Lead Financial Solutions

𝐎𝐩𝐞𝐧 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬

When a new client comes onboard, the first thing we do is ask open-ended questions to fully understand their circumstances, objectives, and any changes in their position.

Even for existing clients, if their role changes (for example, becoming a consultant), we revisit the discussion and ask open questions again. A change in structure or income source often creates new tax planning considerations and potential deductions.

It can be frustrating to see situations where former advisers/accountants have not taken this approach. Without asking the right open questions, it is easy to miss material deductions or structuring opportunities that could significantly impact the overall tax outcome.



Photo by Jose Vazquez

𝐀𝐓𝐎 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐓𝐢𝐦𝐢𝐧𝐠

ATO have adopted a stricter enforcement approach in relation to tax payments.

All tax payments must be received by the ATO on or before the due date. Payments received after the due date may attract late payment penalties and General Interest Charges (GIC).

We strongly recommend that taxpayers arrange payment at least two business days in advance to ensure the ATO receives the funds by the due date.

If payment is made on the due date, bank processing delays may result in the ATO receiving the funds after the due date, in which case penalties and GIC may apply.

Example:
If a tax bill is due on 10 February 2026, payment should be made no later than 8 February 2026 to ensure timely receipt by the ATO.



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𝐏𝐚𝐲𝐝𝐚𝐲 𝐒𝐮𝐩𝐞𝐫

The ATO has recently passed the Super Payday legislation. Effective 1 July 2026, employers will be required to pay employees’ Super Guarantee (SG) contributions at the same time as their wages.

Under the new rules, contributions must be received by the employee’s super fund within 7 business days of payday.

𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐞 – 𝐓𝐚𝐱 𝐎𝐛𝐥𝐢𝐠𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠
When doctors start work in private practice, it is essential to understand that their income is classified as pre-tax earnings. As a result, they must set aside at least 40% of their net income to meet their ongoing tax obligations.

Typically, after the lodgement of the first private practice tax return, the ATO will introduce the PAYG instalments system, requiring quarterly tax payments in advance. These instalments are credited toward the relevant financial year's final tax liability.

We often receive enquiries from new clients after they've received a large, unexpected tax bill including PAYG instalmemts - without having been properly advised by their accountant.

It is important to note that cash flow is often tight during the second and third financial years as doctors adjust to quarterly tax payments on top of paying off the previous year’s tax. With proper planning, however, this period can be managed effectively until income and obligations stabilise.



Photo by Hush Naidoo Jade