The big 1 July shake-up and how to stay ahead of it
Payday Super, Division 296, AML/CTF Tranche 2 and the phasing out of fuel relief all land at once. Here's your plain-English guide to what's changing and what to do before 30 June.
Four reforms, one start date
1 July 2026 is shaping up to be one of the most consequential dates on the calendar in years.
AML/CTF reforms
From 1 July 2026, accountants, lawyers, real estate agents and trust service providers become Reporting Entities under Australia's AML/CTF Act. If your business is caught by Tranche 2, the registration and compliance window is closing fast.
Payday Super
The most significant structural change to Australia's super system since 1992. Employers must pay super on the same day as wages - weekly, fortnightly or monthly rather than quarterly. Payroll software, clearing house settings and cash flow models all need updating before 30 June.
Division 296
An additional tax applies to earnings on super balances above $3 million from 1 July 2026. If your balance is anywhere near the threshold, now is the time to model the impact with your adviser.
Fuel relief ends
The temporary fuel excise has been extended at half rate for a further month. The half-price discount runs from July 1 through August 2, 2026, before ending. Industries dependent on transport need to plan for a cost step-up from 1 July.
Good years, lean years
How Farm Management Deposits can help even things out
Farming income rarely arrives in tidy, predictable amounts. A strong season can push you into a higher tax bracket, while the next year leaves cash flow tight. The Farm Management Deposits (FMD) scheme is designed for exactly this.
In short, FMDs let eligible primary producers set aside income in good years as a tax-deductible deposit, then draw it back as assessable income when times are leaner - a practical way to smooth both your cash flow and your tax across the cycle.
The rules worth knowing
- You need to be carrying on a primary production business.
- Keep non-primary-production income under $100,000 in the year you deposit.
- Hold no more than $800,000 in FMDs in total.
- There's an important distinction between deductible and non-deductible deposits that's easy to trip over.
Our latest blog, written by Alex Wolters, breaks it all down - eligibility, account requirements, and what to watch for: What Is the Farm Management Deposits (FMD) Scheme and Who Can Claim It?
Two construction deadlines that catch businesses out every year
If you run a building or construction business in NSW, two annual obligations have a habit of sneaking up - and getting either one wrong can mean penalties, interest, or unwanted ATO attention.
LSC return · due 31 July
The portable long service leave scheme, funded through levy payments to the Long Service Corporation.
TPAR · due 28 August
The Taxable Payments Annual Report, reporting contractor payments to the ATO.
Our latest blog, written by Abby Sands, covers employer obligations, common risk areas, and a simple pre–30 June review to keep everything reconciled before you lodge.
The fuel crisis and how it's affecting our industries
The government's emergency fuel excise cut, halving the rate to 20.6 cents per litre from 1 April to 30 June 2026, has been extended at half rate for a further month, ending August 2. This relief was a direct response to the oil supply shock flowing from conflict in the Middle East. For heavy vehicle operators, the Heavy Vehicle Road User Charge was also reduced to zero and then extended at a rate of 16.4 cents per litre for the same period (ending August 2).
Agriculture
The excise cut provides short-term relief on machinery, transport and logistics costs. But structural fuel price volatility - especially for diesel-dependent operations - requires medium-term thinking. Review your fuel and fertiliser exposure, input cost assumptions, and 2026–27 budgets now.
Construction
Businesses are navigating elevated materials costs and tightening margins. Workers are hit hard too, with apprentices facing fuel bills of over $100 a week. The CFMEU has stepped in with $100 monthly fuel vouchers for first- and second-year apprentices, warning that losing young tradies now means losing the workforce of tomorrow.
Healthcare
The crisis is pushing up practice overheads across transport, logistics and utilities, with freight strain affecting supply of essential consumables. Rural and remote communities are hardest hit. Central West practice owners should review supply arrangements and stress-test 2026–27 operating cost assumptions now.
What's brewing in the back office
Welcome to the team, Jayden and Candice!
We're excited to welcome two new faces to YBM. Jayden Pendleton joins us as a Financial Adviser, bringing fresh energy and expertise to our planning team - we know our clients are going to love working with him. And a warm welcome to Candice Mosch, who joins us at reception and has already made the front desk her own. YBM is growing, and we couldn't be more excited about the road ahead. Please join us in making Jayden and Candice feel right at home.
Walking the Balance Sheet - Coastrek
Congratulations to our Coastrek team - Nicola Brazier, Christine Whybrow, Sallyanne Shuttleworth and Jacqueline Kelleher - who walked 20km to raise over $2,500 for mental health, exceeding their goal by $500. Mental health in regional communities matters deeply to everyone at YBM. Thank you to all who donated and cheered the team along.
YBM wins Employer of Choice
We're thrilled to announce that YBM has won the Business NSW – Western NSW Business Awards in the Employer of Choice (21 Employees and Over) category. This win is a reflection of the culture, commitment and incredible people that make YBM such a great place to work. We are proud to be recognised alongside some outstanding businesses across the region.
Your EOFY action list
With 30 June fast approaching, these time-sensitive strategies apply to most business and individual tax positions. Always discuss your specific circumstances with your YBM adviser before acting.
Individuals & business owners
- Salary sacrifice super before 30 June to use remaining concessional cap space (up to $30,000 total, including employer SG).
- Check carry-forward concessional contribution eligibility - if your total super balance was below $500,000 at 30 June 2025, you may be able to contribute unused cap amounts from earlier years.
- With the income tax cut taking effect 1 July 2026 (small, but real), there may be value in deferring income into 2026–27 or accelerating deductions into 2025–26.
- Pay off ATO debt urgently - ATO interest (~11.38% p.a.) is no longer deductible and represents expensive money.
Business entities
- Write off bad debts before 30 June to crystallise the deduction in the current year.
- Pay employee super before 30 June - it must be paid, not just accrued, to be deductible in 2025–26.
- Document trust distribution resolutions before 30 June - these must be in writing before year end.
- Check BAS is current and fuel tax credit rates correctly reflect the 1 April 2026 temporary excise changes.
- Review and scrap obsolete plant and equipment to capture remaining depreciation deductions.
Deadline dashboard
The dates to circle this quarter
Not sure where to start?
The 1 July changes touch nearly every business and individual we work with. Let's map out what they mean for you.
Call 02 6362 1533 Email the teamThis newsletter is general information only and does not constitute financial, tax or legal advice. Please speak with your YBM adviser about your specific circumstances before acting.