were deemed personal in nature and lacked a sufficient connection to income earning activities. The advice here would be - if in doubt leave it out or run it by us. 2025 priorities The ATO is focusing on areas where frequent errors occur including: Work related expenses: as above, claims must have a clear connection to income earning activities and be substantiated with records including receipts or invoices. Even if an expense seems to relate to income earning activities, it can’t normally be claimed if it is a private expense. There are a wide range of common expenses that normally don’t qualify for a deduction. Working from home deductions: taxpayers must prove they incurred additional expenses due to working from home. The ATO offers two methods for calculating these deductions: the fixed rate method and the actual cost method (more detail below). Multiple income sources: all sources of income, including side hustles or gig economy work must be declared. Each source may have different deductions available.   Working from home deductions For those working from home there are two methods to calculate deductions: Fixed rate method: claim 70 cents per hour for additional running expenses such as electricity, internet and phone usage even if you don’t have a dedicated home office. This method can only be used if you have recorded the actual number of hours you worked from home across the income year. A reasonable estimate isn’t enough. Actual cost method: claim the actual expenses incurred, with records to substantiate the claims. This method potentially enables a larger deduction to be claimed, but the record keeping obligations are more onerous. It's important to note that double dipping is not allowed. For instance, if you claim deductions using the fixed rate method you can’t separately claim a deduction for your mobile phone costs. As always, if you’re unsure or need help with your tax return please reach out to the Collins Hume team on 02 6686 3000. Also peruse our Fact Sheets for more useful resources at tax time »

Here's the real reason things can slip through the cracks: Do you ever feel like your team isn’t fully owning their responsibilities? Or that you’re constantly following up to make sure things get done? You're not alone. Many business owners experience the same frustration: tasks slipping through the cracks, deadlines missed and nobody stepping up. The root cause? A lack of real accountability. Why it's so hard to keep people accountable As a business owner, you wear a lot of hats. You lead the business, manage the team and probably jump in to help customers too. That’s a tough balancing act — and it’s easy to let things slide, especially difficult conversations. But when there’s neither a clear structure for who’s responsible for what (nor a process to follow up) things fall apart. What accountability actually looks like True accountability starts with setting expectations people can actually control . For example: Your staff can’t always control how profitable a job is, but they can make sure it’s finished  on time They may not control the amount of incoming work, but they can keep you updated  if they’re hitting a bottleneck. It’s about shifting the focus to what’s actionable. When team members are responsible for meeting job timelines or alerting you when they can’t, you’ll spend less time chasing and more time leading. Remember your senior team Even your senior staff need clarity and follow-up, especially when it comes to things like: Unbilled work Outstanding payments Delays in quoting or delivering jobs   These issues have a direct impact on your cash flow and customer relationships. But unless you check in regularly (monthly is ideal), they’re often pushed aside for “more urgent” tasks. Consequences matter One of the biggest gaps in small businesses? No real consequences when things don’t happen. Not everything needs to be financial — sometimes just knowing someone will follow up is enough. But without a clear line of responsibility, nothing changes. Three questions to ask yourself today Are your team goals based on things they can control ? Do you have a process to check progress and follow up? Are there consequences — or is it all talk? Want to build a culture of accountability? If you’re tired of chasing your team and want a simple, effective accountability process that actually gets results, without micromanaging, we can help. Book a free discovery call with Nathan McGrath on 02 6686 3000 to explore how we can help you set clearer expectations, improve team performance and give you back your time.

Unpacking the promises and priorities of Labor's victory As the Labor party settle back into their seats having secured a majority in the House of Representatives, we look at the campaign promises and the unfinished business from the last term. Individuals Personal income tax cuts: the 2025-26 federal budget introduced a modest income tax cut for all taxpayers from 1 July 2026 and again from 1 July 2027. The tax rate for the $18,201-$45,000 tax bracket will reduce from its current rate of 16%, to 15% from 1 July 2026, then to 14% from 2027-28. The saving from the tax cut represents a maximum of $268 in the 2026-27 year and $536 from the 2027-28 year. Legislation enabling  the tax cut passed Parliament on 26 March 2025. $1,000 instant work related expenses tax deduction The Government has committed to providing taxpayers who earn labour income with a $1,000 shortcut work related deduction claim  on their tax return. Taxpayers who are likely to have claims higher than $1000 can claim in the usual way. The simplified tax deduction is only available to those earning labour income. Those earning business or investment income only will not be able to claim this shortcut deduction. Taxpayers will be able to claim other non-work related deductions in addition to the instant work related deduction. Energy rebate extended The 2025-26 federal budget extended energy rebates . From 1 July 2025, households and small business will be eligible for a further $150 energy rebate until the end of the 2025 calendar year. The rebates will automatically apply to electricity bills in quarterly instalments. Cheaper home batteries The Government has committed to reducing the cost of home batteries from 1 July 2025 . Through the scheme, households will be able to purchase a typical battery with a 30% discount on installed costs – saving around $4,000 on a typical battery. The initiative extends the existing Small-scale Renewable Energy Scheme . 5% deposit scheme for first home buyers The Government has committed to a 5% deposit scheme for all Australian first home buyers . Under the scheme the Government will underwrite eligible first home buyers, enabling them to purchase a property with a 5% deposit without the need for Lenders Mortgage Insurance. Expanding the existing first home buyer scheme, the media release says, “there will be higher property price limits and no caps on places or income, in a major expansion of the existing scheme.” The existing Home Guarantee Scheme  is limited in places and subject to income tests. The scheme is open to Australian citizens or permanent residents who have never owned property or land in Australia, or have not owned property or land in Australia in the last 10 years, and available to owner occupiers only. Superannuation Legislation enabling the proposed Division 296 tax on superannuation balances above $3m lapsed when Parliament dissolved. The question now is whether the Government will seek to push this reform through the Senate with the support of The Greens. Greens Senator Nick McKim has previously advocated for the Division 296 threshold to be lowered to $2m  and indexed to inflation. In addition, the Senator tied his support for the tax to a “prohibition for super funds to borrow to finance investments.” Originally intended to apply from 1 July 2025, if enacted, Division 296 will increase the headline tax rate to 30% for earnings on total superannuation balances (TSB) above $3m. The proposed calculation captures growth in TSB over the financial year allowing for contributions and withdrawals. This method captures both realised and unrealised gains, enabling negative earnings to be carried forward and offset against future years. Small business Extending the instant asset write-off for small business: An increase to the $1,000 instant asset write-off threshold has been a consistent feature of federal budgets by various governments as an incentive for small business investment. The extension of the increased instant asset write-off threshold to $20,000 for the 2024-25 financial was passed by Parliament  on 26 March 2025. The Government has committed to extending the $20,000 instant asset write-off threshold to 30 June 2026 . National small business strategy The Government has released its National small business strategy  for consultation. The strategy primarily addresses how different government jurisdictions work with small business and how to relieve some of the friction when dealing across government systems and requirements. Energy Green Aluminium Production Credit: The Government has $2bn set aside for a new Green Aluminium Production Credit to support Australian aluminium smelters switching to renewable electricity before 2036 (there are four of them). If you are wondering why the aluminium industry has been singled out, the reason is two-fold; aluminium is the second most used metal in the world and according to the Institute of Energy Economics and Financial Analysis , represents about 10% of Australia’s electricity demand - Tomago Aluminium just north of Newcastle in NSW, is the largest single user of electricity in the country with electricity making up about 40% of its costs. Transition from brown to green energy is not just a consumption issue for the industry, it’s a recreation of the value chain. Under the initiative, smelters will be able to negotiate an emissions linked credit contract payable per tonne of green aluminium produced for up to 10 years. The final credit rates will be based on individual facility circumstances and be dependent on reducing Scope 2 emissions. Scope 2 emissions are indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat or cooling. They account for around 85% of emissions from aluminium smelting. As always, if you’re unsure or need help with your tax return please reach out to the Collins Hume team on 02 6686 3000. Also peruse our Fact Sheets for more useful resources at tax time » See:  Aluminium to forge Australia's manufacturing future  and Department of Industry, Science and Resources. New Green Aluminium Production Credit will support the transition to green metals .

Case Study: Blushed Salon + Collins Hume When Melissa Edwards, founder of Blushed salon in Ballina, lost three staff members in a single week, she feared her business might not survive. “I lost many clients due to their departure and I felt that my professional reputation had taken a hit,” Melissa recalls. “I had to rethink my strategy and reassess what it was that I wanted in my business and life.” Like many creative entrepreneurs, Melissa knew her strengths lay in vision, service and style (not bookkeeping). What she needed was guidance, support and the financial clarity to rebuild stronger than ever. That’s where Collins Hume came in. Building Confidence Beyond the Salon Mirror Blushed is more than a beauty destination. With its signature blend of blonde perfection, hairstyling, makeup and lash and brow services, the Tamar Street salon is a sanctuary for self-care and confidence. But running a thriving personal service business comes with financial complexity and cash flow doesn’t style itself. Melissa knew she needed financial advisers who not only understood numbers but could help her understand them too. “ Peter and Kim  of Collins Hume are literal angels,” says Melissa. “I was not a numbers gal; I am a creative that knows hair! I have been very supported to learn the basics of Xero, BAS and GST, and have learnt how to do bookkeeping practices under the guidance of my CH team.” Structuring for the Future With Collins Hume’s support, Melissa found her rhythm. Our team worked closely with Melissa to build her knowledge of compliance, cash flow principles and digital systems like Xero – empowering her to make confident business decisions and stay aligned with ATO requirements. “Melissa’s resilience and passion are undeniable,” says Peter Fowler , Partner at Collins Hume. “She came to us at a point where many business owners might have walked away, but instead she leaned into learning and took control of her financials. It’s been a privilege to support that transformation.” A Beautiful Business Built on Purpose Melissa attributes her longevity to “understanding our WHY, and having like-minded business people in your corner.” Her advice to other business owners? “Understand your numbers. Business can be expensive and you must understand cash flow principles. Outsource elements to free up your time. Ensure you have a business mentor that understands business.” With a renewed sense of purpose, a growing team and solid financial systems in place, Blushed continues to be a source of inspiration – not just for the community it beautifies, but for business owners determined to bounce back. Need financial clarity in your business? Get in touch with Collins Hume to help turn your business challenges into defining moments. Explore Blushed: www.blushedandbeautiful.com.au Instagram: @blushed_salon_ballina Facebook: facebook.com/blushedsalonballina

The Organiser Everyone Needs in Their Life! For Collins Hume Executive Assistant Lani Winston, a typical day involves more than just making diary appointments and keeping clients compliant — it’s about bringing order, optimism and a spark to her role. Growing up in the hills of Nimbin and later relocating to Lismore, Lani now calls Caniaba home. Her journey to Collins Hume is rich in community spirit and experience, shaped by diverse roles in local business, fuel wholesaling and retirement financial planning. These taught her everything from corporate speak to the value of perseverance and connection — all before landing at Collins Hume in 2024. Lani joined Jamie Doyle’s team as Executive Assistant, and quickly found herself becoming a go-to organiser, compliance anchor and all-round social glue. With a Certificate III in Business Administration and an unstoppable “say yes” attitude, Lani thrives on variety bringing structure and energy to every task. Her work includes managing schedules, implementing client requests, establishing corporate structures and driving post-meeting action plans. The boys do the tax,” she laughs, “and I make sure everything else gets done.” But it’s not just about process — it’s about people. Lani is energised by others, often describing herself as the type of friend who organises everything — from flights to dinner bookings to dress codes and even your pantry! That flair has proven invaluable, especially as she plays a key role supporting Collins Hume’s Strategy360  rollout and leading database clean-up projects. It’s also why she’s the unofficial social secretary, organising EOFY and Christmas events that bring the team together. “I came from a small firm and missed the daily interaction with colleagues. When I met Naomi and Jamie , I asked about the social side of Collins Hume and soon was organising team events — now there’s always something fun in the pipeline,” she says. When Lani’s not streamlining systems or boosting morale at work, she’s embracing every moment of life. A sunrise-lover and morning person, she balances her dedication with downtime — whether that’s picnics with friends, exploring local wineries with her partner, reading classic literature, or caring for the “big dogs” (aka: donkeys) on their property. “I work to live, not live to work,” she says. “And I work hard so we can really enjoy life.”

How to Boost Your Business Value Before You Exit Succession planning tips for business owners who want a profitable future Australia is on the verge of the biggest intergenerational transfer of business wealth in its history. As thousands of Baby Boomer business owners prepare for retirement over the next decade, a wave of businesses will hit the market, creating both opportunity and risk. But here’s the catch: more businesses for sale doesn’t mean more buyers. In fact, it’s quite the opposite. Unless your business is in top shape, there’s a very real chance it will struggle to sell or, worse, not sell at all! That’s why now is the time to take a serious look at how your business is positioned and what will drive its appeal to future buyers or successors. Why Succession Planning Can’t Wait At Collins Hume, we work closely with business owners to help them prepare for sale or succession, and one truth stands out: businesses that plan ahead get better results. With more businesses on the market, buyers will gravitate toward high-performing, low-risk opportunities. Those without strong fundamentals may be left behind. Here’s how to make sure you’re not in that boat. Four Key Drivers of Business Value If you want to make your business more attractive and profitable – no matter whether you’re selling in five or 15 years – these are the areas that count most: 1. Sustainable Growth Buyers are looking for revenue they can rely on and scale. Businesses with a clear growth trajectory command higher prices. Demonstrating year-on-year growth or recurring revenue streams shows resilience and future earning potential, making your business a safer bet. 2. Capacity for Scale Does your business have the systems, people and infrastructure in place to keep growing? Buyers want to see that your business isn’t overly reliant on you or a few key people. Strong leadership teams, documented processes and scalable systems signal a well-run operation, and give confidence that performance will continue post-sale. 3. Profitability and ROI The numbers matter. Profit margins, strong cash flow and a high Return on Investment (ROI) are critical to valuation. Compare your business against top performers in your industry. Those in the top 25% consistently achieve better valuations. Ideally, your ROI should exceed 25% to make your business stand out. 4. Risk Management Perceived risk lowers value. Buyers don’t want surprises. They want certainty. The more your business has its legal, financial and operational risks covered, the more desirable it becomes. This includes solid governance, compliance, up-to-date contracts and documented policies. The Bottom Line: Why It Pays to Start Early Preparing your business for sale or succession isn’t just about exiting It’s about increasing your return The difference between a sale that maximises your life’s work and one that underdelivers often comes down to preparation. In a crowded market, high-quality businesses will always win. If you’re not where you want to be today, that’s okay – but now is the time to make changes that shift the needle. At Collins Hume, we help business owners like you understand your business’s value, identify improvement opportunities and put strategies in place to boost both performance and market appeal. Want to maximise your business value before you exit? Start the conversation today. Contact Collins Hume’s Strategy360 Business Advisory team to map out your strategy and secure the future you’ve worked so hard to build.

ST Electrical & Data launched in 2019 as a small but determined business. Based in Northern NSW and owned by Louise and Stuart Tyrrell, the company has grown rapidly, delivering electrical contracting services across residential, commercial and industrial projects. From NSW schools and emergency services stations to the Lismore Regional Gallery and flood recovery work, ST Electrical & Data has made its mark supporting the region during prosperity and hardship. But like many new business owners, their early days were filled with unknowns. “When we first started the business in 2019, we only had a small amount of knowledge of what we needed to run a business,” says Louise. That’s where Collins Hume came in, “With the support of Kristy and the team at Collins Hume, we have been able to navigate the business world with success and we are truly grateful.” Building a Business with Long-Term Thinking ST Electrical & Data credits their longevity to the people around them — both their own team and the clients they work with. “We have an amazing team working for us and we know that they are a huge part of our success. We also have a great relationship with our clients and work hard to keep them.” Their ability to think outside the box and communicate openly has helped them deliver on complex and high-pressure projects, including some during flood recovery when timeframes and expectations were tight. As the business expanded, Collins Hume's role evolved beyond mere compliance. They assisted ST Electrical & Data in setting up the optimal business structure, ensuring tax effective structuring and asset protection. This proactive strategy provided Louise and Stuart with the reassurance that their business foundations were solid, even as their workload and responsibilities grew. Facing Regional Construction Challenges Like many in the construction industry, ST Electrical & Data has had to navigate the fallout of builder liquidations. “This is a big challenge and we saw a few builders within this region go into liquidation last year.” With Collins Hume’s support, they’ve been able to better understand their financial position, manage risks and stay focused on the work at hand. Their advice to others in business is grounded in practical experience. “Keep all avenues open and ensure that you are not relying on one source of income. You have to diversify and consider all opportunities.” It’s this open mindset combined with professional accounting guidance that’s helped them scale sustainably in a competitive market. About ST Electrical & Data ST Electrical & Data delivers high-quality electrical contracting across residential, commercial and industrial sectors in Northern NSW. They’ve been involved in key regional projects, including Lismore flood recovery, school upgrades and emergency service infrastructure. Visit their website www.stelectricaldata.com.au  or Follow on their socials: Instagram @st_electrical_and_data Facebook ST Electrical & Data LinkedIn Stuart Tyrrell Ready to take your business to the next level? Contact Collins Hume's Strategy360  team today.

The Secret to Building a High-Performing Team and Thriving Business Sometimes we sound like a broken record, but we cannot say it often enough: that success is in managing your team and not in "doing" the technical work.     Recruit correctly and manage them well and you will build a great team, with great staff morale and great productivity, profitability and a lifestyle with little stress.  Even with the right recruiting, if managed poorly , you will have poor staff morale, poor productivity, profits, poor lifestyle and lots of stress with high staff turnover.     Poor management of your team will see you constantly dragged back into putting out fires, called working in Quad A (urgent & important) instead of in Quad B (important but not urgent, like training your staff).     Ok common sense you say. But it's harder said than done.  Good management is one of the hardest things to do and if done poorly can cause so much damage to so many people around you. Staff, clients/customers, suppliers and shareholders.     3. It begins with the right person in the right role followed up with micro training, which then reduces the need for micromanaging.     Don’t do the technical work, especially if you "enjoy it" because you are in the wrong seat.  You should enjoy people, to be a good manager. Get as much management training as you can.  Doing the work is easy. Managing staff is a skill and an art and very difficult. It’s not for everyone. But if you want to be successful you have to learn to manage people.     The How - a good manager plays the "ball" and not the "man."  Never blame or judge (playing the man). Focus on finding solutions to problems (playing the ball).    Having difficult conversations A manager has the ability to "confront" situations and have those difficult conversations and not shy away from them otherwise problems fester and grow into bigger problems. Like reprimanding poor behaviour or discussing an invoice with a difficult client.    "Confront" is not the same as being "confrontational". Having a difficult conversation is made easier by focusing on fixing the problem and not blaming or judging the person.     Try it. Next time one of your staff makes a mistake (no facial expressions) just focus on fixing the problem. No blaming or judging and see how it turns out.     If you have a manager who cannot confront situations and is unable to have difficult conversations than they are in the wrong seat and should reconsider whether they should be a manager.     Often if a person is not cut out to manage people, then even micro training will not help.     It’s difficult to change a leopard’s spots.       If a person finds they are constantly surrounded by problems or things are constantly falling around them then it’s a good sign they are in the wrong seat.     If it's not in their nature, get them out of managing otherwise they will do damage to people around them.     Very few people are outright bad. Most are just in the wrong seat. However, in the right seat, they are great!    Grinders should stay at grinding. Minders stay at managing, not grinding. Finders should stay in their lane.     Keep everyone in their lane and bring complementary skills together and watch your team fly.    Now is the time to engage with advisors who can help you navigate uncertainty and position your business for long-term success. Contact  Collins Hume’s Strategy360 today to explore how we can support your business with tailored financial insights and commercial strategies.

In business, as in life, the successful among us don't leave their futures to chance; they plan meticulously. It's about knowing where you're heading and setting up the right steps to get there. This isn't just about working hard — it's about working smart with a clear end in mind.    Why plan?    Planning gives you direction and purpose Planning gives your daily efforts direction, turning routine tasks into stepping stones towards your larger goals Without a plan, businesses often react to daily demands without progressing towards strategic goals, leading to burnout and inefficiency.    3 ways you can start to plan effectively:  Set Clear, Measurable Objectives: Define what success looks like for you, not just in business terms but in life.  Reverse-Engineer Your Path: Once you know your end goal, chart a course backward to your current position. Identify key milestones along the way.  Regular Check-ins: Set times to review your progress. Adjustments are not only expected; they’re necessary.  Remember, “You don’t plan to fail; you fail to plan.”     Let’s ensure your hard work today pays off tomorrow.  Now is the time to engage with advisors who can help you navigate uncertainty and position your business for long-term success. Contact  Collins Hume’s Strategy360 today to explore how we can support your business with tailored financial insights and commercial strategies.

The ATO’s updated small business benchmarking tool  The ATO has updated its small business benchmarks with the latest data taken from the 2022–23 financial year. These benchmarks cover 100 industries and allow small businesses to compare their performance, including turnover and expenses, against others in their industry. While the ATO doesn’t use the benchmarks in isolation, small businesses who fall outside the ATO’s benchmarks are more likely to trigger a closer examination from the ATO. The ATO uses information reported in business tax return with key performance benchmarks for the relevant industry to identify potential tax risks. Aside from determining the risk of unwanted attention from the ATO, the benchmarks can also be used to compare your business performance against other businesses in the same industry. The benchmarks could help you spot areas where you might be able to reduce costs or improve efficiency. The small business benchmarks can be accessed here » Aside from the small business benchmarks, the ATO also has a business viability assessment tool which can help business owners identify whether there are any obvious financial risks. The ATO consider a business to be viable if it is generating sufficient profits to meet commitments to creditors and provide a return to the business owners. If a business isn’t generating profits, the ATO looks at whether the business has sufficient cash reserves to sustain itself. The business viability assessment tool can be found here » Please let us know if you would like us to review your business performance and make recommendations on ways that performance could be improved. Talk with Collins Hume in Ballina on 02 6686 3000 about maximising your outcomes and improving business performance.

Tax planning opportunities for taxpayers With the end of the financial year fast approaching we outline some opportunities to maximise your deductions and give you the low down on areas at risk of increased ATO scrutiny. Bolstering superannuation  If growing your superannuation is a strategy you are pursuing, and your total superannuation balance allows it, you could make a one-off deductible contribution to your superannuation if you have not used your $30,000 cap. This cap includes superannuation guarantee paid by your employer, amounts you have salary sacrificed into super and any amounts you have contributed personally that will be claimed as a tax deduction. If your total superannuation balance on 30 June 2024 was below $500,000 you might be able to access any unused concessional cap amounts from the last five years in 2024-25 as a personal contribution. For example, if you were $8,000 under the cap in each of the last 5 years, you could contribute an additional $40,000 and take the tax deduction in this financial year at your personal tax rate. To make a deductible contribution to your superannuation, you need to be aged under 75, lodge a notice of intent to claim a deduction in the approved form (check with your superannuation fund), and receive an acknowledgement from your fund before you lodge your tax return. For those aged between 67 and 74, you can only claim a deduction on a personal contribution to super if you meet the work test (i.e., work at least 40 hours during a consecutive 30-day period in the income year, although some special exemptions might apply). If your spouse’s assessable income is less than $37,000 and you both meet the eligibility criteria, you could contribute to their superannuation and claim a $540 tax offset. If you are likely to face a tax bill this year and you made a capital gain on shares or property you sold, then making a larger personal superannuation contribution might help to offset the tax you owe.   Charitable donations  When you donate money (or sometimes property) to a registered deductible gift recipient (DGR), you can claim amounts of $2 and above as a tax deduction. The more tax you pay, the more valuable the tax deductible donation is to you. For example, a $10,000 donation to a DGR can create a $3,250 deduction for someone earning up to $120,000 but $4,500 to someone earning $180,000 or more (excluding Medicare levy). To be deductible, the donation must be a gift and not in exchange for something. Special rules apply for amounts relating to charity auctions and fundraising events run by a DGR. Philanthropic giving can be undertaken in a number of different ways. Rather than providing gifts to a specific charity, it might be worth exploring the option of giving to a public ancillary fund or setting up a private ancillary fund. Donations made to these funds can often qualify for an immediate deduction, with the fund then investing and managing the money over time. The fund generally needs to distribute a certain portion of its net assets to DGRs each year. Investment property owners  If you do not have one already, a depreciation schedule is a report that helps you calculate deductions for the natural wear and tear over time on your investment property. Depending on your property, it might help to maximise your deductions. Risks  Work from home expenses  Working from home is a normal part of life for many workers, and while you can’t claim the cost of your morning coffee, biscuits or toilet paper (seriously, people have tried), you can claim certain additional expenses you incur. But, work from home expenses are an area of ATO scrutiny. There are two methods of claiming your work from home expenses; the short-cut method, and the actual method: The short-cut method allows you to claim a fixed rate of 70c for every hour you work from home for the year ending 30 June 2025. This covers your energy expenses (electricity and gas), internet expenses, mobile and home phone expenses, and stationery and computer consumables such as ink and paper. To use this method, it’s essential that you keep a record of the actual days and times you work from home because the ATO has stated that they will not accept estimates. The alternative is to claim the actual expenses you have incurred on top of your normal running costs for working from home. You will need copies of your expenses, and your diary for at least 4 continuous weeks that represents your typical work pattern. Landlords beware If you own an investment property, a key concept to understand is that you can only claim a deduction for expenses you incurred in the course of earning income. That is, the property normally needs to be rented or genuinely available for rent to claim the expenses. Sounds obvious but taxpayers claiming investment property expenses when the property was being used by family or friends, taken off the market for some reason or listed for an unreasonable rental rate, is a major focus for the ATO, particularly if your property is in a holiday hotspot. There are a series of issues the ATO is actively pursuing this tax season. These include: Refinancing and redrawing loans – you can normally claim interest on the amount borrowed for the rental property as a deduction. However, where any part of the loan relates to personal expenses, or where part of the loan has been refinanced to free up cash for your personal needs (school fees, holidays, etc) then the loan expenses need to be apportioned and only that portion that relates to the rental property can be claimed. The ATO matches data from financial institutions to identify taxpayers who are claiming more than they should for interest expenses. The difference between repairs and maintenance and capital improvements  –  while repairs and maintenance costs can often be claimed immediately, a deduction for capital works is generally spread over a number of years. Repairs and maintenance expenses must relate directly to the wear and tear resulting from the property being rented out and generally involve restoring the property back to its previous state, for example, replacing damaged palings of a fence. You cannot claim repairs required when you first purchased the property. Capital works however, such as structural improvements to the property, are normally deducted at 2.5% of the construction cost for 40 years from the date construction was completed. Where you replace an entire asset, like a hot water system, this is a depreciating asset and the deduction is claimed over time (different rates and time periods apply to different assets). Co-owned property  – rental income and expenses must normally be claimed according to your legal interest in the property. Joint tenant owners must claim 50% of the expenses and income, and tenants in common according to their legal ownership percentage. It does not matter who actually paid for the expenses. Gig economy income It’s essential that any income (including money, appearance fees, and ‘gifts’) earned from platforms such as Airbnb, Stayz, Uber, YouTube, etc., is declared in your tax return. The tax rules consider that you have earned the income “as soon as it is applied or dealt with in any way on your behalf or as you direct”. If you are a content creator for example, this is when your account is credited, not when you direct the money to be paid to your personal or business account. Squirrelling it away from the ATO in your platform account won’t protect you from paying tax on it. Since 1 July 2023, the platforms delivering ride-sourcing, taxi travel, and short-term accommodation (under 90 days), have been required to report transactions made through their platform to the ATO under the sharing economy reporting regime so expect the ATO to utilise data matching activities to identify unreported income. Other sharing economy platforms have been required to start reporting from 1 July 2024. If you have income you have not declared, do it now before the ATO discover it and apply penalties and interest. Need tax planning support or have tax deduction questions? 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