How to Improve Your Procurement Spending: Turn Costs into Gold
Procurement is one of the largest expenses for most businesses. Whether you’re buying materials, services, or technology, the way you manage these costs directly impacts profitability. Without proper oversight, money can drain away like gold dust slipping through your fingers.
So how do you transform procurement spending into a source of savings and long-term business value? Let’s explore practical, proven strategies that align with Australian Taxation Office (ATO) guidance and broader procurement best practice.
Why Smarter Procurement Matters
Most businesses underestimate the impact of procurement on their bottom line. From supplier contracts to freight costs, procurement touches every part of operations.
According to Deloitte’s 2023 Global Chief Procurement Officer Survey, nearly 80% of business leaders see procurement as vital to growth and resilience. However, many fail to optimise it strategically.
“Procurement isn’t just about cutting costs—it’s about building value,” says Sarah Jameson, supply chain consultant at Proxima. “With smart strategies, companies can achieve 10–15% annual savings and strengthen their supplier networks”.
Five Golden Rules to Improve Procurement Spending
Think of procurement like panning for gold. With patience and the right tools, you uncover valuable opportunities hidden beneath the surface.
1. Reduce Your Base Cost Per Item
The cost per unit is the foundation of procurement spending. Even small reductions shine brightly across your financial results. Get multiple supplier quotes, benchmark pricing, and negotiate firmly for value, not just the lowest price. Regular reviews can help ensure you’re still getting the best deal.
Tax Tip: Procurement expenses that are directly related to earning assessable income are generally deductible, as long as you keep records (ATO).
2. Cut Your Logistics and Delivery Costs
Freight and delivery can quietly erode margins. Regularly review your logistics providers and explore discounts for early payment or preferred-customer arrangements. A long-term commitment often brings stronger partnerships and better prices.
Like polishing gold, reducing logistics expenses reveals hidden value you may be overlooking.
3. Build Strong Supplier Relationships
Trust and collaboration are worth more than gold in procurement. Pay suppliers on time, communicate openly, and treat them as partners. This goodwill can deliver flexibility, reliability, and better terms.
“Healthy supplier relationships create resilience that short-term cost-cutting cannot match,” says procurement expert John Riley, quoted in Supply Management Magazine.
Government procurement guidance also highlights that value-for-money is achieved through both price and the quality of supplier relationships (Australian Government Procurement Framework).
4. Reduce Tax and Duty Costs
Hidden costs often appear in taxes and import duties. Working with a tax adviser ensures you are only paying what is necessary, while a customs broker can streamline international shipping processes.
The ATO stresses that deductions are available only where expenses are properly documented and directly tied to income generation (ATO – Business Deductions). Engaging experts helps you stay compliant while protecting your cash flow.
5. Use Technology to Take Control
Procurement software gives businesses real-time visibility over spending, budgets, and supplier performance. Cloud-based systems help identify overspending, manage risks, and automate reporting.
McKinsey estimates that companies using digital procurement tools can cut costs by up to 20% (McKinsey).
ATO Perspective: While the ATO doesn’t endorse specific software, it requires reliable and accessible record-keeping for all deductible expenses (ATO – Record Keeping). Digital procurement tools help businesses stay compliant while gaining financial insight.
Strike Gold with Smarter Procurement
Improving procurement is not about penny-pinching—it’s about strategic control. By refining processes, negotiating effectively, and leveraging technology, businesses can strike gold in their finances.
At DJ Grigg Financial, we help businesses uncover savings, strengthen supplier relationships, and ensure their procurement practices support both compliance and profitability.
Ready to turn procurement costs into golden opportunities? Contact us today and let’s unlock the value hidden in your spending.
Are You Suffering from Business Burnout? Golden Tips for Self-care
Running a business often feels like spinning plates—clients, staff, cash flow, family, and late-night admin. But when you forget to look after yourself, the whole show can come crashing down. This July 25 was International Self-Care Day. It was the perfect reminder that self-care isn’t a luxury—it’s a lifeline that matters for a lifetime.
Why Self-Care Matters More Than Ever
Research shows small business owners are under pressure. 56% report experiencing anxiety or depression, and 43% worked every weekend prior to the pandemic (Business Victoria). Meanwhile, 77% of sole traders feel isolated, with 59% describing themselves as mentally and physically exhausted (News.com.au).
As mental health advocate Dr Matt Agnew puts it:
“Without structured work patterns in place, it’s very easy to slip into working an unsustainable amount of hours.” (News.com.au)
Think of your wellbeing like your business finances: you wouldn’t wait until your bank account hit zero before taking action. The same golden rule applies to your health—invest early and consistently.
Spotting the Warning Signs of Burnout
Burnout is like rust—it creeps in slowly until the shine is gone. Key signs include:
Physical: fatigue, poor sleep, headaches or digestive issues
Emotional: feeling anxious, overwhelmed or sad
Behavioural: irritability, low motivation or increased reliance on alcohol
Social or financial pressures: juggling debt, isolation, or constant multitasking
Left untreated, burnout may lead to long-term health issues such as heart disease, insomnia, and type 2 diabetes (Ahead for Business).
Golden Strategies to Recover and Recharge
1. Delegate the Dull
Stop hoarding low-value tasks like bookkeeping or admin. Paying someone else saves energy and frees time for growth.
2. Re-energise Your Purpose
If you’re losing enthusiasm, connect with a mentor, business coach, or peer network. Sharing challenges with others can reignite motivation.
3. Stand Back and Set Boundaries
Review how much you work versus how effective you are. Put golden boundaries around your hours and protect them like treasure.
4. Reassess Your Goals
Are your current goals realistic? Adjusting them to match your energy levels keeps you moving forward without overwhelm.
5. Commit to Daily Self-Care Actions
Build golden habits such as daily walks, balanced meals, or mindfulness apps that remind you to take mini breaks.
6. Celebrate Your Wins
Don’t wait for the “big deal” to celebrate. Recognise milestones, no matter how small. Gratitude is a powerful stress-buster.
Practical Everyday Self-Care Tips
Small actions create lasting results. Try one or two this week:
Structure your day around three main tasks
Take proper meal breaks—nobody thrives when “hangry”
Create a simple self-care plan for consistent wellbeing
Build a trusted support team around you
Join a local business group to share ideas and reduce isolation
Professional Support for Business Owners
Support is always available. Helpful resources include:
These resources can lighten your admin workload and support better self-care.
Final Thoughts: Guard Your Gold
Your business shines brightest when you do. Self-care is the polish that keeps your health, mindset, and resilience gleaming. Don’t wait until burnout dulls your shine—invest in yourself now.
At DJ Grigg Financial, we know that when you’re supported, your business thrives. If you’re ready to delegate, streamline, or get financial clarity, contact us today—we’ll help you protect your most valuable asset: you.
ATO Interest Charges Lose Their Shine: No Longer Tax-Deductible for Businesses
Since 1 July 2025, Australian businesses can no longer claim tax deductions for certain ATO interest charges. This legislative change increases the real cost of overdue tax debts and places greater pressure on businesses to stay on top of cash flow and compliance obligations.
For many business owners, this means the “golden buffer” that once softened the cost of ATO interest has disappeared.
Key Takeaways
ATO Interest Charges are no longer tax-deductible for Australian businesses from 1 July 2025, increasing the cost of overdue tax debts.
The change applies to both General Interest Charges (GIC) and Shortfall Interest Charges (SIC) incurred on or after 1 July 2025.
Businesses can no longer offset ATO interest charges through tax deductions, making timely tax payments more important than ever.
Strong cash flow management and tax planning are essential to avoid accumulating costly ATO interest charges.
Payment plans and interest remissions may still be available through the ATO, but businesses should engage early if they are experiencing financial difficulties.
Seeking professional advice can help businesses reduce tax debt, improve compliance, and minimise the financial impact of these tax law changes.
What Changed on 1 July 2025?
Under the Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025, deductions for the following ATO interest charges are now denied:
General Interest Charge (GIC)
Shortfall Interest Charge (SIC)
This means businesses can no longer claim these interest expenses as tax deductions for income years starting on or after 1 July 2025.
Importantly, the change applies regardless of when the original tax debt arose. If interest is incurred after 1 July 2025, it is now non-deductible.
Businesses with substituted accounting periods (SAPs) are affected from the start of their next income year beginning after 1 July 2025.
Why This Matters for Business Owners
Previously, businesses could deduct ATO interest charges, reducing the after-tax cost of carrying tax debt. That deduction is now gone.
The ATO applies GIC at a rate reviewed quarterly and compounded daily. Without deductibility, the full cost of interest is borne directly by the business.
CPA Australia has warned the effective cost of ATO interest may now rise significantly for some taxpayers due to the removal of deductibility.
For businesses already managing tight cash flow, delaying tax payments has become far more expensive.
The Financial Impact in Real Terms
Consider a business with a $50,000 overdue tax debt.
At current GIC rates, interest costs could exceed $5,500 over 12 months. Before July 2025, a portion of this cost could often be recovered through tax deductions. Today, every dollar of that interest becomes a direct business expense.
Businesses should assess any unpaid tax liabilities immediately. Reducing tax debt now may help avoid ongoing non-deductible interest costs.
Strengthen Cash Flow Management
Tax obligations should be treated like payroll or rent. Setting aside funds regularly for GST, PAYG withholding, and superannuation can reduce the risk of falling behind.
“It’s important businesses plan ahead and set aside money to meet tax obligations.”
Consider Alternative Financing Options
In some cases, commercial lending may be more cost-effective than carrying ATO debt. Interest charged by third-party lenders may still remain deductible, depending on the circumstances.
Professional advice should always be sought before entering finance arrangements.
Engage With the ATO Early
Payment plans and interest remissions may still be available in certain circumstances, although the ATO has tightened its approach in recent years.
Proactive communication is critical. Waiting too long can limit available options and increase financial pressure.
The Golden Takeaway
The removal of deductions for ATO interest charges marks a significant shift in the cost of tax debt for Australian businesses.
The message from the ATO is clear: timely tax compliance is now more important than ever.
Businesses that proactively manage cash flow, review outstanding debts, and seek early advice will be in a far stronger position moving forward.
At DJ Grigg Financial, we help businesses navigate changing tax rules with practical advice and proactive planning strategies tailored to their circumstances.
Need Help Managing Tax Debt or Cash Flow?
If your business is carrying ATO debt or you’re concerned about the impact of non-deductible interest charges, our team can help you explore practical strategies to improve cash flow and reduce financial pressure.
Cash Flow vs Profit: Which One Rules Your Business?
FOCUS: Understanding the golden duo that keeps your business strong.
Profit often gets the spotlight, but it’s cash that keeps your business running day to day. It’s tempting to focus on your bottom line, but if there’s no cash in the bank, even a profitable business can struggle—or worse, close.
So what’s more important—cash flow or profit?
The answer: both matter, but for different reasons. Let’s explore why every business owner needs to understand the difference—and how to strike a healthy balance.
What Is Profit? Your Business’s Gold Medal
Profit is the reward for your efforts. It’s what remains after you subtract your expenses from your revenue.
In simple terms: Profit = Income – Expenses
There are different types:
Gross profit shows earnings after direct costs like materials.
Net profit shows what’s left after all costs including wages, rent, and taxes.
Profit tells you if your business is viable—but it doesn’t guarantee there’s cash on hand to pay bills today.
What Is Cash Flow? The Gold That Keeps You Going
Cash flow is the money moving in and out of your business. It’s the cash you actually have available—what’s in the bank, not just on the books.
Positive cash flow means more money is coming in than going out. Negative cash flow means you’re spending more than you’re receiving.
Even profitable businesses can run into trouble if customers pay late, or if large expenses hit at the wrong time.
Why Do Businesses Fail? Hint: It’s Not Always Profit
According to a U.S. Bank study, 82% of business failures are due to poor cash flow management
And the Australian Securities and Investments Commission (ASIC) regularly lists poor cash flow as a leading cause of business insolvency.
Profit tells you how your business performed. Cash flow tells you if your business can survive.
Cash Flow Is King, But Profit Is the Queen
Think of cash flow as your river of gold coins—it keeps your business trading, paying staff, and covering bills.
Think of profit as the gold you store away—a sign of long-term sustainability and growth.
You need both to build a financially strong and resilient business.
As Harvard BusinessSchool explains: “Understanding how cash flow and profit interact is key to making sound financial decisions.”
How to Improve Both Cash Flow and Profit
Here are practical steps you can take right now:
Invoice faster: The sooner you bill, the sooner you get paid.
Tighten payment terms: Encourage prompt payments with incentives or shorter cycles.
Forecast cash flow: Plan for seasonal dips and spikes.
Control costs: Monitor expenses regularly and look for savings.
Build cash reserves: A cash buffer protects against the unexpected.
Review pricing: Are your prices aligned with value and costs?
Expert Tip: “Profit is important. But without cash, a business doesn’t function. Both must be tracked with clarity.” – Jason Andrew, chartered accountant and author of Stark Naked Numbers
The Bottom Line
Cash flow is king because it keeps the wheels turning. But profit is queen—it tells you if your business is on the right path.
A truly healthy business needs both.
Let’s Make Your Numbers Work for You
At DJ Grigg Financial, we help business owners understand their financial position, manage their cash flow, and grow profits—so they can lead with confidence.
Ready to take control of your cash flow and profit? Contact us today and let’s build your business’s golden future.
Golden Rules: What Parents Need to Know About Tax and Your Child’s Money
Helping your child grow their savings is like polishing gold—done right, it shines brighter over time. But did you know the Australian Taxation Office (ATO) could have a claim on your child’s bank interest or investment earnings?
Whether your child earns income from a part-time job, collects interest on a savings account, or receives dividends, it’s important to understand how tax works for minors. Here’s what every parent should know.
Why Tax Can Apply to Children’s Money
Under Australian tax law, a “minor” is anyone under 18 years old at the end of the financial year. Special tax rates apply to most of their income unless it falls into specific exceptions.
These tax rates aim to prevent adults from shifting investments to children to reduce tax.
For the 2024–25 year:
$0–$416: No tax
$417–$1,307: Taxed at 66% of the amount over $416
Over $1,307: Taxed at 45% of the entire amount
📊 Note: Minors generally can’t claim the Low Income Tax Offset (LITO) on unearned income, so the effective tax-free limit remains $416.
Some income types are treated more favourably. Known as “excepted income,” these amounts are taxed at normal adult rates. That means your child may access the full $18,200 tax-free threshold, just like adults.
Excepted income includes:
Wages and other work income
Centrelink pensions and certain benefits
Income from a deceased estate or disability trust
Income from a family trust (under specific conditions)
If your child earns only excepted income, they’re also eligible to claim offsets like LITO.
Children’s savings accounts can earn interest without tax being withheld—but only if their Tax File Number (TFN) or date of birth is provided to the bank.
For account holders under 16 years old, the thresholds are:
Interest under $120/year: No tax withheld
$120–$420/year: No tax withheld if the bank has your child’s TFN or DOB
Over $420/year: If no TFN is provided, tax is withheld at 47%
🚨 Dividends are treated differently. The $420 threshold applies only to bank interest, not to dividends from shares. If your child receives dividend income, even small amounts can trigger the need for a tax return.
This depends on who the ATO considers the true beneficial owner of the money.
If you provide the funds, control how they’re used, or spend the income, it’s your income—and must be declared on your return.
If the child is the genuine owner, and:
Their non-excepted income (like bank interest or dividends) is over $416, or
Tax was withheld from their income (e.g. no TFN provided), or
They receive dividends, and total income from those exceeds $416
—then a tax return should be lodged in their name.
You can claim refunds of any overpaid tax or franking credits on their behalf.
Watch Out for Joint Accounts
If a savings account is jointly held with a parent or someone aged 16 or over, the ATO will not apply the special under‑16 interest thresholds. In these cases, the full interest may be taxed differently, and TFN withholding may apply immediately unless managed carefully.
Help Your Child Build Wealth—Without Tax Surprises
Your child’s financial journey is like a gold mine—it’s best managed with care, guidance, and the right tools. Teaching them how tax works is a golden opportunity to build strong money habits early.
At DJ Grigg Financial, we help families across the Latrobe Valley manage tax obligations and set up accounts the right way—from TFN applications to minor tax returns.
Get in touch today and let us help you give your child a golden financial future.
Turn Stress into Gold: Why ACTION is the Best Cure for Overwhelm at Work
Stress is a natural part of work and life. But when it lingers without action, it turns into something heavier—like carrying a load of bricks you can’t put down. For business owners and employees alike, stress often comes from uncertainty or the fear of doing something wrong.
But here’s the good news: stress is most intense right before you take action.
“Stress and worry tend to be higher before you act. Without action, all you can do is worry. Once you begin, fear shrinks as you start to influence the outcome.” – productivity expert James Clear says.
Let’s explore why action is your most powerful stress-buster—and how taking small steps can turn pressure into progress.
Why Stress Hits So Hard
According to the Australian Bureau of Statistics’National Study of Mental Health and Wellbeing (2020–2022), one in five Australians experienced high or very high psychological distress in the last year. Work-related stress is one of the key contributors, especially for small business owners and employees under pressure to perform.
Stress builds when you feel stuck or unsure. Without a clear next step, your brain starts imagining worst-case scenarios. That’s when anxiety peaks. But once you act, even in a small way, the cloud begins to lift.
Action Turns Pressure into Progress
Think of stress as molten metal—intense and formless. But when shaped by action, it becomes something strong and valuable—like gold.
Taking action doesn’t mean solving everything at once. It means doing something that moves you forward. Here’s why it works:
It creates clarity: Even small actions reduce confusion and show the path ahead.
It builds control: Action gives you influence over the outcome.
It lowers anxiety: You’re no longer frozen—you’re making progress.
It gives you confidence: Success breeds momentum, even in small wins.
“When we take action aligned with our values and goals, we move from helplessness to hope.” – Dr Suzy Green, Founder of The Positivity Institute.
Start Small. Shine Bright.
You don’t need a full strategy or a perfect plan. All you need is your first step. Here are a few “golden” moves that can help right now:
Make a brain-dump list: Get worries out of your head and onto paper.
Prioritise the next task: Focus on the one thing that matters most today.
Set a timer for 10 minutes: Get started. Action beats perfection.
Talk to someone you trust: A mentor or adviser can provide perspective.
Outsource or delegate: You don’t have to do everything alone.
Why It’s Worth Doing Something New
The quote often attributed to Thomas Jefferson still rings true:
“If you want something you’ve never had, you have to do something you’ve never done.”
If stress is your body’s alarm system, action is how you respond. Sitting still only lets the alarm ring louder. But movement, even small, tells your brain: “I’m doing something about this.”
Build Your Resilience Bank
Every action you take to reduce stress is like adding a gold coin to your resilience bank. Over time, you’ll build confidence, capability, and calm—even when challenges arise.
Remember: stress doesn’t always mean something is wrong. Sometimes, it just means something needs your attention.
Time to Take That First Step
If you’re a business owner or employee feeling overwhelmed, don’t wait for the “right” time to act. The time is now.
At DJ Grigg Financial, we help business owners take smart, practical steps to reduce stress—whether it’s managing tax time, fixing cash flow, or getting clarity on your numbers. We understand that sometimes the hardest part is just getting started.
Golden takeaway: The weight of stress lightens the moment you start moving. Even one small action can turn fear into forward motion. Let’s help you make that move.
