SUMMER 2025
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.
i Treasury Laws Amendment (Payday Superannuation) Act 2025 – Federal Register of Legislation
Celebrating with heart – not habit
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.
Whatever this season means to you…
We hope it brings you joy.