Virtual CFO Services
Bookkeeping CFO Services Taxation & Tax Tips

Virtual CFO vs Bookkeeper vs Tax Accountant: What Growing Businesses Really Need (and When)

October 6, 2026
chief financial officer, business growth, business growth, outsourced cfo services, financial complexities, busienss goals, financial decisions, tailored advice, financial decisions

“The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.” — Peter Drucker

If you’re running a growing business, you’ve probably had this moment: the numbers are coming in, the team is busy, sales are moving… and yet you don’t feel financially clear. You’re not alone.

At Bishop Collins Chartered Accountants, we work alongside growth-minded business owners across Sydney and the Central Coast who want to scale sustainably, make better decisions, and stop feeling like they’re guessing. One of the most common questions we hear is:

“Do I need a bookkeeper, a tax accountant, or virtual CFO services?”

The honest answer is: you may need all three but at different times, and for different outcomes.

In this guide, we’ll break down what each role actually does, where the gaps usually appear, and how to choose the right advice for your business stage.

Quick snapshot: the difference in plain English

  • Bookkeeper: keeps the engine running (transactions, payroll, reconciliations)

  • Tax accountant: keeps you compliant, reduces risk  and minimises tax (returns, structuring, tax planning)

  • Virtual CFO: helps you steer (strategy, forecasting, financial management, decision support)

When businesses grow, the complexity grows too – and “doing the books” is no longer enough to drive business success.

What a bookkeeper does (and doesn’t)

A strong bookkeeper is essential for most businesses. They typically handle:

  • Bank reconciliations and coding

  • Accounts payable/receivable

  • Payroll and super

  • BAS preparation support

  • Keeping your financial data clean and current

This is the foundation of good financial management.

But here’s the catch: bookkeeping is not strategic financial planning.

A bookkeeper can tell you what happened. They’re not usually responsible for explaining why it happened, what it means for cash flow, or what you should do next.

When a bookkeeper is enough

A bookkeeper is often enough when:

  • You’re a stable small business with predictable revenue

  • Cash flow is steady

  • You’re not planning major hires, expansion, or funding

  • You mainly need accurate reporting and admin support

When a bookkeeper becomes a bottleneck

You’ll feel the limits when:

  • You’re experiencing rapid growth and the numbers are moving fast

  • You need budgeting and forecasting, not just history

  • You’re making big decisions without real time insights

  • You’re unsure whether you can afford the next hire, location, or system

That’s usually the point where businesses start looking for a CFO service.

What a tax accountant does (and doesn’t) do

A tax accountant’s job is to help you meet obligations and reduce tax legally. This can include:

  • Tax returns and compliance

  • Tax planning and structuring

  • Advice on deductions, timing, and ATO risk

  • Business advisory around entity structures and agreements

In Australia, local knowledge matters. A Sydney-based adviser who understands your industry expertise and the regulatory environment can help you manage risks and avoid expensive mistakes.

But tax is only one part of the picture.

A tax accountant may not be embedded in your weekly decision-making, and they’re not always set up to run ongoing forecasting, scenario planning, or KPI dashboards.

Why growing businesses outgrow “compliance-only” support

As your business grows, you’re not just managing transactions – you’re managing:

  • Capacity constraints

  • Pricing pressure

  • Hiring decisions

  • Margin drift

  • Operational complexity

  • Foreign currency transactions

  • Stock Holding efficiencies

This is where many business owners feel isolated: you’re carrying the strategic decisions, but you don’t have senior financial expertise beside you.

That’s exactly what virtual CFO services are designed to solve.

Virtual CFO services: what they are and why they matter

Virtual CFO services provide high-level financial strategy, budgeting, and forecasting to businesses on a part-time or contract basis.

A virtual CFO performs a chief financial officer’s duties remotely, typically as a contractor. You get expert guidance and financial expertise without the overhead of a full time CFO.

For context, a full-time CFO in Australia (and especially in Sydney) can command $200,000–$250,000+ per year, plus on-costs. The business may not need this level of expertise full time and so are not efficiently using this resource.

Many businesses instead invest in virtual CFO services via a monthly retainer (often $3,500 to $10,000+ per month, depending on business size and scope).

The goal isn’t to “add another adviser.” It’s to add a strategic financial partner who helps you move the business forward.

Virtual CFO Services

When you engage virtual cfo services, you’re not just paying for reports – you’re paying for clarity.

A strong virtual CFO will typically:

  • Build budgeting and forecasting based on your real drivers

  • Provide strategic advice for strategic decision making

  • Help you streamline operations with better financial systems

  • Work alongside your team and finance team to lift capability

  • Provide board-ready reporting and investor updates

This is why virtual CFO services are often the missing link between “the numbers are done” and “the numbers are useful.”

Next Level Financial Reporting

Good financial reporting isn’t just a P&L printed each month.

A virtual cfo should provide financial reporting that:

  • Explains what changed and why

  • Highlights risks early (not after the damage is done)

  • Connects performance to strategy

  • Produces actionable insights you can act on this week

If your reporting doesn’t change your decisions, it’s not doing its job.

An Expert CFO Service

A CFO service is about leadership, not admin.

In practice, a CFO service might include:

  • Monthly performance reviews using KPIs and benchmarking 

  • Forecasting and scenario modelling

  • Pricing and margin analysis

  • Job costing support (where relevant)

  • Strategic financial planning for growth opportunities

  • Corporate advisory support for big moves

The best CFO service is proactive — not just available when you ask.

Providing Financial Insights

Financial insights are the difference between reacting and leading.

A virtual CFO can translate financial data into:

  • Clear priorities

  • Better timing decisions

  • Smarter hiring and investment choices

  • Early warnings on cash flow

That’s how you protect profitability while still driving growth.

Driving Business Success

Business success is rarely about one big decision. It’s about a hundred small decisions made with the right information.

When you have the right advice, you can:

  • Focus on what actually drives business performance

  • Avoid over-hiring or under-investing

  • Reduce stress and improve confidence

  • Scale sustainably instead of “growing broke”

Full Finance Team

Even if you don’t have a big finance team, you still need financial leadership.

A virtual CFO can provide seamless integration with your existing team (bookkeeper, internal staff, external advisers) and lift the standard of financial management across the business.

For many small businesses, this is the first time they’ve had experienced virtual CFOs guiding the rhythm of decision-making.

The Art Of Capital Raising

If you’re preparing for capital raising (or even just a bank facility increase), you’ll need more than tidy books.

A virtual CFO can help you:

  • Prepare lender-ready packs

  • Build investment-ready financial modelling

  • Create credible forecasts and assumptions

  • Improve investor reporting and narrative

It’s not just about getting funding – it’s about getting funding on terms that support sustainable growth.

Outsourced CFO

An outsourced CFO (or outsourced cfo services) gives you access to senior financial expertise without committing to a full time CFO.

This flexibility is especially valuable when:

  • You’re in a new business stage

  • You’re scaling quickly

  • You need strategic financial support for 3–12 months

  • You want the right advice, but not a permanent hire yet

When Is An In House CFO Right?

An in house cfo can be a great fit when:

  • You’re large enough to justify full-time leadership

  • You need deep operational integration daily

  • You’re running multiple entities, locations, or complex finance operations

But many growing businesses aren’t there yet – and hiring too early can strain cash flow.

A virtual CFO can bridge the gap until the economics make sense.

Rapid growth is exciting – and dangerous.

Growth often creates:

  • Cash flow pressure (even with strong sales)

  • Margin erosion

  • Operational strain

  • Forecasting blind spots

Virtual CFO services help you stay ahead with forecasting, budgeting, and cash flow management so the business grows without breaking.

Expertise In Tax Planning That Optimises Tax

Tax planning works best when it’s integrated into the bigger picture.

A virtual CFO can work alongside your tax accountant to align:

  • Forecasting with tax outcomes

  • Structure decisions with strategy

  • Timing of purchases, dividends, and investments

This is where Bishop Collins’ combined tax and advisory lens becomes powerful – you’re not choosing between “strategy” and “tax.” You’re connecting them.

KPI Tracking

KPI tracking is where strategy becomes measurable.

A virtual CFO helps you choose the few KPIs that matter, set targets, and review them consistently – so you’re not drowning in dashboards.

Typical KPI tracking might include:

  • Gross margin

  • Cash conversion cycle

  • Labour efficiency

  • Job profitability

  • Customer acquisition cost

  • Forecast accuracy

When should you hire each role? A simple decision guide

  1. Start with a bookkeeper when you need clean data, consistent payroll, and reliable admin.

  1. Add a tax accountant when you need compliance, structure optimisation, and proactive tax planning.

  1. Bring in virtual CFO services when you need forecasting, strategic financial planning, and confident decision-making.

If you’re thinking, “We have the basics covered, but we’re still unsure what’s next,” that’s usually the moment a virtual CFO makes the biggest difference.

What to look for in a virtual CFO (especially in Sydney and the Central Coast)

Not all virtual CFO services are equal !!!  Look for:

  • Proven industry expertise in businesses like yours

  • Strong cash flow forecasting capability

  • Clear communication and a partner mindset

  • Ability to provide actionable insights (not just reports)

  • Local understanding of Australian tax and compliance realities

The right virtual CFO should feel like an extension of your team – helping you make strategic decisions, not just reviewing history.

A final word (and a practical next step)

Bishop Collins exists for business owners who feel the weight of decisions and the isolation that can come with growth. Our promise is simple: You’re Not Alone In Business.

If you’re not sure whether you need a bookkeeper, a tax accountant, or virtual CFO services, we can help you sense-check where you are now, what’s missing, and what support will move you forward.

  • Want clearer cash flow and forecasting?

  • Want reporting that actually drives decisions?

  • Planning growth, hiring, or capital raising?

Let’s map the right finance support for your next stage – so you can focus on building a stronger business with the right advice at the right time.

Use user to buy property - Bishop Collins Chartered Accountants
SMSF & Superannuation

With Recent Changes, Should You Use Super To Buy Property? SMSF Property Strategies for High Income Earners

September 1, 2026
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“Risk comes from not knowing what you’re doing.” – Warren Buffett

On paper, using your super to buy property looks like the ultimate win: lower tax, long‑term growth, and a tangible asset you can drive past on a Sunday. In reality, the ATO has very clear views on when you can use super to buy an investment property – and when it crosses the line.

This guide walks you through the real rules, tax outcomes and trade‑offs of using a managed super fund SMSF or other super strategies to buy property, so you can decide whether it fits your retirement plan or is a very expensive distraction.

And as of 10 August 2026, the rules around borrowing inside your SMSF to buy property have changed significantly, so it’s worth getting up to speed before you go any further.

First, get clear on how you want to use super to buy property

When people say “Can I use super to buy property?” they usually mean one of three very different things:

  • “Can my self managed super fund buy an investment property?”

  • “Can I use super to help me buy a house to live in as a first home buyer?”

  • “Can I use my super, once I’ve reached preservation age, to pay off my mortgage or buy property outright?”

Each path has its own superannuation laws, tax implications and traps. Superannuation only gets concessional tax treatment if it’s being used to provide retirement benefits, not to fund a lifestyle upgrade along the way.

So before you fall in love with a particular property, decide which of these questions you’re really trying to answer.

How an SMSF actually buys an investment property including fund members

A self managed super fund (SMSF) is a private superannuation fund with up to six fund members who are also the trustees. You run it yourself and you are responsible for making sure the fund is run properly and complies with ATO rules.

When an SMSF uses super to buy property, a few non‑negotiable rules apply:

  • The SMSF must pass the sole purpose test – it must be maintained solely to provide retirement benefits to fund members. No holiday house, no cheap rent for the kids, no weekend getaway for you.

  • The SMSF can only buy an investment property for investment purposes. Neither fund members nor any related party (family, entities you control) can live in the residential property or rent it.

  • All dealings must be at arm’s length – purchase price, rent, property management and sale of the property purchased must be on normal commercial terms.

Using a managed super fund SMSF this way lets you buy property directly, as follows :

  • Residential investment property (not for you or family to live in).

  • Commercial property, including premises leased to your own business at market rates.

The appeal is control – you can choose the exact investment property and its property management – but you also carry all the legal and compliance obligations that come with being a trustee.

Borrowing inside super: what’s changed with LRBAs from 10 August 2026

Many high income earners who don’t yet have enough super to buy an investment property outright have traditionally used a Limited Recourse Borrowing Arrangement (LRBA) to help their SMSF borrow the shortfall. Under an LRBA, the SMSF borrows money to buy a single asset held in a separate holding trust – if the loan goes bad, the lender’s rights are limited to that one property, so the rest of the fund’s assets are protected.

That pathway has now changed for residential property. You can still use an LRBA for Commercial Property.  As the ATO confirms, SMSFs can no longer enter into new LRBAs to buy residential property from 10 August 2026, following the passage of the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026. If you’re weighing up using super to buy an investment property, this is essential to understand before you go any further.

Here’s what the change means in practice:

  • New residential LRBAs are banned. From 10 August 2026, an SMSF can no longer borrow under an LRBA to buy a residential investment property. If your fund doesn’t already have enough to buy the property outright, borrowing inside super for residential property is no longer on the table.

  • Existing residential LRBAs are grandfathered. If your SMSF entered into an LRBA before 10 August 2026, the arrangement can continue, and refinancing remains possible – provided the loan principal isn’t increased.

  • The contract date is what matters. Contracts exchanged before 10 August 2026 are still protected even if settlement happens after that date – but a finance application or pre‑approval alone won’t lock in the old rules.

  • Business real property is unaffected. SMSFs can still use an LRBA to buy commercial property that’s used wholly and exclusively in a business – including offices, warehouses or your own business premises.

Aspect Before 10 August 2026 From 10 August 2026
New LRBA – residential property Allowed, subject to standard SMSF borrowing rules Banned – no new residential LRBAs
New LRBA – business real property (commercial) Allowed Still allowed
Existing residential LRBAs N/A Grandfathered; refinancing allowed without increasing the loan principal
Contracts exchanged before 10 August 2026 N/A Protected, even if settlement falls after the deadline

For any LRBA that’s still on the table – a grandfathered residential arrangement, or a new business real property purchase – the same tight rules apply:

  • Borrowed funds can only be used to acquire the property; they generally can’t fund significant improvements or a change to its character. Think generally if you need a Development Application (DA) from council its not allowed.

  • The loan must be on commercial terms – interest rate, loan‑to‑value ratio, security and repayments comparable to what a bank would offer an unrelated borrower.

  • Lenders typically expect SMSF fund members to have at least around $200,000 in combined super and to keep a liquidity buffer of about 10% of the purchase price, so the fund can meet repayments and property expenses.

If rental income doesn’t comfortably cover loan repayments and other property expenses, the SMSF can quickly find itself under pressure – and an investment that promised tax advantages can become a drag on retirement savings.

If borrowing inside super for residential property was central to your plan, it’s worth revisiting the strategy now – whether that’s saving to buy outright inside the SMSF, considering business real property instead, or investing outside super altogether.

Tax outcomes of buying investment properties in an SMSF

The main reason high income earners want to use super to buy an investment property is tax. Inside a managed super fund SMSF, the tax treatment is different from buying investment properties in your own name.

In accumulation phase:

  • Net rental income from the investment property is generally taxed at a flat 15%, which is usually lower than a high income earner’s marginal tax rate.

  • If the SMSF holds the property purchased for more than 12 months, the fund can receive a one‑third capital gains tax discount, effectively reducing the CGT rate to 10%.

Once the SMSF moves into pension phase and starts paying an income stream to fund members who have reached preservation age:

  • Investment earnings from assets supporting that pension – including rental income and capital gains – can be tax‑free within the relevant caps.

This means using super to buy property can shift income from your personal marginal tax rate into a lower or even zero‑tax environment, provided the SMSF stays compliant and the investment property performs as expected.

The real‑world costs and compliance load of using an SMSF to buy property

Compared with leaving your money in a large superannuation fund, using a self managed super fund to buy property is expensive and complex.

Typical realities:

  • Set‑up and first‑year costs for an SMSF that buys property are often in the $8,000–$15,000 range once you add establishment, legal, lending and advice costs.

  • Every year, SMSF fund members must arrange financial statements, lodge an annual return and pay for an independent SMSF audit.

  • You’ll also pay for property management, insurance, loan account‑keeping fees, legal fees and other ongoing property expenses.

The bigger risk isn’t just the cost; it’s getting the rules wrong. Breaching the sole purpose test, dealing with a related party on non‑commercial terms, or misusing borrowed funds can see the ATO treat the SMSF as non‑complying and tax assets at the highest marginal tax rate.

If you’re going to use super to buy an investment property through an SMSF, you need to be comfortable with a highly regulated process and ongoing professional advice.

Using super to buy a house you live in

Not every high income earner wants to buy property inside an SMSF. Some are more interested in using super to buy a house they will live in. Here, there are two key strategies that don’t involve a self managed super fund.

First home buyer: using the Home Super Saver Scheme

If you’re a first home buyer, the government’s First Home Super Saver Scheme (FHSS) can help home buyers use superannuation to save for a deposit.

In simple terms, the home super saver scheme allows eligible first home buyers to:

  • Make voluntary personal super contributions (concessional or non‑concessional) to their super fund.

  • Later withdraw up to $50,000 of these voluntary contributions, plus associated earnings, to put towards buying a house.

  • Contribute up to $15,000 per year towards the FHSS cap.

Because many of these contributions are taxed at 15% on the way in – often lower than your standard marginal tax rate – using the scheme can effectively let first home buyers save faster and save money on tax at the same time.

For couples who both qualify as a first home buyer, the combined FHSS cap can be up to $100,000, which can materially move the dial on a deposit for home buyers.

The trade‑off is flexibility: if you don’t end up buying a house, you generally can’t access those FHSS savings again until retirement.

Reaching preservation age and using super to buy property

If you’ve reached your preservation age and met a condition of release, you can usually access part or all of your super and use it to buy a house or pay off your mortgage.

Done well, this approach can:

  • Leave you with a debt‑free home, reducing ongoing living costs.

  • Free up cash flow so your remaining superannuation fund can focus on generating retirement income instead of servicing a home loan.

However, withdrawing a large lump sum from super reduces the amount left invested for your later retirement years and may affect your eligibility for the age pension, because your remaining super and other assets are assessed under the income and asset tests.

Should you use a managed super fund (SMSF) to buy property – or buy property another way?

Using a self managed super fund to buy property can make sense for some high income earners and business owners when:

  • For a residential investment property, your SMSF already has enough to buy it outright – since new residential LRBAs are no longer available from 10 August 2026, unless you’re relying on a grandfathered arrangement.

  • For business real property, lenders still typically expect well above $200,000 in combined super before an LRBA is realistic.

  • You want direct control and are comfortable with the responsibilities and strict rules that apply to SMSF fund members.

  • The investment property itself is a solid asset that stands on its own merits – realistic yields, sensible assumptions about long‑term capital growth, and rental income that comfortably covers loan repayments and property expenses.

On the other hand, you should be cautious – or simply walk away – if:

  • SMSF set‑up and ongoing costs would chew through a large chunk of your retirement savings.

  • The reason for wanting the property is being able to stay in, or occasionally use, the property.

  • The numbers only look good with aggressive assumptions about buying investment properties and future growth, or if you’re already stretched with existing loans. Otherwise your SMSF could end up in a cash flow crunch position.

In many cases, using the home super saver scheme as a first home buyer, or keeping super in a well‑diversified fund while you buy property outside super, can deliver a better balance of tax benefits, flexibility and simplicity.

Your next step: professional advice before you sign anything

Because using super to buy property via a managed super fund SMSF or FHSS is governed by strict superannuation laws, you should get professional advice before you move.

A good adviser will help you:

  • Test whether an SMSF is appropriate for you, or whether FHSS or other strategies can help you buy a house with less risk.

  • Model the tax outcomes of different ways to buy property – inside and outside super – at your marginal tax rate.

  • Build a plan that protects your long‑term retirement benefits while still helping you reach your property goals.

If you’re a high income earner or business owner wondering whether you should use super to buy property or simply keep building wealth another way, now is the time to have that conversation – before your “great opportunity” becomes the next SMSF cautionary tale.

Tax Accountant Sydney
Taxation & Tax Tips

Choosing the Right Tax Accountant Sydney: Red Flags to Avoid

August 21, 2026
small business owner, trusted accounting, sydney cbd, success, family, benefits

“Beware of little expenses; a small leak will sink a great ship.” – Benjamin Franklin

If you’re a high net worth individual or a growth-minded business owner, you already know the real issue you ask your tax accountant is rarely “can you lodge my tax returns?”
It’s “can you help me legally pay less tax, protect my wealth, and make smarter decisions all year?”

That’s why choosing a tax accountant in Sydney is a decision that can materially affect your financial health, your net wealth, and how quickly you reach your financial goals. Not all tax accountants are equal, and their expertise can vary widely. The wrong choice can cost you far more than their fee.

When selecting a tax accountant in Sydney, it’s essential to choose a registered professional who understands your industry and charges transparent, reasonable fees. Transparent pricing ensures you know exactly what you’re paying for, and reasonable fees reflect fair value for the quality and professionalism you expect.

This guide is a practical red-flag checklist, written for people who want expert advice, strong compliance, and a long-term partner. It also explains why Bishop Collins is the kind of firm you want in your corner.

The first red flag is basic: they are not registered tax agents

Let’s start with the legal line in the sand.

In Australia, only registered tax agents can legally charge a fee to prepare and lodge tax returns. If someone is “doing your return” for money and they are not registered, you are taking on risk you do not need.

What to check immediately

  • Are they registered with the Tax Practitioners Board?

  • Do they hold credentials such as CA ANZ or CPA ?

  • Can they clearly explain who is responsible for your work, not just “the team”?

Bishop Collins operates with proper registration, professional standards, and a focus on accurate tax accounting so you are protected from day one.

Red flag: they talk about refunds, not strategy in tax accounting

High performers do not build wealth by hoping for a refund. They build wealth by making deliberate decisions that reduce tax legally and support long-term growth.

A good accountant should be asking about:

  • Your business and investment goals

  • Your current and future plans

  • Your risk appetite

  • Your family situation

A quality tax accountant will assist you with tailored tax solutions to meet your unique financial needs, providing ongoing support and guidance.

Why this matters

Choosing the right tax accountant can significantly impact the amount of tax you pay. Over time, the right tax accountant can influence how much wealth you accumulate.

A good accountant should be asking about:

  • your income mix (salary, dividends, distributions, business income)

  • your investments and timing

  • your structure (company, trust, individual)

  • your personal tax position and future plans

  • your business tax obligations and growth plans

If they are not asking questions, they are not doing real tax planning.

Bishop Collins focuses on tax advice that connects to your real world decisions, not just your tax returns.

Red flag: vague accounting services fees and no clear scope (especially common around the sydney cbd)

If you are searching accountants sydney wide, you will see plenty of firms near the sydney cbd offering “fast turnaround” and “competitive pricing”.

Speed is fine. But vague pricing is a warning sign.

Typical fees for individual tax returns in Sydney range from $350 to $700, while small business returns can range from $750 to $3,000 or more depending on complexity. If a firm cannot explain what drives the fee, you are not buying a professional service, you are buying a mystery box.

What you should expect

  • Transparent fees

  • A clear scope of work

  • Clarity on what is included in accounting services versus what is extra

  • A plan for ongoing support, not just a once-a-year transaction

  • Services tailored to your specific needs

Leading firms like Bishop Collins offer a comprehensive range of services tailored to unique tax needs. They are upfront about scope, value, and what you are paying for, so you can make a confident decision.

Red flag: they only contact you to complete your tax return

If you want to pay less tax, you cannot leave it until after the tax year has ended. That is when options are limited and the conversation becomes reactive.

A proactive accountant provides advice throughout the year on business structuring, superannuation contributions, and investment timing. That is where the real value is.

What proactive looks like in real life

  • reviewing your structure before growth creates complexity

  • planning purchases and deductions properly

  • managing cash flow and obligations without surprises

  • making sure your financial records are current so decisions are based on reality

Bishop Collins supports clients throughout the year especially during the months of April to June before the end of the financial year and before it is too late to act.

Red flag: they do not care about bookkeeping or financial health(or they shame you for it)

Bookkeeping services are essential for maintaining accurate financial records. Accurate bookkeeping is essential for sound financial management and tax compliance.

For high net worth individuals and growth businesses, messy bookkeeping is not just annoying, it is expensive. It can cause missed deductions, poor reporting, and unnecessary accounting time. By outsourcing your accounting and tax services, you can save time, reduce costs, and simplify the complexities of tax compliance and financial management.

What you want instead

  • clear expectations and a simple process for documents

  • support for meticulous bookkeeping

  • access to a skilled bookkeeper when needed

  • systems that make life easier

Many modern Sydney firms use cloud-based platforms like Xero or MYOB, which can streamline record-keeping and provide real-time insights. Bishop Collins supports modern workflows so your bookkeeping and tax accounting actually work together.

Red flag: they cannot handle complexity without getting “creative”

High net worth individuals often have complexity. Growth-minded business owners almost always do. Complexity is not the problem. Poor handling of it is.

A qualified accountant can significantly reduce tax liabilities, maximise deductions, and handle complex tax situations such as multiple trusts, investment companies and multiple family interests, but only if they understand the rules and respect them.

A critical reminder

Australian tax laws frequently change such as what we are seeing now with changes to Negative Gearing, Capital Gains Tax and the future proposals on the taxation of trusts. These all affect what is considered taxable income and legitimate expenses. You need someone who stays current and can explain the law, not someone who wings it.

Also, you are ultimately responsible for all information in your tax return and any tax debt you may have. If an accountant is sloppy or aggressive, you still wear the consequences.

Bishop Collins balances compliance with smart strategy so you can minimise tax legally and sleep at night.

Red flag: they do not talk about structure, financial goals, wealth, and long-term planning

If your accountant is not discussing structure, they are not helping you build wealth.

A proactive approach should consider:

  • the right structure for your business and investments

  • how your personal tax position interacts with business decisions

  • how to protect and grow wealth over time

  • how to align tax planning with your financial goals

This is where business advisory services matter. Not in a fluffy way, in a “this decision will cost or save you real money” way.

Bishop Collins helps clients connect tax planning to the bigger picture: growth, wealth, and financial health.

Red flag: they cannot speak confidently about self managed super fund (SMSF) considerations

If you have a self managed super fund, or you are considering one, you need an accountant who understands the compliance requirements and how it fits into your broader plan.

A self managed super fund is not a trend. It is a serious structure with serious responsibility. The wrong advice can be costly.

Bishop Collins can guide you through the right questions, the right timing, and the compliance expectations so your super strategy supports your future.

Red flag: they do not explain deadlines and lodgement options properly

A good tax agent should help you plan, not panic.

Registered tax agents can often lodge tax returns after the standard 31 October deadline, sometimes as late as 15 May. That does not mean “leave it late”. It means there are legitimate pathways to manage timing, provided you are organised and working with registered tax agents.

Bishop Collins helps you manage timelines properly, keep documents current, and avoid last-minute stress.

The biggest red flag of all: you do not feel comfortable asking questions

Researching and asking questions is essential when choosing a tax accountant. If you feel rushed, judged, or confused, you will stop asking questions. That is when mistakes happen.

The best accountant is one that you feel comfortable working with and can explain tax in a simple way minimising the use of Jargon.

Why Bishop Collins is the right partner if you want to pay less tax

If your goal is to legally pay less tax, protect your wealth, and grow your business with confidence, you need more than a once-a-year tax return service.

Bishop Collins provides:

  • registered tax agents with strong credentials

  • strategic tax planning, not just lodgement

  • tax accounting that supports long-term financial health

  • support for bookkeeping and clean financial records

  • accounting services tailored to individuals, companies, and structures

  • advice that aligns with your financial goals, investments, and growth plans

  • a proactive approach that helps you minimise tax legally and stay compliant

Next step: book an appointment and bring the right questions

If you are ready to stop treating tax like a yearly admin task and start treating it like a lever for wealth, Bishop Collins can help.

Book an appointment to discuss your tax situation, your business, your investments, and the strategy that will deliver the best outcome, not just this year, but for the future.

Bookkeeping

Monthly Bookkeeping Services in Sydney: What’s Actually Included?

July 22, 2026
accounting software, bookkeeping professionals, payroll tax, business owners, cash flow, bookkeeping and accounting

“What gets measured gets managed.” – Peter Drucker

In a growing business, the numbers don’t become useful until your bookkeeping is done properly.

If you’re one of those business owners who’s scaling fast (or you’re juggling multiple entities and investments), Sydney bookkeeping isn’t just data entry. It’s the system that keeps your financial records clean, your reporting credible, and your decisions grounded in reliable data.

This guide breaks down what’s typically included in Sydney bookkeeping services, what to clarify before you sign, and how to choose the right bookkeeping services for your business.

What “monthly bookkeeping” means

Monthly bookkeeping services are a repeatable set of processes that keep your accounts accurate and up to date using modern accounting software (think Xero, MYOB, or QuickBooks). For many Sydney businesses, it’s an integral part of staying compliant and maintaining financial clarity.

In practical terms, a monthly package usually includes the items below.

1) Bank reconciliation (and keeping your books “true”)

A proper bank reconciliation is the backbone of good bookkeeping.

Each month, your bookkeeper matches bank and credit card transactions to what’s recorded in your file. This reduces errors, improves reporting, and helps you manage your business with confidence.

What you get:

  • Fewer uncategorised transactions

  • Cleaner expense coding

  • Faster month-end close

  • Better visibility of cash flow

2) Coding and categorisation (where accuracy is won or lost)

A good Sydney bookkeeper applies consistent rules so your reports are meaningful month to month. That’s what turns your accounts into real time data you can actually use for informed business decisions.

It also helps reduce the risk of:

  • Incorrect GST treatment

  • Misstated profit

  • Messy year-end adjustments at tax time

3) Accounts receivable (getting paid without chasing your tail)

Many Sydney bookkeeping services include support with accounts receivable, such as:

  • Creating and sending invoices

  • Tracking overdue invoices

  • Producing an aged receivables report

For business owners, this is often the difference between “we’re profitable” and “we’re profitable but somehow always short on cash.”

4) Accounts payable (staying on top of bills and supplier payments)

Accounts payable support may include:

  • Entering supplier bills

  • Matching bills to purchase orders (where relevant)

  • Preparing payment runs (with your approval)

This is a simple way to reduce late fees, keep supplier relationships healthy, and manage cash flow more deliberately.

5) Payroll and payroll services (if included)

If your monthly package includes payroll or payroll services, it may cover:

  • Pay runs (weekly/fortnightly/monthly)

  • Single Touch Payroll (STP)

  • Superannuation calculations

  • Leave balances

Depending on your industry and setup, you may also need to consider payroll tax obligations.

6) BAS / IAS and compliance support (often via registered BAS agents)

Many bookkeeping providers include BAS/IAS preparation, and some will lodge if they’re registered BAS agents.

Either way, the goal is consistent compliance and fewer surprises when your accountant finalises your year-end work.

Tip: if BAS lodgement is included, confirm your provider’s BAS agent registration and processes.

7) Monthly reporting (the part you actually want)

This is where professional bookkeeping becomes a management tool.

A strong monthly reporting pack may include:

  • Profit & Loss (P&L)

  • Balance Sheet

  • Cashflow snapshot

  • Aged receivables and payables

If you’re not receiving reporting (or you don’t trust it), you’re not getting the full value of your bookkeeping services.

What does Sydney bookkeeping cost?

Hourly rates for freelance bookkeepers in Sydney often range up to $70, while senior or firm-based professionals may charge ~$200 per hour.

Some Sydney bookkeeping services also offer fixed monthly pricing, which can make bookkeeping costs more predictable than hourly billing – particularly as your transaction volume grows, and can be combined with other small business accounting services you really need as your operations become more complex.

What’s not always included (clarify before you sign)

Before choosing bookkeeping services in Sydney, confirm whether these are included or billed separately, and consider whether your provider follows top bookkeeping tips for accuracy and efficiency:

  • Catch-up bookkeeping if you’re behind

  • Inventory tracking

  • Job/project costing

  • Forecasting and budgeting

  • Training and support in your accounting software (some firms offer Xero training)

Why local expertise matters for Sydney businesses

Local expertise helps Sydney-based bookkeepers provide more personalised support and understand the local business landscape, especially when it’s backed by a broader Accounting, taxation and audit firm that can support you beyond day-to-day bookkeeping.

For many Sydney businesses, that shows up in practical ways: clearer expectations around compliance, better communication, and processes that fit how you actually operate day to day.

How to choose the right Sydney bookkeeping services

Not all Sydney bookkeeping is created equal. When comparing providers, ask how they work, and whether their philosophy aligns with Bishop Collins’ approach to client-focused accounting services:

  • Do I get my own bookkeeper (a dedicated person) or a rotating team?

  • What accounting software do you support (Xero, MYOB, QuickBooks)?

  • Are you a chartered accountant firm, a bookkeeping-only provider, or a combined bookkeeping and accounting team that can also deliver taxation advice and outsourced CFO services, when you need more strategic advice on your business?

  • Do you have registered BAS agents if BAS lodgement is required, and can they guide you on payroll tax for contractor payments in NSW if this applies to your business?

  • What’s your turnaround time after month-end?

  • Do you offer fixed monthly pricing (helpful for predicting bookkeeping costs) or hourly billing?

For many Sydney businesses, the best fit is a provider who can scale with you and keep your processes efficient as transaction volume grows, while keeping you informed with up-to-date accounting and financial news and insights.

The Bishop Collins approach: bookkeeping that supports the bigger picture

At Bishop Collins, we see Sydney bookkeeping services as part of a wider system: tax, structure, compliance, outsourced CFO services and cashflow all connected.

If you want professional bookkeeping that gives you financial clarity (and frees you up to run the business), we can help – contact our Sydney and Central Coast offices to discuss your situation.

Explore our bookkeeping services in Sydney:

If you’d like, we can also start with an obligation free chat and map out what you might need (and what you don’t). Ask about a free consultation with one of our directors, such as Phillip Keenan, specialist in business structures and asset protection.

Due dates for BAS (Business Activity Statements)
Small Business Taxation & Tax Tips

Due Dates For BAS 2026-2027: monthly, quarterly & annual (plus agent extensions)

June 1, 2026
goods and services tax, gst turnover, failure to lodge ftl, registered bas or tax, bas due dates 2026. bas or tax agent

“”You have to evaluate compliance not as an expense, but as a money saver.” — Paul Koziarz

A while back we met with a business owner who was doing everything “right”: sales were up, the team was growing, and cash flow looked healthy – until business activity statement (BAS) time arrived.

A couple of late BAS lodgements, a surprise payment, and suddenly the Australian Taxation Office was sending reminders that felt louder than they needed to be. It wasn’t a capability issue; it was a calendar and process issue.

This guide is your reference for due dates for BAS across two financial years – 2025–2026 and 2026–2027 – including what’s due when for monthly BAS and quarterly BAS, what changes if you use a registered BAS agent or tax agent, and what to do if a bas due date falls on a weekend or public holiday.

What this guide covers (and what it doesn’t)

What you’ll get in this guide (FY26 + FY27):

  • A quick-reference snapshot of the key due dates for monthly business activity statement (BAS), quarterly BAS, and annual reporting (so you can sanity-check your calendar in 30 seconds)

  • The standard bas due date rules for each reporting cycle (monthly, quarterly or annually) and how your reporting period affects your bas lodgement

  • FY26 and FY27 quarterly BAS dates laid out clearly (plus the monthly BAS due date pattern)

  • What changes when you lodge through a registered BAS agent or registered tax agent (including the BAS agent lodgment program and when concessions may not apply)

  • What to do when a due date falls on a weekend or public holiday (and how the next business day rule works in practice)

  • A practical BAS preparation checklist to reduce errors, protect cash flow, and avoid last-minute BAS deadline stress

  • A plain-English overview of late lodgement consequences (including failure to lodge penalties and interest charges) and when payment plans may be worth discussing

What this guide doesn’t cover:

  • Detailed GST calculations, payroll advice, or income tax planning (that needs tailored advice)

  • Complex or industry-specific items like fuel tax credits, luxury car tax, and wine equalisation tax (we can help, but it depends on your circumstances)

  • Fixing historical non-compliance in detail (if you’re behind, we recommend getting advice early)

Quick reference: BAS due dates at a glance (FY26 + FY27)

BAS reporting cycle

Who it’s common for

BAS due date rule (standard)

FY26 key dates (2025–26)

FY27 key dates (2026–27)

Monthly BAS

Businesses with GST turnover $20m+ (mandatory) and some who choose monthly

21st of the following month after the reporting period

Same rule all year

Same rule all year

Quarterly BAS

Most SMEs with GST turnover under $20m

28th of the month after quarter end with an extra month for Dec Qtr

28 Oct 2025, 28 Feb 2026, 28 Apr 2026, 28 Jul 2026

28 Oct 2026, 28 Feb 2027, 28 Apr 2027, 28 Jul 2027

Annual BAS

Eligible smaller businesses (where annual reporting applies)

Usually 31 October after the end of the financial year, or with tax return

31 Oct 2026 (or with tax return)

31 Oct 2027 (or with tax return)

*If the due date falls on a weekend or public holiday, the BAS due date generally moves to the next business day.

Who this is for (and the pain points we see most)

This is for Australian businesses – including sole traders and not for profit bodies – who want clarity on business activity statement obligations, bas lodgement, and lodgement and payment timing.

Common pain points:

  • “I’m not sure what my reporting period is.”

  • “We report quarterly, but our cash flow gets squeezed near the BAS deadline.”

  • “We missed a bas deadline and now we’re worried about failure to lodge penalties and interest charges.”

  • “Our accounting software is set up, but the financial data isn’t clean enough at month-end.”

BAS obligations: who must lodge and why it matters

A business activity statement (often shortened to business activity statement BAS) is how you report and pay certain tax obligations to the Australian Taxation Office (ATO).

In plain language, your BAS is where you report things like:

  • Goods and services tax (GST)

  • PAYG withholding (and related payg withholding obligations)

  • Other tax obligations depending on your setup (e.g., some instalments, and in some cases items like luxury car tax or wine equalisation tax)

If you’re registered for GST, bas lodgement is a legal obligation under the Taxation Administration Act 1953 – even if you had no business activity during the period (you may need to lodge a nil BAS).

Why it matters:

  • It supports tax compliance and reduces ATO scrutiny

  • It improves cash flow visibility (GST payable vs bas refund)

  • It helps avoid failure to lodge penalties and compounding charges

BAS reporting cycle options and how they affect due dates

Your bas reporting cycle (your reporting frequency) drives your bas due dates.

Monthly reporting (monthly BAS)

You’ll usually be on monthly reporting if your gst turnover is high.

  • If your annual GST turnover is $20 million or more, you must report monthly (mandatory).

  • Many businesses choose to report monthly to keep GST and PAYG closer to real time and reduce quarter-end surprises.

Quarterly reporting (quarterly BAS)

For many SMEs, quarterly reporting is the standard.

  • For businesses with gst turnover under $20 million, the standard reporting frequency is quarterly.

  • Quarterly can reduce admin, but it can create bigger payment peaks—so cash flow planning matters.

Annual reporting

Some businesses can report annually.

  • Annual reporting can reduce admin, but it can concentrate risk if records aren’t tidy.

  • Annual BAS timing often links to your tax return / income tax return.

Monthly BAS due dates (FY26 & FY27)

For monthly BAS reporting, the bas due date is typically the 21st of the following month after the reporting period.

Reporting month (activity period)

BAS due date (no agent concession)*

July

21 August

August

21 September

September

21 October

October

21 November

November

21 December

December

21 January

January

21 February

February

21 March

March

21 April

April

21 May

May

21 June

June

21 July

*If the due date falls on a weekend or public holiday, the deadline moves to the next business day.

That pattern applies across both FY26 and FY27:

  • July activity → 21 August

  • August activity → 21 September

  • September activity → 21 October

  • …and so on.

Important note: monthly lodgers generally do not receive the same broad “extra time” concessions as quarterly lodgers, even when working with a bas agent or registered agent.

Quarterly BAS due dates FY26 (2025–2026)

For quarterly BAS, the due date is typically the 28th day of the month following the end of the quarter.

Standard quarterly due dates in 2025–2026:

  • Quarter ended 30 September 2025 → 28 October 2025

  • Quarter ended 31 December 2025 → 28 February 2026

  • Quarter ended 31 March 2026 → 28 April 2026

  • Quarter ended 30 June 2026 → 28 July 2026

Quarter (reporting period)

Quarter end

BAS due date (standard)*

Q1

30 September 2025

28 October 2025

Q2

31 December 2025

28 February 2026

Q3

31 March 2026

28 April 2026

Q4

30 June 2026

28 July 2026

*Businesses that lodge through a registered BAS agent or registered tax agent may receive extended lodgement deadlines under the BAS agent lodgment program (eligibility applies).

These are the key due dates most businesses track.

Quarterly BAS due dates FY27 (2026–2027)

Standard quarterly due dates in 2026–2027 (same 28th-of-next-month pattern):

  • Quarter ended 30 September 2026 → 28 October 2026

  • Quarter ended 31 December 2026 → 28 February 2027

  • Quarter ended 31 March 2027 → 28 April 2027

  • Quarter ended 30 June 2027 → 28 July 2027

Quarter (reporting period)

Quarter end

BAS due date (standard)

Q1

30 September 2026

28 October 2026

Q2

31 December 2026

28 February 2027

Q3

31 March 2027

28 April 2027

Q4

30 June 2027

28 July 2027

Annual BAS due dates (FY26 & FY27)

An annual BAS is typically due by 31 October after the end of the financial year, or it may be lodged with your income tax return depending on your circumstances.

  • Annual BAS for 2025–2026 is due by 31 October 2026, or with your tax return.

  • Annual BAS for 2026–2027 is due by 31 October 2027, or with your tax return.

bas due dates 2026, bas due dates 2027. fringe benefits tax instalments, bas payment methods, calendar, pay, number, year, date, june, week, plan, meeting, monthly, calendar, calendar, calendar, calendar, calendar

What happens when a BAS due date falls on a weekend or public holiday

If a BAS due date falls on a weekend or public holiday, the deadline generally moves to the next business day.

Practical examples:

  • If your BAS is due on a Saturday, it typically shifts to the next Monday (unless that Monday is also a public holiday).

  • If it lands on a public holiday, it shifts to the next business day.

Because public holiday calendars vary by state, it’s worth confirming before you assume the shift.

Registered BAS agents, agent concessions and eligibility

A registered BAS agent (or registered tax agent) can help with BAS preparation, bas lodgement, and compliance.

Benefits we see in practice:

  • Engaging a registered tax professional can grant you extended deadlines and help manage lodgement requirements effectively.

  • Utilising a registered BAS or tax agent can provide extended lodgment deadlines.

  • Registered BAS agents typically receive automatic lodgement extensions through their participation in the bas agent lodgment program.

  • Using a registered BAS agent can provide extra time for quarterly submissions due to the BAS due date tax agent concession.

  • Engaging a registered BAS agent reduces the risk of errors in BAS preparation and lodgement.

  • Working with a registered BAS agent can provide peace of mind that your BAS obligations are met correctly and on time.

When agent concessions may not apply

Agent concessions aren’t a blanket promise. They can be impacted if:

  • You aren’t correctly listed with the agent for that reporting period

  • You have repeated late lodgements (the ATO may revoke the “agent extension” privilege)

  • You’re on certain reporting types where extensions are limited (often monthly)

Methods for lodging BAS

Businesses can lodge their BAS through:

  • ATO’s online services

  • A registered BAS agent / bas agent

  • Mail (paper lodgement is possible but increasingly discouraged due to processing times)

Using ATO online services allows for immediate electronic payment upon BAS lodgement.

Practical pre-lodgement checklist for BAS reporting

Use this as your repeatable BAS preparation process each reporting period:

  1. Confirm your reporting cycle and reporting period in ATO records and your accounting file

  1. Close the period early (aim: one week before the BAS lodgement due date)

  1. Reconcile bank accounts and clearing accounts (at least monthly)

  1. Review GST coding (sales and purchases) and fix misclassifications

  1. Reconcile payroll and PAYG withholding

  1. Check for missing invoices/receipts and ensure documentation is filed

  1. Review adjustments and confirm your GST position (payable vs bas refund)

  1. Forecast cash flow for the BAS payment and decide on payment timing

  1. Lodge and confirm submission receipt

  1. Save a PDF copy and notes for next period

Penalties, interest and practical compliance risks

Late BAS lodgement can trigger:

  • Failure to lodge penalties (FTL)

  • Increased ATO scrutiny

Penalty basics:

  • For small businesses (annual turnover under $1 million), a failure to lodge penalty is calculated at one penalty unit for every 28 days late, up to five units.

  • Late BAS lodgements attract Failure to Lodge penalties, starting at $330 every 28 days and capped at $1,650 for small businesses.

  • Each penalty unit is currently $313.

  • Medium entities ($1m–$20m turnover) face two penalty units per 28 days; larger entities face five.

If you’re behind, it’s usually better to lodge and then discuss options (including payment plans) than to wait.

Summary and next steps – You’re Not Alone

If you take nothing else from this guide, take this: BAS is easiest when it’s treated like a rhythm, not a scramble.

  • Confirm your bas reporting cycle (monthly, quarterly or annual) and make sure it matches your ATO records and accounting software.

  • Put the key due dates into a shared calendar with reminders, and remember: if the due date falls on a weekend or public holiday, it generally moves to the next business day.

  • Protect your cash flow by closing off your reporting period early and using a consistent checklist – so your bas lodgement isn’t dependent on last-minute heroics.

Need help making BAS predictable? If you’d like Bishop Collins to review your reporting cycle, clean up your BAS preparation process, or handle bas lodgement through a registered BAS agent / registered tax agent, we can help you set up a simple monthly close that reduces errors and deadline stress.

Federal Budget 2026 - Bishop Collins Chartered Accountants
Taxation & Tax Tips

Federal Budget 2026 – Changes to Capital Gains Tax, Trusts and Negative Gearing on Property 

May 21, 2026
federal government, development tax incentive, government spending, fiscal outlook, underlying cash balance, underlying cash deficit, fuel security reserve, mid year economic analysis.

“Future shock is the shattering stress and disorientation that we induce in individuals by subjecting them to too much change in too short a time.” – Alvin Toffler

This budget contains the most ambitious and significant change to the Tax landscape in decades. It aligns with the current governments aim of increasing the tax load on Capital (Investment returns) while providing some relief for labour (Wages) and supporting government expenditure.

Instead of summarising the whole Budget, which is already well covered, this article will focus on; 

  • Changes to Capital Gains Tax.

  • Changes to Trust Taxation.

  • Changes to Negative gearing.

We will ;

  • focus on what to be cautious of

  • what structures may be affected and the potential dangers

  • what possible actions to consider. 

Warning – There is still significant information that has not been provided by the government to date and remember that the Budget provisions have not been legislated. Do not take any direct actions immediately due to the following summary until you have spoken to your Bishop Collins Advisor or other Chartered Accountant. This is about being prepared for the future and taking timely action where appropriate.

Changes to Capital Gains Tax & CGT Discount

Capital Gains arising for Individuals, trusts and Partnerships on or after 1 July 2027; 

  • the 50% CGT discount is to be replaced by an indexation on the cost base for assets held for more than 12 months with a minimum tax of 30 %. Let’s break it down further…

    • If you sell an asset before 1 July 2027 and held it for more than 12 months the gain is reduced by 50% and no change

    • If you sell after 1 July 2027 and held the asset for more than 12 months the tax will be calculated in two parts. 

      • Part One – The difference between the value of the asset at 1 July 27 less the assets cost will still enjoy the 50% CGT discount. 

      • Part two – The difference between the sale price and the Indexed cost base or the 1 July 27 Value adjusted for inflation.

      • To determine the value on 1 July 2027 for listed asset where the value is known such as listed shares or equities, the calculation is easy enough however for property or unlisted assets this remains unclear. The ATO has said the calculation of this will be determined by an ATO “specified apportionment formula”. We do not have this available currently. One possible method for illustration purposes may be as follows;

        • Property purchased 1 July 2022 – $1,000,000

        • Sold 1 July 2032 – $2,000,000

        • Value on 1 July 2027 cannot be accurately gained

        • Assumed value growth straight line so at the halfway mark of 1 July 2027 value is ($2Mil – $1Mil)/2 = $1.5 Mil

        • Part One – Pre-1 July 2027 gain is $1.5Mil – $1Mil = $500,000. 50% Disc applied taxable Capital Gain = $250,000 at taxpayer’s marginal tax rate 

        • Part Two – Post 1 July 2027 gain using the Indexation Factor = CPI on 1 July 2032 / CPI on 1 July 2027 * Value on 1 July 2027. This is then deducted from the Sale price of $2Mil.

    • New residential properties can choose at the time of sale either the 50% discount or cost base indexation and the 30% min tax rate.

  • the above changes are to include pre-1985 CGT assets, held by individuals, trusts and partnerships. 

    • If a Pre CGT asset is sold before 1 July 2027 there is no change and it will remain completely tax free. 

    • Only the Increase in value of the Pre CGT asset from 1 July 2027 will be taxed under the new regime.

    • The value of the Pre CGT asset is not covered in the Budget papers so we are unsure how this will be calculated. It will either be at Market Value and require a valuation as of 1 July 2027 or some other apportionment formulae to be determined. 

  • It is important to note the main residence CGT exemption will continue to apply. The four small business CGT concessions will also be unchanged.

Australian superannuation funds effective tax rate on Capital Gains of 10% should continue to apply. What is unclear, however, is how these changes will impact superannuation funds that hold their assets via trusts. Refer Trust changes below.

CGT Changes – Actions To Consider:

Remember nothing changes until 1 July 2027.

If you wish to purchase an asset before 1 July 2027 and are not sure what the most tax effective structure will be we recommend waiting until more detail is provided and Legislation is passed.

If you cannot wait due to a great buying opportunity and need to know what structure to use, there are several factors to consider and before acting talk to your Chartered Accountant as every taxpayer’s position is unique.

Changes To Discretionary Trust Taxation

From 1 July 2028, trustees of discretionary trusts will pay a minimum tax on the taxable income of the trust of 30%, not the beneficiaries. Let’s break this down …

  • Non-company beneficiaries will receive the credits for the tax paid however they will be non-refundable. The non-refundable action ensures the minimum tax on distributions from trusts to 30%.

  • Company beneficiaries appear to not be entitled to the non-refundable credit paid by the trustee. The aim of this is to avoid the company beneficiary from converting these into refundable franking credits. This will result in trust distributions being double taxed in the hands of a company beneficiary and marks the end to any tax benefits of a “Bucket” company.

  • It is unclear how excess franking credits in a trust will be treated under these changes. CAUTION: This is significant for Discretionary Trusts held in Family investment vehicles and high net worth individuals that utilise gearing for their investments. The changes will result in an increase in the tax burden on trust distributions.

A number of trust types and income categories will sit outside its scope. Excluded trust types include:

  • fixed and widely held trusts, including fixed testamentary trusts

  • complying superannuation funds

  • special disability trusts

  • deceased estates; and

  • charitable trusts.

Excluded Income includes

  • primary production income, 

  • certain income relating to vulnerable minors, 

  • amounts to which non-resident withholding tax applies, and 

  • income from assets of discretionary testamentary trusts existing at the time of announcement, would also be excluded.

Discretionary Trusts – Actions To Consider

Expanded rollover relief will be available for three years from 1 July 2027 to support small businesses and others that wish to restructure out of a discretionary trust into another entity, such as a company or a fixed trust.

WARNING – Small business and Family Investment held in trusts who choose to restructure could face stamp duty costs in the hundreds of thousands if the changes are not harmonised with State tax legislation. 

Our recommendation is that decisions on restructuring should not be rushed. It is wise to use the period to 1 July 2028, and the rollover relief window from 1 July 2027, to take speak to your Chartered Accountant and consider your options. Decisions will also need to consider other changes announced in the Budget, including reforms to capital gains tax.

We recommend clients to treat the 1 July 2028 start date as likely and use the lead time to review their structures, look at alternatives and keep options open so they can take appropriate timely action once draft legislation is released.

Changes to Property Negative gearing

From 1 July 2027 negative gearing for established residential properties (acquired after 7:30 PM (AEST) on 12 May 2026) will be limited. Let’s break this down…

  • NOTE this only applies to established residential properties. It does not apply to Commercial properties or losses on other asset classes such as share investments.

  • Rental losses on established residential properties can only be offset against other residential rental income or capital gains, not salary or other income.

  • Any unused losses will be carried forward and applied against future residential property revenue gains or capital gains.

  • Investments in “New Builds” will continue to be able to negative gear any losses against all other taxable income

  • “New Builds” include properties that add to the housing supply, such as dwellings constructed on vacant land or where existing properties are demolished and replaced with a greater number of dwellings.

  • Knock down and rebuilds that do not increase supply will not qualify. 

  • The following are excluded from these changes;

    • properties held by widely held trusts (presumably including listed funds and MITs),

    • properties in superannuation funds,

    • build-to-rent developments

    • and government housing projects

Negative Gearing – Actions to Consider:

Remember nothing changes until 1 July 2027.

If you wish to purchase an asset before 1 July 2027 and are not sure what the most tax effective structure will be we recommend waiting until more detail is provided and Legislation is passed.

If you cannot wait due to a great buying opportunity there are several factors to consider and before acting talk to your Chartered Accountant as every taxpayer’s position is unique.

We recommend the following action to consider with your Financial Advisor and Chartered Accountant

  • identifying which properties in existing portfolios are grandfathered

  • carefully document the timing of any contracts entered around 12 May 2026

  • review financial modelling on the after-tax comparison of established versus new build property purchases, and

  • reassessing investment structures to consider including Self-Managed Superannuation Funds and build-to-rent developments.

You’re Not Alone In Business – Bishop Collins

In summary, the Federal Budget 2026 proposes some of the most significant changes to the tax system in decades, with a clear focus on how capital gains, discretionary trusts, and negative gearing may be treated from 1 July 2027 and 1 July 2028.

The article highlights the practical cautions: uncertainty around valuation and transitional calculations for CGT assets and cost base indexation, the potential increase in tax burden where trusts face a minimum tax and beneficiaries receive non refundable credits, and the shift in how rental losses on established residential property can be offset against income versus being carried forward against future residential rental income or capital gains. Because there is still missing information and the measures have not yet been legislated, this is about preparation – not rushed action.

If you want help understanding how these proposed changes could affect your taxable income, net capital gains, and investment structures, seek guidance from Bishop Collins – so you can plan early and act at the right time.

Frequently asked questions:

What is the Australian Federal Budget?

The Australian Federal Budget is the Government’s annual plan for the country’s finances. It sets out:

  • Expected revenue (mainly taxes and other receipts)

  • Planned spending (health, defence, welfare, infrastructure, etc.)

  • The projected surplus/deficit and debt

  • New or changed policy measures (including tax and cost-of-living measures)

It’s delivered by the Treasurer in Parliament and is accompanied by official Budget papers and detailed portfolio statements.

What time is the budget announced in Australia?

Budget night is traditionally delivered at 7:30pm AEST (Budget speech in Parliament).
In Sydney time (AEST), that’s 7:30pm.

What date is the federal budget 2026?

The 2026–27 Australian Federal Budget was handed down on 12 May 2026.

Does “Budget 2026” release?

Yes. The Budget is released publicly on Budget night (speech + Budget papers), and supporting documents are published on the official Budget site.

Cash Flow Problems
Business Coaching Small Business

Profitable but No Cash? How to Solve Cash Flow Problems in Your Business

May 17, 2026
customers pay, cash flow issues, common cash flow problems, all the money, save money, financial position

“Growth is never by mere chance; it is the result of forces working together.” – James Cash Penney

Plenty of Sydney businesses show a profit on paper but still wake up at 3am wondering how they’ll make payroll. That is the reality of cash flowproblems: your profit and loss statement says you’re winning, but the bank account says you’re out of runway.

This guide is written for growth‑minded business owners– the ones running multiple locations, franchises or complex operations – who are profitable but squeezed for cash flow, and want a practical playbook to fix it.

Why profitable businesses still run out of cash

Profit is an accounting figure. It records income when you send an invoice, not when the cash lands in your bank account. Cash flow, by contrast, tracks the actual movement of money in and out of your account – the cash coming from customers and the cash going out to pay wages, rent, ATO and suppliers.

That difference is why a business can be profitable on paper and still collapse due to cash flow issues. For many business owners in Sydney, the squeeze comes from:

  • Late‑paying customers – 75% of Australian small business owners face chronic late payments, often waiting 45–65 days to be paid, with invoices in Australia averaging 23 days late.

  • Increasing working capital due to high growth resulting in increasing stock levels. 

  • If the supply chain is tight or slow it may also require the need to increase stock holding to ensure supply. This is especially relevant now.

  • High operating expenses – rising energy costs (up 25% in Sydney in the last year), rent and wages quickly eat through any cash reserve.

  • Thin profit margins – leaving little buffer for unexpected costs or dips in demand.

Understanding that profit and cash flow are different is the first step in serious cash flow management.

Common business cash flow problems for growing businesses

The warning signs of business cash flow problems usually appear well before you’re technically insolvent. Recognising them early lets you act while you still have options.

Typical cash flow challenges include:

  • Late customer payments – pushing your incoming cash 30–60 days behind your outgoing payments for wages, rent and loans.

  • High operating expenses – energy, rent, production costs and payroll that creep up faster than revenue.

  • Excessive debt – high‑interest business loans and overdrafts that chew up cash in repayments.

  • Poor inventory management – too much cash tied in slow moving stock or materials.

  • Increased inventory holding requirements due to supply or growth.

  • Unrealistic growth expectations – adding staff or locations on the assumption that “revenue will catch up”, only to find working capital stretched to breaking point.

If you run multiple franchises or a complex group, those issues are multiplied across sites. As many business owners learn the hard way, you don’t hit a “tipping point” overnight – the red flags build slowly in your cash flow statement and bank statements long before you miss a payment.

Spot the early warning signs of cash flow problems

The earlier you see cash flow problems coming, the cheaper they are to fix. Some key warning signs:

  • Your bank account balance drops every month even though the P&L shows a profit.

  • DSO (days’ sales outstanding) is stretching out – customers are taking longer and longer to pay.

  • Inventory turnover increases – The time it takes to sell your inventory holding increases in time beyond your terms of payment to suppliers.

  • You’re constantly juggling supplier payments, paying whoever shouts loudest.

  • Loan repayments and tax payments are pushed back, or you need temporary funding to pay BAS or super.

  • You’ve got cash tied up in slow moving stock or work‑in‑progress that never seems to convert to cash.

Regular cash flow analysis – at least monthly – helps you see seasonal trends and whether your working capital is moving in the right direction. That’s far more useful for survival than just checking if “we made a profit”.

Cash flow management 101: get your data and tools right

You cannot fix what you can’t see. Effective cash flow management starts with good systems, not heroic last‑minute transfers.

For Sydney‑based startups and growing businesses, cloud accounting platforms like Xero and MYOB are now essential tools, not nice‑to‑haves. They allow you to:

  • See real‑time cash flow from anywhere.

  • Automate invoices and automatic reminders for overdue payments.

  • Integrate with inventory tools to track stock and avoid slow moving stock.

Best‑practice cash flow management strategies include:

  • Monitoring your cash flow statement and bank statements monthly to see whether the business added or lost cash.

  • Keeping good records so you can trust your numbers and make confident financial decisions.

  • Setting up a separate bank account to build a cash reserve rather than letting surplus cash quietly disappear into operating expenses.

For many business owners, shifting from spreadsheets to proper cloud systems is the single biggest upgrade they can make to manage cash flow.

Build a simple cash flow forecast (and use it)

A cash flow forecast doesn’t have to be complicated to be powerful. The goal is to see whether you’ll have enough money in the bank to pay bills and staff – and when pressure points are coming.

Two practical options:

  • A 60‑day cash flow forecast mapping expected income and outgoing payments week by week.

  • A 13‑week rolling forecast, updated weekly, which many growing businesses use to track daily activities and seasonal cycles.

Whichever you choose, your cash flow forecast should include:

  • Money coming in: expected customer receipts by due dates, including big invoices to any major client.

  • Outgoing payments: wages, rent, tax, supplier payments, loan repayments and other operating expenses.

  • Your opening and closing bank account balance each week.

Updating this regularly is one of the simplest ways to avoid cash flow problems. It gives you time to adjust before you hit a crisis – for example, by negotiating payment terms, chasing invoices earlier, or slowing non‑essential spending.

Payment terms and processes: get paid faster, every time

For many business owners, cash flow problems are not a sales problem – they’re a payment terms problem. You’ve done the work, but the money hasn’t turned up.

Practical steps to improve cash flow from customers:

  • Invoice immediately when a job is complete – don’t wait for “the end of the month”.

  • Implement clear, consistent payment terms and make due dates highly visible on every invoice.”

  • Regularly communicate with clients on when you can expect to receive payment. “The squeekiest wheel gets the most attention”.

  • Offer multiple payment options – card, bank transfer, online payment links – so it’s easy for customers to pay.

  • Use accounting software to send automatic reminders when an account falls overdue.

  • Where appropriate, offer small incentives for early payment to get cash in faster.

Businesses that systemise this – rather than relying on someone to manually chase invoices – often reduce average payment times from 30+ days to around 10–15 days, dramatically improving cash flow.

Supplier terms, business loans and working capital

The other side of cash flow management is controlling how quickly money leaves your account.

Key levers:

  • Negotiate payment terms with key suppliers so your supplier payments fall after major customer receipts.

  • Re‑assess business loans and overdrafts – high debt and interest costs can create serious cash flow risks if growth slows.

  • Review your business model and business plan to make sure fixed operating costs and production costs are sustainable at realistic revenue levels.

Remember, the aim is to protect working capital – the money you actually have available to run and grow the business. Growing businesses in particular need enough working capital to fund extra staff, stock and marketing without tipping into financial trouble.

Inventory, margins and other hidden cash flow problems

Beyond customers and suppliers, there are structural cash flow challenges hiding in many businesses:

  • Low profit margins mean there is not enough buffer to build a cash reserve or absorb price shocks.

  • Poor inventory control leaves cash tied up in stock that doesn’t move, which can quietly starve the rest of the business.

  • Rapid expansion – new sites, new product lines – without matching cash flow management strategies can push even successful small businesses into a crunch.

Tools and tactics that help improve cash flow here include:

  • Using inventory management software to minimise slow moving stock and align purchasing with real demand.

  • Reviewing pricing and profit margins so each sale actually contributes more money to working capital.

  • Aligning expansion plans with realistic cash flow forecast scenarios, not just the rosiest revenue projections.

Build a cash reserve so one shock doesn’t sink you

A solid cash reserve is the difference between a scary quarter and a business‑ending crisis.

For most small business owners, a realistic target is:

  • 3–6 months of operating expenses set aside in a separate bank account, or

  • At the very least, one to three months as a starting point if you’re still building up.

You can get there by:

  • Setting a monthly savings target in your business plan and treating transfers to your cash reserve like a non‑negotiable bill.

  • Keeping the reserve in a separate bank account so you’re not tempted to spend it on day‑to‑day business expenses.

This buffer gives you time to navigate cash flow stress from seasonal dips, late invoices or unexpected costs without panicking or taking on expensive short‑term debt.

When business owners should get professional help

Many business owners wait until the bank says “no” before talking to a specialist. By then, options are limited and cash flow problems are expensive to fix.

It’s worth seeking professional advice when:

  • You’re regularly using tax money or payroll funds to cover other business expenses.

  • Your cash flow forecast shows repeated shortfalls, even in reasonably good trading conditions.

  • You’re planning a major change – new location, acquisition, big hiring round – and want to understand the cash flow impact.

A Virtual CFO or experienced adviser can help you:

  • Design practical cash flow management strategies and reporting rhythms.

  • Build rolling forecasts and scenario models that show how decisions will affect cash and working capital.

  • Clean up systems so you spend less time firefighting and more time on profitable business growth.

For growth‑minded business owners, getting on top of cash flow problems isn’t just about surviving the next quarter. It’s about building a business that can confidently fund the next opportunity, not fear the next bill.

SMSF & Superannuation Wealth Management

SMSF Property Investment Rules: Sydney Market Updates

April 7, 2026

SMSFs give you control over your retirement savings – but the ATO expects trustees to follow the rules to the letter.

We’ve put together a practical Sydney-focused update on SMSF property investment rules, plus the compliance essentials (annual return, financial statements, independent audit) and where we see people slip up.

Worth a read if you’re weighing up property inside your SMSF.

Read More
Small Business Taxation & Tax Tips

How to Lodge Business Tax Return to Maximise Cashflow in Australia

February 9, 2026
company's income, income statement, tax time, tax time, report, finances

Don’t wait until you’re thirsty to start digging the well. – Chinese Proverb

Cashflow is the lifeblood of a growth-minded business. Get it right, and you have the resources to invest, expand, and sleep well at night. Get it wrong, and you may be scrambling for funds just when you need them most.

One often-overlooked cashflow lever? When and how you lodge your business tax return.

At Bishop Collins, we help our clients time their lodgements strategically, so they pay income tax when it makes sense for their business, claim every eligible deduction, and keep more cash available for growth throughout the financial year– all while minimising ATO review risk.

Why It’s Important to Understand How to Lodge Your Business Tax Return

You need to lodge a tax return if you carried on a business – even if you didn’t earn any income. This applies to all business structures: sole trader, partnership, trust, or company.

The type of return you lodge depends on which entity your business operates under. These are some of the entities a business would operate under:

  • Sole trader → Report business income and deductions in your individual return.

  • Partnership → Lodge a partnership return showing net income from the business. The profit or loss is then reported in the partners personal returns.

  • Trust → Lodge a trust tax return for the net income or loss. The profit must then be distributed to the beneficiaries and reported in their returns.

  • Company → Lodge a company tax return as a separate legal entity.

💡 Why Bishop Collins? The right lodgement strategy isn’t just about compliance 0 it’s about keeping more money in your business to fuel your next stage of growth. Get in touch with us today here.

What Is a Tax Return for a Business?

A business tax return is a report to the Australian Taxation Office showing:

  • Assessable income (sales, services, dividends, other income)

  • Deductions (business expenses that are tax deductible)

  • Net profit or loss

  • Payments made and refunds owed

We often find that growth-focused businesses miss out on deductions simply because they weren’t captured or categorised correctly. Our role is to make sure you claim every legitimate dollar while avoiding claims that could raise ATO questions.

When Is the Due Date to Lodge Your Tax Return?

  • If lodging yourself: 31 October (individuals, sole traders, partnerships, trusts), or generally 28 February for small companies.

  • If using a registered tax agent: You may get an extended due date depending on your agent’s lodgement program.

💡 Benefit: Lodging through Bishop Collins gives you breathing room, better planning, and the ability to schedule payments in line with your cashflow cycle.

How Long Does a Business Have to Lodge a Tax Return?

If you use the ATO’s myTax or online services directly, you must lodge by 31 October. Miss the deadline, and you risk penalties and interest.

If you use a registered tax agent online, you may have until May of the following year – extra time that can be used for tax planning and cashflow forecasting.

Do Businesses Get a Tax Refund in Australia?

Yes. A “tax return” is the form you lodge. A “tax refund” happens if your payments during the year exceeded your income tax liability.

We work with clients to position their affairs so that refunds are optimised where possible – without artificially overpaying during the year.

How Much Can a Small Business Make Before Paying Taxes in Australia?

For individuals (including sole traders), the tax-free threshold is $18,200. However:

  • You must lodge a tax return even if your business earns less than this.

  • Companies and trusts don’t get a tax-free threshold – they pay tax on every dollar of taxable profit.

How Is Business Income Taxed in Australia?

  • Sole trader: Business income is taxed at your individual marginal rates.

  • Company: Pays company tax at 25% (base rate entities) or 30% (all others).

  • Trusts: Income is distributed and taxed in the hands of beneficiaries.

  • Partnerships: The partnership itself doesn’t pay tax, but partners do on their share.

💡 Insight: Choosing the right business structureisn’t just about tax – it’s about asset protection, cashflow, and long-term growth.

Sole Trader & Small Business Tax Returns

If you’re a sole trader, your business income and expenses are included in your individual tax return. You still need a tax file number and must report all income received.

For small businesses, year-round tax planning ensures you can claim all eligible deductions and plan for payments without disrupting your cashflow.

Can I Lodge My Own BAS?

Technically, yes – you can lodge your own BAS or business tax returns. But lodging yourself without professional oversight can mean:

  • Missing deductions you’re entitled to

  • Paying more tax than necessary

  • Raising red flags with the Australian Taxation Office

At Bishop Collins, we:

  • Minimise your tax payable through proactive planning

  • Check every figure for compliance accuracy

  • Avoid anything that could draw unwanted ATO review attention

  • Strategically time lodgements and payments to strengthen cashflow

How Much Does It Cost to Lodge a Company Tax Return?

Costs vary depending on the complexity of your finances. At Bishop Collins, we provide fixed-fee quotes so you know exactly what you’ll pay – and our fees are usually tax deductible.

Maximising Cashflow When You Lodge

  1. Use a Registered Tax Agent – for extended due dates and strategic payment planning.

  2. Know Your Payment Dates – schedule tax payments when your bank balance can handle it.

  3. Delay Lodgement (Legally) – if you expect a bill, use your agent’s extended deadlines.

  4. Lodge Early for Refunds – if you expect a refund, lodge as soon as your accounts are ready.

Online Services and Standard Business Reporting

You can lodge through the ATO’s online servicesor standard business reportingsoftware. While convenient, these systems won’t review your tax position, check deductions, or ensure your structure is optimised. That’s where the value of a tax partner shines.

You’re Not Alone in Business with Bishop Collins

Whether you run a business or have complex affairs with multiple entities, when and how you lodge your return can make a big difference to your cashflow.

At Bishop Collins, we handle the numbers, timing, and strategy so you can focus on growth – not tax deadlines.

Our clients enjoy stronger cashflow, optimised tax outcomes, and peace of mind knowing their lodgements won’t trigger unnecessary ATO attention.

📞 Call us today to plan your next lodgement with confidence.

Business Tax Return FAQs (Australia)

Can I lodge my own BAS?

Yes. Most businesses can lodge their own BAS (Business Activity Statement) via the ATO’s Online services for business, through SBR-enabled accounting software, or with help from a registered tax agent.
The risk with DIY BAS is usually not “lodging” – it’s coding errors (GST, PAYG withholding, adjustments) or missing credits. If your BAS is complex or your figures are material, having a tax agent – like one from Bishop Collins – review it can reduce ATO risk and improve accuracy.

How much does it cost to lodge a company tax return?

Costs vary based on complexity, including the quality of bookkeeping, number of transactions, payroll, asset purchases, multiple entities, and whether tax planning is required. Many firms provide fixed-fee quotes so you know the cost upfront.
In most cases, tax agent fees for preparing and lodging a company tax return are tax deductible.

How long does a business have to lodge a tax return?

It depends on your business structure and whether you lodge yourself or use a registered tax agent. If you lodge yourself, many returns are due by 31 October (commonly for individuals/sole traders and many trusts), while companies often have different due dates depending on circumstances.
If you use a registered tax agent, like Bishop Collins Chartered Accountants, you may be eligible for extended lodgement deadlines under the agent’s lodgement program, sometimes into the following year. That extra time can be used for tax planning and cashflow forecasting.

What is a tax return for a business?

A business tax return is the annual report lodged with the Australian Taxation Office (ATO) that declares business income, claims eligible deductions, and calculates tax payable (or a refund).
The type of return you lodge depends on whether you operate as a sole trader, partnership, trust, or company.

How much can a small business make before paying taxes in Australia?

There isn’t one universal “small business” tax-free threshold. For sole traders (individuals), the personal tax-free threshold is $18,200, but you may still need to lodge a tax return if you carried on a business.
Companies and trusts don’t receive the personal tax-free threshold and may pay tax on taxable profits from the first dollar, depending on how the entity is taxed.

How is business income taxed in Australia?

Business income is taxed differently depending on your structure:

  • Sole trader: taxed at the owner’s individual marginal tax rates.

  • Company: taxed at the company tax rate (commonly 25% for base rate entities, otherwise 30%).

  • Trust: net income is generally distributed to beneficiaries and taxed in their hands.

  • Partnership: the partnership lodges a return, but profits are generally taxed in the partners’ individual returns.

Because structure affects tax, risk, and cashflow, it’s worth reviewing regularly as your business grows.

Sole Trader & Small Business Tax Returns

If you’re a sole trader, your business income and expenses are included in your individual tax return (alongside any other income). You still need to keep good records, report all income received, and claim only legitimate deductions.
For many growth-minded businesses, the biggest wins come from year-round tax planning – not just “doing the return” – so deductions are captured correctly and tax payments can be forecast without disrupting cashflow.

Taxation & Tax Tips

PSI Rules and Contractor Tax: Why the ATO Is Cracking Down on Personal Services Income

January 27, 2026

“Rules are rules. If you’re playing the game, you’d better know them.” – Anonymous

PSI Rules: If you’re a contractor, consultant, or small business owner who earns money through your personal skills and labour, the Australian Taxation Office(ATO) has its eyes on you in 2025.

That’s because the PSI rules – Personal Services Income rules – are a hot compliance focus. Get them wrong, and you could face extra tax, reduced deductions, and uncomfortable questions from the ATO.

This article is your plain-English guide to understanding PSI, how the rules apply, and why Bishop Collins is advising clients to act now to stay compliant – and confident.

What Is Personal Services Income?

Personal services income (PSI) is money you earn mainly from your personal efforts or skills rather than from a business structure or income-producing assets.

If more than 50% of the income received for a contract comes from the work you personally perform, that income is PSI.

For example:

  • A freelance computer programer paid for their creative work = PSI.

  • A business owner making most of their money from selling products, equipment hire, or licensing = not PSI.

When the PSI Rules Apply

The PSI rules apply when:

  • More than 50% of income from a contract is for principal work you personally perform, and

  • You don’t meet the tests to be classified as a personal services business (PSB).

Salary and wages as an employeearen’t affected by PSI. But if you operate as a sole trader, partnership, company, or trust that earns PSI, you need to self-assessevery income yearto see if the rules apply.

In summary the rules work to tax the profit from this PSI in the hands of the individual performing that work regardless of if it is in a company or trust. It is taxed at the individual’s marginal tax rates which can go up to 45% rather than the base rate company of 25%. The ATO can also go back multiple years and amend previous years and provide an amended return and possibly a large tax bill with penalties to go with it. OOuch !!!!

Passing the Tests: The Results Test and More

The simplest way to avoid the PSI rules is to pass the results test. To do this for at least 75% of your PSI, you must:

  1. Be paid to produce a specific result

  2. Provide all necessary tools and equipment

  3. Fix defects at your own cost

If you can’t pass the results test, there are other options – unless more than 80% of your PSI comes from one client. In that case, you’ll need a personal services business determination from the ATO.

Personal Services Business Determination

A personal services business determination is an official ATO decision confirming you operate a PSB and the PSI rules don’t apply.

We often recommend applying if:

  • You earn PSI from multiple clients but don’t meet every test

  • You work in industries with complex engagement terms (e.g., medical practitioners, IT contractors)

Even if you receive a determination, it must be assessed yearly.

PSI and the Employment Agency Provisions

Under the employment agency provisions, if you work through an employment agency contract – where an employment agent pays you to perform work for a third-party client – the ATO may treat your earnings differently for payroll tax purposes and PSI rules.

Some contractors mistakenly assume they’re outside PSI because they invoice through a company or trust. The ATO will still look at whether the income produced is mainly from your personal efforts and labour.

Why the ATO Is Cracking Down

The ATO has flagged PSI as an area of high risk for misclassification. Why? Because some contractors use structures to reduce tax, claim extra tax deductions, or split income with family members when the work is really just their own labour.

From the ATO’s perspective, the PSI rules ensure you pay tax the same way as an employee if you’re essentially working like one.

Common Mistakes Contractors Make

  1. Failing to report PSI in their income tax return.

  2. Claiming deductions for rent, wages, or super that the PSI rules disallow.

  3. Assuming operating through a company automatically avoids PSI.

PSI and Your Tax Deductions

If PSI rules apply, you can still claim deductions directly related to earning that income, like:

  • Work-related tools

  • Professional indemnity insurance

  • Some super contributions

But you can’t claim expenses for:

  • Rent or mortgage interest on your home

  • Wages paid to associates

  • Payments to other entities for work you personally performed

Payroll Tax and PSI

Even if PSI rules apply for federal income tax, you may still have payroll tax obligations at the state level if your taxable wages exceed the threshold. This is a separate compliance issue, but one many contractors overlook.

How Bishop Collins Advises Clients on PSI

We guide clients through a structured process each financial year:

  1. Identify PSI in your contracts and income received

  2. Self assess whether PSI rules apply

  3. See if there are opportunities to restructure your operations to satisfy the PSB test.

  4. Test eligibility for a PSB or results test

  5. Apply for a PSB determination if needed

  6. Adjust deductions in your tax return

  7. Document compliance in case the ATO asks questions

By doing this, we help clients obtain work confidently, knowing their tax position is defensible.

Example Case Study: IT Contractor Avoids a Costly ATO Reassessment

Background: Tom, an IT contractor, earned 90% of his income from one large corporate client. He invoiced through his company and assumed PSI didn’t apply.

Problem: The ATO reviewed his income year and found all earnings were from personal services. They disallowed $25,000 in deductions and issued penalties.

Solution: We helped Tom apply for a personal services business determination, restructure future contracts to pass the results test, and tighten his reporting.

Outcome: Tom avoided further penalties and now structures his work to reduce risk while staying compliant.

You’re Not Alone in Business

The PSI rules are here to stay, and the ATO is watching. If you earn PSI, take steps now to confirm whether the rules apply and adjust your tax strategy accordingly.

Getting this wrong can cost you far more than extra tax – it can damage your professional reputation and cash flow.

You’re Not Alone in Business: At Bishop Collins, we provide professional advice on PSI, contractor tax, and compliance, so you can focus on what you do best – delivering value to your clients.

📞 Contact us today to review your PSI position before the ATO does.

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