Superannuation Guarantee Contribution is NOW 12%

Effective 1 July 2025, the final increment in a series of planned increases to the superannuation guarantee contribution (SGC), to be made by the Australian government, requires that employers contribute 12% of an employee’s ordinary time earnings to an employee’s superannuation fund.

The increase is 0.5% on last financial year’s SGC rate of 11.5% and is aimed at enhancing retirement savings of Australia’s workforce. This increase applies to all payments made on or after this date, regardless of when the work was performed.

Setting aside additional remuneration funds will be necessary from now to meet new payment obligations. Using Single Touch Payroll (STP) software connected to the ATO will ensure that your business generates timely and accurate reports for the ATO.

Navigating the SGC Rate Change for Employers

To navigate these changes and maintain compliance, YML Business Services offers their virtual bookkeeping services. We offer remote management of your business’s financial records using cloud-based accounting software. We provide a high qualified, specially trained bookkeeper – experts in Australian superannuation and taxation law – to partner with your business to help you manage both STP and your SGC obligations.

By leveraging YML’s bookkeeping services, you can reduce your administrative overhead, provide precisely calculated and punctually paid employer superannuation contributions, thereby allowing you to focus more on strategic growth initiatives for your business.

Updating your payroll system to remain compliant is essential to your ability to adhere to SGC reporting and payment requirements.

If you are late paying your SGC amount, then notify the ATO of any late SGC payments via the ATO’s process of lodging a Superannuation Guarantee Charge Statement within 28 days of the quarterly due date and pay the Superannuation Guarantee Charge which is made up of

• SG shortfall amounts, plus
• Interest on SG shortfall amounts, plus
• Administration fee per employee per quarter

Next Steps

The SGC change will affect businesses differently, dependent upon the nature of the workforce within an organisation, so reach out to YML Business Services TODAY.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your SGC obligations, For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

A simple insurance solution for busy business owners

You've got a business to run, and that comes with a long to-do list. Business insurance shouldn’t be another time-consuming chore. The right policy should give you peace of mind, not more headaches.

If you're ready to skip the hassle and find cover that is easy, reliable and tailored to fit your business, this one's for you.

Why do you need business insurance?

Every business deal with risks, whether it's client injuries on your office premises, mistakes in your professional advice, or cyber-attacks just to name a few. Business insurance is designed to protect your business from the financial aftermath, including cover for expenses and legal costs related to such unexpected events.

Without business insurance, one incident could set your business back months, or more. With it, you can help protect your finances, your reputation, and the trust you’ve worked hard to build with your clients.

Here are some of the most common types of business insurance:

• Public Liability insurance covers third-party injury or property damage claims that happen as a result of your business activities.
• Professional Indemnity insurance covers claims made against you for mistakes, errors, negligence or omissions in the services or advice you provide.
• Management Liability insurance helps protect business owners and directors from risks that come from running a business, like employment disputes, regulatory fines or harassment claims.
• Cyber Liability insurance covers costs related to cybercrime incidents such as data breaches, ransomware attacks, and other cyber threats.

The problem is how business insurance is traditionally purchased

Business insurance has a reputation for being complicated. You're filling out endless forms, trying to make sense of confusing policies, and chasing quote comparisons that never arrive on time. It’s slow, frustrating, and frankly, outdated.

For time-poor business owners, this can lead to two outcomes: Either sticking with a policy that may be no longer right, or giving up altogether. But neither options will protect your business if something goes wrong.

That's where BizCover comes in

The YML Group has partnered with BizCover, Austalia's leading online insurance provider, to bring our clients easy, affordable insurance options from leading Australian insurers like QBE, Vero, Dual and Chubb.

Instead of spending hours calling different providers or filling out forms, you can jump online, compare multiple quotes for multiple products instantly and secure your cover without any paperwork necessary. It’s fast, easy, and designed for business owners who don’t have time to waste.

Protect your business with confidence

Insurance shouldn’t feel like a chore. With BizCover, you can quote, compare and buy the right policies for your business all in one place. No forms, no phone calls, no fuss. They even offer automatic renewals, so you are worry-free when it comes to insurance. Ready to protect your business properly? Head to BizCover and sort it all out in just a few clicks.

This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.

© 2025 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769

How can YML help?

Talk to our trusted advisors today to see how YML Group can assist you with your insurance needs through BizCover, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

ATO gets tough on BAS Non-compliance – Is your business at risk?

In 2025 the Australian Taxation Office (ATO) is taking a tougher stance on non-compliant businesses that find it hard to stay on track with their Business Activity Statement (BAS) reporting. Since 1 April 2025 the ATO has mandated that thousands of slack businesses be transitioned to monthly, instead of quarterly, BAS lodgments.

Referring to the ATO’s ‘Getting it Right’ campaign, ATO Deputy Commissioner Will Day has said: ‘If you’re a small business who continues to deliberately disregard your obligations, you can expect the ATO to move you to more frequent GST reporting’.

If you find your business is repeatedly late lodging its quarterly BAS, you are at risk of being moved by the ATO to monthly BAS reporting. Moving from quarterly lodgment means more frequent – reporting and payment – of GST, PAYG withholding and other taxes, making it a bigger compliance burden for your business.

YML’s own virtual accounting service, a team of dedicated, Australian-trained professionals who partner with you, offers help that’s essential to ensuring you meet your ATO obligations. YML’s virtual accounting service can make a transition to monthly reporting smooth and stress-free OR help you to stay on track with quarterly reporting and avoid costly mistakes.

ATO’s ‘Getting it Right’ Campaign

Small businesses that consistently pay GST late or not in full, that fail to lodge their BAS timely and error-free will be notified by the ATO about changing from quarterly to monthly BAS reporting. The ATO aims to support small businesses by providing a more structured approach to addressing unmet taxation obligations through smaller, more manageable payments which might be easter to manage than larger, quarterly amounts.

However, this transition will lead to an increased administrative workload, which requires:

•  greater cash flow planning,
•  improved budget management and maintenance,
•  more frequent bookkeeping and reporting,

making choosing YML’s bookkeeping service an essential tool in your business’s financial armoury. To avoid your business slipping out of line, contact YML Business Services NOW.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your BAS reporting. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

YML Finance can help you borrow to pay your ATO Debt

If you have an ATO debt, YML Finance can help you with a loan to pay off this debt.

You are most likely paying around 11% per annum on your ATO debt. Let us help you with a much cheaper loan with lower monthly repayments as it will be over a longer term.

Learn more about how we can help you by calling us on (02) 8383 4466 and requesting a callback or making an appointment with the YML Finance Team.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with a loan. For more for more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

Why use your Family Trust to invest in Property?

A family trust is a financial structure and for taxation purposes is its own entity. A family trust is specifically suited to tax flexibility – distribution of profits to lower-income earning beneficiaries (adult children and or spouse); long-term investment with capital gains taxation (CGT) advantages; and asset protection, making it a favourable vehicle to consider for property investment.

Family trusts are usually discretionary, meaning the trustee (typically, a parent) may choose how a trust’s income and assets are distributed among beneficiaries (typically, children of the trustee). A family trust may borrow money to purchase property to be held in the ‘name of the trust’ on behalf of the family group.

Advantages of an Australian Resident Family Trust for Property Investment

Asset Protection

Assets are legally owned by the trustee of a family trust, rather than by individual beneficiaries, and are therefore not considered part of personal estates.

If a beneficiary is sued, is liable to creditors or becomes bankrupt, assets held in a family trust are generally protected from litigation, creditors and or bankruptcy.

Taxation Optimisation (CGT)

A family trust’s distribution or ‘streaming’ of capital gains (profit) can reduce a family’s overall taxation obligations. To properly ‘stream’ income, a trust deed containing a trustee resolution – a record of a trustee’s distribution directives – is required.

If a property is held in a family trust for more than 12 months before being sold, the family trust may qualify for a 50% CGT discount. Capital gains (profit) from a property sale must be ‘streamed’ to individual beneficiaries for the 50% CGT discount to be applied.

A 50% CGT discount is not applicable after the sale of a property held by a company, hence the advantage of purchasing a property in a family trust.

Disadvantages of an Australian Resident Family Trust for Property Investment

No CGT Discount on Main Residence

A main residence property held in a family trust will be fully taxable, even if the trustee and or beneficiaries live in the property. There is no 50% CGT discount applicable when a main residence held in a family trust is sold. Thus, a family trust best serves its family group by being used for purchasing investment property.

No Land Tax Threshold

In NSW, family (discretionary) trusts are taxed at the highest land tax rate – they do not attract the tax-free threshold, unlike individual owners of property.

Foreign Beneficiaries attract NSW Land Tax Surcharge

If foreign beneficiaries are included in a NSW family trust, a 2% land tax surcharge on top of normal land tax rates might be applied to any property held in a family trust.

To avoid the 2% land tax surcharge, it is necessary to exclude foreign persons explicitly and irrevocably from the trust deed. It might be necessary to amend a trust deed before a property is acquired.

Revenue NSW requires specific wording about family trust beneficiaries in a trust deed. It is essential that the wording is clear about beneficiaries being either Australian citizens or foreign persons to avoid any misunderstanding by Revenue NSW, and to ensure that a family trust’s property does not attract the 2% land tax surcharge.

Setting up your Family Trust with YML Chartered Accountants

It is imperative that a family trust is set up correctly in NSW to satisfy Revenue NSW. YML Chartered Accountants, in collaboration with YML Legal, can advise you on the appropriate and relevant wording for the trust deed and ensure that it contains Revenue NSW-compliant wording.

A common Revenue NSW-specific mistake that you want to avoid is putting the wrong name on a property sale contract. The correct format for the name written on a property sale contact is “Trustee Name ATF Family Trust”, NOT your personal name.

YML Chartered Accountants, in collaboration with YML Legal, can advise you on amending your family trust deed and can review it to make certain of its compliance with Revenue NSW and the Australian Taxation Office.

BEFORE purchasing a property, it is most important that you contact YML so that we can advise you accordingly.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you with your family trust. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Intentionally underpaying Employees is now a criminal Offence

A NEW criminal offence for intentionally underpaying employees in Australia was a change, commencing 1 January 2025, made to the Fair Work Legislation Amendment (Closing Loopholes) Act 2023. Employers found guilty could face substantial fines or even a custodial sentence.

Honest mistakes, assessed by the Australian Taxation Office (ATO), may be deemed exempt. Employers will ideally act in good faith to ensure payroll errors, if any, are accidental, are corrected quickly and are well-documented to show no intent to underpay.

YML Business Services offers a team of dedicated and trained professionals who, using cloud-based technology to work seamlessly, partner with employers to help businesses streamline and manage their day-to-day accounting activities, including payroll.

For many small to medium Australian businesses (SMEs) accessing highly skilled accounting professionals is made easy by adopting virtual bookkeeping services to monitor their business’s financial health.

Using your company’s established internal resources alongside external specialists – namely outsourcing and co-sourcing – to manage your payroll functions and mitigate the risk of underpaying your employees could be a wise decision for your business considering the recent change to the Fair Work Australia legislation.

YML Business Services can provide expert, specialised know-how to assist you with:

• Using reliable and compliant payroll software systems – Single Touch Payroll (STP)
• Reviewing employees’ work arrangement classifications – casual, part-time, full-time
• Keeping accurate payroll records
• Paying superannuation correctly and timely
• Guidance on paying employees correctly
• Guidance on workplace laws and entitlements
• Keeping up with Fair Work Australia updates

How can you be a first-rate employer?

By adopting virtual bookkeeping services through YML Business Services, you can gain and maintain better control of your payroll and other financial operations, as well as ensure your business is abiding by the latest Fair Work Australia legislative changes.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your payroll obligations. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

How to boost your spouse’s balance and make the most of contribution caps

Why boost your spouse’s balance?

1. Maximising the opportunity to contribute to super

The option to carry forward unused concessional contributions is restricted to those with a total super balance below $500,000 on 30 June of the prior financial year. If one spouse’s balance is coming close to the threshold and they are at risk of losing this opportunity, contribution splitting can be used to transfer funds out of their super balance.

Also, individuals with a total super balance above the general transfer balance cap (currently $1.9 million) cannot add further non-concessional contributions to super. Spouse contribution splitting and/or withdrawals after retirement can reduce the balance of a partner that would otherwise exceed this limit, so they can retain the option to make non-concessional contributions.

2. Equalising balances

At retirement, the transfer balance cap places a per-person limit on the amount that can be transferred into the tax-free retirement phase. Equalising balances can maximise the total a couple can transfer if only one of them would otherwise have a balance above the cap (currently $1.9 million).

Example – maximising tax-free super

Terry and Gillian are currently aged 50, and planning retirement at 60. Terry’s balance is much lower than Gillian’s because he took some time out of the workforce recovering from a serious injury and now works part time earning a lower wage.

Based on projections if they take no action, Gillian’s expected balance at retirement is $2.5 million and Terry’s is $900,000 (in today’s dollars).

Their financial planner recommends they employ a range of strategies to reduce the gap in their balances. If they put these in place, their expected retirement balances are $1.8 million for Gillian and $1.6 million for Terry.

This will ensure that both partners can transfer their whole balances into the retirement phase at age 60 and enjoy tax-free investment earnings.

Without action, Gillian would have $600,000 in super at retirement that she could not transfer to the retirement phase. She could either retain this amount in a super accumulation account (where earnings would be taxed at up to 15%) or cash the amount out of super where earnings would be subject to income tax. She may also consider the option of cashing a lump sum to contribute to Terry’s super, but would be limited by the non-concessional contribution cap.

3. Enhancing Age Pension

When one partner is older than the other, retaining super in the account of the younger spouse can enhance Age Pension entitlements while the younger spouse is under the Age Pension age (currently 67).

Using contribution splitting and/or cashing benefits from the older spouse’s account to contribute to their partner’s super reduces the amount counted in Centrelink’s income and asset tests because the superannuation balance of a person under the pension age is not assessable.

With a lower amount being assessed in means tests, the older partner may receive a higher rate of Age pension or qualify for a pension that would not otherwise be payable.

Split your super contributions

One way to boost your spouse’s super account balance is to split the concessional contributions made into your own super account and transfer some of them into your spouse’s account.

This can be a good way to equalise your super account balances if your spouse has less super than you, or if they are on a lower income and receiving lower SG contributions. It may also be of benefit if your spouse is younger than you and transferring your contributions into their account will help you qualify for higher Age Pension payments.

Contribution splitting is different from splitting or dividing your super in the case of a relationship breakdown or divorce. The division of super (or payment split) in these situations is part of a financial agreement reached under the Family Law rules.

You can split contributions where you are any age, but your spouse receiving those split contributions needs to be less than their preservation age, or age between preservation age and 65 and not yet retired. So that rule is just to stop us splitting contributions to a spouse who can then immediately withdraw the money.

Split super contributions remain preserved until the receiving spouse reaches their preservation age.

Splitting your concessional (before-tax) contributions with your spouse does not reduce the amount counted towards your annual concessional contributions cap ($30,000 in 2024-25).

Your super fund still reports all the super contributions made into your account during a financial year, including any contributions later transferred to your spouse.

What super contributions can be split?

You can ask your super fund to transfer up to 85% of your taxed splittable contributions from a particular financial year into your spouse’s super account.

Taxed splittable contributions are generally any employer contributions (including salary-sacrifice contributions) and any personal super contributions you have claimed as a tax deduction in your income tax return.

Need to know

The maximum amount of taxed splittable contributions you can split with your spouse in a particular financial year is limited to your concessional contributions cap for that year ($30,000 in 2024-25).

You can only split the lesser of 85% of your concessional contributions for that year, or the amount of your concessional contributions cap for that year.

Contributions that cannot be split with your spouse generally include:

• Personal contributions for which you can’t claim a tax deduction
• Contributions made by your spouse to your super account
• First Home Super Saver Scheme and downsizer contributions
• Government co-contributions and LISTO contributions
• Contributions with a CGT cap election for small business
• Contributions made for you if you are aged under 18 unless they are from your employer
• Transfers and allocations from foreign funds and reserves
• Rollover super benefits
• Temporary resident contributions
• Super benefits subject to a payment split due to a relationship breakdown
• Contributions you make with a personal injury election
• Contributions that have already been split.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your SMSF estate plan. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

Why comparing your Business with Others in the same Industry is good for Business

To ensure tax compliance and fairness among Australia’s small businesses, the Australian Taxation Office (ATO) sets out two types of business benchmarks – performance benchmarks and input benchmarks. These benchmarks exist to assist small businesses in meeting their taxation obligations, to help small businesses measure their financial health and identify how to improve financial performance.

What are the ATO’s Small Business Benchmarks?

The ATO analyses data from tax returns, Business Activity Statements (BAS) and other sources to establish an industry’s benchmarks. Using these industry benchmarks, the ATO can determine which businesses fall outside the expected range for a specific industry and investigate further, possibly leading to financial audits and or penalties.

Being above or below benchmarks does not automatically mean an issue with a business, but it may raise a red flag and prompt the ATO to look further into a business’s financials, typically conducting an audit.

To check if a business’s financials align with industry standards, performance benchmarks measure key financial ratios such as:

• Cost of Goods Sold (CoGS) to turnover
• Total expenses to turnover
• Gross profit margin
• Net profit margin

To help the ATO assess if reported income by a business is realistic within its industry, input benchmarks are calculated using the appropriate price or charge for a service based on the relevant labour and materials used. Turnover is estimated based on business inputs, such as materials purchased for a job. This benchmark is most often used for tradespeople, and high cash transaction businesses such as cafes and hairdressers and other cash-based businesses where there might be under-reporting of cash income.

What raises the ATO’s interest in a small business?

Small businesses should be aware that the ATO looks for significant deviation from industry benchmarks, including underreported income and sales, hidden income, inflated expenses, false deductions, and discrepancies between a business’s financials and its owner’s lifestyle.

How small businesses can benefit from the ATO’s Small Business Benchmarks

Next Steps

The ATO encourages voluntary tax obligation compliance by making its small business benchmarks and associated data publicly available for ease of comparison by small businesses. Access small business benchmarks on the ATO website Benchmarks A–Z | Australian Taxation Office.

Small businesses may self-correct any reporting issues found when making regular comparisons. Self-correction may reduce the likelihood of a business being audited by the ATO.

Review your record-keeping practices and how your income is reported. If you find your business is outside a benchmark, seek professional advice from YML Chartered Accountants for guidance.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you with your small business. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Refinance with YML Finance for a Cash Boost

If you refinance now with YML Finance, we can get you up to $4000 as a cash boost to help you repay your loan.

Learn more about how we can help you by calling us on (02) 8383 4466 and requesting a callback or making an appointment with the YML Finance Team.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with a loan. For more for more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

Payday Superannuation Reform – What does it mean for you?

As part of the government’s Securing Australians’ Superannuation package to commence from 1 July 2026, employers will be obligated by law to pay their employees’ superannuation contributions on the same day – and be received within seven (7) days – as wages and salaries are paid.

Payday refers to the date that an employer makes an ordinary time earnings (OTE) payment – weekly, fortnightly or monthly – to an employee.

Currently, superannuation contributions are paid quarterly, with employees waiting up to four months to see those contributions in their superannuation accounts. For employees, the new system will provide greater transparency, enable real-time contribution checks and tracking, and enhance retirement savings outcomes.

For businesses, the new system will streamline payroll processes and reduce the risk of non-compliance – unpaid contributions – which attracts the Superannuation Guarantee (SG) charge penalty.

The reform will take effect on 1 July 2026 when employers will need to deposit superannuation contributions into employees’ accounts within seven (7) days of each payday. Non-compliance will result in penalties including paying unpaid contributions, daily interest on unpaid contributions and administrative fees under a newly updated policy change to the Superannuation Guarantee (SG) charge.

What can employers do now?

The Payday Superannuation reform is a significant change to the management of employee superannuation contributions and will require employers across all Australian organisations to transition from the current quarterly payment system.

Employers who are currently using SuperStream, an ATO-regulated software for making electronic superannuation payments, should plan for upcoming software and payroll updates to accommodate the Payday Superannuation reform before 1 July 2026.

Employers can continue to keep accurate payroll and superannuation records, and ensure they continue to pay timely superannuation contributions within the current quarterly deadlines. This will put employers in good stead to transition without delay to the new payment system and thereby meet their ATO obligations from 1 July 2026.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your SG obligations. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.