Accounting
EEA Advisory articles on accounting.
What Can You Claim for Working From Home in 2026?
Australian employees working remotely or in a hybrid pattern can usually claim extra running expenses such as electricity, internet, phone, stationery and equipment depreciation. This guide explains the fixed rate and actual cost methods for the 2025 to 26 tax year, plus the records you need to keep. It also covers what is eligible, what is not and how to stay aligned with ATO rules.
How Does the $1,000 Standard Deduction Work?
The new $1,000 standard deduction is designed to make claiming work related deductions simpler for eligible Australian taxpayers from the 2026 to 2027 income year onward. It reduces taxable income rather than providing a cash refund, so the tax benefit depends on your marginal rate. This measure sits alongside existing deduction rules for costs like laundry, tools and home office expenses. It may help employees who want a simpler way to claim common work related expenses.
STSL Tax on Your Payslip: Meaning and Withholding Explained
STSL on your Australian payslip stands for Study and Training Support Loans. It means your employer is withholding extra PAYG amounts because you have a student or training debt and your income is above the repayment threshold. This is not an extra tax, but an instalment towards your compulsory annual repayment. The final amount is confirmed when you lodge your tax return.
ABN vs ACN: Which Does Your Business Need?
ABN and ACN are often confused, but they serve different purposes in Australia. An ABN identifies an eligible business for tax and invoicing, while an ACN identifies a company registered with ASIC. Sole traders, partnerships and trusts usually need an ABN only, whereas companies receive an ACN and then usually apply for an ABN as well. Understanding both helps you stay compliant and present your business correctly.
Statement of Account Explained—with Examples and a Template
Every Australian business needs clear insight into outstanding customer balances. A statement of account summarises all invoices, payments, credits and adjustments over a chosen period. This guide explains what a statement of account is and how to read and prepare one using accounting software. A worked example shows the running balance in action while a free template formatted for Australian dollars and GST is provided for practical use.
GST Registration Threshold: Calculating Turnover and When to Register
Understanding the GST registration threshold in Australia is essential for managing business finances. Most trading entities must register when their sales income reaches 75000 dollars, while eligible non profit organisations benefit from a 150000 dollar limit. This guide explains the rules in plain language and shows you how to calculate both current and projected GST turnover. With practical examples and a ready made worksheet, you can make an informed decision about registering for GST.
Current and Non-Current Liabilities: Small-Business Examples
This article explains liabilities in business accounting, clearly distinguishing current liabilities from non-current liabilities using the twelve month rule. It outlines why proper classification supports cash flow planning and meets Australian Accounting Standards and the Corporations Act 2001 requirements. The piece also details the difference between liabilities and expenses, emphasising the importance of accurate financial statements for assessing solvency. Small business owners can improve financial management with these insights.
IAS vs BAS: What’s the Difference?
Australian business owners often face confusion when deciding whether to lodge an IAS or a BAS. A BAS includes GST reporting for registered businesses while an IAS focuses on PAYG instalments and withholding for non-GST obligations. The ATO issues the specific form that matches your business registrations, ensuring you lodge the correct statement. Understanding these differences helps maintain tax compliance and avoid costly errors.
The True Cost of Hiring an Employee in Australia
Australian employers must understand that salary is only the starting point. Additional expenses such as superannuation, paid leave loading, workers compensation and payroll tax can significantly increase the cost of hiring. A practical example shows how wages can extend from an 80,000 dollar salary to roughly 105,000 dollars per annum. Every business must account for one-off costs like recruitment fees and equipment, ensuring smoother cash flow and clearer decisions between hiring, contracting or outsourcing.
Xero vs MYOB for Australian Small Businesses
Explore the key differences between cloud based Xero and MYOB. Both platforms meet Australian compliance rules while offering unique features for diverse business needs. Whether you are a sole trader or employ a team, learn how invoicing, payroll and stock management can impact your workflow. Real-time bank feeds and mobile apps add further flexibility to each option. Choose the system that best aligns with your business size and industry requirements.
What Is a Credit Note? Examples, GST and Recording It
A credit note is a formal document that revises or cancels a previous tax invoice when goods are returned, services are cancelled or errors occur. In Australia the document is essential for adjusting GST records as required by the ATO. It helps both seller and buyer maintain accurate accounting records and stay compliant with tax rules. Using credit notes correctly promotes transparency and protects business interests.
Medicare Levy Surcharge Thresholds: Singles, Families and Hospital Cover
This guide explains why many Australians face an extra Medicare Levy Surcharge when their income exceeds set thresholds without appropriate private hospital cover. It clearly outlines the differences between the ordinary levy and the surcharge. The post reviews the current 2025-26 thresholds for singles and families using the latest ATO guidance. Practical advice is provided to help you calculate your position and manage your tax obligations with confidence.
How Employee Share Schemes Are Taxed in Australia
Employee share schemes offer a unique opportunity by providing equity as part of remuneration. In Australia, the tax treatment focuses on the discount received on shares or options, which is included in assessable income. Tax may be imposed upfront when the interest is received or deferred until key restrictions lift, with additional gains subject to capital gains tax upon sale. Employers could also be liable for payroll tax on the value of these interests. Understanding these rules is essential for effective financial planning.
What the Base Rate Entity Test Means for Your Company Tax Rate
Australian companies face an annual decision over which tax rate applies with lasting financial impact. This post explains the base rate entity test and breaks down its two key requirements: aggregated turnover under fifty million dollars and passive income under eighty per cent. It explores how failing either test leads to a higher tax rate and offers clear insights into the calculations that matter. Gain a better understanding of these vital criteria and the implications for your business.
Contractor or Employee Under ATO Rules in 2026
Understanding the real substance behind an employee or contractor classification is vital in 2026. The ATO, Fair Work Ombudsman and courts focus on the practical details rather than just the written contract. Misclassification can lead to severe financial penalties and reputational damage. Getting it right secures compliance, protects businesses from hefty PAYG withholdings and super guarantee debts, and gives workers clarity about their entitlements.
Personal services income rules for Queensland contractors: the four tests and why the results test matters most
PSI rules can be confusing for Queensland contractors, but understanding the results test is key. This article explains PSI in plain English and highlights why the results test matters more than other tests. It details how to secure genuine business deductions and avoid unwanted extra tax on your income. Contractors across various industries can benefit from the practical strategies provided in this guide.
What actually triggers an ATO small business audit, and the record keeping that survives one
Australian small business owners face the risk of unexpected ATO reviews when discrepancies in financial records are noted. The ATO collects billions of data points from banks, government agencies and digital platforms to identify anomalies in your accounts. This guide explains how unusual profit margins and elevated expense ratios may trigger a review or full audit. By maintaining complete and accurate records, your business will be well prepared to address any queries and maintain tax compliance.
Director penalty notices: how a Queensland company director becomes personally liable for PAYG, GST and super
This post explains the significance of a Director Penalty Notice in Queensland and how unpaid company obligations can attach to a director personally. It outlines scenarios like missing PAYG instalments, GST, and superannuation liabilities. When a notice is issued, the ATO starts a strict twenty one day countdown before enforcing collection powers against directors. Learn how understanding this tool and acting within the short window can help protect personal assets and credit standing.
TPAR due 28 August: which Queensland businesses must lodge and the penalties for missing it
The TPAR due on 28 August is a critical compliance date for Queensland businesses that pay contractors. This guide explains who is required to lodge and outlines the penalties that the ATO may impose for late submissions. It provides clear steps to get back on track if your report is overdue while keeping both your contractors and the tax office satisfied. Read on to ensure accuracy and avoid costly fines.
Queensland payroll tax on contractor payments: when your subcontractors push you over the threshold
Queensland businesses often rely on subcontractors for specialised skills, but payments to these workers can unexpectedly count as taxable wages. This may push wage bills beyond the 1.3 million dollar threshold, forcing companies to register and remit payroll tax. The guide explains when subcontractor payments count, how exemptions work, and offers practical steps to avoid costly penalties. It also highlights risks for grouped entities and provides clear advice for staying compliant.
Division 7A director loans in 2026: benchmark interest rate, minimum repayments and what triggers a deemed dividend
Division 7A ensures director loans are managed on strict commercial terms. The guide explains the ATO benchmark interest rate and repayment formula required for compliance. It shows how failing to document or repay the loan can result in a taxable dividend. The article also covers upcoming changes for the 2026–27 income year to help you manage Division 7A risk before financial year-end. Protect your business and personal finances with these essential tips.
Cents Per Kilometre vs Logbook for Car Deductions in 2026
For the 2025–26 income year, Australians can choose between two methods to claim car deductions on their 2026 tax return. The cents per kilometre method uses a fixed rate of 88 cents for each work-related kilometre with a 5000 kilometre cap, while the logbook method lets you claim a percentage of actual running costs without any kilometre limit. This guide explains both methods in detail, outlining the record keeping requirements and ATO rules. Decide which approach best suits your needs and potentially boost your refund.
Are Dual Cab Utes FBT Exempt in 2026
This blog post explores the Fringe Benefits Tax implications for dual cab utes in the 2026 FBT year. It explains that a dual cab ute only qualifies for an FBT exemption if it meets the ATO eligibility criteria and if private travel remains minor and infrequent. If a vehicle is used for regular family trips or shopping, it becomes subject to FBT just like a passenger car. The article debunks common myths and outlines the dual hurdles of engineering and behavioural requirements that employers must meet. It offers practical insights for managing FBT risks effectively.
ATO debt and payment plans: negotiating with the ATO when cash flow is tight
Dealing with tax debts can leave business owners feeling overwhelmed when cash flow is tight. This guide explains how ATO payment plans let you pay off tax debts in manageable instalments. It outlines what the ATO expects and the documents needed to secure a practical repayment plan. Learn effective strategies to negotiate terms that fit your business needs while avoiding further penalties.
Single Touch Payroll Phase 2: the reporting fields most employers still get wrong
Many Australian employers continue to face avoidable errors in STP Phase 2 payroll reporting. This article identifies the seven most problematic reporting fields and explains why details like income streams and tax status matter. It provides practical steps for refining payroll data and avoiding penalty notices. With clear guidance and actionable tips, payroll officers can keep their systems up to date while ensuring compliance and employee satisfaction.
Reportable Fringe Benefits Amount (RFBA) on payment summaries — what employees should know
Australian employees frequently notice the term Reportable Fringe Benefits Amount in their income statements. The figure reflects the grossed-up value of non-cash benefits provided by an employer. Although not added to taxable income, it can impact means-tested benefits. This guide explains in plain english how the amount is calculated, why it appears, and practical steps to take when planning salary packaging and assessing tax obligations.
Building & construction industry retention payments — accounting treatment under AASB 15
Retention payments present both opportunities and challenges for Australian builders. They secure a percentage of progress claims as a safeguard while impacting cash flow. Under AASB 15, revenue is recognised when performance obligations are met, even if cash is withheld. Accurate classification, journal entries, GST timing, and reconciliation are vital for compliance and smooth financial reporting. This article explains the effects on building contracts and trust account requirements across various states.
Director loans and Division 7A in 2026: avoiding deemed-dividend traps
Directors in private companies know the nerve-wracking moment when personal use of company funds raises red flags. Division 7A can reclassify these loans as unfranked dividends that incur heavy tax at the top marginal rate. In 2026, increased ATO scrutiny and higher interest rates heighten the risk of costly penalties. Directors can protect profits by ensuring full repayments or establishing a complying written loan agreement. Read on to discover practical guidance and insights.
Instant asset write-off in 2026: eligibility thresholds, traps and end-of-financial-year timing
Australian small business owners have a golden opportunity with an elevated asset write off before 30 June 2026. Eligible businesses can claim an immediate deduction for qualifying depreciating assets costing up to $20,000, which improves cash flow and reduces taxable income. This guide explains the rules in plain language and provides practical timing tips that help you avoid common pitfalls. It is essential reading for those wishing to maximise tax benefits before the threshold falls.
What Does SAV Mean When Selling A Business?
Understanding Stock at Valuation is crucial for both buyers and sellers in business transactions. This guide explains how SAV is used to adjust the final sale price by accounting for current inventory values. It highlights the process of a joint stocktake conducted just before settlement to ensure fair pricing. The article compares SAV with WIWO labels and answers common legal and tax questions. Readers gain a clear insight into an important pricing mechanism in the Australian market.
Ultimate Guide to ATO Lodgments & Payments
Millions of Australians interact with the ATO each year to lodge returns, pay tax, and manage activity statements. This guide explains the importance of timely lodgments, outlines legal obligations, and offers a practical pathway to compliance, whether you’re a sole trader, company director, or individual salary earner.
Bookkeeper vs Accountant: Ultimate Guide for Aussie Biz
Australian business owners often struggle to decide between hiring a bookkeeper or an accountant. This guide explains the roles of each professional—from day-to-day BAS filing to strategic tax planning—and offers tips on staying compliant, preserving cash flow, and facilitating business growth.
The Difference Between a CA and an Accountant in Australia
A clear and practical guide explaining how Chartered Accountants differ from general accountants in qualifications, legal authority, fees and the services they can provide.
ATO Interest No Longer Tax-Deductible from 1 July 2025: What Businesses Must Know
From 1 July 2025, the ATO’s General Interest Charge and Shortfall Interest Charge will no longer be deductible. This guide explains what has changed, how it affects business cash flow, and the strategies to minimise your exposure to costly interest.
What Are the Benefits of Hiring a Business Accountant?
Hiring a professional business accountant is more than compliance—it’s a strategic move that frees your time, trims tax, improves cash flow and delivers data-driven insights. Discover how local expertise in Queensland, Brisbane and the Gold Coast turns numbers into growth opportunities for your business.
From Compliance to Counsel: The Future of Australian Accounting in 2025
Australian accounting is shifting from compliance to strategic advisory services in 2025, driven by tech, client needs, and new regulations. Discover why this trend is reshaping the industry and what it means for firms and businesses.
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