Babo Group Pty Ltd

03/12/2025

ATO statement on Sydney Morning Herald and A Current Affair
Statement from the ATO about issues raised by Sydney Morning Herald and A Current Affair.
Published 3 December 2025
The Australian Taxation Office (ATO) acknowledges the seriousness of the issues raised by the Sydney Morning Herald (SMH) and A Current Affair (ACA) in relation to several long-running tax-related fraud matters being prosecuted by the Commonwealth Director of Public Prosecutions (CDPP).

The ATO takes the matters raised in this reporting seriously and remains committed to accountability. We share the community’s desire for clear and accurate information which is essential to maintaining confidence in the tax system.

The SMH and ACA reporting implied that the ATO had the authority to compel the use of ankle monitors for bail purposes. As advised to ACA prior to airing, the ATO has no authority over bail conditions including the use of ankle monitors. In this advice to ACA, the ATO also made clear that these decisions are entirely matters for the courts. Setting or enforcing such conditions is not part of the ATO’s role.
ATO QC 105934

Babo Group Pty Ltd ©
03 94660200
Our Disclaimer, please note the above information (either in part or in total) is not to be construed to be advice in any form. This is not drafted as tax, investment or professional advice. It is only for the purpose of general discussion and should not be relied upon for your circumstances. Please refer your specific or general circumstances directly to your professional advisor.
In-addition to our disclaimer, the notes above have been either summarised or in brief. You must make your own enquiries.

03/12/2025

Check your GST registration as the year wraps up
As the end-of-year approaches, now's a great time to check if you're still required to be registered for GST.
If your circumstances have changed, and your business has grown or reduced in size, you may need to register or cancel your GST registration.

Things to check:
• Exceeded the threshold? If your GST turnover is $75,000 or more, you need to register for GST. Once registered, you need to charge GST on taxable sales and issue tax invoices.
• Below the threshold? If your GST turnover is less than $75,000, you can choose to cancel your GST registration. Once cancelled, you can no longer claim GST credits.
• Stopped trading? If you’re no longer in business, you need to cancel your GST registration within 21 days of stopping your business activities.
• Taxi or ride-sourcing driver? You must be registered for GST, regardless of your turnover.
Babo Group Pty Ltd ©
03 94660200
Our Disclaimer, please note the above information (either in part or in total) is not to be construed to be advice in any form. This is not drafted as tax, investment or professional advice. It is only for the purpose of general discussion and should not be relied upon for your circumstances. Please refer your specific or general circumstances directly to your professional advisor.
In-addition to our disclaimer, the notes above have been either summarised or in brief. You must make your own enquiries.

02/12/2025

https://www.worksafe.vic.gov.au/events/hs-month-2025-psychological-health-regulations-focus-risk-management-webinar

View the webinar recording of this past event.

29/11/2025

https://www.ato.gov.au/about-ato/tax-avoidance/the-fight-against-tax-crime/our-focus/illegal-phoenix-activity/phoenix-taskforce

The Phoenix Taskforce brings federal, state and territory agencies together to combat illegal phoenix activity.

26/11/2025

Operation Topaz raises $25 million in liabilities in Gatton region
This is a joint media release from the ATO, Fair Work Ombudsman (FWO) and Department of Home Affairs.
The Australian Taxation Office (ATO), Fair Work Ombudsman (FWO) and Department of Home Affairs have wrapped up Operation Topaz, a joint compliance blitz of the agriculture and labour hire industries in the Gatton region in Southeast Queensland.
ATO compliance outcomes….
The ATO completed audits on more than 50 taxpayers across the 7 locations which led to liabilities of more than $25 million being raised. Those businesses caught doing the wrong thing will also be hit with significant penalties and interest.

ATO Assistant Commissioner Tony Goding noted the majority of taxpayers visited were compliant and required no action from the ATO.

‘It’s great to see that, in relation to tax laws, most of the agriculture and labour hire businesses in the region are doing the right thing and supporting fair practices. But it’s clear that there are some bad apples who were trying to cheat the system by ripping off workers and the community.’
‘What the outcome of this operation shows is that businesses that choose to flout taxation law face serious consequences including significant financial penalties. As the community expects, the ATO will take action to protect workers and honest businesses when we suspect something doesn’t add up,’ Mr Goding said.

FWO compliance outcomes….
The FWO has investigated 12 employers (both labour hire contractors and farmers), with 9 found to be non-compliant with workplace laws. All 8 labour hire providers investigated were found to be non-compliant with workplace laws. Of the 4 grower employers investigated, 1 was found to be non-compliant.

Home Affairs compliance outcomes….
Meanwhile, Home Affairs immigration compliance officers from Australian Border Force (ABF) conducted more than 423 immigration status checks.
ABF Commander John Taylor said most businesses and individuals looked at by ABF were compliant and doing the right thing, although a number of checks led to various referrals to partner agencies for further scrutiny.
The agricultural industry remains a focus for ABF, Commander Taylor reminded employees that Australia will not tolerate exploitation and abuse of its visa programs and is committed to protecting migrant workers.

‘Migrant workers play a key part in the economy, particularly in remote and regional communities. There is no place in Australia for employers who exploit them.’
ATO….
Babo Group Pty Ltd ©
03 94660200
Our Disclaimer, please note the above information (either in part or in total) is not to be construed to be advice in any form. This is not drafted as tax, investment or professional advice. It is only for the purpose of general discussion and should not be relied upon for your circumstances. Please refer your specific or general circumstances directly to your professional advisor.
In-addition to our disclaimer, the notes above have been either summarised or in brief. You must make your own enquiries.

25/11/2025

Cbus ordered to pay $23.5 million penalty for serious failures in processing members death benefits and insurance claims
ASIC media release (25-286MR).

One of Australia’s largest superannuation fund trustees has been ordered by the Federal Court to pay a penalty of $23.5 million for unreasonable delays experienced by thousands of members and claimants arising from serious failures to handle insurance claims in a timely manner.

The penalty has been imposed against United Super Pty Ltd, the trustee of the Construction and Building Unions Superannuation Fund (Cbus), following admissions by Cbus that serious failures caused delays in processing death benefits and total and permanent disability (TPD) insurance claims and impacted more than 7,000 Australians in distressing situations.

The penalty exceeds the $18.5m in revenue United Super declared in the 2024 financial year.

The penalties come on top of Cbus’s own remediation program to pay approximately $32 million in compensation to the estimated 7,402 affected claimants and members for lost earnings and wrongfully charged fees.
ASIC Deputy Chair Sarah Court said Cbus's failures needlessly exacerbated the distress of people who were already in upsetting situations.

“Thousands of Australians suffered real and avoidable harm because of long delays and systemic failures in the way Cbus handled important and sensitive insurance claims,” said Ms Court.

“When people were grieving the loss of a loved one or grappling with a life-altering injury, Cbus should have ensured timely and accurate decisions were made on their insurance claims.”

“Not only was Cbus aware of increased insurance claim volumes, but it was also put on notice by its own customers who were complaining about the long delays they were enduring.”

“This outcome underscores a message to the whole industry to get it right, especially when your members need it most. You cannot outsource your obligations to your members.”

“ASIC has increased its scrutiny of claims handling and member services failures, which are both ASIC enforcement priorities, The sector should be on notice that ASIC is sharpening its focus,” the Deputy Chair said.

In delivering his judgment, Justice O'Callaghan noted that, “Delays in the payment of benefits under insurance products can have serious and unacceptable consequences for affected members and claimants.”
His Honour noted one case in which the widow of a Cbus member called into ABC radio in June 2023 to highlight a 15-month delay processing her late husband's death benefit claim. After she complained to the media about ongoing poor service, including a lack of communication and extensive periods on hold, Cbus commenced an investigation that led to the breach report to ASIC.

His Honour said, “As at 30 June 2024, the Fund was ranked the ninth largest superannuation fund in Australia, and in the 2024 financial year the Fund had over $95 billion in total assets. As one of Australia's largest superannuation funds, it ought to have had more robust processes and systems in place to ensure compliance with key legislative obligations, and to prevent, promptly identify, and correct repeated individual and collective human errors resulting in failures to process claims within a reasonable timeframe.”

Between October 2022 and November 2024, Cbus outsourced its claims processing to Australian Administration Service Pty Limited (AAS).
However, His Honour further observed, “United Super was ultimately responsible for the outsourcing of material business activity and, from at least November 2022, various United Super executive and board committees were aware that AAS had not met its agreed service levels in relation to the processing of claims.”

The Court found that between 27 March 2023 and 1 May 2023, as a percentage of all open claims, between 48% and 56% of all death claims (numbering between 438 and 479 claims) had been open for more than 365 days, and between 38% and 43% of all TPD claims (numbering between 391 and 409 claims) had been open for more than 365 days.

The Court declared that Cbus contravened the Corporations Act by failing to do all things necessary to ensure Death, terminal illness and TPD claims (Claims) were handled efficiently, honestly and fairly by failing to:
• take all reasonable steps to ensure Claims were being processed in a reasonable period of time
• ensure that it held accurate and complete data necessary to determine the volume and age of all Claims
• ensure the relevant committees had sufficient oversight over issues with processing Claims, and
• adequately monitor and manage the administrator’s performance under the Administration Agreement.
The Court also found Cbus had contravened the Corporations Act on two further occasions by failing to report the matters to ASIC within the required time frame. Reports were required to be made to ASIC on 3 March 2023 and 20 July 2023, but nothing was reported to ASIC until 5 August 2023. The report was made after criticism had occurred on an ABC Melbourne Radio program.

In addition, Cbus was also ordered to pay half a million dollars towards ASIC’s legal costs and undertake a compliance program requiring it to obtain expert reports on whether it now has appropriate systems and processes in place.
ASIC….

Babo Group Pty Ltd ©
03 94660200
Our Disclaimer, please note the above information (either in part or in total) is not to be construed to be advice in any form. This is not drafted as tax, investment or professional advice. It is only for the purpose of general discussion and should not be relied upon for your circumstances. Please refer your specific or general circumstances directly to your professional advisor.
In-addition to our disclaimer, the notes above have been either summarised or in brief. You must make your own enquiries.

21/11/2025

QLD shadow director charged with $8m debt factoring fraud involving Bunnings Warehouse
ASIC media release (25-280MR).

Mr Brent Young of Queensland has appeared at the Brisbane Magistrates Court today 21 November 2025 charged with one count of fraud and one count of managing a corporation whilst disqualified.

Following an ASIC investigation, it is alleged that between 30 September 2020 and 30 June 2023 Mr Young, whilst acting as a shadow director of HWT Group Australia Pty Ltd (HWT Group), created and lodged over 10,000 fraudulent invoices with a Queensland-based finance provider to obtain over $8.3 million dollars in advanced payments under a debt factoring agreement Mr Young setup on behalf of HWT Group.

Debt factoring is where a business makes an agreement with a third-party finance provider to sell its unpaid invoices (accounts receivable) at a discount to receive cash prior to the invoices being due for payment.

ASIC alleges Mr Young created invoices issued to Bunnings Warehouse for payment of goods shipped to various stores, whilst neither Mr Young nor HWT Group had any existing business relationship with Bunnings relating to those goods.

At the time of the offences, Mr Young was bankrupt and was therefore automatically disqualified from managing corporations.

The matter has been adjourned to 19 December 2025 for mention.

Background
The charge of fraud is pursuant to section 408C of the Criminal Code 1899 (Qld) and carries a maximum penalty of 20 years’ imprisonment.

The charge of managing a corporation whilst disqualified from doing so is pursuant to section 206A of the Corporations Act 2001 (Cth) and carries a maximum penalty of 5 years’ imprisonment.

The matter is being prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP).
ASIC….
Babo Group Pty Ltd ©
03 94660200
Our Disclaimer, please note the above information (either in part or in total) is not to be construed to be advice in any form. This is not drafted as tax, investment or professional advice. It is only for the purpose of general discussion and should not be relied upon for your circumstances. Please refer your specific or general circumstances directly to your professional advisor.
In-addition to our disclaimer, the notes

19/11/2025

https://share.viostream.com/bi9or7orsim83t

Hear from Emma Rosenzweig, Deputy Commissioner about what Payday Super means for employers. Get ahead of these changes now to be ready for 1 July 2026.

17/11/2025

Why your dual cab utes may attract FBT
ATO Advice…
Understand when your employee's personal use of work dual cab utes may attract FBT.
There's a common myth that dual cab utes are automatically exempt from fringe benefits tax (FBT). However, that's not the case.

If your business provides dual cab utes to your employees to complete their duties and the vehicle is available for personal use, then the benefit may be subject to FBT.

Knowing how your employees use their dual cab utes outside of work will help you determine when FBT applies so you can meet your FBT obligations.
When FBT doesn't apply
To establish if you or your employees' use of a dual cab ute is exempt, there are two conditions that must be met. The dual cab must be:
1. an eligible vehicle, which means it's designed to carry:
a load of one tonne or more, or
more than 8 passengers (including the driver), or
a load under one tonne and not primarily designed for carrying passengers
2. only used for limited private use (i.e. minor, infrequent and irregular), such as the occasional trip to the tip or helping a mate move house.
So, if you or your employee use the dual cab ute as the family taxi or for weekend personal trips, it's not exempt and FBT applies. Check your FBT obligations to ensure compliance with FBT requirements.
When FBT applies
If your employee's personal use doesn't meet both exemption (1 & 2 above) conditions, your business will be liable for FBT. Even if the benefit is exempt from FBT because of limited private use, you need to keep records to support this.

If FBT applies, you need to:
• keep accurate records
• determine the taxable value of the fringe benefit
• calculate the amount of FBT to pay
• lodge an FBT return and pay the FBT owning
• report the employee's reportable fringe benefit through Single Touch Payroll or on your employee's payment summary (if the aggregated taxable value of their reportable fringe benefits is more than $2,000 in the FBT year).
ATO QC 105858 ….

Our Comment
FBT is complex and you must obtain proper professional advice.
During an FBT audit penalties will always apply, regardless.
Babo Group Pty Ltd ©
03 94660200
Our Disclaimer, please note the above information (either in part or in total) is not to be construed to be advice in any form. This is not drafted as tax, investment or professional advice. It is only for the purpose of general discussion and should not be relied upon for your circumstances. Please refer your specific or general circumstances directly to your professional advisor.
In-addition to our disclaimer, the notes above have been either summarised or in brief. You must make your own enquiries.

14/11/2025

ATO stats.
Red flags rise: Aussies call out tax dodgers in record numbers
The ATO receives almost 1,000 tip-offs every week from people who know or strongly suspect tax evasion.
The Australian Taxation Office (ATO) has hit a major milestone of over 300,000 tip-offs from the community about tax avoidance and other dishonest behaviours since 1 July 2019. In the 2024–25 financial year alone, almost 50,000 red flags were raised by the community who spotted something suspicious.

Most of the tip-offs received related to shadow economy activity, like demanding cash payment for work or incorrectly claiming business expenses. The ATO estimates the community is missing out on billions in stolen taxes every year from this behaviour, which weakens funding for essential services such as health, education, transport, infrastructure and disaster response.

ATO Assistant Commissioner Tony Goding said businesses who dodge their tax and super obligations are simply stealing from fellow Australians.

‘When someone cheats the system, they’re not just breaking the law, they’re freeloading on honest businesses and the rest of the community.’
‘Paying tax is not optional. Sooner or later, and probably sooner, if you’re operating in the shadow economy, the ATO will discover this, through our extensive data-matching through initiatives including the Taxable Payment Reporting System and the Sharing Economy Reporting Regime, our industry benchmarks or as a result of a tip-off from one of your workers, customers or competitors.’
Spotting the red flags
Tip-offs help level the playing field and protect honest businesses. This year, Australians reported businesses and individuals who:
• didn’t declare their income
• demanded or paid for work in cash to avoid tax
• lived lifestyles that didn’t match their known income
• failed to report all sales.
Hot spots across Australia
In 2024–25, New South Wales residents raised 15,907 tip-offs, followed closely by Victorians with 11,890 and Queenslanders with 10,630.

While Sydney and Melbourne topped the charts for tip-offs, red flags aren’t just flying in the capital cities.

In fact, the top 5 regional areas for tip-offs this year were mostly in Queensland:
Newcastle, NSW
Robina, QLD
Sunshine Coast Hinterland, QLD
Townsville, QLD
Toowoomba, QLD
‘From coastal towns to inland hubs, communities are calling out suspicious behaviour and helping the ATO crack down on the shadow economy,’ Mr Goding said.
industries under the microscope
The top 3 industries seeing a surge in red flags this year are:
• building and construction
• cafés and restaurants
• hairdressing and beauty services.
‘With tip-offs often coming from customers, employees, other businesses, and even family and friends, the community is clearly fed up with dodgy behaviours and is stepping up to help us make things fairer,’ Mr Goding said.

The ATO receives almost 1,000 tip-offs every week from people who know or strongly suspect tax evasion.
ATO
Babo Group Pty Ltd ©
03 94660200
Our Disclaimer, please note the above information (either in part or in total) is not to be construed to be advice in any form. This is not drafted as tax, investment or professional advice. It is only for the purpose of general discussion and should not be relied upon for your circumstances. Please refer your specific or general circumstances directly to your professional advisor.
In-addition to our disclaimer, the notes above have been either summarised or in brief. You must make your own enquiries.

12/11/2025

ATO warning.
Dental expenses are private expenses
You cannot claim dental and medical expenses. These are private expenses.
We’re seeing a number of deduction claims for dental expenses this tax time.

Dental expenses, including preventative and necessary dental treatment, medical expenses, and other costs relating to your client’s personal appearance, like teeth whitening, makeup, skin care, shaving products, and haircuts are not deductible. These are private expenses.

This is the case even if an employer expects your client to maintain a certain appearance or pays them an allowance to cover grooming expenses.

• They can only claim an expense that directly relates to earning their income. If there’s no direct connection, they should not claim a deduction.
• Private expenses can’t be claimed as a deduction.

Always Confirm you:

• Have written evidence of all their expenses.
• You show a direct connection to earning their employment income.
ATO QC 105825
Our Comment: Just keep smiling regardless
Babo Group Pty Ltd ©
03 94660200
Our Disclaimer, please note the above information (either in part or in total) is not to be construed to be advice in any form. This is not drafted as tax, investment or professional advice. It is only for the purpose of general discussion and should not be relied upon for your circumstances. Please refer your specific or general circumstances directly to your professional advisor.
In-addition to our disclaimer, the notes above have been either summarised or in brief. You must make your own enquiries.

11/11/2025

ASIC drives car finance providers to improve consumer outcomes.
ASIC media release (25-269MR)
ASIC’s current review of Australia’s motor vehicle finance sector has exposed cracks in some lenders’ oversight of car finance distributors—revealing problematic sales tactics, and a lack of regular audits and checks by lenders.

ASIC’s review follows a spike in complaints about motor vehicle finance to the regulator, as well as reports from consumer advocates about excessive establishment and interest costs as part of various car finance arrangements.

Most lenders examined by ASIC rely on intermediaries, such as brokers and dealerships, to arrange motor vehicle finance, with ASIC uncovering significant variations in loan establishment costs.

‘We saw instances of loan establishment fees as high as $9,000 on a loan of $49,000,’ ASIC Commissioner Alan Kirkland said.

‘We also found that almost half of all consumers who defaulted on their car finance repayments did so within the first six months of the loan. And of vehicles that were repossessed and sold, nearly 90% of consumers still owed more than half of their original loan amount.

‘These numbers raise questions about whether these consumers have been given loans they cannot afford to repay, which is consistent with key themes in complaints that led to this review.’

ASIC will continue its probe to understand why such considerable cost differences exist and separately why many customers cannot keep up with repayments in the first year of their loan term.

The initial phase of this review examined every stage of a customer’s journey, from finance application, loan assessment and responsible lending checks to hardship requests, support, and dispute resolution. It highlighted the impact of unaffordable loans on customers and how this is resulting in poor consumer outcomes.

In response, ASIC has issued tailored action letters to participating lenders based on our preliminary findings, with specific recommendations for each. The range of identified areas for improvement include:
• Better training, accreditation processes and oversight of lenders’ finance distribution channels
• Stronger product review triggers and risk frameworks using consumer harm indicators and available data, including internal and external dispute resolution data to ensure products reach the right target market
• Improved communication when financial hardship arrangements are in place (in line with ASIC’s recent hardship report), including better information on voluntary surrender options
• Enhanced governance frameworks to ensure adequate oversight of intermediary brokers and dealers.

Detailed findings from ASIC’s review will be released in 2026 and will include information on how lenders have responded to ASIC’s recommendations.

Mr Kirkland said, ‘We’ve identified areas where lenders must lift their standards, or risk leaving consumers exposed to poor financial outcomes.

‘ASIC will take enforcement action to protect consumers where appropriate.’

ASIC currently has proceedings against car dealership Diamond Wheels, Keo Automotive and a former director for allegedly providing car loans to consumers while unlicensed, with many of those consumers having paid an excessive interest rate (24-209MR).

ASIC also took action against Money3 Loans following numerous complaints, including from consumer advocates, about the inappropriate provision of finance to vulnerable consumers. While the court recently ruled largely in Money3’s favour, some limited contraventions of the responsible lending provisions of the Credit Act were found (25-198MR).
Background
This review takes a broad look at the motor vehicle finance sector, noting that misconduct in used car finance sold to vulnerable consumers remains a key enforcement priority for ASIC in 2025.
Lenders involved in the review:

• Australian Alliance Automotive Finance Pty Ltd
• Angle Auto Finance Pty Ltd
• Latitude Automotive Financial Services
• Nissan Financial Services Australia Pty Ltd
• Pepper Asset Finance Pty Ltd
• Plenti Finance Pty Ltd,
• Rapid Loans Pty Ltd and
• Toyota Finance Australia Limited (including PowerTorque Finance).

ASIC…..
Babo Group Pty Ltd ©
03 94660200
Our Disclaimer, please note the above information (either in part or in total) is not to be construed to be advice in any form. This is not drafted as tax, investment or professional advice. It is only for the purpose of general discussion and should not be relied upon for your circumstances. Please refer your specific or general circumstances directly to your professional advisor.
In-addition to our disclaimer, the notes above have been either summarised or in brief. You must make your own enquiries.