Superannuation Tax Shake-Up: What High-Balance Holders Need to Know Before 2026
Superannuation continues to be one of Australia’s most generous long-term wealth builders. But for those with very large balances, the rules may soon change. The Federal Government has outlined significant reforms — known as the Better Targeted Superannuation Concessions (BTSC) — designed to reshape how high-balance superannuation accounts are taxed.
Key Takeaways
The Federal Government has proposed new tax measures for individuals with super balances over $3 million.
These measures are not yet law and remain subject to consultation and parliamentary approval.
The proposal introduces two extra tax tiers on attributed taxable earnings, not on the entire super balance.
The Government proposes excluding unrealised gains, but final calculation rules have not been legislated.
Only a very small proportion of Australians (less than 0.5%) are expected to be affected.
Think of your super like a gold seam. Most Australians can keep mining without concern. But if your balance sits near or above the $3 million mark, a new tax tunnel may soon open beneath your feet.
Before you worry, it’s important to understand that these changes are proposed only. The ATO confirms they remain subject to legislation and are not in effect.
Why the Government Is Proposing New Tax Rules
The intent behind the reform is to ensure superannuation tax concessions are “better targeted” and not disproportionately benefiting individuals holding extremely large balances.
According to Treasury, less than 0.5% of Australians are expected to be affected at the $3m threshold, and just 0.1% above $10m.
The Government intends to apply extra tax to taxable earnings linked to an individual’s total super balance above $3 million. Importantly, this is not a tax on the balance itself.
1. Applying the tax to “taxable earnings” only
Earlier proposals included unrealised gains, but this was heavily criticised. The updated approach — as outlined in consultation papers — proposes to tax only realised taxable earnings. However, the ATO notes the methodology for attributing earnings to individual members is not finalised.
ATO: “Reporting requirements will be outlined after legislation progresses.”
2. A Two-Tier Proposed Structure
Industry consultation material (not ATO law) currently outlines:
Balance Portion
Proposed Extra Tax
Effective Total Tax
$3m–$10m
+15% on earnings
~30%
Over $10m
+25% on earnings
~40%
This structure could change before legislation is introduced. Source: Industry commentary (Ords, SuperGuide, Financial Services Council)
3. Indexation of thresholds
Consultation documents suggest thresholds may be indexed, but this is not confirmed in legislation.
4. Start date
The Government’s stated intention is commencement from 1 July 2026, but that is dependent on the bill passing well before then.
What’s Still Unknown or Unclear
Because legislation is not yet introduced, key details remain uncertain:
How taxable earnings will be attributed
The ATO notes super funds will need to calculate taxable earnings attributed to each affected member — but the formula does not yet exist.
This is especially important for:
SMSFs with illiquid assets
funds with property
funds with unlisted shares
pension-phase accounts
defined benefit interests
These complexities mean the actual impact may differ significantly between funds.
Examples: What It Could Look Like
Many advisers use hypothetical examples to give a sense of scale. These are not official ATO examples but are consistent with industry commentary.
Example – $4.5m Balance
If taxable earnings were $300,000 and one-third of the balance sits above $3m, the proportional earnings could attract an extra 15% tax (if legislated).
Example – $12.9m Balance
A portion of earnings would fall into Tier 1, and another into Tier 2. Tax could escalate progressively.
These examples are useful illustrations — but the actual numbers depend on the final legislation and the ATO’s attribution methodology.
What You Should Do Now
1. Review your total super balance
Get an early view of where you may sit by 2026.
2. Stress-test your SMSF or fund structure
Consider liquidity planning — especially if your fund holds property or unlisted assets.
3. Stay updated
These proposals have already changed once and may change again before reaching Parliament.
4. Seek advice tailored to your situation
Super strategies should not be reshaped on the basis of draft policy alone.
Final Thoughts
The superannuation tax shake-up is shaping up to be the biggest reform for high-balance holders in years — but so far, everything remains proposed, not final.
For most Australians, the news changes nothing. For those sitting on large retirement “gold lodes,” the key is to prepare early, stay informed, and avoid making big decisions until legislation is clear.
If your balance is close to or above $3 million, let us help you map out the smartest path forward. Contact DJ Grigg Financial today — protect your golden future with expert advice.
Making the Holidays Financially Stress-free: Your Guide to a Golden Season
The holiday season should feel like a well-earned strike of gold—not a scramble to cover expenses, staff leave and shifting customer behaviour. To help you enjoy a financially relaxed break, here’s a practical guide to staying in control—whether you’re a business owner or an employee looking to keep end of year spending on track.
Key Takeaways
Businesses must follow Fair Work rules when directing staff to take annual leave during shutdowns.
ATO payment plans can help with cash flow but attract interest and require strict compliance.
Holiday spending increases for many households and businesses, so planning ahead is essential.
Clear budgeting helps employees and business owners avoid festive-season financial stress.
Why Holiday Cash Flow Planning Matters
Without preparation, the holiday season can impact finances—both for businesses managing cash flow and for households navigating increased seasonal spending. Think of financial planning as panning for gold: slow, steady preparation uncovers the richest results.
Even if your business stays open, December and January rarely follow normal trading patterns. Customers change habits, suppliers shut down, and payment delays become common.
Meanwhile, your regular expenses continue, including:
Wages
Annual leave
Rent and utilities
Supplier invoices
ATO obligations (BAS, PAYG withholding, GST, etc.)
The Fair Work Ombudsman confirms that many businesses legally shut down over Christmas/New Year, but must comply with award or enterprise agreement rules before requiring staff to take leave.
3. Invoice Early and Finalise Work in Progress (WIP)
Many customers delay payments until mid-to-late January. Aim to:
Finalise jobs before shutdown
Invoice promptly
Follow up overdue invoices before Christmas
This supports your cash position during weeks when income may slow.
4. Increase Capacity Before the Break
Many sectors experience pre-holiday surges. Consider overtime, shift adjustments or temporary staff (within legal limits) to make the most of peak demand.
5. Stock Up Early — But Plan for Supplier Delays
It’s important to complete WIP before the break, but suppliers also shut down or reduce capacity over December/January.
Order materials early and confirm delivery timelines to avoid disruptions.
6. If Cash Is Tight, Know Your ATO Options
ATO payment plans allow businesses to pay tax debts over time, but with conditions:
Interest (GIC) continues to accrue until the debt is cleared.
You must meet all ongoing tax lodgement and payment obligations.
Defaulting on a plan may reduce future eligibility.
This option can help, but should be used strategically—not as a default solution.
7. Set a Personal Holiday Budget
Australians commonly increase spending in December and January on gifts, travel, dining and events. While exact figures vary by survey, studies consistently show holiday budgets stretch more than expected.
Encourage employees and business owners to:
Set a spending limit early
Avoid buy-now-pay-later traps
Track expenses weekly
This helps keep January free from financial regret.
8. Use January as a Fresh Start
CPA Australia regularly highlights that January is an ideal time for forecasting and resetting financial strategies.
The holiday period should sparkle—not strain your cash flow. If you need help with cash flow forecasting, budgeting, or navigating ATO payment arrangements, DJ Grigg Financial is ready to guide you.
Contact us today and let’s make this holiday season truly stress-free and golden.
Celebrate Smart: FBT and Tax Considerations for End-of-Year Parties and Gifts
When the end of the year approaches, business owners often look forward to hosting work parties and giving gifts to show appreciation to their teams. While these gestures foster camaraderie and recognise hard work, they come with tax obligations that should not be overlooked. Fringe Benefits Tax (FBT) is a key consideration when planning office parties and gifts. Knowing the rules can help you celebrate while staying tax-compliant.
What Is FBT and Why Does It Matter?
FBT is a tax employers pay on certain benefits provided to employees or their associates, such as family members. End-of-year parties and entertainment often fall under the FBT umbrella, which can catch businesses off guard. Understanding how FBT applies can save you from unexpected tax bills while ensuring your celebrations remain cost-effective.
FBT and Parties: The Essentials
When planning your office parties, keep these key points in mind:
1. Location and Attendees
On-premises celebrations: FBT is generally not applicable if the party is held at your workplace during working hours and is for employees only.
Off-site events or family inclusions: Hosting off-site or inviting associates (e.g., partners) may attract FBT unless costs are under $300 per person and qualify as minor benefits.
2. Entertainment and Gifts
Gifts under $300: These can be FBT-exempt if they meet the criteria for minor benefits.
Entertainment gifts: Items such as concert tickets are considered entertainment and are subject to FBT rules even if under $300.
3. Client Involvement
Costs for clients attending your event are not subject to FBT. Inviting clients can lower the taxable portion of your event.
Calculating FBT on Entertainment
The Australian Tax Office (ATO) provides several methods to calculate the taxable value of entertainment. Choose the most suitable option for your business:
Actual Value Method: Calculate the actual cost for employees and their associates, excluding costs for non-employees.
50:50 Split Method: Allocate 50% of all entertainment costs (including employees, clients, and others) as taxable.
Meal Entertainment Valuation: Track meal costs over 12 weeks or use a 50:50 split for meals provided without additional recreational activities.
Each method has advantages depending on your event’s nature and attendees.
Important Tax Compliance Considerations
1. Recordkeeping
Accurate records of expenses, recipients, and calculation methods are essential. This ensures compliance and supports your claims in case of an audit.
2. Tax Deductions and GST Credits
Events exempt from FBT typically do not qualify for tax deductions or GST credits.
Non-FBT-exempt costs, such as client gifts, may still be tax-deductible, provided they are non-entertainment in nature.
3. Gifts to Clients
Client gifts are not subject to FBT but can often be deducted as a business expense. Ensure the gift is practical rather than entertainment-focused.
Expert Insights on FBT and Celebrations
Businesses can maximise tax efficiency by strategically planning for end-of-year celebrations and by balancing the type and cost of gifts and entertainment provided to employees and clients.
Quick Tips to Avoid FBT on End-of-Year Parties and Gifts
Choose the right venue: On-premises celebrations during work hours are less likely to attract FBT.
Track expenses: Maintain detailed records of costs and attendees to simplify FBT calculations.
Keep gifts non-entertainment-based: Practical gifts under $300 are often exempt from FBT.
Consult a tax professional: When in doubt, seek expert guidance to ensure compliance.
Celebrating Without the Stress
Planning an end-of-year party or choosing thoughtful gifts doesn’t have to come with tax headaches. By understanding the rules around FBT and applying smart strategies, you can celebrate the season with your team while avoiding unexpected tax liabilities.
For tailored advice on fringe benefits tax and parties, entertainment, and gifts, consult a tax expert. Celebrate smart, while staying tax-compliant!
Accessing Your Super for Medical Treatment or Financial Hardship: Digging into the Gold Safely
Your superannuation is like a vault of gold coins — carefully stored to fund your future. But sometimes, life’s challenges strike before retirement. If you’re struggling financially or need urgent medical treatment, you might be wondering if it’s possible to access your super early.
While it can be done, the rules are strict. Understanding them is crucial to avoid penalties — and to protect your golden nest egg.
Key Takeaways
Early access to super is tightly restricted and only allowed under specific ATO-approved conditions.
You may apply for financial hardship through your super fund or for compassionate grounds via the ATO.
Medical access requires proof that treatment is essential and not available through the public system.
Early withdrawals reduce future retirement savings — your “gold reserve” shrinks permanently.
Two Legal Paths to Early Access
The Australian Taxation Office (ATO) and Services Australia outline two main situations where early access may be allowed:
1. Severe Financial Hardship
You can apply directly through your super fund if:
You’ve been receiving an eligible Commonwealth income support payment continuously for at least 26 weeks; and
You cannot meet reasonable and immediate living expenses (like rent, bills, or groceries).
Each super fund may set its own rules. In many cases, the fund may allow access to an amount up to around $10,000, but this can vary. It’s not a legislated cap — so always check with your fund before applying.
2. Compassionate Grounds
You apply directly to the ATO if you need to access super for:
Medical treatment or transport for yourself or a dependant;
Preventing foreclosure or the forced sale of your home;
Modifying your home or vehicle due to severe disability;
Palliative care; or
Funeral expenses for a dependant.
For medical treatment, the ATO requires that:
The illness or injury is life-threatening, or causes acute or chronic pain or mental illness;
The treatment is not readily available through the public health system; and
If approved, the ATO provides you with a release approval letter, which you then submit to your super fund to process the payment.
Guarding Against Dodgy “Gold Diggers”
The ATO and the Australian Health Practitioner Regulation Agency (AHPRA) have warned against unauthorised or unethical providers who encourage people to use super for cosmetic procedures — such as dental or appearance-based treatments that don’t meet eligibility requirements.
You should never:
Share your MyGov login details with third parties;
Allow a clinic or provider to lodge a super application on your behalf; or
Make false statements on applications.
Doing so may lead to serious penalties or disqualification.
The True Cost of Cracking Open Your Vault
Withdrawing your super early can ease short-term pressure — but the long-term cost is significant.
For example, MoneySmart estimates that taking $10,000 from your super at age 30 could reduce your retirement balance by more than $21,000.
Think of your super as gold buried for the future. Removing some now means your retirement shine will be a little duller later.
Taxes and Implications
If you withdraw super early under compassionate grounds, it’s taxed like a super lump sum, which may reduce the amount you receive.
Withdrawals under financial hardship are also subject to normal superannuation tax rules. Consulting a tax professional can help you understand the impact on your income and long-term balance.
Gather required documentation (medical reports, income support proof, or mortgage details).
Apply through the correct channel — ATO for compassionate release, super fund for hardship.
Seek professional financial advice before making the final decision.
Remember: early access is meant as a last resort, not an alternative income source.
Final Thoughts: Protecting Your Golden Future
Accessing your super for medical or financial reasons can be a lifeline when times get tough. But it’s important to tread carefully — the ATO enforces these rules to protect your retirement savings, not to make life harder.
If you’re considering an early release, think of it as dipping into your future gold reserve. Sometimes it’s necessary — but every coin you take now is one less shining in your retirement vault.
Need Professional Guidance?
If you’re unsure whether you qualify for early access to your super, DJ Grigg Financial can help. Our experts can assess your situation, explain your options, and guide you through the correct process — so you make the gold-smart choice.
Contact us today to protect your future wealth while handling today’s challenges.
With payday super coming, it’s time to turn compliance into gold. Prepare your systems now to stay ahead of the 2026 reforms.
Key Takeaways
From 1 July 2026, employers will need to pay superannuation within seven business days of each payday, instead of quarterly. (ATO)
The Small Business Superannuation Clearing House (SBSCH) will close — no new registrations after 1 October 2025, and the service ends 30 June 2026. (ATO)
The reforms are not yet law, but are expected to take effect from 1 July 2026 once passed by Parliament.
Early preparation will help you manage cash-flow and system upgrades — DJ Grigg Financial recommends operating as if payday super is already here.
What Is Payday Super?
‘Payday Super’ is a reform to the Superannuation Guarantee (SG) system that will require employers to pay employee super contributions in line with pay cycles, rather than quarterly.
Currently, SG contributions can be paid up to 28 days after each quarter ends. Under the new rules, employers will need to ensure super contributions reach the employee’s fund within seven business days after payday (also called the qualifying earnings (QE) date). – Treasury Fact Sheet
This reform aims to modernise how super is paid, make compliance easier through enhanced payroll reporting, and strengthen employee retirement outcomes.
Why Is the Government Making This Change?
Unpaid or late super is a major issue. According to government and ATO data, Australian employees lose billions of dollars in unpaid superannuation each year — estimates range between $3.4 billion and $5.2 billion. (The Guardian, 2024)
By aligning super payments with payroll, the government intends to:
Reduce unpaid and delayed super obligations.
Improve compliance transparency using Single Touch Payroll (STP) data.
Enhance employees’ retirement savings through more frequent compounding.
As modelling from Hayes Knight Accountants notes, “a 25-year-old earning a median income could be about 1.5% better off at retirement if super is paid fortnightly instead of quarterly.”
The Impact on Business Owners
1. Cash-Flow Adjustments
Quarterly super payments have long given businesses breathing room. Under payday super, that buffer disappears. Each pay run will now require employers to fund wages and super contributions within days.
This shift means businesses must review:
Cash-flow forecasts — to ensure consistent liquidity.
Payroll budgeting — to cover super payments every pay cycle.
Timing of incoming payments — to align receipts with outgoing super obligations.
While this might initially tighten cash-flow, it will prevent SG liabilities from piling up — a benefit if your business faces seasonal or unpredictable revenue.
2. Closure of the ATO Small Business Superannuation Clearing House (SBSCH)
If you currently use the free ATO clearing house, note these key dates:
1 October 2025 – No new business registrations.
30 June 2026 – Last day of use for existing users.
1 July 2026 – Service permanently closed.
You’ll need to find an alternative method for paying super. Options include:
Payroll software with built-in super payments (e.g., Xero Auto Super, MYOB PaySuper).
Super-fund clearing houses such as AustralianSuper’s QuickSuper.
Commercial providers like SuperChoice or ClickSuper.
Each solution differs in cost, integration, and automation. Payroll software solutions are often the simplest, as they integrate directly with your pay runs and Single Touch Payroll (STP) reporting.
3. Payroll and STP System Updates
To comply, employers will need payroll systems that can:
Identify the qualifying earnings (QE) day – the date the employee’s SG liability arises.
Transmit SG data through updated STP channels.
Initiate payments that reach funds within seven business days.
Most modern payroll software will update automatically, but small businesses should confirm capabilities with their provider well before 2026.
4. Penalties for Late or Unpaid Super
Existing Super Guarantee Charge (SGC) penalties remain severe — including 10 % interest and $20 per-employee administrative fees. These payments are not tax-deductible.
Under payday super, enforcement will be faster and more data-driven. However, according to the ATO’s draft compliance guideline (PCG 2025/D5), the first year will focus on education and support for employers making genuine efforts to comply.
Still, chronic non-compliance can lead to significant fines — potentially up to 50 % of unpaid SG amounts once enforcement escalates. Early compliance is the best protection.
How to Prepare Now
Although payday super isn’t yet law, waiting until 2026 could cause unnecessary stress and cash-flow strain. DJ Grigg Financial recommends you operate as if the changes are already in place. Here’s how:
Audit your payroll systems – Check whether your current software can process super payments every pay cycle and confirm compatibility with clearing houses.
Model your cash-flow – Identify how paying super each pay run will affect liquidity and budget accordingly.
Select an alternative clearing solution – Research your best option now so there’s no last-minute scramble before the SBSCH closes.
Train your team – Ensure HR and payroll staff understand the new requirements and timeframes.
Seek professional advice – Consult your accountant or adviser to align super processes with your broader business strategy.
Why Acting Early Turns Change into Opportunity
Payday super isn’t just a compliance issue — it’s a chance to modernise your systems and strengthen employee trust. Consistent super payments demonstrate reliability and professionalism. For many employers, it’s also an opportunity to improve payroll accuracy and real-time financial visibility.
Think of it as refining your business operations into a “gold-standard” system — one that glitters with transparency, efficiency, and compliance confidence.
The Bottom Line
The introduction of payday super will reshape how employers handle superannuation. Although the laws are still before Parliament, the timeline is clear and fast approaching. Failing to prepare could expose your business to penalties, administrative headaches, and cash-flow crunches.
At DJ Grigg Financial, our expert recommendation is simple: start now. Operate as if payday super is already here — review your systems, plan your cash-flow, and test new processes before 2026. That way, when the reforms take effect, your business will already shine like gold.
Need help preparing? Contact DJ Grigg Financial today for expert advice and tailored support to make your payday super transition smooth and compliant.
Your Business Development and Us: Partnering to Unearth Lasting Gold
Starting a business is exciting, but launching is only the first strike of gold. The real challenge is sustaining growth — refining processes, building resilience, and uncovering new opportunities year after year. That’s where a business development partner is invaluable.
Key Takeaways
Nearly half of Australian startups fail within four years (ABS). Strong business development strategies improve survival rates.
Business development covers strategy, marketing, partnerships, finances, and innovation — not just sales.
Expert advice helps align growth goals with financial capacity, secure funding, and measure progress.
With the right partner, your first strike of gold can become a lasting legacy.
Business development (BD) is the engine that helps startups move from early survival to long-term success. With the right strategies and support, you can transform your business from a gold strike into a golden legacy.
Why Business Development Matters
Business development is more than just sales. It includes strategy, marketing, partnerships, financial management, and innovation. Done well, it aligns every part of your business toward growth.
According to the Australian Bureau of Statistics, about 48% of new Australian businesses fail within four years, and only 77% make it through their first anniversary (ABS via Inside Small Business). Many closures are linked to a lack of planning and sustainable growth strategies.
Expert Insight: “You need a business plan to start, grow or manage your business effectively. It defines your objectives, maps out how you’ll achieve your goals, and helps you identify and manage possible risks.” (Business.gov.au)
Key Areas of Business Development
Like a prospector’s map, a strong BD strategy gives you direction. Here are five critical areas:
1. Strategy and Planning
A clear roadmap keeps your focus sharp. Regularly review your business plan to stay aligned with changing market conditions.
2. Marketing and Sales
Consistent marketing ensures customers know who you are. Align sales processes with customer needs to build trust and loyalty.
3. Partnerships and Networking
Partnerships open doors to new markets, expertise, and stronger supply chains. Just like miners working together, collaboration uncovers more opportunities.
4. Financial Management
Growth demands disciplined financial control. Tracking KPIs such as cash flow, budgets, and margins ensures you don’t run out of resources.
5. Innovation and Improvement
Markets evolve quickly. Regularly review products, services, and systems. Small improvements can lead to new revenue streams.
How Expert Advisors Help
Business development is complex, but you don’t have to dig alone. Advisors can:
Identify risks and opportunities.
Align strategy with financial capacity.
Benchmark performance against industry standards.
Guide scaling, hiring, and investment decisions.
Having a trusted partner is like working with an experienced prospector — they know where to dig and how to refine the ore.
Our Role in Your Business Development
At DJ Grigg Financial, we go beyond accounting. We work with you to strengthen strategy and support sustainable growth:
Clarifying goals: We help define strategic aims and set realistic, measurable targets.
Creating a roadmap: We translate your BD goals into actionable plans with budgets and timelines.
Securing funding: We connect you with banks, lenders, and finance specialists to fuel expansion.
Tracking performance: We design reporting systems to measure progress using project management or CRM tools.
Common Challenges in Business Development
Many startups stumble when they:
Chase too many ideas and lose focus.
Expand without proper financial discipline.
Fail to adapt to changing customer needs.
Overlook workplace culture and employee engagement.
With the right guidance, these challenges can be turned into opportunities for growth.
Striking Gold With the Right Partner
Starting a business is like striking gold. But sustaining that discovery requires planning, persistence, and expert support. Business development ensures your startup keeps refining, expanding, and building value.
At DJ Grigg Financial, we partner with you beyond startup — guiding strategy, strengthening finances, and helping you achieve lasting success.
Ready to move beyond survival and build a lasting business legacy?
