WD Nicholls Chartered Accountants

30/05/2026

If you're a private company making Division 7A loan payments, read the ATO's tips to avoid costly common errors.

Some of the most common Division 7A errors the ATO see come from incorrect loan payments. You can avoid a costly problem when making Division 7A loan payments by following these tips:

➡ For loans you've made to shareholders or associates, repay them in full, or convert them to a complying Division 7A loan, by your private company’s lodgment day.
➡ Ensure your Division 7A loan payments for the income year are at least equal to the required minimum yearly repayment.
➡ Calculate minimum yearly repayments using the correct benchmark interest rate and pay by 30 June. The ATO's Division 7A calculator and decision tool can help with this.
➡ Keep sufficient contemporaneous evidence to show what payments you made and when you made them. Journal entries by themselves are not evidence of payments.
➡ Where you make payments by offsetting a dividend owed to the borrower
- correctly declare the dividend by 30 June
- keep evidence of that occurring.
➡ Don't borrow money from the same private company to make the payment, or make the payment with the intention of reborrowing a similar or larger amount from that same company (including through interposed entity arrangements) – these payments may not be taken into account.

Source and credit: ATO.gov.au

30/05/2026

As the end of financial year approaches, now is the ideal time for businesses and individuals to begin preparing for important EOFY deadlines and reporting obligations before 30 June.

Planning ahead can help reduce stress, improve cash flow management and provide greater clarity around taxation, payroll and compliance responsibilities before year-end reporting begins.

Key EOFY dates and obligations to keep in mind include:

30 June 2026 — End of Financial Year

✔ Finalise bookkeeping and reconcile accounts
✔ Review outstanding invoices and debtor collections
✔ Ensure superannuation guarantee payments are processed before deadlines
✔ Review payroll and Single Touch Payroll reporting obligations
✔ Confirm deductible expenses and supporting documentation are up to date
✔ Review asset purchases and depreciation opportunities
✔ Consider trust distribution and tax planning strategies before year end
✔ Prepare records for upcoming tax return and BAS lodgements
✔ Early EOFY preparation provides valuable time to identify opportunities, address potential issues and ensure everything is in place before the close of the financial year.

If you would like assistance reviewing your business or personal taxation position before 30 June, our team is here to help. Call (02) 6684 2502.

Source and credit: ATO.gov.au

30/05/2026

About the fuel response payment plan

As an eligible taxpayer, you can access the ATO fuel response payment plan with the following conditions:

> no upfront payment
> a 3-year payment plan period of 36 equal monthly instalments
> general interest charge remission (GIC). We will make a decision to remit any general interest charge that has accrued from the time of your application to the date of the third monthly instalment provided you:

- pay all instalments agreed under the payment plan for 3 months
- bring any outstanding lodgments up to date in that period.

Note: The ATO fuel response payment plan is available by application until 30 June 2026. You will not have to make a further application for GIC remission for this period.

The ATO will continue to assess the situation and support options available. This information will be updated if the ATO will continue or change this support beyond 30 June 2026.

Visit this link for more: https://www.ato.gov.au/individuals-and-families/financial-difficulties-and-disasters/tax-support-for-individuals-businesses-not-for-profits-and-tax-professionals/ato-fuel-response/ato-fuel-response-payment-plan

Source and credit: ATO.gov.au

24/05/2026

24/05/2026

With Payday Super approaching fast, now’s the time to look at how you pay super for independent contractors.

While Payday Super doesn't change who is eligible for super as the existing rules on eligibility remain the same, what does change is when you must pay super.

If you’re currently required to pay super for an independent contractor, you’ll continue to do so under Payday Super.

> Understanding when super applies

Some independent contractors are treated as employees for super purposes under what’s known as the extended definition of employee.

You’ll generally need to pay super for a contractor if they’re paid mainly for their labour. This can apply even if they:

✔ have an ABN
✔ invoice you for their work
✔ are described as a contractor in a written agreement.

If you're paying a contractor primarily for their personal effort, skills or time, rather than to deliver a specific result, super is likely required.

These rules currently apply and are not changing under Payday Super.

> Timing of super payments

There’s no separate timing or special treatment for independent contractors.

If you're required to pay super for an independent contractor now, you’ll continue to do so from 1 July 2026. From that date, super for eligible independent contractors must:

✔ be paid for each payday, and
✔ reach the super fund within 7 business days after payday.

If paying them by invoice, the payday is the date the invoice is paid. This means super must reach the fund within 7 business days of paying the invoice.

> Reporting for contractors

If you’re not currently reporting for contractors in single touch payroll (STP), you do not need to change this under payday super.

However, if you do report contractors under STP, you will need to ensure that you report both qualifying earnings and super liability for them from 1 July 2026.

Act now by reviewing your contractor arrangements and super payment processes and confirm those who are eligible for super.

Find out more at ato.gov.au/paydaysuper.

Source and credit: ATO.gov.au

23/05/2026

The Small Business Superannuation Clearing House (SBSCH) permanently closes on 1 July 2026. If you still use it, you have less than seven (7) weeks left to transition to an alternative service provider, test your new arrangements and resolve any issues before Payday Super begins.

Don’t delay, act now to:

➡ download all your SBSCH records as after 11:59 PM AEST on 30 June user access will be closed and you won’t be able to view or retrieve any records, so make sure you get everything you need before this time
➡ stop using the SBSCH and test your new payment method
➡ be ready to use your alternative provider to pay super.

Source and credit: ATO.gov.au

17/05/2026

Instant Asset Write-Off: What small businesses need to know

Eligible small businesses may be able to immediately deduct the cost of eligible assets costing less than $20,000 per asset under the current Instant Asset Write-Off rules.

✔ Applies to eligible businesses with turnover under $10 million
✔ New and second-hand assets may qualify
✔ A practical opportunity to invest in equipment, technology and growth

Understanding the rules — and what purchases may qualify — can help businesses plan with confidence.

If you’d like advice on how the Instant Asset Write-Off could apply to your business, our team at WD Nicholls is here to help. Call (02) 6684 2502 or visit www.wdnicholls.com.au.

16/05/2026

Federal Budget 2025–26: What it means for innovative businesses

The latest Federal Budget includes continued support for Australian innovation, with updates to R&D tax incentives aimed at helping businesses invest, grow and stay competitive.

For businesses developing new products, improving processes or investing in technology, these changes could create valuable opportunities for tax savings and future growth.

At WD Nicholls, we help businesses understand what the budget changes mean in practice — and how to maximise available incentives.

Get in touch with our team to discuss how the latest R&D measures may apply to your business.

13/05/2026

The 2026–27 Federal Budget has landed, with a strong focus on cost-of-living relief, small business support, taxation changes, and economic growth initiatives.

We’re breaking down what the announcements mean for individuals, families, investors, and business owners — beyond the headlines.

Our latest Federal Budget 2026–27 News update highlights:

• Key tax and superannuation changes
• Small business measures and incentives
• Cost-of-living support initiatives
• Economic outlook and implications
• What actions you should consider now

Stay informed and prepared with practical insights from our team.

Contact WD Nicholls Chartered Accountants to discuss how the Federal Budget may impact your personal or business strategy (02) 6684 2502.

For valuable updates visit: www.wdnicholls.com.au/newsroom