RBizz Corporate Accountants - Resources #Small Businesses

Common Tax Deductions Australian Businesses Miss Every Year

Mon, 13 Jul 2026 12:21:13 +1000

Common Tax Deductions Australian Businesses Miss Every Year

Every tax season, business owners across Australia pay more tax than they need to — not because they're doing anything wrong, but because they're missing deductions they're legitimately entitled to claim.

Some of these get missed because they're easy to overlook. Others get missed because business owners assume "it's probably not deductible" and don't bother checking. Either way, the result is the same: money left on the table that could have gone back into the business.

Here are the deductions we see businesses miss most often.

1. Home Office Expenses

Equipment, vehicles, tools, and technology all lose value over time — and that loss is deductible. Businesses frequently miss:

Instant asset write-off eligibility on smaller purchases
Depreciation schedules on larger assets that were never properly set up
Software and subscription-based tools treated as an expense rather than a depreciable asset (or vice versa, depending on the accounting treatment)

An outdated or missing depreciation schedule is one of the most common gaps we find when reviewing a new client's accounts.

2. Depreciation on Assets

Partnerships and trusts sit in the middle — they lodge a tax return, but generally don't pay tax at the entity level. Instead, income flows through to partners or beneficiaries.

What applies to you:

The entity itself lodges an information return, but tax is paid by the individuals/entities receiving the distributed income.
Trust distribution resolutions must generally be finalised before 30 June — missing this can result in the trustee being taxed at the top marginal rate on undistributed income.
Partnerships need clear, documented profit-sharing arrangements, especially if they've changed during the year.
GST and PAYG withholding obligations still apply at the entity level if registered and employing staff.

What to prepare now: Confirm trust resolutions are drafted and signed before the cut-off, and review partner drawings against actual profit share to avoid surprises at tax time.

3. Professional Development & Training

Money spent upskilling yourself or your staff in a way that relates to your current business is generally deductible — including:

Industry courses and certifications
Conference and seminar costs
Relevant subscriptions, journals, and memberships

This is frequently missed because it doesn't feel like a "business cost" in the way rent or wages do.

4. Bad Debts

If a customer genuinely won't pay and you've written the debt off in your accounts before year-end, that amount may be claimable as a deduction. Many businesses either forget to formally write off the debt, or don't realise the deduction exists at all.

5. Motor Vehicle Expenses

Vehicle-related deductions are commonly under-claimed because business owners either:

Don't keep a logbook, so they default to the lower cents-per-kilometre method even when the logbook method would produce a bigger deduction
Forget to include registration, insurance, and depreciation alongside fuel costs
Mix up personal and business use without a clear record to substantiate the split

6. Superannuation Contributions (Paid on Time)

Super paid to yourself or employees is only deductible in the financial year it's actually paid — not accrued. Businesses that pay their final quarter's super slightly late (even by a few days into the new financial year) can lose the deduction for that year entirely.

7. Prepaid Expenses

Some businesses can claim a deduction in the current year for expenses prepaid for a period extending into the next financial year — such as insurance, subscriptions, or rent — depending on eligibility rules. This is a timing opportunity that's frequently missed simply because it isn't top of mind before 30 June.

Why These Get Missed

None of these deductions are obscure loopholes. They're legitimate, well-established parts of the tax system. They get missed because:

Records aren't detailed enough to substantiate the claim
Business owners aren't aware the deduction applies to their situation
There's no proactive review before lodgment — just a reactive one

The Fix Is Usually a Conversation, Not a Complication

Most of these deductions don't require a major overhaul to claim correctly — they require a proper year-end review with someone who knows what to look for.

RBizz Corporate Accountants reviews your business finances with an eye for exactly these gaps — schedule a free consultation to see what you might be missing.

Tax Season in Australia: What Companies, Businesses & Sole Traders Need to Know

Thu, 09 Jul 2026 18:18:16 +1000

Tax Season in Australia: What Companies, Businesses & Sole Traders Need to Know

Tax season doesn't look the same for every business. A company, a small business partnership, and a sole trader all sit under the same ATO calendar — but the obligations, paperwork, and risks each one faces can be quite different.

Understanding which rules apply to your structure isn't just about compliance. It's about making sure you're not overpaying, under-preparing, or missing something your entity type is specifically exposed to.

Here's how tax season breaks down across the three most common business structures in Australia.

Companies

Companies face the most structured — and often the most complex — reporting obligations of the three.

What applies to you:

Company tax is a flat rate (currently 25% for base rate entities, 30% for others) — not dependent on the owner's personal income like a sole trader.
Company tax returns are generally due by 28 February for companies not using a tax agent, or later if lodging through a registered agent's program.
Directors have separate obligations, including Director ID requirements and personal liability exposure for unpaid PAYG and SG amounts under the Director Penalty Notice regime.
Franking credits and dividend distributions add another compliance layer if the company pays dividends to shareholders.

What to prepare now: Reconcile trial balances, confirm any Division 7A loan repayments are on track, and review whether retained profits should be distributed or reinvested before year-end.

Businesses (Partnerships & Trusts)

Partnerships and trusts sit in the middle — they lodge a tax return, but generally don't pay tax at the entity level. Instead, income flows through to partners or beneficiaries.

What applies to you:

The entity itself lodges an information return, but tax is paid by the individuals/entities receiving the distributed income.
Trust distribution resolutions must generally be finalised before 30 June — missing this can result in the trustee being taxed at the top marginal rate on undistributed income.
Partnerships need clear, documented profit-sharing arrangements, especially if they've changed during the year.
GST and PAYG withholding obligations still apply at the entity level if registered and employing staff.

What to prepare now: Confirm trust resolutions are drafted and signed before the cut-off, and review partner drawings against actual profit share to avoid surprises at tax time.

Sole Traders

Sole traders have the simplest legal structure — but that doesn't mean the simplest tax outcome, since business income is taxed at personal marginal rates.

What applies to you:

Business income and expenses are reported on your individual tax return (via a business schedule), not a separate entity return.
There's no company tax rate to fall back on — profit is taxed progressively, which can mean a heavier tax burden in a strong year.
PAYG instalments are common for sole traders once income crosses ATO thresholds, meaning tax is paid throughout the year, not just at lodgment.
Superannuation isn't compulsory for yourself as a sole trader, but voluntary contributions can be a valuable tax-planning lever.

What to prepare now: Review whether your income level this year makes moving to a company or trust structure worth exploring, and check your PAYG instalment amount reflects your actual current income.

The One Thing All Three Have in Common

Regardless of structure, the businesses that move through tax season smoothly all do the same three things:

Keep records current, not retrospective. Monthly reconciliation beats a scramble every June.
Know their specific lodgment dates. "Tax season" isn't one date — it's a calendar of dates that differs by structure and lodgment method.
Talk to their accountant before decisions, not after. Structure changes, distributions, and large purchases are far easier to plan for than to undo.

The Getting the Right Structure Working for You Line

Whether you're a company managing director obligations, a trust finalising distribution resolutions, or a sole trader weighing up whether it's time to incorporate, the right guidance early in the year makes tax season a formality rather than a fire drill.

Rbizz Corporate Accountants works with companies, partnerships, trusts, and sole traders across every stage of the tax calendar — schedule a free consultation to see where your business stands.

Using asset finance and technology to boost productivity

Fri, 03 Jul 2026 00:55:27 +1000

Using asset finance and technology to boost productivity

“More Australian businesses are getting productivity gains from upgrading old equipment, tech, and vehicles, with farmers and manufacturers leading a recent investment surge.”

CommBank has released data from its asset finance department showing that there are clear productivity gains to be made from investing in new technology.

The importance of established technologies

Although we’re used to seeing the advantages of AI and software tech being trumpeted, we mustn’t forget the importance of vehicle and equipment technologies.

According to CommBank, Australian businesses are reporting major productivity gains after upgrading vehicles, machinery and technology:

87.6% of businesses reported productivity gains above 10% following recent asset upgrades.
CBA recorded a 20% year-on-year increase in vehicle and equipment financing in December 2025.

The strongest level of growth was recorded across equipment categories central to Australia’s industrial and regional sectors.

December 2024 vs December 2025 CBA Asset financing

Agricultural machinery – up 116%
Manufacturing & industrial equipment – up 76%
Retail and office fitouts – up 64%
Technology assets – up 48%
Trucks – up 18%

How asset finance opens up your access to new technologies

Investing in new technologies means having the necessary capital to fund these investments. Asset finance is a key way to source this funding and to drive your productivity as a business.

If you’re looking to buy new vehicles, equipment or machinery, come and talk to us about the key ways that asset finance can open up new routes to funding.

Basics strategic advice: how do accountants support your financial performance?

Fri, 03 Jul 2026 00:50:06 +1000

Basics strategic advice: how do accountants support your financial performance?

“Q: How does an accountant support my financial performance?”

We’re all used to the idea of a business needing an accountant. But have you ever stopped to think what a good accountant and business adviser can actually bring to your company?

Advances in technology, software and AI are changing our expectations of what a basic accountant/business owner relationship can offer. So, it’s important to reassess your expectations and to find out where we can add real, additional value.

“A: Your accountant is now a full-fledged business adviser, ready to help you review, manage and transform your finances and strategy.”

In previous decades, your accountant dealt primarily with historical data – the transactions and cash inflows/outflows that had happened in the past.

Today, with access to so much smart forecasting, data analysis and forward-looking scenario-planning, we can tell you far more about the future of your business.

Let’s look at four ways we can partner with your business:

Analysing your financial performance:

We’ll track your key performance indicators (KPIs) and business data to look for areas where the business may be underperforming. We can offer future-facing advice on cost-reduction strategies, operational efficiencies and key ways to improve your overall financial performance.

Optimising your revenue generation:

Improving revenues is a vital step. We can review your pricing models, customer lifetime value and sales mix to find the most lucrative revenue streams. By drilling down into your revenue data, we can suggest a new strategy that will translate into scalable, repeatable top-line growth.

Managing cashflow and your cash runway:

Cashflow forecasting tools allow us to see far into the future of your cashflow, spotting the liquidity gaps before they occur. We’ll also look over your accounts receivable and payable cycles to ensure you're in a positive cashflow position, with a solid cash runway to fund your ongoing operations.

Driving profitability and planning dividends:

By performing what-if scenario modelling, we’ll help you maximise your net margins and drive profits. We can also advise you on the most tax-efficient ways to distribute profits and dividends to yourself and your fellow directors. This balances your own need to extract wealth from the business while also leaving sufficient earnings for future reinvestment.

Your accountant is one of the most important partners your business will have across its lifetime.

We’re here to reveal the narratives in your numbers, show you the threats and opportunities and come up with a strategy that pushes your financial performance to new heights.

Book some time with our team to talk through how we can boost your financial performance.

Choosing the Right Business Structure

Fri, 03 Jul 2026 00:48:50 +1000

Choosing the Right Business Structure

Starting a business can be daunting between sales, marketing, and day-to-day financing, plus there is the big question of which business structure to use.

The three most common types – a company, a partnership, or a sole trader – have very different cost and administrative burdens, as well as different implications when it comes to legal status and liability.

Find out more about the pros and cons of each below.

Going it alone as a sole trader

Working within a partnership

Operating as a Company

Which structure is best?

Choosing a business structure is always a very personal decision. Need help deciding which one is right for your circumstances? Book some time with our team today, we’d be happy to discuss the best option for you.

Understanding Your Balance Sheet

Thu, 07 May 2026 23:10:09 +1000

Understanding Your Balance Sheet

To understand the financial position of a business at a specific point of time, look at the balance sheet. The balance sheet may also be called the statement of financial position. Together with the Profit and Loss Statement, and possibly other reports such as the Statement of Cash-flow, these reports provide a complete understanding of the financial position and business performance.

So what’s involved: The balance sheet has three sections: assets, liabilities and equity.

What are Assets?

Assets are things and resources that a company owns. They have current and/or future value and can be measured in currency.

Assets may be subdivided on the balance sheet into bank accounts, current assets, (receivable within one year), fixed assets, inventory, non-current (or long term) assets, intangible assets and prepayments.

These include banks and other financial accounts held, accounts receivable (trade debtors), supplier deposits or bonds, stock on hand, property, equipment, vehicles, investments and intellectual property. All of these can be translated into monetary value.

What are Liabilities?

Liabilities are amounts owed to suppliers and other creditors for goods or services already received. Liabilities may also include amounts received in advance for future services yet to be provided by the business.

Liabilities are generally subdivided into current, (payable within one year), and non-current liabilities.

These include accounts payable (trade creditors), payroll obligations (salaries, taxes, superannuation), interest, customer deposits received, warranties and loans.

What is Equity?

Equity includes owner funds contributed, drawings, retained earnings and stocks. The value of the equity equals assets minus liabilities.

Transactions that affect profit and loss accounts also affect balance sheet accounts. For example, providing a service increases the accounts receivable balance, which therefore increases the equity.

The Balance Sheet Equation

The balance sheet must always balance! Asset value = liabilities + equity.

For example, if you buy a new vehicle for the business at say 50,000, having paid a 10,000 deposit and taking out a 40,000 loan, the value of fixed assets increases by 50k, but the bank asset value decreases by the 10k deposit paid. The value of liabilities increases by 40k loan, thus leaving the balance sheet balanced on both sides of the equation.

The balance sheet equation shows you how much money you would have left over if you paid all your bills and debts and sold all your assets at a given date. This amount is the Owner’s Equity.

Note that the balance sheet equity total is not necessarily how much the business is worth at market value. Assets are listed on the balance sheet at their transaction value, which may be very different from the market value. Some assets may be worth more, and others may depreciate in value. Business value is calculated not just on the balance sheet figures but many other factors.

Need more information?

Talk to us. Get the complete picture of your business performance and financial position, regardless of what stage of business you are at.

Understanding Margin Compression and Its Impact on Your Revenue

Thu, 07 May 2026 23:09:51 +1000

Understanding Margin Compression and Its Impact on Your Revenue

With operational costs escalating and the market still sensitive to price rises, you’ll have seen the term ‘margin compression’ being thrown around in many small business forecasts.

But what exactly is margin compression? And how does this financial phenomenon impact your sales revenues and overall profitability as a business?

Here’s how to identify and tackle the financial challenge of margin compression.

1. What is margin compression?

Margin compression occurs when your operating costs increase at a faster rate than your sales revenue. You might be moving the same volume of products or services, but each sale yields less net profit. In essence, your gross profit margin – the percentage of revenue exceeding the cost of goods sold – is being squeezed from both ends.

2. The key drivers of margin compression

Margin compression is caused by rises in operational and production costs, where your sales revenue fails to keep pace with these increases. The primary drivers of margin compression can include increased inflation, rising energy costs, soaring insurance premiums and the need to increase wages to source specialised talent, etc.

Cautious consumer spending is also preventing businesses from raising prices enough to offset these rising overheads, leading to a thinner bottom line.

3. Taking steps to protect your profitability

To reduce the impact of margin compression, it’s important to focus on operational efficiency and making the value of your product/service stand out in a crowded marketplace.

First, conduct an audit of your supply chain with the aim of negotiating better terms or finding more local (and cheaper) alternatives.

Second, use software automation tools and AI-based solutions to lower your most labour-intensive tasks and the associated admin and people costs.

Finally, instead of competing on price, bundle services or enhance your customer experience to justify a premium pricing that can reduce the squeeze on revenues.

4. Managing sales revenue and cashflow

If margin compression is truly biting and affecting your profitability, it’s vital to shift from chasing high-volume sales to focusing on high-margin products.

Go through your recent sales data to find the 20% of your products/services that are generating 80% of your profit. By pivoting your marketing efforts toward these high-performing products and cutting the ones that are delivering low margins, you can maintain healthy cashflow – even when market conditions remain pressurised and challenging.

Helping you preserve your margins and drive profitability

Ultimately, overcoming margin compression is about monitoring your margins and remaining agile. Our team can help you track and review your operational costs, margins and sales revenues, while helping you spot the opportunities to increase margins and profits.

The "Right to Disconnect": What It Means for Your Small Business

Fri, 24 Apr 2026 13:53:54 +1000

The "Right to Disconnect": What It Means for Your Small Business

Starting 26 August 2026, a significant change to Australian workplace laws will apply to small businesses: the Right to Disconnect.

What is the Right to Disconnect?

Under the new laws, employees have the legal right to refuse to monitor, read, or respond to contact from their employer (or a third party, like a client) outside of their working hours, unless that refusal is "unreasonable."

This doesn't mean you can't send an email at 8:00 PM; it means your employee generally doesn't have to look at it until they clock back in.

What is "Unreasonable" Refusal?

The law recognizes that some after-hours contact is necessary. Whether a refusal is unreasonable depends on several factors:

The Reason for Contact: Is it a genuine emergency or a routine update?
The Employee’s Role: Does their seniority or pay level imply an expectation of being "on-call"?
Compensation: Are they being paid an on-call allowance or a salary that compensates for additional hours?
Personal Circumstances: Does the employee have caring responsibilities that make after-hours contact particularly disruptive?

Practical Steps to Stay Compliant

Review Employment Contracts: Check if your current contracts clearly define "reasonable additional hours" and whether compensation for after-hours contact is already built-in.

Set Clear Communication Boundaries: Encourage managers and business owners to use "Delay Delivery" on emails so they land in staff inboxes during business hours.

Update Your Internal Policies: Draft a simple "Communication Policy" that outlines when after-hours contact is expected (e.g., emergency site issues) and when it is not.

Talk to Your Clients: If your business is client-facing (like a trade or consultancy), manage their expectations regarding response times after 5:00 PM to protect your staff.

We’re Here to Help You Navigate the Change

Transitioning to these new rules might feel like a hurdle, but it’s also an opportunity to improve team morale and prevent burnout. If you’re unsure how the Right to Disconnect affects your specific industry or payroll setup, come and have a chat with our team—we’ll help you get your policies in order.

Four Ways to Fund Your Business Growth

Fri, 24 Apr 2026 13:53:36 +1000

Four Ways to Fund Your Business Growth

Starting a business is hard. Growing it can be even harder. Thankfully, there are plenty of different ways to access funds to help your business scale, from relatively low-cost options to ones with higher risks and returns.

1. Debt Finance

Debt financing is the most common route for many entrepreneurs. Traditional bank loans and lines of credit are standard ways to inject cash, but they aren't the only options. Peer-to-peer lending and specific equipment financing arrangements can also provide the capital needed for targeted purchases. Before signing any agreement, ensure your business can handle the repayments—especially if dealing with variable interest rates.

2. Equity Finance

Equity financing involves selling ownership shares in your company to a third-party investor, such as an angel investor or venture capitalist. This allows you to obtain capital without acquiring debt and often provides access to the investor's valuable insights and connections. However, the trade-off is a loss of total ownership and potentially less control over key decision-making.

3. Crowdfunding

Crowdfunding raises funds by collecting small amounts of money from a large number of people, often via platforms like Kickstarter. In rewards-based crowdfunding, you might offer merchandise or services in exchange for contributions. While this can generate quick funds and serve as great marketing, failing to reach a public funding goal is highly visible and can impact your brand's momentum.

4. Self-Funding

Also known as "bootstrapping," this method relies on personal savings, business revenue, and strict cost management to fuel growth. It results in more organic growth and allows you to maintain 100% control, but it carries a higher level of personal financial risk if the business encounters difficulties.

How should you fund your business?

The economic climate has never been tougher to grow a business. If you would like a deeper dive into the best funding options for you, book some time with our team – we’d be happy to help!

Sustainability Reporting: New ASIC Training

Mon, 13 Apr 2026 12:58:03 +1000

Sustainability Reporting: New ASIC Training

“We recognise many smaller companies may be concerned about what the sustainability reporting requirements mean for them. ASIC is committed to helping industry build the capability required to meet these important obligations.”

ASIC Commissioner Kate O’Rourke

ASIC has partnered with the Australian Accounting Standards Board (AASB) to release a set of educational materials aimed at providing training on sustainability reporting.

These training modules will help your smaller company understand and apply the foundational concepts underpinning Australia's new sustainability reporting requirements.

What modules are available through ASIC?

If you’re new to mandatory sustainability reporting, the requirements can seem daunting. The goal of ASIC’s training is to give you, or your report preparer, a good foundational understanding of the basics of reporting and meeting your ESG compliance requirements.

Here’s what the modules include:

Module 1 sets out how stakeholders should engage with the materials and introduces the basics of the new sustainability reporting requirements in the Corporations Act.
Module 2 covers the basics of climate change.
Module 3 covers climate-related physical risks and how they may affect an entity.
Module 4 focuses on explaining climate-related transition risks and how they may affect an entity.
Module 5 introduces climate-related opportunities and shows how they may apply to an entity through practical examples.
Module 6 introduces emissions accounting and provides foundational knowledge on Scope 1, 2 and 3 greenhouse gas emissions.
Module 7 focuses on the process of climate-related scenario analysis.
Module 8 provides an overview of how entities might integrate climate risks and opportunities into governance and risk-management processes.

Supporting your sustainability reporting requirements

You can find out more about the available training modules on ASIC’s sustainability reporting website. If you’re unsure about the sustainability reporting rules for your business, please come and have a chat with our team – we can run you through the compliance requirements.