May 2026 Newsletter
Please click on the following link to view this month's newsletter for April 2026. We would like to highlight the following articles:-
Payday Super Requires Cash Flow Planning
The transition to payday super is just months away, and employers need to act now. From 1 July 2026, superannuation guarantee must be paid each payday and reach employees' funds within seven business days — ending the quarterly system that has operated for decades.
July 2026 presents unique cash flow pressures, as employers will face dual payment obligations. You will need to make your final quarterly super payment for the April to June period by 28 July, while simultaneously beginning payday super payments for July pay runs. Importantly, the late payment offset will not be available for this final quarterly payment, and missing the deadline triggers super guarantee charge obligations.
For tax deductibility, any super contributions must be received by the fund by 30 June 2026 to be deductible in the 2025–2026 income year. The ATO recommends reviewing your expected pay cycles for July now to understand cash flow impacts and consider setting aside additional funds to meet both obligations during the changeover. If cash flow permits, paying your June quarter super on or before your first July payday offers the smoothest transition.
Will the Proposed $1,000 Instant Tax Deduction Benefit You?
The Federal Government has released draft legislation for a new standard tax deduction that would allow eligible taxpayers to claim up to $1,000 in work-related expenses at tax time without receipts, replacing the current $300 no-receipt limit. If passed, the change would apply from the 2026–2027 financial year — meaning it won't affect your 2025–2026 return.
It's important to understand that a deduction doesn't put cash directly back in your pocket — it reduces the tax you pay. For someone on the 32.5% tax rate, a $1,000 deduction saves around $325. The Government estimates approximately 6.2 million taxpayers could benefit, with average savings of around $205.
However, the change may not benefit everyone. The ATO reports the average Australian claims $2,739 in work-related expenses, and the median claim is $1,338 — meaning many taxpayers already claim more than $1,000 and would be better off continuing to keep receipts and claim actual expenses. Those whose claims are typically close to $1,000, or who value simplified record-keeping, are likely to benefit most. As always, we recommend seeking advice at tax time to ensure you are maximising your legitimate deductions.
Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.
Important: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.