Warm winter greetings to all our clients and friends across Ballarat, the Central Highlands, the Surf Coast and farther afield.

The chilly weather has definitely kicked in around Ballarat, but the cold weather does not mean we all have to hibernate! There is plenty going on in Ballarat and surrounding areas for foodies, families, art lovers, music fans and anyone looking for an excuse to get out of the house.

The Ballarat Winter Festival

The Ballarat Winter Festival is back from 27 June to 19 July, bringing plenty of winter fun to the region. The Hot Choc Showdown is also returning, with more than 30 local venues serving up their own creations as locals and visitors sip, sample and vote their way through Ballarat’s sweetest winter event.

Speaking of something for everyone, that is the aim of the game when we attend to your tax returns at this time of year. At CGH Accounting Services, we know that no 2 clients are the same. Every tax return tells a different story, and our job is to understand your circumstances, provide practical advice and help you achieve the best possible outcome.

Some people count down to Christmas. Accountants tend to count down to 30 June.

Just like Christmas is most kids’ favourite time of the year, tax time is when our accountants are at their happiest. There is nothing they like more than getting stuck into the numbers, reviewing deductions, checking details and helping clients get organised for the year ahead.

A Little EOFY Humour

Q: What’s the difference between a good tax record and a great tax record?
A: About three hours of searching through kitchen drawers.

Q: What’s an accountant’s favourite exercise?
A: Running the numbers.

While we enjoy a bit of EOFY humour, tax season is serious business for our team. Whether your records arrive neatly organised, in a spreadsheet, or in a shoebox that has seen better days, we are here to help make the process as straightforward as possible and ensure you achieve the best outcome available under the rules.

You Don’t Have to Navigate These Challenges Alone. We Are Here To Help!

The past year has continued to present challenges and opportunities for individuals, families and businesses alike. Cost-of-living pressures remain a reality for many Australians, while changing economic conditions and ongoing ATO reporting requirements mean staying organised is more important than ever.

The good news is that you do not have to navigate these challenges alone.

Our team continues to stay up to date with taxation changes, business developments and compliance requirements so that we can provide timely and practical advice when you need it most.

Many clients first come to us for a tax return and later discover we can assist with much more.

Our team provides a broad range of accounting, taxation and advisory services across many professions and industries. Whether it is business advice, GST, investments, superannuation, bookkeeping or specialised tax matters, we are here to help.

If you have a question, ask us. That is what we are here for.

We look forward to engaging with our clients personally over the next few months as we work through your tax returns and, of course, any other related matters.

Best wishes from Chris, Jason and the CGH Team.

Preparing Your Tax Return

To enable us to prepare and complete your outstanding tax return(s), please provide the following, should it be relevant:

1. PAYG Summary(s) / Income Statements
2. Private Health Insurance Statement(s)
3. Share and Crypto buy & sell details
4. Dividend statements
5. Details of investments or Capital Gains events
6. Total ABN income and expenses for outstanding tax years
7. Bank interest earned
8. Motor Vehicle Schedule
9. Rental Property Schedule

If you are unsure whether a document is relevant, please send it through or contact our office for guidance.

Of Special Note

If you are hoping to have your tax completed in July 2026, please be aware that it is up to you to ensure you provide us with the correct tax information.

The ATO does provide much of what we need, but due to employers not being required to lodge STP Payroll data until mid to late July 2026, accountants will not generally have access to finalised PAYG Summaries / Income Statements for 2026 until mid to late July 2026.

Once your PAYG Summary(s) / Income Statement(s) for 2026 are detailed as finalised or “Tax Ready” in your personal MyGov account, we will then also have access to that information through our ATO Portal.

Providing complete and accurate information helps avoid unnecessary amendments and ensures the smoothest possible lodgement process.

Please be sure to add www.cghaccounting.com.au to your Safe Senders or Whitelist in your email program so that you receive all correspondence from us without it going into your Junk or Spam folders.

Our Mantra – RESPECT, HONESTY & COMMUNICATION

We strive to make your business not only compliant but as successful as it can be.

CGH Accounting Services is your trusted advisor on all taxation matters.

We aim to be an important and valued partner for our clients, whether they are individuals, families, investors or business owners.

Whether our involvement is through business and accounting services, education and knowledge sharing, the simplification of financial matters or just by allowing you to spend more time with your family, your success dictates our own.

We are a team of critical-thinking accounting professionals with a passion for delivering real results for businesses, individuals and families.

Thank you for your continued trust, support and referrals throughout the year. Many of our new clients come to us through recommendations from existing clients, and we are genuinely grateful for the confidence you place in our team.

We look forward to working with you throughout the 2026 tax season and beyond.

Tax Tips 2026

We have selected some interesting and relevant tax tips and topics for you to peruse. These can be found under the News tab on our website as well as the links below.

Proposed Capital Gains Tax Changes: What Investors Need to Know
Proposed Trust Tax Changes Could Impact Family Trusts and Investment Structures
Proposed Negative Gearing Changes: What Property Investors Need to Know 

The post CGH Accounting Services | Special Bulletin | June 2026 appeared first on CGH Accounting.

The Federal Government’s 2026 Budget included proposed changes to Australia’s negative gearing rules that could affect future residential property investors from 1 July 2027.

Importantly, these changes are not yet law, and draft legislation has not yet been released. However, the proposals have generated significant discussion among investors and the property industry.

What Has Been Proposed?

The Government has proposed restricting negative gearing for residential property investments to newly constructed homes from July 2027.

Under the proposal:

• Existing property investors would generally be unaffected.
• Investors purchasing newly built properties would continue to have access to negative gearing.
• Investors purchasing established residential properties after the commencement date would face new restrictions.

What Is Negative Gearing?

Negative gearing occurs when the costs of owning an investment property exceed the rental income it generates.

Common deductible expenses include:

• Interest on investment loans
• Property management fees
• Council rates
• Insurance
• Repairs and maintenance

Under current rules, these losses can generally be offset against other income, including salary and wages, reducing an investor’s overall taxable income.

What Would Change?

For investors purchasing established residential properties after the proposed commencement date, property losses would no longer be deductible against salary and wage income.

Instead:

• Losses could only be applied against future rental income or future capital gains.
• Unused losses would be carried forward.
• Immediate tax benefits would be reduced.

For many investors, this would significantly change the cash-flow benefits traditionally associated with negative gearing.

What About Existing Investment Properties?

One of the most important features of the proposal is the proposed grandfathering of existing investments.

According to the Budget announcement, residential investment properties owned on 12 May 2026 would continue to operate under the current negative gearing rules.

For existing investors, this means no immediate change to current arrangements if the proposal proceeds in its current form.

New Builds Remain Favoured

The Government has indicated that negative gearing concessions would remain available for newly constructed residential properties.

The stated objective is to encourage investment into new housing supply rather than existing housing stock.

As a result, future investors may increasingly compare the tax treatment of new and established properties when making investment decisions.

Who Could Be Affected?

These proposed changes may be relevant to:

• First-time property investors
• Investors planning to expand their portfolio after July 2027
• High-income earners who currently rely on negative gearing benefits
• Investors considering whether to purchase new or established properties

The impact will vary depending on individual circumstances, financing arrangements and long-term investment objectives.

Should Investors Change Their Plans?

At this stage, we do not recommend making property decisions based solely on Budget announcements.

Tax outcomes are only one part of an investment decision and the final legislation may differ from the current proposal.

However, investors considering future property purchases should remain informed and factor potential tax changes into their long-term planning.

CGH Accounting’s View

The proposed negative gearing reforms represent a significant shift in the taxation of residential property investment and could influence how future investors structure their property portfolios.

While existing investors appear largely protected under the announced grandfathering arrangements, future purchasers of established residential property may face very different tax outcomes.

CGH Accounting is monitoring developments closely and will continue to provide updates as further details become available.

If you are considering purchasing an investment property, expanding your portfolio, or reviewing your investment strategy, we encourage you to discuss the potential implications with our team before making major decisions.

CGH Accounting Services | Special Bulletin | June 2026

Proposed Capital Gains Tax Changes: What Investors Need to Know

Proposed Trust Tax Changes Could Impact Family Trusts and Investment Structures

The post Proposed Negative Gearing Changes: What Property Investors Need to Know appeared first on CGH Accounting.

The Federal Government’s 2026 Budget included proposed changes to the taxation of discretionary trusts, capital gains and franking credits that could significantly affect business owners, investors and family groups.

While the proposals have attracted considerable attention, it is important to remember that no legislation has yet been released, and the final rules may differ from the Budget announcement.

What Has Been Proposed?

The Government has proposed introducing a 30% minimum tax on discretionary trust income from 1 July 2028.

Under current rules, trust income is generally distributed to beneficiaries, who then pay tax at their own marginal tax rates. The proposed changes would require a minimum level of tax to be paid at the trust level before income flows to beneficiaries.

The Government has also proposed changes to:

• Capital gains tax treatment from 1 July 2027
• The use of bucket companies
• Access to franking credits through discretionary trusts
• Restructuring relief for certain trust structures

Who Could Be Affected?

These proposals may affect clients who:

• Operate through a family trust
• Hold investment properties in a trust
• Invest in Australian shares through a trust
• Use a bucket company as part of their structure
• Have long-term succession or wealth transfer plans involving trust assets

For many business owners and investors, discretionary trusts remain a key part of their overall asset protection and tax planning strategy.

Bucket Companies Under Review

One of the most significant proposed changes relates to bucket companies.

The Government has indicated that company beneficiaries may not receive credit for tax already paid by the trust. If enacted, this could reduce the effectiveness of many existing bucket company arrangements and potentially increase overall tax outcomes for some family groups.

As a result, many advisers are closely watching this aspect of the proposal.

What About Capital Gains and Franking Credits?

The Budget also included proposals that could alter the taxation of future capital gains and change how franking credits are utilised within discretionary trust structures.

While details remain limited, investors with significant property holdings or Australian share portfolios should pay close attention as further information becomes available.

Should You Make Changes Now?

At this stage, our recommendation is simple: do not rush into restructuring.

Major tax announcements often undergo significant refinement before legislation is finalised. Acting too early can create unnecessary costs and complexity.

Instead, now is a good time to review your current structure and understand how the proposed measures could affect your position if they ultimately become law.

CGH Accounting’s View

These proposals have the potential to be among the most significant trust taxation reforms seen in many years.

However, there is still considerable uncertainty regarding the final design of the measures, and substantial consultation is expected before legislation is introduced.

CGH Accounting is monitoring developments closely and will continue to keep clients informed as further details emerge.

If you operate through a family trust, use a bucket company, or hold significant investments within a trust structure, we encourage you to discuss the potential implications with our team as part of your ongoing tax planning.

CGH Accounting Services | Special Bulletin | June 2026

Proposed Capital Gains Tax Changes: What Investors Need to Know

Proposed Negative Gearing Changes: What Property Investors Need to Know

The post Proposed Trust Tax Changes Could Impact Family Trusts and Investment Structures appeared first on CGH Accounting.

The Federal Government’s 2026 Budget included proposed changes to Australia’s capital gains tax (CGT) system that could affect investors, property owners and business owners from 1 July 2027.

While these measures have attracted significant attention, it is important to remember that the proposals are not yet law. Draft legislation has not yet been released and the final rules may differ from the Budget announcement.

What Has Been Proposed?

The Government has announced plans to reform the way capital gains are taxed in Australia.

Key proposals include:

• Replacing the current 50% CGT discount with a CPI indexation method
• Introducing a minimum 30% tax on capital gains realised after 1 July 2027
• Bringing future gains on pre-CGT assets into the tax system
• Introducing transitional rules for assets held before and after the commencement date

If enacted, these changes would represent the most significant reform to Australia’s capital gains tax system in many years.

Why Does This Matter?

Capital gains tax applies when you sell an asset for more than you paid for it.

Common examples include:

• Investment properties
• Shares and managed funds
• Business assets
• Commercial property
• Certain trust assets

For many Australians, the current 50% CGT discount has been an important concession for long-term investment.

The proposed reforms may reduce that benefit and increase the tax payable on future asset sales.

Property Investors Could Be Most Affected

Investors holding residential or commercial property may see a higher tax cost when selling assets in the future.

This is particularly relevant for clients who:

• Hold investment properties with substantial unrealised gains
• Are considering future property sales
• Own property through trusts or other investment structures

While the exact impact will depend on individual circumstances, future sale proceeds may be taxed differently than under the current rules.

Business Owners Should Also Pay Attention

Business owners often rely on capital gains tax concessions when selling business assets or planning succession strategies.

Although many small business CGT concessions are expected to remain available, the broader reforms could still affect future planning decisions.

Clients considering business succession, restructuring or asset sales should monitor developments closely.

What About Existing Assets?

One of the more significant aspects of the proposal is that certain assets currently outside the capital gains tax system may become subject to CGT on future gains.

The Government has also indicated that transitional rules will apply to assets already owned before the proposed commencement date.

The final treatment of these assets will depend on the legislation ultimately enacted.

Should Investors Be Doing Anything Now?

At this stage, we do not recommend making investment or sale decisions solely because of these announcements.

Major tax reforms often change significantly during the consultation and legislative process.

However, now is a good time to:

• Review significant unrealised capital gains
• Ensure asset records and purchase documentation are up to date
• Consider the long-term ownership structure of investment assets
• Discuss future sale or succession plans with your adviser

Good records and early planning may become increasingly important if the proposed rules proceed.

CGH Accounting’s View

The proposed capital gains tax reforms have the potential to affect a wide range of investors, property owners and business owners.

However, there remains considerable uncertainty regarding the final design of the measures and how they will operate in practice.

CGH Accounting is monitoring developments closely and will continue to keep clients informed as further details emerge.

If you are considering selling an investment property, disposing of business assets, or reviewing your investment structure, we encourage you to speak with our team as part of your broader tax planning strategy.

CGH Accounting Services | Special Bulletin | June 2026
Proposed Trust Tax Changes Could Impact Family Trusts and Investment Structures
Proposed Negative Gearing Changes: What Property Investors Need to Know

The post Proposed Capital Gains Tax Changes: What Investors Need to Know appeared first on CGH Accounting.

Season’s greetings to all of you, our clients near and far. Near and far because our clients are found in all corners of this great land.

CGH Accounting Services operates as both a trusted local accountant for residents of Ballarat and Torquay—where our offices are located—and for clients right across Australia who choose to take advantage of our easy-to-use online services.

So whether it’s a chat with a friendly tax accountant over a coffee, or a minimum-fuss remote solution that works for you, we’ve got you covered.

The Best Accountant Jokes of 2025

Q: Why was the accountant in rehab?
A: Solvency abuse.
Q: Who leads the accountants’ army?
A: General Ledger.
Q: Why did the accountant get dehydrated?
A: He didn’t have enough liquid assets.

Hometown Summer

Speaking of dehydrated, summers in Ballarat can get seriously hot. It’s a town of extremes—freezing for months during winter, then baking through January.

It’s true that many locals head down to the Surf Coast (where our second office is located in Torquay) to enjoy the ocean breezes. But summer in Ballarat can be wonderful in its own right. The city quietens down, and the big old trees provide plenty of shade.

Walking, cycling, picnicking or paddle-boating around Lake Wendouree are terrific ways to spend a warm summer’s day in the ’Rat. And then summer reaches its climactic flourish of blooms and beauty with the Ballarat Begonia Festival, before the season turns to autumn and our accountants start going tax-crazy again…

Accountants For All Seasons

Yes, there is a tax season, and we all know when that time of year rolls around. From June through to October it’s certainly action stations around here.

But in reality, people in business—and busy families—need a great accountant in their corner all year round. There’s far more to manage than just tax returns. Tradies, for example, need to keep their books ship-shape week in, week out, and that’s not easy when you’ve been on the tools all day and are exhausted in the evenings.

That’s why many local tradies, and many from further afield, rely on CGH Accounting’s Tradie Bookkeeping Services.

New Offerings

There’s so much more we can do to help you focus on what matters most to your business and family—without worrying about the financials.

With that in mind, we’re always looking for new ways to support our wonderful clients. Recently, we’ve introduced a range of new services specifically designed for real estate agents and conveyancing professionals. If that’s you, be sure to check them out—we’re confident they’ll make your life much simpler.

We’ve Got Your Number

In a nutshell, we’re introducing a new specialty area tailored to sales agents, property managers, agency principals, buyers’ agents and conveyancing practices.

Whether you’re just getting started or have already done the hard yards, these careers demand specialised accounting and tax support. CGH has the knowledge, the experience, and the love of crunching numbers—so that you don’t have to.

Whatever It Takes

Visit our website for full details, but services in this space include:
• Financial reporting and performance insights
• Profit & loss statements and balance sheets
• Cash-flow analysis
• Commission and income tracking
• Income tax compliance and lodgement
• BAS, PAYG and GST obligations
• Superannuation
• Strategic tax planning
• Business structure and strategy
• Accounting software and systems
In short, whatever your financial future requires, we’ll get it all tickety-boo.

See You Next Year!!

That’s it from CGH for 2025. From our family to yours, we wish you a very Merry Christmas and a Happy New Year. We look forward to seeing you in 2026.
Cheerio!

The post CGH Accounting Services – December 2025 Christmas News appeared first on CGH Accounting.

Because it’s issued for life, the Australian Taxation Office (ATO) won’t issue a new one if it’s compromised. This makes protecting your TFN crucial to prevent identity theft and fraud.

What Is A Compromised TFN?

A compromised TFN occurs when scammers or data breaches expose your number to unauthorised access. This puts your personal and financial information at risk. Understanding these threats and knowing how to safeguard yourself is essential.

How Can My TFN Be Compromised?

Your TFN can be exposed in several ways:

• Phishing Scams: Fraudsters might impersonate the ATO through fake emails or messages to trick you into revealing your TFN and personal details. Always verify the authenticity of any communication before sharing sensitive information.
• Data breaches: If an organisation where you’ve shared your TFN suffers a data breach, your information might be exposed. Ensure you use secure methods for sharing your TFN. For example, CGH Accounting provides a secure portal for safely submitting personal information.
• Identity theft: Criminals may steal your TFN along with other personal details to commit fraud or access your financial accounts. Stay vigilant to protect your information.

How Do I Know If My TFN Has Been Exposed?

Signs that your TFN may be compromised include:

• You start receiving tax bills or notifications from the ATO that you weren’t expecting.
• There is an unexplained delay in your tax refund, or you discover that a return has been filed under your name without your knowledge.
• Irregularities or unexpected transactions appear in your superannuation accounts.

What Should I Do If I Think My TFN Is Compromised?

If you suspect your TFN has been compromised, follow these steps promptly:

1. Contact the ATO: Report the incident to the ATO by calling their dedicated TFN hotline or using their online reporting tool.
2. Monitor your accounts: Keep a close eye on your bank statements, credit reports, and other financial accounts for any unauthorised activity.
3. Update your passwords: Change your passwords for all your online accounts, especially those that contain sensitive information. Set up two factor authentication where possible for an added layer of security.
4. Consider a credit freeze: Contact credit reporting agencies to place a freeze on your credit file, preventing anyone from opening new accounts in your name.
5. Stay vigilant: Be cautious of suspicious emails, calls, or messages asking for your TFN or personal information. Verify the request’s legitimacy before sharing any details.

What Changes Should I Expect When Dealing With A Compromised TFN?

Reporting a compromised TFN to the ATO may lead to changes in how you interact with them:

• you may not be able to use the ATO’s online channels or myGov
• pre-fill data may not be available
• the ATO may need to make extra checks for tax returns and other forms that could delay processing
• the ATO can prevent business activity statements from issuing automatically. You will need to contact the ATO before each lodgement so they can generate these statements
• your digital identity may be suspended while the ATO investigate if there has been a compromise.

CGH Accounting is here to assist you. Our team of Tax Experts can guide you through reporting your compromised TFN and answer any questions you have about the process.

How Do I Lodge My Tax Return With A Compromised TFN?

If your TFN is compromised, you will need to call the ATO Client Identity Support Centre at 1800 467 033 between 8am and 6pm Monday to Friday (AEST) each time you lodge your tax return. The ATO will provide a 48-hour window for you and your tax agent to access your details on ATO systems. This process will continue each time you lodge your return.

Once extra security is placed on your account, it remains in place permanently. You will need to contact the ATO to lift these security measures each time you need access to your information. Although this process can be cumbersome and might cause delays, working with CGH Accounting Tax Experts can help manage it effectively and reduce stress.

How Can I Safeguard My TFN Against Future Compromise?

To protect your TFN and personal information, follow these preventive measures:

• Keep Your TFN Confidential: Only share your TFN when absolutely necessary. Avoid sharing it through unsecured channels.
• Be Wary of Scams: Be cautious of scams that impersonate the ATO through phone calls, emails, or text messages. If you receive suspicious communication, do not respond.
• Monitor Your Accounts: Regularly check your financial statements for unfamiliar transactions. Report any suspicious activity to your financial institution or the ATO immediately.

At CGH Accounting, we prioritise the security of your TFN and personal information. Our Tax Experts ensures your data is handled with the highest level of security and confidentiality, so you can trust that your TFN is in safe hands.

If you have any questions or need assistance, please do not hesitate to call us on 03 5332 7409

ATO Tax Time Hitlist 2025: What the ATO Is Watching This Year

2025 Federal Budget Tax Updates

‘Payday Super’ from 1 July 2026: What Employers Need to Know

The post Compromised TFN: What You Need to Know appeared first on CGH Accounting.

Work-Related Expenses

The ATO has reported an estimated $8.7 billion “tax gap” — the difference between the amount of tax individuals are expected to pay and what is actually being paid. Work-related expense claims are believed to be the main contributor to this gap and are therefore a major focus for the ATO this year. Key areas under review include:

Working From Home Expenses

Taxpayers can now claim these using a fixed rate of 70 cents per hour. This method comes with stricter substantiation requirements. The ATO is expected to closely verify whether claims are backed by comprehensive records of hours worked from home throughout the year, such as timesheets, diaries, or work rosters.

Occupancy expenses

Deductions for items such as rent, rates and mortgage interest are only allowable if the home is used to run a business — not just for working from home as an employee

Mobile phone and internet costs

Particular attention will be paid to those claiming their entire bill, or a significant portion, as work-related. The ATO is also monitoring for “double dipping” — where taxpayers claim the 70 cents per hour rate (which includes an allowance for phone costs) and claim mobile expenses separately.

Other commonly scrutinised deductions:

• Work-related clothing, dry cleaning, and laundry
• Overtime meal expenses
• Union fees and professional subscriptions
• Motor vehicle expenses, especially where the 88 cents per kilometre method is used for up to 5,000 kms. The ATO is concerned some taxpayers automatically claim the 5,000 km limit regardless of actual travel.
• Deductions under the $300 threshold rule, which allows claims without receipts. The ATO has flagged misuse by those claiming up to this amount without incurring any actual expense.

Tip: Before making any claim, ensure there is a clear understanding of what can and can’t be claimed, and that all necessary records (receipts, invoices, diaries, etc.) are available to prove that the expenses were both incurred and work-related. CGH Accounting’s Tax Experts can guide you through eligible deductions, review your records, and ensure your return is accurate and ATO-compliant — maximising your refund while keeping you on the right side of the rules.

Property Spotlight

Investment properties and holiday homes are another key area of ATO scrutiny this year. Following recent audits, where errors were found in 90% of the returns reviewed, several issues are in the spotlight:

Excessive interest claims

For example, claiming interest on the family home loan as well as a rental property loan.

Incorrect income/expense apportioning

Deductions on jointly owned properties must be split appropriately between owners. Claims should not be skewed toward the higher-income owner to reduce tax liability.

Holiday homes

Claims can only be made for periods when the property was rented out or genuinely available for rent. Personal use periods cannot be claimed.

New rental property claims

Costs associated with fixing pre-existing damage or carrying out renovations after purchase are not immediately deductible and must instead be claimed over time.

Tip: Good recordkeeping is essential. This includes invoices, receipts, bank statements, and evidence that the property was genuinely available for rent (e.g. online rental listings). If a claim cannot be substantiated, it cannot be deducted. Our Tax Experts specialise in property investment taxation and can help ensure all allowable deductions are claimed correctly.

Share Economy

The ATO is convinced that many people in the sharing economy are not properly declaring their profits and gains. So, if you obtain work through Uber, Airtasker or any of the many sharing economy platforms which allow you to rent out assets or your personal services, take heed. The ATO is now receiving reports from many platforms (including Uber), which it can use to highlight data mismatches.

Similarly, if you rent out a property (or part of one) through Airbnb and Stayz, you will be under the spotlight. The ATO has numerous third-party sources of data which it can use to identify if you are receiving rent, and they are on the look-out for mismatches with the tax return data that you report.

Cryptocurrency

The ATO will also be taking a closer look at the booming market in investments in cryptocurrencies like Bitcoin. Increasing numbers of taxpayers are jumping on the bandwagon and the ATO believes that some of them are failing to declare the profits (and in some cases the losses) they are making on their investments. Remember, investing in cryptocurrencies can give rise to capital gains tax (CGT) on profits. Traders can be taxed on their profits as business income.

To help them in their search, the ATO is collecting bulk records from Australian cryptocurrency designated service providers (DSPs) as part of a data matching program to ensure people trading in cryptocurrency are paying the right amount of tax. Data provided to the ATO includes cryptocurrency purchase and sale information. The data will identify taxpayers who fail to disclose their income details correctly.

The ATO estimates that there are between 500,000 to one million Australians that have invested in crypto assets.

To summarise…

• The ATO is focusing on work-related expenses, investment property claims, sharing economy income, and cryptocurrency reporting.
• Ensure all claims are substantiated with records, understand what you can and can’t claim, and seek our expert advice if unsure.
• You can only claim rent or mortgage payment if you run a business from home—not if you’re just an employee working remotely.

‘Payday Super’ from 1 July 2026: What Employers Need to Know

2025 Federal Budget Tax Updates

Compromised TFN: What You Need to Know

The post ATO Tax Time Hitlist 2025: What the ATO Is Watching This Year appeared first on CGH Accounting.

A key highlight is the reduction in the bottom income tax rate, which will decrease from 16% to 15% in 2026 and further to 14% in 2027. While the financial impact is relatively modest, estimated at approximately $5 per week in 2026 and $10 per week in 2027, the change aims to mitigate bracket creep and lower average tax rates, particularly for low- and middle-income earners. Under these reforms, the average tax rate for an individual earning the national average wage is not expected to exceed 2023-24 levels until at least 2031-32.

Additionally, the government has introduced a $150 energy bill relief payment for all individual taxpayers and small businesses. This measure is intended to help address cost-of-living pressures.

Finally, if you’re a sole trader or small business owner, you’ll want to take note of the significant instant asset write of changes below.

Personal Income Tax Cuts for 2026 and 2027

The government has announced reductions to the personal income tax rate for earnings between $18,200 and $45,000, with rates decreasing as follows:

• From 16% to 15% from 1 July 2026
• From 15% to 14% from 1 July 2027

As a result, every taxpayer will receive a tax cut of up to $268 from 2026, increasing to $536 from 2027.

These reductions, combined with the previously legislated Stage 3 tax cuts effective from 2024-25, will provide an average annual tax reduction of $2,229 in 2026-27 and $2,548 in 2027-28.

This translates to approximately $50 per week in savings compared to 2023-24 tax settings. An individual earning the national average salary of $79,000 is expected to receive a total tax cut of $2,190 in 2027-28.

Medicare Levy Low-Income Threshold Adjustments

To support low-income earners, the government has increased the Medicare levy low-income thresholds for the 2024-25 income year:

• Singles: Increased from $26,000 (2023-24) to $27,222
• Couples with no children: Increased from $43,846 (2023-24) to $45,907
• Additional amount per dependent child or student: Increased from $4,027 (2023-24) to $4,216

For single seniors and pensioners eligible for the Seniors and Pensioners Tax Offset (SAPTO):

• Individual threshold: Increased from $41,089 (2023-24) to $43,020
• Family threshold: Increased from $57,198 (2023-24) to $59,886
• Additional per dependent child or student: $4,216

Increased ATO Funding for Compliance Activities

The government has allocated nearly $1 billion in additional funding to the Australian Taxation Office (ATO) to enhance tax compliance efforts. Key initiatives include:

• Tax Avoidance Taskforce: $717.8 million over 4 years from 1 July 2025 to expand the Taskforce, focusing on multinationals and large corporate entities.
• Shadow Economy Compliance Program: $155.5 million over 4 years from 1 July 2025 to reduce tax evasion in the shadow economy, tackling issues such as worker exploitation, under-reported income, and illicit trade.
• Personal Income Tax Compliance Program: $75.7 million over 4 years from 1 July 2025 to enable the ATO to continue proactive, preventative, and corrective activities in key areas of non-compliance.
• Tax Integrity Program: $50.0 million over 3 years from 1 July 2026 to ensure timely payment of tax and superannuation liabilities by medium and large businesses and wealthy groups.

With the ATO cracking down on compliance, it’s even more important to ensure you stay on top of tax changes and consult your consultant this upcoming tax season.

No Change to Superannuation Guarantee Rate

The government has confirmed that the Superannuation Guarantee (SG) rate will increase as scheduled from 11.5% to 12% on 1 July 2025. This marks the final step in the gradual increase from 9.5% in 2020-21.

Further Energy Bill Relief 

The government will extend its energy bill rebate program until the end of 2025 by providing two additional instalments of $75 for households and small businesses. From 1 July 2025, eligible households and approximately one million small businesses will receive another $150 in rebates, applied automatically to their electricity bills in quarterly instalments.

Reduction of Student Loan Debts

The government will introduce changes that reduce Higher Education Loan Program (HELP) and other student debts for more than three million Australians by around $19 billion. This includes a one-time 20% reduction in outstanding student debt before indexation is applied on 1 June 2025, subject to legislative approval. This measure is expected to remove approximately $16 billion in debt.

Additionally, the government has committed $182.2 million over 4 years from 2024-25 (and $402.3 million from 2028-29 to 2034-35) to reform the student loan repayment system. The reforms will introduce a fairer repayment structure based on marginal tax rates and increase the income threshold before repayments begin. These changes are scheduled to take effect from 1 July 2025, pending legislative approval.

The previously legislated cap on HELP indexation, which ensures debts increase at the lower rate of either the Consumer Price Index or the Wage Price Index, remains in place. This policy, backdated to 1 June 2023, has already reduced outstanding student debt by approximately $3 billion.

The 2025 Federal Budget delivers tax relief for individuals while implementing changes for small businesses and expanding ATO compliance measures. While personal tax cuts provide some financial relief, small businesses should prepare for the reduction in the instant asset write-off next year and increased ATO scrutiny.

To understand how these changes may affect your financial planning and to maximise available incentives, contact us for more information.

‘Payday Super’ from 1 July 2026: What Employers Need to Know

ATO Tax Time Hitlist 2025

Compromised TFN? Here’s What To Expect

The post 2025 Federal Budget Tax Updates appeared first on CGH Accounting.

Key Changes Under Payday Super

1. Super Contributions Due Within Seven Days
Employers will need to ensure SG contributions are deposited into their employees’ super funds within seven calendar days of payday. Failure to do so could result in the SG charge being applied.

2. Simplified Late Contribution Process
Late contributions will automatically be applied to the earliest unpaid period, reducing the administrative burden on employers.

Supporting Changes

Faster Fund Allocation: Super funds will have 3 business days (down from 20) to allocate or return contributions.

Retirement of ATO Small Business Superannuation Clearing House (SBSCH): This service will be discontinued on 1 July 2026, by the ATO, so small businesses will need alternative options.

New Reporting and Penalties

Employers must report ordinary times earnings (OTE) and total super liability through Single Touch Payroll (STP). Failure to pay or report on time will expose employers to increased penalties, especially for repeated offenses.

Impact on Employees

Employees will benefit from real-time monitoring of super payments, ensuring their employers meet obligations promptly.

Preparing for Payday Super

Employers should start preparing now by:

• Updating payroll systems.
• Ensuring compliance with the seven-day window.
• Adapting to new STP reporting requirements.

With payday super, compliance becomes more streamlined, and employees gain transparency over their super contributions.
Please note that Payday Super is not yet law.

Federal Budget Tax Updates

ATO Tax Time Hitlist 2025

Compromised TFN: What You Need to Know

The post ‘Payday Super’ from 1 July 2026: What Employers Need to Know appeared first on CGH Accounting.

If all the accountants in your town suddenly went on strike, can you imagine the mayhem? There would be panic, there would be widespread disorder, possibly rioting – it would be a big mess!

We get a bad rap sometimes for being a bit nerdy, a bit too serious – we need to lighten up…

Really? We think you need your trusted tax professional to take your money matters very seriously. Paying too much tax is no laughing matter! Getting your books all muddled is no joke.

The Joke’s On Us

But hey, we don’t mind having a bit of a laugh at ourselves from time to time, we do have a sense of humour.

CGH has even gone to the trouble to bring to you, our esteemed clients and customers, the best Accountant Jokes going around, in our blogs and newsletters. Here’s a couple we saw recently:

Q: What do accountants suffer from that ordinary people don’t?
A: Depreciation.

Q: Why did the accountant fall over?
A: He lost his balance.

Funny stuff, but on a serious note, let’s cut to the chase and the reason for this Special Update.

Specialists In A Range Of Accounting Fields

CGH Accounting provides all the expertise, advice and assistance you would expect from a quality accounting firm, but we also specialise in a number of areas. Some of you might know this, but many may not, so we have updated our website accordingly with important information, which is discussed below.

We specialise in a number of areas – mainly with regard to tax – but also in all associated services and support.

While many of our clients are located in the Ballarat and Central Highlands and Torquay/Surf Coast regions, even more are not, living and working all over Australia. Yeah, we get around without having to get out of our chairs!

Long Distance Relationships

Having a local accountant who you can drop in and chat to in person used to be the only way to get your tax done.

We’ve been an online accounting and tax practice for more than a decade, so we’ve fine-tuned and honed our skills in successfully managing long distance relationships; we love our clients! ♥

Some of you will have received emails for our office manager Jodie showing how much she loves emojis! 😊🙏🏻🙊

The human connection is not lost with our regular and convenient phone calls at times that suit you and emails you can deal with in your own time and not have to take time off work!

Plus, your relationship with your accountant is one that builds and grows across the years. Because some of our clients have been with us since we began more than 10 years ago, we understand where you’ve come from and where you’re trying to go.

We get the idiosyncrasies and intricacies of your finances, your work, your family and the things you own or hope to own!

There’s nuance involved. Sometimes times are tough, and your accountant may well be the person who gets you through a very difficult period.

But we digress. What are the areas in which we specialise at CGH Accounting? We list them here:

Tradie Accounting

More and more we find ourselves looking after the needs of tradies. This is a rapidly growing demographic in Victoria and the number of tradies living and working in the localities where CGH has offices has increased a lot (we know – we love population data!).

You guys need expert accountants to make sure your books are balanced, your BAS Statements are spic & span and your tax returns claim all the many expenses you have on a daily basis.

Many of you are sole traders and this can be daunting, doing the whole lot on your own. Having a friendly CPA to make sure you’re on the right path is one of the wisest moves you’ll make, as you work hard to grow your business and set up that independent, prosperous lifestyle you’re shooting for.

Read our post on Accounting For Tradies and how we can help you.

Fashion And Retail

We do know how tough it can be in fashion and retail these days, so our support is geared to helping you navigate the sometimes scary waters of running a small business in this sector.

Dealing with issues such as landlords and rent, cashflow and employees are going to be your main concerns, and our accountants and tax advisors at CGH are here for you, not just in June but whenever you need a helping hand or strategic advice on any matter relating to your shop. Just give us a call.

Read our post on Accounting For Fashion and Retail to help maximise your tax return.

Tourism And Hospitality

The Surf Coast and also Ballarat and Central Highlands are two of the hottest spots in Australia for tourism and hospitality (yes it gets stinking hot in Ballarat in the summer!) 🥵

Think The Great Ocean Road, Lorne, Daylesford and Sovereign Hill – millions of people visit these places every year, and so there are many of our clients who run businesses in this sector. It can be tricky.

There’s the seasonality factor; employment rules and regulations can be a minefield, and much more. It’s not an easy game, and long hours are involved. Rest assured, our accountants are willing to put in the long hours for you, to make sure you get the support you need to run your business.

Read our post on Accounting For Those In Hospitality and Tourism

Nurses And Medical Professionals

Where would any of us be without the world’s best healthcare workers, which we are so lucky to have in Australia. We’d all be crook! You are entitled to lots of deductions, we hope you’re aware of that.

If not, let us tell you more about it! You will be pleasantly surprised.

Read our post on Accounting For Nurses and how we can help you with your next tax return.

Police And Defence Force Individuals

We appreciate the heavy lifting you guys do to keep our society safe and provide law and order (accountants love order!).

ADF and Police do qualify for many exemptions and allowances, so it’s important that your accountant takes this into consideration when preparing your tax returns.

Read our post on Accounting For The Defence Forces and how we can help you with your next tax return.

Professional Services

Lawyers, financial planners and other professionals are experts in fields which sometimes cross over with accounting, but do they really have the time and know-how to do their own tax returns?

We think not. Some of you are high income earners and probably pay tax at the highest rate, which isn’t much fun. Let a CGH CPA see if we can’t minimise that for you.

Read our post on Accounting For Professionals.

Medical Practitioners

Chris and CGH have worked with medical specialists and doctors for many years now, and we know all the ins and outs of the technical tax issues associated with working in this critical area.

There are specific ways to prepare the most advantageous tax return for medical professionals; we have the experience and the knowledge to help you make the most of your money.

Read our post for Accounting For The Medical Profession

Construction And Building

We have many clients in construction and building and we understand your concerns and aspirations. Businesses in this field can be complex, so we provide tailored advice to help with issues such as GST, BAS, PAYG and Superannuation. CGH helps builders build their dreams!

Read our post on Accounting For The Building and Construction Sector and how we can help you.

Dental

Our accountants like nothing better than getting their teeth stuck into a dental practitioner’s tax returns.

Your profession is unique, with very high overheads and a lot of tricky stuff around employees, insurance and taxation. Let us put a smile on your face come tax time!

Read our post on Accounting For Dentists and how we can help you.

We Are All Special

Go to our webpage for more information on our Tax Specialties. There’s a lot of helpful information on our website, and we encourage you to have a look, but please do give us a call anytime to discuss your own, unique and special circumstances.

At CGH, we are specialists in our field, and we aim to provide each and every client with a special experience, when it comes to looking after all your accounting needs.

The post CGH Accounting Services | Special Update| May 2025 appeared first on CGH Accounting.