Property Subdivision Tax Risks and How to Avoid Them in Australia

Why Property Subdivision Projects Require Careful Tax Planning

           Are you considering a property subdivision project to unlock new opportunities and boost your business portfolio? Before you dive in, it’s crucial to understand the often-overlooked tax implications that can significantly impact your project’s profitability.

What You Need to Know About Tax Treatment for Subdivision Projects

          Property subdivision is an increasingly popular strategy in Australia’s growing urban landscape. However, many property owners and investors underestimate the tax liabilities involved, which can lead to unexpected costs and reduced returns.

• • Ordinary Income vs. Capital Gains Tax (CGT):
    If you buy property intending to subdivide and sell smaller lots quickly for profit, the Australian Taxation Office (ATO) usually treats the profit as ordinary income. This means no CGT discount applies, even if you hold the property for more than 12 months. You also cannot offset capital losses against these profits, which differs from standard CGT rules.
  • GST Implications:
    Sales of subdivided lots frequently trigger a Goods and Services Tax (GST) liability. GST can significantly reduce your after-tax profits and must be factored into your financial planning.
  • Intention and Scale Matter:
    The ATO assesses your primary intention and the scale of your activities. If subdivision is conducted as part of a business-like operation—including market research, professional advice, and business loans—the profits are treated as ordinary income and trading stock. Conversely, if you subdivide land from your main residence due to personal reasons (e.g., ill health, debt), and it’s a small-scale project, the sale may be treated as a capital transaction, eligible for CGT discount.
    

$20K Write-Off: What Business Owners Must Know Before June 30

Are You Ready to Maximise Your Tax Savings?

        Are you a business owner looking for smart ways to reduce your taxable income this financial year? Navigating tax deductions for business assets can be tricky—but with recent legislative changes, there’s now an incredible opportunity to accelerate your savings and improve your business cash flow. Understanding how to leverage these updates can put you in a stronger financial position and help you reinvest in your business sooner.

What Has Changed with the Instant Asset Write-Off?

       The Australian Government has confirmed a significant update to the instant asset write-off for the 2024-25 financial year. If your business has an annual turnover under $10 million, you can claim an immediate deduction for any depreciating asset costing less than $20,000 (excluding GST credits) purchased before 30 June 2025.

This is a substantial increase from previous thresholds, giving small and medium businesses more flexibility and incentive to invest in assets like machinery, office equipment, vehicles, or technology. Instead of depreciating these assets over several years, you can now write off their full cost immediately, helping to reduce your taxable income in the current financial year.

EOFY 2025 Tax Deductions Guide: How to Maximise Your Returns

Discover key strategies to reduce your tax bill, avoid ATO scrutiny, and make smarter year-end decisions before 30 June 2025.

As June 30 approaches, many Australian business owners are so focused on day-to-day operations that they miss critical opportunities to improve their position at tax time. The good news? With the right guidance and a few smart moves, you can optimise your deductions, avoid common traps, and walk into the new financial year in control.

Here’s what you need to know.

1. Super Contributions: One of the Easiest Wins

If building your super is part of your long-term plan, you may still be eligible to:

• • Use up your $30,000 concessional cap
    (Includes employer contributions, salary sacrifice, and personal deductible contributions.)
    
  • Catch up unused contributions from the past five years
    (If your total super balance was under $500,000 on 30 June 2024.)
  • Offset your capital gains
    (A large personal contribution can help reduce tax owed on asset sales.)
    
  • Claim a spouse super contribution tax offset
    (Worth up to $540 if their income is below $37,000.)

Reminder: To claim a deduction, you’ll need to lodge a Notice of Intent with your super fund and receive acknowledgement before lodging your tax return.

2. Charitable Giving That Gives Back

Donating to charity is not only rewarding — it’s deductible. But only if done right:

• • Only gifts of $2 or more to registered Deductible Gift Recipients (DGRs) are eligible.
    
  • No benefit must be received in return (e.g., no raffle tickets or dinners).
    
  • Consider public or private ancillary funds for long-term giving strategies.

Example: A $10,000 donation could save someone earning $180,000+ up to $4,500 in tax.

Do You Make Money Online? ATO Tax Rules for Aussie Influencers

The rise of platforms like OnlyFans, YouTube, and TikTok has created incredible opportunities for Australians to turn their creativity into income. Whether you’re a personal trainer, beauty influencer, gamer, or lifestyle vlogger, the ability to build a brand and earn from your audience is more accessible than ever.

But here’s the catch: as your earnings grow, so do your tax obligations—and the ATO is paying close attention.

If you’re monetising your content or receiving products and payments through digital platforms, it’s essential to understand your responsibilities as a business owner. Ignoring them could cost you more than just views.

Your Income Includes More Than Just Cash

The ATO considers any form of payment you receive as income—not just direct deposits to your bank account. That means:

• • Money earned through platforms like OnlyFans, YouTube, and TikTok
  • Sponsorship deals or appearance fees
  • Crypto payments for promotions or collaborations
  • Gifts and products—yes, even a $1,000 handbag counts as income

Even if you don’t “cash out” your earnings, you’re still required to report them once they’re credited to your account on the platform. Waiting to withdraw doesn’t defer your tax liability.

Hobby or Business? Why It Matters

The ATO makes a clear distinction between a hobby and a business—and that affects whether you need to declare income and register for tax.

You’re likely running a business if:

• • You post content regularly and promote yourself
  • You collaborate with brands or monetise through ads, merch, or subscriptions
  • You’ve invested in equipment, services, or marketing
  • You intend to make a profit
    

If you’re earning—even occasionally—it’s crucial to evaluate whether your activity qualifies as a business. Many creators are caught off guard, assuming it’s still a side hobby.

GST Applies If You Earn $75,000 or More

Once your annual income hits $75,000 or more, you must register for the Goods and Services Tax (GST) and lodge Business Activity Statements.

Some content creators are exempt depending on the location of their customers—for instance, supplying services to overseas subscribers may be GST-free. But that doesn’t mean you can ignore your reporting obligations.

If you’re nearing that threshold, don’t wait until you’re over it. Plan ahead to avoid penalties and missed claims.

What Can You Deduct?

If you’re running a business, you can claim deductions on expenses that relate directly to your income. These may include:

• • Video and photography equipment
  • Studio setup or lighting
  • Subscription software and editing tools
  • Internet and mobile usage (proportionate to business use)
  • Website costs, marketing, and branding services
  • Travel or accommodation for shoots or collaborations

2025 Budget Breakdown: What Everyday Australians Need to Know

The 2025 Federal Budget has landed—and while it might seem like something only accountants and politicians need to worry about, the truth is this: these changes will impact your household, your pay packet, and your future planning.

Whether you’re managing a family budget, saving for a home, or trying to stretch your income further, this year’s updates offer a mix of relief and opportunity. Here’s what you need to know—and how to get ahead.

Personal Income Tax Cuts – More Back in Your Pocket

Starting 1 July 2026, the Government will roll out a two-phase personal income tax cut aimed at low- and middle-income earners.

• • From 2026–27: The tax rate on income between $18,201–$45,000 drops from 16% to 15%
    
  • From 2027–28: It will reduce further to 14%
    

Potential savings:

• • Up to $268 in 2026–27
    
  • Up to $536 from 2027–28
    

What this means for you:

These tax cuts are designed to help ease cost-of-living pressures, allowing you to keep more of your earnings and build some breathing room into your budget.

Planning Tip: While the cuts won’t start for another year, it’s a good time to review your budgeting goals. Use the expected savings as a buffer for rising expenses or to accelerate savings on things like school fees, holidays, or unexpected costs.

Higher Medicare Levy Thresholds – Tax Relief for Low-Income Earners

From 1 July 2024, more Australians will be exempt from paying the Medicare levy thanks to increased income thresholds.

Why this matters:

If your income is near or below these thresholds, you’ll now be exempt from the 2% Medicare levy—putting more money back in your hands each year.

Real-World Impacts:

For a single parent earning just under $46,000, this could mean an annual tax saving of over $900, simply from falling below the new family threshold.

2027 Business Compliance Update: Non-Compete Ban, Wage-Fixing & Staff Mobility

From employee retention to protecting your competitive edge, non-compete clauses have long shaped how Australian businesses manage employment contracts. But a major shift is coming—and it could significantly impact how you attract, manage, and retain talent.

Starting in 2027, non-compete clauses will be banned for low and middle-income earners. This change is part of the Australian Government’s broader effort to boost job mobility, drive innovation, and support wage growth.

For business owners—particularly in fast-moving sectors like hospitality, construction, professional services, and manufacturing—this reform is more than a legal update. It’s a strategic pivot point. Acting early will help you reduce risk and build stronger teams.

What’s Changing and Why It Matters

In April 2024, Treasury released a consultation paper outlining how non-compete clauses restrict economic growth by limiting employee movement. In response, the Government confirmed that from 2027:

• • Non-compete clauses will be banned for workers earning under the Fair Work Act’s high-income threshold (currently $175,000).
  • Wage-fixing and ‘no-poach’ agreements will also be targeted under new competition laws, reducing the ability of businesses to restrict staff pay or movement without their knowledge.

This opens the door to increased competition for talent and greater employee choice—and it means business owners must adapt now to stay compliant and competitive.

Here’s how to prepare:

• • Audit all current employment agreements and identify clauses that may need to be revised.
  • Strengthen confidentiality agreements to protect sensitive information without restricting fair competition.
  • Invest in employee retention strategies such as career development, staff bonuses, and flexible work options.
  • Educate your HR and leadership teams on what’s changing and how to implement lawful contract updates.
  • Use culture as a retention tool—loyalty is earned, not enforced.

Revising your approach now will help you avoid disruption in 2027—and create a more resilient business along the way.

Turning Compliance into Opportunity

At Aero Accounting Group, we help business owners go beyond basic compliance. The businesses that thrive through change are those that see it as an opportunity—not just a legal hurdle.

For example, many hospitality businesses have historically relied on non-compete clauses to retain key team members like chefs and front-of-house staff. With the upcoming ban on these clauses, smart operators are shifting focus—replacing restrictions with strategies like non-disclosure agreements, team incentive programs, and leadership development.

The result? Reduced staff turnover and noticeable improvements in service delivery within just a few months.

The key lesson: Legal clauses don’t build loyalty—leadership and culture do.

Upcoming Ban on Non-Compete Clauses in Australia: What Business Owners Need to Know

Are Non-Compete Clauses Holding Your Business Back?

What every business owner needs to know about the upcoming ban—and how it could change the hiring game.

What’s Changing—and Why It Matters for You

Non-compete clauses have long been a standard feature in employment contracts, but for many businesses, these clauses are about to become a thing of the past. The 2025–26 Federal Budget has signaled a major shift—proposing a ban on non-compete clauses and “no-poach” agreements for low- and middle-income employees, with further consultation underway for high-income earners.

Here’s what you need to know:

The Current Landscape

• • Nearly 47% of Australian businesses use some form of restraint clause.
  • 20.8% apply non-compete clauses to at least some employees.
  • A staggering 68.2% of businesses use them for more than three-quarters of their staff.
  • In most states, non-competes are unenforceable unless reasonably necessary to protect legitimate business interests.
    

Why This Matters

• • These clauses limit job mobility, stifle innovation, and reduce access to skilled talent.
  • According to the Treasury, they can block the growth of both new and existing businesses.
  • The Productivity Commission estimates wage increases of up to 2.4% in industries heavily reliant on non-competes if they’re limited.

Personal Tax Cuts Ahead: What Every Business Owner Needs to Know

Are you ready for the changes coming to personal tax rates—and what they mean for your take-home pay and employee expectations?

With tax rates set to shift over the next few years, many Australian business owners are asking: How will this affect me, my team, and my cash flow planning? At Aero Accounting Group, we’re keeping you ahead of the curve—so you can lead with confidence, not confusion.

What’s Changing? Key Tax Updates from 2026 Onwards

Confirmed in the 2025–26 Federal Budget, the Australian Government is rolling out modest but meaningful personal income tax cuts designed to ease the cost-of-living pressure for working Australians.

Personal Income Tax Cuts

From 1 July 2026, the tax rate for incomes between $18,201 and $45,000 will:

• • • • • Drop from 16% to 15%
        • Then further reduce to 14% from 2027–28

Potential savings:

• • • • • Up to $268 in 2026–27
        • Up to $536 from 2027–28 onwards

Medicare Levy Threshold Increase

The 2% Medicare levy won’t apply until income exceeds a new, higher threshold—especially beneficial for low-income earners.

What’s great: 

This change is backdated to 1 July 2024, meaning you’ll already benefit when lodging your 2024–25 tax return.

Key Federal Budget 2025 Updates: Tax Cuts, Housing Support, and Digital Security for Businesses

The Australian government’s Federal Budget for 2025 has introduced several significant changes aimed at supporting individuals, businesses, and industries across the nation. Key areas of focus include tax cuts, housing incentives, and new digital security measures, all of which present valuable opportunities for businesses and individuals to benefit. Here’s an overview of the major updates and how they may affect you:

Tax Cuts & Cost-of-Living Relief

In a bid to ease cost-of-living pressures and stimulate economic growth, the government has introduced a series of tax adjustments that could result in significant savings for both individuals and businesses:

• • Tax Bracket Adjustments: The government has implemented changes to tax brackets that may lead to lower tax liabilities for individuals and business owners, providing much-needed relief in the face of rising living costs.

  • Small Business Deductions & Relief: Small businesses will see updates to their deduction options and a continuation of relief measures aimed at easing operational costs.

  • Low- and Middle-Income Tax Offset Increase: To help lower-income earners, the tax offset has been increased, which will provide additional financial relief to those feeling the pressure of inflation.

  • Superannuation Flexibility: New provisions are in place to offer greater flexibility around superannuation contributions, allowing for potential tax advantages.

These updates offer a range of opportunities to improve your financial standing. Now is an excellent time to plan ahead, and seeking professional advice can ensure that you take full advantage of the available tax benefits.

Housing & Construction Incentives

As the housing market continues to evolve, the Australian government has rolled out new initiatives designed to support homebuyers and the construction industry. These measures will play a crucial role in promoting affordability and increasing the supply of housing:

• • Construction Apprentice Grants: To address the skilled labour shortage in the construction industry, new financial support will be available for apprentices, ensuring a steady pipeline of talent in the sector.

  • First Home Buyer Incentives: The government is expanding its schemes to make it easier for first-time buyers to enter the property market, offering increased assistance and access to more affordable options.

  • Builder & Developer Support: Grants and incentives will be provided to builders and developers to stimulate the construction of new homes and bolster housing supply.

  • Stamp Duty Concessions: Eligible home buyers will benefit from reduced stamp duty, making it easier for them to purchase their first homes.

  • Low-Interest Loans for First Home Buyers: To further ease the financial burden, low-interest, government-backed loans will be available for those purchasing their first property.

For anyone considering entering the property market or working in the construction sector, these measures offer a range of opportunities for savings and support.

Recovery & Rebuild: Support After Cyclone Alfred

For those impacted by the devastating Cyclone Alfred, the government has unveiled a comprehensive recovery package to assist with rebuilding and recovery efforts:

• • Rebuilding Grants & Tax Breaks: Businesses and individuals in affected regions will have access to government grants and extended tax breaks to help them recover and rebuild.

  • Cash Flow Assistance: Immediate financial relief is being offered to those in need, helping with liquidity during this challenging time.

  • Additional Support for Key Sectors: Agriculture and tourism businesses in affected areas will receive additional support to help them get back on their feet.

  • Emergency Disaster Payments: Individuals who have lost income due to the disaster will be eligible for emergency payments to ease the financial burden.

If your business or personal situation has been affected by Cyclone Alfred, there are a range of resources available to help you navigate these support options and get back on track.

Digital & Cyber Security Support

As cyber threats become increasingly prevalent, the government is stepping up its support for small and medium-sized enterprises (SMEs) to help them protect themselves and their digital assets:

• • Cyber Security Grants: Financial grants will be available for small businesses that invest in cyber protection, helping to safeguard sensitive information and avoid costly breaches.

  • Tax Incentives for Digital Upgrades: Businesses that upgrade their digital systems will be eligible for tax incentives, encouraging investment in better IT infrastructure and cybersecurity measures.

  • Cyber Awareness Training: The government will fund cyber awareness programs, offering training to help businesses stay vigilant and prepared against emerging threats.

  • IT Infrastructure Funding for SMEs: Increased funding is available to support SMEs as they enhance their digital security and modernise their IT infrastructure.

With cyber threats growing more sophisticated, now is the ideal time for businesses to prioritize their digital security. Taking advantage of these government incentives and support programs can help strengthen your systems and protect your business from potential harm.

Need help figuring out what the changes mean for you?

The Federal Budget 2025 brings with it a wealth of opportunities for individuals and businesses alike. Whether you’re seeking advice on tax planning, assistance with navigating housing grants, or support in implementing digital security measures, Aero Accounting Group is here to help. Our expert team can guide you through these changes and help you make the most of the new financial incentives and support programs.

Contact us today to book a consultation and discuss how these updates will impact your business and personal finances.

Superannuation Guarantee Obligations: What Every Employer Needs to Know in 2024

Understanding your tax obligations as a business owner is crucial, and the Superannuation Guarantee (SG) is a key component. With the SG rate increasing to 11.5% from 1 July 2024, staying informed is essential to ensure you meet your obligations. At Aero Accounting Group, we’re here to help you navigate these requirements with ease, allowing you to focus on what matters most—running your business.

What is the Superannuation Guarantee (SG)?

The Superannuation Guarantee is a compulsory contribution that employers must make to their employees’ super funds, calculated at 11.5% of their ordinary time earnings (OTE) from July 2024. These contributions aren’t just a legal requirement; they support your employees’ future while offering your business a valuable tax deduction, provided payments are made on time.

Who is Eligible for SG?

As of 1 July 2022, every employee, regardless of earnings, is eligible for SG contributions. This includes workers on paid leave, such as annual or sick leave, and those in specific workers’ compensation circumstances. SG is also mandatory for employees over 18 years old, ncluding those who’ve reached retirement age, provided they work more than 30 hours a week.

While SG covers most ordinary earnings, it doesn’t apply to overtime or lump sums for unused leave. Knowing exactly what constitutes OTE helps you stay compliant and avoid errors.

Calculating SG Contributions

Accurate calculation is vital to meeting your SG obligations. The 11.5% rate applies to your employees’ OTE, which may include bonuses, allowances, fees for directors, or back pay for former employees. Using a super guarantee contributions calculator can simplify the process, helping ensure the correct amount is paid every time.

Missed or incorrect payments can lead to significant penalties, including the Superannuation Guarantee Charge (SGC), which is not tax deductible. Staying on top of payments not only avoids complications but also helps build trust within your team.

Avoiding Common SG Mistakes

Common pitfalls include missed deadlines, underpayments, or sending payments to the wrong fund. To avoid these issues, make sure you verify employee details—such as name, Tax File Number (TFN), and super fund account information—before processing payments. Ensuring that payments reach the correct fund on time is critical, as late contributions incur penalties and additional interest charges.

Remember, SG payments are due quarterly on 28 October, 28 January, 28 April, and 28 July. If you miss a deadline, you’ll need to submit an SGC statement to the Australian Taxation Office (ATO).

The Importance of a Default Super Fund

Employers must have a default super fund for employees who haven’t nominated their own. Choosing a reliable default fund ensures you meet legal requirements and helps streamline your super management, saving time and reducing administrative burden.

What is ‘Stapling’?

Stapling was introduced as part of super reforms, ensuring employees retain their existing super fund as they move between jobs. Before paying super into a default fund, you must check if your new employee has a stapled fund. This reform simplifies super management and reduces the number of duplicate accounts for employees.

Take the Next Step

At Aero Accounting Group, we know how challenging it can be to stay on top of superannuation and tax obligations. Our dedicated team is here to guide you through the process, ensuring compliance with current regulations while helping you manage your business efficiently.

Ready to simplify your superannuation and tax responsibilities? Get in touch with Aero Accounting Group today for expert solutions that fit your needs.