What To Do When Someone Dies – A Clear Guide to Handling Tax Affairs
When someone close to you dies, grief isn’t the only thing you’ll have to manage. If you’re named as the person responsible for their estate, there’s also tax to consider. The process may feel daunting, but with the right steps and guidance, you can handle it with care and confidence.
This article outlines what to do when you’re tasked with managing someone’s tax matters after their passing, using the latest information from the Australian Taxation Office (ATO).
Step One: Understand Your Role as Legal Personal Representative (LPR)
If you’re named the executor in the will, or appointed as the administrator by a court (when there’s no will), you’re considered the deceased’s Legal Personal Representative (LPR).
The ATO requires proof before you can act on the deceased’s behalf. You must provide:
A copy of the death certificate
A grant of probate (if there’s a will)
Or letters of administration (if there isn’t a will)
👉 You cannot access tax records or manage affairs until the ATO recognises you as the LPR. Learn more: Notifying the ATO of a death
Step Two: Lodge the Final Tax Return (“Date of Death” Return)
You must lodge a final tax return if the deceased:
Earned income above the tax-free threshold,
Had tax withheld,
Or had outstanding tax obligations.
This final return is known as the “date of death return.” It includes income earned from 1 July of the relevant financial year up to the date of death.
🔍 Tip: If the deceased was not required to lodge a return, you still need to submit a Non-lodgment advice form to the ATO.
Confirm whether previous years’ tax returns are outstanding
Lodge any that are overdue
Settle all tax debts
⚠️ Important: As the LPR, you can be held personally liable for unpaid tax if you distribute estate assets before all tax is settled. Learn more: Confirming tax obligations are complete
Step Four: Business and ABN Considerations
Did the deceased operate a business or hold an ABN?
If so, you may also need to:
Lodge the final Business Activity Statement (BAS)
Pay outstanding GST, PAYG or income tax
Cancel their ABN and any tax registrations
💼 For sole traders and business partners, there may also be capital gains tax (CGT) on the sale or transfer of business assets. This is a good time to consult a registered tax or legal advisor.
Settling a deceased estate is not a fast process. It can take 6–12 months, or more for complex estates.
The timeline depends on:
Whether probate or letters of administration are required
Whether the deceased had a business or foreign assets
Any disputes among beneficiaries
How quickly tax and legal requirements are met
Don’t Go It Alone
“Handling someone’s tax affairs after death can feel overwhelming. But with expert help, you don’t need to do it alone.”
Taking over someone’s financial legacy is a serious responsibility, but it’s one you don’t have to shoulder by yourself. Like unearthing gold, it takes time and care—but the value of doing it right is lasting.
If you’ve recently lost a loved one and need guidance managing their tax affairs, we’re here to help. DJ Grigg Financial has experience supporting families across Latrobe Valley and beyond through this process with clarity and compassion.
📞 Call us today or visit our website to schedule a confidential consultation.
Turning Skills into Real Gold: Understanding Personal Services Income (PSI)
If you’re a sole trader or run a business built around your personal skills—like IT, design, or consulting—Personal Services Income (PSI) could affect how your income is taxed. And if you don’t understand the rules, you could miss out on valid deductions or get hit with an unexpected tax bill.
Here’s what you need to know to stay compliant and strike gold with smart planning.
What Is Personal Services Income (PSI)?
According to the Australian Taxation Office (ATO), PSI is income that’s mainly a reward for your personal effort or skills—not from selling goods or the use of assets. If more than 50% of the income you earn from a contract is for your personal work or know-how, it’s likely PSI. Source: ATO – What is PSI?
PSI doesn’t apply to employees. But if you operate as a sole trader, company, partnership or trust, the rules could apply—making your business a Personal Services Entity (PSE).
Why Does PSI Matter?
If PSI rules apply to your income:
You may have to attribute the income to yourself personally, even if earned through a company or trust.
Some common business deductions may be disallowed, such as rent or mortgage interest on a home workspace.
You may not be able to split the income with family members or other entities.
It’s important to note that PSI rules do not change your legal status as a contractor or business operator—but they do affect how your income is taxed. Source: ATO – PSI and your tax obligations
How Can You Avoid PSI Rules?
If you can show that your business qualifies as a Personal Services Business (PSB), the PSI rules won’t apply. To do this, you need to pass at least one of four tests set by the ATO:
1. The Results Test
You’re paid to achieve a specific result, not just for your time. You use your own tools and fix mistakes at your own cost.
2. Unrelated Clients Test
You earn income from two or more unrelated clients and actively market your services to the public.
3. Employment Test
You employ or contract others (not just family or associates) who complete at least 20% of the main work.
4. Business Premises Test
You operate from dedicated business premises that are physically separate from your home and client locations.
But there’s a twist: If 80% or more of your PSI in a financial year comes from one client (and their associates), you must pass the Results Test or apply to the ATO for a PSB determination to avoid PSI rules. Source: ATO – PSB and the 80% rule
What Deductions Are Limited Under PSI?
If PSI rules apply, the ATO limits the deductions you can claim. For example:
You generally cannot claim rent, mortgage interest, or rates if working from a home office.
Payments to associates for admin or support services are also disallowed in most cases.
Not sure if your income is PSI? The ATO has an online PSI Decision Tool to help you work it out. Try it here →
We also recommend keeping clear records of your contracts, clients, marketing efforts, and work structure. These can help support your position if the ATO reviews your status.
Strike Gold with Confidence—Get Expert Help
Working hard should be rewarding. Don’t let PSI rules catch you off guard.
At DJ Grigg Financial, we help small businesses and contractors:
Assess if their income is PSI
Navigate the four PSB tests
Structure their operations for tax effectiveness
Maximise legitimate deductions
Let’s make sure your hard-earned income stays in your pocket, not lost in tax confusion.
Contact us today for a personalised PSI assessment. We’ll ensure you are claiming the maximum allowable deductions and being taxed correctly.
Unlocking Business Gold: Understanding Financial Accounting vs Management Accounting
As a business owner, you know accounting is essential. But did you know there are two types that serve very different purposes?
Knowing the difference between financial accounting and management accounting can be the golden key to making smarter business decisions—not just staying compliant.
Let’s break it down clearly, without jargon, and show you how both types of accounting work together to help your business shine.
What Is Financial Accounting?
Financial accounting is all about tracking your business’s past performance. It’s used to prepare financial statements and meet legal requirements.
These reports include:
Profit and loss statement
Balance sheet
Statement of cash flows
These documents help you:
Meet ATO compliance obligations
Report to banks or investors
Understand your historical performance
This type of accounting is based on strict reporting standards. In Australia, this includes following Australian Accounting Standards and tax obligations outlined by the Australian Taxation Office (ATO).
It’s essential for staying on the right side of the law—but on its own, it won’t tell you how to improve or grow.
What Is Management Accounting?
Management accounting looks forward. It helps you make decisions based on real-time data, trends, and forecasts.
It focuses on:
Cash flow management
Budgeting and goal setting
Sales and cost trend analysis
Business forecasting
Strategic advice tailored to your goals
You don’t need to lodge this information with the ATO, but it can be critical for success. Management accountants give you insights and help you plan your next move, not just reflect on your last one.
Imagine financial accounting as weighing your gold—it tells you what’s there. Management accounting is like crafting that gold into something more valuable.
Why You Need Both Types of Accounting
Here’s a simple comparison:
Feature
Financial Accounting
Management Accounting
Focus
Past
Present & Future
Purpose
Legal compliance
Strategic decision-making
Reports
Statutory financial statements
Internal reports, forecasts
Frequency
Annual or quarterly
Monthly or as needed
Audience
ATO, lenders, investors
Business owners, managers
While financial accounting is essential for compliance, management accounting provides the insights you need to take action.
As CPA Australia highlights, management accountants play a crucial role in helping businesses grow by providing relevant and timely decision-making information.
What Management Accounting Helps You Do
Here are just a few ways a management accountant can guide your business to success:
Stay ahead of cash flow problems Forecast upcoming inflows and outflows so you’re never caught short.
Set and track performance targets Know what success looks like and measure your progress monthly.
Find hidden inefficiencies Identify where you’re overspending or missing profit opportunities.
Secure funding more easily Lenders and investors value detailed, up-to-date reports and future planning.
Improve your pricing strategy Use real data to ensure your pricing supports your profit goals.
A financial accountant might help you report your numbers. A management accountant helps you understand them—and use them to move forward.
What the Experts Say
“Financial accounting tells the story of what happened. Management accounting helps you write the next chapter.” — Peter Crowley, Business Adviser
“When business owners understand their numbers, they stop reacting and start leading with confidence.” — Jessica Reid, Strategic Growth Consultant
These quotes remind us: your numbers are only valuable if you use them.
Be Cautious with Statistics
You may have heard that poor financial management is a leading cause of business failure. While ASIC has noted financial mismanagement is a contributing factor, they haven’t published a precise percentage.
So instead of quoting unsupported figures, it’s safer—and more honest—to say:
Poor financial oversight is a common issue among failing businesses.
Take the Next Step Toward Strategic Success
At DJ Grigg Financial, we believe in doing more than just tax returns. We partner with ambitious business owners across Victoria to bring clarity, control and confidence to their finances.
Whether you’re looking to:
Strengthen your cash flow,
Plan for future growth, or
Make sense of your financial data
We’re here to help.
Contact us today to discover how management accounting can unlock your business’s potential.
Shine Through the Stress: Why Mental Health Coaching Is Gold for Small Business Owners
Free, confidential support that helps you manage stress, anxiety and pressure—designed just for small business owners and sole traders.
Running a small business can feel like digging for gold without a map—rewarding but incredibly tough. Long hours, isolation, money stress and pressure to perform can leave you mentally exhausted.
According to Beyond Blue, many small business owners face stress, burnout and anxiety—but few seek support. That’s where NewAccess for Small Business Owners steps in.
What Is NewAccess for Small Business Owners?
Developed by Beyond Blue, NewAccess for Small Business Owners is a free, confidential mental health coaching program. It’s available nationwide, tailored specifically for small business owners and sole traders, and designed to help you manage stress, worry and overwhelm early—before things get worse.
You don’t need a doctor’s referral or mental health plan. It’s not counselling or therapy, but structured, practical coaching.
“Coaching is focused on helping people take practical steps to improve their mental wellbeing. It’s early support, not clinical treatment.” – Beyond Blue.
What Does the Program Include?
The program offers:
An initial assessment session
Five structured coaching sessions
Delivered by trained mental health coaches with experience in small business
Conducted via phone or video for flexibility
Operating Monday to Thursday 8:30am–8:00pm AEST, and Fridays until 5:00pm AEST
“Mental health coaching gives business owners tools to manage stress, set goals and move forward.” – Beyond Blue.
It’s a short-term, practical program designed to build skills like problem-solving, boundary setting, and managing negative thoughts.
Why Small Business Owners Are Struggling
According to research cited by Everymind and Beyond Blue, small business owners experience higher rates of psychological distress than the general population. Many delay seeking help due to time, stigma or lack of awareness.
“Business owners often feel isolated and responsible for everything. That pressure can lead to burnout and mental fatigue.” – Dr. Grant Blashki, Clinical Adviser at Beyond Blue.
Common stressors include:
Financial uncertainty
Pressure to succeed
Limited work-life balance
Isolation from friends or peers
This program is specifically built to acknowledge and address those realities.
Gold-Worthy Benefits of Coaching
Think of NewAccess coaching as a tool to help polish your mental resilience—so you can shine, even during pressure-packed days.
With the program, you can:
Talk to someone who gets the business journey
Build strategies to manage stress before it builds up
Improve clarity and focus in both personal and business life
Feel supported without judgement
“It gave me perspective. Talking to someone who understood business pressures made all the difference.” – NewAccess participant testimonial.
Who Can Access the Program?
To be eligible, you must:
Be 18 years or older
Own a small business or operate as a sole trader
Not currently seeing a psychologist, psychiatrist, or mental health counsellor
There’s no Medicare requirement, no waitlist, and no cost.
You Don’t Have to Do This Alone
Gold doesn’t lose its value when buried under pressure—it just needs to be uncovered. The same goes for you.
You don’t need to be at crisis point to benefit. If you’re feeling overwhelmed, now is the time to act. With free support that’s flexible, confidential and tailored to your experience, NewAccess could be the circuit-breaker you need.
Get Started Today
If you or someone you know is a small business owner feeling weighed down, don’t wait. Take the first step and learn more about NewAccess for Small Business Owners:
Golden Gains: Why Engaging a BAS Agent Is a Smart Business Move
Running a business is rewarding—but let’s face it, the admin can get overwhelming. From managing GST to lodging your BAS, it’s easy to feel buried in paperwork. If you’re tired of spreadsheets and second-guessing ATO deadlines, a registered BAS agent could be the gold-standard support your business needs.
Here’s why engaging a BAS agent isn’t just helpful—it’s a smart, strategic move that frees up your time and keeps your business on track.
What Is a BAS Agent?
A BAS agent is a professional registered with the Tax Practitioners Board (TPB). They are legally authorised to prepare and lodge Business Activity Statements (BAS) and handle other ATO-related tasks on behalf of your business. Their expertise covers:
Goods and Services Tax (GST)
Pay As You Go (PAYG) withholding and instalments
Superannuation contributions
Taxable Payments Annual Reports (TPAR)
Single Touch Payroll (STP)
To legally provide BAS services, they must meet specific qualifications, experience, and professional development requirements set by the TPB. ▶️ Learn more: TPB – Who needs to register as a BAS agent
DIY vs Delegating: Is It Worth Doing Your Own BAS?
Many small business owners start out doing everything themselves, including their BAS. While this might seem cost-effective at first, errors can be costly.
A 2021 report by CPA Australia found that nearly 1 in 3 small businesses made GST reporting mistakes, often due to lack of time or understanding of tax rules.
“Even small errors in BAS lodgements can trigger audits or penalties,” says BAS agent and registered practitioner Anna Thomas of Melbourne. “That’s why working with a BAS agent gives peace of mind.”
What Services Can a BAS Agent Provide?
A registered BAS agent can perform a wide range of tasks directly related to your ATO compliance. These include:
Preparing and lodging your BAS with the ATO
Calculating GST and PAYG amounts
Processing employee superannuation payments
Lodging Single Touch Payroll and TPAR reports
Reconciling payroll and business accounts
Representing your business in dealings with the ATO
1. Save Time and Stay Focused on Growth Instead of spending hours on admin, you can focus on what matters—serving customers and growing your business.
2. Ensure Compliance and Avoid Penalties A BAS agent keeps up with tax law changes, ATO deadlines, and lodgement requirements. This helps you stay compliant and avoid costly penalties.
3. Improve Accuracy Using best-practice tools and systems, a BAS agent helps ensure your financial reports and lodgements are accurate and up to date.
4. Gain Clear Financial Reporting While BAS agents can’t give broad tax advice unless also registered tax agents, they can offer insights related to your BAS obligations and financial recordkeeping.
How to Choose a Great BAS Agent
Not all advisors are created equal. Look for an agent who is:
Registered with the Tax Practitioners Board
Transparent about their fees and services
Using cloud-based accounting systems like Xero or MYOB
Communicative and proactive in meeting deadlines
Committed to ongoing professional education
To confirm a registration, you can check the TPB register here: 🔍 TPB Register Search
Know Their Scope: What a BAS Agent Can’t Do
It’s important to understand that BAS agents can’t provide broader tax or financial advice unless they are also registered tax agents. For example, they can’t:
Advise on company tax returns
Offer investment or financial planning advice
Handle fringe benefits tax or income tax matters
Always ensure you’re engaging the right professional for the right task.
Is It Time to Go for Gold?
If you’re spending more time on paperwork than profit, now is the time to outsource your BAS tasks. Engaging a registered BAS agent gives your business the solid foundation it needs to grow, stay compliant, and run smoothly.
If you think it’s time to engage a professional agent, get in touch, and let’s talk about how this can benefit your business and save you time and money.
