At its latest meeting, the Reserve Bank Board announced it was keeping the cash rate on hold at 4.35 per cent.
The latest data show that headline and underlying inflation are still too high. Oil prices have eased in recent weeks, although energy and most related commodity prices remain higher than they were prior to the conflict in the Middle East.
There are signs that some firms experiencing cost pressures are increasing the prices of their goods and services and others are looking to do so. Short-term measures of inflation expectations have eased but remain higher than earlier in the year.
Please click here to view the Statement by the Monetary Policy Board: Monetary Policy Decision.
Please get in touch if you would like to discuss recent rate movements or if you would like to review your finance options.
The instant asset write-off remains an important tax concession for Australian small businesses in the 2025–2026 financial year. Eligible businesses with an aggregated turnover of less than $10 million can immediately deduct the business portion of eligible assets costing less than $20,000, instead of depreciating them over several years. The asset must be first used or installed ready for use between 1 July 2025 and 30 June 2026.ii
This measure helps improve cash flow and encourages investment by allowing businesses to reduce taxable income sooner. However, businesses should keep accurate records and seek professional tax advice to meet ATO requirements.
Don’t overlook income
The ATO is also paying close attention to undeclared income. This includes:iii
Cash payments
Interest income
Rental income
Earnings from crypto assets
For those with a side hustle, check whether it may be considered a business. All business income, regardless of amount, is assessable and must be declared.iv
If you intend to claim deductions for business expenses related to your side hustle, ensure they are directly connected to earning that income and are supported by receipts.
Tax timing strategies
If you have regular deductible expenses, such as investment loan interest or annual costs, it may be useful for some to prepaying them before 30 June to claim a deduction for this financial year.
You may also consider the timing of income expected before 30 June. Deferring income until after the end of the financial year may help reduce your tax liability.
Tax rates are also changing for lower income earners. From 1 July 2026, the rate for income between $18,201 and $45,000 will reduce from 16 per cent to 15 per cent, with a further reduction to 14 per cent the following year.
Super contribution strategies
The end of the financial year is an ideal time to review your super contributions.
If you plan to contribute before 30 June, check when your employer will make their contributions. The introduction of Payday Super means some employers are contributing earlier, which may affect your contribution caps.
Ways you could boost your super before 30 June include:
1. Salary sacrifice – make concessional (before-tax) contributions using a salary sacrifice arrangement.
2. Personal deductible contributions – You may be eligible to claim a tax deduction for personal contributions, if you have spare cash available.
3. Catch-up contributions – Unused concessional caps from the past five years if eligible.
4. Non-concessional contributions – Non-concessional contributions, made from your savings or after-tax pay.
5. Government co-contribution – Low-to-middle income earners making after-tax contributions before 30 June may be eligible to receive up to $500 from the government as a co-contribution.
6. Spouse contribution tax offset – If your spouse earns less than $40,000, you may be eligible for a tax offset of up to $540 by contributing to their super.
For SMSF members, make sure that:
All contributions are received by the fund’s bank account by 30 June
Minimum pension payments are made
Asset valuations are up to date
Fund records are current
Be alert for tax time misinformation
The ATO is warning taxpayers to be cautious about the growing wave of tax “tips”, shortcuts and refund claims circulating online.
Content from social media, “finfluencers” and even artificial intelligence tools can sound convincing, but it is not always accurate or relevant to Australian tax law. Acting on this kind of advice can lead to incorrect claims, delays in processing returns and, in some cases, penalties.
The key message is simple: if something sounds too good to be true, it probably is, says ATO Assistant Commissioner Anita Challen.
“In an environment where misinformation can spread within minutes, it’s important to pause and check your tax information before you act on it,” she says.
Larger refunds, easy deductions or so-called “loopholes” should always be checked against trusted sources.
While AI tools can be useful, they often draw on a mix of outdated or international information, which may not apply to your situation, she says.
Ultimately, you are responsible for the accuracy of everything included in your tax return, regardless of where the advice came from.
Taking a few extra minutes to verify information before you lodge can help you avoid costly mistakes and keep your return on the right side of the rules.
Please get in touch if you need any help preparing for the end of the financial year.
Treasurer Jim Chalmers has framed the 2026 Federal Budget as “the most important and ambitious budget in decades”.
“This Budget is about getting us through the global oil shock and taking pressure off Australians while building a stronger economy, better tax system, a more sustainable budget and lifting living standards,” the Treasurer told Parliament.
With an overarching theme of ‘reform and resilience’, the Federal Government is aiming to shore up investor confidence at a time when the global economy teeters thanks to war in the Middle East and the disruption of global oil supplies. Despite the challenges, Treasury says Australia’s economy continues to grow faster than every major advanced economy.
For households and wage earners, the Budget delivers a mix of targeted cost-of-living relief and significant structural reform, particularly in tax and housing.
The big picture
At the headline level, the Budget forecasts an underlying cash deficit of $31.5 billion in 2026–27, an improvement of $2.8 billion on the mid‑year update, despite slower global growth and higher oil prices.
Economic growth is forecast to slow from 2.25 per cent this financial year to 1.75 per cent in 2026–27, reflecting weaker international conditions, before gradually strengthening over the medium term. Inflation is expected to rise temporarily in the June quarter to around 5 per cent driven largely by fuel and transport costs linked to the war‑driven global oil shock. Despite this near-term pressure, the Government continues to project a return to a balanced budget in the mid-2030s followed by modest surpluses.
The Treasurer maintains that budget repair is being driven primarily by savings and spending restraint, rather than broad-based tax increases.
From a policy perspective, the Budget rests on five pillars: managing the global oil shock; easing cost‑of‑living pressures; lifting productivity; reforming the tax system; and strengthening national resilience. Each has direct implications for household finances, superannuation, investment structures and long‑term planning.
The Treasurer has made clear that a major goal is to “rebalance the tax system” so that wage earners are not treated substantially differently from those who earn income through assets and investments.
While some measures will take years to flow through, the direction is to prioritise the national security, energy supply, productivity and care sectors, while accepting political risk, to strengthen the economy over the medium to long term.
Cost-of-living
The Government has been careful to structure cost-of-living measures so that they don’t meaningfully add to inflation. The most prominent initiative is the Working Australians Tax Offset, providing a $250 offset for more than 13 million employees from the 2027–28 income year.
In addition, workers will be able to claim a $1,000 instant tax deduction for work-related expenses from 2026–27, without the need to keep receipts.
Income tax thresholds will also be adjusted. From 1 July 2026, the 16 per cent tax rate, applying to income between $18,201 and $45,000, will be reduced to 15 per cent before falling further to 14 per cent from 1 July 2027.
The government will increase Medicare Levy low-income thresholds by 2.9 per cent from the 2025–26 income year, a change expected to benefit more than one million lower-income Australians who will remain exempt from the Levy or pay a reduced rate.
Productivity
Productivity comes in for renewed focus, reflecting concern that long-term improvements in living standards can’t be sustained without structural change. The Budget allocates funding aimed at reducing red tape by an estimated $10.2 billion per year, including faster environmental approvals and streamlined foreign investment processes.
Housing construction remains a central productivity priority. New funding for local infrastructure is designed to support up to 65,000 extra homes, alongside measures to fast‑track skilled migrant trades and improve construction capacity.
Investment in transport infrastructure also features prominently, with $8.6 billion committed to nationally significant road and rail projects, improving freight efficiency and workforce mobility particularly across the regions.
Taken together, these measures represent a shift toward capability building. For business owners and investors, the emphasis is on reducing friction, improving labour supply and supporting capital investment that lifts output over time rather than fuelling higher prices.
Tax reform
The most debated element of the Budget is the tax reform package directed at property investors and discretionary trusts.
From 1 July 2027, negative gearing will be limited to new housing, with existing arrangements grandfathered. At the same time, the 50 per cent capital gains tax (CGT) discount will be replaced with cost-base indexation, alongside a new minimum effective tax rate of 30 per cent on capital gains.
The CGT settings for super and self-managed super funds will remain unchanged, which means investors will continue to receive a CGT discount of 33.33 per cent for relevant assets held for over 12 months in super.
The Government argues these changes are essential to address intergenerational inequity and housing affordability, while continuing to support investors who add to new housing supply. Treasury modelling suggests a modest impact on rents over time, with savings redirected toward care services and tax relief for wage earners.
Trusts have also been brought into the Government’s tax reform agenda, with a new minimum 30 per cent tax rate to apply to discretionary trust distributions from 1 July 2028. The measure is aimed at improving integrity and reducing income‑splitting arrangements that allow some taxpayers to pay significantly less tax than wage earners on comparable incomes.
Housing affordability
The Treasurer aims to address housing shortages and affordability, by increasing total investment to $47 billion and supporting an estimated 75,000 additional Australians to achieve home ownership over the next decade through the tax reform package.
The Government claims around 65,000 additional homes will be delivered over 10 years through its support for new developments. A new $2 billion fund has been established to help local governments and state utilities build the infrastructure needed to support new housing.
To free up additional supply, the Government is extending the ban on foreign buyers purchasing established homes until mid-2029.
Aged care and health
Health and aged care receive significant additional funding as demand continues to rise. The Budget commits $25 billion in additional hospital funding over the medium term, alongside incentives to expand bulk billing and reduce strain on emergency departments.
The Government has confirmed further reductions in the cost of medicines, building on earlier PBS reforms, with cheaper scripts and faster access to newly listed drugs funded through additional PBS investment.
Aged care reform focuses on both supply and workforce sustainability. The Government will fund incentives to support construction of an additional 5,000 residential aged care beds per year by 2029.
The NDIS also features prominently, with continued efforts to rein in unsustainable cost growth and strengthen integrity. Measures include tightening eligibility, reducing rorting and redirecting funding towards participants with the highest needs.
Future proofing
The focus on national resilience is a defining characteristic of the Budget. Fuel security is front and centre following the global oil shock, with measures to secure domestic fuel reserves, reserve 20 per cent of gas exports for Australian use and provide concessional finance to logistics and manufacturing firms most exposed to price volatility.
Defence spending also rises sharply, with a record additional $53 billion committed over the coming decade. The focus is on readiness, supply chains and regional security, reflecting growing geopolitical risk in the Indo‑Pacific and beyond.
Looking ahead
The outlook remains uncertain. Treasury acknowledges the risk of further inflation spikes if global energy markets deteriorate, with worst-case scenarios still modelling inflation above 7 per cent and higher unemployment. But the central forecast avoids recession and assumes gradual improvement from late 2027 onward.
If you have any questions about how the 2026 Federal Budget may affect your personal finances, please contact us to discuss.
At its latest meeting, the Reserve Bank Board announced it was increasing the cash rate to 4.35 per cent.
Inflation picked up materially in the second half of 2025, and information since the beginning of this year confirms that some of this increase reflected greater capacity pressures.
In addition, the conflict in the Middle East has resulted in sharply higher fuel and related commodity prices, which are already adding to inflation.
Please click here to view the Statement by the Monetary Policy Board: Monetary Policy Decision.
We’re watching closely what the banks do with their rates, as some of Australia’s biggest lenders may make changes to their rates.
Please get in touch if you would like to discuss recent rate movements or if you would like to review your finance options.
There’s a particular kind of unease that creeps in when market headlines start mixing geopolitics with talk of oil prices and recessions. That feeling has been hard to avoid, as the escalating war in the Middle East spooked global markets and brought fresh uncertainty to an already fragile economic landscape.
For investors, watching so many forces moving at once and volatile numbers, there can be a strong temptation to “do something”.
Before reacting, a good understanding of what’s driving market movements is useful to assess the short and medium term. More importantly, it helps to work out how your long term strategy fits in.
Energy markets have felt the most immediate effect of the conflict. Iran is at the centre of one of the world’s most strategically important regions for oil and gas production.
As tensions escalated, markets quickly priced in the risk of supply disruptions, particularly through critical shipping routes in the Middle East. That alone has been enough to push oil and gas prices sharply higher.
History shows that energy markets tend to react first and fastest during geopolitical crises.i
Even when physical supply is not immediately interrupted, uncertainty itself drives speculative buying. Higher energy prices then feed into almost every corner of the global economy: transport, manufacturing, agriculture and ultimately household budgets.ii
Global share markets responded quickly to the crisis with sharp drops after the first bombs in Iran.
Share prices have fallen and recovered several times since the conflict began, often related to US President Trump’s announcements. But, in both Australia and the US, the markets were down more than eight per cent by the end of March. Technology stocks have fallen particularly hard.
The conflict has come at a time when the global economy was already fragile. Before March, analysts were debating whether the US economy would manage a “soft landing” or slip into recession as higher interest rates worked their way through the system.
Adding an energy price shock into the mix increases the risk that higher costs slow spending and investment. Rising fuel prices act like a tax on consumers and businesses. Money spent at the petrol station is money not spent elsewhere in the economy. As a result, concerns about slowing economic growth have been quick to re‑emerge.
In Australia too, there’s increasing talk of recession – as much as a 30 per cent chance within the next 12 months, according to AMP.iii
However, Treasurer Jim Chalmers disagrees saying that, while the economy is expected to take a “sizeable hit”, a recession is not expected.iv
The immediate effects
Market volatility is likely to continue with sharp price swings as the markets react to either good or bad news coming out of the Middle East.
For households, the most visible impact is likely to be at the pump and in their power bills. Widespread price rises here are likely to affect consumer confidence and spending patterns.
So-called “safe-haven” assets such as cash, government bonds and some currencies often benefit during uncertain times as investors look to defend their portfolios, however bond yields have experienced volatility as investors assess the evolving situation in the Middle East.
Gold was also once on the list of safe havens. But, during the most recent crisis, its value has plunged nearly 15 per cent during the month. Nonetheless the price remains high – up by almost 300 per cent over the past decade.v
While there’ll be plenty of market “noise” ahead, it’s important to remember that short‑term market reactions may be driven as much by emotion as by fundamentals. Fear, uncertainty and rapid shifts in sentiment often exaggerate price moves in the early stages of a crisis.
Looking further ahead
Looking beyond the immediate panic, the medium term (the next six to 18 months) will depend on how the world adapts to the energy prices shock.
Continued high oil prices can have several effects:
Inflation pressures may linger. Energy price rises affect almost every sector of the economy. However, some sectors may perform better including commodities, energy companies and defensive assets such as infrastructure, healthcare, utilities and consumer staples.
Economic growth may soften. Higher input costs squeeze businesses and reduce consumer spending power. Over time, this can weigh on economic growth and corporate earnings.
Structural change can accelerate. Energy shocks often act as catalysts, encouraging investment in alternative energy sources, efficiency improvements and supply chain diversification. While disruptive, this can create long‑term opportunities in certain sectors and regions.
It is also worth remembering that energy shocks don’t last forever. Markets adapt, alternative supply routes emerge and prices eventually reflect new realities. The timing is uncertain, but history suggests that economies and markets are more resilient than they often appear in the heat of the moment.
Strategy over fear
Perhaps the most important thing to remember right now is that your financial plan was built for times like this.
Sound financial planning anticipates that markets will be periodically disrupted by wars, pandemics, financial crises and recessions.
Diversification is your first line of defence. A portfolio spread across various asset classes doesn’t eliminate volatility but it means that no single event can derail your entire financial position.
Ensuring your investment mix reflects your time horizon (the length of time you expect to hold an investment) and capacity for loss is your second.
The discipline required in moments of market stress is to distinguish between short-term fear and long-term strategy. Fear says: sell everything and wait for calm. Strategy says: stay invested, stay diversified and if anything has changed, let’s talk about it properly.
If the events of last month have raised questions for you, we’re here to help you navigate with confidence. Please give us a call.
March has arrived, and with that the weather starts to cool; this brings a fresh chapter and a chance to set your pace for the months ahead.
February delivered mixed signals for the Australian economy.
Labour market conditions were steady. The unemployment rate held at 4.1%, with 18,000 more people employed in January, driven by a rise in full-time jobs and partly offset by a fall in part-time roles.
Wage growth continued to edge higher, up 0.8% in the December quarter and 3.4% over the year, while household spending softened.
Inflation was slightly higher than expected, with CPI remaining at 3.8%, and trimmed inflation (the RBA’s measure of underlying inflation) increasing to 3.4%, up from 3.3%.
Reporting season added its usual volatility to the share market and the ASX hit several record highs towards the end of the month.
The Westpac–Melbourne Institute Consumer Sentiment Index fell further by 2.6% to 90.5 in February, impacted by February’s cash rate increase.
The Australian dollar strengthened, largely due to global risk sentiment, hitting a three-year high of USD 0.71 by month’s end.
The EOFY jobs that might matter more than you think
As the end of the financial year (EOFY) approaches, investors often focus on topping up super, maximising deductions, prepaying interest or reviewing portfolios. While these are all valuable activities, there are some less obvious tasks that can have a big impact on your tax position, wealth preservation and long-term planning outcomes.
Here are five areas that investors can often miss in EOFY planning.
1. Capital gains in volatile markets
Investment markets have been volatile in recent years, with rapid movements in equities, property and fixed income. When investors buy and sell during choppy market periods, capital gains tax (CGT) considerations become even more important.i
It is the ideal time to assess whether:
You should realise gains this year or defer them – The decision can hinge on:
Expected income this year vs next year
Whether you qualify for the 50 per cent CGT discount
Available capital losses
Investment timeframes and risk appetite
You have unused capital losses – Losses can be used to offset realised gains, but they cannot be used against ordinary income. Some investors may find that realising strategic gains before 30 June allows them to “unlock” unused losses that have been sitting dormant.
Be aware of “wash sale” rules. Some investors plan to sell an asset to realise a loss and then quickly buy it back. The ATO calls this a wash sale and may deny the loss.ii
2. Superannuation recontribution strategies
A super recontribution strategy is sometimes overlooked because it requires coordination between pension payments, contributions and tax components. But, when used appropriately, it may significantly reduce future tax for beneficiaries and increase flexibility in estate planning.iii
This strategy usually involves withdrawing a portion of your super (usually from the tax free and taxable components proportionally), then recontributing these funds back into super as a non-concessional contribution (if you’re eligible).
The result is that more of your balance becomes tax free, which can reduce or eliminate the “death benefits tax” that applies when super passes to non-dependent beneficiaries, such as adult‑children.iv
3. Bringing forward deductions and deferring income
While prepaying expenses and deferring income is a well-known EOFY strategy, it may not be successful for everyone, so check carefully that it’s useful for you.
Bringing forward deductions – You may be able toprepay, interest on investment loans, income protection premiums, ongoing advisory fees, and professional subscriptions. But if you’re approaching income thresholds (such as Medicare Levy Surcharge minimums, private health insurance rebates or HECS/HELP repayment bands) it’s important to calculate whether prepayments will actually deliver you a benefit.
Deferring income – Small businesses using cash accounting may be able to defer invoicing until July and investors might choose to delay receiving distributions or bonuses. But don’t forget that deferring income may affect borrowing capacity or government payments.
4. Managing Division 7A loans
Division 7A can catch business owners off guard at EOFY. These rules apply when a private company lends money, pays expenses or provides assets to shareholders or their associates. If not handled correctly, the ATO may treat the payment as an unfranked dividend, resulting in significant unexpected tax.v
To stay on top of your Division 7A obligations:
Confirm all loans are documented
Check minimum yearly repayments
Consider whether to repay, refinance or restructure
Don’t forget about company-paid personal expenses
A well-timed review can prevent unintended tax consequences and keep your structure compliant.
5. Reviewing your records
Another often missed EOFY task is checking that your records and substantiation are complete before preparing your tax return.
The ATO is increasing its use of data matching programs, so having accurate documentation is essential. This includes keeping receipts for deductible expenses and retaining statements for managed funds and other investments.
EOFY planning is about much more than topping up super or gathering receipts. Hidden traps like CGT and Division 7A timing can create unnecessary tax if ignored, while proactive strategies such as recontributions can deliver long-term estate planning benefits.
By taking a structured approach, you can ensure every part of your financial picture is working together, and no opportunity is missed. We’re here to help. Please give us a call.
ATO tightens compliance and expands employer support
The ATO has released several new resources, including a checklist to help employers get ready for what it calls a “once-in-a-generation change” along with an updated guidance on commercial deal tax.
Here’s a roundup of the latest news.
Preparing for Payday Super
The ATO has issued a Payday Super Checklist to help employers prepare for the commencement of the new regime from 1 July 2026.
The timeline checklist is designed to help employers understand the new requirements, plan their transition, prepare their business systems and processes and switch to paying super each payday.
In addition, Practical Compliance Guidelines outlining the ATO’s compliance approach during the Payday Super legislation’s first year of operation, have now been released.
Barter credit tax scheme under the microscope
The ATO is warning taxpayers to steer clear of an emerging tax scheme involving barter credits, a form of alternative currency used in some business networks.i
The scheme involves artificially inflating deductions by claiming donations of barter credits to deductible gift recipients. This practice is unlawful and may trigger a tax audit and significant penalties.
According to the ATO, the scheme is enabled by barter exchanges issuing credits with a nominal face value far higher than the amounts actually paid by participants.
Get certainty on commercial deals
To help business owners understand the tax implications of proposed commercial transactions, the ATO has created a series of case studies and videos.
The current case studiescover a range of scenarios, including a small business capital gains tax (CGT) rollover for a primary production business, the CGT implications when two siblings wish to sell family company shares to a third sibling, and the restructuring of a small company and subsequent share sale.
The information resources are designed to show how engaging early with the ATO can help resolve tax issues before lodgement and avoid later tax disputes.ii
Protect your GST and fuel tax credits
Some taxpayers are missing out on GST and fuel tax credits because they are not claiming the credits within the four-year time limit, which generally expires four years from the due date of the original BAS in which the credits should have been claimed.
Lodging an amendment or voluntary disclosure does not protect these credit entitlements, as the ATO must process amendments and include it in your tax assessment within the time limit.iii
Once GST and fuel tax credit entitlements expire, the ATO has no discretion to amend a tax assessment to include the credits. Good processes and regular reviews are essential to avoid missing out.
Avoiding delays when winding up SMSFs
The ATO is reminding trustees to follow the correct procedure when winding up their SMSF if they wish to avoid errors and delays.iv
Trustees have 28 days after lodging their final SMSF annual return (SAR) to complete the final rollover before the fund can be officially wound up. Failing to roll out all member benefits can result in significant delays, an inability to use SuperStream and requires lodgement of an additional SAR if assets remain after the wind-up date.
Trustees need to keep their contact details updated, promptly finalise outstanding transactions and pay debts, close the SMSF bank account only after confirming the wind-up, and roll over most of the fund’s asset before lodging the final SAR.
ATO help with natural disasters
Following the series of natural disasters around the country, the ATO is reminding taxpayers that support is available for those affected by disasters such as bushfires, cyclones, drought, flood or storms.v
For major disaster areas, the ATO may pause correspondence and provide extra support depending on circumstances. This may include:
extra time to pay tax debts
more time to lodge tax returns, BAS or other obligations
personalised payment plans
remission of penalties or interest charged during the affected period.
If you need more information or clarification about any of the recent tax changes, please give us a call.
Warren Buffett: timeless lessons from a lifetime of investing
Warren Buffett has never looked much like a financial celebrity. He lives in the same house he bought in Omaha in 1958, prefers simple food, and has built one of the greatest investment records in history using his long-term value investing strategy.
Now stepping down at 95 years’ old from his role as CEO on the board of Berkshire Hathaway, one of America’s foremost holding companies, Buffett leaves behind a legacy that has earned him the enduring title of “the Oracle of Omaha.”
His story offers valuable lessons for anyone navigating markets, especially during times of uncertainty.
Time, patience, and the ability to change your mind
Perhaps Buffett’s greatest advantage was not a secret strategy or a rigid set of rules. It was time, combined with good judgment. He began investing as a teenager and stayed invested for more than seven decades. The power of compounding did much of the heavy lifting, but only because he stayed the course long enough to let it work.
As Buffett famously put it:
“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
That long-term mindset helped him ignore short-term noise, particularly during market downturns. When markets fell, Buffett did not panic. He looked for opportunity.
“Be fearful when others are greedy, and greedy when others are fearful.”
But patience did not mean stubbornness. One of the most misunderstood aspects of Buffett’s success is the belief that he simply bought and held forever. In reality, he sold. He adapted. He exited investments when the facts changed. He acknowledged mistakes, sometimes very publicly, and moved on. Over time, entire sectors he once avoided were embraced, while others he once favoured were left behind.
“When the facts change, I change my mind. What do you do, sir?”
His real edge was not blind adherence to a philosophy, but the ability to apply principles flexibly. He knew when to stay invested, when to add, and when to walk away. That combination, long-term conviction paired with the willingness to change course, is far harder than following any checklist and far rarer in practice.
Staying calm when markets are down
Buffett’s calm during market stress has become legendary. He understood that volatility is not a flaw in markets. It is a feature of them. Declines were not signals to abandon investing altogether. They were moments that tested discipline and perspective and rewarded those able to separate temporary discomfort from permanent loss.
As Buffett succinctly observed:
“The stock market is a device for transferring money from the impatient to the patient.”
Importantly, his focus remained on underlying businesses and long-term outcomes, not daily price movements. That emotional discipline allowed him to act rationally when others could not, particularly during periods of widespread pessimism.
Investing in what you understand
Another cornerstone of Buffett’s approach was simplicity. He avoided businesses he could not understand and stayed within his “circle of competence.”
“Never invest in a business you cannot understand.”
This discipline kept him out of many speculative booms and fashionable trends. He was not trying to predict the next big thing. He was trying to make sensible decisions repeatedly over long periods of time, accepting that avoiding major mistakes can matter just as much as finding great opportunities.
A crucial caveat: context matters
While Buffett’s principles are powerful, his success is sometimes oversimplified. He invested with extraordinary scale, deep access, influence, and capital. He could survive mistakes that would permanently damage the average investor, negotiate unique deals, and wait far longer for outcomes to play out.
This means that while his thinking is broadly applicable – patience, discipline, and flexibility – his exact methods are not always transferable. Blindly copying concentrated bets or individual stock picks without those advantages can introduce risks that do not show up in hindsight success stories.
The real legacy
Warren Buffett did not succeed because he followed rules rigidly. He succeeded because he understood them well enough to know when to bend them, and when to abandon them entirely.
His legacy is not a list of stocks or a fixed formula. It is a reminder that successful investing is as much about judgment, adaptability, and emotional control as it is about time horizons or valuation metrics.
In that sense, Buffett’s greatest lesson is not “do what I did,” but “think carefully, stay patient, and remain willing to change when the world changes.”
As we come to the close of 2025, the team at Dominion would like to extend a sincere thank you for your continued support throughout the year. It’s been another big year, and we truly appreciate the trust you place in us.
With the festive season upon us, we’d also like to wish you and your loved ones a safe and Merry Christmas, and a happy and prosperous New Year.
Our office will close from 5pm on Friday 19th December 2025 and re-open Monday 12th January 2026 at 9am.
We look forward to continuing to work with you in 2026 and beyond.
With summer now upon us, it is the season of family gatherings, end of year celebrations, and holidays. We would like to wish you and your family a happy and safe festive season.
The economy came under renewed pressure in November as inflation accelerated. The first full monthly CPI release showed annual inflation rising to 3.8% in October, up from 3.6% the previous month. The Reserve Bank kept rates on hold in November and some economists are warning a rate rise may be on the horizon, possibly before the end of the year.
Despite the uncertainty, consumers may be getting their mojo back. The Westpac–Melbourne Institute Consumer Sentiment Index surged in November to its highest level since February 2022.
Unemployment eased a little to 4.3% in October after hitting a four-year high of 4.5% in September but wage growth remains higher, prompting concern from the RBA over the continued tight labour market.
Equity markets were volatile around the world thanks to uncertainty over the growing AI bubble, rising government debt and the ever-changing US tariff regime. Surging commodity prices halted the slide of the Australian dollar in the last week of the month with gold hitting record highs and iron ore prices holding firm. The Australian dollar hit a two-week high, finishing the month at $0.653.
Tax Alert December 2025
Getting ready for Payday Super and clearing up FBT myths
Big payroll changes are coming. From 1 July 2026 employers must pay super contributions at the same time wages, not quarterly. The ATO is also cracking down on fringe benefits tax (FBT) compliance, especially when it comes to work vehicles. Here’s what you need to know.
Payday Super: what employers must do
Employers will need to ensure they start preparing their payroll systems following the passing of the Treasury Laws Amendment (Payday Superannuation) Act 2025 on 4 November 2025.i
From 1 July 2026, employers will be required to make superannuation contributions for their employees at the same time as they pay their salary or wages, rather than quarterly as currently required.
More frequent super contributions will help employees’ super balances grow faster. But, for employers, it may affect cashflow by removing access to funds previously held until quarterly payments, so planning ahead is essential.
Small Business Clearing House closing
The ATO is again reminding employers that as part of the Payday Super reforms, the Small Business Super Clearing House (SBSCH) will close on 1 July 2026.
Although new users can no longer register to use the service, small businesses who are still using the SBSCH, need to begin transitioning to alternative services.
During the transition process, most employers will need to review their current software and payroll packages for super payment functions, or check the options offered by super funds, commercial clearing houses and payroll providers. If you are unsure of your options, you can contact us.
ATO’s compliance approach
The ATO has releaseddraft guidelinescovering its compliance approach during the first year of operation for the Payday Super legislation.
Employers will be classified into three risk zones, with the ATO prioritising its compliance resources on employers classified as being high or medium risk. The risk zone can change from pay period to pay period.
High risk employers will be those who have one or more ‘final individual SG shortfalls’ that have not been reduced to nil by the 28th day following the end of the quarter the qualifying earnings were paid, or if the employer is not otherwise in the low or medium risk zones.
Payroll governance in the spotlight
Small business employers are being encouraged to take a closer look at their payroll governance to check they are meeting their employer obligations in relation to taxes (PAYG, FBT), reporting (Single Touch Payroll) and super (SG and other super contributions).
According to the ATO, employers must have payroll governance measures that are effective and fit for purpose, which means having systems and processes tailored to their business’ structure, size, complexity and industry.
These systems should support the business to comply with its legal obligations and help it to identify and mitigate risks (such as administrative errors, employee fraud and cybercrime).
SMSFs and NPP readiness
From 1 July 2026, all SMSFs and super funds will need to ensure they can receive and allocate New Payment Platform (NPP) payments.
The NPP is a real-time payments platform used across Australia and it improves how quickly contributions can be received by employees’ super funds.
The changes mean SMSFs will be required to accept contribution payments and related data from employers via the super industry’s SuperStream standard, which uses a standardised electronic format.
Dual cab utes: FBT myths
Dual cab utes remain in the ATO’s sights as there is a common myth that employee use of these popular vehicles is automatically exempt from FBT.
However, the ATO is warning employers that providing a dual cab ute to an employee to complete their duties and also making it available for personal use may be subject to FBT.
For an employee’s personal use to be exempt, the vehicle must be both an eligible vehicle and only used for limited private use, meaning minor, infrequent or irregular use. FBT applies if the vehicle is used as the family taxi or for weekend personal trips.
If you need assistance implementing any of these changes before 1 July 2026 or you need a better understanding of how FBT works, reach out to us, we’re always here to help.
As the festive season approaches, there is a noticeable shift in the air. The days grow longer, school terms wrap up, and communities across the country begin to prepare for end-of-year celebrations in all kinds of ways.
For some, it is about unpacking boxes of decorations, preparing familiar family recipes and racing around the shops. For others, it is time to plan a beach day, host a casual BBQ, or simply enjoy a well-earned break from routine.
The festive season in Australia looks different for everyone. That’s part of what makes it so special. We live in a society full of rich cultural traditions. Some festive traditions have been passed down for generations, such as midnight Mass, lighting candles for Hanukkah, or gathering for a family meal on Christmas Day. Others have come to us through popular culture, often shaped by images of snowy winters and roaring fireplaces that don’t quite fit our sunny, southern hemisphere reality.
Think hot roast dinners in 35-degree heat, matching Christmas jumpers despite the sweat, and singing about snowmen and sleighbells.
And that’s okay. That’s part of the rich tapestry that is celebrating the festive season.
However, while tradition can be beautiful, it’s also worth asking yourself: do these traditions still bring joy to my life? Or am I doing them out of habit or obligation?
Reducing stress, reclaiming joy
The lead-up to the holidays can easily become overwhelming. This time of year often brings with it a long list of expectations about what to cook, how to decorate, where to be, and what to buy.
Trying to meet every expectation, real or imagined, can drain the joy right out of what is meant to be a time of celebration.
By letting go of pressure and embracing flexibility, we can shift the focus back to what really counts. Laughter. Connection. Rest. Reflection.
It is okay to opt out of what no longer fits. In fact, doing so often creates more space for what actually feels meaningful.
Rethinking what celebration looks like
While traditions can be a wonderful way to connect with our roots, they are not set in stone. Over time, life changes. Families grow and shift. Priorities evolve. The way we mark special moments can grow with us.
So, it is worth pausing to ask: are these traditions still adding joy to my life? Or am I continuing them out of pressure, or a sense of obligation?
Giving yourself permission to do things differently can be both freeing and fulfilling.
Making meaning in your own way
Reimagining tradition does not mean abandoning everything you love. It means choosing what feels right for you and creating space for joy, connection and rest – however that looks.
You might decide to swap the roast for prawns and salad and the pudding for a pavlova. Or ditch the mess of wrapping paper and presents in favour of shared experiences. You could even celebrate on a different day to reduce stress. Some people find joy in having a picnic in a beautiful location, taking a family beach walk at sunset, or simply spending the day unplugged from screens.
For others, creating new traditions might involve volunteering in the community or cooking dishes from their cultural heritage.
Whether your festive season is full of people or quiet moments, it only needs to reflect what matters most to you.
The season is yours to shape
There is no one way to celebrate. What is right for one person may not suit another and that is the beauty of it. The festive season does not have to look a certain way to be valid or joyful.
You might still love baking the same cake your grandmother made or singing carols in your street. Or you might find joy in starting completely new customs that reflect your values and lifestyle today. Either way, the important thing is that your celebrations feel true to you.
Small moments can become meaningful rituals too. A quiet morning coffee, a favourite song playlist, or calling someone you have not spoken to in a while are all things that can bring warmth and joy without adding stress.
Spring is here, bringing longer days and an opportunity to venture outdoors and enjoy the warmer months ahead.
A higher-than-expected jump in inflation figures may prompt the RBA keep interest rates on hold at this month’s meeting. Headline CPI climbed to 2.8%, up from 1.9%. The trimmed mean, the RBA’s preferred gauge of underlying inflation, also rose to 2.7% in July from 2.1% in June.
Markets responded cautiously, though the S&P/ASX 200 still edged higher for the month and notching another all-time high. The rally was driven by mining and banking stocks.
The unemployment dipped slightly to 4.2% in July and business confidence is upbeat. The number of Australian businesses rose by 2.5% over the past financial year to more than 2.7 million. Total wages and salaries increased 5.9 per cent year-on-year. The momentum appears to be lifting consumer sentiment with the Westpac-Melbourne Institute Index posting a solid gain 5.7% in August, a 3.5 year high.
As Aussie dollar finished the month at US65c and continues to be shaped by global factors.
In the US, the S&P 500 hit records highs, led by tech giants, as investors weighed tariff impacts and speculated on future rate cuts.
Strategies for an unexpected retirement
The best time to start planning for retirement is yesterday.
But the second-best time? Today.
About two-thirds of Australians retire earlier than they anticipated because of unexpected events such as job loss or redundancy, they need to care for a family member, have a sudden illness or injury, problems at work or a partner’s decision to retire.i
But, whether you’re in your 50s, 60s, or even beyond, it’s never too late to take meaningful steps toward a more secure and fulfilling retirement.
The good news is that with the right guidance and a few smart moves, you can still build a retirement plan that reflects your values, supports your lifestyle and gives you peace of mind.
Where to begin
Before you make any changes, it’s important to understand your current financial position. This includes:
your superannuation balance
other savings or investments
debts such as your mortgage, credit cards and personal loans
expected retirement income sources including the Age Pension, rental income and part-time work
Boost your super
Even if you’re starting later, there are ways to accelerate your super growth using:
Salary sacrifice Contributing pre-tax income into super can reduce your taxable income while boosting your retirement savings.
Personal contributions You may be eligible for a tax deduction or government co-contribution depending on your income.
Catch-up contributions You may be eligible to add to your super but be aware of the caps on contributions.ii
These strategies can be especially powerful in your 50s and 60s, when your income may be higher and retirement is on the horizon.
It’s also a good idea to regularly consider your super investment options and review your risk tolerance and time horizon.
Deal with debt
If possible, getting your debt under control before you retire is a useful strategy.
You could consider using your superannuation or other savings or downsize your home to pay off a mortgage or other loans. But first, it’s essential to carefully check the tax impact, the effect on your super and whether any potential government benefits will be affected.
Reassess your lifestyle goals
Retirement isn’t just about money, it’s about how and where you want to live, how much travel you’d like to do and if you’d continue to work part-time.
Clarifying your lifestyle goals helps shape your financial strategy. It also ensures your retirement plan reflects your values, not just your bank balance.
How much will I really need?
Aim to create a retirement budget. Estimate your future expenses including housing, food, travel and healthcare and compare them to your expected income. This helps identify any shortfalls and guides your savings strategy.
You will also need to consider the amount of time you might spend in retirement. This will depend on when you retire (planned or unexpected) and how long you live. This is called longevity risk. Given life expectancy is unpredictable, there is a possibility that your retirement savings may not last throughout retirement.
Understand your entitlements
Many Australians are eligible for government support in retirement, including:
Age Pension Based on income and assets, available from age 67 (for those born after 1957).
Concession cards For discounts on healthcare, transport and utilities.
Rent assistance If you’re renting privately and receive the Age Pension.
Even if you don’t qualify now, you may be able to restructure your finances to maximise future entitlements.
Review regularly and remain flexible
Retirement planning isn’t a one-time event. Life changes and so should your strategy. Regular reviews help you:
Adjust for market movements or legislative changes
Update your goals and spending patterns
Ensure your estate planning is current
Flexibility is key. Whether you retire gradually, take a sabbatical, or pivot to a new venture, your plan should evolve with you.
Next steps
Retirement planning is about taking the next step rather than chasing perfection. Whether you’re starting late or simply refining your strategy, every step you take now helps shape a more secure and meaningful future.
And remember that retirement isn’t an end point. It’s a new beginning even if you retire earlier than you anticipated. With the right plan in place, you can step into this next chapter with clarity, confidence and purpose.
We’d be happy to help you review your current retirement plan and identify any gaps in retirement goals and create a strategy should you need to retire earlier than expected.
While sweeping tax reforms aren’t expected this year, several targeted changes could affect your bottom line.
Tax debt no longer deductible
The ATO is reminding taxpayers the general interest charge (GIC) applied on an unpaid amount of tax or other liabilities after the due date is no longer tax deductible.i
The current rate applied to GIC debts is 11.17 per cent, with the interest charge compounding daily.
Prior to 1 July 2025, GIC could be claimed as a deduction in your tax return, but with the deduction no longer available, small businesses carrying any tax debts will now pay more.
Back pay reporting change
From the start of the 2025-26 tax year, the way that back payments to employees are treated and reported has changed.ii
In previous tax years, back payments accrued more than 12 months prior and exceeding $1,200 were reported at Lump Sum E in Single Touch Payroll (STP) reports.
The $1,200 threshold has now been removed, so all back payments accrued more than 12 months ago must be reported regardless of the amount.
Small Business Clearing House to close
The ATO’s Small Business Clearing House (SBCH) will shut down ahead of the new Payday Super regime launching 1 July 2026.iii
Small businesses with 19 or fewer employees could use the SBCH to pay their quarterly super contributions to the super funds selected by eligible employees.
The ATO says it will provide information to small businesses about transitioning to alternative super payment services, but businesses are being encouraged to take steps towards changing their payment arrangements before 1 July 2026.
Support for new small businesses
The ATO is providing extra support for new small business owners to help them understand and comply with their tax, super and registry obligations.
ABN holders will receive a series of emails with tips on their ABN obligations, business structure, registering for GST and employer responsibilities.
Focus on GST compliance
The ATO is also encouraging small businesses to set aside their GST payments in a separate bank account to avoid being caught out when it comes time to pay their obligations.iv
Compliance with GST registration and payment obligations remain an ongoing concern for the regulator, with the current annual tax gap estimated to be around $8 billion.
GST registration is compulsory when turnover exceeds $75,000 or if a business provides taxi, limousine or ride-sourcing services.
Notifying SMSF changes
SMSF trustees are being urged to ensure they notify the ATO whenever modifications are made to their SMSF.
Changes related to the fund’s contact details, structure, status or bank account must all be submitted to the regulator within 28 days.
Once the ATO receives the change details, the regulator will send an alert vis SMS or email to safeguard the SMSF against potential fraud or misconduct.
Work-related deductions continue to grow
Release of the annual Taxation Statistics Report for 2022-23 shows work-related expenses continue to dominate the tax deductions claimed by individuals, ensuring the ATO will maintain its current focus on this area.
Work-related expenses accounted for 50 per cent of individual deduction claims, with 10.3 million Australian taxpayers claiming an average of $2,739 per person in 2022-23.
Need help navigating the changes?
If any of these updates affect your business or personal tax situation, please contact us for help to understand your obligations, adjust your reporting processes and to plan ahead.
When you start researching for a trip overseas it’s easy to be swayed by what can be a lingering bad reputation of a region or country. The landscape of travel is constantly shifting and what may once have been a no-go zone can now be a dream destination – and vice versa.
Some of today’s most compelling places to visit were once dismissed as too dangerous, politically unstable, or simply unattractive. Thanks to urban renewal, political shifts, and the sheer resilience of local communities, these destinations have reinvented themselves and now welcome travellers with open arms.
Here are a few places that were once avoided but now deserve a spot on your bucket list.
Albania: Europe’s little secret
Let’s start with Albania. The once-hermit kingdom of Europe, it spent most of the 20th century shut off from the world under a dictatorship. Today? It’s a Mediterranean dream in disguise.
While tourists crowd into Italy and Greece, Albania’s beaches remain blissfully peaceful. The mountains are rugged, the food is incredible (think olive oil, cheese and stunning wines), and the prices? Almost suspiciously low. It’s a reminder that the best destinations are often the ones that haven’t been given the glossy treatment – yet.
And by going now, you’re not just ahead of the trend, you’re helping shape the nation’s tourism story from the ground up.
Rwanda: The quiet recovery
Few countries have flipped their narrative like Rwanda has. Once known for the horrors of the 1994 genocide, it is now one of Africa’s safest, cleanest, and most forward-thinking destinations. Kigali, the capital, is plastic-free, progressive, and is pulsing with creativity.
But the real magic lies beyond the city. Rwanda’s forests are home to some of the world’s last remaining mountain gorillas and tracking them in Volcanoes National Park is one of the most profound wildlife experiences on the planet. It’s not cheap, but every permit supports conservation and local communities so you can feel good about travelling with purpose.
There’s a quiet pride here and a sense of renewal. And for travellers, it offers that rare thing: a trip that’s humbling, hopeful, and unforgettable all at once.
Sri Lanka: The comeback island
Hop over to Sri Lanka, and you’ll find another country rising from the ashes of conflict and challenges. After decades of civil war, the 2004 tsunami, and an economic tailspin that led to widespread protests in 2022, the island nation has really started to shine as a holiday destination.
From leopard-spotting in Yala National Park to sipping world-class tea in the hill country, the island is a compact slice of paradise. The trains rattle their way through lush green hills, elephants roam wild, and its beaches are postcard perfect. Sri Lanka isn’t hiding its past; it’s simply writing a better future. It’s travel that feels good – and does good.
Vietnam: From conflict to cool
Vietnam is a nation that’s spun a difficult history into a compelling narrative. Once the setting for a war that defined an era, it’s now the backdrop for stunning cuisine and jaw-dropping natural beauty.
But what links Vietnam to places like Sri Lanka is its authenticity. The chaos of Hanoi’s Old Quarter, the sleepy magic of Hoi An, the emerald waters of Ha Long Bay all strike a chord when you remember just how far the country has come.
And yet, prices remain low and you can still find yourself the only tourist at a countryside café sipping egg coffee like a local.
The final boarding call
So, what do these places all have in common? They’re not perfect. And that’s exactly why they’re perfect. Destinations that have overcome hardship – be it conflict, natural disasters, or political upheaval – often offer something more rewarding than your average sun-and-souvenir spot.
These are places where your visit helps fuel recovery, where locals genuinely want to welcome you back, and where the scars of the past give way to a kind of hospitality you won’t find in more polished places.
So, skip the predictable and go where the stories are. Because sometimes, the best places to visit are the ones that were once off the map entirely.
Note: It’s crucial to stay informed about the current safety situation in any destination, even those that have undergone positive transformations.
Bonds are not usually the flashy upstarts of the investment world with their every move reported, like stocks.
But the Trump Administration’s extraordinary refashioning of world trade, with on-again off-again tariffs of eye watering amounts, has put bond markets in a similar position to share markets – in turmoil.
So, with the bond markets attracting more attention than usual, we take a closer look at the asset class.
What is a bond?
A bond is a bit like an interest-only loan and there are many different types of bonds available. A government (government bond), or sometimes a large company (corporate bond), issues bonds to investors to raise funds for infrastructure or, in the case of a company, for expansion.
Large institutional investors tend to favour some of the more complex types. Retail investors are more often interested in fixed-rate bonds, known as a fixed-income investment because of the regular payments made to the investor (or the coupon interest rate). The principal (called the face value) is repaid at an agreed date when the bond matures.
These bonds can also be traded on a secondary market by those who’ve chosen to sell their bonds before maturity. In this case, depending on the state of the markets and the economy, the amount they’re worth, or their capital value, may be higher or lower than the face value, which is fixed.
The most common fixed-rate bonds, issued by governments, are generally considered more stable. Nonetheless, all bonds are assigned a credit rating by independent rating agencies such as Standard & Poor’s or Moody’s.
Australia’s Commonwealth bonds, issued by the federal government, are AAA-rated reflecting strong fiscal management, economic stability and low default risk.i
State governments and quasi-government organisations such as the World Bank also issue bonds. The risk level for this category of bonds can vary.
Large companies, looking to expand or start new projects, often use bonds as a way to raise funds. Corporate bonds generally pay higher interest but are considered slightly more risky.
How to buy bonds
Investing in bonds can help to diversify a portfolio and provide a steady stream of income but for those with no knowledge or experience of the market, it is important to get quality professional advice and speak to us.
For example, if you had been relying on the conventional wisdom that bond markets are often up when share markets are down, recent share market activity would have delivered a shock. The usual flight to safety from share price volatility to bonds did not happen in the United States where, for a time, both markets were falling.
While it is possible to buy bonds directly when there is a public offer, it can be difficult for smaller individual investors to participate because of the large minimum transactions required.
Instead, most retail investors look to bond funds, bond exchange traded funds (ETFs) or managed funds for exposure to the bond market. The variety of funds on offer can help to diversify a portfolio by giving access to a range of different markets.
What affects bond rates?
Interest rate movements directly affect bond prices on the secondary market.
When interest rates rise, bond prices fall because newly issued bonds will be at the higher rate making older bonds less attractive and reducing demand.
Conversely, bond prices rise when interest rates fall because new bonds will offer the lower rates meaning there will be higher demand for older bonds, driving their prices up.
Bond prices are also influenced by economic conditions and investor sentiment.
Rising inflation can cause bond prices to rise while strong economic growth may decrease bond prices because investors often prefer to buy shares. Bonds with a lower credit risk, such as AAA-rated government bonds, tend to attract higher prices.
Be alert for scams
The Australian Securities and Investments Commission (ASIC) is warning investors about scammers using bond investments as a lure.ii
In one report earlier this year, scammers claimed to be offering sustainability investment bonds in Bunnings Warehouse.
The scam offered higher than market returns and claimed that investments are protected by the government. It included links to Bunnings genuine website although the company does not offer bonds or any investment products.
ASIC’s MoneySmart website warns that scammers often impersonate real companies. They may use the name of a real person working at the bank or company they say they represent.iii
“Be wary of surprise contact and independently verify who you are dealing with,” says ASIC. For detailed steps, see check before you invest.
If you would like to learn more about your options for investing in bonds, please give us a call.
How do bond yields change?
When bond prices fall, yields rise because the fixed coupon rate represents a higher percentage of the lower price. Similarly, when bond prices rise, yields fall because the fixed coupon rate is then a smaller percentage of the higher price.
For example, suppose interest rates fall. New bonds that are issued will now offer lower interest payments.
This makes existing bonds that were issued before the fall in interest rates more valuable to investors, because they offer higher interest payments compared to new bonds. As a result, the price of existing bonds will increase. However, if a bond’s price increases it is now more expensive for a potential new investor to buy. The bond’s yield will then fall because the return an investor expects from purchasing this bond is now lower.iv
