Juggernaut Advisory

Federal Budget 2026 Webinar for Businesses, Investors, and Individuals

Team Juggernaut — Fri, 08 May 2026 03:09:58 +0000

Federal Budget 2026 webinar attendees will gain practical insights into tax reform, productivity measures and the key announcements affecting Australian businesses and households.

Treasurer Jim Chalmers has already signalled that this year’s Federal Budget will focus on productivity measures, potential tax reform, and substantial savings initiatives. With ongoing economic pressures affecting businesses and households, understanding the proposed changes has never been more important.

Join us for our Federal Budget Virtual Seminar on Thursday 14 May at 5:30pm, where our founding partner Peter Pepperell will unpack the key announcements from the Federal Budget and explain what they could mean for businesses, investors, and individuals. Our goal is to cut through the noise and give you clear, practical insights on what matters and what actions you may need to take.

Event Details:

Date: Thursday, 14 May
Time: 5:30 PM
Location: Microsoft Teams (link provided upon RSVP)
Host: Peter Pepperell
Presented by: Juggernaut Advisory

Given the potential significance of this Budget, we strongly recommend attending.

To attend, simply RSVP to admin@juggernautadvisory.com.au and we’ll email you the webinar link.
Given the potential significance of this Budget, we strongly recommend attending.

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Super Contribution Caps 2026 Increase for Concessional and Non Concessional Contributions

Team Juggernaut — Wed, 06 May 2026 03:20:54 +0000

Super contribution caps 2026 will increase from 1 July, creating new opportunities for Australians looking to grow retirement savings and reduce future tax.

Following the recent release of the December 2025 quarter average weekly ordinary times earnings (AWOTE) the annual concessional contribution (CC) cap will increase from $30,000 to $32,500 from 1 July 2026. The annual non-concessional contribution (NCC) cap will also increase to $130,000.

When considering contribution opportunities some individuals may have higher caps due to the carry forward CC rules or the NCC bring forward rules, while others with higher super balances may have a reduced or nil NCC cap. This will depend on your total superannuation balance (TSB) at the prior 30 June.

Concessional contributions

Concessional contributions are pre-tax contributions and can include compulsory superannuation guarantee (SG), voluntary salary sacrifice contributions and personal deductible contributions.

If your SG contributions are below your cap, you may be able to reduce your annual tax bill by making either salary sacrifice or personal deductible contributions. You may also have access to any unused concessional cap from the prior 5 years if your TSB was below $500,000 on the prior 30 June.

Non-concessional contributions

Non-concessional contributions are post-tax contributions. Although there typically isn’t an immediate tax saving on NCCs the superannuation accumulation (pre-retirement) tax rate of 15% is typically lower than many people’s marginal tax rate and the tax rate on superannuation earnings and drawdowns may be tax-free in retirement (subject to a pension transfer balance cap of $2,100,000 from 1 July 2026).

It can also be possible to bring forward 2 years of your NCC contribution cap and contribute 3 years at one time ($390,000 from 1 July 2026). However, the rules are complex and your TSB and any prior NCC contributions in the current and prior two financial years need to be considered.

There may be NCC opportunities this financial year if your TSB was below $2,000,000 on 30 June 2025.

If you would like to understand how superannuation contributions may reduce your current and future tax bill, please reach out to your tax or financial adviser.

If you have any questions, please feel free to contact our office.

The post Super Contribution Caps 2026 Increase for Concessional and Non Concessional Contributions appeared first on Juggernaut Advisory.

ATO Verify Call Feature Helps Protect Australians From Tax Scams

Team Juggernaut — Tue, 05 May 2026 03:12:04 +0000

ATO verify call feature gives taxpayers a fast and simple way to confirm genuine ATO phone calls and protect themselves from increasingly sophisticated scam activity.

As tax time approaches, so does the annual spike in scam calls pretending to be from the ATO. These calls are becoming increasingly convincing — and increasingly costly for those who get caught by them.

The ATO has now launched a simple, powerful solution: the ‘verify call’ feature in the free ATO app. Rolled out in early April 2026, it allows you to confirm — instantly and in real time — whether the person calling you is genuinely from the ATO.

No guesswork. No pressure. No risk.

How the new feature works

If you receive a call from someone claiming to be from the ATO, you can verify it in under 30 seconds:

Open the ATO app and log in.
Tap ‘Verify Call’ on the main screen.
Within moments, you’ll receive a clear notification confirming whether the call is genuine.

If you don’t receive a confirmation, hang up immediately — it’s almost certainly a scam.

This tool gives taxpayers a practical, real-time defence against impersonation scams, which are now one of the most common fraud attempts in Australia. In July 2025 alone, the ATO received nearly 7,500 impersonation scam reports, and numbers always surge between April and July.

Scammers don’t just waste your time — they can redirect refunds, access your superannuation, or steal personal information that takes months (and sometimes thousands of dollars) to fix. That’s why this new feature is such welcome relief.

Why this matters for individuals and businesses

Most scam calls succeed because they create urgency — “pay now”, “confirm your identity”, “your tax file number is compromised”. The verify call tool eliminates that pressure entirely. It lets you check the caller before you share any information.

Better still, it requires no special technology. If you have a smartphone and the ATO app installed, you’re ready to go. Setting it up takes just a couple of minutes.

Add one more layer of protection: Strengthen your myID

For maximum security, we strongly recommend ensuring your myID (digital identity) is set to the highest identity-strength level, known as ‘Strong’. This makes it significantly harder for anyone else to access your tax or super information online.

What you should do now

To get the benefits straight away:

Download or update the ATO app (available on Apple and Android).
Register your device within the app.
Check your myID settings in myGov and upgrade to ‘Strong’ if you haven’t already.
Practise using the verify call feature once, so you’re confident before tax time arrives.

These are simple steps that can prevent major financial and administrative headaches.

ATO Fuel Disruption Relief for Businesses Facing Higher Costs

Team Juggernaut — Mon, 04 May 2026 02:09:51 +0000

ATO fuel disruption relief measures are now available to help businesses manage higher operating costs, tax debts and cash flow pressure caused by fuel supply disruptions.

With global fuel supply chains still under strain from conflict in the Middle East, many Australian businesses are feeling the impact through higher operating costs, delayed deliveries and pressure on cash flow.

To help stabilise affected sectors, Treasurer Jim Chalmers and the ATO have announced a package designed to give businesses immediate breathing room and reduce administrative burden during a volatile period.

Importantly, this is not a broad stimulus program. The assistance is practical, temporary and delivered directly through the ATO. If your business has been affected by fuel supply issues—whether through higher input costs, transport delays or reduced margins—the ATO now has discretion to offer flexible, case-by-case support.

What relief is available?

1. More flexible payment plans

The ATO can help you spread existing tax debts over a manageable timeframe. This keeps cash in your business for wages, stock purchases, fleet costs and other essential operations.

2. Remission of interest and penalties

Where payment delays are linked to fuel disruptions, the ATO can cancel general interest charges (GIC) and late-payment penalties. This prevents a temporary cash-flow issue from escalating into a much larger debt.

3. Easier variation of PAYG instalments

If revenue has dropped due to increased fuel expenses or supply slowdowns, you can reduce your quarterly PAYG instalments so they reflect your current trading reality. This can create meaningful short-term cash savings.

4. Reduced compliance activity

For the most affected industries, the ATO is temporarily scaling back audits and review activity. This allows you to focus on operations, staffing and customer commitments rather than responding to information requests.

5. Temporary pause on debt recovery

Where appropriate, the ATO may pause recovery action while your business stabilises. This can be critical for businesses facing short-term pressures that are outside their control.

How to access the relief

You don’t have to deal with the ATO on your own. We can help with assessing your situation, determining which measures might apply and lodge the necessary submissions.

In many cases, a short explanation of how fuel disruptions have affected your business—supported by basic financial information—is enough to start the process.

At this stage the ATO fuel response payment plan is available by application until 30 June 2026.

Why this matters commercially

For businesses in transport, logistics, manufacturing, agriculture and retail, fuel volatility can quickly erode profitability. The Treasurer’s package is designed to improve short-term liquidity so you can:

maintain staffing and service levels
manage supplier payments
adjust pricing strategies
continue operating without the added stress of compounding tax liabilities.

Put simply, cash-flow relief now can help position your business to take advantage of improved conditions later.

Take action early

If your business has been feeling the strain of higher fuel costs or disrupted supply, reach out to our team as soon as possible. We can review your position, identify which forms of support apply and manage the ATO process from start to finish.

For official information, see the Treasurer’s announcement and ATO fuel response.

If you have any questions, please feel free to contact our office.

The post ATO Fuel Disruption Relief for Businesses Facing Higher Costs appeared first on Juggernaut Advisory.

EV Home Charging Rate Update What It Means for Employers and Taxpayers

Team Juggernaut — Fri, 01 May 2026 01:35:24 +0000

EV home charging rate changes from 2026 will affect FBT calculations, work-related car expense claims and salary packaging arrangements for electric vehicles.

The ATO has announced a significant update that will affect anyone using electric vehicles (EVs) or plug-in hybrid electric vehicles (PHEVs) for work or fleet purposes and where the vehicle is charged at the relevant individual’s home.

From 1 April 2026 (for FBT purposes) or from 1 July 2026 (for income tax purposes), the ATO’s standard home-charging electricity rate will increase from 4.20 cents per kilometre to 5.47 s

This rate acts as a simple, ATO-approved shortcut when your household electricity bill doesn’t separately show EV-charging usage. For example, instead of tracking kilowatt hours or installing specialised equipment, you can simply apply the cents-per-kilometre rate to the number of kilometres travelled by the vehicle to determine the cost of electricity used in the vehicle.

The update reflects rising electricity costs and gives both businesses and individuals a more realistic amount for home charging costs.

Employers

If you provide EVs or PHEVs to employees — whether through a novated lease, company vehicle, or salary packaging arrangement — the higher rate increases the electricity cost attributed to the vehicle. In practice, this can:

Initially increase the taxable value of the benefit when using the operating cost method.
Increase employee “recipient contributions”, which directly lowers your FBT bill.
Impact on the calculation of reportable fringe benefits amounts.

Individuals claiming work-related car expenses

If you use the logbook method to claim deductions, you can apply the new rate to the business-use portion of kilometres travelled from the start of the 2026–27 year onwards. Older years (back to 2022) continue to use the 4.20-cent rate.

How to make the most of the Guideline

A few basic records are all the ATO requires:

Odometer readings — ideally at the start and end of each FBT or income year.
A valid logbook showing business vs private travel (if using the operating cost/logbook method).
At least one electricity bill to demonstrate that you actually incur home electricity costs.
For PHEVs — keep petrol receipts. You must separately calculate the petrol component using the manufacturer’s hybrid-mode fuel consumption figure and apply the ATO home-charging rate only to the electric kilometres.

Tip: Many EVs now report the exact percentage of charging done at home vs public stations. Using this data makes claims more accurate and can potentially increase deductions.

An example

An employee owns their own EV and drives 25,000km in 2026–27 for work purposes.

Home-charging cost = 25,000 × 5.47c = $1,367.50 (up from $1,050).

That extra $317.50 can meaningfully reduce the employee’s taxable income for the 2026-27 income year.

What should you do now?

Ensure the existing lower rate is used when applying the FBT rules for the year ended 31 March 2026 and when calculating deductions for the income year that ends on 30 June 2026.
Make a note to use the updated rate for the current FBT year and the income year starting on 1 July 2026.

Electric vehicle adoption is accelerating, and the updated ATO rate will improve the tax outcomes for many taxpayers, while keeping compliance simple. If you operate a fleet, offer salary packaging, or claim car expenses personally, now is a great time to model the impact. Our team can help you run the numbers and ensure you receive every benefit you’re entitled to.

If you have any questions, please feel free to contact our office.

The post EV Home Charging Rate Update What It Means for Employers and Taxpayers appeared first on Juggernaut Advisory.

Super Changes Are Coming – Why You Should Act Now

Team Juggernaut — Thu, 23 Apr 2026 04:39:26 +0000

From 1 July 2026, super must be paid on or before each payday, replacing the current quarterly system.

At the same time, the ATO Small Business Super Clearing House (SBSCH) is being phased out.

These changes affect all employers, not just those using the SBSCH.

Why This Matters

This isn’t just a compliance update. It means:

Super will be paid more frequently
Cash leaves your business sooner
Payroll processes must be accurate and consistent
Errors need to be fixed quickly

The Risk of Waiting

Leaving this until closer to July can lead to:

Cashflow pressure
System issues
Payment delays or rejections

Starting early helps you avoid these risks.

What You Should Do Now

1. Understand the Change

Payday Super starts 1 July 2026
Payments must reach funds within 7 business days

2. Plan Ahead

Decide when you will transition
Review your cashflow

3. Get Your Systems Ready

Check employee super details are correct
Fix any errors in your current setup

4. Lock It In

Confirm your payroll system is ready
Transition to payday super payments
Pay March quarter super by 28 April

Take Action Early

The businesses that prepare now will avoid disruption later.

If you’d like help reviewing your setup or getting ready, get in touch with our team.

The ATO also has released a checklist to help.

The post Super Changes Are Coming – Why You Should Act Now appeared first on Juggernaut Advisory.

Business Sale Valuations Lessons from the Kilgour Case for CGT Planning

Team Juggernaut — Wed, 15 Apr 2026 05:58:53 +0000

Business sale valuations can significantly affect CGT outcomes, making the Kilgour case an important reminder for owners planning a sale, restructure or exit strategy.

When selling a business—or even a slice of one—how you value the assets involved can have a major impact on the tax bill. A recent Full Federal Court decision, Kilgour v Commissioner of Taxation [2025] FCAFC 183, offers timely guidance on how “market value” is really determined for capital gains tax (CGT) purposes.

When preparing for transactions, restructures or potential exit events, the case is a useful reminder: valuations must reflect real commercial conditions, not just theoretical models.

What Happened?

In 2016, three family trusts sold 100% of the shares in Punters Paradise Pty Ltd, an online wagering business, to News Corp for approximately $31 million. The ownership split was:

Pettett Trust – 60%
Kilgour Family Trust – 20%
Reuhl Family Trust – 20%

The sale was negotiated at arm’s length, involved extensive due diligence, and included a working-capital adjustment after completion.

The minority beneficiaries (20% holders) sought to use the small business CGT concessions, which in this case required the seller’s net assets to be below $6 million. To fall below the threshold, they argued their 20% minority interests should be heavily discounted in value—because a small holding is usually worth less on a standalone basis.

The ATO disagreed, saying each 20% parcel formed part of a coordinated 100% sale and should simply be valued as 20% of the final $31 million deal price.

The Court agreed with the ATO.

How the Court Approached Market Value

The Court applied the long-standing “willing buyer/willing seller” principles from Spencer v Commonwealth—but with a modern, commercial twist. Two practical messages emerge:

1. Real-world expectations matter more than rigid valuation dates

Although the tax rules in this area require looking at value “just before” signing the sale contract, the Court said you cannot ignore things that were reasonably predictable at that point. Here, the sale was essentially locked in through negotiations, so the final agreed price was the best evidence of market value.

Practical takeaway: If a purchaser is clearly willing to pay a premium—for control, synergies, strategic value or expansion opportunities—those factors will likely shape the valuation for tax purposes.

2. Actual deal terms beat theoretical discounts

The taxpayers tried to argue for a typical “minority discount”. However, the Court said the real commercial context matters more:

All shareholders intended to sell together.
The buyer wanted all the shares, not bits and pieces.
A coordinated, 100% sale typically lifts the value of each parcel.

Because of that, the hypothetical buyer would not insist on a discount. The minority interests effectively rode on the value of the full-stake sale.

Practical takeaway: When shareholders act collectively, the tax valuation of each interest can increase—sometimes significantly.

What This Means for Business Owners

Don’t undervalue your stake – If the buyer is pursuing synergies or control, your interest might be worth more than a textbook minority valuation suggests. Make sure your advisers consider the wider commercial picture.
Evidence is everything – Keep thorough records such as negotiations, emails, valuations, buyer motivations. These can be powerful in supporting your tax position and accessing concessions.
Plan CGT concession eligibility early – If you’re relying on the small business concessions, test different deal scenarios before signing any contracts or other paperwork, including a heads of agreement. Sometimes restructuring ownership or staging a sale can make a material difference, but integrity and anti-avoidance rules in the tax system still need to be considered carefully.
Align shareholder expectations – In family groups and private companies, minority owners often assume their shares will be valued as a standalone piece. Kilgour shows that courts will often look at the transaction as a whole—not each slice in isolation.

The Bottom Line

Kilgour reinforces that valuations for tax purposes work best when they reflect the real commercial world, not theoretical models. Before you sell, restructure or negotiate with a potential buyer, involve your accountant early. A well-supported valuation can mean the difference between accessing valuable CGT concessions—or missing out.

If you have any questions, please feel free to contact our office.

The post Business Sale Valuations Lessons from the Kilgour Case for CGT Planning appeared first on Juggernaut Advisory.

FBT Work Vehicles ATO Crackdown on Utes Cars and Employer Vehicle Use

Team Juggernaut — Thu, 09 Apr 2026 02:19:00 +0000

FBT work vehicles are under increasing ATO scrutiny, making it essential for employers to review private use, records and reporting before the next FBT deadline.

The ATO is turning up the heat on employers who provide work vehicles for private use. Sophisticated data-matching means assumptions and shortcuts can quickly lead to audits, penalties, interest charges—and even reputational damage. You can see the latest ATO FBT audit warning here: Misreporting FBT on personal use of work vehicles | Australian Taxation Office

If you provide vehicles to your team, whether to support fieldwork, boost morale, or offer a valuable perk, now is the time to ensure your FBT reporting is watertight. Here’s what the ATO is focusing on—and how to protect your business.

Don’t Assume Dual-Cab Utes Are Automatically Exempt

Dual-cab utes are popular in trades and construction, but despite popular opinion, they’re not automatically FBT-free.

Whether an FBT exemption applies can depend on the vehicle’s design and also how it is used across the FBT year.

Even if a ute is designed to carry a load of at least 1 tonne (ie, it is not classified as a car for FBT purposes) or it isn’t designed mainly to carry passengers (there is a specific formula used for this purpose) FBT could still be triggered if there is some private use of the ute.

The ATO has identified many cases where employers wrongly claimed full FBT exemptions, leading to back taxes plus interest.

The best way to handle ATO enquiries around the FBT exemption for commercial vehicles is to ensure that appropriate evidence is already in place to support the application of that exemption. While the FBT rules don’t specifically require formal logbooks when looking at this exemption, failing to keep records that are similar to a logbook can make it difficult to navigate ATO review or audit activities.

Accurately Apportion Private vs Business Use

If a full FBT exemption doesn’t apply then FBT is typically calculated on private use of work vehicles. You need to determine what portion of running costs—fuel, maintenance, depreciation—relates to personal trips. Ignoring this step can seem harmless but can quickly escalate during an audit.

Thorough record-keeping and proper apportioning can sometimes reduce your FBT liability even if the vehicle is used mainly for business purposes.

Remember that if a FBT liability is triggered it is the employer’s problem.

Lodging FBT Returns

Even if you think the FBT liability for the year might be small or immaterial, you might find that there is still an obligation to lodge an FBT return. The ATO’s analytics flag non-lodgers automatically. Penalties can reach up to 200% of the tax owed, plus interest.

Tip: Mark your calendar—FBT returns are due May 21 each year. Timely filing keeps your business compliant and avoids cash flow shocks.

Keep Reliable Logbooks and Records

A valid logbook tracks odometer readings, trip purposes, and business-use percentages over a 12-week period (renewable every five years). While not every scenario involving a motor vehicle specifically requires a valid logbook, failing to keep logbooks can sometimes lead to significant FBT liabilities that could otherwise have been avoided.

Efficiency tip: Digital logbook apps simplify tracking, save time, and reduce errors. Good records can also support deductions.

Why it Matters Commercially

Non-compliance isn’t just a numbers game. ATO audits divert time and energy from running your business, and ATO attention can affect your reputation with clients, partners, or lenders. Conversely, getting FBT right ensures you pay only what’s required, protects cash flow, and may even reveal tax efficiencies.

Next steps: Review your vehicle policies, update records, and ask us if you need help. We help businesses manage FBT with confidence—making compliance straightforward and stress-free.

Remember: assumptions can be costly, but a proactive approach protects your business, your people, and your peace of mind.

If you have any questions, please feel free to contact our office.

The post FBT Work Vehicles ATO Crackdown on Utes Cars and Employer Vehicle Use appeared first on Juggernaut Advisory.

Family Business Fringe Benefits Tax Wake Up Call for Owners and Directors

Team Juggernaut — Wed, 08 Apr 2026 00:00:00 +0000

Family business fringe benefits tax risks are under growing ATO scrutiny, making it essential to review perks provided to directors and family members before lodgement season.

As Fringe Benefits Tax (FBT) lodgement season approaches, family businesses should carefully review the perks they provide to working directors and family members. A high-profile case involving luxury vehicles provided to three brothers who run a large business empire through a discretionary trust highlights the complexities — and potential risks — of informal arrangements. While the case initially appeared to expand FBT exposure, the latest decision handed down by the Full Federal Court offers reassurance that not all benefits provided to working owners will automatically trigger FBT.

What may seem like harmless “owner entitlements” or beneficiary perks can still attract scrutiny from the Australian Taxation Office (ATO). However, the courts have emphasised the importance of substance, documentation, and the capacity in which benefits are provided.

The Background

Three brothers operate a substantial business involving petrol stations, convenience stores, fast food, tobacco outlets, and gift shops. They serve as shareholders, directors, and key decision-makers (with powers as appointors under the trust deed), working long hours in executive-style roles without drawing formal cash salaries or wages. Profits and benefits flow through the family discretionary trust (SFT Trust), of which their corporate trustee (SEPL Pty Ltd) is the trustee. The brothers and family members are beneficiaries.

The business provided them with exclusive access to over 40 luxury and high-performance vehicles (including Bentleys and Ferraris) for both business and personal use. Costs associated with personal use were debited to the matriarch’s beneficiary account and later cleared by trust distributions — a mechanism consistent with beneficiary entitlements rather than employment remuneration.

The ATO assessed FBT on the private use component of these car benefits, arguing they were fringe benefits provided to the brothers as “employees” in respect of their employment.

What the Court Decided

The Administrative Appeals Tribunal (AAT) initially ruled in favour of the taxpayer (Re BQKD and Commissioner of Taxation [2024] AATA 1796). It found that the brothers were not “employees” for FBT purposes and that, even on a hypothetical basis, the vehicle benefits were not provided “in respect of” any employment. The benefits were instead linked to their capacities as beneficiaries, proprietors, and controlling family members.

The Commissioner appealed to a single judge of the Federal Court, who in June 2025 (Commissioner of Taxation v SEPL Pty Ltd as trustee of the SFT Trust [2025] FCA 581) allowed the appeal. Justice O’Sullivan held that the brothers were employees under the broad FBT definitions (including via the hypothetical deeming rule in s 137 of the Fringe Benefits Tax Assessment Act 1986 (Cth) — FBTAA) and that the benefits were provided in respect of their employment.

The taxpayer then appealed to the Full Federal Court. On 27 March 2026, in SEPL Pty Ltd as trustee of the SFT Trust v Commissioner of Taxation [2026] FCAFC 36 (Perry, O’Callaghan and Thawley JJ), the Full Court unanimously allowed the appeal. The Full Federal Court basically restored the AAT’s decision.

Key findings:

Employee status: It was open to the AAT to conclude the brothers were not “employees” for FBT purposes. The definitions of “employee” and “salary or wages” ultimately draw on common law concepts of employment. The AAT properly considered factors such as the absence of employment contracts, no wages or leave entitlements, the presence of employed managers for operational roles, and the brothers’ control being referable to their proprietorial and governance roles rather than traditional employment.
“In respect of” employment: Even assuming (hypothetically) that the brothers were employees, it was open to the AAT to find there was no sufficient material connection between the benefits and any employment relationship. Here, access to the vehicles was not a substitute for salary or wages. The AAT correctly weighed competing explanations and found the benefits arose primarily from family/trust relationships, not employment.

Why This Matters for Your Business

The case underscores the ATO’s ongoing focus on dual-capacity individuals (e.g., directors who are also beneficiaries and active workers in trust structures). However, the Full Court’s reasoning provides important boundaries:

Informal perks for working family members in discretionary trusts are not automatically subject to FBT.
Substance and documentation matter: How benefits are provided, funded, and recorded (e.g., via trust distributions vs. remuneration) can help in determining the outcome.
Common law employment concepts remain relevant in interpreting FBT definitions.
Blending roles does not inevitably trigger FBT if the dominant characterisation is beneficiary-based.

Family businesses should still exercise caution. The ATO may continue to scrutinise similar arrangements, particularly where benefits appear to represent a substitute for remuneration or lack clear documentation. Superannuation contributions or executive titles can sometimes support employee characterisation, though they were not decisive here.

Practical Steps to Protect Your Business

Don’t wait for an audit—review your arrangements now:

Document clearly: If a benefit is a trust distribution to a beneficiary, record it via trustee resolutions. If it’s tied to work duties, treat it as a fringe benefit and calculate FBT accordingly. Or confirm why they fall outside the regime.
Consider FBT properly: Apply statutory formulas or operating cost methods for cars. Employee contributions (e.g., reimbursing personal use) can reduce or eliminate liability.
Consider exemptions/concessions: Minor benefits under $300, or salary packaging for EVs, might help.
Audit overlaps: We also need to check for Division 7A loan issues or deemed dividends if benefits flow through private companies.
Plan proactively: With ATO focus intensifying (as highlighted in recent compliance updates), model scenarios to minimise tax without losing commercial perks.

Remember that if the ATO discovers some unreported FBT liabilities then the business can also be exposed to penalties and interest.

The SEPL case ultimately favours the taxpayer and reinforces that FBT does not capture every benefit provided to working owners in family trust structures. However, every arrangement turns on its specific facts and evidence.

If your business provides vehicles, phones, travel, or other perks to family members actively involved in operations — especially without formal salaries — now is a good time to review. Our team can help analyse your structures, run FBT calculations or risk assessments, and implement practical fixes to protect profits while maintaining flexibility.

The law in this area is fact-sensitive and continues to evolve. Professional advice tailored to your circumstances is essential.

If you have any questions, please feel free to contact our office.

The post Family Business Fringe Benefits Tax Wake Up Call for Owners and Directors appeared first on Juggernaut Advisory.

Division 296 Tax: What the New Super Tax Means for Large Balances

Team Juggernaut — Tue, 07 Apr 2026 05:51:33 +0000

Division 296 tax is now law and will apply from 1 July 2026 to individuals with large superannuation balances above key thresholds.

The Better Targeted Superannuation Concessions measure (known as the Division 296 tax) is now law and takes effect from 1 July 2026. For those with large super balances, it’s important to understand what the new tax does, why it’s been introduced, and the practical steps you and your financial adviser should consider.

The Purpose of the Tax

Division 296 is designed to make superannuation tax concessions fairer and more sustainable. Rather than changing the way super is taxed for everyone, the law targets a small group of people who hold large super balances, ensuring they pay more tax on the portion of investment earnings that relate to those large balances.

Who it Applies to — Thresholds and Rates

This new measure, starting 1 July 2026 (first year is 2026-27), applies to an individual with total superannuation balances (TSBs) in excess of the following thresholds:

Large balance threshold: $3.0 million
Very large threshold: $10.0 million.

Both thresholds will be indexed in future years.

This will mean that the overall tax imposed on superannuation fund earnings will be as follows:

Division 296 TSB	Div 296 tax rate on earnings relating to this band	Total effective tax on those earnings
Up to $3,000,000	0%	15% (standard fund tax)
$3,000,001 to $10,000,000	15%	30% (15% + 15%)
Above $10,000,000	25%	40% (15% + 25%)

Certain people will be excluded from having this new tax levied upon them, notwithstanding that their TSB may exceed the threshold. Excluded persons include child recipients of death benefit pensions and individuals who have made structured settlement superannuation contributions for a personal injury compensation payment.

Further, where a person dies, they will no longer have a TSB. However, other than the first year of operation (ie, 2026-27), there can still be a Division 296 tax assessment in respect of the financial year in which they die, where they had a TSB of more than $3 million at the start of the year. Given superannuation is not an estate asset, this scenario should be considered as part of a review of an individual’s estate plan.

How the Tax Works

From an SMSF perspective, the fund will calculate its Division 296 earnings, which is based on its taxable income with adjustments for assessable contributions; net exempt income attributable to pensions; any non-arm’s length income (which is already taxed at 45%) and income relating to investments in a pooled superannuation trust. There may also be adjustments for any capital gains made from the disposal of fund assets, if the fund has made the relevant small-fund CGT election.

The calculated Division 296 superannuation earnings is then attributed to fund members using an attribution percentage calculated by an actuary. This information will be used by the ATO to assess the member’s Division 296 tax liability.

Division 296 tax is levied on the individual, not a superannuation fund. However, the tax can be paid either by the individual or they can elect for the amount to be deducted from their nominated superannuation interest.

Next Steps

If your total super balance is near—or already above—the thresholds, it is important that you contact your financial adviser to arrange tailored modelling and to discuss whether the small-fund CGT election is suitable. Early planning will help you manage cashflow, reporting and any actuarial requirements efficiently.

This will also be an opportunity to review the suitability and benefits of holding investment capital in a superannuation structure versus alternatives for amounts in excess of the large threshold.

If you have any questions, please feel free to contact our office.

The post Division 296 Tax: What the New Super Tax Means for Large Balances appeared first on Juggernaut Advisory.

Juggernaut Advisory

Federal Budget 2026 Webinar for Businesses, Investors, and Individuals

Event Details:

Super Contribution Caps 2026 Increase for Concessional and Non Concessional Contributions

Concessional contributions

Non-concessional contributions

ATO Verify Call Feature Helps Protect Australians From Tax Scams

How the new feature works

Why this matters for individuals and businesses

Add one more layer of protection: Strengthen your myID

What you should do now

We’re here to help

ATO Fuel Disruption Relief for Businesses Facing Higher Costs

What relief is available?

How to access the relief

Why this matters commercially

Take action early

EV Home Charging Rate Update What It Means for Employers and Taxpayers

Employers

Individuals claiming work-related car expenses

How to make the most of the Guideline

An example

What should you do now?

Super Changes Are Coming – Why You Should Act Now

Why This Matters

The Risk of Waiting

What You Should Do Now

1. Understand the Change

2. Plan Ahead

3. Get Your Systems Ready

4. Lock It In

Take Action Early

Business Sale Valuations Lessons from the Kilgour Case for CGT Planning

What Happened?

How the Court Approached Market Value

What This Means for Business Owners

The Bottom Line

FBT Work Vehicles ATO Crackdown on Utes Cars and Employer Vehicle Use

Don’t Assume Dual-Cab Utes Are Automatically Exempt

Accurately Apportion Private vs Business Use

Lodging FBT Returns

Keep Reliable Logbooks and Records

Why it Matters Commercially

Family Business Fringe Benefits Tax Wake Up Call for Owners and Directors

The Background

What the Court Decided

Why This Matters for Your Business

Practical Steps to Protect Your Business

Division 296 Tax: What the New Super Tax Means for Large Balances

The Purpose of the Tax

Who it Applies to — Thresholds and Rates

How the Tax Works

Next Steps