Working overseas doesn’t automatically make you a tax non-resident

If you’re thinking about taking a job overseas, don’t assume you’ll automatically become a foreign resident for Australian tax purposes. A recent Federal Court case involved an engineer who lived and worked in Dubai for around five years. Despite spending most of that time overseas, he remained an Australian tax resident under one of the residency tests.

His ongoing ties to Australia included his family home in Perth, investment properties, Australian bank accounts and superannuation. His wife and children largely remained in Australia, and he returned 12 times during the five-year period.

Why does this matter? Australian tax residents are generally taxed on their worldwide income, while foreign residents are generally taxed only on Australian-sourced income. Getting your residency status wrong can be costly.

There’s no simple time-based rule or other safe harbour that automatically makes you a foreign resident after a certain period overseas. Your tax residency depends on your overall circumstances, including your living arrangements, family connections, assets, employment arrangements and intentions.

If you’re working overseas now, planning an overseas assignment or returning to Australia after time abroad, it’s worth checking your residency position so you can get your tax right. Talk to us if you’d like help working through the rules.

Crypto tax for individual investors: beware CGT on your digital assets

Investing in cryptocurrency? It’s important to remember that the ATO generally treats crypto as a capital gains tax (CGT) asset.

Many investors focus on tax when they convert crypto back into cash, but selling isn’t the only event that can have tax consequences. Exchanging one crypto asset for another or disposing of crypto in other ways can also trigger a CGT event. That means it’s important to keep good records of every transaction, including dates, values and details of what was bought, sold or exchanged.

While profitable transactions can result in a capital gain, losses may also occur. Those losses aren’t necessarily wasted, but they generally can’t be used to reduce your salary or other income. Instead, capital losses are generally used against capital gains.

If you’ve held a crypto asset for at least 12 months, you may be entitled to the CGT discount, which can reduce the taxable capital gain.

It’s also worth remembering that the ATO receives information about crypto transactions through its data-matching programs. Leaving crypto transactions out of your tax return is becoming increasingly difficult.

Fuel tax credits: are you using the right rate?

If your business claims fuel tax credits, you should always make sure you’re using the correct rates before lodging your next BAS.

Fuel tax credit rates changed again on 3 August 2026 following CPI indexation. This is the fourth rate movement this year, following earlier changes in February, April and July.

For many businesses, the key issue is timing. Fuel tax credits are generally calculated using the rate that applied when the fuel was acquired, not when it was used. That means a single BAS period may include fuel purchased under more than one rate.

The changes can affect a wide range of businesses, including transport operators, primary producers, tradies, contractors and businesses that use fuel in plant, equipment or generators. Businesses that store bulk fuel may also need to pay particular attention to their records. Keeping clear information about purchase dates, fuel types and business use can make it much easier to calculate claims correctly.

The ATO recommends using its fuel tax credit calculator to help ensure the correct rates are applied.

Drawing on super doesn’t necessarily mean stopping work

Many people assume that once they start drawing on their super, there’s a limit on how much they can earn from part-time or casual work. For self-funded retirees, that’s generally not the case.

If you’re not receiving the Age Pension or another means-tested government payment, there’s generally no cap on what you can earn simply because you’re drawing an income from your super. Any wages you earn are still taxed in the usual way, but receiving super benefits doesn’t automatically restrict your ability to work.

The more important question is whether you’ve met a condition of release that allows you to access your super in the first place. For example, many people can access their super once they reach age 65, regardless of whether they’re still working. People aged between 60 and 64 may also be able to access their super if they’ve retired or met another condition of release.

Many people over 60 receive super benefits tax-free from a taxed super fund, while any employment income they earn continues to be taxed under the ordinary income tax rules.

If you’re drawing on your super and thinking about returning to work, or reducing your hours rather than retiring completely, it’s worth checking how the rules apply to your circumstances before making decisions.

A little about account-based pensions

As retirement approaches, one of the biggest decisions many people face is how to turn their super savings into an income. An account-based pension is one option. Rather than taking your super as a lump sum, an account-based pension allows you to transfer some or all of your super into a retirement income account and receive regular payments over time.

Many retirees are attracted to account-based pensions because they offer flexibility. You can generally choose how often you receive payments and how much income you draw, subject to minimum annual payment requirements. Depending on your fund’s rules, you may also be able to withdraw lump sums when needed.

However, account-based pensions aren’t risk-free. Your money stays invested, which means your account’s value can rise or fall depending on investment performance and how much you withdraw. The decisions you make about investments and income levels can affect how long your retirement savings last.

Account-based pensions can also offer favourable tax treatment in retirement, although the tax rules can be complex and will depend on your personal circumstances. An account-based pension is just one of several ways to access your super in retirement. If you’re starting to think about retirement income options, it’s worth understanding how the different approaches work before making decisions.

Think you can spot a scam? What about misinformation?

Most people know to be cautious of unexpected texts, emails or phone calls claiming to be from the ATO. But not every costly mistake starts with a scam. Sometimes it starts with information that sounds convincing but turns out to be wrong.

The ATO is warning that misinformation found in search results, AI-generated summaries, websites and social media can lead people to make tax and super decisions based on incorrect or incomplete information.

Tax time creates the perfect environment for both scams and misinformation to spread. Messages may impersonate the ATO or myGov, while online tax tips may not take individual circumstances into account. Just because something appears at the top of a search page or has been shared widely online doesn’t mean it’s correct.

Before acting on something you’ve seen online, ask yourself whether it can be verified against an official source and whether it actually applies to your circumstances. If something sounds too good to be true, it may be worth taking a closer look.

If you’ve seen something online about tax, deductions, refunds or super and you’re unsure whether it’s correct, ask us before acting. A quick conversation now may save significant time, money and stress later.

Already lodged your tax return? Don’t forget the review step

Many Australians have already lodged their 2025–2026 tax return. For some, the process is finished. For others, additional information may arrive later, records may turn up, or they may realise something was missed when the return was lodged.

If you’ve already lodged, don’t assume it’s too late to fix a mistake. Tax returns can generally be amended if information was omitted, an error was made, or new information comes to light after lodgment.

You might receive an income statement, dividend statement or interest summary you hadn’t seen before, find records you thought were lost, or notice that something in your return doesn’t match your own records.

If you lodged the return yourself and have concerns about something you’ve discovered, it may be worth seeking advice before deciding whether any action is needed. If your tax professional lodged the return, let them know as soon as possible so any necessary corrections can be considered.

The ATO generally recommends waiting until your original return has been processed before requesting an amendment.

If you’ve found information that may affect your tax return and you’re unsure what to do next, contact us. We can help you work through the issue and determine whether any further action may be required.

When set-and-forget convenience starts costing you

Have you ever received a renewal notice, noticed the price had gone up and simply paid it? According to the Australian Securities and Investments Commission (ASIC), many Australians do exactly that, particularly with car insurance.

ASIC recently reported that many consumers don’t understand why their insurance premiums have increased and often don’t actively review their renewal notices. While the review focused on car insurance, the same “set and forget” habit can affect many other recurring expenses, including phone plans, internet services, subscriptions and memberships.

Small increases can be easy to miss, particularly when payments renew automatically or are paid by direct debit. Over time, those increases can have a much bigger impact than many people realise.

A renewal notice can be a useful prompt to ask a few simple questions. Is this still something you need? Does it still suit your circumstances? Do you understand what you’re paying for? Has anything changed since you first signed up?

Reviews aren’t only about finding savings. They can also help you better understand your cash flow, spending habits and broader financial position.

If it’s been a while since you’ve reviewed your recurring financial commitments, now may be a good time to take another look.

$20,000 instant asset write-off now permanent for small business

If you’ve been delaying equipment purchases because the instant asset write-off seemed to change every year, there’s now more certainty.

As announced in the 2026–2027 Federal Budget, the $20,000 instant asset write-off has been made a permanent feature of the tax system for eligible small businesses. Without the change, the threshold was due to fall back to $1,000 from 1 July 2026.

Eligible small businesses with turnover below $10 million that use the simplified depreciation rules can immediately deduct the taxable-purpose portion of eligible assets costing less than $20,000, provided the asset is first used, or installed ready for use, for a taxable purpose on or after 1 July 2026.

The threshold applies to each individual asset, so multiple assets may qualify. The write-off can apply to a wide range of business purchases, including computers, tools, equipment, furniture and some vehicles used in the business.

The permanent extension provides greater certainty when planning future business investments, but timing still matters. An asset generally must be first used, or installed ready for use, before the deduction can be claimed.

Has your business outgrown its structure?

When you first started your business, choosing a structure was likely one of the earliest decisions you made. Whether you operate as a sole trader, partnership, company or trust, that choice affects your tax obligations, reporting requirements, administration and in some cases your personal liability.

What worked well when the business was smaller may not necessarily be the best fit today.

Many businesses evolve over time. Revenue grows, employees are hired, family members become involved, new products or services are introduced, and record-keeping requirements become more complex. These changes are often positive signs of growth, but they can also be a prompt to review whether your current structure still suits the way you operate.

While tax is an important consideration, it is only one part of the picture. Legal obligations, business control, administrative requirements and risk management all deserve attention when reviewing a business structure.

If your business has changed significantly since you first set it up, now may be a good time to review your current arrangements. In many cases, the existing structure will remain appropriate, but a review can help identify whether there are issues worth exploring further.

Government funding doesn’t always mean tax-free income

If your business provides services under a government-funded program, it’s important not to assume that payments you receive are tax-free simply because the money originates from a government source.

The ATO has recently reminded service providers that payments received for delivering services under participating Commonwealth programs will generally form part of their assessable business income.

This issue can affect businesses operating in a range of sectors, including disability support, aged care, childcare, hearing services, NDIS-related services and veteran health services.

If your business receives payments under a government program, you should ensure the income is recorded correctly, included in your tax return and supported by appropriate records. Treating these amounts as non-taxable may result in unexpected tax liabilities later.

The ATO receives information about payments made under government programs, making it easier to identify discrepancies between amounts received and amounts reported, so if your business receives government-funded payments and you’re unsure how they should be treated for tax purposes, talk to us.

Are your financial goals still realistic?

Life rarely stands still. Career changes, growing families, property decisions and shifting personal priorities can quietly reshape what matters most to you financially. A goal that felt urgent five years ago may now be less relevant, while something that barely registered back then may have moved to the top of the list. That’s why a periodic check-in is worthwhile. Even if you decide your goals don’t need to change, revisiting them means a chance to confirm whether your current financial arrangements are still working in the right direction.

It can help to group your goals by thinking about what you want to achieve, how much money you’ll need and how long you have to get there. Consider:

• short-term goals, such as building an emergency fund or saving for a holiday;
• medium-term goals, such as paying down debt or renovating; and
• long-term goals, such as building wealth for retirement.

Your investments should reflect three things working together: your goals, your investment timeframe (how long before you need the money) and your risk tolerance (how comfortable you are with ups and downs in value).

All three can shift. Someone with fewer financial obligations may accept more short-term volatility than someone closely approaching a property purchase or retirement. Health changes, job changes and family responsibilities can also affect how much risk feels appropriate at any given time.

Retirement planning benefits from the same kind of review. The lifestyle you pictured years ago, whether that involved travel, downsizing, helping family or working part-time, may look different today.

Thinking through the kind of life you want after work, what it might cost and where the income will come from helps keep your retirement plan connected to reality. Remember, a review doesn’t always have to mean big changes. Often it simply confirms you’re on track, or highlights small adjustments that could be worth making now rather than later.

You don’t need to make spreadsheets or major decisions to start. Taking a few minutes to compare where you are now with where you want to be is often the most useful step.

Take care when claiming occupancy expenses for work from home

The ATO has found that some taxpayers are incorrectly claiming rent, mortgage interest and other occupancy costs as part of their working from home expenses. The key to getting it right is understanding the difference between running expenses and occupancy expenses, and what you’re eligible to claim.

Running expenses are the extra costs you incur working from home. These can include costs for heating, cooling or lighting; internet or data; phone costs; stationery; computer consumables; and the decline in value of office furniture or equipment not provided by your employer. You can’t claim expenses that have been reimbursed by your employer.

Occupancy expenses are the costs of owning or renting your home. These include mortgage interest, rent, council and water rates, land tax and house insurance premiums.

Employees can generally claim running expenses if they work from home to perform their substantive employment duties (not just answering a few emails or taking phone calls), incur additional costs as a result, and keep records to support the claim. There are two ways to calculate the deduction: the fixed rate method and the actual cost method.

Occupancy expenses are rarely deductible for employees. To claim occupancy expenses, you generally need to show that your home work area has the character of a place of business.

If you’re eligible to claim occupancy expenses, you must apportion them (which means calculating amounts related to private use versus work use) and only claim the work portion. This is generally based on the floor area used for work; the period the area was used for work; and your ownership or share, if the property’s jointly owned or the rent’s shared. There may also be capital gains tax consequences for occupancy expenses when using part of your home as a business premises.

ASIC report suggests it’s time to check on your mortgage offset account

You set up your offset account expecting it to reduce the interest charged on your home loan. But what if it’s not linked correctly, or isn’t operating as intended? ASIC has released a report examining how major lenders manage mortgage offset accounts. The review covered eight banks representing more than 70 per cent of Australia’s home loan market.

While practices varied across the banks, ASIC identified weaknesses at each lender in how offset accounts were opened, linked, monitored and managed. In some cases, customers missed out on the interest savings they were entitled to receive.

Offset accounts are marketed as an easy way to reduce interest across the life of a loan, yet the review found this promise isn’t always delivered. Loan repayments can stay the same while customers unknowingly pay more interest and take longer to repay their loan.

Among the failure types identified across the 204,000 loans reviewed, 55% involved an offset account that had been opened but not linked to the home loan, while 22% involved an account that hadn’t been opened. Other issues stemmed from system errors, process gaps and poor record keeping. In some cases, banks couldn’t even confirm whether a customer had originally asked for an offset account.

Given ASIC’s findings, you may wish to check that your offset arrangement is operating as intended:

• log in to your online banking or mobile app and confirm the offset is linked to your home loan;
• check whether the balance is being applied to the correct loan and at the applicable offset percentage provided under your loan terms;
• review recent loan statements for anything that looks inconsistent; and
• if you’ve refinanced or switched loan products, ask your bank whether the offset needs to be re-linked.

If the information is not available, raise it with your bank.

Paid parental leave super contributions have started

Welcoming a new child is a huge milestone, but taking time out of the workforce can also mean a pause in super contributions. From July 2026, that gap starts to narrow for eligible parents who received government-funded Parental Leave Pay (PLP) for a child born or adopted from 1 July 2025.

The Paid Parental Leave Superannuation Contribution (PPLSC) is a government-funded super payment for eligible parents who receive PLP and is intended to help reduce the long-term superannuation gap that can arise when a person takes time out of the workforce to care for a child.

Under the scheme, the ATO pays the contribution into your super fund as a lump sum after the end of the financial year in which you received PLP. There’s no need to make a separate application to receive the PPLSC.

The first PPLSC recipients will be individuals who received government-funded PLP in 2025–2026 for children born or adopted from 1 July 2025. Calculation and payment of PPLSCs by the ATO will begin from the start of the 2026–2027 financial year. For PLP received in 2026–2027, the related PPLSC will generally be paid after the end of that financial year.

The PPLSC is calculated by applying the superannuation guarantee rate of 12% to the PLP paid to you, and also includes a nominal interest component designed to compensate for the time between the original PLP being paid and the later ATO payment of the PPLSC.

The contribution is taxed at 15% in the super fund and counts towards your concessional contributions cap. If you also make salary sacrifice or personal deductible contributions, the PPLSC may need to be considered in your contribution planning for the year the lump sum is received.

In most cases, the ATO will pay the contribution to the fund that currently receives your super contributions. To help avoid delays, check that: your personal details are up to date with the ATO, Services Australia and your super fund; and your name and address match across your ATO, Services Australia and super fund records.

If PLP was shared, each person receives a contribution based on their share of the PLP taken. This makes it especially important that all details are up to date.

Division 296 tax on large super balances

If your total superannuation balance is above $3 million, a new layer of tax may apply to certain earnings attributable to the portion above that threshold. Division (Div) 296 tax applies from the 2026–2027 income year, with assessments expected after the relevant earnings information has been reported to the ATO.

Div 296 tax is levied directly on the individual and is separate from personal income tax and superannuation fund tax. The ATO issues the assessment, and payment is generally due within 84 days of the notice. Div 296 tax is in addition to the (up to) 15% tax that super funds pay on fund earnings in the accumulation phase.

From 2026–2027, Div 296 tax applies to you if you have a large total superannuation balance (TSB) as follows:

• TSB up to $3 million: no Div 296 tax;
• TSB above $3 million: 15% Div 296 tax on earnings attributable to super balances over $3 million; and
• TSB above $10 million: a further 10% Div 296 tax on earnings attributable to super balances over $10 million.

These thresholds are indexed to the Consumer Price Index.

Unlike the tax on earnings paid by super funds, Div 296 tax applies to large super balances in the retirement phase as well as the accumulation phase.

You may be liable for Div 296 tax if your total superannuation balance just before the start of the year, or at year end, is above $3 million and your total superannuation earnings for the year are greater than nil (although for the first year of this new tax the ATO
will only look at your TSB on 30 June 2027). Your TSB generally includes Australian super interests in APRA-regulated funds, SMSFs and relevant public sector schemes, subject to valuation rules and exclusions. Foreign super interests are excluded.

Certain individuals are excluded, including child recipients of a super income stream and individuals for whom a structured settlement contribution has been made in the relevant income year or any earlier income year.

The Div 296 tax calculation includes three broad steps:

• your super fund calculates its Div 296 fund earnings for the whole fund for the year;
• the fund attributes a share of those earnings to your interest in the fund and reports the amount to the ATO; and
• the ATO applies a formula to work out the proportion of your TSB above each threshold and calculates the tax.

Div 296 fund earnings for APRA-regulated superannuation funds are attributed by the fund trustee on a fair and reasonable basis. However, small funds, including SMSFs, must use a specific formula to calculate the member’s share of earnings, based on the average value of their interest in the fund over the year. Trustees of defined benefit and certain other superannuation interests that don’t have an account balance attributable to the beneficiary (eg lifetime income streams) use an alternative method to attribute your earnings that’s more appropriate for those particular types of superannuation interests.

You can pay Div 296 tax personally, elect to release the amount from your super, or use a combination. If electing release, your application generally must be lodged within 60 days of the assessment notice. Tax attributable to a defined benefit interest is generally deferred until benefits become payable.

Don’t rush to lodge too early this tax time!

You may be tempted to lodge your tax return on 1 July to tick that job off the list, or to chase a refund to help with cost of living pressures. However, the ATO has a clear message this year: slow down and get it right. Early lodgers are far more likely to make mistakes, but patience and taking time to get all your financial information together usually leads to a smoother result.

The ATO automatically pre-fills information from your employer, banks, government agencies and health funds into your tax return to help you get it right the first time. While some pre-fill data trickles through from 1 July, most reporting and information is finalised later in the month.

If you wait until late July to lodge, most pre-fill information about your wages, bank interest, government payments and private health insurance details will be pre-filled. You can (and should!) still check it against your own records, add anything that is missing and include any deductions or offsets you’re eligible for.

While you wait for pre-fill to be complete:

• check your contact details and bank account information are up to date, so corrections after lodgment don’t delay your refund;
• collect receipts, logbooks and any private health insurance details so you have them ready to check against pre-filled information;
• review the ATO’s occupation guides to confirm which deductions apply to your line of work; and
• download or check the ATO app to track employment income, store your expense records and receive ATO account notifications.

Once pre-filled data is available, don’t just accept it on face value. Cross-check the figures against your own records, particularly for bank interest, dividends and government payments. If something looks wrong, contact the provider so corrections can flow through to the ATO.

If you realise after lodgment that something’s missing or incorrect, you can fix it through the ATO online amendment process via myGov once the original return has been processed, or by speaking with your registered tax agent.

Tax hacks, half-truths and what the ATO’s watching

Scrolling social media for a quick tax win? You’re not alone, but you may be heading for trouble. Incorrect claims are firmly on the ATO’s radar this tax time, and it’s outlined the key areas it’ll be watching when returns start landing.

The ATO is urging the community to be wary of incorrect or misleading information, particularly claims promising bigger refunds, shortcuts or hacks. A lot of the bad advice doing the rounds is coming from third-party sources: AI tools, social media “finfluencers”, and even well-meaning family and friends, who may unintentionally pass on information that simply doesn’t apply to your circumstances.

The key is, you remain responsible for what’s on your return. Taxpayers are accountable for ensuring the information they or their agents give the ATO is accurate, regardless of whether it came from a mate, a website or a chatbot. Penalties and interest can apply where claims can’t be substantiated.

Focus area 1: work-related expenses

Overclaimed work-related deductions are once again under the microscope. Every work-related claim must meet three tests:

• the expense must directly relate to earning your income;
• you must have paid for it yourself and not been reimbursed; and
• you must have a record, such as a receipt, invoice or logbook, to back it up.

If you work from home, the fixed rate method lets you claim 70 cents for every hour worked from home, which already covers running costs such as internet, phone usage, electricity and stationery. A common mistake is “double-dipping” – using the fixed rate and then separately claiming items it already includes. Keeping a clear record of your hours worked from home throughout the year will make this far easier to substantiate.

Focus area 2: omitted income

The ATO is also reminding taxpayers to declare all sources of income on their return, including side-hustles, cash jobs, interest and rental income. With extensive data matching now in place across banks, sharing economy platforms and property managers, undeclared income is far more visible to the ATO than many people realise.

The flip side is that legitimate deductions are often broader than expected. The ATO’s occupation and industry specific guides – or a quick chat with your registered tax professional – can help you identify everything you’re properly entitled to claim.

Juggling multiple jobs without a tax time shock

Picking up a second job, holding multiple part-time roles, or doing gig work is now part of everyday life. But the way tax is withheld across multiple payers can lead to a surprise when you lodge your tax return. Making a plan can help avoid a lump sum bill later.

As an Australian resident for tax purposes, you’re generally entitled to the $18,200 tax-free threshold. This means you can earn up to $18,200 in an income year before paying income tax. Income from employers, taxable government payments, sole trader or contractor work under an Australian Business Number (ABN), gig work and some investment income can all count towards your total taxable income.

If you have more than one payer or employer at a time, you can generally only claim the tax-free threshold from one payer. Usually, this is the payer who pays you the highest salary or wage. If you’re certain your total combined income from all sources will be $18,200 or less, you can choose to claim the tax-free threshold from each payer.

A common mistake is claiming the tax-free threshold from every employer or payer. Each employer or payer then calculates your tax to be withheld on the basis that the tax-free threshold applies. At tax time, the ATO combines your income from all sources to work out how much tax you owe and if not enough tax has been withheld, you may receive a tax bill.

If you have more than one job and expect to earn more than $18,200 in total income, you should ask your other employers or payers to withhold tax at the higher “no tax-free threshold” rate.

If you drive for a ride-share platform, deliver food, earn gig economy income, rent out assets or run a side business, tax may not be automatically withheld from this income.

If you’re eligible, voluntary pay as you go (PAYG) instalments or tax prepayments can help you prepay your tax in manageable chunks throughout the year. This can also help you manage cash flow for extra tax liabilities like the Medicare levy or compulsory study loan repayments. If PAYG instalments are not available or suitable for you, set aside a portion of your income in advance to help meet your liabilities.

If you have a study or training support loan (eg HECS/HELP), take extra care. Your compulsory repayments are based on your total repayment income, not just your main wage. Earning income from additional jobs, self-employment, side hustles or investments can increase your repayment. Tell each employer or payer about your loan so they withhold the right amounts.

What to check with your employer and payslips as payday super begins

Payday super is now law and, from 1 July 2026, employers must pay super at the same time as wages. Contributions your employer makes will generally need to reach your fund within seven business days of each payday.

Payday super doesn’t change how often you’re paid wages. Payday frequency is still set by employment contracts, awards or enterprise agreements. What changes is when your super must be paid. If you’re paid weekly, super is paid weekly. If you’re paid fortnightly, super is paid fortnightly.

In the lead-up to payday super, your employer may ask you to confirm your super fund details. This gives them a chance to update their records and reduces the risk of contributions being sent to the wrong place once the new rules begin. If you’ve changed super funds recently, or are thinking about it, now’s the time to make sure your employer has the correct fund details on file.

The first time you’re paid after 1 July 2026, you should see super listed on your payslip alongside your wages. Shortly after, check your super fund account to confirm the contribution has been received and allocated.

Employers generally need pay contributions in time for them to be received by your fund within seven business days of payday. However, funds may have their own processing time before amounts appear in your member account.

A few simple habits will help you stay across your entitlements:

• check that each payslip shows a super amount;
• log in to your super fund and confirm contributions are arriving regularly;
• compare the amount received against the amount shown on your payslip; and
• watch for any unexplained gaps between pay cycles.

If you decide to change super funds, tell your employer promptly. A delay in passing on new fund details could lead to a contribution being missed, delayed or sent to an old account by mistake.

If super isn’t showing on your payslip, or hasn’t landed in your fund, start by speaking with your employer. Useful questions include:

• which fund the contribution was sent to;
• what date the payment was made; and
• whether any error messages came back from the fund.

If you don’t get a clear answer, or the issue isn’t resolved, you can raise it with the ATO. Under payday super, the ATO will have earlier visibility of unpaid or late super, so issues can be identified and corrected sooner.

Fixing rejected payday super contributions from 1 July 2026

From 1 July 2026, when you’re required to pay your employees’ superannuation will change. Under the new payday super rules, super guarantee (SG) contributions must reach your employees’ funds within seven business days of each payday. With this much tighter window, knowing how to spot and fix a rejected contribution quickly is essential to avoid penalties.

The key change is speed. If a super fund rejects your contribution through SuperStream, it will generally need to allocate or return the payment within three business days. A rejection doesn’t by itself satisfy the seven-business-day receipt requirement; you need to resolve issues and resubmit in time for the fund to receive the contribution by the original due date, unless an extended timeframe applies.

Most rejections come down to data quality. The ATO and SuperStream identify incorrect fund details, unique superannuation identifiers (USIs), member numbers or tax file numbers (TFNs) as frequent culprits. Where SuperStream’s used (as is generally required for employer contributions), your clearing house or digital service provider should provide clearer error messaging from 1 July 2026 under the SuperStream v3 upgrade.

If a contribution bounces back, you should:

• check the error message from your clearing house or digital service provider straight away;
• review and correct employee data such as TFNs, names and fund details;
• use a member verification request (MVR) to confirm fund details before resubmitting;
• resubmit the contribution within the original seven business day window; and
• if the stapled fund rejects the payment, follow ATO choice-of-fund rules and pay to an eligible alternative fund.

Extended 20-business-day timeframes apply in some specific circumstances, such as where you’re changing the fund you contribute to for an employee.

If the seven business day window closes before the contribution lands, the super guarantee charge (SGC) begins to apply. The SGC now includes the shortfall, daily compounding notional earnings, and an administrative uplift amount of up to 60% (subject to reductions for voluntary disclosure). The good news is the SGC is tax deductible from 1 July 2026 (although penalty and ATO general interest charges on unpaid amounts remain non-deductible).

You should still pay the late contribution directly to the employee’s super fund before the ATO issues an assessment, as this can reduce (but not eliminate) the SGC.

The ATO’s signalled a risk-based, facilitative approach during 2026–2027 for employers making genuine efforts to comply. Occasional late payments arising from rejected funds or incorrect details, where promptly fixed, are likely to be treated as low risk under this approach. Deliberate or serious non-compliance, however, will attract firmer action.

Budget offers personal tax relief but super largely untouched

The 2026–2027 Federal Budget’s headline personal tax measures will reshape financial planning strategies from 2027. A new $250 working Australians tax offset (WATO) will apply from 1 July 2027, effectively increasing the tax-free threshold for work income to $19,985. Combined with the previously announced $1,000 standard deduction for work-related expenses, workers could see substantial tax savings. The government confirmed existing modest tax rate reductions will proceed, with the 16% rate dropping to 15% in 2026–2027 and 14% in 2027–2028 for income between $18,201 and $45,000.

From 1 July 2027, the 50% capital gains tax discount will be replaced with inflation-adjusted indexation, accompanied by a minimum 30% tax rate on realised gains. This affects all assets held by individuals, trusts and partnerships for more than 12 months, including pre-1985 assets. The changes include transitional arrangements so only gains arising after 1 July 2027 face the new rules.

Complying super funds, including SMSFs, will continue receiving their existing one-third capital gains tax discount, so super funds will maintain their 10% effective tax rate on capital gains for assets held longer than 12 months. This makes superannuation even more attractive relative to personal investments, particularly given the new minimum 30% tax rate applying outside super.

From 1 July 2028, discretionary trusts will face a minimum 30% tax rate on taxable income. Beneficiaries will receive non-refundable credits for tax paid by trustees, but this could result in higher effective tax rates for lower-income beneficiaries who would normally pay less than 30%. The government will provide expanded rollover relief for three years from 1 July 2027.

Investment property strategies will change from 1 July 2027, with negative gearing limited to newly constructed dwellings. Losses from established residential properties will only be deductible against rental income or capital gains from residential properties. Properties owned at Budget time remain exempt until sold.

Business tax relief package for immediate support

The Federal Budget announcements include a comprehensive business tax relief package designed to support companies and encourage investment and innovation.

Small businesses can breathe easier with the permanent extension of the $20,000 instant asset write-off for businesses with turnover up to $10 million. This measure was set to revert to $1,000 on 30 June 2026 but now provides ongoing certainty for equipment purchases and business expansion plans.

Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool, with deductions of 15% in the first year and 30% thereafter. The provisions preventing businesses from re-entering the simplified depreciation regime for five years after opting out remain suspended until 30 June 2027.

From 1 July 2028, discretionary trusts will face a minimum 30% tax rate on taxable income. Beneficiaries will receive non-refundable credits for tax paid by trustees, but this could result in higher effective tax rates for lower-income beneficiaries who would normally pay less than 30%. The government will provide expanded rollover relief for three years from 1 July 2027 to help restructure discretionary trusts into companies or fixed trusts.

From 1 July 2026, companies with aggregated annual global turnover below $1 billion will again be able to carry back tax losses and offset them against tax paid up to two years earlier. This applies to revenue losses only and remains limited by a company’s franking account balance.

The Budget confirmed the proposed changes to the FBT exemption for electric vehicles (EVs). The changes will be phased in over the next three years until a permanent 25% discount is operating from 1 April 2029 for all eligible EVs. There will be no changes in the current FBT year. Further, for EVs costing less than $75,000, there will be no changes until 1 April 2029.

The Research and Development Tax Incentive faces major reforms from 1 July 2028. Core research and development offset rates will increase by 4.5 percentage points, while the intensity threshold drops from 2% to 1.5%.

The turnover threshold for the highest offset rate increases from $20 million to $50 million, and the maximum expenditure threshold rises from $150 million to $200 million. However, supporting research and development expenditure will lose eligibility, and the minimum expenditure threshold increases from $20,000 to $50,000.

From 1 July 2027, small and medium businesses can opt into monthly PAYG instalment reporting and payments. This system will use ATO-approved calculations embedded in accounting software to better reflect real-time business activity.

What’s the difference between tax deductions and tax offsets?

With the 2026–2027 Federal Budget announcing a new $1,000 standard work-related expenses deduction and a $250 working Australians tax offset (WATO) for future financial years, you might be wondering about the difference between these two types of tax benefits. Both deductions and offsets can reduce how much tax you pay, but they work in quite different ways. Tax deductions reduce your taxable income before your tax is calculated. Common deductions you might already claim include:

• work-related expenses like uniforms or tools;
• gifts and donations to registered charities;
• investment property expenses; and
• costs of managing your tax affairs, such as tax agent fees.

For example, if you earn $60,000 and claim $2,000 in work-related deductions, your taxable income becomes $58,000. You then pay tax on this reduced amount.

The value of a deduction depends on your marginal tax rate. For example, a $1,000 deduction may save a resident taxpayer around $300 if their marginal tax rate is 30%, or $160 if their marginal tax rate is 16%, ignoring Medicare levy and other factors.

Tax offsets work differently: they directly reduce the actual tax you owe, dollar for dollar. They’re applied after your tax has been calculated on your taxable income. You might already receive offsets such as the:

• low income tax offset (LITO) of up to $700 for those with taxable income under $66,667;
• seniors and pensioners tax offset (SAPTO) for eligible pensioners;
• private health insurance rebate (a rebate is the same as an offset); or
• spouse superannuation contribution offset.

So, if you have taxable income of $30,000 and owe $1,888 in tax, then receive a $700 LITO, your final tax bill becomes $1,188.

Understanding this distinction can help you prioritise your tax planning strategies. A $1,000 offset is always worth exactly $1,000 off your tax bill (if you have at least $1,000 of income to absorb it). A $1,000 deduction might save you anywhere from $160 to $450 in income tax, depending on your tax bracket.

This is why the government’s Budget announcement of both types of measure is significant.

There’s another important point to note: most tax offsets can only reduce your tax to zero, not below. If you don’t owe any tax, you typically won’t receive the offset as a cash payment. However, some offsets like the private health insurance rebate are refundable.

Planning ahead

While the newly announced measures won’t apply to 2025–2026 tax returns, it’s worth reviewing your current deductions and offsets. Are you claiming all the deductions you’re entitled to? Are you receiving all available offsets? The ATO automatically calculates some offsets like LITO when you lodge, but others need to be claimed in the offsets section of your tax return.

Navigating financial advice in the social media age

Social media has transformed how we access information, including financial guidance. With the Australian Securities and Investments Commission (ASIC) recently taking regulatory action to warn “finfluencers” against acting illegally, it’s worth understanding how to evaluate the financial content you encounter online, so you can protect yourself against acting on unlicensed advice that could risk your money.

Research shows 63% of Gen Z Australians use social media for financial information, with over half expressing trust in content from financial influencers. In April, ASIC issued warning notices to four social media influencers suspected of providing unlicensed financial advice, including making claims about guaranteed returns.

Understanding the difference between general information and personal advice helps you evaluate online content appropriately. Licensed financial advisers can provide recommendations tailored to your specific circumstances, goals and risk tolerance. They’re required to act in your best interests and maintain professional standards.

Social media content creators can share factual information about financial products and general educational content. They can’t legally provide specific recommendations about what you should buy, sell or invest in unless they hold appropriate licences or operate under the supervision of a licensed entity.

Certain content characteristics should prompt you to stop and evaluate carefully, including:

• promises of guaranteed returns for your money, or risk-free investments;
• pressure to act quickly on investment opportunities;
• claims about easy money or get-rich-quick schemes;
• specific product recommendations given without understanding your circumstances; and
• content that downplays or ignores investment risks.

Legitimate investments carry risk, and higher potential returns typically involve higher risk levels. Anyone promising otherwise may be providing misleading information.

Social media algorithms prioritise content engagement over accuracy. Content designed to generate views, comments and active sharing may not represent balanced or comprehensive financial guidance. Sensational claims often perform better algorithmically than measured, educational content, so the financial content you see may be skewed toward attention-grabbing rather than genuinely helpful information.

Financial strategies can’t be one-size-fits-all. Your age, income, family situation, risk tolerance, existing assets and future goals all influence what approaches might work for your circumstances. What works brilliantly for one person could be entirely inappropriate for another.

Before acting on financial guidance from any source, verify the person’s qualifications and licensing status using ASIC’s professional registers. Licensed professionals are subject to ongoing education requirements, professional standards and regulatory oversight. They have professional indemnity insurance and must operate within established complaint resolution frameworks.

Why your super insurance might not cover what you expect

If you have a superannuation account, there’s a reasonable chance you also hold life insurance through it, possibly without realising. Almost 10 million super accounts have insurance attached to them, but many people can’t say what they’re covered for, how much it costs or whether it suits their needs. Before assuming your default cover has you sorted, it’s worth unpacking some common misconceptions.

“Everyone gets cover automatically”

Insurance through super doesn’t start automatically if you’re a new member aged under 25 or your balance is under $6,000, unless you contact your fund and ask for it, or you work in a dangerous job where your fund gives you automatic cover. If you’re younger or just starting out, you may have no safety net at all unless you opt in.

“Default cover will be enough”

Default cover is a starting point, not a tailored solution. Default cover may be lower than, or different from, cover available outside super; eligibility rules and exclusions can apply; and cover can stop if your account becomes inactive, your balance is too low, you change funds (unless arrangements are made to transfer or replace it) or you reach an age limit.

When reviewing your insurance, check whether there are exclusions or whether you’re paying a loading – this is a percentage increase on the standard premium, charged to higher-risk people who have high-risk jobs, pre-existing medical conditions, or classified as smokers. If your fund has classified you incorrectly, you may be paying more than necessary.

“My cover follows me when I switch funds”

Often, cover won’t follow you. If you switch superannuation funds, your insurance policy may not be portable, meaning the cover you had can lapse once you’re no longer a member. Some funds allow you to transfer your policy to personal ownership, but this may require health checks and the insurer could charge more to continue the cover. Consolidating accounts can also unintentionally cancel valuable cover, so always check before you act.

“If I stop contributing, nothing changes”

Cover can change if your account isn’t active. By law, super funds cancel insurance on accounts with no contributions for at least 16 months. Some funds have their own rules and cancel insurance if your balance is too low. Your fund will typically attempt to notify you before changes happen, so it’s important to keep your contact details updated.

“More accounts means more protection”

Holding multiple super accounts may simply mean multiple premiums quietly draining your retirement savings. If you have more than one super account, you may be paying premiums on more than one insurance policy, which reduces your retirement savings. Claim outcomes can vary between policies, and benefits aren’t always cumulative. Consider whether you need more than one policy, or whether you can get cover through one fund.

“It’s always the cheapest option”

Premiums may be lower because super funds buy cover in bulk, but that doesn’t always translate to the best value. Cover may not be enough, or may change over time, and it also may not be cheaper than insurance you can buy elsewhere.

Where to from here?

Superannuation and insurance can be complex. Before you assume your default cover’s doing the job, speak with your professional adviser to review your policy, premiums and any gaps, so you know exactly what you’re paying for and whether it still fits your circumstances.