From payroll reform to professional development, this issue explores several important topics for businesses and investors. We unpack the new Payday Super laws that will soon change how employers handle super contributions and clarify when further study — like an MBA — can genuinely pay off at tax time. We also look at the Federal Government’s proposed “cash acceptance” rules that could see some retailers required to accept notes and coins again, and what that means for everyday operations. Finally, for SMSF trustees, new draft guidance from the ATO highlights why education is more than just good practice — it’s essential to avoid compliance risks and penalties. It’s a practical, forward-looking edition designed to help you stay compliant, confident, and ready for the changes ahead.
Super on Payday: Fundamental Changes for Employers
If you run a business, you already know the juggling act that comes with managing the payroll process — paying staff on time, managing cash flow, and staying compliant. From 1 July 2026, there’s a major change coming that will reshape how you handle superannuation contributions for staff. It’s called Payday Super, and it became law on 4 November 2025. The new rules are designed to close Australia’s $6.25 billion unpaid super gap and make sure employees — especially casual and part-time workers — get their retirement savings when they get paid.
What’s Changing?
From 1 July 2026, you’ll need to pay superannuation guarantee (SG) contributions at the same time as wages, rather than weeks or months later. Employers will have seven business days from payday to ensure contributions hit employees’ super funds. If payments are late, the Superannuation Guarantee Charge (SGC) will apply — that means paying the missed super plus an interest and administration penalty. Once SGC has been assessed, additional interest and penalties may apply if the SGC liability isn’t paid in full.
Unlike the existing system, SGC amounts will normally be deductible to employers, although penalties for late payment of SGC won’t be deductible.
On top of this, the ATO will retire the Small Business Superannuation Clearing House (SBSCH) platform from 1 July 2026 for all users and alternative options should be sought. The change isn’t just about compliance — it’s about impact. The Government estimates the earlier payments could boost an average worker’s retirement balance by around $7,700.
Why It’s Good For Business?
This reform might sound like extra admin, and it might take a bit of getting used to, but it can actually simplify your payroll process and strengthen your reputation as an employer.
- Less admin – Paying super when you run payroll means no more quarterly payment crunches.
- Fewer compliance risks – ATO data-matching will pick up issues faster, helping you avoid penalties before they snowball.
- Stronger employee trust – Staff can see their super growing in real time, which might help with engagement and retention.
- Smoother cash flow management – Paying smaller, regular amounts of super is often easier to manage than large quarterly sums.
The ATO will take a “risk-based” approach for the first year, focusing on education and helping businesses transition smoothly. If you pay on time, you’ll likely be flagged as low risk, meaning fewer compliance checks.
How to Get Ready — Practical Steps to Take Now
You’ve got time before the rules kick in, but the smart move is to prepare early. Here’s how:
- Check your payroll software – Most modern systems (like Xero, MYOB, or QuickBooks) already support payday-aligned super. Confirm your setup and check if any updates or integrations are needed.
- Map your pay cycles – Note how often you pay staff (weekly, fortnightly, monthly) and calculate the seven-day payment window for each.
- Brief your team – Make sure whoever manages payroll understands the changes. The ATO has free online resources and webinars to help.
- Plan your cash flow – Consider shifting from quarterly to more regular payments now to get used to the timing. Smaller, frequent super payments can reduce cash flow shocks.
- Monitor and review – Set up a monthly check to ensure super contributions have cleared correctly. Keep an eye on ATO updates as final guidance is released.
If you outsource payroll, contact your provider soon — many are already updating systems for Payday Super and can help you make a seamless switch.
The Bottom Line
Payday Super isn’t just a compliance change — it’s an opportunity to make your payroll more efficient, your staff happier, and your business more compliant with less effort. With the laws now passed and just over 6 months to prepare, it’s time to get ahead of the curve.
If you’d like help reviewing your payroll setup or planning the transition, get in touch with our team — we can help you make sure your business is ready to go when Payday Super commences.
Unlocking Tax Savings: Can Your MBA (or Other Studies) Pay Off at Tax Time?
If you’ve invested in further study — an MBA, a leadership course, or a postgraduate qualification — you might be wondering: can this help at tax time?
For many professionals, the answer is yes — but only if the right boxes are ticked. The ATO’s rules on self-education expenses are strict, and the line between “deductible” and “non-deductible” can be thin. Getting it right could mean thousands back in your pocket; getting it wrong could mean an ATO adjustment, plus interest and penalties.
The Scenario: Sarah’s MBA
Sarah works in the Department of Defence and recently completed an MBA through a private provider. Her employer supported her studies with a $40,000 study allowance, and the course fees totalled $18,000. She deferred payment using the FEE-HELP loan system and declared the allowance as taxable income in her return.
Now she’s asking:
Can I claim a deduction for my MBA fees?
Does it matter that I used FEE-HELP?
Does the employer allowance change things?
The Type of Loan Matters
HECS-HELP – no deduction:
If your course is a Commonwealth supported place (most undergraduate and some postgraduate university programs), you can’t claim a deduction. There is specific legislation in the tax system which denies deductions for fees covered by HECS-HELP — even if you pay them upfront and even if the course is closely related to your work.
FEE-HELP – potential deduction:
If you’re in a full-fee course, your tuition fees might be deductible if the study directly relates to your current employment or business activities. The ATO doesn’t allow a deduction for loan repayments later on — just the course fees themselves.
Practical tip:
Check your course statement or loan confirmation to see if you’re under HECS-HELP or FEE-HELP. Only FEE-HELP (or private payment) gives you potential deductibility.
The “Nexus” Test — Linking Study to Your Current Work
Even if the funding passes the first test, the purpose of the study is key. The ATO will only allow deductions if the course maintains or improves the skills you already use in your job, or is likely to increase your income in that same role.
It won’t apply if you’re studying to move into a new field or start a different career.
The ATO issued a detailed ruling on this topic in 2024 which provides some clear examples:
Allowed: A store manager doing an MBA to strengthen leadership and business operations skills.
Denied: A sales rep doing an MBA to change careers into consulting — the link to the current role was too weak.
For Sarah, the deduction depends on whether her MBA subjects (like strategy, policy or management) build directly on her current Defence role. The fact that her employer funded the course helps demonstrate relevance, but it’s not proof on its own.
In some cases you might find that specific subjects or modules are sufficiently linked with current income earning activities, while other subjects are too general in nature for the fees to be deductible.
Employer Allowances and HELP Repayments
The $40,000 allowance Sarah received is assessable income — it’s taxed just like salary. But that doesn’t stop her from claiming eligible self-education deductions for the course fees.
HELP loan repayments later on are not deductible — they’re simply a repayment of debt. The timing of the deduction is based on when the course expense was incurred (not when the loan is repaid).
Making It Practical
Check your loan type – FEE-HELP or private fees can be deductible; HECS-HELP cannot.
Gather evidence – Keep course outlines, job descriptions, and any correspondence showing the study supports your current work.
Claim what’s relevant – You can only claim expenses directly connected to your current job (fees, books, and possibly travel).
Be ready for review – Large claims often attract ATO attention. A private ruling can provide peace of mind if the amount is significant.
Key Takeaways
For many professionals, postgraduate studies like an MBA can deliver both career and tax benefits — but only if they relate directly to your current role.
Handled correctly, self-education deductions can return thousands in tax savings. For Sarah, that could mean a refund of over $5,000 on an $18,000 course.
If you’re considering further study, talk to us before you enrol or claim. A quick chat could ensure your next qualification delivers the best return — professionally and financially.
Know the Rules Before You Break Them: Why SMSF Education Matters More Than Ever
Running, or deciding to set up a self-managed super fund (SMSF) gives you control, but it also brings legal responsibilities. The Superannuation Industry (Supervision) Act 1993 (SISA) contains detailed rules on trustee duties, investments, borrowing, payments and recordkeeping. Simply put, you cannot identify or avoid breaches you don’t know exist. For trustees, this should mean education is not optional but rather, is essential for risk management.
Why understanding SISA matters:
- You can’t comply with what you don’t know.
- Early identification reduces harm.
- Education protects members.
The ATO’s Focus on Education — What Trustees Need to Know
The ATO has recently published a draft Practice Statement (PS LA 2025/D2) explaining when it might issue an education direction under section 160 of SISA. These directions give the ATO power to require trustees to complete specified education where trustees’ knowledge or behaviour poses a risk to compliance.
However, trustees should not wait for an ATO directive before getting educated — such a directive means the trustees have already breached the rules.
Practical Steps Trustees Can Consider
- Use ATO’s official SMSF guidance.
- Complete the ATO’s knowledge check.
- Seek timely professional advice.
- Document your learning and decisions.
Final Word
SMSF trustees hold both opportunity and responsibility. Learning the SISA rules and the ATO’s expectations is the most practical way to prevent costly mistakes.
Cash is Making a Comeback – Is Your Business Ready to Take It?
For years, businesses have been moving away from cash – and for good reason. Digital payments are quick, traceable, and cut down on the risk of theft or counting errors. But that tap-and-go world might soon have to make room again for notes and coins.
The Government has released draft regulations that would require certain retailers to accept cash payments, ensuring Australians can still buy essential goods like groceries and fuel – even when technology fails.
Who Will Need to Accept Cash – and Who Won’t
The new rules will apply to fuel stations and grocery retailers for in-person transactions under $500. Businesses with annual turnover of less than $10 million will be exempt.
What This Means for Your Business
For larger retailers, this change will mean reintroducing cash-handling processes. For small businesses under the $10 million exemption, the key step will be to document turnover clearly.
Preparing for the Change
Review your payment policies, assess your exposure to the rules, and budget for setup or compliance costs.
Looking Ahead
Cash isn’t going away just yet. This reform is about maintaining choice, resilience, and fairness in how Australians pay.
If you’d like help assessing how these rules could affect your operations, get in touch with our team.
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