Ward & Ilsley Partners

01/06/2026

⏳The countdown is on: only 4 weeks until Payday Super starts
The ATO is urging employers to act now and prepare for Payday Super.

• Payday Super becomes mandatory from 1 July 2026.
Employers will need to pay super every payday, not quarterly.

• More than half of employers are still paying quarterly, so the ATO is urging businesses to prepare now.

• The amount of super doesn’t change — only the frequency of payments.

• The change aims to reduce the $6 billion in unpaid super owed to workers and improve timely reporting.

ATO’s approach in the first year

• The ATO will take a “reasonable and practical” compliance approach.

• Businesses making genuine efforts to transition and fix errors quickly won’t be targeted for compliance action.

• Enforcement will focus on employers deliberately avoiding obligations.

What employers should do now

• Ensure payroll systems and software are updated for 1 July.

• Make sure the whole team understands the new requirements.

• Review ATO guidance on:

•Single Touch Payroll

• Closure of the Small Business Superannuation Clearing House

• Reporting timing considerations

The ATO is urging employers to act now and prepare for Payday Super.

31/05/2026

June 1st marks the start of winter — and the start of the most important financial month of the year.

As the temperature drops, EOFY prep heats up. Now is the ideal time to:

• Review your accounts
• Reconcile outstanding items
• Plan your tax strategy
• Set fresh financial goals

Wishing you a productive start to winter and a successful run into EOFY.

27/05/2026

📌 Keeping your NFP compliant starts with knowing if you’re taxable

Not all NFPs are automatically exempt from income tax. Some organisations — such as social clubs, professional associations, and groups that primarily serve member interests — may be classified as taxable and required to lodge an income tax return or submit a non‑lodgment advice.

Taxable NFPs need to understand:

🔑Whether they must lodge a return or notify the ATO that one isn’t required
🔑Special tax rates that apply to NFP companies, depending on whether they are base rate entities
🔑How the mutuality principle affects assessable income and deductions
🔑Key lodgment due dates, including those with substituted accounting periods (SAPs)

Staying informed helps NFPs meet their obligations, avoid compliance issues, and focus on delivering value to their communities.

26/05/2026

🔑IMPORTANT KEY DATE 30/5/2026 to register for the SG Opt out for high income earners for the 2026/2027 Financial year 🚨

⭐ What is this option
The SG opt out allows high income earners with more than one employer to avoid exceeding their concessional contributions cap by applying for an SG employer shortfall exemption certificate. This certificate releases one or more employers from having to pay SG for a defined period (up to one financial year)
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🎯 Why this exists
If you have multiple employers, their combined compulsory SG contributions can unintentionally push you over the concessional contributions cap, resulting in excess contributions tax. The opt out mechanism helps you manage this risk by reducing SG from selected employers.
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🔍 Purpose of the SG Opt Out
High income earners with multiple employers can apply for an SG employer shortfall exemption certificate to avoid exceeding their concessional contributions cap for a financial year.
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📅 Key Dates
• Legislation starts: 1 July 2026.
• To start on 1 July 2026: ATO must receive your application by 30 May 2026.
• Applications open now for the 2026–27 financial year.
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✅ Eligibility Requirements
You must meet both conditions:
• You have more than one employer in the financial year.
• You expect compulsory SG contributions to exceed your concessional contributions cap.
Additional rules:
• At least one employer must continue paying SG.
• Employers may choose to ignore the exemption and continue paying SG.
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📝 How to Apply
• Use the approved ATO form.
• ATO must receive the application 30 days before the start of the exemption period.
• Your application must:
o Be lodged by you, your tax agent, or your nominated representative.
o Specify the employer(s) to be exempted and the start date.
o Nominate at least one other employer who will continue paying SG.
o Be posted to the ATO.
• Certificates apply for up to one financial year and require separate applications each year.
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🔄 Other Application Rules
• You can apply for more than one certificate if one employer continues paying SG.
• Certificates can be backdated from the 2026 financial year.
• You cannot nominate the same employer as both exempt and paying SG.
• You can exempt your own business if another employer pays SG.
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🧮 What the ATO Considers
The ATO will issue a certificate only if:
• You are likely to exceed your concessional contributions cap.
• At least one employer will still pay SG.
• Issuing the certificate is appropriate in the circumstances.
They also consider:
• Any other certificates already issued.
• The impact on your concessional contributions.
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📬 Outcome
• If approved:
o ATO sends a written notice to each exempted employer.
o You receive a copy.
• If declined:
o ATO notifies you.
Reasons for refusal include:
• Late application
• Incomplete form
• Not likely to exceed the cap
• No employer nominated to continue SG
• Requesting a period beyond one financial year
• Applying for a future year too early (e.g., applying for 2028 in 2026)

Certificates cannot be varied or revoked and end at the close of the financial year. You must reapply annually.

If dissatisfied, you may dispute or object.

Form for Super guarantee opt out for high-income earners with multiple employers (NAT 75067).

25/05/2026

New guidance for rental property owners
The Australian Taxation Office view on how holiday homes are used and the effect this may have when claiming deductions.

01 Know when income is assessable
Income from renting out a property including short‑term stays and room rentals is assessable when the property is genuinely available for rent.

02 Understand what expenses are deductible
Deductions can only be claimed for periods the property is used to earn income, not for private holidays or personal use.

03 Apportion mixed‑use expenses correctly
If the property is used privately for part of the year, expenses must be apportioned so only the income‑producing portion is claimed.

04 Avoid claiming denied deductions
If the property isn’t mainly used to earn assessable income, ownership and holding costs like interest, rates and body corporate fees cannot be claimed.

05 Check the new ATO rulings
The ATO has released TR 2026/1 and two new PCGs with practical examples to help owners and advisers get it right.

The update applies to the short-term rental market (e.g. using an online booking or sharing platform) as well as long-term rentals. The short-term market includes renting out a room in a main residence and renting out entire houses and holiday homes.

A holiday home refers to property that is used (or held for use) by your clients for holidays or recreation (or the recreation of their family members and friends)

21/05/2026

🧮Tax cut calculator

Estimate your tax cut
This tool estimates the value of tax cuts for Australian resident employees for the 2027–28 income year, compared to the 2023–24 tax settings.

For simplicity, the Working Australians Tax Offset is estimated using salary and wage income only

1. Australian taxpayers with other forms of income from work (for example, sole traders) may also be eligible for the Working Australians Tax Offset.

All Australian taxpayers will benefit from the first three rounds of tax cuts.

Australian Federal Budget, 2026-27

20/05/2026

📣 Budget 2026–27: Key proposed change to Private Health for Over‑60s

From deep down in the Federal budget papers, the Federal Budget includes one major reform that will affect older Australians with private health insurance:

🔍 Removal of Age‑Based Rebate (from 1 April 2027)
The government will phase out the higher rebate currently given to people aged 65+. This means all ages will receive the same rebate, regardless of life stage.

💰 What it means for over‑60s
Higher out‑of‑pocket premiums as the additional rebate is removed

Estimated 9% average increase in effective premium costs
Some seniors may see up to 12% increases depending on their cover
Older couples could pay $1,000–$1,600 more per year

🎯 Why the change?
The government says the reform is about “intergenerational fairness”, ensuring rebates are consistent across age groups.

🏥 Other health measures for seniors
While not directly linked to private health, the Budget also includes:

Cheaper PBS medicines
Expanded vaccination programs
Increased hospital and aged‑care funding

19/05/2026

Key tax changes and measures from the 2026 Federal Budget

The major announcements from this year's Federal Budget and what they mean for accountants and their clients.

🔑Measures to boost small business
🔑A ‘fundamental rewrite’ of the capital gains rules
🔑Trust distribution tax
🔑Reforms to the R&D tax incentive and venture capital tax incentives
🔑Working Australians tax offset

The government has handed down one of the most significant budgets for tax in recent years, with the budget containing fundamental changes to the taxation of capital gains and trusts, incentives for small businesses and an overhaul of the R&D tax incentive.

18/05/2026

A breakdown of 2026-27 Federal Budget Themes and Papers.

The 2026-27 Federal Budget seeks to help get us through global and local pressures.
Global conflict has severely disrupted global oil supplies and is contributing to higher inflation, slower growth, and extreme economic uncertainty at home and abroad. At the same time, there are big structural changes unfolding in areas like energy and technology, and longstanding challenges when it comes to productivity, intergenerational equity and access to home ownership that demand our attention.

Global conflict has severely disrupted global oil supplies and is contributing to higher inflation, slower growth, and extreme economic uncertainty at home and abroad. At the same time, there are big structural changes unfolding in areas like energy and technology, and longstanding challenges when i...

13/05/2026

Here are the key tax reform changes handed down by Federal Treasurer Jim Chalmers from the Budget 2026–27.

Noting the Opposition will hand down it’s Budget reply on Thursday.
The Government will need the support of the Opposition or Minor parties and independents to pass these changes.

We will provide a more detailed synopsis over the coming days.
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🚧Major Changes for Workers and Individuals

1. $250 Working Australians Tax Offset (from 2027–28)
• New ongoing annual tax cut for over 13 million workers
• Sits on top of the three legislated tax cuts and the $1,000 instant deduction
• Combined, an average earning worker could gain up to $2,816 per year

2. Capital Gains Tax Reform (from 1 July 2027)
• Replaces the 50% CGT discount with a discount based on inflation and introduces a minimum 30% tax on gains
• The effective tax rate paid by investors on capital gains would vary based on the nominal return, the inflation rate over the period that the assets have been held and the investors marginal tax rate
• Applies only to gains arising after 1 July 2027
• Investors in new builds can choose between the old 50% discount or the new rules

3. Negative Gearing Tightened (from 1 July 2027)
• Limited to new builds to focus tax support on new housing supply
• Grandfathering applies: all properties held before Budget night keep current rules
• Investors buying established homes after Budget night:
o Can deduct losses only against residential property income
o Can carry forward unused losses, but not offset them against wages

4. Discretionary Trusts Minimum Tax (from 1 July 2028)
• A minimum 30% tax on discretionary trusts, with some exceptions
• Three year rollover relief from 1 July 2027 for small businesses restructuring
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🚧Key Changes for Businesses

5. Loss Carry Back Reintroduced (from 2026–27)
• Companies can use current year losses to obtain a refund of tax paid in the prior two years
• Expected to benefit up to 85,000 companies, mostly small businesses

6. Loss Refundability for Start ups (from 2028–29)
• Start ups in their first two years can receive cash refunds for tax losses, up to the value of FBT and PAYG withholding paid
• Supports around 25,000 young companies annually

7. $20,000 Instant Asset Write Off Made Permanent (from 1 July 2026)
• Applies to small businesses with turnover under $10 million
• Expected to improve cash flow by $890 million over five years

8. Venture Capital Incentives Expanded (from 1 July 2027)
• Updates to ESVCLP and VCLP programs to align with modern valuations and support high growth firms

9. Major Overhaul of the R&D Tax Incentive (from 1 July 2028)
Key changes include:
• 25–50% increase in offsets for experimental core R&D
• Intensity threshold reduced to 1.5% for higher offsets
• Refundable offset turnover threshold raised to $50 million, limited to firms

Australian Federal Budget, 2026-27