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Each week we share information, knowledge and resources that are specifically designed to your interests. To change your preferences or to unsubscribe to this series use the link below |
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Search and research Disclosure - We use AI as the primary tool to find and comment on the Topics in the Business Intelligence newsletter. Every topic is curated by a human before publication. |
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Technology and Innovation There is more information on Technology and Innovation at the Inspiring Business website link here
Payments for overseas software and cloud licences can now be taxed as royalties
The ATO has finalised its ruling on when payments for software and intellectual property rights are royalties (Taxation Ruling TR 2026/2), and released a draft compliance guideline (PCG 2026/D4) explaining how it will apply a risk-based approach to software distribution and licensing payments made to non-residents. The draft guideline is open for public consultation until 2 October 2026, so it is live throughout this coverage week. Many family businesses pay overseas suppliers for software licences, cloud platforms and subscriptions without realising these payments can carry an Australian royalty withholding tax obligation.
Implications - Where a business pays a non-resident for the right to use, distribute or modify software, part of that payment may be a royalty subject to withholding tax, and if the business does not withhold, it can be left liable for the shortfall. Next Step: The owner or finance person should list every recurring payment to an overseas software, cloud or platform provider, ask the accountant whether any fall within the new ruling, and confirm whether withholding or a tax-treaty position applies before the next payment run.
Read more about this topic at the ATO website link here Repeated in the Money and Markets section
Payroll and accounting systems must be set up to pay super every payday Under Payday Super, superannuation must reach an employee's fund within seven business days of each pay event, replacing the old quarterly cycle. The ATO has published transition guidance during the changeover, correcting common misunderstandings, including that the seven days are business days, not calendar days, and that the Small Business Superannuation Clearing House is closing. For most family businesses this is first a systems and process change, because payroll and accounting software now has to calculate, lodge and remit super on every payday. Implications - If payroll software or the clearing-house process is not configured for payday super, contributions can arrive late and trigger the superannuation guarantee charge. Next Step: Confirm with the payroll or accounting software provider that the system supports super on every payday, check the business is no longer relying on the closing clearing house, and run a test pay cycle to verify super is transmitted inside the seven-business-day window. Read more about this topic at the ATO website link here Read more about this topic at the Fair Work Ombudsman website link here
Repeated in the People and Culture section |
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SME Risk and Compliance There is more information on SME Risk and Compliance at the Inspiring Business website link here
Independent review of ATO Director Penalty Notices opens for submissions
The Tax Ombudsman has opened a public review of how the ATO administers Director Penalty Notices, the mechanism that makes company directors personally liable for unpaid PAYG withholding, GST and superannuation guarantee. Submissions are open, with information webinars during September (including one on 10 September) and a submission deadline of 5:00pm AEST on 29 September 2026. The review follows a sharp rise in enforcement: the ATO issued more than 84,000 Director Penalty Notices to directors of about 64,000 companies in 2024 to 2025, an increase of 136 per cent on the prior year. Implications - Any director of a family company is exposed to personal liability if the company falls behind on PAYG, GST or super, and a notice can convert a company debt into a personal one within 21 days. Next Step: The owner should confirm the company's PAYG, GST and super lodgements are current, ensure the ATO holds correct director contact details so a notice is never missed, and consider making a submission through a director or adviser who has dealt with a notice.
Read more about this topic at the ATO website link here
Repeated in the Family Business Succession and Exitability section Overlaps ATO debt-collection in the Money and Markets section
ATO signals firmer debt collection, and the cost of a tax debt keeps climbing
The ATO has continued to signal firmer action on collectable debt, backed by tools including Director Penalty Notices, garnishee notices and disclosure of business tax debts to credit-reporting bureaus. The general interest charge on unpaid tax remains above 11 per cent a year and, since 1 July 2025, is no longer tax deductible, which lifts the true cost of letting a debt run. This posture was reinforced in reporting during the week, tied to commentary ahead of the ATO's annual report. Implications - An ATO balance is now one of the more expensive and aggressively pursued liabilities a family business can hold, and inaction invites escalation. Next Step: Review the integrated client account balance, and if the business is behind, contact the ATO or the accountant to arrange a payment plan before the debt is referred, disclosed to credit bureaus, or converted to a personal liability through a Director Penalty Notice.
Read more about this topic at the ATO website link here
Repeated in the Money and Markets section |
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SME People and Culture There is more information on SME People and Culture at the Inspiring Business website link here
Superannuation must now be paid on every payday Under Payday Super, super for employees must reach their fund within seven business days of each pay event, replacing the quarterly cycle. The ATO issued transition guidance during the changeover period, correcting common misunderstandings, including that the seven days are business days and that the Small Business Superannuation Clearing House is closing.
Implications - Late super now accrues faster and more visibly, and unpaid super can expose directors personally through the superannuation guarantee charge. Next Step: confirm every employee's super is being paid within seven business days of each payday, check fund and member details are current to avoid failed payments, and diarise a review of the first few pay runs to catch errors early.
Read more about this topic at the ATO website link here
Read more about this topic at the Fair Work Ombudsman website link here
Repeated in the Technology and Innovation section
A working-from-home clause is coming to the Clerks Award The Fair Work Commission has decided to insert a dedicated working-from-home provision into the Clerks, Private Sector Award, and has released a draft determination setting out how such arrangements will operate. Submissions on the draft determination are due by 17 September 2026 before it is finalised. The Clerks Award covers administrative and clerical staff, which most family businesses employ.
Implications - Once finalised, the clause will set out an award framework for how any work-from-home arrangements for clerical staff are agreed and recorded, which employers will need to follow. Next Step: identify which staff are covered by the Clerks Award, review any current informal work-from-home arrangements against the coming clause, and prepare to document those arrangements in line with the final determination.
Read more about this topic at the Fair Work Commission website link here |
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Money and Markets There is more information on Money and Markets at the Inspiring Business website link here
Business conditions turn negative as costs outpace prices
The NAB Business Survey for August 2026, released on 8 September 2026, showed business conditions falling into negative territory, with confidence weak and profitability at a post-pandemic low. NAB noted that input cost growth has run ahead of the prices businesses can charge for close to six months, squeezing margins across most industries. Construction, manufacturing and other trade-exposed sectors were among the weakest.
Implications - For a family business the survey is a warning that margin, not just revenue, is where the pressure sits, and that cost increases can no longer be assumed to pass through to customers. Next Step: Re-check current job or product margins against actual input costs, identify the two or three largest cost increases, and decide where price adjustments or supplier renegotiation are needed before margins erode further.
Read more about this topic at the NAB website link here
The cost of an ATO debt keeps rising as collection hardens
The general interest charge on overdue tax remains above 11 per cent a year and, since 1 July 2025, is no longer tax deductible, so an unpaid ATO balance now compounds at a higher effective cost than many commercial facilities. The ATO has signalled it will keep taking firmer action where debt is collectable, using Director Penalty Notices, garnishees and credit-bureau disclosure.
Implications - Using an ATO balance as informal finance is now dearer than it looks and exposes the business to escalating collection. Next Step: Compare the effective cost of any ATO balance against the business's overdraft or equipment finance, and where the ATO balance is dearer, prioritise clearing it or refinancing it into a cheaper, deductible facility after speaking with the accountant.
Read more about this topic at the ATO website link here
Repeated in the SME Risk and Compliance section
Overseas software payments may carry an unbudgeted withholding tax cost
The ATO's finalised software royalty ruling (TR 2026/2) and draft compliance guideline (PCG 2026/D4, open for consultation until 2 October 2026) mean payments to overseas software, cloud and platform providers can attract Australian royalty withholding tax. Where withholding applies and the business has not deducted it, the business, not the overseas supplier, generally wears the cost.
Implications - This can add an unbudgeted tax cost, commonly up to 30 per cent and reduced under some tax treaties, to overseas software spend, along with a backward exposure on prior payments. Next Step: Ask the accountant to quantify any withholding exposure on current overseas software contracts and to build the net cost into the next technology budget and any renewal negotiations.
Read more about this topic at the ATO website link here
Repeated in the Technology and Innovation section
Extra tax on large super balances changes the after-tax return on money held in super
Division 296 applies an additional 15 per cent tax on the earnings attributable to an individual's superannuation balance above 3 million dollars. Reporting during the week highlighted uncertainty in how funds will attribute those earnings, meaning two members with similar balances could face different outcomes depending on their fund's method.
Implications - For an owner with a large balance, the effective tax rate on super earnings above the threshold rises, which changes the after-tax return on money held in super compared with other structures. Next Step: If the owner's total super approaches or exceeds 3 million dollars, ask the adviser to model the additional tax for the coming income year and to confirm how the fund will calculate the attributable earnings.
Read more about this topic at the Moore Australia website link here
Repeated in the Family Business Succession and Exitability section |
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Family Business Succession and Exitability There is more information on Money and Markets at the Inspiring Business website link here
Extra tax on large super balances changes how owners hold wealth for exit
Division 296 applies an additional 15 per cent tax on earnings attributable to a person's superannuation above 3 million dollars. Successful family business owners often hold significant wealth in a self-managed super fund, sometimes including the business premises. Reporting during the week flagged uncertainty in how funds will attribute earnings to the balance above the threshold. Implications - The measure changes the relative attractiveness of holding business real property and surplus wealth inside super as part of an exit or succession plan. Next Step: If the owner's super is near or above 3 million dollars, or the fund holds the business premises, ask the adviser to review whether the current holding structure still suits the exit timeline and to model the additional tax.
Read more about this topic at the Moore Australia website link here
Repeated in the Money and Markets section
Director penalty exposure is a sale-readiness and asset-protection issue The Tax Ombudsman's new review of ATO Director Penalty Notices is a reminder that unpaid PAYG, GST and superannuation guarantee can become a director's personal liability. With more than 84,000 notices issued in 2024 to 2025, this is a live risk for owners of family companies, particularly where the same people are both the directors and the main personal-asset holders.
Implications - A live or looming director penalty converts a company tax problem into personal exposure that can derail an exit, complicate buyer due diligence and threaten personal assets. Next Step: Before progressing any sale or succession step, confirm the company is current on PAYG, GST and super, resolve any outstanding balances, and separate personal asset protection from company risk with the adviser's help.
Read more about this topic at the Tax Ombudsman website link here |
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Disclaimer -
This newsletter is general information only. It reflects our views and experience working with family businesses, and it is not legal, financial, tax, or other professional advice. It does not take account of your particular circumstances, objectives, or needs.
Before acting on anything here, obtain your own independent advice relevant to your situation. While we take care with the content, we make no warranty that it is complete, accurate, or current, and to the extent permitted by law we accept no liability for any loss arising from reliance on it.
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