This year seems to be moving at double speed. Over Easter I finally did something I’ve been putting off for months — I cleaned out the study. Not the quick “move the piles around and pretend it’s fine” clean… the real kind. The kind where you find old notebooks, half‑finished plans, and ideas you forgot you even had.
Somewhere between the dust and the memories, it hit me how easy it is for the urgent to override the important. We all have those things we intend to get to — in business and in life — but they quietly slide down the list until something forces our hand.
So this month I’m asking you: What’s one thing in your business you’ve been meaning to sort out, but haven’t quite made the time for?
Because April is the perfect month to get ahead of the curve before the end‑of‑financial‑year rush begins.
We’ll be sending out another in the next few days with the important compliance activities that are coming up over the next few months. We’re expecting a lot of change so please ensure that you read any emails that come through and consider connecting with us on social channels.
FBT – It’s that Time Again
Fringe Benefits Tax season is here, and if you provide any benefits to employees (cars, meals, entertainment, reimbursements, allowances, etc.), now is the time to get your records in order.
A few reminders:
- FBT year ended 31 March 2026
- Declarations, logbooks and employee contributions matter more than ever
- ATO audit activity in this space is increasing (especially around cars and entertainment)
- Consideration needs to be given to any reportable amounts that might need to be included on your annual PAYG Payment Summaries.
If you’re unsure whether something is caught under FBT, please reach out — most issues arise from “I didn’t think that counted”.
NOTE: Keep your odometer readings! Take a photo or document it in your diary. We will need this information to confirm total kilometres for the year and it is a requirement to keep a log book current.
If it’s been a while since you’ve kept a log book – or you can’t find your last one – please start a new one. We have a more detailed article of FBT and vehicles here. There’s lot of different apps to use but one that we like is Drivers Note. Log Books are a key ATO focus area for FBT. That means that we’ll be asking about these for everyone this year
Pay Day Super
The Government is still pushing ahead with PayDay Super commencing 1 July 2026, despite the significant concerns raised by industry.
This means:
- Super must be paid at the same time as wages
- Your payroll software and internal processes will need updating
- Cashflow planning becomes critical, especially for small businesses
We’ll keep you updated as more detail becomes available, but April is a great time to start reviewing your payroll workflows so the transition isn’t a last‑minute scramble.
Directors Fees & PAYG Withholding
As we head toward 30 June, one area that consistently causes issues in year‑end reviews is director remuneration — specifically, how director fees are processed for tax deductibility.
Director Fees Must Go Through Payroll to Be Deductible
The ATO is very clear on this point: If a company wants to claim a tax deduction for director fees, those fees must be processed through payroll with PAYG withholding applied.
This means:
- The company must withhold PAYG tax at the time the fee is paid or credited
- The amount must be reported through Single Touch Payroll (STP)
- Superannuation may also apply depending on the nature of the payment
- Simply “declaring” a fee in minutes or booking a journal at year‑end is not enough
If PAYG withholding is not withheld and reported correctly, the deduction can be denied — even if the director later includes the income in their personal tax return.
Common Pitfalls We See
- Fees “accrued” at year‑end but never processed through payroll
- Director drawings incorrectly treated as wages
- No PAYG withheld because “it’s all staying in the family”
- STP not updated to reflect director payments
- Superannuation overlooked for directors who are also employees
If you’re planning to pay director fees this year, now is the time to ensure your payroll is set up correctly. We can help you review your structure and avoid any year‑end surprises.
Due Dates for April 2025
The due dates for the month of April are:
7 – March Monthly Payroll Tax
3 – Good Friday (Public Holiday – Queensland)
4 – Day After Good Friday (Public Holiday – Queensland)
5 – Easter Sunday (Public Holiday – Queensland)
6 – Easter Monday (Public Holiday – Queensland)
21 – September BAS (Monthly GST Lodgers)
25 – ANZAC Day (Public Holiday – Queensland)
28 – Superannuation due (most software will require this to be submitted by the 21/4 – keep a close eye on these dates. The ATO is data matching very closely)
Upcoming Next Month
4 May – Labour Day (Public Holiday – Queensland)
25 May – March Quarter BAS (extension)
Public Holiday Reminder: Public holidays attract different pay rules and penalty rates, so keeping track helps you roster correctly and stay compliant.
$20,000 IAWO Extended
Good news for small business: The $20,000 instant asset write‑off has now been extended.
This applies to eligible assets first used or installed ready for use within the relevant timeframe. If you’re considering equipment upgrades, vehicles, tools, or technology, now is the time to plan ahead so you don’t miss the window.
If you’re unsure whether an asset qualifies, we can help you check before you commit.
ATO Focus Areas – What They’re Targeting in 2026
The ATO has been unusually vocal over the past 12 months about its compliance priorities, and several themes are emerging across a number of different professional publications.
The ATO IS heavily invested in data matching and AI – and they’re running loads of different programs in this space. From superannuation, car ownerships to tax returns, sharing economy, rental properties, merchant facilities – it’s never ending and going to become more detailed.
Here’s what’s firmly on their radar this year.
1. Employee vs Contractor Classification
This is one of the biggest risk areas for small and medium businesses.
The ATO is targeting arrangements where contractors:
- are paid mainly for their labour
- work under direction
- cannot delegate the work
- are paid hourly
- are integral to the business
Even if they have an ABN and invoice you, they may still be considered employees for:
- PAYG withholding
- Superannuation Guarantee
- Payroll tax
- FBT
- WorkCover
- TPAR reporting
There are circumstanes where superannuation must be paid for contractors who meet the “labour‑based” test. If you are not sure if that’s relevant for you, please get in touch.
2. Superannuation Compliance (Ahead of PayDay Super)
With PayDay Super starting 1 July 2026, the ATO is already tightening enforcement around:
- late or missed super payments
- incorrect SG calculations
- super not paid for eligible contractors
- employers relying on “we paid them extra to cover their super” (not allowed)
The ATO is using STP data to identify late payments in real time.
Keep in mind that this will become a cash flow issue as well – you will be paying your June Quarter (or June month) at the same time as transitioning to the pay day cycle as well.
3. GST Reporting Accuracy
The ATO is increasing reviews of:
- GST claimed twice
- GST on private expenses
- GST not reported on taxable sales
- Incorrect use of GST-free or input-taxed classifications
- BAS errors not corrected within the allowed timeframes
GST error correction rules are strict, and many businesses are unknowingly outside the correction window.
4. Director Penalty Notices (DPNs)
The ATO has ramped up DPN activity, especially for older debts that have been sitting dormant since COVID. Directors are personally liable for unpaid:
- PAYG withholding
- Superannuation Guarantee Charge
- GST
A lockdown DPN offers no escape — the only solution is to pay the debt. We have a number of practitioners that we can call on to refer you to if you want to explore options if you have received a DPN.
5. Record‑Keeping & ABN Accuracy
The ATO continues to emphasise:
- five‑year record retention
- accurate payroll and contractor records
- correct ABN details (critical for emergency services and grant eligibility)
The ATO are also actively cancelling ABNs where there is no evidence of business activity.
Don’t forget the rules about checking ABN’s to ensure deductibility for payments you make to suppliers.
6. Professional Firm Profit Allocation
This is not relevant for a lot of our clients and where it is, it is extremely important. The ATO is reviewing arrangements where income is diverted to:
- spouses
- trusts
- companies
- SMSFs
Particularly where the arrangement lacks commercial rationale or reduces the practitioner’s taxable income.
Payday Superannuation
April is the perfect time to confirm that minimum pension payments for the 2026 financial year are on track.
A few quick reminders:
- Minimums must be paid before 30 June
- Missing the minimum can affect the fund’s tax exemption
- If you have multiple pensions, each one must meet its own minimum
- Market volatility this year means balances may have shifted — double‑check your calculations
If you’d like us to review your pension position or run the numbers, just let us know.
Closing of the SBSCH
On a related note the ATO is closing the Small Business Superannuation Clearing House effective 1 July 2026. If you use this to lodge your superannuation payments there is a window of time to update your employee management software to find a solution.
If you need to have a chat about your options or need a referral to a bookkeeper who can help you take action on a new software option, please just let us know.
Service M8 Tips
ServiceM8 Tip — Automate Follow‑Ups for Quotes & Unpaid Invoices
A lot of businesses lose work (or cashflow) simply because clients forget to respond. ServiceM8’s automated follow‑ups are one of the most under‑used features — and they can make a huge difference heading into EOFY.
Why it’s great
- Keeps your pipeline moving without manual chasing
- Reduces admin time
- Improves conversion rates
- Helps tidy up outstanding invoices before 30 June
How it works
You can set ServiceM8 to automatically send a friendly reminder if:
- a quote hasn’t been accepted after X days
- an invoice hasn’t been paid after X days
- a job status hasn’t changed
The messages can be customised to your tone, and clients often respond faster to automated reminders than manual ones.
There were a couple of really useful features that she covered, so if you’d like to know more get in touch with Koren Hosnell at Clear Business Solutions – https://clearbusinesssolutions.com.au/
2025 Lodgements Due 15 May
We’re now heading into the final stretch of the 2025 lodgement program, with all remaining 2024–25 tax returns due by 15 May. This is always one of the busiest periods of the year for our team, and over the next few weeks we’ll be reaching out to clients who still have outstanding lodgement obligations.
If you know you have a return that hasn’t yet been finalised, now is the time to get your information together. Early responses mean we can lodge on time and avoid late‑lodgement penalties or ATO follow‑ups.
What’s coming up next
The next few months are packed with key compliance deadlines, including:
- 25 May BAS for monthly and quarterly lodgers
- FBT returns following the 31 March FBT year‑end
- Trust distribution resolutions (must be completed before 30 June)
- Dividend declarations for companies planning year‑end distributions
These items all have hard deadlines and strict ATO requirements, so we’ll be working through them systematically with clients.
If you receive an email from us requesting information, please try to respond promptly — it helps us keep you compliant and avoids last‑minute pressure on both sides.
Wanting more?
Many successful business owners face a common frustration—their businesses bring in good money, yet they have little personal wealth to show for it. This gap doesn’t close by working longer hours or pushing harder.
The solution comes from deliberately channeling business profits into personal wealth-building strategies that work even when you don’t.
We have lots of free resources! Check them out by clicking here.
Thanks for reading.
As always, please reach out to us if you have any questions or queries. We look forward to hearing from you.
Have a fabulous April!
Sheree & the Team at Bee Group Accountants
P.S. If there is anything that you think we can improve on too, please be sure to let us know. We are working hard to improve your experience in working with us as well!
We truly appreciate the opportunity to help and welcome any recommendations.
Closing Quote:
“Such as are your habitual thoughts, such also will be the character of your mind” – Marcus Aurelius
