As we approach the end of the year, November is an ideal time for business owners to review their financial obligations and ensure everything is in order before the Christmas break.
With changes to superannuation payments, upcoming Christmas celebrations, ATO debt management and important tax considerations, there are several areas worth giving attention to before the year comes to a close.
In this month’s update, we explore six important topics that may affect your business, employees or superannuation arrangements, along with some practical considerations to help you stay organised and prepared.
1. Payday Super: What employers need to know
One of the biggest changes affecting Australian employers this year is the introduction of Payday Super, which commenced on 1 July 2026.
Previously, employers generally paid Superannuation Guarantee contributions quarterly. Under the new arrangements, super contributions must now be made in connection with each payday.
In most cases, contributions must reach an employee’s superannuation fund within seven business days of payday.
This means businesses need to pay closer attention to their payroll processes, payment schedules and cash flow.
What should employers be checking?
- Payroll software has been updated to accommodate Payday Super.
- Superannuation is being calculated correctly for eligible employees.
- Employee super fund details are accurate and up to date.
- Contributions are processed promptly after each pay cycle.
- Rejected or returned payments are investigated immediately.
- Sufficient cash flow is available to meet super obligations.
The Superannuation Guarantee rate is currently 12%.
One important detail to remember is that money leaving your business bank account does not necessarily mean your super obligation has been met. The timing of when the contribution is received by the employee’s super fund is what matters.
Taking the time to review your payroll procedures now can help reduce the risk of missed contributions and unnecessary compliance issues. Further information about the Payday Super changes and employer obligations is available through the ATO.
2. Christmas parties and staff gifts: Understanding the FBT rules
With Christmas approaching, many businesses are beginning to organise staff celebrations, purchase gifts and plan end-of-year events.
While these activities are a great way to recognise employees and celebrate the year’s achievements, it is worth understanding how Fringe Benefits Tax (FBT), GST and income tax may apply before making arrangements.
The tax treatment of Christmas functions and gifts can vary depending on the type of benefit provided, who attends, where the event takes place and how much is spent.
Christmas parties
For example, a Christmas party held on a working day at the employer’s business premises for current employees may qualify for an FBT exemption.
For functions held away from the workplace, the minor benefits exemption may apply where the cost is less than $300 per person and the relevant conditions are satisfied.
There is also an important distinction when it comes to entertaining clients. Entertainment provided to clients generally does not attract FBT, although the associated expense is generally not income-tax deductible.
This leads to an important point that businesses sometimes overlook: being exempt from FBT does not automatically mean an expense is tax deductible.
What about staff gifts?
Gifts can be treated differently from entertainment expenses.
Non-entertainment gifts costing less than $300 may qualify for the minor benefits exemption, depending on the circumstances and relevant conditions.
Common examples include gift hampers, flowers, skincare products, books, electronics and other personal gifts.
However, entertainment gifts, such as concert tickets, sporting event tickets or other recreational activities, can have different tax consequences.
Before committing to an expensive Christmas function or purchasing gifts for employees, consider the potential tax implications. A little preparation can help avoid unexpected costs.
For further guidance, the ATO provides information about Fringe Benefits Tax, Christmas parties and staff gifts.
3. ATO debt: Why addressing it early matters
Managing cash flow is an important part of running a business, particularly towards the end of the year when expenses, wages and other financial commitments can start to add up.
If your business has an outstanding balance with the Australian Taxation Office (ATO), it is important not to let the situation go unattended.
Unpaid tax liabilities can continue to accumulate General Interest Charge (GIC), increasing the amount owed over time. The ATO may also take further recovery action where debts remain unpaid and taxpayers do not engage with them.
Depending on your circumstances, payment arrangements may be available to help manage outstanding tax liabilities.
Where should you start?
If your business is experiencing cash-flow difficulties, begin by reviewing the amount currently owing and ensuring all outstanding Business Activity Statements (BAS) and tax returns have been lodged.
It is also worth checking whether penalties or interest have been applied and preparing an updated cash-flow forecast to understand what your business can realistically afford.
If you are considering a payment arrangement, speak with your accountant first to ensure the proposed repayments are manageable.
For businesses that already have an arrangement in place, it is equally important to keep up with instalments. Missing payments can result in an arrangement being cancelled.
The key takeaway is simple: addressing ATO debt early can provide more opportunities to explore available options before the situation becomes more difficult to manage.
The ATO provides further information about managing outstanding tax debt and setting up payment plans.
4. SMSF trustees: A few things to review before Christmas
For those managing a Self-Managed Superannuation Fund (SMSF), the end of the year is a good opportunity to check that the fund’s records, investments and compliance obligations are up to date.
An SMSF provides trustees with greater control over their retirement savings, but that control also comes with important legal and administrative responsibilities.
Rather than leaving everything until the annual audit or tax return, November is a useful time to review a few key areas.
Contributions and pension payments
Start by checking that employer and personal contributions have been allocated correctly and that members are keeping track of their contribution caps.
If your SMSF pays an account-based pension, make sure the required minimum pension amount is on track to be paid before the end of the financial year.
Reviewing your investment strategy
Your SMSF’s investment strategy should continue to reflect the members’ circumstances, financial objectives, liquidity requirements, risk profile and investment mix.
The ATO expects trustees to regularly review their investment strategy, generally at least annually, and retain evidence of the review for the fund’s auditor.
Changes in personal circumstances or the fund’s financial position may also mean the existing strategy needs to be reconsidered.
You can find more information about SMSF investment strategies and trustee responsibilities.
Asset ownership and related-party transactions
Asset ownership and related-party transactions
It is also worth confirming that investments and other fund assets are correctly held in the name of the SMSF trustee or trustees on behalf of the fund.
Any transactions involving members, relatives or related businesses should receive particular attention, as these arrangements can have additional compliance requirements under superannuation legislation.
Keeping your records organised
Finally, make sure important documentation is readily available. This includes contracts, invoices, contribution records, bank statements, investment documents and trustee meeting minutes.
Keeping these records organised throughout the year can make the annual audit and reporting process much easier.
An SMSF requires ongoing attention, and reviewing these areas now can help trustees identify potential issues before they become more complicated.
If you are unsure about a proposed transaction or investment decision, seek professional advice before proceeding.
5. The $20,000 Instant Asset Write-Off: An opportunity for eligible small businesses
If your business has been considering purchasing new equipment, machinery or technology, the instant asset write-off may be worth looking into.
From 1 July 2026, the threshold has been increased to $20,000.
Eligible small businesses with an aggregated annual turnover of less than $10 million, using the simplified depreciation rules, may be able to immediately deduct the business-use portion of eligible depreciating assets costing less than $20,000.
One important detail is that the $20,000 threshold applies to each eligible asset individually, rather than being a total annual spending limit.
How does this work in practice?
For example, an eligible small business purchases:
- A computer for $4,500.
- Office equipment for $8,000.
- Machinery for $18,500.
Subject to the relevant eligibility and business-use requirements, each purchase may qualify for an immediate deduction because the individual cost of each asset is below the $20,000 threshold.
Generally, eligible assets must be first used or installed ready for use during the relevant income year.
Assets costing $20,000 or more do not qualify for an immediate deduction under this measure and will generally be dealt with under the small business depreciation pool rules.
Should your business be planning a purchase?
While an immediate tax deduction can be beneficial, tax should not be the only reason for purchasing new equipment.
If your business was already planning a genuine purchase, it is worth considering whether the asset qualifies and what the potential tax implications may be.
Remember to retain complete invoices, payment evidence and supporting records.
Understanding the rules before making a purchase can help you make a more informed financial decision. Further information about the instant asset write-off and eligibility requirements for small businesses is available from the ATO.
6. GST claims: Are your business records up to date?
Good record keeping is essential when claiming GST credits, particularly when dealing with larger purchases or expenses that involve both business and private use.
While accounting software makes it easier to record transactions, businesses still need to ensure they have the appropriate documentation to support the GST credits they claim.
Some areas that deserve particular attention include motor vehicles, property expenses, equipment purchases, renovations, construction costs and home-based business expenses.
Unusually large GST refunds may also require additional supporting information.
What records should you keep?
Depending on the transaction, supporting documentation may include valid tax invoices, contracts, bank statements, receipts, calculation workpapers, vehicle logbooks and business-use calculations.
If an expense has both private and business components, it is important to retain records showing how the business-use percentage was calculated.
Simply having an expense recorded in your accounting software does not necessarily establish your entitlement to claim a GST credit.
What if the ATO requests further information?
If your business is selected for an ATO review or audit, your records should be accurate and consistent across your BAS lodgements, accounting records, income tax returns, bank transactions and supporting invoices.
Having this information organised and readily accessible can make responding to an ATO request considerably easier and may reduce the time and cost involved in the process.
Good record keeping is not just about meeting compliance requirements. It also gives business owners a clearer picture of their financial position and helps support more informed business decisions.
For additional guidance, the ATO explains GST record-keeping requirements and the documents businesses should retain.
Your November business checklist
With the Christmas break approaching, now is a good time to bring everything together and make sure there are no outstanding matters that need attention.
Before wrapping up for the year, consider whether you have:
- Reviewed Payday Super payments and payroll settings.
- Checked outstanding ATO debts and payment arrangements.
- Considered the FBT implications of Christmas parties and staff gifts.
- Checked SMSF contributions and pension payments.
- Reviewed your SMSF investment strategy.
- Considered any planned business asset purchases.
- Reconciled BAS and GST accounts.
- Followed up on missing invoices and supporting documents.
- Ensured outstanding tax and BAS lodgements are up to date.
- Discussed any significant upcoming transactions with your accountant.
Taking a little time to review these areas now can help reduce last-minute pressure and put your business in a better position heading into the new year.
Need assistance?
Keeping up with changing tax, superannuation and business requirements can be challenging, particularly when you are also managing the day-to-day demands of running a business.
Whether you need assistance with tax planning, BAS and GST, payroll and superannuation, SMSF compliance, ATO payment arrangements or responding to an ATO review, the team at Holzworth Partners can help you understand your obligations and identify the appropriate next steps.
If you have questions about any of the topics covered in this month’s update, we encourage you to contact our office to discuss your circumstances.
The information provided in this newsletter is intended for general information and educational purposes only. It does not constitute financial, taxation, accounting or legal advice and should not be relied upon as a substitute for professional advice.
While every effort has been made to ensure the information is accurate at the time of publication, taxation and superannuation laws, regulations and administrative guidance may change. The information may not reflect the latest legislative or regulatory developments.
Individual circumstances vary, and the application of tax and superannuation rules will depend on your particular situation. Readers should seek independent professional advice before making financial, taxation, business or superannuation decisions.
Holzworth Partners accepts no responsibility for any loss or damage arising from reliance on the information contained in this publication without obtaining appropriate professional advice.
