RBizz Corporate Accountants - Resources #ATO Rules

Alternatives to the Small Business Superannuation Clearing House

Fri, 10 Apr 2026 13:42:39 +1000

Alternatives to the Small Business Superannuation Clearing House

On 1 July 2026, the Small Business Superannuation Clearing House (SBSCH) will close permanently as part of the Payday Super reforms. With only a few months left, employers still using the SBSCH need to find an alternative option, and soon.

Don’t wait until the last minute

If you currently pay your superannuation quarterly, the Australian Taxation Office (ATO) recommends that the super payment for the January-March 2026 quarter (due 28 April 2026) be the last payment you make through the SBSCH. That way, you give yourself time to find and adjust to a new provider before you need to pay super for the April-June 2026 quarter.

Remember, the April –June quarter payment (due 28 July 2026) cannot be made using the SBSCH after 30 June 2026.

Choosing a new provider

There are a lot of different options out there to replace the SBSCH:Check your existing payroll software, as it may well already have super functions that you can use to pay your employees’ super guarantee contributions.

Check other payroll software or providers that meet all SuperStream requirements.

Find a commercial clearing house or super fund that provides payment options—that might include your default super fund.

Once you’ve picked your new provider, make sure to trial it out well before 1 July 2026. That way, you can get comfortable with the new platform while also having the chance to troubleshoot any potential errors before Payday Super comes into effect.

As a reminder, Payday Super requires that employers pay their employees’ super at the same time as their salary and wages, with funds to be received into employees’ nominated funds within seven business days of payday.

Closing up your SBSCH account

After 11:59 pm AEST on 30 June 2026, you won’t be able to log in to the SBSCH to submit instructions or view records, so make sure that you’ve finalised any payments and downloaded any reports from the SBSCH before it closes for good.

Make sure you’re Payday Super ready

Need help picking an alternative to the Small Business Superannuation Clearing House, or looking for further advice about Payday Super? Get in touch with a member of our team – we’d be happy to walk you through your options, and put a plan in place to get your business ready ahead of 1 July.

Q3 Super & Easter/Anzac Hours

Tue, 31 Mar 2026 15:30:24 +1100

Q3 Super & Easter/Anzac Hours

April is a busy month with several public holidays and tax deadlines.

Office Hours: Our office will be closed for the Easter break (3–6 April) and Anzac Day (27 April observation).

Superannuation: Q3 Super payments are due by 28 April. Because of the holiday clusters, we strongly suggest processing these by 20 April to ensure they clear in time.

Quarterly BAS: Your March quarter BAS is also due on 28 April.

If you’re planning to be away over the school holidays, let’s get your numbers sorted early so you can enjoy your break without any compliance worries!

Taking Steps to Stay Compliant with ATO Rules

Tue, 24 Mar 2026 20:03:15 +1100

Taking Steps to Stay Compliant with ATO Rules

“Every year we see small businesses run into avoidable issues because they haven’t kept accurate records, reported all their income or managed their cashflow effectively”

Angela Allen, ATO Assistant Commissioner

The Australian Taxation Office (ATO) is encouraging Aussie small businesses to stay compliant. By doing so, you avoid the problems, penalties and fines that can occur when your business fails to follow the rules and compliance duties set out by the ATO.

What can you do to improve your overall tax compliance position?

ere are 5 key ways you can ensure your business stays in the ATO’s good books.

1. Stay on top of your ATO debts

The ATO wants you to proactively manage your tax debts. If you can engage early with the ATO, whether that’s to set up a payment plan or even make a prepayment, this makes the debt easier to manage and removes the need for stronger enforcement.

2. Separate accounts for separate obligations

Make sure you have dedicated bank accounts for GST and PAYG withholding. This protects your essential cashflow and stops cash from being used for operational expenses, so you always have funds available for BAS lodgements and other contributions.

3. Good records, good business

Keeping accurate records is a legal requirement for a small business. The ATO is keen for businesses to transition from manual ‘shoebox’ methods to digital systems and ATO online services. This minimises errors and helps you provide all your tax information in a digital format.

4. Prepare for Payday Super

Starting 1 July 2026, Payday Super will come into force, making it mandatory for employers to pay Superannuation Guarantee contributions on each payday. Review your payroll systems now to make sure they can manage more frequent reporting and payment requirements.

5. Closing or winding down a business

If you’re closing down your business and exiting the market, you must meet your final obligations, including cancelling ABNs and lodging your final tax returns. This prevents future compliance issues and ensures all employee entitlements are settled.

ATO Advice

The ATO advises businesses to work with registered tax practitioners. Working with a qualified tax adviser from the Tax Practitioners Board keeps you in line with all current tax laws.

Talk to our tax team and let’s make sure you’re 100% compliant with ATO rules.

Using business money and assets for personal use or benefit?

Tue, 24 Mar 2026 20:02:35 +1100

Using business money and assets for personal use or benefit?

The Australian Taxation Office (ATO) regularly publishes focus areas for small businesses. One of the top areas where the ATO regularly sees errors is where a private company shareholder uses business money and assets for personal use or benefit, which can lead to Division 7A issues.

What is Division 7A?

Division 7A is an anti-avoidance rule designed to stop the profits or assets of a private company from being provided to its shareholders or their associates tax free. Think of a small business shareholder using a company credit card to pay for their child’s school fees, or using company money to pay for a holiday.

If a shareholder uses company money for private purposes and doesn’t do anything to resolve the situation, then Division 7A can step in to treat those amounts as unfranked dividends, which are taxed in the shareholder’s personal tax return at their own marginal rate.

Common misunderstanding can lead to errors

One of the most common Division 7A errors the ATO sees is caused by shareholders and their associates not understanding that a company is a separate legal entity. This legal separation means that a company’s money and assets are its own, and should not be ‘dipped into’ by shareholders (and if they are, such amounts should be paid back within the relevant time).For this reason, it’s a good idea to have separate bank accounts or credit cards for private and company expenses, to make it easier to distinguish between private and business expenditure.

How to avoid Division 7A issues

Besides paying back the amount in full, another common way to avoid a Division 7A issue is to borrow the amount as part of a complying loan agreement.

There’s no set format to a complying loan agreement, but it should be in writing and contain at least:

Identitiy of the borrower and lender,
Loan amount,
The requirement to repay the loan,
Interest rate payable (no less than the Division 7A benchmark rate), and
Term of the loan (generally up to 7 years, unless the loan is secured by a registered mortgage over real property)
A complying loan agreement must be signed and dated before a company’s relevant lodgment day for the income year in which the loan was paid.

Don’t get caught out by Division 7A

Have questions about Division 7A? Come and speak to a member of our team. We can make sure that you’re meeting all Division 7A obligations, including meeting complying loan requirements.

Prepare for Payday Super: Employer Readiness Steps

Thu, 19 Mar 2026 14:28:26 +1100

Prepare for Payday Super: Employer Readiness Steps

From 1 July 2026, the way you pay your employees’ super is changing. Instead of making quarterly super payments to your employees’ funds, contributions will essentially need to be paid at the same time as salary and wages.

‘Payday Super’ marks a significant change for employers. To make sure your business isn’t caught out, make sure you’ve taken the following readiness steps, in line with ATO guidance.

Understand the new requirements

Under the new regime, super guarantee payments must reach your employees’ super funds within seven business days of payday, though longer deadlines apply in some cases, such as for new employees. The amount of contribution is calculated as 12% of an employee’s ‘qualifying earnings’ – a new term that incorporates and expands on the previous concept of ordinary time earnings.

If contributions are not made on time, in full and to the correct fund, the super guarantee charge (SGC) may apply.

Plan your transition

The ATO recommends that employers do the work now to plan and prepare for Payday Super. This includes:

Deciding when, exactly, your business will move to Payday Super (noting early adoption is perfectly fine).
Reviewing your cash flow position, to make sure your business can cope with a shift away from quarterly to ‘real-time’ super payments.
Checking your current payroll and business processes, such as confirming that super fund details for all eligible employees are up-to-date and complete.

Lock in plans

Once your business has determined when it will start using Payday Super, the next step is to make sure all relevant systems are ready for the change. That includes the payroll software you use, as well as any clearing houses or super fund portals you may use to make super guarantee contributions.

For any businesses that use the Small Business Superannuation Clearing House (SBSCH), remember that it will close permanently from 1 July 2026 as part of the Payday Super reforms.

Finally, take the time to troubleshoot any potential issues that might arise once Payday Super is live. For example, your business may need to implement a process quickly to correct any errors that might arise when paying employees’ super contributions.

Remember, from 1 July 2026…

…Payday Super is mandatory.

Any businesses that do not adapt to the new rules and continue to pay super quarterly run the risk of being on the receiving end of compliance action by the ATO.

If your business needs help preparing for Payday Super, feel free to reach out to a member of our team. We can walk you through the requirements of the new legislation and troubleshoot any potential pitfalls well ahead of 1 July.

The FBT Year Is Ending: What You Need to Do

Sun, 15 Mar 2026 17:32:05 +1100

The FBT Year Is Ending: What You Need to Do

While the standard financial year ends in June, the Fringe Benefits Tax (FBT) year actually ends on 31 March.

If your business provides benefits like company cars, gym memberships, or entertainment to employees, now is the time to gather your records. For those with company vehicles, please remember to take an odometer reading on 31 March.

We can help you work through the details and ensure you’re not paying more FBT than necessary.

Talk to Us About Your FBT Obligations

If your business provides employee benefits like company cars or entertainment, now is the time to review your records. Our team can help you prepare your FBT details and ensure you’re meeting your obligations while avoiding unnecessary tax costs.

ATO Launches Compliance Support for New Businesses

Wed, 14 Jan 2026 02:46:21 +1100

ATO Launches Compliance Support for New Businesses

The Australian Taxation Office (ATO) is rolling out its “Ready for Business” campaign, providing new small business owners with guidance on key tax and compliance obligations. Holders of ABNs will receive emails in the coming months covering topics such as ABN obligations, business restructures, GST registration, and employer responsibilities.

Key Focus Areas for New Businesses

GST registration – Businesses must register for GST if their annual turnover exceeds $75,000 ($150,000 for non-profits). For taxi and ride-share services, registration is compulsory regardless of turnover.

PAYG instalments – To avoid a large first-year tax bill, the ATO encourages new businesses to voluntarily prepay their estimated tax liability through PAYG instalments.

PAYG withholding & superannuation – Small businesses with employees need to set aside funds for PAYG withholding and super contributions, rather than using them for day-to-day cash flow.

Side hustles – Even small side activities may qualify as a business. Owners should check whether they need to account for GST, PAYG, and super obligations. ATO Deputy Commissioner noted that small businesses working with a registered tax professional are more likely to remain compliant and avoid unexpected issues.

Need help understanding your obligations? Contact RBizz Corporate Accountants for expert guidance on tax, compliance, and business advisory.

ATO finalises guidance on using raised capital to fund franked distributions

Mon, 08 Dec 2025 11:29:22 +1100

ATO finalises guidance on using raised capital to fund franked distributions

The ATO has finalised the Practical Compliance Guideline PCG 2025/3, which outlines the types of arrangements that may be at a risk of non-compliance with the s 207-159 of the Income Tax Assessment Act 1997 (ITAA 1997).

The new guideline should be read along with the Taxpayer Alert TA 2015/2, issued by the ATO in May 2015, addressing their concerns regarding arrangements where private companies raise funds (often through debt or equity) to make distributions to shareholders, particularly where the distributions are debited to the share capital account rather than retained earnings.

Types of distributions under scrutiny

In effect from 28 November 2023, s 207-159 of the ITAA 1997 applies to deem certain distributions funded by capital raising activities unfrankable if they fail to meet a prescribed criterion.

The legislative restrictions may apply if the relevant distribution does not meet the following requirements as outlined in the PCG 2025/3:

Consistency with established practice — the entity does not have an established practice of making distributions of that kind, or, if it does have an established practice, the relevant distribution does not align with that practice.
Equity interests issued — there must be an issuance of equity interests by the company or related entities around the time of the relevant distribution.
Principal effect and purpose — the equity interests were issued for a purpose (other than incidental) to directly or indirectly fund a substantial part of the relevant distribution.
No regulatory requirement — the equity issuance is not a direct response to regulatory requirements from APRA or ASIC.

Next Steps

This finalised guidance is ATO’s reminder that arrangements lacking genuine commercial purpose and designed primarily for tax advantage may be subject to anti-avoidance rules and recharacterisation.

There may be many implications for arrangements where s 207-159 applies to a dividend distribution.

Implications for shareholders include:

Shareholders receiving an unfrankable distribution do not receive a tax offset for the franking credits, as there are none attached to the distribution. This means they cannot reduce their tax liability using franking credits.
Without franking credits, shareholders may face a higher effective tax rate on the distribution, as they must pay tax on the full amount of the distribution without any offset for tax already paid by the company.
Non-resident shareholders may be subject to withholding tax on unfrankable distributions, as these distributions do not benefit from the imputation system that typically reduces or eliminates withholding tax.

Implications for the distributing entity include:

No franking debits get recorded for an unfrankable distribution.
The ATO will closely examine distributions that appear artificial or contrived, particularly that do not align with an entity’s historical distribution practices, non-compliance with the guidelines may lead to penalties and adjustments in tax obligations.

Contact Us

We can help you with navigating through the changes that may apply to your situation. For further discussion, please feel free to contact our office.

Business confidence is on the up: how to overcome the big challenges

Fri, 07 Nov 2025 18:34:55 +1100

Business confidence is on the up: how to overcome the big challenges

Trading conditions for Aussie small businesses have been challenging for the past few years. But there are signs that business confidence is increasing.

National Australia Bank’s index of business confidence climbed to +7 in July 2025, up from +5 in June, the highest reading since August 2022.

NAB’s latest SME Business Insights report does show a small dip in business confidence for August 2025, with a decrease of 3 points. But the report also shows that small and medium-sized businesses (SMBs) across Australia are making bold moves to tackle the challenges that are keeping them awake at night.

What Aussie SMBs are doing to tackle uncertainty

Data from the Q2 2025 edition of NAB’s SME Business Insights reveals that there are three key areas that are currently worrying Aussie small business owners:

Cashflow pressures (44%)
Profitability issues (38%)
Government policies and regulations (37%)

According to NAB’s survey, business owners are responding with ‘grit and innovation’. Half of those surveyed are actively cutting costs and renegotiating supplier terms, while others are ramping up marketing efforts (37%), investing in talent (29%), and reimagining pricing strategies (29%) to stay competitive.

But what can your business do to tackle the top three SMB worries?

Ways to boost your own confidence as a small business

Cashflow, profitability and regulatory worries are major concerns for your small business. But with some strategic and tactical thinking, there are ways to overcome the challenges.

Here are three fundamental ways to tackle these concerns:

1. Cashflow pressures:

There are a number of tactics you can use to combat any cashflow pressures.

Switching to e-invoicing will speed up payments and improve your liquidity. Reviewing your pricing can also help, by extending your margins and bringing in greater revenues. Cashflow forecasting is another area to explore, giving you prior warning of any upcoming cashflow gaps.

2. Profitability issues:

To improve profitability, you should regularly review and manage your costs.

A company-wide review of your operational spending helps you find the key areas where expenses can be cut. Reduced operational expenditure means improved gross margins and a better bottom line at the end of the period. With better profits, you have the capital to invest in new equipment, talent and the future of the business.

3. Regulatory worries:

It’s vital to be on top of changing tax legislation, legal requirements and necessary licenses.

You can use free government resources, like the Australian Business Licence and Information Service (ABLIS), to stay compliant. This helps avoid potential penalties and ensures you meet all your legal requirements as a small business. The Australian Taxation Office (ATO) also offers a free Tax Time Toolkit for small businesses that helps you stay compliant with all the relevant business taxes, including new tax measures and digital requirements.

Want help with your strategy and tactics?

The fundamental challenges of trading are not going away any time soon. But by updating your strategy and tactics, you stabilise your financial foundations and remove some of the worries.

We’ll work with you to review your pricing strategy, operational spending and regulatory compliance, helping to reduce your concerns and boost your own business confidence.

5 Quick Tax Tips for Small Business Owners

Fri, 07 Nov 2025 18:33:29 +1100

5 Quick Tax Tips for Small Business Owners

Running a business means juggling many priorities, and tax is often one of the trickiest. Here are five quick tips to make tax time less stressful and more efficient:

Keep digital records – Store receipts and invoices digitally so you’re audit-ready anytime.
Separate business and personal accounts – This makes tax prep cleaner and avoids messy records.
Know your deductions – Don’t miss out on allowable expenses like home office, equipment, and vehicle use.
Plan for GST and PAYG – Put aside money regularly so you’re not caught short when ATO deadlines arrive.
Check the ATO’s small business resources – Toolkits and free online courses can save you from costly mistakes.

Staying organised and proactive with tax isn’t just about compliance — it helps you make smarter business decisions too. If you’re unsure where to start, talk to us so we can help you plan ahead.