Year in Review: Festive Financial Highlights for 2025

As the holiday season is now another distant sparkle, let’s take a sleigh ride through some of our most clicked articles! Grab a cup of cheer and enjoy these highlights!

🎄 GST on Property Developments

Property developers faced significant GST considerations this year. The ATO can apply GST (up to 10%) to property sales when activities are deemed an enterprise rather than a one-off transaction. Key points:

• GST Registration & Credits: Register early to claim input tax credits on development costs

• Margin Scheme: Reduces GST payable on the property by taxing only the margin between purchase and sale price

• Change of Use: Switching from sale to rental can trigger GST repayment obligations

Planning ahead is the gift that keeps on giving—seek advice early for compliance and cost optimisation.  To read more: GST on Property Developments – HQB Accountants Auditors Advisors

🌟 Superannuation Access and Taxation

Superannuation rules continue to shape retirement planning:

• Access Ages:

• Reached Preservation age (60): Full access if retired; TTR income stream if working
• Age 65+: Full access regardless of employment

• Tax Components:

• Tax-free component: is always tax-free
• Taxed element: Tax-free at 60+ (and meet a condition of release between 60-65 years old)
• Untaxed element: Taxed on withdrawal, rates will vary

Waiting until age 60 or 65 can make your financial future merry and bright. To read more: Superannuation – HQB Accountants Auditors Advisors

🎅 Rental Property Income, Expenses & Cost Base

Declare all rental-related income—rent, bond money retained, insurance payouts, lease fees, short-term rental earnings, and non-cash benefits.

Deductible expenses include:

• Immediate deductions: loan interest, advertising, property management fees, council rates, land tax, repairs, insurance, utilities, and body corporate fees

• Capital deductions: depreciation on capital works and new assets

Repairs are usually deductible whereas improvements join the cost base for CGT. When selling, CGT is calculated using cost base or reduced cost base. To read more: Rental Property Income, Expenses, and Cost Base Explained – HQB Accountants Auditors Advisors

🎄 Contractor vs Employee

Classifying workers correctly is essential:

• Some indicators of employment may include control, payment for labour, and inability to delegate

• Misclassification risks such as liabilities for superannuation, workers’ compensation, payroll tax, and penalties

Clear agreements and verification are the best gifts for peace of mind. To read more: Contractor or Employee? – HQB Accountants Auditors Advisors

🎁 Bookkeeping for Small Businesses 

Good bookkeeping is like a well-wrapped present—it keeps everything neat and hassle-free.

• Benefits: financial clarity, tax compliance, time efficiency, and better budgeting

• Options: DIY, accounting software (e.g., Xero), or professional services

• Best practices: separate finances, update regularly, organise receipts digitally, reconcile monthly

To read more: Bookkeeping for Small Businesses – HQB Accountants Auditors Advisors

🏥 NSW Long Service Scheme for Community Services Industry

Commencing 1 July 2025, community services have been added to the NSW Long Service Scheme, allowing workers in this sector to bank portable long service leave:

• Who’s covered: Employers in 32 service types, such as disability support, community care, and Aboriginal & Torres Strait Islander services, must register via the Service NSW Business Bureau.

• Levy & reporting: A 1.7% levy on ordinary wages is payable quarterly, employer lodgements and payments are due by the 14th of the month following each quarter. The first three quarters have an extended deadline set to April 2026

• Employee rights: Workers retain pre-1 July 2025 leave balances, and the Long Service Corporation will administer leave accrued from 1 July 2025 onwards

• Contractors: Self-employed contractors in eligible roles can voluntarily join the scheme

This initiative ensures greater leave portability and consistency across community services roles—an early Christmas gift for your employees! To read more go to: NSW Long Service Corporation and Community Services Industry – HQB Accountants Auditors Advisors

May your holidays be joyful and your finances bright!

Happy Holidays from HQB!

– Breana Vinecombe

Posted 05.01.26

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas