Advice

Contractor Rights and Entitlements

24/09/2025 Amanda Palmer

Quick Summary for Independent Contractors

Independent contractors in Australia don’t receive traditional employee entitlements like minimum wage, annual leave, or redundancy pay unless negotiated in contracts.
New “whole of relationship tests” determine employment status based on actual working arrangements, not just contracts.
Sham contracting (being misclassified as a contractor when you’re really an employee) is illegal and you can seek help from Fair Work.

If you’re working as an independent contractor in Australia, the landscape shifted significantly in 2024. While contractors have always occupied a different space than employees, recent changes mean you now have more protections and clearer rights. Let me walk you through what you’re entitled to, what you’re not, and the game-changing updates you need to know about.

What Contractors DON’T Get (Unless You Negotiate It)

Let’s start with the reality check. Unlike employees, independent contractors don’t automatically receive:

Minimum wage rates – You negotiate your own pricing
Annual leave, sick leave, or personal leave – No paid time off unless it’s in your contract
Maximum weekly working hours protection – You control your schedule (and workload)
Notice of termination – Contracts can usually be ended with whatever notice is specified
Redundancy payments – No safety net if work dries up
Public holiday pay – You don’t get paid for days you don’t work

This might sound harsh, but remember: contractors typically charge higher rates precisely because they’re covering these gaps themselves.

What Contractors DO Get

Even though contractors miss out on traditional employee benefits, you still have important rights:

Workplace Safety

All workers in Australia, including contractors, are entitled to a safe workplace. Your clients must still comply with work health and safety laws, regardless of your employment status.

Superannuation Entitlements

Here’s a big one that catches many contractors off guard: if you’re paid mainly for your labour (rather than delivering specific outcomes), your client might need to pay super contributions for you. This applies when:

More than half your contract value is for your time and skills
You can’t delegate the work to someone else
You’re paid for your labour rather than achieving a specific result

Having an ABN doesn’t change this – it’s about the actual working relationship.

Protection from Sham Contracting

It’s illegal for businesses to misrepresent an employment relationship as a contracting arrangement. If you’re working like an employee but being treated as a contractor, you may be entitled to employee benefits and back-payments.

The Game-Changer: Protection from Unfair Contract Terms

Since 26 August 2024, contractors earning below the high income threshold ($183,100 from 1 July 2025) can apply to the Fair Work Commission if they believe contract terms are unfair. This is huge – it’s similar to unfair dismissal protections for employees.

The 2024 Changes That Affect You

The contractor landscape changed dramatically in August 2024. Here’s what you need to know:

New Relationship Tests

Some businesses now use a “whole of relationship test” to determine if someone is an employee or contractor. This is important because it looks at your entire working relationship, not just what’s written in your contract.

Key factors include:

How much control the business has over your work
Whether you’re integrated into their business operations
If you can delegate work to others
Whether you’re taking commercial risks
How dependent you are on this client for income

Regulated Workers: A New Category

A new category called “regulated workers” now exists, which includes:

Digital platform workers (like Uber drivers, food delivery riders)
Some road transport contractors

If you’re a regulated worker, you get additional protections including help from the Fair Work Commission if your platform unfairly deactivates you.

Enhanced Unfair Contract Protections

The Fair Work Commission can now help contractors challenge unfair contract terms that relate to workplace relations matters like:

Hours of work
Pay rates
Leave entitlements (if they exist in your contract)
Termination conditions

To be eligible, you need to earn less than the contractor high income threshold and your contract must have been made on or after 26 August 2024.

How to Know if You’re Being Misclassified

Think you might actually be an employee rather than a genuine contractor? Here are the warning signs:

Your client controls how, when, and where you work
You work set hours dictated by them
You can’t send someone else to do the work
You’re paid by the hour rather than for completing specific tasks
You use their equipment and work from their premises
You’re integrated into their business operations
They provide training like they do for employees
You only work for this one client

If several of these apply, you might be in a sham contracting arrangement and could be entitled to employee benefits.

What About International Contractors?

If you’re a temporary resident working in Australia (backpacker, student, temporary skilled worker), you’re generally still entitled to super contributions if the work meets the criteria. The same contractor vs employee rules apply regardless of your visa status.

For Australian contractors working overseas, the rules get more complex depending on tax treaties and bilateral agreements. If you’re regularly working internationally, it’s worth getting specific advice.

Challenging Unfair Contract Terms: How It Works

Since August 2024, contractors can apply to the Fair Work Commission if they believe a contract term is unfair. The Commission will consider:

Whether there’s a significant power imbalance between you and the business
Whether the term is reasonably necessary to protect legitimate business interests
Whether the term would cause detriment to you

You can only challenge terms that would relate to workplace relations matters if you were an employee (like pay, hours, or working conditions).

When to Get Help

If you think you’re being misclassified as a contractor when you’re really an employee, or if you believe your contract terms are unfair, there are places to get help:

Fair Work Ombudsman (13 13 94) for general advice and sham contracting issues
Fair Work Commission for unfair contract term applications (since August 2024)
ATO for super guarantee entitlement questions
Legal advice for complex situations

Your Rights Moving Forward

The 2024 changes represent a significant shift toward better protection for contractors, especially those in potentially vulnerable situations. While you still won’t get traditional employee benefits unless you negotiate them, you now have:

Better protection against truly unfair contract terms
Clearer pathways to challenge misclassification
Enhanced rights if you’re a regulated worker
Stronger protections against sham contracting

The Bottom Line

Being an independent contractor in Australia means taking on more risk and responsibility, but it also means having more control over your work and potentially higher earnings. The 2024 changes have strengthened your position without undermining the fundamental contractor model.

The key is understanding your rights, recognising when you might be misclassified, and knowing where to get help when you need it.

Remember: your working relationship should genuinely reflect contracting, not just be labelled that way. If it walks like employment and talks like employment, it probably is employment – regardless of what your contract says.

Need Advice on Your Situation?

Whether you’re questioning your contractor classification or want to understand how the 2024 changes affect you, getting proper advice can save you time, money, and stress down the track.

Get in touch to discuss your specific circumstances. I work with contractors across various industries and can help you understand your rights and obligations.

Remember: This information is general in nature and doesn’t replace personal advice. Every situation is different, so always get professional advice for your specific circumstances.

Do I have to pay Super to a Contractor? Your Business Owner’s Guide

27/08/2025 Amanda Palmer

Quick Summary for Business Owners

Australian businesses must pay superannuation guarantee (SG) contributions to independent contractors who are paid mainly for their labour (more than 50% of contract value), where payment is for personal labour and skills rather than specific outcomes, and where the work cannot be delegated.
Having an ABN doesn’t automatically exempt contractors from super entitlements.
Sham contracting (misrepresenting employment as contracting) carries severe penalties including back-payments with interest and ATO penalties.

If you are trying to work out super obligations for a contractor, the answer isn’t as simple as you’re hoping. Sometimes yes, sometimes no, and the devil (as always) is in the details. But don’t worry – I’m here to break it down in plain English so you can sleep soundly knowing you’re doing the right thing by your contractors and keeping on the good side of the ATO.

The Quick Answer (For Those in a Rush)

If your contractor is working mainly for their labour and you’re essentially treating them like an employee in all but name, then yes – you’ll likely need to pay super. But if you’re genuinely contracting for a specific outcome or result, then probably not.

Still with me? Good, because there’s a bit to unpack here.

Let’s Start with Definitions (Without the Jargon)

Before we dive deeper, let’s get clear on what we’re actually talking about:

Employee: Someone who works for you under your direction and control. You tell them how, when, and where to do their job. They’re integrated into your business and usually work set hours.

Independent Contractor: Someone who runs their own business and provides services to you. They control how they do the work, use their own tools, and can delegate tasks to others.

Subcontracting through an agency: When you contract with a company or agency, and they send one of their workers to do the job. You’re dealing with the agency, not the individual worker.

When Contractors Become “Employees” for Super Purposes

Here’s where it gets interesting (and where a lot of business owners get caught out). The ATO has specific rules about when independent contractors are actually considered employees for superannuation purposes.

You’ll need to pay super if your contractor ticks all three of these boxes:

The contract is mainly for their labour – More than half the value of what you’re paying is for their time and skills, not materials or equipment
You’re paying for their personal labour and skills – The payment isn’t dependent on them achieving a specific result
They must do the work themselves – They can’t delegate it to someone else

Let me give you a real-world example that might sound familiar:

Case Study: Sarah’s Speech Therapy Practice

Sarah runs a busy speech therapy practice and contracts Emma, a freelance admin assistant, to handle reception duties for 20 hours per week. Emma has an ABN and sends invoices, but she must be there personally to answer calls and greet clients during set hours.

Even though Emma has an ABN and calls herself a contractor, she’s actually an employee for super purposes because:

The contract is 100% for her labour (no materials or equipment involved)
She’s paid for her time, not for achieving a specific outcome
Sarah requires Emma to do the work personally

Result? Sarah needs to pay super contributions for Emma, just like any other employee.

Compare That to This Scenario:

Sarah also contracts Mike’s Maintenance Services to repaint her clinic. Mike (a sole trader) quotes a fixed price for the job and completes it over two weekends.

Even though Mike is a sole trader doing the work himself, he’s a genuine contractor because:

Sarah is paying for a specific result (freshly painted walls)
The contract includes both labour and materials
Mike controls when and how he does the work

Result? No super obligations for Sarah.

The Company/Trust/Partnership Exception

Here’s a handy rule that might save you some headaches: if you contract with a company, trust, or partnership (rather than an individual), you generally don’t have super obligations for the people they send to do the work.

For example, if you hire “ABC Cleaning Services Pty Ltd” and they send John to clean your offices, you don’t need to pay super for John. That’s ABC Cleaning Services’ responsibility for their subcontractors.

Understanding Outsourcing and Subcontracting

Let’s clear up some confusion around these terms, because they often get mixed up.

Outsourcing is when you engage someone outside your business to handle tasks or functions for you. This can take different forms:

Business Outsourcing: Handing over an entire business function to another company. Think hiring a payroll company to handle all your payroll, or a marketing agency to completely manage your social media presence. You’re buying the outcome, not the labour.

Subcontracting: This is actually a type of outsourcing where you bring in someone to work on specific tasks, often alongside your team and sometimes under your direction. This is where you’re more likely to run into super obligations.

The key difference isn’t the label you use – it’s about the level of control and integration.

The Practical Stuff: What You Need to Do

If you determine your contractor is actually an employee for super purposes, here’s your to-do list:

Pay the Superannuation Guarantee – 12% from 1 July 2025
Calculate it on the labour component only – Don’t include materials, equipment, or GST
Offer choice of fund – Give them 28 days to choose their super fund
Pay quarterly – Don’t wait until year-end

And here’s what doesn’t count: just adding an extra amount to their pay and calling it “super.” You actually need to make contributions to a super fund.

Red Flags That Scream “This is Really an Employee”

Watch out for these warning signs that your “contractor” might actually be an employee for super purposes:

They work set hours that you dictate
They use your equipment and work from your premises
You control how they do their work
They can’t send someone else to do the job
They’re paid by the hour rather than for completing a specific task
They’re integrated into your business operations
They only work for you (no other clients)

Beware of Sham Contracting

Here’s something that gets businesses into serious hot water: sham contracting. This happens when you tell someone they’re a contractor when they’re actually working as an employee. It’s illegal, and the penalties are severe.

If you’re found to be sham contracting, you could face:

Back-payment of super contributions with interest
Penalties from the ATO
Claims for unpaid employee entitlements
Significant legal costs

The best protection? Make sure your working arrangements genuinely reflect a contracting relationship, not just the paperwork.

International Workers: What You Need to Know

If you’re working with international contractors or have staff working overseas, there are specific super rules:

International Workers in Australia: You’re still required to pay super guarantee contributions for temporary residents, including backpackers, temporary skilled workers, and international students. The same contractor vs employee rules apply.

Australian Employees Working Overseas: If you send Australian employees to work temporarily overseas, you still need to pay their super contributions in Australia. You may be able to apply for a “certificate of coverage” to avoid paying super in both countries.

Exemptions: Non-resident employees working outside Australia, some foreign executives with specific visas, and workers covered by bilateral super agreements may be exempt.

Getting It Right for NDIS and Allied Health Businesses

If you’re in the NDIS or allied health space, this stuff gets even more important. Common scenarios I see:

Contracting sessional therapists for specific client work (often genuine contractors)
Hiring admin support that works set hours (usually employees for super purposes)
Bringing in locum professionals to cover leave (depends on the specific arrangement)

The reality is that the line between contractor and employee has become more blurred with recent legislative changes.

The Bottom Line

Having an ABN doesn’t automatically make someone a contractor for super purposes. It’s all about the nature of the relationship and how the work is structured.

When you’re genuinely contracting for specific outcomes or results, you’re usually in the clear. But when you’re essentially hiring someone to work as part of your team under your direction, super obligations likely apply – regardless of what you call them.

The key is being honest about the real nature of the working relationship, not just the label you put on it.

Need Help Sorting This Out?

If you’re reading this thinking “I’m not 100% sure about my contractors,” don’t stress. That’s exactly what I’m here for. As someone who’s helped countless businesses navigate these tricky waters (especially in the NDIS and allied health sectors), I can help you figure out where you stand and put proper systems in place.

Get in touch for a chat about your specific situation. Trust me, it’s much better to sort this out proactively than to deal with it during an audit!

Remember: This information is general in nature and doesn’t replace personal advice. Every situation is different, so always get professional advice for your specific circumstances.

Advice Business Education

QLeave Explained: The Employer Obligation You Can’t Ignore

22/07/2025 Amanda Palmer

Summary:

QLeave is Queensland’s mandatory portable long service leave scheme for community services, construction, and contract cleaning industry employers and workers
This comprehensive guide explains QLeave registration requirements, quarterly reporting obligations, and the 1.35% levy rate for community services employers in Queensland
Learn who must register, when returns are due, levy payment requirements, and how proper QLeave management protects your business from penalties while supporting your workers’ entitlements

Let’s be honest, QLeave probably isn’t keeping you awake at night. But if you’re running a community services organisation, construction business, or cleaning company in Queensland, it should definitely be on your radar. Words like “compliance nightmare” and “unexpected costs” come to mind for a lot of business owners when they first encounter QLeave requirements.

But what if understanding QLeave could actually save you money and headaches down the track?

In this article, we’ll break down exactly what QLeave is, who needs to worry about it, and how to stay on the right side of Queensland’s portable long service leave requirements without the stress.

So, let’s dive into making QLeave work for you instead of against you.

1. What Exactly Is QLeave? (And Why Should You Care?)

QLeave is Queensland’s portable long service leave scheme that operates across three key industries: community services (our main focus), building and construction, and contract cleaning. Think of it as a safety net that follows workers around their industry, regardless of how many different employers they work for.

Here’s the thing: these industries are often project-driven or funding-dependent. Your support workers might work for you for 18 months, then move to another organisation when funding changes. Under traditional long service leave rules, they’d never accumulate enough continuous service with one employer to qualify. QLeave fixes that problem by tracking their service across the entire industry.

For community services specifically, the scheme started on 1 January 2021, recognising that this industry experiences high rates of insecure employment and worker mobility due to work that’s reliant on project funding.

But here’s what matters to you as a business owner: QLeave comes with real obligations and real penalties if you get it wrong.

2. Who Needs to Register? It’s Broader Than You Think

Here’s where it gets practical. You need to pay attention to QLeave if you’re in:

Community Services

You must register if your organisation:

Is established to provide community services in Queensland
Engages workers to perform community services work
Provides labour-hire services supplying community services workers
Are self-employed and engage other workers for community services (registration required)

Types of community services covered include:

Aboriginal and Torres Strait Islander community services
Disability services
Family and community support services
Mental health services
Domestic violence support services
Youth services
Homelessness services

Important exclusions: Workers in standalone childcare centres, family day care, and nursing homes operated by standalone aged care providers are generally not covered.

Construction and Trades

Projects valued at $150,000 or more (excluding GST)
Employing eligible tradespersons, labourers, or trades assistants

Contract Cleaning

Engaging workers to perform cleaning work for other people

3. The Levy System: Different Rules for Different Industries

This is where each industry has different requirements:

Community Services Levy

Rate: 1.35% of workers’ ordinary wages
Payment: Quarterly (after submitting your return)
No project threshold – if you employ eligible workers, you’re liable

Construction Industry Levy

Applied to projects over $150,000
Usually paid by the client (person having work done)
Before permits are issued or work commences

Contract Cleaning Levy

Based on ordinary wages of cleaning workers
Quarterly payment system

The timing around payment is crucial too:

Community services: After quarterly BAS submission
Construction: Before development permits or work commencement
Contract cleaning: Quarterly following BAS submission

Miss these deadlines and you’ll be hit with compound interest that accrues daily. And that adds up fast.

4. Your Registration and Reporting Obligations

Community Services

If you employ eligible community services workers, you must register with QLeave. There’s no getting around this – it’s been a legislative requirement since 1 January 2021, with penalties for non-compliance.

Once you’re registered, you’ll need to:

Submit quarterly employer returns in January, April, July, and October
Report worker details and ordinary wages for each return period
Pay the 1.35% levy based on reported wages
Keep proper records for QLeave inspections (yes, they do random audits)

Construction and Contract Cleaning

Construction: Annual Worker Service Returns due July 31st
Contract cleaning: Quarterly returns similar to community services

The good news? If you’re already running payroll properly, most of this information should be at your fingertips.

5. The Hidden Opportunity: Workers Love QLeave

Here’s something most employers don’t realise: QLeave can actually help you attract and retain quality workers.

Good community services workers know their rights, and they know that working for QLeave-registered employers protects their long service leave entitlements. When you’re competing for skilled workers, being QLeave compliant is a competitive advantage.

Workers can accrue 6.1 weeks of long service leave after seven years of service across the industry.

6. Technology Makes QLeave Management Easier

The days of paper forms and manual tracking are over. QLeave’s online portals let you:

Register your business and workers digitally
Submit quarterly returns online (community services and contract cleaning)
Submit annual returns online (construction)
Update employee details in real-time
Pay levies electronically

If you’re already using payroll software like Xero or MYOB, most of the data you need for QLeave reporting is already being captured. It’s just a matter of knowing how to extract and submit it properly.

Your QLeave Action Plan

QLeave compliance doesn’t have to be overwhelming. Here’s your roadmap:

Immediate Actions:

Check if you’re required to register (do you employ community services, construction, or cleaning workers?)
Review your industry obligations (quarterly vs annual reporting)
Register with QLeave if you haven’t already

Ongoing Management:

Set up quarterly reminders (January, April, July, October for community services)
Calendar annual deadlines (July 31st for construction)
Include QLeave considerations in budgeting and cash flow planning

Strategic Considerations:

Use QLeave compliance as a selling point to quality workers
Factor levy costs into service pricing and budgets
Keep detailed payroll records to make reporting straightforward

Final Thoughts

QLeave isn’t just another compliance hurdle – it’s part of operating professionally in Queensland’s community services, construction, and cleaning industries. But you don’t have to navigate it alone.

The key is getting systems in place before you need them, not scrambling when QLeave comes knocking. Because when you’ve got the right advice and processes in your corner, QLeave becomes routine business management, not a crisis waiting to happen.

Ready to get your QLeave obligations sorted? Don’t wait until you’re facing penalties or missed deadlines. Get in touch today to ensure your business stays compliant and competitive across Queensland’s covered industries.

Advice Business Education Strategy Tax

EOFY Checklist: How to Set Your Business Up for a Strong New Financial Year

25/06/2025 Amanda Palmer

As 30 June rolls around, many Australian business owners grit their teeth, fire up their accounting software, and promise themselves they’ll “get on top of it earlier next year.” But it’s not just about wrapping up the year. A few smart moves today can lay the groundwork for a stronger, more efficient start to 2025–26.

Whether you’re reviewing your tax position or eyeing opportunities to expand, this EOFY checklist breaks down key areas to review. Let’s make EOFY feel less like a root canal and more like a business glow-up!

1. Level-Up Your Financial Systems and Processes

Still using clunky spreadsheets or chasing invoices manually? EOFY is a great excuse to upgrade your tech. Automating admin tasks can free up time, reduce errors, and streamline compliance. Not to mention, cumbersome bookkeeping can slow decisions and may invite scrutiny from the Australian Taxation Office (ATO).

Modern, cloud-based systems put live data at your fingertips so you can devise data-informed KPIs and business goals.

Action steps:

Audit your software stack. For example, is your practice management platform still compatible with your accounting software? Integration glitches can cause headaches such as duplicate data and missed invoices.
Automate routine bookkeeping. Bank feeds, invoice reminders and receipt capture apps save hours of admin every month.

2. Anticipate Regulatory Changes and Stay Tax Compliant

Tax rules can move with the times, so it’s important at the EOFY to double-check that you’re across any upcoming changes that could impact your obligations.

From revised thresholds and deductions to industry-specific updates, staying informed ensures you won’t get caught short at Business Activity Statement (BAS) or tax time. A proactive accountant (like me!) can guide you through the changes and how they apply to your business specifically.

Also, the ATO have released their 2025 focus list of taxation trip ups they’ll be zeroing in on. It’s worth your while to check you’re compliant and ticking all the boxes with these:

Separating personal and business expenses,
Correct goods and services tax (GST) lodgement,
Contractors omitting income,
Small-business capital gains tax (CGT) concessions misused, and
BAS lodgement backlogs.

3. Forecast Cash Flow

EOFY isn’t just about reporting what happened, it’s about planning what’s next. A solid cash flow forecast gives you a clear picture of when money’s coming in and going out, so you can plan ahead with confidence.

This is especially crucial if you’re dealing with funding cycles, staff rostering, or seasonal fluctuations. Cash flow clarity = fewer surprises, and more opportunities to grow sustainably.

Action steps:

Stress-test scenarios. For example, the award wage is set to lift by 3.5% on 1 July 2025. Do spending plans need adjustment to accommodate this?
Align funding cycles. Where possible, match supplier terms to the timing of plan-managed or self-managed payments you receive.
Ring-fence your BAS liabilities in a separate account so GST and PAYG never tempt your operating cash.

4. Build a Resilient Contingency and Risk Plan

What’s your backup plan if things go sideways? EOFY is a great time to assess your risk exposure and build out (or update) your contingency plans.

From supplier disruptions and weather damage, to staffing gaps or cyber security breaches, understanding your vulnerabilities (and having a plan B) could save you a whole lot of stress down the line.

Action steps:

Review your Information Security Management System (ISMS). Start with multi-factor authentication on all log-ins, encrypted backups, and a documented breach-response plan.
Update insurance cover. Make sure professional indemnity, cyber, and public liability reflects current business needs.
Establish a three-tier cash reserve.
- Emergency (0-30 days): Payroll and rent.
- Stability (31-90 days): Supplier payments, tax, super.
- Opportunity (90 days+): Funds to seize equipment bargains or expansions.
Test your disaster-recovery drill and back to business plans. For example, could your team access files from a temporary location or remotely?

5. Refresh Your Growth and Funding Strategy

Thinking about expanding your services, hiring more staff, or investing in new equipment? Let’s talk funding.

There are a range of options available, from government grants to business loans and private investment. EOFY is the ideal moment to explore what’s out there and get your finances in shape to take advantage of growth opportunities.

Unsure which funding option best suits your growth plans, or what you’re eligible for? We can help you identify the right solution tailored to your business needs and goals.

6. Revisit Exit and Succession Plans

Even if you’re not planning to exit your business any time soon, having an exit strategy in place gives you a clear roadmap for the future. Exit strategies aren’t just for retirees. Growth via merger, a sudden health issue, or an attractive acquisition offer can arrive unannounced.

Succession planning is a must if you want your business to thrive without you at the helm every day.

Are there team members ready to step up? Does your business structure support a smooth transition? Now’s the time to make sure everything’s in place.

Action steps:

Document key-person risk. Who can step in if a subject matter expert, team leader or your finance manager leaves?
Mentor a second-in-charge. Shadowing you through important tasks such as budget prep and reporting now ensures continuity later.
Create standard operating procedures (SOPs) for common tasks. SOPs make it easy to delegate tasks without losing accuracy.

7. Is Your Business Structure Still Fit for Purpose?

As your business evolves, your structure might need to as well. Are you set up as a sole trader, company or trust? Does your structure minimise tax, protect your assets, and support growth?

A business structure review at EOFY can uncover opportunities to optimise, and could even save you money.

Wrapping Up

EOFY doesn’t have to be a mad dash to get your books in order. With a bit of proactive planning and the right support, it’s a powerful moment to reflect, reset, and realign with your business goals. Using EOFY to position your business for a more efficient FY 2025-26 can make future you happier come tax time.

Need help making sense of your EOFY review? Let’s talk.

Advice

Getting a Home Loan When You Run a Business: A Broker’s Best Tips

29/05/2025 Amanda Palmer

Thinking about buying a home (or investment property) as a business owner? You’ve probably already heard it’s “a bit trickier” for you than for 9 to 5-ers. But trickier doesn’t mean impossible, especially when you’ve got the right info and the experts in your corner.

We caught up with Agnes Broadbent, finance broker at Loan Market, to uncover what self-employed borrowers need to know to secure mortgage approval. Spoiler alert: It’s totally doable with the right preparations, a good accountant, and a solid broker.

What makes it harder for business owners to get a mortgage?

According to Agnes, the biggest hurdle is unpredictability. “Business owners often face challenges such as irregular income, complex financial structures, and limited documentation. Lenders may perceive self-employed applicants as higher risk due to income variability or non-traditional pay structures.”

Translation? While your business might be booming, lenders want lots of documented proof that you’re likely to meet repayments. Working with an accountant can help you get your documentation into shape.

How exactly do lenders assess a business owner’s income?

Unlike salaried workers with more predictable incomes, business owners need to show a longer track record. “Lenders typically assess business income over a two-year period,” Agnes says. “They’ll review tax returns, business financials, and profit/loss statements, looking for consistency and growth in business earnings.”

Lenders want to see that you’re not only making money, but doing so reliably.

Okay, so what kind of paperwork are we talking about?

Agnes says the must-haves include:

Personal and business tax returns (last 2 years).
Business Activity Statements (BAS).
Profit & loss statements.
Business bank statements.
A letter from your accountant.

Having these ready before you start can make the process smoother. It shows the lender you’re serious and gives them what they typically need to make an assessment.

Can I use my business assets to boost my application?

Yes, but with a caveat. “Business owners can use eligible business assets as collateral, provided they meet the lender’s criteria,” Agnes explains. “Lenders are primarily focused on reducing risk, so if the asset is acceptable, it can strengthen the application by offering additional security.”

But going down this avenue can make things more complex, so be prepared for extra hoops to jump. Agnes states “The lender may require detailed valuations and additional documentation, which can extend approval timeframes.”

A broker can help you figure out if it’s worth the effort for your individual financial situation.

Are there mortgage products made for people like me?

Absolutely! The Australian Bureau of Statistics estimates that there are approximately 2.6 million business owners in Australia, and some of these people are going to be in the market for a mortgage at some stage.

“There are low doc, alt doc, or mid doc loans specifically for self-employed applicants,” says Agnes. Lenders know you don’t have regular PAYG payslips at your disposal to show your income. So these particular loans will request other income verification documents such as your BAS, or a declaration from your accountant.

It’s all about matching the right loan to your situation. That’s where having a good broker can really make a difference.

What if my income isn’t the same every month?

Unlike receiving regular payslips from an employer, most business owners experience peaks and troughs, and lenders understand this. Agnes says “Revenue ups and downs can make it harder for lenders to determine serviceability. Lenders often average income over two years or use the lower year to be conservative.” Not ideal, we know.

But don’t panic, a broker will take the time to understand how your business operates, where the income comes from and track the money trail. “Once we understand that, we present the information in a way that shows the lender a clear picture of the client’s financial strength and good conduct, despite the ups and downs in income throughout the year,” she says.

Also, a broker can clue you in on tips to improve your chances of loan approval… which brings us to our next point.

What can I do to improve my loan approval chances?

Agnes’s top tips include:

Keep your financials up to date.
Avoid late payments (even small ones can affect your credit score).
Separate your business and personal finances.
Work with a good accountant (we know of one – hint hint).
Get a broker involved early to guide you through the process and match you with the right lender.

Basically, the clearer your good financial picture is, the better your chances of success.

Does my personal credit score matter if I’m applying as a business?

It depends. Credit scores are important when applying for a loan. It reflects your financial history and how reliable you are at making payments. Agnes reports that if the loan is in your personal name, your personal credit score is crucial. But if it’s a business loan, lenders will usually look at your business credit score.

Agnes explains, “A strong credit score can improve your chances of approval and help secure a better interest rate. While you may still qualify with a poor credit score, the interest rate will likely be much higher.”

Why use a broker instead of just going to my bank?

To put it simply, a broker works for you, not the bank. They’ll work on finding a solution tailored to your specific needs.

Agnes advises “As a broker, I’m legally required to act in your best interest. Whether you’re a business owner or an employee, it’s a huge advantage to have someone working hard to help you reach your financial goals. I have access to a panel of over 60 lenders, which allows me to find the most suitable loan for your specific situation.”

But she doesn’t disappear after approval. “I’ll be with you for the life of the loan, reviewing your interest rate at least once a year to make sure your lender continues to offer you a competitive deal,” she says.

And the best part? Agnes states “Our service is free for you. We’re paid by the lender once your loan is settled, and you won’t pay extra for going through a broker instead of dealing directly with the bank.”

Final thoughts?

If you’re self-employed and thinking of buying property, you’re definitely not out of luck. With the right preparation and the right support, you can absolutely get approved.

Just don’t wait until the last minute. Chat to a broker and your accountant early in your journey to help you get your ducks in a row and find a loan that works for you.

Need help getting mortgage ready as a business owner?

Get in touch with Loan Market Agnes Broadbent to help find the right mortgage for you. And chat with us at ASAP solutions for expert guidance on getting your finances sorted for your big purchase.

Advice Business Strategy Tax

From Scramble to Strategy: EOFY Planning To Help Your Business Thrive

25/04/2025 Amanda Palmer

Let’s be honest, the EOFY (End of Financial Year) has a bit of a reputation. Words like stressful and scrambled come to mind for a lot of business owners. But what if EOFY could actually work in your favour?

In this article we’ll show you how to adopt strategic tax planning to do more than just keep the Australian Taxation Office (ATO) happy. It can lay the groundwork for smoother operations, smarter financial decisions, and serious business growth.

So, let’s dive into how to make EOFY work for you.

1. EOFY Is Not Just About the Past, It’s About the Future Too

Sure, we need to tidy up the past 12 months, but EOFY should also be a checkpoint to ask: How do I want the next year to look?

Use this time to not just tick compliance boxes, but to make strategic forward-thinking decisions to shape your tax position for the entire upcoming year.

For example, activities such as these can drastically shift your tax planning from reactive to proactive:

Reviewing your business structure,
Evaluating income strategies,
Mapping business growth plans, and
Forecasting expenses.

2. Planning a Big Purchase? Timing Is Everything

Should you buy that new piece of equipment now or wait until July?

EOFY is the time to get strategic about the timing of major investments. Bringing forward big ticket deductible expenses (like fit-outs, vehicles, or tech upgrades) before June 30 can reduce your taxable income. On the flip side, deferring income or expenses into the new financial year might be the smarter play, especially if your business is expecting a lower income year ahead or wants to maximise cash flow.

It’s not a one-size-fits-all, so this is where tailored advice matters. For example, what works for your mate’s brand new biz might not work for your established practice. But an experienced accountant (hey, that’s me!) can help you out.

3. Keep Up To Date With Tax Changes

Keeping abreast of changes to tax laws and concessions can help you plan ahead, stay compliant and budget appropriately. Here’s a heads up for some tax law changes expected from 1 July 2025:

Instant asset write-off thresholds will change, so don’t assume what worked last year still applies. The latest 2025-26 Federal Budget did not include a renewal of the instant asset write-off measure. That means you’ll only be able to write-off up to $1,000 of next financial year’s expenses, unlike the $20,000 limit last year.
Superannuation guarantee (SG) rate will increase to 12%. This impacts your payroll planning.

Coming up with a plan now gives you a buffer, rather than a surprise bill. Confused about what changes are coming up? We can clue you in on what will affect your business.

4. Let’s Talk Records Management: The Boring Bit That Can Make EOFY A Breeze

If EOFY feels stressful, it’s probably because your record-keeping system needs a glow up.

Here’s the truth: better records = better decisions = better outcomes. Setting up a solid record keeping foundation now means:

You can make real-time decisions instead of playing catch-up.
You’ll have less stress come June 30.
You’ll spot opportunities and risks way earlier.

You’ll also earn undying appreciation from your accountant. Because accurate record keeping makes it easier for your accountant to help you to make the most of deductions, and put strategies in place specifically tailored to your business.

One of the best ways to make record keeping easier is by investing in accounting software like Xero or MYOB. You’ll get access to helpful features like automation for streamlined processes, reporting and payroll management features to help you plan ahead and stay compliant.

5. Create an EOFY Action Plan (That Isn’t Just a Checklist)

EOFY shouldn’t be a tick-and-flick affair. It’s an opportunity to build an action plan that combines immediate compliance tasks (lodging, reconciling, reviewing payroll) with big-picture planning. Let’s look at an example:

Case Study: Strategic EOFY Planning in Action

Last EOFY, a medium-sized NDIS provider with 30 staff across two clinics didn’t just send us their numbers. They booked a strategy session well before the June rush. Here’s what happened:

Structure review: We restructured their business from a sole director model into a trust arrangement with a corporate trustee. This gave them better asset protection and flexibility for income distribution.
Strategic purchases: They brought forward the purchase of high-value therapy equipment (claimable under the instant asset write-off) and deferred a non-essential office refit until the next year, resulting in a healthier tax position.
Payroll adjustments: We preemptively adjusted wages and SG payments in line with a rate change to avoid last-minute chaos.
Forecasting: With their business growth plans worked out, we built a 12-month cash flow plan that allowed for scalable expansion of clinics without blowing the budget.

The result? A lower tax bill, ATO compliance, and a stronger foundation for growth.

Final Thoughts

EOFY isn’t just a compliance deadline, it’s an opportunity to be intentional. But you don’t have to do it alone. Because when you’ve got the right accountant in your corner EOFY becomes a tool, not a trauma.

So, let’s make this EOFY your most strategic one yet! Get in touch today to book a planning session.

Business Strategy Tax

Tax-Time Myths Busted: What Business Owners Need to Know

30/03/2025 Amanda Palmer

Tax… It can strike fear in the hearts of many business owners. And it doesn’t help that tax time generates more myths than an ancient Grecian odyssey.

As the owner of a growing business, you’ve got enough on your plate without worrying about incorrect tax advice. Not to mention having to ensure you’ve got reliable systems, efficient processes, and expert support to make informed decisions with confidence. As your operations scale, you need to be able to trust that your numbers are accurate, up-to-date, and your business is compliant to avoid nasty surprises.

Not to brag, but we’re business tax professionals, so you’re in the right place! Let’s bust some of the most common tax-time myths, set the record straight, and make tax time a breeze as your business expands.

Myth #1: “I Only Need to Think About Tax at the End of the Financial Year”

Ah, the classic “see-you-next-June” approach. But a good tax system doesn’t just tick off compliance, it’s about strategy. If you’re only looking at your tax situation once a year, you could be doing your business (and your bank account) a disservice.

The tax landscape is constantly evolving. Government incentives, tax rate adjustments, and sector-specific regulations can impact your position. Staying informed (or working with an accountant who is) means you can take advantage of opportunities you may be completely unaware of, such as:

Instant Asset Write-Offs: Depending on the latest government updates, you may be able to write off assets immediately rather than depreciating them over years.
Superannuation Contributions: Strategic contributions before June 30 may be used for tax deductions and help future-proof your finances.

Regular check-ins with your accountant can help you take advantage of incentives sooner, structure your finances efficiently, and quickly troubleshoot issues.

Scaling up? Your Strategies Should Too

Also, as your business expands, engaging regularly with an accountant can ensure continued compliance, minimised tax liability, and support sustainable growth.

A growing business has a whole host of new things to consider that a qualified accountant can help you with, such as:

Structuring for growth: Changing your business structure to accommodate growth, which can affect your tax, registration and legal requirements.
Hiring staff: Covering all the compliancies that this entails, such as pay as you go (PAYG) withholding, payday super compliance, and worker classifications, to name a few.
Managing tax liabilities: As revenue increases, so does your tax liability. Planning quarterly PAYG instalments can mitigate large tax bills.
Registering for GST: Doing so at the right time can unlock strategic benefits and avoid penalties… but more on that next.

Myth #2: “Only Big Businesses Need to Register for GST”

The truth is, goods and services tax (GST) applies to more businesses than you think! Many small and medium business owners assume registering for GST is only for the big players. But if your business turns over $75,000 or more annually, you’ve met the GST threshold and are legally required to register.

Even if you’re not quite at the $75,000 mark, registering for GST early could be a strategic move. It allows you to claim GST credits on your business purchases and make your business look more established to clients and suppliers.

Plus, avoiding a last-minute scramble to register once you hit the threshold saves you from unnecessary stress. While you can register within 21 days of exceeding the GST threshold, failing to register on time can incur penalties and interest.

Myth #3: “Every Expense is Tax-Deductible!”

Wouldn’t that be nice? While plenty of business expenses are deductible, not everything qualifies. A coffee machine for the office may be deductible. Your daily latte habit from the local cafe? Sadly, not so much.

The Australian Taxation Office (ATO) keeps an eye on deductions, and claiming personal expenses as business ones can land you in hot water. A good accountant will help you navigate this to ensure you maximise your deductions without overstepping the bounds of what’s acceptable.

Myth #4: “I Don’t Need to Worry About Record-Keeping — I Have an Accountant for That”

Your accountant might be a total numbers wizard and tax virtuoso… But without accurate and up-to-date data? Well, there’s only so much they can do.

While a shoebox full of crumpled, faded receipts or an end-of-year data dump is better than nothing, it isn’t ideal. Accurate and consistent bookkeeping helps your accountant help you claim the right deductions, manage your cash flow, and avoid penalties.

If you haven’t already, you may want to think about investing in reliable accounting software as your business scales. It can make keeping on top of the books easier and allow for more efficiency. And should you ever be hand-picked for an ATO audit, you’ll have an easier time with rock-solid records at your fingertips.

Be sure to keep your receipts for business expenses. Or even better, upload them into accounting software too. While the ATO allows for a total claim of work expenses up to $300 with no receipts, you’ll still be expected to show how you calculated the claim amount and how the money was spent. It’s best practice to keep receipts where you can and it makes the claims process easier. Not to mention the potential to claim more if you’ve spent over $300 in business expenses!

The Bottom Line

Tax doesn’t have to be painful. Proactive planning, the right strategies, and ongoing support can ensure your business is in the best possible position and forego the headache that tax time can bring on.

A solid foundation can help set your business up for long-term success. As your business grows your financial systems need to scale with you. Having regular financial reviews, accurate data on hand, and a knowledgeable accountant gives you the confidence to make sound decisions for the future.

So, don’t wait until June. Get in touch today!

Advice Business Strategy

End-of-Quarter Checklist: Stay Compliant and Cash-Flow Ready

25/02/2025 Amanda Palmer

Keeping on top of quarterly reporting and financials helps keep the ATO from knocking and gives you the clarity to plan your next business move with confidence.

That’s why we’ve put together an end-of-quarter checklist to help set you up for a smooth ride into the next quarter without the jargon, headaches, or existential crises!

1. Reconcile Your Accounts – Regularly!

Think of account reconciliation as tidying up your business finances before the new quarter kicks off.

This means:

Matching transactions in your accounting software to your bank statements;
Checking for any missing invoices or payments; and
Identifying and addressing any discrepancies.

A clean set of books provides fewer surprises when tax time rolls around. Plus, it keeps your cash flow healthy, because nothing ruins a good quarter like missing money!

Doing this regularly – either weekly or daily depending on the number of transactions going through your business, is a good habit to get into to make sure your bookkeeping doesn’t become overwhelming.

2. Review Your BAS

If your business is registered for goods and services tax (GST), end of the quarter probably means that it’s BAS time. For most businesses, your Business Activity Statement is due every quarter, and lodging it late can incur penalties to the tune of hundreds of dollars for each month you’re late.

Make sure to include:

All invoices and expenses;
Details of GST payments and collections;
Payroll and superannuation obligations;
PAYG withholding; and
Any other applicable taxes.

Not sure if your BAS is in good shape? That’s where having an accountant (like me!) on your side comes in handy.

3. Chase Up Overdue Invoices

Outstanding invoices can squash your cash flow. And you deserve to get paid for all your hard work.

Now’s the perfect time to:

Follow up with clients who still haven’t paid (send those polite but firm reminders);
Review your payment terms to see if they need tightening up; and
Consider automation and helpful tools to streamline invoicing and reminders.

Pro tip: Consistently following up on invoices every month helps prevent a last-minute, end-of-quarter scramble.

4. Check Your Superannuation and Payroll Compliance

If you’ve got employees, keeping up with payroll and super isn’t optional, it’s essential. Ensure that:

All super contributions for the quarter have been paid;
PAYG withholding is accurate and reported correctly; and
Employee entitlements (leave, overtime, allowances) are up to date.

If you draw a salary from the business, don’t forget to pay yourself super. Not doing so will cheat you out of that sweet compound interest for your retirement.

5. Assess Your Cash Flow, Budget and Performance

Healthy cash flow keeps your business thriving. Take some time to:

Compare actual earnings vs. projected revenue;
Assess if you’re setting aside enough for your tax obligations;
Identify any upcoming expenses; and
Adjust your budget and financial goals for the next quarter.

If your cash flow looks tighter than expected, now is the time to take proactive steps, whether that’s revising expenses, pricing, or streamlining invoicing.

Numbers don’t lie, and reviewing your business performance each quarter helps you make informed decisions. Ask yourself:

Did we hit our revenue and profit targets?
What worked well, and what needs improvement?
Are we on track with our strategic goals?

And most importantly, take a moment to celebrate your wins. Running a business isn’t easy, so acknowledge the progress you’ve made.

6. Plan for Future Growth

Quarterly reviews aren’t just about compliance, they’re also a great opportunity to strategise for growth. Consider:

Whether you should invest in new resources, staff, or technology to accommodate growth; and
Any government grants or incentives you could take advantage of to help your expanding business.

If your business is growing (or struggling), don’t wait until the end of the financial year to chat with your accountant. Ongoing support can make all the difference, and doing a quarterly review of your accounts means that we can be proactive and strategic about any concerns as they come up.

Wrap Up

Running a business can be a lot. You have to juggle the work at hand and the administrative tasks to keep compliant and thriving.

However, having a system in place to keep on top of your quarterly financial admin can avoid headaches in the future.

As always, we’re here to provide hands-on support tailored to your business to take the stress out of your finances. Get in touch today!

Advice Business

Payday Superannuation Reforms: What Employers Need to Know

25/01/2025 Amanda Palmer

Upcoming super payment reforms will change the way payday operates for your business. But having all the info at hand can have you ready to (pay)roll by 1 July 2026.

What to Expect from Payday Super

The Australian Government is making some significant changes to the way employers pay superannuation. From 1 July 2026, employers will need to pay super guarantee (SG) contributions at the same time as wages.

Dubbed “payday super,” this change is being implemented to help Aussies retire with more, by quickly getting those funds into their super fund.

Payday super changes mean that employers will pay super contributions with employees’ ordinary time earnings (OTE), eliminating the traditional quarterly payment cycle.

Here are the key details at a glance:

New due date: Employers must make SG contributions within 7 days of payday.
Penalties for delays: Failing to meet this deadline will result in an updated Super Guarantee Charge (SGC) being applied.
Reporting changes: Through Single Touch Payroll (STP), employers must report both OTE and total super liability.

Penalties for Missing Deadlines

Penalties for missing super contribution deadlines are set to be tougher than before. The updated SGC is designed to encourage compliance while compensating employees for late payments.

Here’s a breakdown of what the SGC includes:

Outstanding SG shortfall: This covers any unpaid super contributions, calculated based on OTE.
Notional earnings: An interest component ensures employees aren’t financially disadvantaged by delayed payments.
Administrative uplift: An extra fee to cover the cost of enforcement.

Additional penalties can apply, once SGC is assessed:

A General Interest Charge continues to accrue daily on outstanding SGC shortfall and notional earnings, at the ‘general interest rate’.
A SGC payment penalty totalling up to 50% of the unpaid SGC amount can apply if employees don’t pay within 28 days.

The silver lining? SGC payments will now be tax-deductible, except for interest and penalties accrued after the SGC assessment.

But avoiding having to pay fees and penalties in the first place is the better option. That’s why it’s a good idea to be prepared before the changes kick in.

How to Prepare for Payday Super

Payday super marks a significant shift in the way superannuation is managed and will most likely require changes to your employee payment process. By preparing now, you can create a smooth transition for the 1 July 2026 deadline.

1. Update Payroll Systems:

Ensure your payroll software can handle the increased frequency of super payments. Many modern solutions integrate seamlessly with STP.

2. Transition from the Small Business Clearing House:

For small businesses relying on the Small Business Superannuation Clearing House (SBSCH), note that it will be decommissioned from 1 July 2026. So it’s a good idea to start exploring commercial alternatives that fit your needs.

3. Understand SuperStream Changes:

The deadline for super funds to allocate or return contributions will shrink from 20 business days to 3 business days, streamlining the process for all parties.

4. Train Your Team:

Make sure you and your payroll team understand the new requirements, including reporting changes under STP and the 7-day payment window.

5. Stay Informed:

More information and reminders around payday super legislation will most likely be released by the Australian Government leading up to July 2026. Keep an eye out to stay ahead of any changes. For more information, check out the Treasury Fact Sheet.

Need a hand navigating payday super? Get in touch with Amanda.

tax planning on a desk with a notebook, calculator and cup of coffee

Advice Business Strategy Tax

Your 2025 Tax Strategy: Planning Ahead for Smarter Decisions

16/12/2024 Amanda Palmer

Let’s start with the urgent bit – if you haven’t lodged your tax return yet, pop it to the top of your to-do list. Nobody enjoys those late lodgement penalties!

Once that is off your plate, let’s talk Tax Planning.

Why Talk About Tax Planning now?

By March or April, we’ll have nine months of data for the current financial year – and that’s where things get interesting. This substantial chunk of financial information gives us a brilliant opportunity to make smart decisions about your tax position before the year ends. So let’s clean up any loose ends, get your books in order and understand what your business goals are for this year. Are you looking to buy some equipment or make other investments in your business?

Planning vs Avoidance

Tax planning isn’t about finding clever loopholes or aggressive schemes – those approaches often fall into tax avoidance territory, which can result in substantial penalties and a world of trouble with the ATO.

True tax planning is about making informed, strategic decisions about your business while working within the tax system. When we understand your expected tax position and align it with your business goals, we can look at legitimate ways to manage your tax obligations. For instance, this might involve timing of expenses, structuring business decisions efficiently, or taking advantage of available deductions and concessions that you’re entitled to.

Think of tax planning as part of your broader business strategy. Just as you plan for growth, cash flow, and staffing, your tax position needs the same strategic attention. By looking at your business plans alongside your projected tax position, we can work together to make decisions that benefit your business while ensuring you meet your tax obligations appropriately.

Why Nine Months of Data Makes a Difference

Having three-quarters of your yearly figures gives us solid ground to stand on. We can:

Project your likely income for the full year with real confidence
Spot any concerning trends before they become problems
Calculate your potential tax liability with reasonable accuracy
Put in place legitimate strategies to optimise your position

With nine months of data under our belt, we can look at several opportunities:

Review Your Business Structure

Is your current setup still the best fit? Whether you’re operating as a sole trader, partnership, or company, it’s worth reviewing if your structure aligns with your current situation and future plans. This also gives us time to make any changes you may require before the end of the financial year.

Timing is Everything

Understanding your position helps you make savvy decisions about:

When to make major purchases
The best time to raise invoices
Maximising your super contributions
Investing in new equipment or technology

Making the Most of Available Deductions

Now’s the perfect time to ensure you’re taking advantage of every legitimate deduction. This might include:

Immediate asset write-offs for eligible purchases
Research and development incentives
Work-related expense claims
Investment property deductions

Taking Action: Your Next Steps

The next few months will go quickly, but if you do the work now, by March/April we can:

Take a thorough look at your current position
Create reliable projections for the year-end
Identify potential areas for tax-effective decisions
Put strategies in place while there’s still time to make a difference

Book a Planning Session

Every business is unique, and what works brilliantly for one might not suit another. That’s why it’s worth booking a proper tax planning meeting. We can sit down together, look at your specific situation, and develop strategies that work for your business.

Good tax planning isn’t about finding loopholes – it’s about making informed decisions based on real data to ensure you’re in the best possible position come tax time. By starting now, we can ensure everything is in place to use the nine months of data effectively when the time comes, and make any necessary adjustments before the end of the financial year.

This article provides general guidance only. For advice specific to your situation, please get in touch to arrange a consultation.

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