Category: Newsletters

Your business pays rent. Have you considered buying the property?

You work hard to build your business. Have you considered owning the premises it operates from?

If you're self-employed and your business pays rent for its office, warehouse, workshop, retail space or other commercial premises, it may be worth looking at a different approach.

Rather than renting indefinitely, could purchasing a suitable property help you build long-term wealth while providing premises for your business?

There isn't one answer for everyone, but there are a few options worth exploring.

Option 1: Purchase the property through your SMSF

If you have a self-managed super fund (SMSF), it may be possible for your fund to purchase eligible commercial property and lease it to your business, subject to the relevant superannuation rules and lending requirements.

Potential considerations include:

Commercial property leased to a business related to the SMSF can be subject to specific rules, so the structure needs careful consideration.

Option 2: Purchase the property outside your SMSF

An alternative is to purchase the property personally or through an appropriate business or investment structure.

Depending on your circumstances, this could provide an opportunity to build equity, potentially benefit from future capital growth and have greater control over the premises your business occupies.

The right ownership structure, tax implications, borrowing arrangements and asset-protection considerations need to be assessed before proceeding.

What if you don't want to buy your current premises?

You don't necessarily need to purchase the property you're renting today.

You could explore other commercial properties that may better suit your business requirements, budget or longer-term investment objectives.

Start by asking the right questions

Before deciding whether to continue renting or investigate ownership, it can be worthwhile to understand:

At YML, we can help you explore the possibilities.

YML Finance can assist with assessing potential commercial property finance options and borrowing requirements. YML Group can help you explore whether the broader financial strategy warrants further consideration, with any personal financial advice provided through the appropriately authorised adviser.

There is no obligation to buy, and purchasing won't necessarily be the right decision for everyone. The first step is simply understanding what may be possible in your situation.

Interested in exploring your options?

How can YML help?

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

Overseas Staffing: A Smarter Way to Build Your Workforce

Running a successful business means you’re constantly balancing people, managing productivity and aiming for profitability, so YML Group offers overseas staffing solutions to help Australian businesses.

Reducing operational costs whilst efficiently scaling your business and without compromising your existing internal resources, quality or control is possible by looking beyond the traditional staffing model.

Our approach starts with understanding your business, identifying gaps in staffing and exploring solutions that align with your productivity objectives. We ensure newly recruited overseas staff work as part of your business’s team, managed and supported by YML Group’s Australian systems and infrastructure with full accountability.

Benefits for your Business:

Overcome local skills shortages

YML Group offers skilled offshore professionals to fill important roles without relying solely on the Australian labour market. Finding qualified, reliable employees locally can be a challenge, time-consuming and expensive at current labour market rates.

Overseas recruitment takes the pressure off, fills your staffing gaps and frees up your in-house teams to focus on higher-value work tasks.

Scale your business faster

Expanding your workforce can require a significant investment in recruitment costs, salaries and additional infrastructure. At generally less expense, you can delegate suitable routine, repetitive tasks to overseas staff, thereby improving workflow capacity to target growth opportunities.

Overseas staffing offers a flexible way of increasing your in-house team’s capacity to respond to demand as your business grows.

Extend your business hours

Your business does not need to stop when your in-house Australian workforce finishes for the day. With overseas staff working in different time zones, you may be able to extend your operations and keep important work tasks moving outside your usual business hours.

Overseas administration staff, for example, can continue with routine processing, providing a handover of ongoing procedures to your local team at the start of each day. This would support faster turnaround times of back-of-house administrative duties.

Reduce cost, increase profit

Depending on the role and the service arrangement, overseas staffing can provide a more cost-effective way to access skills to support your business’s needs. Local hires require a company to invest in recruitment, onboarding, superannuation, leave entitlements, equipment and office space.

Overseas staffing offers potential savings to your business, giving your business a clearer focus on its financial goals.

Next Steps

Overseas staffing isn’t simply about reducing costs; it’s about finding the right balance of skills and capacity to resource your business most efficiently. With the right people and processes in place, you can address skills shortages, increase productivity, extend your operations and scale up your business.

YML Group’s overseas staffing solutions can help you explore opportunities to not only build but also strengthen your workforce. Reach out to YML Group and let us support your growth business strategy.

How can YML help?

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

Discretionary Trust Reform: 30% Minimum Tax from 1 July 2028

A new Australian Government tax of 30% on discretionary trusts will commence from 1 July 2028. Discretionary trust structures will continue to serve legitimate purposes, but the proposed reform mean it is time to review whether your current trust deed remains suitable.

For many Australian families and business owners, discretionary trusts have been an important part of their tax planning, asset protection and succession strategies. This major taxation change could significantly affect how family-run businesses, investors and high-income earners manage their tax strategy.

Potential Changes to Discretionary Trusts

Currently, discretionary trusts can distribute income among eligible beneficiaries, allowing families and business owners to potentially reduce their tax liability by taking advantage of different individual taxation rates.

Under the proposed reforms, affected trusts would generally pay a minimum tax of 30% on relevant taxable income. Individual beneficiaries may receive a non-refundable tax offset for their share of the minimum tax paid, while corporate beneficiaries would not receive the same offset.

Certain trust types and categories of income would be excluded, subject to the detailed rules under the legislation. Therefore, it will be important to assess how your trust distributes income and whether your existing trust deed would continue to be right for you and your beneficiaries under the incoming legislation.

The reform could particularly affect:

Certain trusts and categories of income proposed to be excluded, subject to eligibility requirements, include:

Changes to taxation do not automatically mean that a trust should be dismantled. Businesses and individual taxpayers who choose to restructure out of their discretionary trust arrangements, though, will be permitted to access expanded rollover relief for three years from 1 July 2027, pending final rollover relief application eligibility.

Next Steps

Although the proposed commencement date is 1 July 2028, early planning is important. Depending on your specific circumstances, you might need to review your trust deed, beneficiary distribution and succession planning.

Restructuring should not be undertaken without consideration for asset protection, capital gains tax (CGT), stamp duty and without assessing whether restructuring is appropriate for your family, investment or business strategy.

YML Group’s Chartered Accountants can help you navigate the proposed reform and evaluate options available to you. Our approach is focussed on proactively reviewing the proposed reform in relation to your future tax planning

How can YML help?

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

How and why would you choose to split your Superannuation with your Spouse?

When it comes to superannuation, where your retirement savings are can be just as important as how much you have. Superannuation contribution splitting between spouses can place both parties in a better financial position for their joint retirement.

For eligible couples, depending on your circumstances, transferring certain concessional (before-tax) contributions from one spouse’s superannuation account to the other can support a more effective retirement strategy; balancing superannuation between partners as you move collectively into the tax-free retirement phase.

How does Superannuation Contribution Splitting work?

Superannuation contribution splitting can be useful where one spouse’s balance is approaching and likely to exceed their individual general transfer balance cap, currently $2.1 million.

The ability to carry forward unused concessional contribution caps is generally available only where your total superannuation balance was below $500,000 at the previous 30 June. Therefore, if one spouse’s super balance is approaching $500,000, splitting eligible contributions to the other spouse may help preserve access to the carry-forward concessional contributions rules in future years.

For 2026–27, the general concessional contributions cap is $32,500. Generally, up to 85% of eligible taxed concessional contributions can be split with a spouse, subject to applicable limits and eligibility requirements.

The receiving spouse generally needs to be under 60, or aged 60-65 and not retired.

If one partner is older than the other, keeping more super in the younger spouse’s name may help maximise the older partner’s Age Pension entitlement while the younger spouse is below Age Pension age, currently 67.

Generally, superannuation held by someone under Age Pension age is not counted in Centrelink’s income and assets tests. This may reduce a couple’s assessable assets and potentially increase the older partner’s Age Pension entitlement.

The key is timing. Superannuation and Centrelink rules can be complex, and the right strategy will depend on your ages, superannuation balances, other assets, and your retirement plan.

Important:

Ask us at YML Super Solutions for a review of your superannuation and retirement strategies. We can help you to identify opportunities for potential superannuation contribution splitting for a healthier financial retirement for your spouse and you.

How can YML help?

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

Important: Value your Property around 1 July 2027 for future CGT

Australia’s proposed Capital Gains Tax (CGT) changes will affect your future CGT liability if you sell your property after 1 July 2027.

Under the proposed transitional arrangement, a property asset held prior to 1 July 2027 may have its capital gain calculation separated into two components: pre-1 July 2027 and post-1 July 2027. Therefore, a property’s value on 1 July 2027 will become an important reference when you eventually sell.

Establishing your property’s market value may be done in two ways:

A Formal Valuation might be worthwhile if your property is of high value, has had significant improvements made, is difficult to compare without similar properties in the same area, or you expect to hold onto the property for a long time beyond 1 July 2027.

An ATO-prescribed Calculation might be considered if your property is a simpler, unimproved or lower-value property where there are numerous comparable properties, or if you might not hold the property for long past 1 July 2027.

Finding reliable evidence of your property’s value if you sell your property years after 2027 could provide difficult if you haven’t valued it around 1 July 2027 in readiness for the proposed incoming CGT changes.

Remember, it is worth considering the timing of a property asset sale in terms of your retirement, your cash flow and your investment strategy, therefore record-keeping is something you can do now to assist you in the years to come.

Keep the following documentation, including but not limited to, to assist you in the future:

Doing this while the information is readily available can be much easier than trying to reconstruct it years later.

There is no rush yet but start planning to undertake a valuation and mark the date 1 July 2027 in your diary now.

Further details and guidance are expected from the Australian Taxation Office (ATO) before the CGT changes are formally introduced. Seek professional financial advice before arranging a property valuation or making decisions based on the current proposed CGT changes.

Contact us at YML Group to discuss how your property portfolio fits into your retirement strategy and how the proposed 1 July 2027 CGT changes may need to be factored into your future decisions.

How can YML help?

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

Payday Super commenced on 1 July 2026 – Have you complied?

On 1 July 2026 the Australian Taxation Office (ATO) introduced its new Payday Super system of paying employees their employer superannuation entitlements. Australian businesses are now required to pay Superannuation Guarantee (SG) contributions each payday, rather than on the former quarterly payment cycle.

Previously, an employer was required to pay the SG contribution into their employees’ superannuation funds quarterly – on time, in full and to the correct fund – or become liable for the Super Guarantee Charge (SGC). The SGC was more than simply paying any missing SG contribution; it also included interest and administration fees that were not tax-deductible.

The new Payday Super system is designed to put employer superannuation amounts into employees' retirement accounts sooner and make missed or late payments easier to identify by the Australian Taxation Office (ATO).

The key aspects Australian employers need to know about Payday Super are:

For employers, SG contributions have become a more frequent payroll and cash flow obligation. Businesses that previously relied on holding SG contributions until the quarterly due date need to ensure sufficient cash is available with each payroll cycle.

The ATO has indicated that it understands businesses might need time to adjust during the first year, but employers should still make genuine efforts to pay their employees correctly and promptly and keep records of any errors and corrections.

Next Steps

Payday Super can affect your payroll, administration and reporting systems. Contact us to review your payroll and superannuation payment processes to help ensure your business meets its Payday Super compliance requirements.

How can YML help?

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

30% Trust Tax: What Trustees Need to Know 

The proposed 30% minimum tax on discretionary trusts has created uncertainty for many Australian families and business owners. However, the draft legislation also provides potential alternatives, including fixed trust elections and restructuring relief.

Before making any major decisions, it is important to understand how the proposed rules may apply to your circumstances and what options may be available.

For generations, discretionary trusts have been a cornerstone of Australian family wealth, business ownership, and investment planning. They have provided flexibility, supported succession planning, and helped families respond to changing circumstances and opportunities.

That is why the Federal Government’s proposed Minimum Tax on Discretionary Trusts has attracted so much attention. The exposure draft proposes a 30% minimum tax for many discretionary trusts from 1 July 2028, together with alternative pathways, including an election regime and transitional restructuring relief.

The headlines have understandably created uncertainty. However, the legislation is still in draft form. Even if it proceeds substantially as proposed, families and business owners will have options. At YML Group, we believe this is not a time for panic. It is a time to understand your position and plan ahead.

What is being proposed?

Under the draft rules, the trustee of an affected discretionary trust would generally pay a minimum 30% tax on trust income. Non-corporate beneficiaries may receive a non-refundable tax offset, while corporate beneficiaries would generally not receive that offset.

Importantly, not every trust would be affected. The draft excludes various structures and income categories, including fixed trusts, deceased estates, complying superannuation entities, special disability trusts, qualifying primary production income, and certain testamentary trust arrangements. It also proposes a broader definition of a fixed trust, which may place some existing arrangements outside the new regime.

Every family group is different. The potential impact will depend on the trust deed, the assets and income involved, the beneficiary structure, and the family’s long-term objectives.

Three potential pathways

Option 1: Continue with the existing structure

For some families, the impact may be limited. Certain income streams are excluded from the minimum tax calculation, and some existing arrangements may continue to deliver acceptable outcomes. The focus may simply be on understanding the future tax cost and managing it appropriately.

Option 2: Elect into a more fixed structure

The draft introduces an Excluded Election Trust regime. Eligible trusts existing on 1 July 2028 could nominate beneficiaries and fixed proportions of income and capital. If the conditions are met, the trust would not be subject to the minimum tax.

This may provide greater certainty without transferring assets or undertaking a large-scale restructure. The accompanying fact sheet indicates that the election is intended as an alternative to restructuring and is not expected to trigger state stamp duties.

Option 3: Restructure

The Government has also proposed a dedicated roll-over relief regime. Subject to eligibility requirements, affected discretionary trusts could transfer assets to alternative structures, such as companies or fixed trusts, during a three-year transition period from 1 July 2027 to 30 June 2030 without immediate income tax consequences.

For some families, this may be an opportunity to review structures established many years ago and determine whether they still support current business, investment, asset-protection, and succession objectives.

Every trust has a different purpose

Trusts are often discussed as though they are all the same. They are not. Some hold operating businesses. Others hold investment portfolios or property accumulated over decades. Some form part of complex succession arrangements involving several generations.

That is why no article, government announcement, or social media post can determine what your trust should do. The right approach starts with understanding:

Only then can the available pathways be assessed properly.

Why planning now matters

Trust advisory is not new to YML Group. We work with family groups, business owners, and investors through tax reform, succession events, restructures, and changing regulatory requirements. The proposed minimum trust tax is a significant development, but it is not an unsolvable problem.

The draft itself recognises that families need choices through elections, restructuring relief, and expanded fixed-trust rules. The families best positioned will not necessarily be those who react first. They will be those who understand their current structure, objectives, and available options before making a decision.

Our recommendation

Do not make major decisions based solely on headlines. Do not assume your structure is affected, and do not assume it is not. Use the period before the proposed commencement date to understand where you stand.

YML Group can help clients:

The rules may change, and the legislation may evolve. What will not change is the value of clear, considered advice.

How can YML help?

Talk to our YML Chartered Accountants team today to see how YML Group can help you assess the potential impact of the proposed rules, review your trust structure, and consider the available planning pathways. For more information,  view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website

Incoming BAN on SMSFs borrowing for Residential Property

Since 2007, an exception has been made to allow Self-Managed Superannuation Funds (SMSFs) to borrow under strict Limited Recourse Borrowing Arrangements (LRBAs) to purchase residential property. This is changing. The Federal Government has introduced legislation, in support of its broader Budget package, that will remove the use of borrowing by SMSFs for residential property purchases, commencing around mid-August 2026.

What does this mean for SMSF trustees?

Once the new legislation is implemented, SMSFs will no longer be able to borrow to purchase residential property, regardless of whether it is:

What will happen to existing LRBA loans?

The new legislation will not be retrospective, meaning existing property loans held by SMSFs may continue, and trustees will be permitted to refinance those loans if required. Where a contract for a residential property has been exchanged prior to the commencement date, it is expected that transitional provisions will be applied even if settlement occurs after the commencement date.

What investment options remain to SMSF trustees?

Despite the incoming legislative changes, SMSFs will continue to be able to:

When will the new legislation’s rules become enforceable?

The new legislation will come into effect around mid-August 2026, 45 days after the legislation receives Royal Assent. Until then, the current LRBA borrowing rules for SMSFs remain in effect.

Next Steps

This legislation marks the end of leveraged residential property investing through SMSFs. SMSF trustees may still invest in residential property, but without the need to borrow to do so. NOW is the time to review your SMSF investment plan and strategy. Ask us at YML Super Solutions to help you with understanding the implications and explore alternative investment opportunities for your SMSF.

How can YML help?

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

Interest Rates are easing – Is it time to refinance?

Our lenders are sharpening their interest rates.

Home loan rates below 6.00% p.a. variable may be available to you, and, in some cases, eligible borrowers may also receive a cash gift of up to $4,000, subject to lender terms and conditions.

Reach out to us NOW and 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 refinancing your loan. For more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website

ATO Debt Refinancing – Ask us, How?

If you have a large ATO debt and need to avoid a credit default, or you want to consolidate multiple debts, and you need to free up cash flow for your business, you might want to consider ATO debt refinancing.

Benefits of Refinancing your ATO Debt

You may be able to:

Refinancing to pay an Australian Taxation Office (ATO) debt, if the ATO will not extend terms, may be possible through specialist lenders using your property as security.

Speak to us about your refinancing options 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 your ATO debt refinancing. For more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website