New Laws on Accepting Credit Card Payments

From 1 October 2026, Australian businesses will no longer be able to add surcharges for debit, credit or prepaid card payments.

For customers, this will feel like welcome news. No one enjoys seeing an extra fee added at the checkout.

For business owners, however, the cost of accepting card payments does not disappear. It becomes another operating expense that must be absorbed, managed or built into pricing.

At The Hrkac Group, we are already speaking with clients about what this change means for pricing, profitability and cash flow, particularly for businesses where most customers choose to pay by card.

What is changing?

Currently, many businesses pass on the merchant fee charged by their payment provider.

From 1 October 2026, these surcharges will no longer be permitted for EFTPOS, debit card, credit card and prepaid card transactions.

The cost of processing those payments remains however, so instead, it becomes another business expense.

Are card surcharges really “hidden fees”?

Recent announcements have referred to card surcharges as “hidden fees”. For many small businesses, that description is frustrating.

In reality, many businesses have displayed card surcharges clearly for years. Customers were given the choice of paying by cash or card, and those choosing card simply paid the cost charged by the payment provider.

This change doesn’t remove merchant fees. It simply changes who pays them.

Ultimately, the cost of electronic payments still needs to be funded.

What could this mean for your business?

If your business processes hundreds or thousands of card transactions each month, merchant fees can add up quickly.

Although each transaction may only cost around 1% to 2%, the annual impact can be significant. Depending on turnover and payment volumes, this could represent thousands, or even tens of thousands, of dollars in additional expenses.

Businesses with lower profit margins may find they need to:

• Review their pricing
• Improve operational efficiency
• Reduce unnecessary expenses
• Reassess their payment systems
• Budget for higher operating costs

For many businesses, modest price increases across products or services may become necessary to maintain profitability.

Before increasing your prices

If you are considering increasing prices to cover merchant fees, use this as an opportunity to review the bigger picture.

Ask yourself:

• Are your current prices still aligned with rising business costs?
• Are you using the most suitable payment provider?
• Could negotiating your merchant rates reduce costs?
• Are there opportunities to improve cash flow elsewhere?

The cheapest payment provider isn’t always the best option.

Some systems provide valuable features such as customer management, reporting, automation and business integrations that may justify a slightly higher processing fee. The key is understanding the total value, rather than simply chasing the lowest percentage.

Every transaction matters

Another area worth reviewing is how payments are collected.

For example, businesses that split customer payments into deposits and final balances may unintentionally pay multiple transaction fees on the same sale, depending on their payment provider’s fee structure. Across hundreds of transactions each year, these costs can become significant.

Small adjustments to your payment processes can often improve profitability without affecting the customer experience.

Now is the time to review your business

This legislative change is a timely reminder that operating costs continue to evolve.

Rather than reacting once October arrives, now is an ideal time to review:

• Pricing strategies
• Cash flow forecasts
• Merchant service costs
• Business profitability
• Budgeting for the year ahead

Planning ahead gives you more options and helps avoid rushed decisions later.

How The Hrkac Group can help

Whether you are a sole trader, growing business or established company, understanding the financial impact of these changes is essential.

Our team can help you assess how the removal of card surcharges may affect your business, review your pricing strategy, forecast cash flow and identify practical ways to protect profitability.

If you would like to discuss how these changes could impact your business, contact The Hrkac Group today. Together, we can help you plan ahead with confidence.

For further reference:

• https://www.victorianchamber.com.au/news/credit-card-surcharges-to-be-abolished-in-australia
• https://www.accc.gov.au/consumers/pricing/card-surcharges
• https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/faqs/

General Advice Warning
This information has been provided as general advice. We have not considered your financial circumstances, needs, or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly neither nor its related entities, employees, or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

From 1 July 2026, new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will come into effect, bringing accounting professionals within the scope of regulations that already apply to banks, mortgage brokers and financial planners.

As a trusted accountant Geelong businesses and individuals rely on, The Hrkac Group is committed to making these changes as simple and straightforward as possible for our clients.

While the new requirements may mean we ask for additional information from time to time, these changes are designed to help protect Australians and strengthen the integrity of our financial system.

What are AML and CTF laws?

Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws are designed to prevent criminal organisations from disguising illegally obtained funds and to help stop the financing of terrorism.

The reforms, introduced by the Australian Government and overseen by AUSTRAC, expand existing legislation to include additional professional services, including accounting and SMSF services.

These changes bring Australia into closer alignment with international standards and help protect businesses and consumers from financial crime.

What services will be affected?

From 1 July 2026, certain accounting and SMSF services provided by The Hrkac Group may fall under the new AML/CTF requirements.

Our mortgage broking and financial planning teams already operate under similar obligations, and from July 2026 these requirements will extend to parts of our accounting and self-managed superannuation services.

Not every service will require the same level of verification. The checks required will depend on the nature of the engagement and whether it falls within the scope of a designated service under the legislation.

As a leading provider of accounting services Geelong businesses trust, we will assess each engagement individually and guide clients through any requirements that may apply.

Why might we ask you for more information?

Under the new laws, we may be required to collect and verify information about our clients before providing certain services.

Depending on the circumstances, we may request:

• Photo identification, such as a driver’s licence or passport
• Proof of address
• Company ownership information
• Trust or SMSF documentation
• Information relating to the source of funds where required

These requests are a legal requirement and are not a reflection on you or your transaction.

For clients seeking support from a business accountant Geelong companies have trusted for more than 30 years, our aim is to make the process as efficient and convenient as possible.

Will existing clients need to complete these checks?

Yes.

Even long-standing clients may be required to complete identity verification if they engage The Hrkac Group for a designated service after 1 July 2026.

This is because the legislation applies to the services being provided, rather than how long someone has been a client.

While some clients may have already completed similar processes through our financial planning or mortgage broking divisions, others may be asked to provide information for the first time.

How will my information be protected?

Protecting client information is extremely important to us.

The information collected will only be used to satisfy our legal obligations under the AML/CTF legislation. This may include:

• Verifying your identity
• Conducting due diligence
• Supporting ongoing compliance and monitoring requirements

Your information will not be used for marketing purposes, sold, or shared beyond what is required under Australian law.

Under AML/CTF legislation, certain identification and verification records must be retained for seven years.

The Hrkac Group will utilise secure technology provided by BGL to assist with identity verification and compliance requirements. Our privacy policies will continue to evolve alongside these legislative changes to ensure your information remains protected.

Why these changes shouldn’t be a concern

Although these requirements are new for accounting services, similar identity checks have existed for many years within the banking, mortgage broking and financial planning industries.

For most clients, the process will be straightforward and involve only a small amount of additional documentation.

If you currently work with an SMSF accountant Geelong clients rely on, or engage our accounting team for business or taxation advice, you can expect the same professional service and support you have always received.

Looking ahead

While the new requirements may mean a few additional questions and documents, they are designed to help safeguard Australia’s financial system and protect businesses and individuals from financial crime.

At The Hrkac Group, our focus remains unchanged, providing professional accounting and SMSF advice while making the process as simple, secure and efficient as possible.

Whether you’re looking for a tax accountant Geelong families and businesses can depend on, or require specialist advice for your business or self-managed super fund, our team is here to help.

Have questions?

If you have any questions about the upcoming AML/CTF changes, or would like to discuss your accounting or SMSF requirements, please get in touch with The Hrkac Group.

Our experienced team is here to help you understand what these changes mean and ensure the process is as smooth and hassle-free as possible.

Contact Us to speak with our experienced team today.

[Download further information here].

 

General Advice Warning

This information has been provided as general advice. We have not considered your financial circumstances, needs, or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly neither nor its related entities, employees, or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

 

If you own property – especially an investment property or a family home – a recent ATO draft update is worth paying attention to.

 

The latest update (TD 2026/D1) focuses on what happens tax-wise to a property when someone passes away, and more importantly, who is allowed to live in the home without triggering capital gains tax (CGT) later on.

It might sound technical, but the message is actually very simple.

 

The key idea (in plain English)

If someone is meant to live in your property after you pass away, the will must clearly say so.

If it doesn’t, the property could lose valuable tax protection — even if everyone involved agrees on what was “intended”.

 

Why this matters

Under the tax rules, a home can sometimes stay CGT-free after death if:

• it was the deceased person’s main residence, and
• a specific person has the right to live there

• Informal arrangements don’t count
• Side agreements don’t count
• The executor allowed it” doesn’t count

Only what’s clearly written in the will matters.

 

A real-world example

Let’s say:

• A property owner passes away
• Their spouse or adult child continues living in the home
• Everyone agrees they’re allowed to be there

But…

The will doesn’t clearly say ‘that person has the right to live in the home’

The ATO’s view is that the property may lose its CGT exemption, which could mean tax is payable when the property is sold.

This often comes as a shock – especially years later.

 

What does work (according to the ATO)

• The will clearly names the person
• It clearly states they have the right to live in the property
• The right comes directly from the will itself

 

Why the ATO is taking this approach

The ATO wants certainty.

They don’t want tax outcomes to depend on:

• family discussions
• informal promises
• decisions made after someone has passed away

Their position is basically:

“If it matters for tax, it needs to be written down properly.”

 

What this means for you

If you are:

• a business owner
• a property investor
• planning your estate or succession
• acting as an executor or trustee

This is a strong reminder that tax, estate planning and accounting all need to work together.

A will that isn’t drafted with tax outcomes in mind can unintentionally create:

• avoidable tax bills
• family disputes
• long-term financial consequences

 

The HRKAC Group perspective

At HRKAC Group, we regularly see situations where:

• intentions were clear
• paperwork wasn’t
• and tax outcomes didn’t line up with expectations

This ATO update reinforces why good accounting advice isn’t just about compliance – it’s about planning ahead.

If you’re unsure whether your current structure, property ownership, or estate plan could be affected, it’s worth reviewing it now – not years down the track when a property is sold and tax becomes unavoidable.

 

Final takeaway

If someone is meant to live in your property after you’re gone, make sure it’s clearly written into your will – and reviewed with tax advice in mind.

If this raises questions about your personal situation, our team of Geelong accountants can help guide you through the financial considerations and ensure everything is structured appropriately.

The Hrkac Group is a multi-division firm focused on creating positive outcomes for your future financial growth located in the heart of Geelong. A collective of financial advisers, mortgage brokers, and accountants, focused on creating positive outcomes for your future financial growth

Where legal advice is required, we can also refer you to our trusted business partners at MMH Lawyers, who can assist in reviewing or updating your Will to ensure it complies with current requirements and aligns with your intentions.

Taking a coordinated approach helps provide clarity and peace of mind, knowing your financial and legal affairs are working together.

 

Don’t wait, Contact Us to speak with an experienced accountant today!

General Advice Warning

This information has been provided as general advice. We have not considered your financial circumstances, needs, or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly neither nor its related entities, employees, or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

 

 

 

The Australian Government has proposed a significant new policy called Payday Super, set to take effect on 1 July 2026. Payday super changes how superannuation contributions are managed. This initiative impacts both employees and employers, making timely planning essential for business owners, managers, and staff alike.

What is Payday Super?

Currently, superannuation contributions are typically paid by employers quarterly or monthly. Payday Super requires contributions to be paid on the same day as employees receive their wages (every payday). This change means both employees and employers will experience a shift with super contributions made each payday, rather than in a quarterly lump sum.

For Employees:

• Consistent, frequent contributions mean potential for better long-term growth in superannuation balances, especially important for those planning retirement.
• Greater transparency as regular contributions show up in your fund, giving you better financial oversight.
• Peace of mind with increased visibility over your retirement savings.

For Employers:

• Cashflow planning becomes critical:
  Shifting from quarterly to more frequent payments may affect business cashflow and payroll management.
• Compliance obligations:
  Payments to be made on the same day as wages is required to avoid ATO penalties.
• Need for updated systems:
  Payroll and bookkeeping processes must adapt for the new schedule, with help available from our trusted team of Business Accountants right here in Geelong.

General Advice Warning

This information has been provided as general advice. We have not considered your financial circumstances, needs, or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly neither nor its related entities, employees, or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

Tax returns Geelong

With 1 July just around the corner, now is the time to check in on your tax-time readiness. Whether you’re lodging your own return or meeting with an accounting professional, being across the latest changes can help avoid costly mistakes and unnecessary delays.

 

What’s changing in 2025?

 

From 1 July 2025, interest charged by the ATO will no longer be deductible. This means:

• General Interest Charges (GIC) and Shortfall Interest Charges (SIC) you incur on or after this date can’t be claimed as a deduction
• Even if the debt relates to an earlier income year, the interest is still non-deductible
• However, charges incurred before 1 July 2025 are still deductible in your 2024–25 return

 

This change applies to individuals, businesses, and entities with a substituted accounting period (SAP). If you’re unsure what this means for your next return, our accounting team can help.

 

 

Your tax time checklist

Tick off the essentials to make sure you’re ready to lodge:

 

 1. Income statement

Your employer must finalise your income statement and mark it as “Tax Ready” by 14 July. Don’t lodge your return until this status is confirmed in your ATO portal—doing so early could result in needing to amend your return later.

 

2. Private health insurance

Most health funds provide your tax information directly to the ATO by the end of July, but it’s worth checking your records. You may be liable for the Medicare Levy Surcharge if you or your family didn’t hold appropriate cover for the full year.

 

3. Other income

Interest from bank accounts, dividends, and distributions from managed funds should be visible in your ATO pre-fill data. Make sure everything has been captured before you lodge.

 

4. Home office deductions

If you’ve worked from home during the year, you can claim running expenses. Choose between:

• Fixed rate method: 70 cents per hour worked from home (2024-25) (requires a record of hours worked)
• Actual cost method: Claim based on actual expenses and work-related usage (requires detailed documentation)

 

5. Work-related expenses

Uniforms, protective clothing, tools, subscriptions, and travel may all be deductible—provided you keep valid receipts and can show how the expense relates to your job.

 

6. Super contributions

Did you make any personal super contributions? You may be eligible for a tax deduction, but you’ll need to submit a Notice of Intent to Claim to your super fund before lodging.

 

7. Donations

Only donations to registered charities are tax-deductible. Keep receipts and ensure the charity has DGR (Deductible Gift Recipient) status.

 

8. Rental property income and expenses

If you own an investment property, gather all income and expenses, including mortgage interest, maintenance costs, property management fees, and depreciation reports.

 

9. Capital gains and losses

Sold shares, property, or crypto? You’ll need to calculate your capital gains or losses—even if the gain is exempt, it must be reported.

 

10. Small business owners

Make sure your books are in order:

• Take advantage of the $20,000 instant asset write-off by ensuring eligible assets are acquired and installed ready for use by 30 June.
• Finalise STP payroll by 14 July.
• Ensure all superannuation contributions are received by the employee’s fund before 30 June to be eligible for a tax deduction in the 2024–25 financial year. Super is only deductible in the year it is paid and received by the fund.
• Review any staff bonuses or director payments and ensure they’re recorded properly.
• Review your Accounts Receivables and Accounts Payables for accuracy and write off any bad debts in your Accounts Receivable.
• Complete a Stock Take as at 30^th June to ensure you have accurate Closing Stock on Hand/Work in Progress.

 

 

Tax returns Geelong with the Accounting experts at The Hrkac Group

If you need assistance with lodging your tax return or you have any questions about how to best prepare for tax time and maximise your return, The Hrkac Group team of accountants have the knowledge and are here to help make your life easier.

 

Get in touch and book your tax appointment with the Hrkac Group Accounting professionals today! Call us on (03) 5224 2366 or book an appointment online.

 

General Advice Warning: This information has been provided as general advice and does not take into account your individual objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information with regard to your personal circumstances and seek professional advice.
Liability limited by a scheme approved under Professional Standards Legislation.

Superannuation, or ‘super’, is a way of saving for retirement in Australia. While your employer is required to make contributions to your super, adding a bit more yourself can make a big difference. Here’s why making additional contributions to your superannuation is a smart move.

 

1. Tax Benefits

One of the biggest advantages of contributing extra to your super is the tax benefits. When you make voluntary contributions from your pre-tax income (known as salary sacrifice), these contributions are taxed at a lower rate of 15%, compared to your regular income tax rate, which can be much higher.^[1]This means you can save on taxes while boosting your retirement savings.

 

2. Government Co-Contributions

If you’re a low or middle-income earner, the government may also contribute to your super. For every dollar you contribute after tax, the government might add up to 50 cents, up to a maximum of $500 per year.^[1]This is a great way to get extra money into your super without any extra effort.

 

3. Compound Interest

The earlier you start contributing extra to your super, the more you benefit from compound interest. This means you earn interest on your interest, and over time, this can significantly increase your super balance. Even small additional contributions can grow substantially over the years.^[2]

 

4. Financial Security in Retirement

By making extra contributions, you’re investing in your future financial security. The more you have in your super, the more comfortable your retirement can be. You’ll have more money to cover living expenses, healthcare, travel, and other activities you enjoy.^[3]

 

5. Less Reliance on the Age Pension

With a larger super balance, you may be less reliant on the government Age Pension. This can give you more financial independence and flexibility in retirement. It also means you’re better prepared for any unexpected expenses that might come up.^[3]

 

6. Insurance Benefits

Many super funds offer insurance cover, such as life insurance, total and permanent disability (TPD) insurance, and income protection insurance. By having a higher super balance, you can ensure that you have adequate insurance cover, providing peace of mind for you and your family.^[4]

 

7. Spouse Contributions

If you have a spouse, you can also contribute to their super. This can be particularly beneficial if one partner has a lower super balance. By boosting your spouse’s super, you can both enjoy a more comfortable retirement.^[1]

 

8. Downsizer Contributions

If you’re 55 or older and selling your home, you can make a downsizer contribution to your super of up to $300,000 from the sale proceeds. This is a great way to boost your super balance without affecting your contribution caps.^[1]

 

9. Investment Returns

Super funds invest your money in various assets like shares, property, and bonds. By contributing more, you’re increasing the amount invested, which can lead to higher returns over time. This can significantly grow your super balance, especially if your investments perform well.^[4]

 

10. Peace of Mind

Finally, making extra contributions to your super can give you peace of mind. Knowing that you’re taking steps to secure your financial future can reduce stress and help you feel more confident about your retirement plans.^[2]

 

Conclusion

Making additional contributions to your superannuation is a powerful way to enhance your retirement savings. With tax benefits, government co-contributions, and the magic of compound interest, even small extra contributions can make a big difference. Start today and invest in your future!

 

References
[1] Options for adding to your super | Australian Taxation Office
[2] Personal super contributions | Australian Taxation Office
[3] Top 10 superannuation benefits for saving money | ART
[4] Super contributions – Moneysmart.gov.au

 

The content within this blog has been sourced from our Licensee, Alliance Wealth’s blog ‘Realise Your Dream’.
https://blog.centrepointalliance.com.au/realiseyourdream/boost-your-future

 

General Advice Warning

This information has been provided as general advice. We have not considered your financial circumstances, needs, or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly neither nor its related entities, employees, or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

In recent years, the Australian government has introduced several measures to make electric vehicles (EVs) more accessible and affordable, especially for businesses and individuals looking to adopt greener alternatives. One such measure is the Fringe Benefits Tax (FBT) exemption for eligible electric vehicles (EVs). In this blog, we’ll break down the key aspects of this exemption and how it can significantly reduce the cost of an EV, helping both businesses and individuals save thousands of dollars annually. 

 

What is fringe benefits tax (FBT)?

Fringe Benefits Tax (FBT) is a tax paid by employers on certain benefits provided to their employees or their associates (such as family members) in place of, or in addition to, salary or wages. These benefits can include items like company cars, low-interest loans, free or discounted goods, or entertainment. The tax is calculated based on the value of the benefit provided, and the employer is responsible for paying it. FBT is separate from income tax and is calculated annually, with rates and rules set by the Australian Taxation Office (ATO). The goal of FBT is to ensure that non-cash benefits are taxed appropriately, ensuring fairness between those who receive salary-based compensation and those who receive benefits in kind.

 

What is the FBT Exemption?

The FBT exemption for electric vehicles was introduced to incentivise the uptake of cleaner, zero-emission cars. This exemption removes the FBT on eligible electric vehicles and associated car expenses, which includes the cost of electricity to charge these vehicles. The exemption applies to EVs that meet certain conditions and have a value below the luxury car tax (LCT) threshold for fuel-efficient vehicles, which for the 2023/24 financial year is $89,332. This policy, which took effect from July 2022, makes electric cars much more affordable and attractive to both fleet owners and individuals.

Not only does this exemption reduce the cost of purchasing and maintaining an EV, but it also helps bring the total cost of an electric car closer to that of a comparable petrol or diesel vehicle. For companies and employees, this can mean significant savings, especially when bundled with other tax incentives such as salary packaging arrangements.

 

Eligibility for the FBT Exemption

To qualify for the FBT exemption, the electric car must meet certain criteria, which include the following:

1. Zero or Low Emissions Vehicle: The car must be a battery electric vehicle (BEV), hydrogen fuel cell electric vehicle (FCEV), or a plug-in hybrid electric vehicle (PHEV). However, it must not be a hybrid vehicle that is solely powered by petrol.

2. First Use After 1 July 2022: The car must be first held and used on or after 1 July 2022. This means that even if a car is purchased before this date, it will not qualify for the exemption if it was first used before 1 July 2022.

3. No Luxury Car Tax (LCT): The vehicle must never have been subject to the luxury car tax at the time of its importation or sale.

4. Employee or Associate Use: The exemption applies when the car is used by a current employee or their associate (e.g., family members) for private purposes.

5. Salary Packaging Arrangement: The exemption applies to cars provided through salary packaging arrangements, making it even more advantageous for employees to receive electric cars as part of their compensation package.

 

What Expenses Are Exempt from FBT?

Under the FBT exemption, the following car-related expenses are exempt from FBT:

• Registration: The cost of registering the electric vehicle.
• Insurance: The cost of insuring the vehicle.
• Repairs and Maintenance: Routine repairs and maintenance of the vehicle.
• Fuel (Including Electricity): The cost of electricity used to charge the electric car.

Additionally, if the expenses would have been deductible to the employee had they incurred them themselves, such as the cost of electricity used for charging, the “otherwise deductible rule” can be applied to reduce the FBT on these items.

However, one point to note is that home charging stations are not considered car expenses for FBT purposes. These may instead qualify as a property fringe benefit or an expense payment fringe benefit.

 

How Does This Reduce the Cost of an EV?

The FBT exemption has several benefits, especially when it comes to reducing the overall cost of owning an EV. Here’s how it works:

1. Cost of the Car Itself

For businesses and individuals who are eligible, the FBT exemption means that there is no additional tax burden on the car itself, reducing the effective purchase cost. Without the exemption, FBT could add a significant cost to providing a vehicle for private use, particularly for higher-priced models. With the exemption, EVs under the LCT threshold ($89,332) are much more affordable, especially when compared to conventional petrol or diesel vehicles in the same price range.

2. Lower Annual Running Costs

Beyond the initial purchase cost, EV owners also enjoy lower running costs. With the FBT exemption, the annual costs of maintaining an EV—such as registration, insurance, repairs, and electricity—are reduced. For businesses, this can make fleet management significantly more affordable. For employees who use EVs as part of salary packaging arrangements, the savings can be substantial, with lower out-of-pocket expenses and a reduced tax burden.

3. Salary Packaging Benefits

The exemption is particularly beneficial when the car is provided under a salary packaging arrangement. In this case, employees can pay for their EV through pre-tax income, which reduces their taxable income and consequently their overall tax liability. This arrangement makes EVs an even more attractive option for employees looking to reduce their tax burden and save on car expenses.

 

Transitioning from Plug-in Hybrid Electric Vehicles (PHEVs)

While the FBT exemption for electric vehicles includes plug-in hybrid electric vehicles (PHEVs), it’s important to note that this exemption for PHEVs will expire on 1 April 2025. After this date, PHEVs will no longer be classified as zero or low emissions vehicles under the FBT law.

If you are planning to lease or purchase a PHEV and intend to take advantage of the exemption, it’s wise to do so before the deadline to ensure maximum savings.

Please note that whilst there are grandfathering provisions for eligible PHEVs before this date – the grandfathering rules are quite strict and there are many circumstances that could result in the loss of that grandfathering.

 

Charging and Electricity Costs

Charging costs are a crucial part of the savings an EV owner can make. The cost of electricity used to charge an eligible electric vehicle is exempt from FBT. However, determining the cost of electricity can sometimes be tricky, especially when charging at home, as it is mixed with the household’s overall electricity consumption.

To simplify this, the government has introduced the EV home charging rate, which is 4.20 cents per kilometre for zero-emission electric vehicles. This can be used to calculate the portion of electricity costs associated with the car when charging at home. Commercial charging station costs can be included as well if the percentage of electricity used for the vehicle can be accurately determined.

 

Reporting and Compliance

Even though the private use of an eligible electric vehicle is exempt from FBT, it is still considered a reportable fringe benefit. This means that businesses must work out the notional taxable value of the benefits associated with the private use of the electric car and report it accordingly. It’s important for businesses to keep accurate records of usage and any associated costs to ensure compliance with reporting requirements.

 

Conclusion

The FBT exemption for electric vehicles is an excellent opportunity for businesses and employees to reduce the cost of purchasing and operating an EV. By removing the fringe benefits tax on eligible EVs and associated expenses, the policy makes it easier for businesses to adopt more sustainable fleets and for employees to enjoy the benefits of driving an electric car without the added tax burden.

As the market for electric vehicles continues to grow, this exemption will likely play a key role in supporting the transition to a greener, more sustainable future. However, with the PHEV exemption set to expire in 2025, it’s crucial to act soon if you plan to take advantage of this tax break for plug-in hybrid vehicles.

If you have any questions about how the FBT exemption works or how it might apply to your business or personal situation, don’t hesitate to reach out to the team at The Hrkac Group for advice and assistance. Contact us today via our online booking form or call our Geelong office on (03) 5224 2366 to schedule a consultation and take the next step towards a healthier financial future.

Superannuation is an important part of employees’ retirement plans, but ensuring contributions are paid on time has often been a complex affair. In response to these challenges, the Australian Government has announced significant changes affecting how and when employers pay superannuation contributions.

Starting from 1 July 2026, employers will be required to pay their employees’ superannuation at the same time as their salary and wages. This move, known as Payday Superannuation, aims to streamline the process and make it easier for employees to receive their superannuation contributions on time. In this blog, we’ll walk you through what these changes mean for both employers and employees and how you can prepare for the transition.

What is Payday Superannuation?

Payday Superannuation is a reform set to take effect from 1 July 2026, which mandates that employers must pay superannuation guarantee (SG) contributions at the same time they pay employee wages. This means no more delays between when employees are paid and when their super is contributed to their super funds.

As of now, employers are required to pay superannuation at least quarterly, and there’s no requirement to pay it with the employee’s salary and wages. However, this new reform will align the timing of super contributions with employees’ payday, ensuring they receive their super on time, every time.

Why Is Payday Superannuation Being Introduced?

The introduction of payday superannuation is aimed at addressing concerns about delayed super contributions. The current quarterly payment system can lead to delays, with employees sometimes waiting months for their superannuation payments to reach their accounts.

By requiring employers to pay super at the same time as salaries, the government aims to ensure that employees are not left waiting for their retirement savings. This change will also simplify the process for employers, who will no longer have to track quarterly deadlines or deal with complex payment systems.

Key Changes to Expect

1. Paying Super at the Same Time as Salary and Wages: From 1 July 2026, employers will be required to pay superannuation contributions alongside salary and wages. Each time an employer pays ordinary time earnings (OTE) to an employee, there will be a new “due date” for contributions. Employers will need to ensure that the superannuation payments are made to the employee’s super fund within 7 days of payday.

2. Super Guarantee Charge (SGC): If an employer fails to make the superannuation contributions on time, they will be liable for the Super Guarantee Charge (SGC). The SGC is a penalty imposed on employers for late payments, and it includes:

• Outstanding SG shortfall: This is the amount of super that wasn’t paid on time, calculated based on the employee’s OTE.
• Notional earnings: This is an interest component that compensates the employee for the delay in receiving their super contributions.
• Administrative uplift: This fee is charged to reflect the cost of enforcing superannuation compliance.

Employers will also face interest and further penalties if the SGC is not paid in full by the due date. Fortunately, the SGC will be tax-deductible, which means the tax implications of paying super on time will be consistent with the rest of a business’s financial obligations.

3. Retirement of the Small Business Superannuation Clearing House (SBSCH): The SBSCH, which currently helps small businesses manage their superannuation payments, will be decommissioned by 1 July 2026. In its place, businesses will be encouraged to use more modern and efficient payroll software solutions. These new systems will make it easier for employers to pay super contributions on time and accurately.

4. Updated SuperStream Standards: To improve the flow of superannuation payments, the government is updating the SuperStream system. Super funds will now have just 3 business days to allocate or return contributions, down from the previous 20 business days. This change will ensure faster processing and fewer delays in the superannuation system.

5. STP Reporting Changes: Employers will need to report both the employee’s ordinary time earnings and total super liability through Single Touch Payroll (STP). This means that superannuation contributions will be reported directly to the Australian Taxation Office (ATO) in real-time, ensuring the super is tracked and identified correctly.

How Will This Affect Employers?

For employers, these changes will require significant adjustments to payroll systems and processes. Here’s how you can prepare:

1. Adopt New Payroll Software: With the SBSCH being retired, it will be important for employers, especially small businesses, to switch to more advanced payroll software. These systems will integrate with SuperStream and ensure super is paid on time.

2. Plan for Payment on Payday: Employers will need to adjust their payroll schedules to ensure that superannuation contributions are paid every time an employee is paid. This change may affect cash flow and will require businesses to review their payroll processes.

3. Review Reporting Obligations: Employers will also need to ensure that their reporting under Single Touch Payroll (STP) includes the necessary details about superannuation contributions. This may involve working with payroll providers to ensure accurate reporting.

4. Keep Track of Due Dates: Each payday will bring a new “due date” for super contributions. Employers will need to make sure that contributions are received by the superannuation fund within 7 days of payday, or they may face penalties.

5. Budget for Potential Costs: Failure to meet the new obligations may result in financial penalties and additional costs. Employers should factor these potential costs into their budgets and ensure they comply with the new rules to avoid unnecessary charges.

 

How Will This Affect Employees?

Payday superannuation will benefit employees as they will no longer have to wait months for super contributions to be deposited into their accounts. Here’s how employees will benefit:

1. Faster Super Payments: Employees will receive their super contributions on the same day as their pay, ensuring they have timely access to their retirement savings.

2. Clearer Records: Employees will be able to track their superannuation contributions more easily since they will be paid with each salary or wage payment, making it simpler to monitor their retirement savings.

3. More Consistent Contributions: Employees can expect more consistent super contributions, which may lead to better retirement outcomes over time.

 

Preparing for Payday Superannuation

The move to payday superannuation is a positive step towards improving the superannuation system for both employers and employees. While there will be some changes and new responsibilities for employers, the ultimate goal is to make superannuation contributions more timely, accurate, and transparent.

Employers should start preparing now by adopting modern payroll software, ensuring they understand their reporting obligations under STP, and planning for the transition. Employees can look forward to more timely and consistent super contributions, making it easier to save for the future.

The transition to payday superannuation may seem challenging at first, but with proper planning and the right tools, businesses can navigate these changes smoothly and avoid unnecessary penalties.

If you have any questions or need assistance in understanding how payday superannuation will impact your business, don’t hesitate to reach out to us at The Hrkac Group. We’re here to help you make sense of the new regulations and ensure that you stay compliant with the upcoming changes. Contact us today via our online booking form or call our Geelong office on (03) 5224 2366 to schedule a consultation and take the next step towards a healthier financial future.

 

The Hrkac Group is a full-service Geelong firm providing integrated Accounting, Financial Planning, Mortgage Broking, Business Advisory, Conveyancing and outsourced Bookkeeping under one roof to help individuals and businesses manage and grow their wealth.

It’s tax time again! The end of the financial year seems to arrive quicker every year. This can be a stressful time of year that many of us might dread, however, utilising the end of the financial year can be the perfect opportunity to organise your finances.

To avoid the hassle of amendments and ensure your tax return is correct and complete, we recommend waiting until all of your information is available on your ATO records, including possibly:

1. Your income statement/(s) status is “Tax Ready” before proceeding to lodge your return
2. Ensuring Private Health Insurance Information is available
3. Any other income, such as Interest, dividends and managed funds, is available on your ATO records

 

When to complete your tax return

When your income statement is marked as “Tax Ready,” it means your employer has finalised all relevant details regarding your wage, tax, and super contributions. Using this final information will ensure the accuracy of your tax return.

Lodging your return with a “Not Tax Ready” status means you will be relying on incomplete or estimated information, which will increase the risk of errors and potential discrepancies. If your employer finalises your income statement after you’ve lodged your return, you will need to amend your return, which can be time-consuming and may result in additional tax liabilities and penalties may apply.

 

Income Statements (Formally known as Payment Summaries or Group Certificates)

To proceed with lodging your tax return, you first must have a summary of employee income, which is also known as an Income Statement (Formally known as a Payment summary or group certificate).

Every year, all workers must have access to this information provided by their employer by July 14^th. The same deadline still applies, regardless of if the amount being withheld is $0.

 

Private Health Insurance

Due to recent changes made by the Australian Government, health funds are no longer obligated to automatically provide members with an annual tax statement via mail or email. If you file your tax return online using myTax or through a registered tax agent, you no longer need to manually enter your health insurance tax information, and it will be automatically filled in by late July.

If you and your entire family unit don’t have the appropriate private patient hospital cover, you may be liable for the Medicare Levy Surcharge (MLS) in addition to the 2% Medicare Levy. The surcharge amount does differ as it depends on your income and individual circumstances. By you and your entire family unit purchasing suitable hospital coverage through an approved health insurer, you can avoid this surcharge at tax time. (Please note that this can be apportioned on a daily basis where coverage commences part-way through a year)

 

Home Office Deductions

The number of people working from home has increased since COVID-19. If you work from home, you may be eligible to claim deductions for related expenses. These deductions can include costs for stationery, energy, and office equipment.

Per 2023 financial year, there are two methods and both require you to maintain relevant records and documentation. This includes:

1. Fixed Rate Method – Require a record of all the hours you work from home for the entire year
2. Actual Cost Method – Require a record and documentation of all your home office expenses and the business use percentage

If you would like to check your eligibility and find out more information on what you can claim, you can learn more here.

 

Support for Small Businesses

As part of the 2024–25 Budget on May 14, 2024, the government proposed an extension on the $20,000 instant asset write-off for small businesses by an additional 12 months until June 30, 2025. This measure aims to improve cash flow and reduce compliance costs.

Small businesses with a turnover of less than $10 million can immediately deduct the cost of eligible depreciating assets under $20,000. This applies to assets used or installed between July 1, 2023, and June 30, 2025. “Immediately deductible” means claiming a tax deduction in the same year the asset is purchased and used. For GST-registered businesses, the cost must be under $20,000 after GST credits; for non-registered businesses, it must be under $20,000 including GST, applying to each individual asset. (Please note that neither the 2024 or 2025 Financial Years have been Legislated yet and the Senate is requesting that the limit be set at $30,000).

 

Tax returns Geelong with the experts at The Hrkac Group

If you need assistance with lodging your tax return or you have any questions about how to best prepare for tax time and maximise your return, The Hrkac Group team of accountants have the knowledge and are here to help make your life easier.

Get in touch and book your tax appointment with the HG Accounting professionals today! Call us on (03) 5224 2366 or book your appointment here.

 

General Advice Warning

This information has been provided as general advice. We have not considered your financial circumstances, needs, or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly, neither nor its related entities, employees, or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

Liability limited by a scheme approved under Professional Standards Legislation.

From March 31^st 2024, changes to the Victorian WorkCover Laws were introduced. They have been made under the Workplace Injury Rehabilitation and Compensation Amendment to modernise the scheme. This has come about due to the scheme being referred to as “fundamentally broken”. It was no longer meeting the needs of those whom it was originally designed for over 30 years ago.

In 2023/2024 Victorian employers experienced a rise of 42% in their WorkCover Premiums which increased from 1.27% to 1.8%. WorkSafe has announced the rate for 2024/2025 will not see any increases and will remain at 1.8%.

Individual businesses will continue to expect changes to their premium rate as they are based on specific experiences within their respective industry. However, employers who are experiencing a significant increase in their industry could find their premiums increasing by up to 30% in 2024/2025.

 

What changes have been made?

 

Mental Injury Eligibility

Mental Injury claims in comparison to Physical Injury claims have proven to be more expensive. This is due to workers suffering from Mental Injuries generally remain off work for longer periods of time. It’s said by the year 2030, we can expect a third of all claims will be related to mental injuries. In order for WorkSafe to combat these existing challenges, changes in eligibility requirements have been outlined and will apply to any mental injuries sustained on or after 31 March 2024.

A new mental injury definition has been put in place. In order to be eligible for compensation, the following definition must be met. “A mental injury is defined as an injury that causes significant behavioural, cognitive or psychological dysfunction, and has been diagnosed by a medical practitioner in accordance with the Diagnostic Statistical Manual of Mental Disorders.”

Along with the modernisation of the scheme, new exclusions for stress and burnout have been outlined.

 

Ineligible Compensation

Workers will be ineligible to receive compensation if the cause of stress or burnout is one or more of the following:

• Pressures around an increased workload
• Working additional hours
• Interpersonal conflict with co-workers that is not considered bullying or harassment

Typically, the above reasons will be considered as:

• Usual or typical
• Reasonably expected to occur in the course of their duties

 

Exemptions to Eligibility

Workers may remain eligible for compensation and an exemption of this rule will apply if they are exposed to situations including:

• Repeated and unreasonable conflict with people, which is considered bullying and harassment
• If a worker’s mental injury has been predominantly caused by stress or burnout resulting from traumatic events that are considered usual or typical and reasonably expected to occur in their work

If you are seeking further information on Mental Injury eligibility, download the information sheet here.

 

Second Entitlement Review

 

130 Week – Additional Whole Person Impairment Requirements

Previously, as workers approached their 130 weeks of weekly paid compensation, they would need to review their claim. Reviewing the claim would then determine if payments would be extended past the original 130 weeks. Generally, the final outcome would result in the termination of future payments.

To continue to receive weekly payments once 130 weeks have been exceeded, an additional requirement has been implemented, which includes:

• Having a whole person impairment (WPI) of 21% or more and
• Meet the existing capacity test requirement

The WPI requirement will only apply to claims that reached 130 weeks on, or after 31 March 2024. From this date for weekly compensation to continue to be paid post 130 weeks, it must additionally be determined by an independent medical examiner that a worker has a whole person impairment as a result of their injury or injuries from the same event of 21% or more.

For further information on whole-person impairment, download the information sheet here.

 

Further supported changes

 To improve the way the WorkCover scheme operates, a number of supporting changes have also been made and make sure the changes in the Scheme Modernisation Act are effective. These include:

• Changes to WorkSafe’s ability to share information across business units
• Requirements for certain rejected claims that can’t be resolved through conciliation to be determined by the courts, instead of arbitration
• Independent reviews of the changes introduced under the Scheme Modernisation Act to be conducted by a panel of experts in 2027
• Establishment of the Return to Work Advisory Committee, to provide advice to the WorkSafe Victoria Board on return-to-work initiatives

 The implemented changes are set to deliver a more sustainable scheme to ensure Victorian workers are supported well into the future.

 

Get professional advice from an Expert Geelong Accountant at the Hrkac Group

If you need assistance with navigating your business through these changes or are seeking any further business advice, contact The Hrkac Group Geelong-based Accounting team. You can make an appointment via email or phone (03) 5224 2366.

 

General Advice Warning

This information has been provided as general advice. We have not considered your financial circumstances, needs, or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly, neither nor its related entities, employees, or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

Liability limited by a scheme approved under Professional Standards Legislation.

The Albanese Government recognises the economic realities of 2024: Australians are under pressure right now and deserve tax cuts.

It has been announced that The Albanese Labor Government is delivering a tax cut. This is for every Australian taxpayer to provide targeted cost of living relief, for broader and better” outcomes.

These new tax cuts are designed to provide bigger tax cuts for middle Australia. Set to make a real difference to 13.6 million taxpayers. Mr Albanese states these changes will help with easing the cost of living. All whilst making the system fairer and boosting workforce participation.

“Our plan will more than double the benefit for Australians on the average income. And it will look after low-income earners and part-time workers as well,” Mr Albanese said.

 

From 1 July 2024, the Albanese Labor Government has proposed:

• Reduce the 19 percent tax rate to 16 percent (for incomes between $18,200 and $45,000).
• Reduce the 32.5 percent tax rate to 30 percent (for incomes between $45,000 and the new $135,000 threshold).
• Increase the threshold at which the 37 percent tax rate applies from $120,000 to $135,000.
• Increase the threshold at which the 45 percent tax rate applies from $180,000 to $190,000.

 

These proposed changes would result in the following:

• All 13.6 million taxpayers will receive a tax cut – and 2.9 million more taxpayers will receive a tax cut compared to Morrison’s plan.
• 5 million taxpayers (84 percent of taxpayers) will now receive a bigger tax cut compared to Morrison’s plan
• 8 million women (90 percent of women taxpayers) will now receive a bigger tax cut compared to Morrison’s plan.
• A person with an average income of around $73,000 will get a tax cut of $1,504 – that’s $804 more than they were going to receive under Morrison’s plan.
• A person earning $40,000 will get a tax cut of $654 – compared to nothing under Morrison’s plan.
• A person earning $100,000 will get a tax cut of $2,179 – $804 more than they would receive under Morrison’s plan.
• A person earning $200,000 will still get a tax cut, which will be $4,529.
• The Government will increase the Medicare levy low-income thresholds for 2023-24.

 

Proposed Changes Summarised

2023-24		2024-25
Thresholds ($)	Rates (%)	Thresholds ($)	Rates (%)
0 – 18,200	Tax-free	0 – 18,200	Tax-free
18,201 – 45,000	19	18,201 – 45,000	16
45,001 – 120,000	32.5	45,001 – 135,000	30
120,001 – 180,000	37	135,001 – 190,000	37
Over 180,000	45	Over 190,000	45

 

Geelong Accounting

The proposed changes outlined in this blog will necessitate legislative changes, therefore the implementation of these changes into legislation remains uncertain.

As you prepare for your next tax return, it’s always advisable to consult with a tax accountant or use a reliable tax calculator to understand the changes and accurately estimate your tax obligations. Staying informed about tax policy updates is crucial to ensure compliance.

The expertise and experience of our Geelong Accountants at The Hrkac Group can help you with any tax return enquiries you may have.

To make an appointment to meet with one of our friendly Geelong Accountants, contact us via email or phone (03) 5224 2366.

This information has been provided as general advice. We have not considered your personal or financial circumstances, needs, or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.

A recent review of the Privacy Act Exemption in Australia has brought forth a pivotal change. This will impact small businesses with an annual turnover of $3 million or less. In this article, let’s explore the reasons behind this shift. We’ll delve into the significant proposals made by the review, and discuss the implications of these changes for small businesses. We’ll also look at the steps the government plans to take to ensure a smooth transition while safeguarding individuals’ privacy.

 

A Changing Landscape of Privacy:

The digital age has ushered in a new era of data privacy concerns. Personal information is more vulnerable than ever. To misuse and data breaches, making the protection of this data of paramount concern. The Privacy Act in Australia plays a crucial role in safeguarding individuals’ privacy, but its application hasn’t been consistent. Small businesses, with annual turnovers of $3 million or less, have been exempt from certain privacy obligations. This is set to change.

 

Proposals from the Privacy Act Review:

The Privacy Act review has proposed several key changes aimed at strengthening data privacy. These proposals have gained the government’s support, marking a significant shift in the country’s privacy regulations. The proposed changes include giving individuals greater control over their privacy. This is done by ensuring entities seek informed consent regarding the handling of their personal information. Additionally, entities will be held accountable for the way they handle individuals’ information. With enhanced requirements for information security and destruction of data when it’s no longer needed. Moreover, the review seeks to simplify obligations for entities handling personal information on behalf of others and introduces the idea of a Children’s Online Privacy Code to provide stronger protections for children online.

 

Removal of the Small Business Exemption:

One of the most substantial proposals from the Privacy Act review is the removal of the small business exemption. This exemption had previously spared small businesses with annual turnovers of $3 million or less from certain privacy obligations. However, the review committee found that community expectations around privacy had evolved, and they fully expected their personal information to be safeguarded. The removal of this exemption is a clear reflection of the changing landscape of data privacy, but it comes with a caveat. The government has acknowledged that further consultation with small businesses and their representatives is necessary to understand the full impact of this change.

 

Implications for Small Businesses:

The removal of the small business exemption carries significant implications for small businesses across the nation. They will now need to adapt to a new set of regulatory requirements, which could prove challenging. Non-compliance with these new regulations could result in penalties, fines, and reputational damage. Therefore, small businesses must not only understand these changes but also put in place strategies to adhere to the Privacy Act and protect customer data.

 

Ensuring Compliance and Data Protection:

Small businesses can prepare for the changes by conducting a privacy impact analysis and data audit. These assessments will help in understanding the extent of data handling and its potential vulnerabilities within the organisation. Implementing robust data protection policies and practices will be key to ensuring compliance with the evolving regulations. These policies should cover data security, access control, encryption, and procedures for data destruction when it is no longer required.

  

Government’s Commitment to Privacy:

The government has demonstrated a strong commitment to ensuring data privacy in the digital age. This commitment is not new; it builds upon past actions. In the previous year, the government significantly increased penalties for privacy breaches and empowered the Australian Information Commissioner with greater authority to address such breaches. In response to the changes brought about by the Privacy Act review, the government will conduct an impact analysis. The government is also set to collaborate with community members, businesses, media organisations, and government agencies to develop legislation and guidance material that aligns with the new privacy landscape.

  

The Expectations of Australians:

Australians are increasingly reliant on digital technologies in various aspects of their lives. Whether it’s for work, education, healthcare, or everyday commercial transactions, the digital realm plays a crucial role. In this context, when Australians are asked to share their data, they rightfully expect that it will be handled and protected with the utmost care and security.

 

The removal of the small business exemption from the Privacy Act signifies a significant transformation in Australia’s data privacy and protection approach. While it may pose challenges for small businesses, it is crucial for ensuring individuals’ privacy and building trust in a digital age. The government’s commitment to working with small businesses and other stakeholders is a positive step toward a smooth transition. As the digital landscape continues to evolve, small businesses need to adapt, prioritise data protection, and honour the trust that customers place in them. This change is a reminder that data privacy is a shared responsibility. All entities, regardless of size, must play their part in safeguarding personal information.

 

Geelong Accountants

If you’re interested in knowing more about your obligations as a small business, speak to the expert Geelong accountants at The Hrkac Group. Non-compliance with these new regulations carries the risk of penalties. Small businesses need to understand these changes and put strategies in place to adhere to the Privacy Act and protect customer data. Contact our experienced team of Geelong accountants if you need help implementing data protection policies and practices to ensure compliance with the evolving regulations.

To make an appointment with one of our friendly Geelong accountants today, contact us via email or phone (03) 5224 2366.