Topping the list is preparing for the introduction of and the Better Targeted Superannuation Concessions on 1 July 2026.

Payday Super is a change to when you make your employees’ Superannuation Guarantee (SG) payment. From 1 July 2026, the SG must be paid to an employee’s super fund on payday and be received by the fund within seven business days. If you are taking on new employees or paying to a new super fund, these funds must be received within 20 business days.ⁱ

Employers are considered to have made a contribution when the fund receives it, not when they pay it, so SMSFs need to have the necessary systems set up and in place from 1 July.

Who’s affected?

The ATO has warned SMSF trustees that Payday Super should not be ignored.

If you are a business owner and pay contributions for yourself or your employees into an SMSF, the fund will be receiving more contributions and there will be increased administration requirements to deal with payment timing and record keeping.

ATO deputy commissioner Emma Rosenzweig says SMSFs need to be prepared to receive contribution payments and data more frequently and faster than they currently do.ⁱⁱ

“This reform will almost certainly drive significant change for funds in the way contributions are received and the biggest mistake you can make is to think that Payday Super is just an employer problem,” she says.

The strict timing rules also come with tougher penalties and any delay may incur a Super Guarantee Charge, which is not tax deductible.

New clearing house partners

SMSFs also need to be prepared for closure of the ATO’s Small Business Superannuation Clearing House (SBSCH) from 1 July 2026.ⁱⁱⁱ

Employers currently using the SBSCH should take immediate action to find an alternative. You could check your accounting software and payroll packages, which may already include super functions, or look at the options offered by commercial clearing houses or other software providers.

Failing to prepare for the SBSCH closure means you may risk a fine.

SuperStream updates

Payday Super’s 1 July start date will also usher in changes to contributions messaging within the SuperStream system, the electronic standardised format employers must use to make super contributions.^iv

Changes include clearer error messaging and are designed to reduce employee contributions being rejected by the receiving super fund.

SMSF trustees need to ensure their internal systems are updated and ready to cope with the SuperStream changes, as timely and correct contribution payments are a key goal of the new rules.

According to Rosenzweig, one of the most common SMSF errors in this area is where the Electronic Service Address (ESA) was never activated with the provider or is no longer active.

This error means the employer receives a SuperStream error message but does not receive the matching refunded super contribution.

“SMSFs should ensure they have an active ESA that will receive SuperStream contribution data to continue receiving contributions from employers.”

Prepare for earlier contributions

The ATO is encouraging employers not to wait until 1 July to start making Payday Super contributions to help improve the transition.

SMSFs should also ensure they are able to receive contributions via the New Payments Platform (NPP), as employers who currently use direct debit are being encouraged to move to faster payment methods such as EFT and NPP.

With contributions flowing in more regularly – rather than quarterly – it may also be timely to reassess your SMSF’s investment strategy and portfolio allocation to ensure it remains suitable for the shift in contribution flows.

High balance tax changes

Another thing to be mindful of is from 1 July 2026, SMSFs will need to be prepared for the commencement of the government’s much delayed Better Targeted Superannuation Concessions.^v

These new rules are intended to reduce tax concessions for individuals with a Total Super Balance (TSB) above $3 million.

Under the new rules, people with higher super account balances will face a higher 30 per cent concessional tax rate on the proportion of earnings corresponding to their TSB between $3 million and $10 million.

A second tax threshold is being introduced for account balances above $10 million. The total concessional tax rate applying to the proportion of earnings corresponding to TSBs over $10 million will be 40 per cent.^vi

Both the $3 million and $10 million super balance thresholds will be indexed to maintain relativity with the Transfer Balance Cap (TBC). The earnings tax will only apply to ‘realised’ gains on assets, such as when interest is earned or a property is sold.^vii

SMSFs will be responsible for working out the member’s earnings, with the ATO requesting the necessary information after identifying someone subject to the tax.

With a higher TBC in place for 2025-26, SMSFs should consider the implications of the new tax regime prior to making any pre-30 June contributions and potentially breaching the indexed thresholds in future financial years.

If you need help preparing your SMSF for the upcoming changes, contact our office today.

i Spotlight on… Payday Super | Australian Taxation Office

ii SMSF Association National Conference address | Australian Taxation Office

iii The Small Business Superannuation Clearing House is closing | Australian Taxation Office

iv SuperStream for employers | Australian Taxation Office

v Better targeted superannuation concessions | Australian Taxation Office

vi Reforms to support low-income workers and build a stronger super system | Treasury.gov.au

vii Better Targeted Superannuation Concessions | ATO

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Manage your cash flow

If you’re self-employed you’re in good company. More than 62% of businesses in Australia are sole traders, with no employees. However, sole traders also have lower survival rates than larger businesses. Since 2019/20, more than half of new sole traders did not survive beyond three years. So planning for longevity means planning your money stuff.

Cash flow means the money coming in and going out of your business. Many self-employed people earn a good living but the flow of money is not always regular. Sometimes you’ll have more going out than coming in, and invoices might not get paid on time.

To help with your cash flow, have a business plan and a budget to help you look ahead and prepare for the unexpected. Keep a close eye on your income and expenses, and make tweaks along the way. For example, consider only making larger purchases once you’ve paid yourself and covered regular bills.

Keep some money aside for the unexpected, as being self-employed means you won’t have the benefit of paid holidays or sick leave. Regularly saving a little extra will help you manage during quiet periods, as well as funding a well-deserved break.

Separate your wages and business money

Make a clear division between ‘your money’ and what belongs to the business. Pay yourself a wage, and keep separate bank accounts so that business spending doesn’t get mixed up with your own.

This makes it clear what the business has earned and paid out. It’s also easier to see the financial state (the ‘profit and loss’) of the business at any time.

Nathan stays on top of a variable income

Nathan runs his own business as a landscaper.

Nathan’s income and expenses go up and down through the year. At first, he found this hard to manage. So he added up his monthly expenses to work out an amount to pay himself each month.

Next, he worked out his monthly cash flow by looking at what he earned across the whole year, then dividing it by 12 to get a monthly average. This tells him whether he’s earned extra or not.

When Nathan earns more than usual, he now puts the extra into savings to get him through the leaner months. This means he has funds to cover unexpected business costs, such as an urgent repair.

Think about tax early

It’s important to think about tax throughout the year, not only at tax time. Get advice from an accountant and plan for what’s coming.

Income tax

If you’re self-employed, you need to pay your own income tax.

Put money aside as you earn it, rather than waiting to receive a big tax bill. Open a savings account and transfer a percentage each time you get paid. Make this account for tax payments only, and off limits for other spending.

If your business grows, the Australian Taxation Office may require you to pay income tax in quarterly instalments. This is known as pay as you go (PAYG). Get an idea of how much you might have to pay with their PAYG instalment calculator.

Goods and services tax (GST)

Businesses that earn over $75,000 per year must register for GST. Once you’ve registered, you must lodge a regular Business Activity Statement (BAS) to report how much GST your business has collected and is claiming. This may be quarterly or annually.

You can use our GST calculator to calculate the amount of GST you have to charge your customers or pay your suppliers.

Use the GST calculator

Tax deductions

You may be able to claim some of your business costs against your income, meaning you pay less tax. Speak to your accountant and keep all your receipts in case you need them.

Make your super count

Superannuation may not be at the top of your list when you’re starting out by yourself. But getting on top of it early can help you save for the future. Super is a tax-efficient way of saving money to live on when you stop working.

Since you won’t get regular super contributions from an employer, it’s up to you to make them yourself. As well as investing for your future, you can generally claim your super contributions as a tax deduction.

Protect your income — and your business

Without sick leave, getting sick or injured can mean financial difficulties. Income protection insurance can help you pay your bills if you can’t work.

If you have a super fund, find out whether they offer income protection insurance as part of the package.

If you’re moving from employee to self-employed, check if this affects the insurance cover through your super. Insurance terms and conditions vary from fund to fund.

Consider other types of insurance that can protect you and your business. Like public liability insurance and workers compensation insurance.

Know the legal stuff

Setting yourself up properly – legally and financially – is key when you start a small business.

If you own and run your business as a director under a company structure, you will need to apply for a director ID.

Many small businesses form part of the value chain of larger businesses, who have reporting obligations to the Australian government related to climate change. If you deal with larger businesses, keep in mind that at times you may be asked for information about your business to help them fulfil their obligations.  

Get help if you need it

Help from a financial professional

If you need help with your business finances, consider seeking out a licensed financial professional.

• We can help with your BAS (business activity statement) and PAYG (Pay as you go) instalments.

• A bookkeeper can help keep track of day-to-day financial transactions.

• We can help you with tax and preparing your BAS.

Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/work-and-tax/self-employment
Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.
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While the proposal is yet to be legislated, several key changes have been introduced.

What’s changing?

The revised proposal excludes unrealised capital gains, meaning only realised gains including profits from the sale of assets like shares or property will be subject to this additional tax.

Another change is the introduction of a two-tiered system rather than a single flat tax rate:

• The total concessional tax rate applied to earnings on balances between $3 million and $10 million will increase from 15% to 30%.
• The total concessional tax rate applied to earnings on balances over $10 million will increase from 15% to 40%.

Importantly, under the revised proposal, both the $3 million and $10 million thresholds will be indexed over time. This means the thresholds will gradually rise, recognising that $3 million today won’t go as far in 10 or 20 years.

Finally, the government has delayed the proposed start date by one year until 1 July 2026.

How will it work?

Treasury have published a fact sheet about the proposed changes, which they’ve called Better Targeted Superannuation Concessions (BTSC), including detail about how the policy will work.

It includes two examples, which show how the changes would work in practice:

Example 1: Megan – both APRA-regulated fund and SMSF interests

Megan is 58 and she is both a member of an APRA-regulated fund and a member of an SMSF and has a total super balance of $4.5 million, of which $2.3 million is in an APRA fund and the remaining $2.2 million is in an SMSF.

In the 2026-27 financial year, Megan had $100,000 in realised earnings from her APRA fund and $200,000 in realised earnings from her SMSF (a total of $300,000).

The proportion of her $4.5 million balance above the $3 million threshold is 33.33%. The proportion above $10 million is nil.

Megan’s BTSC tax liability is therefore $15,000 (0.15 x 0.3333 x $300,000).

Example 2: Emma – SMSF member with over $10 million

Emma is 55 and a member of an SMSF and has a total super balance of $12.9 million at the end of the 2026-27 income year. That year she was attributed $840,000 of the fund’s realised earnings for the purposes of this tax.

The proportion of her balance above the $3 million threshold is 76.74% and the proportion of her balance above the $10 million threshold is 22.48%.

Emma’s BTSC tax liability is therefore $115,581 (0.15 x 0.7674 x $840,000 + 0.10 x 0.2248 x $840,000). Note the combined BTSC tax rate on earnings over $10 million is 25%.

Why these changes matter

It’s important to note that this legislation will need to pass Parliament before it can come into effect.

The government has also indicated it will undertake further consultation with the superannuation industry and other relevant stakeholders.

If implemented, these changes could have a significant impact on individuals with large superannuation balances and the way they plan for retirement.

If your super balance is approaching or exceeds these thresholds, it may be worth reviewing your situation and seeking financial advice.

How the LISTO is changing

At the same time, the government has announced a boost to the Low Income Superannuation Tax Offset (LISTO) to support lower-income earners.

From 1 July 2027, the LISTO income threshold will increase from $37,000 to $45,000, while the maximum payment will rise from $500 to $810.

The government says that changes could see the total number of Australians eligible for LISTO increasing to 3.1 million.

For more information about the LISTO, visit the ATO website.

Source: Vanguard October 2025 This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™

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Many small business owners are feeling the pinch after the tough years of COVID and high inflation, but receiving a business grant could be the helping hand you need.

If you know where to look, some extra dollars from the federal or your state/territory government could make all the difference between merely getting by and a flourishing business.

What grants are available?

Grants for small businesses are offered in a variety of areas and range from a few hundred dollars to around $10,000. Some also provide support with securing loans, business introductions, or mentoring services.

National grants tend to be in areas such as international trade, commercialisation of new products, or help for start-ups with significant potential. Examples include reimbursement for export promotions in international markets and upskilling rural medical practitioners.

State-level grants usually provide funding to businesses meeting the particular government’s development agenda and key industries, such as mining or agriculture. Some state governments provide funding for SME start-ups and hiring new employees.

Where do I look?

The best place to start searching for a business grant is GrantConnect, a free database listing all Australian Government grant opportunities currently open to applicants.

This online tool allows you to search for new grant opportunities, find out who has been awarded grants and check for upcoming grant programs.

Another important resource is the business.gov.au Grants and Programs Finder tool, which can help you find grants, funding and support from Australian Government agencies. Available grants and programs can be filtered by industry, type of support, and business structure and stage to make the process quick and easy.

Listings include free mental health coaching for small business owners, loans for Aboriginal and Torres Strait Islander owned small businesses, and financial incentives for hiring new staff.

The government’s Australian Small Business Advisory Services program delivers tailored advice on adopting digital tools to save time and money, and to help expand your business. Businesses with fewer than 20 full-time (or equivalent) employees, as well as sole traders are eligible.

Tech companies can check out the government’s Landing Pads program. This helps tech businesses expand into new markets by providing valuable market insights, expansion strategies, network introductions and venture capital contacts.

Each state and territory offers a range of grants to encourage local businesses. Grants vary between states, so check the online database listing the programs for your state/territory to see if any are suitable for your business.

The NSW Government for example, has a searchable Grants and Funding database highlighting financial incentives for businesses, such as payroll tax rebates for employing apprentices and trainees and the $1,000 SafeWork rebate.

In WA, the Grants Assistance and Programs Register includes both national and local grants, including the New Industries Fund: Innovation Booster Grant and regional Local Capability Fund.

For Victorian-based small businesses, check out the government’s Grants and Programs online database.

If you haven’t found a suitable grant or program, another potential source of information is Grants Hub. Although you need to register for access, you can try it out for 14 days for free.

Read the fine print

When ‘free’ money is up for grabs there is always fierce competition, so it’s important to put in a strong application.

The process will be different for each grant, making it essential to read all the information provided before getting started. Also, check that you meet the criteria, as applications will only be considered from businesses meeting the eligibility requirements.

It’s important to tailor your application to meet the grant requirements and check you prepare all the required documentation. This needs to be in the specified format.

Applying for a grant can be time-consuming, so start early and don’t leave it until the last minute to get your documentation together.

Where to start

There are private operators who offer to find business grants for a fee, but details of government grants are freely available on GrantConnect and Business.gov.au, or your state government’s website.

Small business and industry associations sometimes offer grants, so it may also be worth checking the relevant one for your business.

An easy way to find additional funding opportunities can also be to talk to us, as we can help you with government tax programs, such as the small business tax write‑off.

If the grant application process seems too time-consuming, consider hiring someone to help. While a consultant can write your application, grants are awarded on merit and using one will not give you any special access or consideration.

If you need help with finding or applying for a business grant, call our office today.

Are business grants worthwhile?

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Welcome to our June newsletter and, as the winter sets in and the end of the financial year approaches, it’s a good chance to spend some time tidying up and reviewing your finances.

Concerns that the Reserve Bank may lift interest rates this month, along with the drama over the US debt ceiling and the worry that the US Treasury may run out of cash, have affected local markets and the Australian dollar.

The dollar is at its lowest level in six months, at just under US65 cents, while the ASX200 ended the month nearly 3% down thanks also to weaker commodity prices. Energy and mining stocks led the falls. Brent Crude was down 7.5% for the month while iron ore prices hit a six-month low.

Inflation rose 6.8% in the 12 months to April, up from 6.3% in March and the number of housing approvals nosedived in April, down 8.1% after a 1.0% fall in March.

The rising prices have continued to dent consumer confidence. The ANZ-Roy Morgan Consumer Confidence survey has now spent 13 straight weeks at its lowest mark since the 1990-1991 recession. The survey reveals that only 7% of Australians expect good times ahead for the Australian economy in the next 12 months. With less money to go around, retail trade has plateaued over the past six months.

The latest unemployment figures show a slight increase to 3.7% in April and a slight decrease in the participation rate.

 

 

Get your SMSF shipshape for EOFY

If you have an SMSF, it’s essential to get your fund is in good shape and ready for June 30 and the annual audit.

It’s particularly important this year, because the ATO is focussed on fixing a number of issues when it comes to SMSFs. These include high rates of non-lodgment and problematic related party loans by SMSF members operating small businesses.

Check your paperwork is up-to-date

Review all the administrative responsibilities of your SMSF to identify any incomplete ones. These include updating the fund’s minutes to record all decisions and actions taken during the year, lodging any required Transfer Balance Account Reports (TBARs), and documenting decisions about benefit payments and withdrawals.

Although it’s easy to forget, SMSFs are required to keep all contact details, banking details and electronic service address up-to-date with the ATO.

Make contributions and payments early

If you want a super contribution counted in the 2022–23 financial year, ensure the fund’s bank account receives payment by 30 June.

Minimum pension payments to members also need to be made by 30 June to meet the annual payment rules and ensure the income stream doesn’t cease for income tax purposes.

Ensure contribution administration is ready

If your SMSF receives tax-effective super contributions for salary sacrifice arrangements, ensure the fund has all the necessary paperwork before the arrangements commences.

Check you have appropriate evidence (and trust deed authority) to verify any downsizer contributions. From 1 January 2023, SMSF members aged 55 and over are eligible to make a downsizer contribution of up to $300,000 ($600,000 for a couple).

Lodge your annual return on time

Non-lodgment of the annual return is a major red flag for the ATO, particularly for new SMSFs.

Ensure your annual return is prepared and lodged on time to avoid coming under the tax man’s microscope for potential illegal early access or non-compliance.

Consider implications of new tax rules

The planned new tax on member balances over $3 million could create significant issues for some SMSF members, so trustees should review the potential implications ahead of EOFY.

Funds with large, lumpy assets such as business real property should consider the implications and liquidity issues of members implementing strategies designed to limit the impact of the new tax.

Value the fund’s assets

SMSF rules require all fund assets to be valued at market value at year-end, including investments in unlisted companies or trusts, cryptocurrency, and collectible assets. The ATO is monitoring this area, so trustees should organise appropriate valuations as soon as possible.

Ensure valuations can be substantiated if there are audit queries and the process is undertaken in line with valuation guidelines.

Reassess your investment strategy

Review the fund’s investment strategy to ensure it covers all relevant areas, including whether investment asset ranges remain relevant to your investment objectives. Deviations from strategic asset ranges must be documented, together with intended actions to address them.

Review your NALE

Non-arm’s length expenses (NALE) and income are key interest areas for the ATO, so check the fund complies with the rules.

Pay particular attention to all SMSF transactions involving related parties and ensure their arm’s length nature can be fully substantiated.

Get your auditor onboard

Trustees are required to appoint their auditor at least 45 days before lodgment due date, so ensure you have this organised.

Prepare for earlier TBAR reporting

From 1 July 2023, SMSFs will be required to report TBARs more frequently. All TBAR events will need to be submitted 28 days after the quarter in which the event occurred, so ensure you have systems in place to meet the new requirement.

All TBAR events occurring in 2022-23 will need to be reported by 28 October 2023.

Ensure trustees have a director ID

SMSF with a corporate structure must ensure all trustees have a director ID number. Although this was a requirement from 1 November 2022, many SMSF trustees are yet to apply.

Holding a director ID is an essential part of the SMSF registration process and directors must apply via the Australian Business Registry Services website.

If you would like to discuss EOFY tasks for your SMSF or your personal super contributions, call our office today.

Tax Alert June 2023

Budget incentives and crackdowns on unpaid tax debts and rental deductions

Although this year’s Federal Budget was short on big changes when it came to tax, there still have still been some important developments in this area. Here are some of the latest developments in the world of tax.

Small business tax incentives and write-offs

The budget ushered in some valuable new tax incentives for small businesses, including halving the increase in quarterly tax instalments from 12 per cent to 6 per cent for both GST and income tax during 2023-24.

The government also introduced a bonus 20 per cent deduction for businesses with turnovers under $50 million when they spend on energy saving upgrades. Up to $100,000 of total expenditure will be eligible, with the maximum bonus tax deduction being $20,000 per business.

Although smaller than the previous year, the instant asset write-off continues in 2023-24 with up to $20,000 available for immediate deduction on eligible assets.

The planned third tranche of personal income tax cuts due to start next financial year also remained in place, while >the low and middle income tax offset was not extended.

Super changes for employers

Another significant tax change announced in the budget will affect employers. From 1 July 2026 employers will be required to pay their Super Guarantee (SG) obligations at the same time they pay employee salary and wages.

The ATO has received additional resources to help it detect unpaid super payments earlier.

Employers also need to remember the SG amount for employee super rises to 11 per cent from 1 July 2023.

Tax debt warnings sent out

The ATO is continuing to write to directors of companies with tax debts warning if the company hasn’t paid the amount owing or contacted it to make other arrangements, a director penalty notice  (DPN) may be issued.

DPNs are issued to current directors and anyone who was a director at the time the company failed to pay. They make directors personally liable for failure to meet pay-as-you-go withholding (PAYGW), GST and Super Guarantee Charge obligations.

Directors receiving these letters need to arrange payment of the overdue amount or enter into a payment plan.

Data-matching adds investment properties

Residential investment property loans (RIPL) are the latest target of the ATO’s increasingly wide-ranging data-matching program.

Data will be obtained from financial institutions including all the major banks, regional banks and building societies.

The information is being collected following the ATO’s identification of a tax gap of $1 billion for individuals in the 2020-21 financial year due to incorrect reporting of rental property expenses.

Self-education expenses under spotlight

The ATO is currently developing a new draft taxation ruling covering the deductibility of self-education expenses incurred by an employee or an individual carrying on a business.

The draft ruling will reflect the current rules in this area following repeal of several sections of the Income Tax Assessment Act and some new legal decisions. The new ruling is expected to be completed in late June.

Taxpayers claiming self-education expenses recently had the existing requirement to exclude the first $250 of deductions removed.

GST fraud enforcement continues

The clampdown on the biggest GST fraud in Australia’s history is continuing, with a raft of enforcement activity undertaken by the ATO-led Serious Financial Crime Taskforce in recent months.

Search warrants were executed in three states against individuals suspected of promoting the fraud. This follows previous compliance action against more than 53,000 people, with two individuals sentenced to jail time for their GST fraud activities.

Cyber safety checklist released

The ATO is again emphasising the importance of business cyber safety by releasing a new checklist for small businesses.

The tips include simple ideas for keeping business and client data safe from cybercriminals, such as turning on automatic updates and using multi-factor authentication when possible.

Resources for training staff on preventing, recognising, and reporting cyber incidents are available from the government’s Australian Cyber Security Centre.

The importance of getting enough ZZZZ’s

Who says we can’t achieve more if we sleep less? Science, that’s who!

To be fair, there are many successful people who credit their success to managing or indeed thriving, on a few hours’ sleep so they can get more done. Martha Stewart, the American media personality, sleeps around four hours a night, stating: “Sleep is not the most important thing.” While Thomas Edison, the inventor of the electric light, kept the lights on – rejecting the idea of sleeping at night for napping for 15 minutes every four hours.

The science of sleep

The idea that successful people don’t sleep is an odd one, when you consider the science.

Scientists have long theorised about why we need to sleep. The most respected theories see sleep consisting of restorative processes that occur when normal brain function is partially suspended, and brain activity suggests information is being “replayed” during certain stages of sleep to consolidate memory.

A good night’s sleep

Given that sleep is as critical to our survival as food and oxygen – how much sleep is enough?

While there may be some individuals who function ok on just a few hours’ sleep, it’s thought that most adults need between 6- and 9-hour’s sleep for optimal health and wellbeing. On average, we manage less than six.ⁱ

It looks like those successful people who “humble boast” about how little sleep they get, might be in fact jeopardising their success by missing the benefits of a good night’s sleep.ⁱⁱ

The impact of sleep deprivation

Sleep deprivation has a powerful impact on your thought processes so it’s quite ironic that there are those who credit their success in part to sleeping less than the recommended amount.

Sleep duration and quality impacts more than just the obvious things like your mood and clarity of thought. Inadequate sleep can compromise decision-making processes, impact creative thought and the retention of information.

Sleep is also critically important to our physical wellbeing. Sleep deficiency is linked to many chronic health problems, including heart disease, kidney disease, high blood pressure, diabetes, stroke, and obesity.

How do I get a better night sleep?

If you are one of those ‘too busy to sleep’ people, it might be time to prioritise restful sleep. And if you are tossing and turning at night there is a lot you can do to get a better night’s sleep.

To sleep well, the most important thing you can do is set the scene to easily drift off to sleep and then stay asleep. That means making sure your sleeping environment is comfortable, quiet, and dark. Exposure to light, particularly light from screens like your phone or computer at night-time can mess up the body’s production of a hormone called melatonin that helps us to fall asleep, and sleeping in a room that is not very dark is not conducive to quality sleep – so close those blinds and turn off those devices.

Setting yourself up for a good night sleep can also involve a combination of deep breathing, relaxation, and creative visualisation techniques. This infamous sleep ‘hack’ is used by the US military to help soldiers in the field get to sleep involving these practices is considered amazingly effective, if practiced regularly.ⁱⁱⁱ

Going to bed at the same time every night can also help establish good sleep habits and not eating too late at night, and avoiding stimulants like alcohol and caffeine late in the day will also improve your sleep quality.

Getting a good night’s sleep is one way to help you on your path to success. By making some easy tweaks to your routine you’ll be sleeping like a baby and feeling more alert and productive as a result. Goodnight and sleep well!

i https://pilot.com.au/co-pilot/6-hours-sleep
ii https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6281147/
iii https://www.huffingtonpost.co.uk/entry/military-sleep-method-asleep-anywhere_uk

This advice may not be suitable to you because contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

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A surplus for now but stormy seas ahead

Treasurer Jim Chalmers bills his 2023 Federal Budget as an economic strategy to help ease cost-of-living pressures.

To that end, he has delivered a modest but welcome package of cuts to healthcare, housing and energy costs as well as boosts to welfare payments for single parents and the unemployed.

Banking an unexpected bonus in increased tax revenue and rising commodity prices, the Albanese government has aimed to help the most disadvantaged while also looking ahead with new plans for renewable energy, defence and the arts.

But it has kept its spending under control to deliver a forecast $4.2 billion budget surplus – the first in 15 years.

The Treasurer sums up his second budget as “a plan for security, for prosperity, for growth”.

The big picture

While the first budget surplus in a decade and a half is to be celebrated, the joy will be short-lived. By next year’s budget, it’s expected there will be a return to small deficits for the next few years.

That’s because the global economy is slowing thanks to persistent inflation and higher interest rates. Aside from the pandemic and the 2007 Global Financial Crisis, the next two years are expected to be the weakest for global growth in more than two decades.

As a result, the government expects Australia’s economic growth to slow from 3.25 per cent in 2022-23 to just 1.5 per cent the following year, before recovering a little to 2.25 per cent.

In this environment, the treasurer continues to mark inflation as the government’s primary economic challenge. He says that is why the budget is “calibrated to alleviate inflationary pressures, not add to them”.

The good news is that the Reserve Bank says inflation is falling slightly faster than it had first forecast and has now passed its peak.ⁱ It is expected to be around 4.5 per cent by the end of the year, a long way from last year’s CPI rate of 7.8 per cent.ⁱⁱ

Easing the cost of living

The government’s $14.6 billion package of cost cuts aimed at helping some of those most affected by rising costs covers energy bills, health and medical services, and welfare payments.

There will be energy bill relief to around five million households and one million small businesses. From July 2023, eligible households will receive up to $500 and eligible small businesses up to $650.

The government will also introduce a number of energy saving programs for households including low-interest loans and funds for upgrades to social housing. And there will be access to better information on reducing energy bills.

Health and medical

Countering a major expense for many, the government is pouring in billions of dollars to ease health and medical costs and access to services.

It will spend an extra $3.5 billion to provide incentives to doctors to bulk bill Concession Card holders and children under 16. It’s expected that the increased bulk billing incentive will help around 11.6 million people.

The cost of medicines is also likely to change for many who suffer chronic health conditions. From 1 September 2023, some patients will be eligible to be prescribed two months’ worth of medicine at a time, instead of one month’s worth. It’s expected this change will cut the number of visits to GPs and pharmacies, and the government estimates at least six million people will see their bills for medicines reduced by half.

The government is also providing $2.2 billion over five years for new and amended listings to the PBS, including treatment for cystic fibrosis.

Meanwhile, to improve access to care and reduce the strain on hospitals, a further $358.5 million will be spent to open a further eight Urgent Care Clinics. The clinics will bulk bill and remain open for longer hours.

Welfare boost

Income support payments including JobSeeker, Austudy and Youth Allowance will rise by $40 a fortnight following a concerted campaign by lobby groups in the months leading up to the budget.

And, recognising the extra challenges faced by older people looking for work, those aged 55 and over and out of work for at least nine continuous months, will now receive the higher rate JobSeeker payment currently paid to those over 60. Around 52,000 people will receive the increase of $92.10 a fortnight.

There will be more support for eligible single parents from September 2023. They will receive the Parenting Payment until their youngest child turns 14 (currently up to eight years old). Those receiving the payment will also benefit from more generous earning arrangements compared to JobSeeker. Eligible single parents with one child will be able to earn an extra $569.10 per fortnight, plus an extra $24.60 per additional child, before their payment stops.

Housing assistance

While rents continue to climb sharply around the country, the government has provided only limited assistance to renters. Those receiving Commonwealth Rent Assistance will see a 15 per cent increase in their payments from 20 September 2023.

Eligibility for the Home Guarantee Scheme will be expanded beyond first home buyers to include any 2 eligible borrowers beyond married and de facto couples, and non-first home buyers who have not owned a property in Australia in the preceding 10 years.

The government’s other housing initiatives are medium to long term solutions to the housing crisis.

There are new tax incentives to encourage the construction of more build-to-rent developments. The government claims an extra 150,000 rental properties could be delivered as a result in ten years.

The government is also focusing on providing more affordable housing by supporting more lending to community housing providers for social and affordable housing projects.

Pay rise for aged care workers

Severe staff shortages in the aged care sector, largely been driven by low wages, may abate a little with the government’s commitment to fund a pay rise.

More than $11 billion has been allocated to support an interim 15 per cent increase in award wages.

Support for families

Childcare will be cheaper from July 10, when the government subsidy will increase to 90 per cent for families on a combined income of $80,000 or less.

For families earning over $80,000, the subsidy rate will taper down by 1 percentage point for every additional $5,000 of family income until the subsidy reaches 0 per cent for families earning $530,000.

A more flexible and generous Paid Parental Leave scheme will also be introduced in July. A new family income test of $350,000 per annum will see nearly 3,000 additional parents become eligible for the entitlement each year.

Superannuation

Superannuation is in the government’s sights and employers and individuals with larger balances will be affected.

The concessional tax for those with balances exceeding $3 million will increase from 1 July 2025 to 30 per cent. Earnings on balances below $3 million will continue to be taxed at the concessional rate of 15 per cent.

Meanwhile from 1 July 2026, employers will have to pay their employees’ super at the same time they pay their wages. The government says that in 2019-20, employers failed to pay $3.4 billion of super owing to their employees.

Looking ahead

The stormy global economic outlook will keep Australia on its toes for the next two years or so but the government has attempted both to support those who are particularly vulnerable now and keep an eye to the future with some bigger thinking.

Moving forward, the government wants to position Australia a “renewable energy superpower” with a new Net Zero Authority to help attract new clean energy industries and help workers in coal regions to find new jobs.ⁱⁱⁱ

The arts received a boost with almost $1 billion going to art galleries, museums, arts organisations and the film sector to help address “a decade of chronic underfunding”.^iv,v

And there is the much debated investment in defence – more than $30 billion over the next ten years. Treasurer Chalmers says that while we may have a lot “coming at us – we have a lot going for us too”.

Information in this article has been sourced from the Budget Speech 2023-24 and Federal Budget Support documents.

i RBA says inflation has passed its peak
ii https://www.rba.gov.au/publications/smp/2023/feb/economic-outlook.html
iii https://www.pm.gov.au/media/national-net-zero-authority
iv https://www.arts.gov.au/news/2023-24-federal-budget-revitalise-arts-sector
v https://minister.infrastructure.gov.au/burke/media-release/budget-2023-24-albanese-government-revives-australias-arts-and-culture

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