ATO’s Small Business Focus Areas for 2025: Stay Compliant and Secure Your Business Future
The Australian Taxation Office (ATO) has released its key focus areas for small businesses in 2025. Understanding these priorities can help you avoid costly mistakes and ensure your business stays on the right side of tax compliance.
Why Staying ATO-Compliant is Crucial
Tax compliance isn’t just about ticking boxes—it’s about securing the financial health of your business. Non-compliance can lead to audits, penalties, and even legal action. By understanding the ATO’s latest focus areas, you can take proactive steps to protect your business and financial future.
Key ATO Focus Areas for Small Businesses in 2025
1. Business Income is Not Personal Income
Your business’s money and assets are not personal funds. The ATO is paying close attention to business owners who use company funds for personal expenses without proper documentation.
Common mistakes include:
Using business accounts to pay personal bills without recording them properly.
Taking out loans from the business without following Division 7A rules, which can result in them being treated as dividends by the ATO.
Not declaring interest on business loans to owners.
The ATO provides clear guidance on this issue, which you can review in detail here.
Expert Tip: The ATO states that “Keeping business and personal finances separate isn’t just good practice—it’s essential for compliance.”
2. Claiming Deductions and Concessions Correctly
Small businesses often claim deductions and concessions, but the ATO is watching for errors and misreporting.
Areas under scrutiny:
Incorrect claims for small business CGT concessions.
Overstating deductions for non-commercial business losses.
Claiming expenses that are not business-related.
Incorrect GST registration and reporting, particularly for ride-sourcing and taxi services.
Before claiming, ensure you meet all eligibility criteria. A simple mistake could lead to amended assessments, repayments, and penalties. The ATO provides further information on their Small Business Focus Areas page.
3. Operating Within the Tax System
The ATO is cracking down on businesses that underreport income, over-claim expenses, or engage in risky tax practices.
Behaviours that raise red flags:
Not declaring all cash income.
Poor record-keeping that leads to inaccurate reporting.
Using business funds for personal expenses without proper documentation.
Not lodging returns and paying tax on time.
Employers paying cash wages to avoid tax and superannuation obligations.
If the ATO identifies issues, they may contact you or your tax professional. In severe cases, businesses may face audits, penalties, or legal action. You can learn more about what attracts ATO scrutiny here.
How the ATO Supports Small Business Compliance
The ATO provides several resources to help small businesses meet their obligations, including:
Educational materials and self-paced courses.
Webinars and tailored support programs.
Guidance on voluntary disclosures if errors are identified.
If you receive communication from the ATO, don’t ignore it. Engaging early can help prevent more serious consequences.
Steps to Protect Your Business
If you’re concerned about your tax position, take action now:
Seek Professional Advice – Speak to a registered tax accountant to ensure you’re meeting all ATO requirements.
Correct Mistakes Early – If you identify errors, request an amendment or make a voluntary disclosure to the ATO.
Improve Record-Keeping – Ensure financial records are accurate and up to date.
Report Suspicious Activity – If you suspect tax evasion, report it confidentially to the ATO.
Secure Your Business Future – Talk to Us Today!
Staying compliant with ATO regulations ensures your business remains financially strong and free from penalties. If you need expert guidance, DJ Grigg Financial is here to help. Contact us today for professional tax advice and ensure your business stays on the right track.
Exploring Compassionate Early Release of Super: What You Need to Know
Superannuation is meant to secure your financial future in retirement. However, life’s challenges can sometimes demand immediate solutions. For Australians facing genuine hardship, the compassionate early release of super offers a critical lifeline. This option enables individuals to access their superannuation to address urgent, unavoidable expenses.
In 2023–2024, Australians withdrew a staggering $1.04 billion from their super on compassionate grounds, highlighting its significance. But what exactly does the process involve, and who qualifies? Here’s a detailed guide to help you navigate this potentially life-changing option.
What Is Compassionate Early Release of Super?
The compassionate release of super allows access to your superannuation savings under specific conditions. These funds can help with unpaid expenses when all other avenues have been exhausted. The Australian Taxation Office (ATO) oversees these applications, ensuring they meet strict eligibility criteria.
This scheme covers a range of situations, including:
Preventing the foreclosure or forced sale of your home.
Funding medical treatment or transport for you or your dependants.
Modifying a home or vehicle for severe disability needs.
Covering palliative care costs for terminal illness.
Paying funeral or burial expenses for dependants.
Eligibility for Preventing Foreclosure or Forced Sale of Your Home
One of the most common reasons for early super access is to prevent losing your home. To qualify, you must meet these four key conditions:
The property must be your principal place of residence.
You must be legally responsible for the mortgage repayments or council rates.
Written advice from your lender, council, or enforcement officer must confirm foreclosure or sale is imminent.
You must demonstrate an inability to cover the required amount through other means.
The amount you can withdraw is limited to what’s deemed necessary. Typically, this includes three months of repayments plus 12 months of interest.
How to Apply for Early Release Super on Compassionate Grounds
Contact Your Super Fund First Before applying to the ATO, check with your super fund. They will confirm if your fund allows early release under compassionate grounds and ensure you have enough savings to withdraw.
Gather Required Documents For foreclosure-related claims, this includes legal notices from your lender, proof of residence, and evidence of your financial situation.
Submit Your Application to the ATO Applications are made online through the ATO. Once approved, the ATO will notify your super fund, who will release the funds.
A Financial Lifeline, Not a First Resort
Accessing your super early can provide relief during difficult times, but it comes at a cost. Withdrawals are taxed, and you lose the compounding growth of those savings, potentially impacting your retirement plans. Financial expert Sarah Collins advises, “Superannuation is your safety net for retirement. Exhaust all other options before considering early access.”
In addition, withdrawing super early may affect any insurance cover linked to your super account. Always consult with your super fund to understand these implications.
Why Compassionate Release Matters
The compassionate early release of super offers hope when life throws curveballs. For example:
John, a 45-year-old Melbourne resident, accessed his super to prevent his family home’s foreclosure after job loss. “It was a lifeline I didn’t expect,” John shares. “It saved my home and gave me time to get back on my feet.”
Balancing Short-Term Needs with Long-Term Security
In 2023–2024, the ATO approved over a billion dollars in super withdrawals on compassionate grounds, reflecting the significant demand for this option. However, this isn’t a decision to take lightly. Consider alternative support, like negotiating with creditors, seeking financial counselling, or government assistance, before applying for early release super.
For those who meet the criteria and have no other options, compassionate release can be a financial lifeline. Understanding the process and seeking expert advice ensures you make an informed decision that balances immediate needs with future security.
Take Action Today
If you’re considering early release super on compassionate grounds, start by consulting your super fund and exploring your eligibility. Remember, this option exists to provide crucial support in times of hardship, helping Australians navigate life’s toughest challenges.
Boost Your Super with Salary Sacrifice: Turn Today’s Income into Tomorrow’s Gold
When it comes to building long-term wealth, your superannuation can be a goldmine. Yet many Australians miss opportunities to grow their retirement savings faster and more tax-effectively.
One strategy worth considering is salary sacrifice into super. By directing part of your pre-tax salary into your super fund, you can potentially reduce your tax bill while increasing your retirement nest egg.
With superannuation rules changing from 1 July 2026 and contribution caps increasing, now is the perfect time to review whether salary sacrificing could help you achieve your financial goals.
Key Takeaways
Salary sacrifice allows you to contribute pre-tax income directly into your super fund.
Salary sacrificed super contributions are generally taxed at only 15%, which may be lower than your personal tax rate.
The concessional contributions cap increases to $32,500 from 1 July 2026.
Salary sacrifice contributions can help eligible first-home buyers save through the First Home Super Saver Scheme.
From 1 July 2026, new Payday Super rules will require employers to pay super at the same time as wages.
Starting early can significantly increase your retirement savings through compound growth.
What Is Salary Sacrifice?
Salary sacrifice is an arrangement between you and your employer where you agree to receive less take-home pay in exchange for additional contributions into your super fund.
Instead of receiving all your income as salary and wages, part of your pre-tax income is directed into superannuation.
These payments are known as salary sacrificed super contributions and count towards your concessional contributions cap.
Example:
Suppose your annual salary is $90,000.
You choose to salary sacrifice $5,000 into your super fund.
Rather than paying your marginal tax rate on that income, the contribution is generally taxed at just 15% inside super.
This means more of your money can stay invested and working towards your retirement goals.
Think of it like refining gold. Instead of allowing tax to erode part of your earnings today, you’re preserving more value and placing it into a long-term investment designed to grow over time.
What Are the Benefits of Salary Sacrificing Into Super?
1. Potential Tax Savings
One of the biggest benefits of salary sacrificing into super is the potential tax advantage.
For many employees earning above $45,000 annually, their marginal tax rate is higher than the 15% contributions tax applied to concessional super contributions.
This difference can leave more money invested for your future.
2. Accelerate Your Retirement Savings
The earlier you start contributing extra to super, the more time compound earnings have to work.
Even modest contributions made consistently over decades can create substantial long-term wealth.
3. Reduce Your Taxable Income
Salary sacrificing reduces your assessable income, which may help you:
Lower your overall tax bill
Reduce Medicare Levy exposure
Potentially qualify for certain government concessions or benefits
4. Support Your First Home Purchase
Under the First Home Super Saver Scheme (FHSSS), eligible Australians may be able to access voluntary super contributions to help fund their first home deposit.
Currently, eligible participants can access up to $50,000 of voluntary contributions.
5. Convenient and Automatic
Once established, your employer handles the contributions automatically.
This “set and forget” approach makes building wealth simpler and more disciplined.
New From 1 July 2026: Higher Contribution Caps
A significant superannuation change takes effect from 1 July 2026.
The concessional contributions cap will increase from $30,000 to $32,500 per year.
This cap includes:
Employer Super Guarantee contributions
Salary sacrificed super contributions
Personal deductible super contributions
The increase creates additional opportunities for Australians to boost their retirement savings tax-effectively.
Payday Super: Another Important Change
From 1 July 2026, employers will generally be required to pay Super Guarantee contributions at the same time they pay wages.
The Australian Government estimates this reform could leave a median-income 25-year-old approximately $6,000 better off at retirement through earlier investment of super contributions.
According to ATO Deputy Commissioner Emma Rosenzweig:
“Simply put, Payday Super is about paying super on payday.”
This change is designed to improve transparency, reduce unpaid super, and help Australians grow their retirement savings sooner.
Is Salary Sacrifice Right for Everyone?
Not necessarily.
While salary sacrifice can be highly effective, it’s important to consider your personal circumstances.
You’re comfortable locking funds away until retirement.
You May Need to Be Cautious If:
You’re struggling with day-to-day living costs.
You’re aggressively paying down non-deductible debt.
You need access to your money before retirement.
Your income places you in a lower tax bracket where tax savings may be limited.
Remember that super is generally preserved until retirement or another condition of release is met.
Maintaining an emergency fund outside super remains essential.
Watch Your Contribution Caps
Exceeding your concessional contributions cap can lead to additional tax consequences.
If your total concessional contributions exceed the annual cap, the excess amount may be included in your assessable income and taxed at your marginal rate, less a tax offset.
Higher-income earners should also be aware of Division 293 tax, which may apply when income plus concessional contributions exceed $250,000.
Before making significant contributions, it’s wise to review your contribution history and obtain professional advice.
How to Get Started
If salary sacrifice aligns with your financial goals:
Step 1: Review Your Budget
Determine how much you can comfortably contribute without affecting your lifestyle or financial commitments.
Step 2: Talk to Your Employer
Ask whether they offer salary sacrifice arrangements and complete any required documentation.
Step 3: Monitor Your Contributions
Regularly check your super fund and payslips to ensure contributions are being made correctly.
Step 4: Seek Professional Advice
A tailored strategy can help you maximise benefits while avoiding unintended tax consequences.
Build Your Golden Future Today
Salary sacrifice is one of the simplest and most effective ways to grow your superannuation while potentially reducing tax. With higher contribution caps from 1 July 2026 and the introduction of Payday Super, there has never been a better time to review your retirement strategy.
Like adding another gold coin to your vault each pay cycle, small, consistent contributions can accumulate into substantial wealth over time.
If you’d like to explore whether salary sacrificing into super is right for you, contact the team at DJ Grigg Financial. We’ll help you understand the opportunities, avoid costly mistakes, and develop a strategy tailored to your financial goals.
Disclaimer
This article contains general information only and does not take into account your personal objectives, financial situation or needs. Superannuation and taxation outcomes depend on individual circumstances and may change over time.Before acting on any strategy, consider obtaining personal financial advice and taxation advice relevant to your situation.
Is Your Business BAS-Ready? Stay Ahead of Deadlines and Avoid Stress
Running a business means wearing many hats, and staying on top of your Business Activity Statement (BAS) is one of them. If your business is registered for GST, lodging your BAS on time is a must. But being BAS-ready doesn’t have to be stressful—it’s all about preparation and planning. So, is your business ready to meet its BAS obligations?
Here’s how to ensure you meet deadlines, stay compliant with the ATO, and keep your business running smoothly.
What is a Business Activity Statement (BAS)?
The BAS is a form issued by the Australian Taxation Office (ATO) for businesses registered for GST. It helps businesses report and pay obligations such as:
Goods and Services Tax (GST)
Pay as You Go (PAYG) instalments
PAYG withholding tax (for employees)
Other taxes like fuel tax credits, luxury car tax (LCT), and fringe benefits tax (FBT) instalments
Your BAS must be lodged monthly, quarterly, or annually, depending on your business turnover and GST reporting preference.
When are BAS Reports Due?
Understanding BAS due dates is critical to avoid penalties:
Monthly BAS: Generally due by the 21st of the following month (e.g., September BAS is due by 21 October).
Quarterly BAS: Covering July–September (Q1), the due date is 28 October.
Annual GST: Generally due by 31 October each year.
If you’re using a registered tax or BAS agent, you may qualify for extended deadlines. It’s worth leveraging this if BAS management adds unnecessary stress.
Why Being BAS-Ready Matters
Failing to lodge or pay your BAS on time can lead to fines, interest charges, and additional scrutiny from the ATO. Staying BAS-ready helps your business:
Maintain Cash Flow: Accurate BAS reporting ensures you manage payments without unexpected surprises.
Stay Compliant: Lodging on time keeps you in good standing with the ATO.
Avoid Penalties: Late lodgements can attract fines of up to $330 per 28 days overdue.
Steps to Ensure Your Business is BAS-Ready
Keep Accurate Records Maintain clear records of all transactions, including sales, expenses, wages, and taxes. Use reliable accounting software that tracks everything in real time.
Reconcile Your Accounts Regularly reconcile your bank statements with sales records to ensure accuracy. Inconsistent records can cause costly errors during BAS reporting.
Know Your GST Accounting Method Using the correct method is critical for accuracy. Your business must use either:
The cash method (report GST when payment is received or made) orThe accrual method (report GST when an invoice is issued).
Use the Right Tools Lodging BAS is easier with digital tools. These platforms simplify lodgement and payment, often offering extra time to lodge:
ATO Online Services for BusinessBusiness accounting software with Standard Business Reporting (SBR) capabilities
Engage a Registered BAS Agent A BAS agent can save you time, ensure accuracy, and manage lodgement deadlines. According to the Tax Practitioners Board, businesses using agents experience fewer errors and missed deadlines.
Store Your Tax Records Properly Keep all tax invoices, GST records, and logbooks for at least five years. Proper record-keeping is your safety net during audits.
Lodge Even If You Have Nothing to Report If your business has no activity for a BAS period, you must still lodge a nil BAS. It’s a quick process online or over the phone via the ATO’s automated service.
Expert Tip: BAS can sneak up on busy business owners, especially during high-turnover periods. Set aside funds throughout the reporting period to cover GST and other obligations. This proactive approach helps you avoid last-minute cash flow issues.
Get Your BAS Right the First Time
Meeting your BAS obligations doesn’t have to be overwhelming. By keeping records up to date, using digital tools, and seeking professional help when needed, your business can stay ATO-compliant and stress-free.
So, is your business BAS-ready? Tick off the essentials and ensure you’re prepared well before the next deadline hits.
For BAS lodgement support, speak with a registered tax or BAS agent today—they’ll help you streamline the process and keep your business on track.
Safeguard Your Business: The Essential Guide to IT and Cyber Security Policies and Procedures
In today’s digital age, businesses rely heavily on technology to operate efficiently. From computers and emails to online transactions and remote work, IT is at the heart of modern business operations. With these benefits come significant risks, especially in the realm of cyber security. This is why having comprehensive IT policies and procedures is crucial to protecting your business.
Whether you’re a small business owner or manage a growing enterprise, the importance of IT policies cannot be overstated. Let’s explore why these policies matter and how to create an effective manual for your business.
Why IT and Cyber Security Policies and Procedures Matter
Having robust IT policies and procedures in place offers a range of benefits that extend far beyond day-to-day operations. Here’s why every business should prioritise them:
1. Protect Your Business from Cyber Security Threats
Cyber attacks are on the rise, targeting businesses of all sizes. According to the Australian Cyber Security Centre (ACSC), cyber crime cost Australian businesses over $33 billion in 2020. A well-crafted IT policy can mitigate these risks by setting clear rules around the use of technology and online conduct.
2. Ensure Consistency in Decision-Making
Without clear IT guidelines, employees may make inconsistent or risky decisions when handling sensitive data. By creating a policy manual, you provide a framework that ensures every employee is aligned with your business’s security goals.
3. Define Employee Responsibilities
IT policies outline what is expected of employees when using company devices, accessing the internet, or handling confidential information. These guidelines create accountability and reduce the likelihood of disputes or misunderstandings.
4. Add Professionalism to Your Business
A documented IT policy demonstrates that your business takes cyber security seriously. It adds a layer of professionalism, showing clients and partners that you prioritise secure and responsible IT practices.
5. Minimise Disputes and Legal Risks
Clear IT policies can prevent issues such as data breaches, misuse of company devices, or inappropriate online behaviour. Having a written record of your business’s IT rules can protect you from costly disputes or legal challenges.
How to Write an IT and Cyber Security Policies and Procedures Manual
Writing IT policies may seem like a daunting task, but it doesn’t have to be. By following a structured approach, you can create a document that meets your business’s unique needs while ensuring compliance with industry standards.
1. Start with a Template
Business Victoria offers a comprehensive IT policies and procedures template designed to help businesses outline their rules and processes. The template includes essential sections such as:
Bring Your Own Device (BYOD) Policy: Outlines rules for using personal devices for work to ensure security and productivity.
Security Policy: Ensures that all devices are password-protected and regularly backed up.
Electronic Transactions Policy: Safeguards eCommerce operations and protects customer information.
Emergency Management Policy: Establishes protocols for responding to cyber attacks, system failures, or other IT emergencies.
This template is a great starting point, but you’ll want to customise it to reflect your business’s specific needs.
2. Involve Key Stakeholders
Your IT policies should reflect input from different areas of your business, including management, IT professionals, and legal advisors. By involving key stakeholders, you ensure that your policies are comprehensive and meet your business’s operational and legal requirements.
3. Focus on Clear, Simple Language
The goal of an IT policy is to ensure everyone understands their responsibilities. Avoid technical jargon and use simple language that is easy for all employees to understand. This ensures that everyone, from entry-level employees to senior executives, can follow the guidelines.
4. Outline Specific Policies for Cyber Security
With cyber threats evolving daily, it’s important to have a clear cyber security policy. This should include rules for:
Password Management: Require strong, unique passwords for all devices and systems.
Data Protection: Outline how sensitive data should be handled, stored, and shared.
Access Control: Limit access to important systems or data based on employees’ roles.
Incident Response: Provide a step-by-step guide for reporting and handling security breaches.
According to the 2023 Cyber Threat Report by Cybersecurity Ventures, cyber crime is expected to cost the world $10.5 trillion annually by 2025. Businesses that lack proper cyber security measures are highly vulnerable.
5. Train Employees Regularly
Having an IT policy is only effective if employees are familiar with it. Make IT training part of your onboarding process and conduct regular refresher courses. These should cover the most important aspects of your IT policy, such as password protocols, secure browsing practices, and how to report suspicious activity.
6. Review and Update Your Policies Regularly
Technology and cyber threats are constantly evolving, so your IT policies need to evolve as well. Set a schedule to review and update your policies at least once a year, or whenever there are major changes in technology or legal regulations.
Common IT and Cyber Security Policy Components
Every business’s IT and Cyber Security policies will vary, but certain key components should be included in any comprehensive manual. Here are some essential sections to consider:
1. Acceptable Use Policy
This policy sets rules around the appropriate use of company technology, including email, internet, and devices. It defines what is and isn’t acceptable in terms of online behaviour, software downloads, and personal use of company equipment.
2. Bring Your Own Device (BYOD) Policy
As remote work becomes more common, many employees use personal devices for work purposes. A BYOD policy outlines how these devices can be used securely, ensuring that business data is protected.
3. Data Retention Policy
This policy outlines how long data should be stored and when it should be deleted. It helps businesses comply with privacy laws and reduces the risk of data breaches.
4. Social Media Policy
A social media policy sets guidelines for how employees should represent the company on social media platforms. It ensures that employees do not share confidential information or post inappropriate content.
5. Remote Work Policy
With remote work on the rise, it’s crucial to have a policy that outlines how employees should access company systems securely from home or other locations. This includes using virtual private networks (VPNs) and ensuring devices used remotely meet security standards.
The Role of Business Victoria in Supporting IT Policy Development
For businesses looking to create or update their IT policies, Business Victoria provides invaluable resources. Their templates and guides help businesses develop effective policies that comply with Australian regulations and protect against cyber threats. These resources are designed to make the process easier for business owners who may not have extensive IT knowledge.
Additionally, Business Victoria offers workshops, webinars, and online resources focused on cyber security and IT policy development, helping businesses stay up-to-date with best practices and emerging threats.
Conclusion
In an era where cyber security threats are ever-present, having IT policies and procedures is no longer optional—it’s essential. These policies protect your business from data breaches, ensure consistency in decision-making, and provide employees with clear guidelines on responsible IT use.
By using resources like Business Victoria’s templates, involving key stakeholders, and regularly updating your policies, you can safeguard your business from IT threats and demonstrate a commitment to professionalism and security. Take the time to develop comprehensive IT policies today, and protect your business for the future.
Remember, creating an IT policy may take effort upfront, but the long-term benefits far outweigh the initial work.
Protect your business by developing a comprehensive IT and Cyber Security policy today. For more information on writing IT policies and procedures, visit Business Victoria.
