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Managing Director / Co-Founder / Financial Adviser
If you haven’t looked closely at your super since the new financial year started, now’s a good time. A handful of significant changes landed on 1 July 2026, from how often your employer pays your super, through to how much you can contribute and a new tax that applies once a balance crosses $3 million. None of these changes need to be complicated, but a few are easy to miss if nobody points them out. Here’s what’s actually different this year and what’s worth checking in your own fund.
For most of super’s history, employers only had to pay your Super Guarantee (SG) contributions quarterly. As of 1 July 2026, that’s changed. Employers now need to pay your super at the same time as your wages, generally within seven business days of each payday. This is what’s being called “payday super”, and it’s now a legal requirement rather than a best-practice suggestion.
For employees, the upside is straightforward. Your super starts earning returns sooner instead of sitting with your employer for up to three months at a time, which adds up to a small but genuine compounding benefit over a working life. It also makes it far easier to spot a problem. The ATO now has real-time visibility of super payments, so if your employer falls behind, it shows up much faster than it used to under the old quarterly system.
It’s worth taking two minutes to check your last few payslips against your super fund’s transaction history to confirm contributions are actually landing on schedule. If they’re not, that’s worth raising with your employer or getting advice on.
Both major contribution caps increased this financial year, which opens up more room for people who are in a position to top up their super.
The concessional cap, which covers employer SG contributions and any salary sacrifice you make, has risen from $30,000 to $32,500 for 2026-27. These contributions are taxed at 15% inside your super fund, generally well below most people’s marginal tax rate, which is what makes salary sacrificing attractive for many.
If your total super balance was under $500,000 at 30 June last year, you may also be able to use unused concessional cap space from previous financial years, on top of this year’s $32,500. Unused amounts carry forward for five years before they expire, so it’s worth checking your available carry-forward balance in ATO online services before assuming your cap is just $32,500 for the year.
The non-concessional cap has increased from $120,000 to $130,000. If you’re eligible to use the bring-forward rule, which lets you pull forward up to three years of caps into a single contribution, the maximum has risen to $390,000. How much you can actually bring forward now depends on your total super balance at 30 June the previous year:
That $2.1 million figure lines up with the general transfer balance cap, which also increased this year (more on that below). If you’re weighing up a large after-tax contribution, whether from savings, an inheritance, or the sale of an asset, this is one to get right before you make the transfer, since exceeding your cap can trigger extra tax.
Division 296 is now law and applies from the 2026-27 financial year onward. In plain terms, it adds an extra 15% tax on the portion of investment earnings attributable to a total super balance above $3 million. If your balance is above $10 million, there’s a further 10% on the portion above that mark, on top of the standard tax already applied inside super.
A few practical points worth knowing:
If your balance is approaching $3 million, or you expect it to get there over the next few years through growth alone, it’s worth getting advice on how this affects your broader retirement and estate planning, rather than waiting for the first assessment to land.
A couple of smaller but still useful changes came in alongside the headline items:
None of these changes require urgent action for most people, but a few checks are worth making before the next quarter rolls around:
At 360 Financial Strategists, we are here to help. Whether you’re reviewing your mortgage, building wealth, or planning for retirement, our advisers can help you develop a clear financial strategy.
Book a consultation with our team today
What is payday super and when did it start? Payday super is the requirement for employers to pay Super Guarantee contributions at the same time as wages, generally within seven business days of each payday. It became law on 1 July 2026, replacing the previous quarterly payment system.
How much can I contribute to super before tax in 2026-27? The concessional (before-tax) contributions cap for 2026-27 is $32,500. This includes employer SG contributions and any salary sacrifice you make. You may also have access to unused cap amounts from the previous five years if your total super balance was under $500,000 at 30 June 2026.
What is the Division 296 super tax? Division 296 is a new tax that applies an extra 15% on investment earnings linked to the portion of a total super balance above $3 million, and a further 10% on the portion above $10 million. It applies from the 2026-27 financial year, with the first assessments expected in 2027-28.
Has the Super Guarantee rate changed this year? No. The SG rate has been 12% since 1 July 2025, which was the final step in a legislated series of increases. It hasn’t changed for 2026-27.
Do I need to do anything differently with my super fund because of these changes? Not necessarily. The changes mostly affect how much you can contribute and how often your employer pays, rather than requiring you to switch funds. That said, if your balance is approaching $3 million or you’re planning a large contribution, it’s worth getting advice specific to your situation before acting.
Managing Director / Co-Founder / Financial Adviser
1. Set Clear Financial Goals
2. Create a Realistic Household Budget
3. Build an Emergency Fund
4. Reduce Debt Strategically
5. Organise Your Financial Records
6. Review Your Insurance Cover
7. Check Your Superannuation and Estate Planning
8. Review Your Home Loan and Other Financial Commitments
9. Set SMART Financial Goals
10. Work with a Financial Professional
Just as many Australians make personal resolutions at the start of the year, the beginning of a new financial year is an ideal time to assess your financial wellbeing.
Reviewing your income, expenses, savings, investments and financial goals can help identify opportunities to improve your financial position and stay on track for the year ahead.
Even small adjustments today can have a meaningful impact on your long-term financial success.
Every financial plan starts with knowing what you want to achieve.
Your goals might include:
Clear goals provide direction and make it easier to prioritise your spending throughout the year.
A well-planned budget is one of the most effective financial tools available.
Tracking your income and expenses helps you:
Remember, a budget should be flexible enough to adapt as your circumstances change.
Unexpected expenses can happen at any time.
Having an emergency fund provides financial security and reduces the need to rely on credit cards or personal loans when life’s surprises occur.
Aim to build savings that can cover several months of essential living expenses over time.
Managing debt effectively is one of the fastest ways to improve your financial health.
Start by reviewing:
Paying down high-interest debt first can reduce interest costs and free up cash for future financial goals.
Good record keeping makes tax time significantly less stressful.
According to the Australian Taxation Office (ATO), many financial records should be retained for at least five years.
Consider organising:
Digital storage solutions can make ongoing record management much easier.
Your insurance needs change as your life evolves.
Take time to review:
Ensuring your cover remains appropriate can provide valuable financial protection for you and your family.
Superannuation is one of your most valuable long-term assets.
Now is a good time to review:
It’s also worth reviewing your Will and estate planning documents to ensure they still reflect your current circumstances.
Interest rates and lending products change regularly.
Reviewing your mortgage could help you:
It’s also worth reviewing other ongoing financial commitments to ensure you’re still receiving value for money.
Financial goals are far more likely to succeed when they’re SMART.
Make sure your goals are:
Breaking larger goals into smaller milestones can make them feel more achievable and help maintain motivation throughout the year.
You don’t have to manage your finances alone.
An accountant or financial adviser can help you:
Professional advice can provide clarity and confidence when making important financial decisions.
Financial success doesn’t happen overnight, but consistent habits can make a significant difference over time.
By setting clear goals, reviewing your finances regularly, and making informed decisions throughout the year, you’ll be better positioned to achieve greater financial security and long-term wealth.
The new financial year offers a fresh opportunity to build healthy financial habits that support your future.
At 360 Financial Strategists, we help Australians navigate interest rate changes with confidence. Whether you’re reviewing your mortgage, building wealth, or planning for retirement, our advisers can help you develop a clear financial strategy.
If you’re looking to add extra money to your super, you may be comparing salary sacrifice super and voluntary super contributions.
Both options can help you grow your retirement savings. The difference is how the money is contributed, how it is treated for tax, and how much flexibility you have.
Salary sacrifice is generally a before-tax contribution arranged through your employer. Voluntary super contributions are usually made from your own money, giving you more control over timing, lump sums and whether you may later claim a tax deduction.
The right option depends on your income, cash flow, contribution caps, tax position and broader financial goals. This guide explains the key differences, common mistakes and what to check before you contribute.
Salary sacrifice super may suit people who have regular income and want automatic before-tax contributions made through payroll – it’s the simple and most common option.
Voluntary super contributions may suit people who want more flexibility, want to contribute lump sums, or want to decide later whether to claim a personal tax deduction.
The main difference is control. Salary sacrifice gives you structure. Voluntary contributions give you flexibility.
The tax outcome also depends on how the contribution is made. Salary sacrifice is generally treated as a concessional contribution. A personal voluntary contribution may be non-concessional if you do not claim a deduction, or concessional if you claim a valid personal tax deduction.
Salary sacrifice super is an arrangement where your employer pays part of your pre-tax salary into your super fund.
Instead of receiving that amount as take-home pay, the money goes into your super before income tax is withheld. These contributions are generally treated as concessional contributions and are taxed inside your super fund.
For many people, the main benefit is simplicity. Once the arrangement is set up, the contribution can happen automatically each pay cycle.
Salary sacrifice super may work well if you:
The trade-off is cash flow. Because money is redirected into super before it reaches your bank account, your regular take-home pay will be lower. That may be fine if you have a clear surplus each pay cycle, but it can create pressure if your budget is already tight.
Salary sacrifice also needs to be planned around your total concessional contributions. Your employer’s compulsory super payments and any salary sacrifice amounts generally count towards the same cap.
Voluntary super contributions are extra contributions you choose to make into super, above the compulsory super your employer pays.
The term can cause confusion because voluntary contributions can be treated in different ways.
A voluntary contribution may be:
If you make an after-tax contribution and do not claim a deduction, it is generally treated as a non-concessional contribution. If you make a personal contribution and claim a valid tax deduction, it generally becomes a concessional contribution.
That distinction matters. Two people can both make “voluntary” contributions, but the tax treatment may be different depending on whether a deduction is claimed.
This is why the comparison between salary sacrifice super vs voluntary contribution is not just about where the money comes from. It is also about timing, tax treatment, contribution caps and the process required to claim a deduction.
Salary sacrifice is arranged through your employer, with part of your pre-tax salary paid into super through payroll. Voluntary super contributions are usually made by you directly from your bank account or savings.
Salary sacrifice is generally treated as a concessional contribution because it comes from pre-tax income. Voluntary contributions may be non-concessional if you do not claim a deduction, or concessional if you claim a valid personal tax deduction.
Salary sacrifice is more structured, as the contribution is usually set up to continue automatically each pay cycle. Voluntary contributions give you more control over when you contribute, how much you contribute, and whether you may want to claim a deduction later.
Salary sacrifice needs to be processed by your employer’s payroll team. Voluntary personal contributions usually do not need employer involvement, as you make the payment directly to your super fund.
Salary sacrifice generally counts towards your concessional contributions cap, along with employer super guarantee payments and any deductible personal contributions. Voluntary contributions may count towards either the concessional or non-concessional cap, depending on whether you claim a deduction.
Salary sacrifice may suit people with steady income who want automatic before-tax contributions. Voluntary super contributions may suit people who want more control, have irregular income, receive lump sums, or want to decide later whether to claim a tax deduction.
With salary sacrifice, the main risks are reducing your take-home pay too much or exceeding your concessional contributions cap. With voluntary contributions, the main risks are missing the deduction notice process, contributing too close to a deadline, or misunderstanding which cap applies.
Tax is often the main reason people compare salary sacrifice and voluntary super contributions.
Salary sacrifice contributions are generally concessional contributions. This means they are made from pre-tax income and taxed in the super fund, rather than being paid to you as salary first.
Voluntary personal contributions can be treated differently depending on whether you claim a tax deduction.
If you do not claim a deduction, the contribution is generally treated as a non-concessional contribution. This means it comes from money you have already paid tax on.
If you do claim a valid deduction, the contribution is generally treated as a concessional contribution. This means it counts towards your concessional cap and is taxed inside the super fund.
The tax outcome can depend on:
A tax-effective contribution is not always the same as the best financial decision. Money added to super is generally preserved until you meet a condition of release. That means the decision should also be tested against cash flow, short-term goals and when you may need access to the money.
Contribution caps are one of the most important things to check before adding extra money to super.
The concessional contributions cap applies to before-tax contributions. This generally includes:
As of June 2026, the annual concessional contributions cap is $32,500.
The non-concessional contributions cap applies to after-tax contributions that are not claimed as a deduction. As of June 2026, the annual non-concessional contributions cap is $130,000, although bring-forward rules may allow some people to contribute more over a shorter period if they meet the eligibility rules.
The key point is that salary sacrifice does not sit in a separate cap. It generally shares the concessional cap with your employer’s compulsory super contributions and any deductible personal contributions.
For example, if your employer is already contributing to your super, those contributions reduce the amount of concessional cap space left for salary sacrifice or deductible personal contributions.
Going over a contribution cap can have tax consequences. Before making extra contributions, it is worth checking:
Salary sacrifice may make sense when your income is regular and your budget can handle lower take-home pay.
It can be useful for people who want a disciplined, automatic way to add to super without needing to remember to make separate transfers. Once the arrangement is in place, the contribution can happen in the background through payroll.
Salary sacrifice may suit you if:
It may be less suitable if your income changes often, your household expenses are uneven, or you are saving for another major goal such as a home deposit.
The main risk is setting the amount too high. A contribution strategy should support your retirement goals without creating avoidable cash flow stress now.
Voluntary super contributions may make sense when you want more control over when and how much you contribute.
This can be useful if your income is irregular, you receive bonuses, or you prefer to wait until later in the financial year before deciding how much to contribute.
Voluntary contributions may suit you if:
This approach can be especially useful for people who want to review their cash flow before locking money into super.
The main risk is administration. If you want to claim a tax deduction for a personal contribution, you need to follow the correct process. This usually includes lodging a valid notice of intent with your super fund and receiving acknowledgement before claiming the deduction in your tax return.
Before choosing between salary sacrifice super and voluntary super contributions, start with the bigger picture.
Ask yourself:
If your income is steady and your budget has room, salary sacrifice may be easier to manage.
If you want to wait, contribute irregular amounts, or decide later whether to claim a deduction, voluntary contributions may provide more flexibility.
The important point is that super should not be viewed in isolation. Extra contributions can support long-term retirement planning, but they also affect cash flow, tax planning and what you can do with your money today.
There are a few common mistakes people make when comparing voluntary super contributions vs salary sacrifice.
The first is assuming voluntary contributions are always after-tax. They are not. A personal contribution may become concessional if you claim a valid deduction.
The second is forgetting that salary sacrifice counts towards the concessional contributions cap. Your employer’s compulsory super contributions generally count towards the same cap, so you need to check the total amount contributed.
The third is choosing salary sacrifice without reviewing cash flow. A lower tax bill is not helpful if the strategy leaves you short on everyday expenses, debt repayments or savings goals.
The fourth is leaving personal deductible contributions too late. If you want to claim a deduction, the contribution and notice process need to be handled correctly.
The fifth is making the decision based only on tax. Super contributions should be considered alongside your retirement goals, investment strategy, property plans, debt position and need for accessible savings.
If you are based in Melbourne and weighing up salary sacrifice super vs voluntary contributions, it can help to look at the decision as part of a wider financial plan.
At 360 Financial Strategists, our financial advisors help clients understand how super contributions fit alongside retirement planning, cash flow, tax-effective strategies and long-term wealth goals.
The right strategy is not just about adding more to super. It is about choosing the right contribution type, understanding the caps, protecting your cash flow and making sure the decision supports your broader financial position.
Learn more about our superannuation advice online, or book a free clarity call to discuss your next step.
Salary sacrifice is not always better. It may suit people who want automatic before-tax contributions through payroll. Voluntary contributions may suit people who want more flexibility, want to contribute lump sums, or want to decide later whether to claim a tax deduction.
Some voluntary personal contributions may be tax deductible if you meet the rules and complete the required notice process with your super fund. If you do not claim a deduction, the contribution is generally treated as a non-concessional contribution.
Yes. Salary sacrifice contributions generally count towards your concessional contributions cap, along with employer super guarantee payments and personal contributions claimed as a tax deduction.
Yes, you may be able to use both strategies. The important step is checking how each contribution will be treated and whether you have enough room under the relevant contribution caps.
Concessional contributions are generally before-tax contributions. They include employer super guarantee payments, salary sacrifice contributions and personal contributions claimed as a tax deduction. Non-concessional contributions are generally after-tax contributions that are not claimed as a deduction.
You may be able to claim a tax deduction for eligible personal super contributions. To do this, you generally need to lodge a valid notice of intent with your super fund and receive acknowledgement before claiming the deduction in your tax return.
If you exceed a contribution cap, there may be tax consequences. The outcome depends on the type of contribution and your circumstances, so it is worth checking the ATO rules or getting advice before making large contributions.
Financial advice can help if you are unsure which contribution type suits your goals, how much cap space you have, or how extra super contributions may affect your cash flow, tax position and retirement plan.
As the end of the financial year approaches, many Australians focus on lodging their tax return. However, some of the biggest tax-saving opportunities occur before 30 June, not after.
Whether you’re a young professional, growing family, business owner or pre-retiree, taking action before the financial year ends may help reduce your tax liability, boost your superannuation and improve your overall financial position.
The key message this year is simple: plan ahead rather than waiting until tax time.
If you have available cash flow, prepaying certain deductible expenses before 30 June may allow you to bring forward a tax deduction into the current financial year.
Common examples may include:
By paying before 30 June, you may receive the tax benefit sooner rather than waiting until the following financial year. However, not all expenses qualify, so professional advice is important.
The Australian Taxation Office has indicated ongoing focus on:
Maintaining accurate records remains essential when preparing your tax return.
Income Protection Insurance Deductions
Many Australians are unaware that premiums paid for income protection insurance may be tax deductible.
However, only the portion covering loss of income is generally deductible. Other forms of personal insurance such as life insurance, trauma insurance or critical illness cover are generally not deductible.
While tax deductions often receive the most attention, superannuation contributions can be equally valuable from a long-term wealth-building perspective.
The annual concessional contribution cap is currently $30,000 and includes:
Reviewing your contributions before 30 June can help determine whether there is remaining capacity available within your cap.
Australians under age 75 may be eligible to contribute up to:
Before making additional contributions, it’s important to consider your total super balance and contribution limits.
One of the most commonly overlooked EOFY issues is timing.
Super contributions count when the money is received by the super fund—not when the payment is sent. Leaving contributions until the final days of June can potentially create issues if processing delays occur.
EOFY can be an excellent opportunity to:
Families may benefit from:
Business owners should consider:
For Australians approaching retirement, EOFY may provide an opportunity to:
Before 30 June, consider:
✔ Reviewing deductible expenses
✔ Checking income protection insurance deductions
✔ Reviewing concessional contribution limits
✔ Assessing non-concessional contribution opportunities
✔ Confirming super contributions are received before EOFY
✔ Ensuring records are accurate and up to date
The earlier these steps are completed, the greater flexibility you may have before financial year-end.
With 30 June fast approaching, now is the ideal time to review your tax position, super contributions and financial strategy.
Whether you’re looking to reduce your tax liability, grow your superannuation or prepare for the year ahead, taking action before EOFY could make a meaningful difference.
Book a conversation with our team today and discover the opportunities available before the financial year ends.
Depending on your circumstances, you may be able to claim work-related expenses, income protection insurance premiums, investment-related expenses and other eligible deductions. Keeping accurate records is essential.
In some cases, yes. Certain eligible expenses can be prepaid before 30 June, allowing you to claim the deduction in the current financial year. Always seek advice to confirm eligibility.
The concessional contribution cap is $30,000 per year and includes employer super contributions, salary sacrifice contributions and personal deductible contributions.
Eligible Australians may be able to contribute up to $120,000 per year as non-concessional contributions, or up to $360,000 under the bring-forward rule, subject to eligibility requirements.
As early as possible. Super contributions count when they are received by your super fund, not when you transfer the money. Processing delays near 30 June can result in missed opportunities.
Generally, yes. Premiums that cover loss of income may be tax deductible. However, life insurance, trauma insurance and total permanent disability cover are generally not deductible when held personally.
Exceeding contribution caps can result in additional tax and reporting requirements. It’s important to review your contributions before making additional payments.
EOFY is one of the best times to review your tax position, superannuation strategy and broader financial goals. Professional advice can help ensure you don’t miss valuable opportunities.
If you’re running a business, chances are you’ve heard about the instant asset write-off — and probably wondered if it’s still worth using, how it works now, and whether you’re missing out.
The short answer? It can be a powerful tool for managing cash flow and reducing your tax bill — but only if you understand how and when to use it properly.
This article breaks it down in plain English so you can make informed decisions, not rushed ones at the end of financial year.
The instant asset write-off allows eligible Australian businesses to claim an immediate tax deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use.
Instead of depreciating the asset over several years, you claim the full amount upfront (subject to thresholds).
Think of it as bringing forward your tax deductions, which can improve short-term cash flow.
The rules around the instant asset write-off have changed multiple times over the past few years — which is where most of the confusion comes from.
As at the current settings (subject to legislation updates):
This follows changes from previous years, including 2023,2024 and 2025. These frequent updates are why it’s important not to rely on last year’s rules when making decisions.
At its core, it’s simple — but the detail matters.
You Purchase an Eligible Asset
This could include:
It’s not enough to order or pay for the asset — it must be ready for use in your business before the deadline.
If the asset cost is under the threshold, you can claim the full business-use portion as a deduction in your tax return.
If you use the asset partly for personal use, you can only claim the business portion.
Generally, the scheme applies to:
If you’re unsure whether you qualify, this is where a conversation matters, eligibility isn’t always as straightforward as it seems.
Most tangible depreciating assets used in your business can qualify, including:
What doesn’t qualify:
This is where strategy comes in.
By claiming deductions upfront, you may reduce your taxable income — meaning less tax payable in the short term.
It can support decisions to upgrade equipment, improve efficiency, or expand operations.
If you were already planning to invest in assets, timing the purchase correctly can make a real difference.
Up-to-date equipment and systems can improve productivity and customer experience.
The instant asset write-off sounds simple — but there are a few common traps.
It’s Not “Free Money” – You’re not getting a discount, you’re bringing forward a deduction. The cash still leaves your business.
Timing Is Everything – If the asset isn’t ready for use before 30 June, you miss the deduction for that year.
It Shouldn’t Drive Bad Decisions – Buying something just to “save tax” often doesn’t stack up financially.
Cash Flow Still Matters – Even if you reduce tax, you still need to fund the purchase upfront.
If you’re considering using the instant asset write-off in 2026 but want to make sure it actually makes sense for your business, a quick conversation can help.
A Free Business Advice Clarity Call with the team at 360 Financial Strategists gives you a chance to talk through your options, understand the impact, and decide what’s right for you — without pressure. Sometimes it’s just about having the right conversation to make the next move clearer.
It allows eligible businesses to immediately deduct the cost of eligible assets used in their business, rather than depreciating them over time.
Currently set at $20,000 per asset for eligible small businesses, but always check for updates as thresholds change.
Yes — the threshold applies per asset, not per year.
No — financed assets may still qualify, depending on structure and use.
You’ll need to depreciate the asset over time instead of claiming it upfront.
Working from home (WFH) is no longer a temporary shift—it’s a normal part of how many Australians work. With that shift, the way you claim home office expenses on your tax return has evolved. The home office rate, set by the Australian Taxation Office, is the method many people use to calculate deductions for the costs of working from home.
In simple terms, the home office rate is part of the fixed rate method, which allows you to claim a set amount per hour worked from home to cover running expenses. These expenses typically include electricity, internet, mobile or phone usage, and basic office consumables like stationery. It’s designed to simplify the process so you don’t need to calculate every individual cost separately.
However, the system hasn’t stayed the same. Prior to recent changes, many Australians used the well-known 80 cents per hour shortcut method, which bundled nearly all home office expenses into one simple rate with minimal record-keeping. While convenient, it didn’t always accurately reflect actual costs—especially for people working from home long-term.
From 2023 onwards, the ATO removed the shortcut method and refined the fixed rate method. This means:
These changes aim to strike a balance between simplicity and accuracy. While the process is still relatively straightforward, it does require a bit more diligence than in previous years.
For many households, this has meant rethinking how they track their work patterns and expenses. It’s no longer enough to estimate—documentation matters. That said, the fixed rate method remains a practical option for most employees and small business owners who work from home regularly.
Claiming a work-from-home tax deduction comes down to choosing the right method and maintaining the right records. The two main options are the fixed rate method and the actual cost method.
The fixed rate method is the most commonly used because it simplifies the process. You multiply the number of hours worked from home by the ATO’s set hourly rate. This rate is intended to cover common running expenses, which means you don’t need to calculate each one individually.
To make a valid claim under the fixed rate method, you’ll need:
It’s important to understand what the fixed rate method does and does not include.
| Includes | Doesn’t include |
Electricity and gas for heating, cooling, and lighting Internet and phone usage Stationery and small consumables | Office furniture (such as desks and chairs) Computers, monitors, and other equipment Repairs or depreciation of assets These items can often still be claimed, but they must be calculated separately using different tax rules |
The alternative is the actual cost method, which requires you to calculate the exact work-related portion of each expense. This method can potentially result in a larger deduction, but it is more complex and requires detailed records. For most people, the fixed rate method strikes a good balance between ease and accuracy.
While claiming WFH expenses can reduce your taxable income, it’s important to approach it carefully. The ATO has increased its focus on compliance in this area, and incorrect claims can lead to adjustments or penalties.
Here are some key considerations:
One of the most common misconceptions is that you can claim a standard amount without any documentation. Under current rules, this is not the case. Even when using the fixed rate method, you still need to show how many hours you worked and that you incurred the relevant expenses.
Another important factor is consistency. If your working from home arrangement changes throughout the year—such as hybrid work or varying hours—you’ll need to reflect that accurately in your records.
For business owners and self-employed individuals, the rules can be slightly different, particularly when it comes to occupancy expenses like rent or mortgage interest. These claims can have broader implications, including potential capital gains tax impacts, so it’s worth seeking professional advice before proceeding.
The removal of the 80 cents per hour shortcut method marked a significant change in how Australians approach WFH deductions. While it was easy to use, it often oversimplified real costs and didn’t encourage accurate record-keeping.
The updated fixed rate method introduces more accountability. Instead of relying on a blanket rate with minimal evidence, taxpayers now need to demonstrate both their work-from-home hours and the expenses they’re claiming.
This shift reflects a broader trend in tax administration—moving towards greater transparency and accuracy. While it may feel like more work initially, it also creates a fairer system where deductions more closely reflect actual costs. In 2024-2025 the ATO updated its policy and went to a 70 cent per work hour fixed rate.
Staying on top of your WFH claims doesn’t need to be complicated. A few simple habits can make the process much easier at tax time:
The key is consistency. Small, regular updates are far easier than trying to reconstruct an entire year’s worth of information at the last minute.
While WFH deductions can provide some tax relief, they are just one part of your overall financial picture. Understanding how they fit into your broader strategy—such as cash flow, tax planning, and wealth creation—can help you make more informed decisions.
For example, choosing between the fixed rate and actual cost methods isn’t just about convenience. It can affect your taxable income, your record-keeping obligations, and even your long-term financial planning.
This is where having a clear strategy matters, even if you are a smaller size business or a consultant. Rather than treating tax deductions as a once-a-year exercise, integrating them into your overall financial plan can lead to better outcomes over time.
If you’re unsure how to approach this, it may be worth speaking with a professional. The ASIC provides general guidance on financial decision-making, but personalised advice can help you apply these rules to your specific situation.
Not sure if you’re claiming your working from home expenses the right way?
A quick conversation can help you understand what applies to your situation and where you might be missing opportunities.
Book a Clarity Call with the team at 360 Financial Strategists and get a clearer picture of your tax position and overall financial strategy.
The fixed rate is set by the ATO and is applied per hour worked from home. It is designed to cover common running expenses such as electricity, internet, and phone usage. The exact rate does change over time, so it’s important to check the latest ATO guidance.
Yes, you can claim WFH expenses if you meet the eligibility criteria and have the appropriate records. The claim must relate directly to your work and not be reimbursed by your employer.
The shortcut method has been removed. Taxpayers now need to use either the fixed rate method or the actual cost method, both of which require more detailed record-keeping. The current fixed rate is now 70 cents in 2026 with record keeping required.
You generally cannot claim WFH expenses without records. Even under the fixed-rate method, you need to show your work-from-home hours and provide evidence of the relevant expenses.
If you own (or are thinking about selling) an investment property in Australia, chances are you’ve asked:
Capital Gains Tax (CGT) can significantly impact your net sale proceeds — but with the right structure and advice, it may be managed effectively within the rules set by Australian law.
This guide explains how CGT works, when exemptions may apply, and how to structure your property decisions carefully and legally.
In Australia, capital gains tax is not a separate tax. It forms part of your income tax and applies when you sell an asset — including real estate — for more than you paid. CGT is administered by the Australian Taxation Office (ATO).
When you sell an investment property:
Capital Gain = Sale Price – Cost Base
If you’ve owned the property for more than 12 months, individuals and trusts may be eligible for the 50% CGT discount.
PPOR meaning stands for Principal Place of Residence. It is your main home. If a property qualifies as your main residence, you may be eligible for the main residence exemption, meaning you may not pay CGT on its sale.
To qualify as your PPOR, the property generally must:
The main residence exemption may allow you to avoid paying CGT when selling your home.
However, complications arise when:
This is where the 6-year rule becomes important.
The 6-year rule allows you to treat a former main residence as your PPOR for tax purposes even after you move out — for up to six years if it is used to produce income.
If:
You may still claim it as your main residence for up to six years while it’s rented. If you move back in, the 6-year period resets.
This strategy is commonly used by:
But — and this is critical — you can generally only have one main residence at a time for CGT purposes (with limited exceptions).
There is no minimum time requirement stated in legislation. However, the ATO looks at intent and evidence.
Simply moving in briefly before selling is unlikely to qualify if it appears to be tax-driven rather than genuinely residential.
Short-term occupancy purely for tax advantage may be challenged.
There is no simple “avoidance” method — but there are legal exemptions and strategies.
Here are legitimate scenarios where CGT may be reduced or eliminated:
If the property qualifies as your PPOR, CGT may not apply.
As explained above, you may retain PPOR status temporarily.
If the property was:
You may receive a partial CGT exemption.
Capital losses from other investments (e.g., shares) can offset capital gains.
Individuals may qualify for the 50% CGT discount if they own the asset for longer than 12 months.
Certain SMSF strategies may offer tax efficiency, but these require professional advice and strict compliance.
The more accurate question is:
How can I legally minimise capital gains tax?
Strategies may include:
Deliberate tax avoidance schemes are illegal. Always work within ATO guidelines.
Case Study:
Emma bought a Melbourne apartment in 2015 for $600,000.
She lived in it for 3 years, then moved interstate and rented it for 4 years.
She sold in 2025 for $900,000.
Because she used the 6-year rule and did not nominate another main residence, she may be eligible for a full CGT exemption.
However, if she had purchased and nominated another PPOR during that time, the outcome would differ.
This is why strategic advice matters.
Ownership structure impacts tax:
Each has different tax consequences and asset protection considerations.
At 360 Financial Strategists, this is where integrated advice becomes powerful — looking at lending, tax implications, and long-term wealth planning together.
Selling in:
may reduce overall tax impact.
This requires:
Capital gains tax decisions often intersect with:
A poorly timed sale can cost tens of thousands in unnecessary tax. A well-structured plan may preserve significantly more wealth.
Selling an investment property is not just a property decision — it’s a tax decision, a cash-flow decision, and often a retirement decision.
Understanding:
can make a substantial financial difference.
But the interpretation of tax law is complex. If you’re considering selling, restructuring, or converting a property from investment to owner-occupied, it’s worth having a structured strategy conversation first.
At 360 Financial Strategists, we take an integrated approach to:
Because smart property decisions should support your broader financial life — not create unexpected tax shocks. If you’re planning a sale, let’s model it properly before you sign the contract.
You may qualify for:
Professional advice is essential to confirm eligibility.
It allows you to treat a former home as your main residence for up to six years while renting it out, provided you do not nominate another main residence during that time.
There is no fixed minimum period. The property must genuinely be your principal place of residence. The ATO assesses intention and evidence.
CGT cannot be “avoided” through schemes. It may be reduced through legal exemptions and structured planning.
Are you an Australian investor receiving dividends from local companies? You could be missing out on significant tax benefits—or even cash refunds—if you don’t fully understand the power of franking credits.
Franking credits are a cornerstone of Australia’s tax system, designed to prevent the double taxation of company profits and boost your after-tax investment returns.
This guide explains what franking credits are, how they work, who benefits most, and how to maximise your entitlements. While it provides comprehensive information, it is not personal financial advice—for tailored strategies, consult a qualified financial advisor.
Franking credits are part of Australia’s dividend imputation system, which ensures company profits are taxed only once:
Company Pays Tax: Australian companies pay corporate income tax (up to 30%) on profits.
Profits Distributed: The remaining profits are paid to shareholders as dividends.
Tax Attributed: The tax already paid by the company is “imputed” to shareholders as a franking credit.
Without franking credits, company profits would be taxed twice: first at the corporate level, then again at the shareholder level. Franking credits ensure that the tax paid by the company is recognised, preventing shareholders from paying tax twice on the same income.
Introduced in 1987 by the Hawke/Keating Labor government.
Became fully refundable in 2000, allowing excess franking credits to be refunded in cash, significantly benefiting low-income earners and retirees.
Companies maintain a franking account to track tax paid.
Dividends can be fully franked, partially franked, or unfranked.
A 100% franked dividend means the full corporate tax rate has been paid on the underlying profits.
You receive two components:
Cash dividend – the actual payment.
Franking credit – the imputed tax paid by the company.
Both are declared as assessable income (“grossing up”) and the franking credit offsets your personal income tax.
Fully Franked: Full corporate tax paid; shareholders get full franking credit.
Partially Franked: Partial tax paid; shareholders get proportional credit.
Unfranked: No tax paid; shareholders pay full personal tax.
Company tax rate: 30%
Cash dividend: $70
Franking credit: $30
Total assessable income: $100
0% marginal tax: Receive $30 refund
19% marginal tax: $19 covers tax, $11 refunded
30% marginal tax: No extra tax, no refund
45% marginal tax: $30 offsets, pay remaining $15
Franking credits reduce overall tax and may provide cash refunds, making franked dividends attractive.
Marginal tax below 30%? Receive cash refunds for excess franking credits.
Retirees relying on dividends can significantly boost disposable income.
Pension phase SMSFs have 0% tax on earnings, making franking credits fully refundable.
Provides a powerful boost to retirement income.
Higher-income investors still benefit by reducing tax payable on dividends.
Increases after-tax returns compared to unfranked dividends.
Must be an Australian resident for tax purposes. Non-residents cannot claim franking credits.
Must hold shares “at risk” for at least 45 days (or 90 for certain preference shares).
Ensures credits aren’t claimed by short-term buyers.
Prevents passing the benefit of franking credits to someone else.
Professional advice recommended if this rule applies.
If annual franking credits are under $5,000, the 45-day rule generally does not apply.
Apply anytime after July 1 for the previous financial year.
Methods:
myTax (online via myGov) – preferred method; often pre-fills dividend info.
Phone application – using NAT 4105 form.
Postal form – complete and mail NAT 4105.
Eligible individuals aged 60+ may receive refunds automatically if criteria are met, including:
Age ≥ 60
Dividend income ≤ $18,200
Shares held ≥ 2 years
Franking credits ≤ $5,460
No additional tax liabilities
Keep dividend statements for cash dividend and franking credit amounts.
Prior years’ credits can still be claimed.
TFN withholding may require full tax return.
Joint investments require separate declarations.
Formula (Fully Franked Dividend):
Franking Credit=Dividend Amount×Company Tax Rate1−Company Tax Rate\text{Franking Credit} = \text{Dividend Amount} \times \frac{\text{Company Tax Rate}}{1 – \text{Company Tax Rate}}
Example:
Dividend: $70
Company tax: 30%
Franking Credit: $70 × 0.42857 ≈ $30
Total assessable income: $100
Partially franked dividends are adjusted by the franking percentage.
Franking credits attach directly to dividends paid by Australian companies.
Distributing Funds: Dividend income, including franking credits, distributed to investors.
Accumulating Funds: Credits contribute indirectly to fund growth.
Beneficiaries or partners may claim a share of franking credits from distributions, subject to integrity rules.
Fairness: Prevents double taxation.
Domestic investment: Encourages investment in Australian companies.
Government revenue cost: Refunds can be significant.
Disproportionate benefit: Often benefits wealthy retirees.
System complexity: Adds layers to taxation.
Australia’s system is unique; most countries tax dividends twice without credits.
Strategic Portfolio Review:
Seek fully franked dividends
Diversify portfolio to manage risk
Tax Planning:
Know your marginal tax rate
Consider SMSF pension phase for tax-free benefits
Professional Advice:
Consult a qualified financial advisor or tax agent
Ensure eligibility rules like the 45-day holding period are met
Franking credits can significantly enhance after-tax returns. Understanding eligibility, claiming processes, and strategic investment decisions empowers you to maximise these benefits.
Book a free consultation with a Financial Advisor in Melbourne to optimise your strategy.
This article is for general information only and does not constitute financial or tax advice. Individual circumstances may vary. Always consult a qualified financial advisor or tax professional before making financial decisions.
The future of your business is not a matter of chance, but a matter of choice and careful preparation. Every business, regardless of size or industry, will eventually face a transition in leadership, ownership, or critical roles. This underscores the profound importance of succession planning.
At its core, succession planning is a strategic, proactive process for identifying and developing internal people to fill key positions in the event of a vacancy. It goes far beyond replacing a CEO; it ensures continuity of leadership, seamless transfer of talent and knowledge, and strategic ownership transition. Unlike reactive measures, it is forward-looking and deliberate.
In today’s dynamic business environment, succession planning is a necessity:
Mitigating Risks: Unexpected departures, retirements, illnesses, or death can cripple an unprepared organization. A solid succession plan minimizes disruption.
Ensuring Continuity and Stability: Operations, client relationships, and strategic initiatives continue uninterrupted during key personnel changes.
Preserving Knowledge and Culture: Critical insights, processes, and culture embodied by long-serving leaders are captured and transferred.
Maximizing Business Value: A clear succession plan demonstrates stability and a strong talent pipeline, increasing perceived business value.
Attracting and Retaining Talent: Employees commit more when career paths and development opportunities are clear; visible succession strategies support retention and recruitment.
This guide provides a roadmap for building a resilient succession plan, exploring its facets, a step-by-step blueprint, common challenges, and the tools needed for a business to thrive across generations. For a tailored plan, consult a professional financial advisor.
Succession planning encompasses several interconnected areas:
Identifying Key Roles: Focus on positions whose vacancy would impact operations, strategy, or client relationships.
Developing a Leadership Pipeline: Continuous identification and development of high-potential employees for future leadership roles.
Internal Transfers:
Family: Passing the business to the next generation.
Employees/MBOs: Selling to existing management or employees.
ESOPs: Employees own company shares via a tax-advantaged plan.
External Sales: Selling to a third-party buyer, preparing the business to attract investors.
Preparing for Unforeseen Events: Sudden death, disability, or resignation.
Short-term vs Long-term Plans: Interim appointments for emergencies; long-term strategy for permanent replacements.
Identifying Critical Skills: Pinpoint unique capabilities and institutional knowledge essential for success.
Knowledge Transfer & Mentorship: Implement shadowing, cross-training, documentation, and mentorship programs.
Reluctance to Let Go: Gradual transitions, advisory roles, and professional coaching ease this challenge.
Identifying the Right Successor: Use objective data, formal assessments, and focus on competencies and cultural fit.
Knowledge Transfer Gaps: Shadowing, documentation, and exit interviews ensure critical insights are retained.
Family Dynamics: Governance structures, clear rules, and sometimes mediation are essential.
Funding the Transition: Explore seller financing, loans, private equity, insurance, or SERPs.
Lack of Time/Resources: Break processes into manageable steps, delegate, or hire external consultants.
Business Consultants: Objective perspective on strategy, structure, and talent.
Financial Planners & Wealth Managers: Align personal and business transition goals.
Attorneys: Draft buy-sell agreements, wills, trusts, and ensure compliance.
HR Consultants/Talent Specialists: Support assessments, development, and knowledge transfer.
HRIS with Talent Management: Track skills, performance, and readiness.
Project Management Tools: Organize tasks, timelines, and track progress.
Succession planning checklists
Talent assessment templates
Individual Development Plans (IDPs)
Communication plan frameworks
Scenario: Retiring owner sells to long-term operations manager.
Approach: Financial advisor assisted with valuation, seller-financed buyout, and phased transition with mentoring.
Outcome: Smooth transition, preserved culture, rewarding exit.
Scenario: Two siblings vying for CEO role.
Approach: Independent assessment and co-CEO transitional model.
Outcome: Minimized conflict, leveraged strengths, ensured growth.
Scenario: CTO resigns unexpectedly.
Approach: Emergency succession plan activated; interim CTO and accelerated internal development.
Outcome: Minimal disruption, maintained investor confidence, rapid recovery.
Succession planning is an investment in your business legacy. It mitigates risks, ensures smooth transitions, and safeguards the organization you’ve built.
Embrace a comprehensive approach across leadership, ownership, emergency preparedness, and talent development to navigate transitions confidently.
Start your succession planning journey today. Book a free, no-obligation strategy session with a qualified retirement financial advisor.
What is the primary goal of succession planning?
Ensure smooth operation by developing individuals ready for key roles, minimizing disruption, and preserving knowledge.
How does it differ from traditional replacement planning?
Replacement planning is reactive; succession planning is proactive, strategic, and long-term.
What are the risks of not having a plan?
Disruption, knowledge loss, decreased morale, reduced business value, and costly emergency replacements.
How early should planning start?
Ideally 3–5 years before leadership transitions; emergency plans should be in place from business inception.
Who should be involved?
Owners/executives, HR, potential successors, and external advisors; family members in family businesses.
What role do IDPs play?
They provide structured development for future roles via mentorship, training, and cross-functional experiences.
How to ensure knowledge transfer is effective?
Structured mentorship, shadowing, cross-training, documentation, and fostering a learning culture.
What are SERPs and their role?
Non-qualified retirement plans to retain and reward key executives during transitions.
How to communicate succession plans to non-successors?
Emphasize organizational stability and development opportunities; maintain confidentiality as needed.
What if a chosen successor leaves early?
Activate emergency plans, reassess talent pools, and remain flexible with internal/external candidates.
Are you wondering how the very latest pension changes affect your income, especially after the crucial July 2025 updates? You’ve come to the right place.
This guide provides the most current and comprehensive details on Australian Age Pension increases, including:
March 2025 rate changes
July 2025 income and asset test adjustments
A forecast for September 2025
We break down complex information into easy-to-understand language, with tables, examples, and actionable insights to help you maximise your entitlements. This article acts as a general guide; for a tailored plan, contact a retirement financial advisor.
| Category | Single Person | Couple (Combined) |
|---|---|---|
| Maximum Full Age Pension (from 20 March 2025) | $1,149.00 per fortnight (~$29,874/year) | $1,732.20 per fortnight (~$45,037/year) |
| New Income Free Areas (from 1 July 2025) | $218 per fortnight | $380 per fortnight |
| New Homeowner Asset Limits (Full Pension, from 1 July 2025) | $321,500 | $481,500 |
Note: These figures include the maximum pension supplement and energy supplement and are subject to individual assessment based on income and assets.
From 20 March 2025, the maximum full Age Pension saw modest increases:
Single Person: +$4.60 per fortnight → $1,149.00 per fortnight
Couple (Combined): +$7.00 per fortnight ($3.50 per person) → $1,732.20 per fortnight
These amounts include the basic rate, Pension Supplement, and Energy Supplement.
Example: Mary, a single homeowner, now receives an extra $4.60 every two weeks—small but meaningful in offsetting cost-of-living pressures.
Income Test Thresholds
Income Free Limits:
Single: $218 per fortnight (previously $212)
Couple: $380 per fortnight (previously $372)
Disqualifying Income Limits:
Single: $2,516 per fortnight (previously $2,510)
Couple: $3,844.40 per fortnight (previously $3,836.40)
Pension reduces by $0.50 for every $1 of income above the free limit.
Assets Test Thresholds
| Asset Test Limit | Single Homeowner | Single Non-Homeowner | Couple Homeowner | Couple Non-Homeowner |
|---|---|---|---|---|
| New Full Pension Limit | $321,500 | $579,500 | $481,500 | $739,500 |
| New Part Pension Limit | $704,500 | $962,500 | $1,059,000 | $1,317,000 |
Primary residence is exempt from the assets test but determines which thresholds apply.
Deeming Rates Update
First Threshold: 0.25% on $64,200 for singles / $106,200 for couples
Above Threshold: 2.25% on assets above these amounts
Deeming rates remain frozen, so assessable income from financial assets won’t increase with interest rate hikes.
Age Pension rates are reviewed to maintain purchasing power and living standards. Adjustments occur:
March & September: Rate adjustments
July: Income and asset threshold adjustments
Key Measures:
CPI (Consumer Price Index): Tracks inflation and cost-of-living changes
PBLCI (Pensioner & Beneficiary Living Cost Index): Focuses on pensioner-specific expenses
MTAWE (Male Total Average Weekly Earnings): Ensures pension keeps pace with wages
The “highest of” rule applies—the method giving the largest increase is used.
Next potential rate adjustment: 20 September 2025. Forecast based on current economic trends:
Q1 2025 CPI: +2.4% annual
MTAWE (Nov 2024): +4.6% annual
Anticipated increase: $5–$10 per fortnight for singles; $8–$15 for couples (forecast only).
Gift up to $10,000 per financial year
Maximum $30,000 over rolling 5 years
Excess treated as a deprived asset for 5 years
Example: John gifts $15,000; $5,000 is counted for asset test purposes, reducing pension.
Voluntary non-taxable government loan using home as security
Payments do not affect pension entitlements
Interest accrues at 3.95% p.a.; No Negative Equity Guarantee protects borrowers
Pre-pension age: Accumulation balances generally not assessed
Post-pension age: Converted to retirement income streams → assessable asset
Strategic contributions to a younger spouse’s super can temporarily reduce assessable assets.
Work Bonus: First $300 of employment income per fortnight exempt; accrues in an $11,800 bank
Pensioner Concession Card (PCC): Health, utilities, transport, and other discounts
Additional Supplements: Rent Assistance, Remote Area Allowance, etc.
| Myth | Fact |
|---|---|
| Home value always counts toward asset test | Primary residence is generally exempt; affects which asset test threshold applies |
| Super always counts before pension age | Generally exempt until Age Pension age and/or conversion to income stream |
| Pension increases are insignificant | PBLCI tracks real pensioner costs; increases aim to maintain purchasing power |
Life Events Affecting Pension: Marriage, death of a partner, buying/selling home, overseas travel, income/asset changes.
Use Official Calculators: Services Australia Age Pension & Work Bonus calculators
Review Your Details: Update MyGov and Centrelink income/assets regularly
Seek Professional Advice: For complex situations, gifting strategies, HEAS, and super planning
Stay Informed: Subscribe to government and trusted financial sources
Ask a financial advisor questions like:
How to optimise assets for pension
Best super drawdown strategy
Gifting implications
HEAS suitability
This guide also addresses common questions about eligibility, payments, and related benefits.
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