Staying informed and up to date with important changes to our tax system is a key part of effective planning and decision-making. In this edition, we’ve brought together the latest updates, reminders and helpful information to keep you informed and prepared for the year ahead. Read on for key insights and updates that may be relevant to you, your family or your business.
ATO Audits – What to be mindful of
You may have received an email or letter from the ATO suggesting tax returns may be stopped for review where high work-related deductions or unusual claims have been identified.
The ATO continues to increase its focus on ensuring that deductions claimed in individual tax returns are accurate, properly substantiated and meet the relevant eligibility requirements. While claiming legitimate deductions is an important part of managing your tax affairs, it is essential that all claims are supported by appropriate records and that you understand the requirements before including them in your tax return.
Some key things to keep in mind when claiming deductions include:
- Keep accurate records: You must be able to provide evidence to support any deductions claimed, including receipts, invoices, bank statements, diaries or other supporting documentation.
- Motor vehicle expenses: If claiming vehicle-related expenses, ensure you have the appropriate records, such as a valid logbook (where required), odometer readings and supporting documentation. Logbooks must be completed correctly and maintained for the required period.
- Working from home expenses: Ensure you are keeping appropriate records of hours worked from home and any required supporting calculations or evidence.
- Work-related expenses: Expenses must be directly related to earning your income, and you must have records to demonstrate how the expense was calculated and why it was incurred.
- Avoid estimating or guessing: Claims should be based on actual expenses and reliable records. The ATO may request evidence to support how amounts have been calculated.
As part of the ATO’s ongoing compliance activities, some taxpayers may be selected for an ATO review. Selection for a review does not necessarily mean there is an issue with your tax return; however, it does mean the ATO may request additional information to confirm that claims are accurate and meet the required guidelines.
To help ensure a smooth process, we recommend keeping your records organised and providing complete supporting information when preparing your tax return. Accurate logbooks, clear documentation and timely responses can significantly reduce delays if further information is requested.
Where a client is selected for an ATO review, our standard process includes the first hour of preparation and response time being provided at no additional charge, this is provided records are complete, organised and supplied in a timely manner.
If additional work is required due to incomplete records, disorganised information, missing documentation or a more complex and extended response process, additional fees may apply in addition to the usual tax preparation fees.
Our goal is to support you through these processes and ensure your tax affairs are managed accurately, efficiently and in line with ATO requirements.
For further insight into the importance of maintaining accurate records and the ATO’s increased focus during tax time, Shane recently shared his thoughts with The Advertiser. We have included a snapshot of the article below.
To assist with keeping accurate records, we have included an example vehicle logbook and working from home template below for your reference.
AML/CTF Laws, Rules and Understanding
You may have recently heard about changes to Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements. These changes are part of a broader effort to strengthen Australia’s financial system and help prevent the misuse of professional services for illegal activities.
As part of these new obligations, accounting firms providing certain services are now required to complete additional client due diligence and verification processes. This means we may need to collect and confirm additional information, update records, and ask further questions when providing certain services or onboarding new clients.
We understand that these additional steps may feel like an extra layer of administration, and we appreciate your patience and cooperation as we work through these changes. These requirements are not about creating unnecessary hurdles — they are important legal obligations that help protect our clients, our firm and the wider community.
Our team is committed to making this process as smooth as possible and will continue to guide you through any requirements that apply to your circumstances. Thank you for your understanding and support as we implement these important changes.
Federal Budget Update
The Federal Budget includes a range of measures that may impact individuals, families and businesses. While many announcements are subject to further legislation and guidance, it is important to understand the key changes and how they may affect your future planning.
Some of the key areas to be aware of include:
Changes impacting Self-Managed Super Funds (SMSFs)
The Government has announced changes to the current Limited Resource Borrowing Arrangement (LRBA) rules affecting how SMSFs borrow to purchase residential property. While SMSFs can still hold residential property, they will no longer be able to borrow to acquire them. Commercial property purchases remain unchanged. The restriction is due to kick into effect on the 10th of August.
Existing SMSF borrowing arrangements are not impacted by these changes, and clients who are considering purchasing property through their SMSF should seek advice before entering into any new arrangements to ensure they understand the requirements and implications.
It is important to remember that SMSF property investments continue to be subject to strict superannuation rules, including meeting the sole purpose test, ensuring the investment is for retirement benefit purposes, and complying with restrictions around personal use and related-party transactions.
Planning ahead
With ongoing changes to tax, superannuation and compliance requirements, proactive planning remains an important part of managing your financial affairs. We recommend reviewing any upcoming investment decisions, business changes or major financial commitments with your adviser to ensure they continue to align with your circumstances and objectives.
Our team will continue to monitor further updates and provide guidance as more information becomes available.
Thank you for taking the time to read the latest edition of our newsletter. We appreciate the opportunity to keep you informed of important updates that may impact you, your family or your business.
At Winter & Co, we are proud to have a dedicated and experienced team committed to supporting our clients. If you have any questions about the information shared in this edition or would like advice tailored to your individual circumstances, please don’t hesitate to get in touch. We are always here to help.
The Winter & Co Team
What a week and a half in tax reform in Australia.
Given the proposed changes in the latest federal budget, we have decided to combine a budget wrap and our usual end of year newsletter in one.
We’ve added a unique competition for those of you that make it to the end in appreciation for you taking the time to read this.
Please note that not all information in this newsletter will apply to every client, as we assist a wide range of individuals, businesses, trusts, companies, and SMSFs.
Tax Appointments – Get in Early!
Please remember that under ATO guidelines, we are unable to lodge individual tax returns for the current financial year until income information has been finalised by employers and relevant government agencies. Accordingly, tax preparation appointments won’t start until the 14th of July 2026.
To help ensure your return is accurate and to minimise amendments, please:
- Ensure your employer has finalised your STP payment summaries.
- Wait until all investment, crypto, or managed fund statements, it may be beneficial to delay lodging until all reports have been issued. Often all this information is not available until the end of September.
- Provide all private health details (including end of financial year statement) for your appointment. The prefill report issued to us by the ATO only provides data of premiums paid and we may need type of cover and days covered.
- Advise us as early as possible if you have changed your address, bank details, email address and phone number.
Business clients are encouraged to contact us early regarding year-end planning and tax forecasting.
As most clients have been coming in for several years, it will come as no surprise that appointment times fill up fast. While we will do our best to accommodate requests, availability cannot be guaranteed. Our preference and the way we think things work best are for face-to-face appointments, but we will continue to offer virtual alternatives if required.
If unwell or running late for appointments let our friendly team know and we can arrange a virtual appointment so there is no expectation to reschedule your appointment.
📞 08 8295 1055
📧reception@winterco.net.au
Federal Budget 2026
The 12th of May saw many proposed changes to Australia’s taxation system. The big three being to calculation of Capital Gains Tax, negative gearing and a potential minimum taxation on discretionary trusts.
In general, most publications have offered negative reviews to the above proposed amendments. However, it is important to remember there is still a little water to go under the bridge. Remember Div 296 which was never going to change!
The only WARNING or CAUTION from those mentioned above is if you are in the process of buying an investment property that isn’t a new build,the changes to negative gearing and capital gains tax will impact you moving forward, if this applies to you, please feel free to request more information.
The proposed changes to Discretionary Trust distributions offer a three-year rollover relief to work around if required this will give us the opportunity to review your structure with you to see if it is still the best fit.
Any revisions to the calculation of Capital Gains begin the 1st of July 2027, so we have time to work through with you. This change certainly will impact a number of our client base. For a few it could be for the better, but for most it will mean more tax to pay on the sale of assets.
If you are holding a Pre CGT asset (that is owned before Sept 1985), and it is not your home, we will need to discuss the implications if these changes are introduced.
For one of the first times, it appears Superannuation was relatively untouched in the budget.
And from an individual level there was BIG NEWS. A “Working Australians Tax Offset” was introduced. This will add to the initial tax bracket rate reduction from 16% to 15% on the 1st of July 2026 and then down to 14% from the 1st of July 2027.
There has been a lot of material floating around about the budget. One of the best I have found, if you would like to dig a little deeper, is from the Tax Institute. See attached link for further reading.
Please do not hesitate to reach out to any of the Team to discuss potential impact good or bad.
– Shane Winter
Tax Institute Federal Budget Report
Payday Super Is Coming – What Employers Need to Know
Big changes are coming for employers, with super to be paid at the same time as wages instead of quarterly from 1 July 2026.
With the legislation now passed, businesses should start preparing now to avoid issues once the changes take effect.
A few things businesses should be thinking about now:
- Payroll software and super integrations
- Cashflow impacts from more frequent super payments
- Payroll processes and clearing house setup
- Avoiding stricter penalties for late super
The ATO is introducing these changes to reduce unpaid super and improve real-time compliance through STP reporting.
Cloud payroll platforms like Xero and Myob are already supporting the transition, however businesses will still need to ensure their payroll processes and cashflow management are ready for the change.
If you want us to review your payroll setup before these changes kick in, feel free to reach out.
YEAR END TAX PLANNING – Individuals
Great Substantiation
Best practice is to keep great records. Make sure Log Book is within 5 years. Make sure we have travel logs for trips and receipts for other work related expenses.
And ideally for work from home claims a diary of time spent working at home.
Superannuation
Reminder for 2025/26, there is a maximum deductible super contribution cap of $30,000.
From the 1st of July 2026 it will be increased to $32,500.
Also remember if your total super balance is under $500,000 at 30th of June 2025 and you have unused contributions in your deductible cap from the previous five years there may be additional monies that you can contribute and we can claim.
If you would like to know what additional deductible contributions are available to you, please reach out to our team.
The Non Concessional Contributions cap (non deductible) for 25/26 is $120,000 and from The 1st of July 2026 it will be increased to $130,000.
YEAR END TAX PLANNING – Business
Instant Asset write off – for Small Businesses only
We still have the $20,000 instant asset write off. If there is something under $20,000 you need to acquire for your business, then it can be fully depreciated within the 25/26 tax year rather than over its effective life you will get a full deduction rather than depreciation.
Prepayment of expenses –
If you have expenses to incur early in the financial year, prepay them before 30 June for a deduction this year.
Employee Superannuation –
Pay before 30 June for tax deduction this year. Additionally make sure you have paid your superannuation on time. They need to be received by the 28th day of the following month. See further information regarding payday super from 1st July 2026
Bad Debts
Write off Bad debts before year end – Giving you an immediate reduction to your sales.
Good recording keeping
Keeping books and records up to date and well organised ensures we do not pay more tax than required.
Protecting Yourself from Scams & Identity Fraud
ATO impersonation scams continue to increase each year, particularly during tax season.
Scammers may contact taxpayers by:
• Text message
• Phone call
• Email
• Social media
They may claim there are unpaid tax debts, refunds waiting, or urgent action required.
Please remember:
- The ATO will never demand payment through gift cards, cryptocurrency, or unusual payment methods
- Never click suspicious links or provide your TFN via unsecured email
- Always verify unexpected communications before responding
We strongly encourage clients to use MyID and enable secure multi-factor authentication where possible to better protect their information.
IF YOU ARE REMOTELY CONCERNED ABOUT ANYTHING YOU HAVE RECEIVED REGARDING YOUR TAX, PLEASE RING THE OFFICE AND OUR TEAM WILL ASSIST.
Additionally, of late we have been made aware of clients with companies and or business names and or domain names, that are being sent invoices requesting payment of annual registration fees from fraudulent companies. If in doubt, please contact the team.
AUSTRAC verification requirements:
As part of strengthened compliance and identity verification obligations under AUSTRAC (Australian Transaction Reports and Analysis Centre) regulations, additional verification checks are now required for certain engagements. This applies to both new and existing clients in specific circumstances, including where we are assisting with the establishment of a new company, trust, or Self-Managed Super Fund (SMSF). Further guidance and procedural details are currently being finalised and will be communicated in the coming weeks.
If you receive anything suspicious claiming to be from the ATO or from our office, please contact us before responding.
Meet the Team for This Years Season
At Winter & Co, our team is here to support you in navigating tax time smoothly and efficiently.
Abbey – Front Office Co Ordinator
Curtis – Undergraduate Accountant
Dominic – Graduate Accountant
Kayla – Office Manager / Executive Assistant
Hayley – Client Services / Compliance Officer
Deb – SMSF Manager
Anthony Baldacchino – Senior Associate
Jonah – Senior Associate
Shane Winter – Director
A Reminder from Our Team
Tax time can feel overwhelming, but you do not have to navigate it alone.
Whether you need assistance with:
- Individual tax returns
- Business compliance
- Payroll & superannuation
- BAS & GST
- Tax planning
- Capital gains tax
- Cryptocurrency reporting
- SMSFs
- Xero support
Our team is here to help.
Thank you again for your continued support of Winter & Co.
We appreciate the trust you place in our team and look forward to assisting you throughout the 2026 tax season.
From all the team at Winter & Co, we look forward to another great financial year ahead and continuing to support our clients, businesses, and community throughout 2026 and beyond.
Competition Time!!
Win Tickets to See Conrad Sewell Live in Adelaide
To celebrate another tax season and as a reward for getting to the end of the newsletter, Winter & Co is giving one lucky client the chance to win:
2 x Tickets to see Conrad Sewell live
Lion Arts Factory, Adelaide
Saturday 6 June 2026
To enter, simply send an email to:
📧kayla@winterco.net.au
Let us know:
- Why you would love to attend the concert
- What was the highlight of this newsletter for you?
Entries close at the end of May.The winner will be drawn via lucky dip, and will be contacted directly.
“Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing or learning to do” – Pelé
Good luck to our Commonwealth athletes and to our Socceroo’s in the world cup!
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