Next Zero Financial Services

Key proposals are still in limbo, and the election result will decide whether they become law, get reworked, or vanish altogether. Here’s what’s on the line and why it matters. ➤ Super Shock — 30% Tax on Unrealised Gains Over $3M One of the most contentious proposals is a new 30% tax on unrealised gains for super balances above $3 million. You could be taxed on paper gains – even without selling the asset or receiving any income. The bill is currently stalled in the Senate and will likely be election – dependent. 📌 Impact: High-net-worth individuals and SMSFs should prepare for possible restructuring or estate planning adjustments. ➤ Asset…

Imagine how you would feel if you borrowed $200,000 to invest in shares or property. Then, at tax time, your accountant tells you that the interest on the loan is not tax deductible — all because the funds were first transferred to your personal savings account before going to your agent or investment account. It’s a frustrating scenario but a common mistake with costly consequences. Why This Happens Under Australian tax law, interest is only deductible when the borrowed funds are used directly to generate assessable income. If the funds pass through a personal or mixed-use account, the ATO may question whether the money was truly used for investment purposes.…

Recent data indicates a significant increase in the issuance of Director Penalty Notices (DPNs) by the Australian Taxation Office (ATO). For Australian small business owners, managing tax obligations is a key part of keeping your business financially healthy. However, when tax debts pile up, the Australian Taxation Office (ATO) may take action, including issuing a Director Penalty Notice (DPN) – a legal warning that shouldn’t be ignored. What is a Director Penalty Notice? A DPN is a formal notice sent to company directors, making them personally liable for certain unpaid business taxes, including: This means that if your business doesn’t pay these liabilities, the ATO can pursue you personally for…

Many small business owners treat GST as part of their revenue, but this is a dangerous financial mistake. GST is not your money—it belongs to the ATO. Why GST Is Not Yours? When you sell a product or service for $1,000, you don’t just charge $1,000—you add 10% GST, bringing the total to $1,100. The extra $100 GST is not part of your revenue—it’s collected on behalf of the government and must be paid to the ATO. If you spend that extra money, you’ll have trouble covering your tax obligations. So when you are paying the $100 to the ATO, you are not paying out of your pocket—you are simply…

Running a successful small business requires more than just sales growth—it requires a solid understanding of your financial health. By tracking key financial metrics, business owners can make informed decisions, improve profitability, and ensure long-term stability. Tracking the right numbers is the secret to a thriving business. Here are five simple financial metrics and how to improve them. 1. Cash Flow Why it matters: Cash flow is the money coming in and going out of your business. If more money is going out than coming in, you could run into trouble. How to improve: Send invoices faster, follow up on late payments, and cut unnecessary expenses. 2. Gross Profit Margin…

Many business owners believe that they can pull funds out of business whenever they want and that if an expense is paid from their business account, it’s automatically becomes a business deduction for tax purposes. Wrong! The Australian Taxation Office (ATO) has strict rules, and claiming the wrong expenses can lead to audits, penalties, and even extra tax bills! For an expense to be tax-deductible, it must: ✅Be directly related to running your business and earning income. ✅Not be a private or personal expense. ✅Have proper records (receipts, invoices) to prove it’s a business cost. To avoid issues, always keep personal and business money separate and check with your accountant…

Remember the early days of your career? The frustration of feeling unheard, overworked, or undervalued? The rigid policies, the micromanagement, the lack of recognition—things you swore you’d change if you were ever in charge. Fast forward a few years. You’re now the employer, the decision-maker. But take a step back and ask yourself: Have you built the very workplace you once despised? It happens more often than we realize. The pressures of running a business—meeting deadlines, managing cash flow, ensuring productivity—can lead us to adopt the same management styles we once criticized. But here’s the truth: a workplace built on fear, inefficiency, or indifference doesn’t just hurt employees; it stifles…

Twenty years ago, when I started working in the accounting field, tax management was a fundamental part of financial discipline for business owners and individuals alike. People knew that a portion of their earnings wasn’t truly theirs—it belonged to the tax office. They would set aside money for tax obligations first and then operate within their means with what was left. Fast forward to today, and the landscape has changed drastically. Many individuals and businesses are struggling with tax debt, often falling behind on obligations that were once second nature. So, what went wrong? The Culture of Overspending With the easy availability of credit, the temptation to spend beyond one’s…

The Australian Taxation Office (ATO) has announced that, starting from April 1, 2025, certain small businesses with a history of non-compliance will be required to shift from quarterly to monthly Goods and Services Tax (GST) reporting. This measure aims to promote timely compliance and assist businesses in maintaining accurate financial records. Who Will Be Affected? Small businesses that have consistently failed to meet their tax obligations are the primary focus of this change. Indicators of non-compliance include: Late or non-payment of GST liabilities. Delayed or missing Business Activity Statement (BAS) lodgments. Inaccurate reporting of tax obligations. The ATO will notify affected businesses in writing about the transition to monthly reporting.…

As of January 1, 2025, Australia has implemented stringent laws criminalizing the intentional underpayment of employees, commonly referred to as wage theft. These measures aim to strengthen worker protections and ensure fair compensation across all industries. CRIMINAL OFFENSE: Deliberate underpayment of wages or entitlements is now a criminal act. This excludes genuine errors; only intentional misconduct is subject to criminal penalties. Intentional underpayment occurs when an employer knowingly and intentionally fails to pay employees their due wages or entitlements (i.e. leave and superannuation). If convicted, employers could face substantial fines, imprisonment, or both PROTECTION & COMPLIANCE MEASURERS: There are protections in place for businesses to avoid criminal prosecution. This includes…