Author: support

The Australian government has now passed the Payday Super legislation, introducing significant changes to how employers must process superannuation payments. The new rules take effect from 1 July 2026 and are designed to ensure superannuation is paid to employees at the same time as their wages.

Key Details:

• Superannuation Guarantee (SG) must be paid on payday — employers will no longer be able to pay quarterly.
• Late payments will trigger the Superannuation Guarantee Charge (SGC), which includes the SG shortfall, interest and administration fees.
• Improved super fund error messaging will help identify rejected payments and fix issues sooner.
• The ATO will retire the Small Business Superannuation Clearing House from 1 July 2026, meaning employers will need alternative clearing arrangements.

What this means for Employers:

• Superannuation obligations will align with payroll cycles (weekly, fortnightly, monthly).
• Employers will need payroll software or processes that support more frequent super payments.
• Smaller, more regular contributions may improve cash flow management compared to quarterly lump sums.
• Earlier super payments are expected to improve retirement outcomes for employees.

Preparing for the Changes:

• Confirm your payroll software (e.g., Xero, MYOB or other providers) can process super on payday.
• Review cash flow and plan for more frequent payment cycles.
• Ensure payroll staff understand the new timing requirements.
• Consider moving to more frequent super payments ahead of 1 July 2026  to ease the transition.

Timeframe:

Payday Super becomes mandatory from 1 July 2026. However, we recommend commencing super payments at the time of payroll as soon as possible, so your business can adjust to the new requirements early. This will help you become familiar with the new processes and allow your cashflow to adapt before the rules become compulsory.

In addition, the ATO will retire the Small Business Superannuation Clearing House from 1 July 2026. If you are currently using the SBSCH to pay super, you will need to transition to another method — either through your existing payroll software or an alternative provider. This may require an upgrade or additional subscription depending on the system you use.

Victorian Primary Producers may now be eligible for government grants to support drought resilience and infrastructure improvements.  

Key Details:

• Grant amounts: Up to $5,000 (all LGA’s) or $10,000 (eligible South-West LGA’s) on a dollar-for-dollar basis (farm must match funding).
• Eligible Activities: Improvements to water systems/irrigation, feed storage systems, fencing and shelter belts.
• Eligibility:
  • Must be a Primary Producer in Australia
  • For the $10,000 grant, farms must be located in one of the following LGA’s: Ararat, Colac, Otway, Corangamite, Glenelg, Golden Plains, Greater Geelong, Moyne, Pyrenees, Southern Grampians, Surf Coast, Warrnambool, West Wimmera (selected postcodes only).
  • Derive at least 50% of income from farming.
  • Hold an ABN, be GST registered, and demonstrate hardship due to dry conditions.
  • Provide supporting documents (quotes, tax returns, proof of activity)

Application Process:

• Apply through Rural Finance Australia and obtain in-principle approval before starting works.
• Approved activities must be completed within 3 months.
• Grants are paid as reimbursements (submit invoices, receipts and proof of payment).
• Rural Finance will reimburse 50% of eligible costs up to the approved grant amount.

Timeframe:

Applications are open until 30 June 2026 or until funds are exhausted.

End-of-Year Finalisation Through STP

If you report through Single Touch Payroll (STP) and have not yet completed your 2025 end-of-year finalisation, please note that the due date is Monday, 14 July 2025.

To remain compliant with the ATO, a finalisation declaration must be lodged for each employee, confirming that your payroll information is complete for the financial year.

What you need to do

✔ Log in to your STP-enabled payroll software (e.g. Xero, MYOB)
✔ Submit the finalisation declaration for all employees
✔ Once finalised, employees will be able to access their income statements via their myGov account

Making a finalisation declaration

You need to make a finalisation declaration by 14 July each year to ensure your employees can access their finalised information to complete their tax returns.

If you can’t make a finalisation declaration on or before the due date, you will need to apply to the ATO for a deferral.

Helpful Resources for STP Finalisation

• ATO: End-of-Year Finalisation Through STP
  https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/start-reporting/end-of-year-finalisation-through-stp#ato-Makingafinalisationdeclaration
• MYOB Users – Finalise STP in MYOB:
  https://www.myob.com/au/support/myob-business/payroll/single-touch-payroll-reporting/end-of-year-finalisation-with-single-touch-payroll-reporting
• Xero Users – Finalise STP in Xero:
  https://central.xero.com/s/article/Finalise-Single-Touch-Payroll-data

Need help?

If you haven’t yet completed your STP finalisation or are unsure about the process, please contact our office on +61 3 9629 3023 as soon as possible, so we can assist before the deadline.

Superannuation (Super) Guarantee Rate

The Super Guarantee Rate, which mandates the minimum percentage of an employee’s earnings that employers must contribute to their super fund, is set to change periodically.

On 1 July 2025, the superannuation guarantee contribution rate will increase from 11.50% to 12.00%. This is the minimum super amount you must pay all eligible employees from 1 July 2025.

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Income Tax Rates

The Australian government has confirmed that individual income tax rates and thresholds introduced on 1 July 2024 will remain unchanged for the 2025-26 financial year. These rates will continue to apply to all taxable income you earn from 1 July 2025.

As a reminder, from 1 July 2024, these changes took affect:

• Reduced the 19 per cent tax rate to 16 per cent
• Reduced the 32.5 per cent tax rate to 30 per cent
• Increased the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
• Increased the threshold above which the 45 per cent tax rate applied from $180,000 to $190,000

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Resident Tax Rates 2025-26

Taxable Income Tax Payable

$0 – $18,200 Nil

$18,201 – $45,000 16c for each $1 over $18,200

$45,001 – $135,000 $4,288 plus 30c for each $1 over $45,000

$135,001 – $190,000 $31,288 plus 37c for each $1 over $135,000

$190,001 and over $51,638 plus 45c for each $1 over $190,000

The above rates do not include the Medicare Levy of 2%

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Keep Your Accounting Software Up To Date

Keeping accounting software updated is crucial for incorporating changes like new tax rates and super guarantee rates effective from July 1, 2025.

Automatic updates usually handle these adjustments effectively, but it’s prudent to double-check:

• Software Updates: Make sure your accounting software is consistently updated to the latest version. Pay particular attention to updates specifically related to tax and super rate changes.
• Employee Settings: Verify that employee settings in your software are properly configured. This ensures that super guarantee rate calculations are in line with the latest requirements.
• Compliance: Ensuring compliance with super guarantee rate increases is crucial. Confirm that your software accurately incorporates these changes in pay runs to avoid any compliance issues.

By following these steps, you can help ensure smooth payroll operations and compliance with the latest regulatory requirements.

If you would like to discuss how this change affects your business, please contact your Stable Financial accountant, or call us on +61 3 9629 3023.

Dear Valued Clients and Subscribers,

If your business has an ATO payment plan or outstanding debt, a recent legislative change will soon impact how you manage it.

From 1 July 2025, businesses will no longer be able to claim a tax deduction for General Interest Charges (GIC) or Shortfall Interest Charges (SIC) on ATO debts.

This change will directly affect cash flow and overall tax strategy – especially for those using ATO payment plans as a form of short-term finance.

What this means for You

• The cost of tax debt is going up – GIC and SIC will no longer reduce your taxable income
• Payment plans may become less attractive as the interest burden increases
• Cash flow planning becomes more critical with interest no longer deductible
• Businesses relying on ATO plans should reassess their strategy urgently

In recent months, the ATO has been applying pressure for faster repayments – often under strict conditions that can stretch business cash reserves. This legislative change will only increase the financial impact of carrying tax debt.

What You Should Do Now

With around four weeks remaining before the changes take effect, we strongly recommend:

• Paying off any existing ATO debts where possible
• Reassessing ATO payment plans that extend beyond 1 July 2025
• Exploring other funding options where interest remains tax deductible
• Speaking with your accountant about your position and the best way forward

Learn more directly from the ATO:

Denying deductions for ATO interest charges https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/deny-deductions-for-ato-interest-charges

If you would like to discuss how this change affects your business or review your ATO debt strategy, please contact your Stable Financial accountant, or call us on +61 3 9629 3023.

Warmest regards,

Adam and the Stable Team.

Greetings from Stable Financial!

We hope this message finds you well.

Whether you’re a long-time client or are considering joining our client family, you likely recognize that when it comes to thoroughbred accounting and business services, having a team that truly understands the racing industry is essential.

The Stable Team consists of horse enthusiasts who love the industry, setting us apart from many other traditional accounting firms who don’t understand the intricacies of the thoroughbred world.

One of the most rewarding aspects of our work is becoming an extension of your team, helping you achieve success both on and off the track.

Led by our Director, Adam Tims, we’d love to introduce you to some of the core members of The Stable. Take a moment to watch our quick video below!

Temporary full expensing rules are ending on 30 June 2023 – time for your horse business to get the whip out!

As the end of financial year approaches, the temporary full expensing rules will be coming to an end. What must horse businesses do to avoid missing out on accelerated tax deductions for this year?

The temporary full expensing (“TFE“) rules provide for a full deduction to businesses for the cost of eligible depreciating assets in the year they are first used, or installed ready for use, for a taxable purpose prior to 30 June 2023. Horse businesses should bear this strict timeline in mind to avoid missing out on accelerated tax deductions. Merely contracting for the purchase of an asset, or even becoming the owner of the asset by 30 June 2023 is not sufficient.

From 1 July 2023, the accelerated deductions will conclude, and depreciating assets will be required to be written-off for tax purposes over their effective lives.

First used or installed ready for use by 30 June 2023
Horse businesses should ensure that any capital investments are made with sufficient time to allow for delivery and use or installation of the relevant assets by 30 June 2023 to qualify for TFE. The 30 June 2023 date is a hard deadline regardless of whether the business entity has a 30 June year-end or a substituted accounting period. There is no discretion in the law to extend the date by which assets must meet this first taxable use requirement. As such, unexpected delays in the delivery, construction or installation of assets could result in horse businesses missing out.

Second element costs
“Second element costs” being those that contribute to bringing the asset to its present condition or location from time to time (e.g. improvement costs) may also qualify for TFE in the 2023 income year if they are paid or incurred prior to 30 June 2023. However, simply prepaying amounts or incurring amounts for improvements to existing assets that are to be made after 30 June 2023 are not likely to result in those costs qualifying for TFE. Horse businesses should also keep the 30 June 2023 deadline in mind if they are considering making improvements to or relocating existing depreciating assets to ensure that these things can be done in time.

Rules from 1 July 2023
From 1 July 2023, depreciating assets are required to be written-off for tax purposes over their effective lives.

There was some relief for small business as announced in the recent May Federal Budget.​​​​​​​

Small businesses, with aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024.

Next steps

It is critical that if you wish to claim temporary full expensing for capital purchases for the 2022-23 income year that you ensure you meet the necessary conditions by 30 June 2023 and plan accordingly to ensure that the delivery and installation of assets can occur prior to the deadline. If you have any questions please reach out to your Stable Financial contact.

Victorian State Budget 2023-24: Key Items for clients to consider

Treasurer Tim Pallas handed down the Victorian State Budget 2023-24 on the afternoon of 23 May 2023.

It contains several proposed changes to Victoria’s tax regime, the most significant of which for business relate to payroll tax, land tax, work cover scheme and stamp duty reform for commercial and industrial properties.

This Budget sees Victorian businesses shouldering the burden of debt recovery, with the introduction of a 10-year Debt Levy targeting any business with an annual Australian payroll above $10m. Business will also fund the paying down of state debt through higher payroll tax bills for around 4,000 SMEs and large businesses alongside higher land tax bills for around 380,000 landowners.

Payroll tax

The following payroll tax changes have been announced:

• As part of its COVID Debt Repayment Plan, from 1 July 2023, a levy on payroll will apply to businesses with annual Australia-wide taxable wages above $10m
• From 1 July 2024, the payroll tax-free threshold will increase from $700 000 to $900 000, and subsequently increase to $1m from 1 July 2025
• From 1 July 2024, the payroll tax exemption for high-fee non-government schools will be removed

The Debt Levy, operating through the payroll tax regime, is scheduled to begin on 1 July 2023 and businesses with national payrolls above $10m a year will be subject to an additional 0.5% levy on top of the existing payroll tax rate, with a further 0.5% for businesses with a payroll over $100m.

However, there is some tax relief for micro businesses with wages below $1m, who will not be subject to payroll tax due to an increase in the tax-free threshold. This change is estimated to remove payroll tax from 4,200 businesses and reduce taxes for a further 22,000.

Increase in the Payroll Tax Threshold

To ease the payroll tax on smaller businesses, the tax-free threshold will increase from $700,000 to $900,000 from 1 July 2024. The threshold will be increased further to $1m from 1 July 2025.

This is a welcome change for eligible businesses but it will only benefit businesses with relatively small payrolls. The Victorian Government estimates that around 6,000 businesses, who otherwise would have paid payroll tax, will no longer be subject to the tax when the threshold reaches $1m. Furthermore, it is expected that more than 26,000 small businesses will benefit from the increase of the tax-free threshold to $1m.

This change will provide a payroll tax saving of up to $9,700 for the financial year ending 30 June 2025 and a saving of up to $14,550 for eligible businesses for the financial year ending 30 June 2026 and onwards. These estimates are calculated on the expected savings for those businesses that are not based in regional Victoria.

Phase out of Tax-free Threshold

The Government will also ‘phase out’ the tax-free threshold for businesses with taxable Australia-wide wages over $3m. The threshold will be reduced proportionally such that businesses with taxable wages over $5m will no longer be entitled to any tax-free threshold.

This measure will result in an additional payroll tax liability for affected businesses. For a business with taxable wages above $5m, the introduction of the phase out threshold will result in an additional payroll tax liability of $43,650 for the year ending 30 June 2025 (and $48,500 for the year ending 30 June 2026). These estimates are calculated on the assumption that the businesses are not based in regional Victoria.

Land tax

Property investors with landholdings valued above $300,000, as well as trust taxpayers with property holdings above $250,000, will be hit with a temporary land tax rate increase of $975 plus 0.1% of the value of their landholdings above $300,000 (in the case of non-trust taxpayers) or $250,000 (in the case of trust taxpayers).

The relevant land tax measures announced today are as follows:

1. The tax-free threshold for general land tax rates will be cut from $300,000 to $50,000 (therefore subjecting more properties and property owners to land tax)
2. A temporary fixed charge of $500 will be levied on general taxpayers with total landholdings between $50,000 and $100,000*
3. A temporary fixed charge of $975 will be levied on general taxpayers with total landholdings between $100,000 and $300,000*
4. For general (non-trust) taxpayers with total landholdings above $300,000 and trust taxpayers with total landholdings above $250,000, land tax rates will increase by $975 plus 0.1% of the taxable value of their landholdings

The above changes will commence from 1 January 2024 (i.e., the 2024 land tax year) and will apply until 30 June 2033.

Existing land tax exemptions, including for principal places of residence, primary production land and land used by charities, should continue to apply provided the property and the owner continue to satisfy the relevant eligibility requirements.

The above information will be subject to the detail set out in the relevant amending legislation (which has not yet been made public at the time of writing) and is subject to change once the final details are available.

Increase of Absentee Owner Surcharge Rates

From 1 January 2024, the Victorian Absentee Owner Surcharge (“AOS”) (i.e., foreign land tax surcharge) rate will increase from 2% to 4%. Whilst this change has been presented as a measure to harmonise the rate with New South Wales, it is worth noting that New South Wales currently has the highest foreign land tax surcharge rate.

Work Cover scheme

Last week, the Victorian Government announced that it would be modernising the WorkCover Scheme. In doing so, they have advised that the average premium rate would increase from 1.27% to 1.8% of remuneration in order to cover the cost of claims. This compares with average premiums of 1.23% in Queensland and 1.48% in New South Wales.

The increase in average premiums represents a cost increase of 42%. This coupled with other increases in costs announced in the 2023-24 Victorian State Budget puts considerable pressure on businesses operating in Victoria.

The other key reforms relevant to modernising the WorkCover Scheme include:

• Establishing Return to Work Victoria to provide more support for workers to return to employment; and
• Adjusting the eligibility for mental injury claims and introducing a whole person impairment threshold of 20% for claims that receive weekly benefits for more than two and half years

Stamp duty reform for commercial and industrial properties

The 2023-24 State Budget saw the Treasurer announce a significant reform to Victoria’s duty regime, with duty on commercial and industrial properties to be replaced over time with an annual property tax.

The finer details of the new regime are unlikely to be known for some months as we understand the Government intends to consult with industry before introducing the relevant legislation into Parliament. However, based on the Government’s media release we understand the change will involve:

• From 1 July 2024, commercial and industrial properties will transition to the new system as they are sold, with annual property tax equal to 1% of the land’s unimproved value to be payable from 10 years after the sale transaction;
• The first purchaser of eligible property after 1 July 2024 will be able to choose whether to pay the final duty liability as an upfront lump sum, or as fixed instalments over 10 years together with an interest charge; and
• Once the property enters the new system after 10 years, no further duty will be payable when the property is sold and the annual property tax will then apply moving forward

The new regime will not apply to the current owner of any commercial or industrial property purchased before 1 July 2024.

Tax planning opportunities may present for clients after the finer details of the new regime are understood.

Victorian Flood Relief

The unprecedented flooding crisis experienced last Friday by individuals and businesses throughout Victoria is devastating.  The challenges are ongoing for many but the strength of support, particularly in the thoroughbred breeding and racing community, is Group 1.

Stable Financial would like to help in a small way by providing information that may assist those affected from a financial standpoint.  Both the Australian and Victorian Government have announced funding packages to assist those impacted by the Victorian floods in October 2022.

For Individuals

1. Disaster Recovery Payment

– serious injuries/deaths/missing family members/extensive damage to personal home
(More info and guidelines can be found here: https://www.servicesaustralia.gov.au/victorian-floods-october-2022-australian-government-disaster-recovery-payment)

1. Disaster Recovery Allowance
   – loss of personal income as a direct result of floods and earn less than the average Australian wage of $1,737.10 per week
   (More info and guidelines can be found here: https://www.servicesaustralia.gov.au/victorian-floods-october-2022-disaster-recovery-allowance)

For Businesses (excluding Primary Producers)

1. Small Business Immediate Flood Relief Program
   – $5,000 one off payment for significant damage
   (More info and guidelines can be found here: https://business.vic.gov.au/__data/assets/pdf_file/0016/2112424/Small-Business-Immediate-Flood-Relief-Program-Guidelines.pdf)

For Primary Producers

1. Primary Producer Flood Clean Up and Relief Grant
   – $10,000 one off payment for direct impact of floods
   – covers activities such as the removal/disposal of debris and injured/deceased livestock, replacing or repairing essential equipment, fixing and replacing fencing, buying fodder, water and water storage, salvaging damaged crops, grain or feed, and hiring or purchasing materials to clean up a property or equipment
   – additional supporting documentation is required to be submitted with the application, which is submitted through Rural Finance
   (More info and guidelines can be found here: https://www.ruralfinance.com.au/industry-programs/victorian-primary-producer-flood-relief-program#flood)
2. Primary Producer Transport Support Program
   – claim up to 50% of transport costs up to a total of $15,000 for the transport of emergency fodder or stock drinking water, and moving stock to agistment/sale/slaughter due to flooding
   – to claim this support, you can use the same application form as the Flood Clean Up and Relief Grant
   (More info and guidelines can be found here: https://www.ruralfinance.com.au/industry-programs/victorian-primary-producer-flood-relief-program#flood) 
3. Primary Producer Concessional Loans
   – eligible to apply for concessional loans of up to $250,000 to restore or replace damaged assets
   (More info can be found here: https://www.ruralfinance.com.au/industry-programs/victorian-primary-producer-flood-recovery-concessional-loans)

If you have any questions or require assistance with the Government funding application process, please feel free to reach out to the team at Stable Financial.

Are you a Company Director?

Director I.D. is here for your action.

Earlier this year ASIC introduced the requirement for all company directors to hold a director identification number (director ID).  This means directors are now obliged to verify their identity as part of the new requirements.

Under the legislation, each person who holds the position of director for an Australian or registered foreign corporation, will be required to confirm their identity by obtaining a personal director ID, which they will use for all director appointments.  These requirements therefore extend to any director of a trustee company as well as directors of corporate entities.

When to apply for a director ID

The director ID application is now available, with transitional arrangements for existing and new directors.  When you need to apply for a director ID will depend on when you became a director, as set out below.

How to apply for a director ID

To apply for your director ID you will need to set up a myGovID account which you will use to verify your identity at https://www.mygovid.gov.au/set-up

Once you have verified your identity, you need to apply for a director ID via the Australian Business Registry Services website from November 2021.

This process must be done by the director.

Once you have obtained a director ID, you will be required to register this against any existing director appointments.  It will be retained permanently by you, similar to the way a tax file number is applied to each individual.

The benefits of the director ID

The Act is designed to increase director accountability and traceability, substantially limiting the potential for fraudulent activity and ‘phoenixing’ (where directors of a company wind up a company to avoid paying its liabilities and incorporate a new company to carry on substantially the same business).  It will also prevent the use of fictitious identities.

A further benefit will be that sensitive personal director information held on publicly accessible corporate registers will no longer be available.  By removing this information, directors’ private information will be better protected from identity theft and privacy breaches.

While the transitional provisions will be in place for the first twelve months of operation, criminal and civil penalties will apply for directors who do not apply for a director ID within the allowed time.  Until the appointment of the Registrar to the Commonwealth Business Registry, ASIC will remain the corporate regulator.

A member of the Stable Financial team will soon be in touch with all companies registered with Stable Financial to discuss the director ID registration process.  If you have any questions regarding your directorship or the director ID, please contact your Stable Financial team member.