General News | DJ Smith Group

Two Cautionary Tales About Resources Important to Anyone Using a Domain Name or Website

Mon, 12 Oct 2026 00:00:00 +0000

This warning is new, but the reason for forgetting to renew a domain name isn’t.

1. Not renewing a domain name you want to keep

This warning is new, but the reason for forgetting to renew a domain name isn’t.

Today, a domain name is one of the most important digital assets a practice has, yet far too many practices still risk what happened in this story.

Domains are generally registered for periods of two to five years. During that time, people move on, email addresses are lost, IT support arrangements change, and contact details become outdated. The result is that domain renewal notices can fail to reach the person responsible for the domain.

If a domain expires and is subsequently deregistered, someone else can potentially take ownership of it.

In this case, a practice failed to renew its domain name on time. In the past, it was often possible to renew a domain after it had expired and everything would be OK. That is the part that has changed.

In this instance, GoDaddy took control of the domain after it mistakenly expired. That should still have been recoverable. But this time, the registrar would not allow the practice to renew the domain unless it paid almost $3,000 to ‘buy’ it back.

BEWARE. We have never seen this before. It appears to create a new potential income stream for domain registrars, so make sure you know where your domain records are held and keep a close eye on them.

2. Images used on a website without copyright authorisation

This has been an issue for the past two decades, but it has raised its ugly head again.

The issue concerns copyright ownership of images used on websites. Twice in the past few months, our clients have been contacted by a new player in this area called COPYTRACK.

On both occasions, COPYTRACK wanted our clients to pay several hundred dollars for alleged copyright infringement. While image copyright is important, in these particular cases, we believe the claims are most likely to be unfounded. Each time, the images in question were covered by our Getty Images subscription, which we maintain for our clients to help protect them from copyright infringement claims.

We know of others who have paid up to $2,500 per image to settle similar infringement claims.

In any case, always make sure your website developers are using images appropriately licensed for your use and that you have evidence of that authorisation. This can help protect you from unnecessary copyright claims.

AcctWeb/PlannerWeb

The post Two Cautionary Tales About Resources Important to Anyone Using a Domain Name or Website first appeared on DJ Smith Group.

Write a business plan

Fri, 09 Oct 2026 00:00:00 +0000

A written business plan is essential to help you start and grow your business.

A written business plan is essential to help you start and grow your business

Benefits of a business plan

Your business plan outlines:

your vision for the business
the actions that will help you achieve it

When you are starting out, your business plan can help you to secure financing and investment. But your business plan does more than tell others what your plans are. A good business plan can help you test the feasibility of your new business idea, set operational and financial objectives, and make sure your business is manageable and effective.

You will need to revisit your business plan regularly as your business evolves and the business environment changes. These changes could include increased competition, advances in technology or the expectations of your customers.

What to include in your business plan

A clearly written business plan should include:

the vision and direction of your business – where are you now and where do you want to be?
a SWOT (strengths, weaknesses, opportunities, threats) analysis – a good business plan won't only identify ways to make your business idea work, it can also help you identify reasons why your idea might not work so you can address them before you invest time and money
a force field analysis – for each issue identified in your SWOT analysis, identify the positives and negatives of each issue and the actions you will take to address the issue

Write your business plan

Whether your business is just starting out, you're looking to sustain or you're looking to grow, our guide to writing a business plan can help you clarify your goals, figure out your barriers and come up with a plan of action.

Create your one-page action plan

A one-page action plan is an overview of the current situation, where you want to be and what you need to do to get there. It's also a practical way to record the outcomes of the planning process.

A one-page action plan has the following elements:

'Now' analysis – Summarise your current situation and issues in 4 or 5 points.
'Where' analysis – What is your vision? What is your competitive advantage? What are your key objectives?
Strategies – What are the 3 or 4 key strategies you need to work on over the next 12 months? You can draw these from the SWOT analysis in your business plan.
Action plans – List about 3 or 4 of the most important actions to complete to help achieve your strategies. You can draw these from the analysis of your key issues and strategies in your business plan.
Timing – State when you aim to achieve the result and who is responsible for each task. These should be in priority order and are critical for accountability.

Get help in person

If you’re a first time business owner then you might need help working out how to action some of the steps you want to take. This might mean talking to an accountant, other business owners, a mentor, business coach or joining an industry group or your local chamber of commerce.

There's plenty of support available in Victoria to help you upskill and put you on the right track:

Try one of our mentoring services or workshops.
Get free advice and speak to subject matter experts with the Small Business Bus.

business.vic.gov.au

The post Write a business plan first appeared on DJ Smith Group.

Check out the largest castles by country

Mon, 28 Sep 2026 00:00:00 +0000

Check out the largest fortresses by country. Only existing fortresses that stand today are considered.

The post Check out the largest castles by country first appeared on DJ Smith Group.

More of the same with latest missive from Treasury

Tue, 22 Sep 2026 00:00:00 +0000

The initial legislation was rushed into law despite widespread concerns raised by advisers, professional bodies and taxpayers.

The initial legislation was rushed into law despite widespread concerns raised by advisers, professional bodies and taxpayers. There is little evidence that this feedback in any way influenced the final outcome. Against that backdrop, a further two-week consultation period for highly complex reforms again risks appearing as simply ‘box ticking’ rather than any genuine interest in considering stakeholder feedback.

More concerning, however, are the substantive policy outcomes.

The latest draft legislation appears capable of imposing a form of death tax in circumstances involving testamentary trusts, including arrangements that have long been regarded as legitimate and desirable estate planning structures. Widows, post-death estate trusts and child maintenance trusts following spousal separation all appear potentially exposed.

These are not aggressive tax planning arrangements. They are structures traditionally used to protect vulnerable beneficiaries, preserve family wealth and provide flexibility following death, incapacity or family breakdown.

If these outcomes are intentional, they represent a significant departure from decades of settled policy supporting testamentary trusts and family protection arrangements, without any explanation as to the perceived mischief to be addressed.

If the outcomes are unintended, they provide compelling evidence of the risks inherent in rushed legislative drafting undertaken without any meaningful engagement with those who advise taxpayers every day.

Either conclusion is troubling for advisers and taxpayers alike.

More details about five key concerns are set out below; with the disclaimer that it is hoped the interpretations gleaned from an initial review of the proposed changes are incorrect.

1. Widow tax concerns extend beyond direct property transfers

One of the most significant concerns appears to be the continued absence of any meaningful recognition of situations where a surviving spouse inherits wealth indirectly through a testamentary structure rather than by way of an outright transfer.

While public discussion has largely focused on direct transfers of assets between spouses, many modern estate plans deliberately utilise testamentary trusts to achieve outcomes including asset protection, succession flexibility, tax efficiency and protection of vulnerable beneficiaries. On a first reading, it remains unclear whether the proposed rules adequately address these arrangements.

If this concern is not addressed, families who have implemented testamentary trusts in accordance with long-standing professional advice may find themselves subject to outcomes that appear inconsistent with the policy objective of protecting surviving spouses following the death of a partner.

2. Broad anti-avoidance provisions create material uncertainty

A further concern arises from the breadth of the proposed definition of a “scheme” in circumstances involving testamentary trusts.

The drafting appears sufficiently expansive that it may permit the Commissioner to examine virtually any step taken by a willmaker to ensure assets are ultimately held through a testamentary trust structure.

While anti-avoidance provisions clearly have a legitimate role, the current drafting risks creating uncertainty for ordinary families undertaking entirely legitimate estate planning. There is a real question as to whether the provisions, as presently drafted, could effectively grant the ATO an extraordinarily broad discretion to challenge outcomes arising from testamentary trust arrangements that have traditionally been regarded as uncontroversial and fully compliant with both tax and succession law principles.

At a minimum, considerably greater certainty appears warranted if taxpayers are to have confidence that established succession planning strategies will continue to operate as intended.

3. Post-death testamentary trusts appear particularly vulnerable

Another area of concern relates to the treatment of post-death testamentary trust arrangements.

These structures arise not through tax evasion but because families are confronted with tragic and unanticipated events following the death of a parent leaving infant children. Their use is often driven by practical necessities that emerge after a parent has passed away rather than from any pre-meditated tax objective.

If that interpretation is correct, the reforms risk adversely affecting some of the most vulnerable families in the community at precisely the time they are dealing with bereavement and significant personal hardship.

4. Child maintenance trusts also appear at risk

Similarly, concerns arise regarding the apparent treatment of child maintenance trusts.

These structures generally arise in highly sensitive family law contexts following relationship breakdowns involving young children. Their primary purpose is ordinarily to provide long-term financial security and certainty for children rather than to achieve aggressive tax planning outcomes.

Any reform measure that inadvertently captures these types of trusts risks undermining established family law and succession planning mechanisms that have historically operated as important protective structures for vulnerable beneficiaries.

Given the limited policy discussion to date, it remains unclear whether this outcome reflects an unintended consequence of the drafting or a deliberate policy position. Either possibility warrants further scrutiny.

5. Consultation period raises questions about genuine industry engagement

Perhaps most concerning from a governance perspective is the consultation process itself.

The issues raised by the proposals are highly technical and sit at the intersection of tax law, succession law, trust law and family law. Many of the potential consequences may not become apparent without detailed review by practitioners, industry bodies and affected taxpayers.

In this context, the consultation period of only two weeks appears extraordinarily limited.

Meaningful consultation requires sufficient time for stakeholders to analyse the legislation, identify unintended consequences and develop constructive alternatives. The complexity and breadth of the proposed measures make it difficult to reconcile a two-week consultation window with a genuine intention to obtain comprehensive industry feedback.

The perception created is that consultation may be occurring as a matter of process rather than as a mechanism for informing policy development. Or more bluntly, that the changes need to be pushed through as quickly as possible to allow sufficient ‘lead time’ for new issues to occupy public conversation before the next federal election.

Conclusion

The concerns identified extend far beyond technical drafting issues. They raise fundamental questions about the treatment of surviving spouses, the future viability of testamentary trusts, the protection of minor children and the effectiveness of the consultation process itself.

At a minimum, there appears to be a compelling case for both an extended consultation period and a comprehensive reconsideration of several core aspects of the proposed framework before any legislation proceeds.

As with the proposed minimum tax on discretionary trusts, before adding yet another layer of complexity to an already convoluted area of tax law, Treasury should step back and undertake the comprehensive review that key stakeholders, being taxpayers and specialist advisers have been calling for over many years.

By: Matthew Burgess | 06 August 2026 | accountantsdaily.com.au

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How Do I Write Legally Compliant Terms and Conditions for My Business?

Tue, 15 Sep 2026 00:00:00 +0000

Terms and conditions bind your customers only where they actively accept them, so a tick box at checkout holds up where a footer link often does not.

Summary

Terms and conditions bind your customers only where they actively accept them, so a tick box at checkout holds up where a footer link often does not.

The Australian Consumer Law guarantees acceptable quality, fitness for purpose and due care and skill, and any term excluding those guarantees is void.

The unfair contract terms regime covers standard form contracts with consumers and with small businesses, and penalties against a corporation reach $50 million.

This article explains how Australian business leaders write terms and conditions that a court will enforce.

Tips for Businesses

Present your terms before checkout, and require customers to scroll through before ticking accept. Keep a record of each version and the date each customer agreed. State how you will notify customers of changes, and let customers terminate instead of accepting. Check your terms do not contradict your privacy policy or your advertising. Review your terms annually.

Terms and conditions form a legally binding contract between an Australian business and its customers, covering payment, liability and dispute resolution. Australian courts enforce terms only where the customer actively accepts them, so a tick box at checkout works where a link buried in a website footer often does not. The Australian Consumer Law also sets a floor no contract can lower. Consumer guarantees on acceptable quality, fitness for purpose and due care and skill apply regardless of what your terms say, and any term excluding them is void. The unfair contract terms regime goes further, and the ACCC can seek penalties reaching $50 million against a corporation that relies on an unfair term.

This article explains what makes terms and conditions enforceable in Australia, how the Australian Consumer Law limits what you can include, the mistakes that make terms unenforceable, and how the unfair contract terms regime applies to your small business customers.

What Are Terms and Conditions?

Terms and conditions are a legally binding contract between your business and your customers. They outline the rights and responsibilities of both parties when customers purchase your products or use your services. These terms govern everything from payment obligations to liability limitations and dispute resolution processes.

Your terms and conditions should be clear, fair, accessible and enforceable. Customers must be able to find and understand them before making a purchase or using your service.

Why Do You Need Terms and Conditions?

Terms and conditions protect your business in several ways. For example, they:

limit your liability for certain losses,

set out refund and return policies, and

establish how you handle disputes.

Without proper terms, you may face difficulties enforcing important elements of your business’ relationship with customers, such as payment or intellectual property.

The Australian Consumer Law (ACL) provides consumers with certain guaranteed rights that you and your business cannot contract out of. However, terms and conditions allow you to define other aspects of your business relationship within legal boundaries.

Key Elements That Make Terms and Conditions Legally Enforceable

Simply having terms and conditions is not enough. Courts will only enforce terms that meet specific legal requirements, such as:

1. Clear Acceptance by Customers

Customers must actively agree to your terms before they become binding. For online businesses, use a clickwrap agreement where customers tick a box confirming they accept your terms before completing a transaction. Avoid browsewrap agreements where terms are only linked in a website footer, as courts often find these unenforceable.

2. Reasonable Opportunity to Review

Customers must have a reasonable chance to read your terms before agreeing to them. Presenting lengthy terms seconds before purchase or hiding them in small print may render them unenforceable. Provide terms in an accessible format with readable font sizes and clear headings.

3. Clarity and Plain English Writing

Courts interpret ambiguous terms against the party that drafted them. Write your terms in plain English that your average customer can understand. Avoid unnecessary legal jargon and complex sentence structures.

Be specific about your customers’ obligations. Clearly set out what customers must do, by when, and how. This includes clear payment deadlines and cancellation processes. Vague obligations create room for disputes and make terms harder to enforce.

4. Compliance with the ACL

The Australian Consumer Law (ACL) automatically grants consumers a set of non-excludable guarantees. These include guarantees that

goods are of acceptable quality, fit for purpose, and match their description; and

services are provided with due care and skill and within a reasonable time.

Any term that attempts to exclude or limit these guarantees is void and unenforceable. Where a business breaches a consumer guarantee, the ACL entitles consumers to a range of remedies including repair, replacement, or refund for goods. For services, consumers are entitled to a resupply of services or compensation.

5. No Unfair Terms

Courts will not enforce terms that are unfair. The ACL prohibits unfair contract terms in standard form consumer contracts. Standard form consumer contracts are those drafted by a business where the customer has limited opportunity to negotiate the terms, for example website terms and conditions.

A term is unfair if it causes significant imbalance in parties’ rights, is not reasonably necessary to protect your business’ legitimate interests, and would cause detriment to your customers if enforced.

Examples include clauses allowing your business to change terms without notice to your customer, or terminate customer contracts without any reason. Courts can impose penalties for unfair contract terms, including the terms being unenforceable, or a pecuniary penalty for corporations that is the greater of:

$50,000,000;

if the Court can determine the direct or indirect financial gain a company obtained from breaching the law, 3 times that value; or

if the Court cannot determine the direct or indirect financial gain a company obtained from breaching the law, 30% of the corporation’s adjusted turnover during the breach turnover period for the contravention.

6. Unfair Contract Terms in Small Business Contracts

The unfair contract terms regime does not stop at consumer contracts. The regime also covers standard form contracts with small businesses. Your terms and conditions can therefore breach the law even where you only sell to other businesses.

A contract counts as a small business contract where the other party employs fewer than 100 people, or turns over less than $10 million a year. The old contract value threshold no longer applies under the Australian Consumer Law, so a large contract with a small counterparty still falls inside the regime.

The same unfairness test applies. A court asks whether the term creates a significant imbalance, whether your business needs the term to protect a legitimate interest, and whether the term would cause detriment. A term that fails that test is void, and the rest of the contract continues to bind both parties.

Suppliers commonly trip on automatic renewal clauses, unilateral price variation clauses and broad indemnities that run one way only. Review these clauses in your business to business terms, not only in your customer facing ones.

7. Proper Notice of Changes

If you reserve the right to change your terms, specify how you will notify customers. Common methods include email notification or posting updates on your website with reasonable notice periods. Customers should have the option to reject changes by terminating the contract.

8. Consistency With Other Documents

Your terms must align with other business documents like your privacy policy and marketing materials. Contradictions create ambiguity and may render terms unenforceable. If your advertising promises certain features, your terms cannot contradict these representations.

What Are Common Mistakes to Avoid?

Many businesses copy terms from competitors or use generic templates without customisation. This approach can leave gaps in terms your business might require or include irrelevant clauses. Your terms must reflect your specific business model and industry.

Do not attempt to exclude rights that ACL guarantees to consumers. Such clauses are void and may expose you to penalties.

Failing to update your terms regularly is another common error. As your business evolves or laws change, your terms must adapt. You should review them at least annually.

When Should You Seek Legal Advice?

Consider getting legal advice when drafting terms for the first time, entering new markets or offering new products. Complex businesses with significant risk exposure should always have lawyers review their terms.

If customers frequently dispute your terms or if you face regulatory scrutiny, professional review is essential. The cost of proper legal advice is typically far less than the cost of defending disputes arising from poorly drafted terms.

“Most of the terms and conditions I review fail on acceptance, not on drafting. A business spends real money getting the clauses right, then buries the link in the footer and cannot prove the customer ever agreed. Fix the checkout flow first, because the strongest clause in the world does nothing if the contract never formed.”

Key Takeaways

Well-drafted terms and conditions protect your business and set clear expectations for customers. They must comply with the Australian Consumer Law, be fair, and address your specific business needs. Keep your terms current and enforceable by ensuring customers actively agree to them, writing in plain English, maintaining proper records and completing regular reviews.

By: Briarne Mead, Lawyer | legalvision.com.au

The post How Do I Write Legally Compliant Terms and Conditions for My Business? first appeared on DJ Smith Group.

Paid parental leave super contributions have started

Sat, 12 Sep 2026 00:00:00 +0000

From July 2026, the new Paid Parental Leave Superannuation Contribution (PPLSC) has started.

From July 2026, the new Paid Parental Leave Superannuation Contribution (PPLSC) has started. This is a government-funded super payment for eligible parents who receive Paid Parental Leave (PLP) for a child born or adopted from 1 July 2025.

Under the scheme, the ATO pays the contribution into your super fund as a lump sum after the end of the financial year in which you received PLP (so expected to begin from the start of the 2026-2027 financial year.

The PPLSC is calculated by applying the superannuation guarantee rate of 12% to the PLP paid to you, and also includes a nominal interest component for delay in super payment to payment of PLP paid.

The contribution is taxed at 15% in the super fund and counts towards your concessional contributions cap. If you also make salary sacrifice or personal deductible contributions, the PPLSC may need to be considered in your contribution planning for the year the lump sum is received.

Given, the ATO will pay the contribution to the fund on file with the ATO, you may need to check personal and super details are up to date with the ATO, services Australia and your fund.

The post Paid parental leave super contributions have started first appeared on DJ Smith Group.

Steps to close a business

Wed, 09 Sep 2026 00:00:00 +0000

If the business is no longer profitable, and is unlikely to be profitable in the future, your best option may be to close your business.

1. Review your decision to close your business

The end goal of your business is to generate profit. If the business is no longer profitable, and is unlikely to be profitable in the future, your best option may be to close your business.

Before you do this, you may want to consider seeking help or advice from a business adviser to see if you can put your business back on track.

the Australian Tax Office website has a business viability assessment tool you can use to determine if your business is still financially viable.

2. Take care of your staff

After your business has closed down you may still have obligations to your employees. PAYG, Fringe Benefits Tax, superannuation and Eligible Termination Payment final payments often need to be made even after the doors have closed.

Your employer responsibilities will differ depending on whether a worker is an employee or independent contractor. For detailed instructions on calculating all final payments for employees and independent contractors, use information from the ATO's When a worker leaves page.

3. Communicate the closure

You should:

organise meetings with people who will be immediately affected by closing the business including:

business partners

bank managers

guarantors

suppliers

let your customers know about your closure. You can:

post a notice on your shop front

post a notice on your business's website

personally advise customers

advise customers through your business's social media channels

send out an email campaign

if you're closing a service business, it may be worthwhile speaking to your competitors with the aim of on-selling your client base, or arranging ongoing support for key clients

4. Bankruptcy and liquidation

For businesses in financial difficulty the last step in paying off creditors and dealing with debt is sometimes a declaration of bankruptcy or liquidation of business assets. The main difference between bankruptcy and liquidation is that a bankrupt is usually an individual or sole trader, and liquidation generally applies to a company in receivership.

The Commonwealth Government has recently changed Australia’s insolvency system. The changes introduced new processes from 1 January 2021. These changes aim to reduce complexity, time, and costs for small businesses. They include:

businesses can keep trading under control of its owners while a debt restructuring plan is developed

a new, simplified liquidation pathway suited for small businesses

streamlining of measures for the insolvency sector to meet the demand and needs of small businesses

Applying to become a bankrupt

The process begins by looking at how the individual's assets can be sold and the proceeds distributed to pay debts. If there are not sufficient assets to cover all debts to creditors, a split will be made on a percentage basis. Bankruptcy can be initiated by either a creditor or an individual debtor.

Becoming a bankrupt is not automatic. You or your professional adviser must apply formally to the Australian Financial Security Authority (AFSA), the government body responsible for the administration of bankruptcy and insolvency in Australia. It's a good idea to follow the steps below.

read AFSA's Prescribed Bankruptcy Information guide: you'll need a signed acknowledgement you've done this as part of your application

download AFSA forms to be completed, such as the debtor's petition

if you're a company read the Insolvency Information Sheets from the Australian Securities and Investments Commission (ASIC) website

inform the Australian Tax Office (ATO) when you have ceased trading

seek advice from an accountant or lawyer experienced in bankruptcy and insolvency matters.

Liquidation

Liquidation can happen to a company when its creditors (the main people the company owes money to) pass a vote to have the company liquidated. This follows a period when the company has been put into the hands of an administrator in an attempt to salvage the financial situation of the business. If one of the creditors applies to wind up the company, a liquidator can be appointed to manage the creditors' interests and deregister the company.

The liquidator has a responsibility to all creditors, not just those who applied to wind up the company. The liquidator's basic duties are:

collecting and selling the company's assets

investigating and reporting to creditors the reasons for company failure

determining liquidation costs and the order of payment

reporting to appropriate authorities and applying for deregistration of the company

Where there are not enough funds to pay all creditors, payment is usually divided proportionally among them, and in the order described above. Capital is only returned to shareholders if there are surplus funds. In all cases, the costs of the liquidator are met first.

It is the liquidator's job to get as much money as possible from the company, including suing any company directors through a creditor, if it can be shown they were trading when the company was insolvent (unable to pay its debts on time).

Read the insolvency for directors factsheet on the ASIC website.

5. Settle your legal obligations

You will need to:

visit the ASIC website to cancel your business name, or to deregister your company

make sure you’ve completed all your transactions with the Australian Taxation Office (see: ATO guidance on closing a business) and the Australian Business Register website before you cancel your tax registrations e.g. cancelling your ABN

make sure all your personal expenses are recorded separately from your business expenses

if you're leasing the premises, know your obligations if you close before the end of your lease.

go through your list of insurance policies and cancel them if no longer needed

make sure you disconnect utility services, cancel local government licences or permits and close business bank accounts

seek legal or accounting advice where required

6. Keep business records

Even after your business closes, you must keep your business records, including financial records, customer records and employee records.

the Australian Tax Office (ATO) also provides a record keeping evaluation tool for you to assess your business' record keeping and information management.

you can find out more about record keeping on the ATO website

The post Steps to close a business first appeared on DJ Smith Group.

How Our Diets have Changed.

Fri, 28 Aug 2026 00:00:00 +0000

Check out the this visualization, which tracks the evolution of dietary calorie intake from 1930 to 2026.

The post How Our Diets have Changed. first appeared on DJ Smith Group.

Taxpayer given 35% penalty for BAS recklessness

Tue, 25 Aug 2026 00:00:00 +0000

Following an application for a refund of nearly $94,000, the Administrative Review Tribunal has set aside an application for the remission of a 50 per cent penalty assessment.

A partnership consisting of four family members – Mr B, Ms H, Ms Z and Mr D, anonymised under the pseudonym BHZD – attempted to get a 50 per cent GST shortfall penalty remitted for the development of a townhouse on anonymised land at “10 X Street”, into 10A X Street and 10B X Street.

In her 23 July 2026 decision at the Administrative Review Tribunal, general member Joanne Dunne decided to set aside the remission of the penalty assessment of a shortfall penalty on the unpaid GST.

Following the development of 10B X Street, Mr B and Ms H moved in, and it became their residence. The tribunal heard that under their initial tax agent Mr N, they “sought a refund of the withheld GST amount of $93,568 on the basis that the property was Mr B and Ms H’s main residence”.

However, in a 2 June 2021 letter, the Commissioner of Taxation advised BHZD that GST was payable on the sale of 10B X Street.

“I do not accept that Mr B took all the steps he should have to check the GST treatment of 10A X Street before simply telling Mr G (the second accountant) what to do in the September 2021 BAS,” Dunne said.

“Mr B’s knowledge of the GST outcome for 10B X Street in January/February 2021. Mr B’s knowledge that the facts at 10A X Street were exactly the same as those for 10B X Street, yet he said the GST treatment was different.

“Mr B said in evidence that he “couldn’t believe” the “instruction” to tell the conveyancer not to apply GST to the sale of 10A X Street and to send the notice to the purchaser saying as much. Mr B said in cross-examination that he “absolutely challenged” the sale of 10A X Street with Mr N.”

The general member said that she was puzzled by this evidence.

“I took [it] to be trying to convince me that the Applicant did not know about the audit or, more particularly, he did not have a copy of all of the correspondence, including the Commissioner’s 2 June 2021 letter,” Dunne said.

“Mr B accepted in cross-examination by Mr Lee that the different GST treatment of 10A X Street and 10B X Street was ‘surprising’. That is putting it mildly. It defies common sense, as the facts relating to the two properties were exactly the same. Mr B knew this. The Applicant knew from February 2021 that no refund had arisen in relation to 10B X Street. Why would 10A X Street have a different GST treatment?”

In late 2023, the commissioner issued a penalty assessment which imposed a penalty on BHZD at 50 per cent for recklessness, totalling $54,965.50.

Dunne said she had concluded that Mr B misunderstood the GST position entirely.

On the basis that the taxpayer was unable to demonstrate that all relevant taxation information was provided to Mr G, the general member ruled that the 50 per cent shortfall penalty is to be set aside and replaced by a 35 per cent penalty.

The case citation: BHZD and Commissioner of Taxation (Taxation) [2026] ARTA 1376 (23 July 2026)

28 July 2026
Carlos Tse
accountantsdaily.com.au

The post Taxpayer given 35% penalty for BAS recklessness first appeared on DJ Smith Group.

SMEs warned as ATO ramps up tax debt collection

Sat, 22 Aug 2026 00:00:00 +0000

One insolvency specialist has emphasised the importance of small businesses engaging their accountants to stay on top of their tax debts in light of increased ATO scrutiny of the SME market.

The ATO is setting its sights on small business collectable debt following the Australian National Audit Office’s (ANAO) recommendation that the Tax Office establish volume targets to collect the $65 billion tax shortfall from the SME market (for 2024–25), with the insolvency specialist saying that too many business owners are putting their “head in the sand” with their tax debts.

The insolvency specialist said that these business owners are putting their personal finances at risk by not seeking advice until the ATO takes punitive action against them.

Speaking to Accountants Daily, Jirsch Sutherland partner and insolvency specialist Malcolm Howell (pictured) said: “The ATO has a responsibility to recover outstanding tax debts and this audit is another warning shot over the bow for small businesses.”

Howell noted that many small businesses do not realise that they are losing money.

“No business [advice] ever seems to have a proper cash flow [system], and that's a real problem. They don't realise they're actually losing money on a daily basis.”

“These people were letting the tax debt accumulate in the background while they pay those creditors that they need to pay to keep the business going on a day-to-day basis, and it might be a bit of a COVID mentality that … they still think the ATO is going to be approachable and negotiable on the tax,” he added.

Following the reduction of tax collection activities during COVID-19, the ATO recommenced further actions in 2023–24.

This included “garnishee actions, directions to pay, director penalty notices and disclosure of business tax debt actions,” ANAO said in its ATO Management of Small Business Collectable Debt 2024–25 report.

“[Some small business owners] bury their head in the sand, and they think that they can pay later, and later never comes,” Howell said.

He stressed that businesses often realise they are in trouble only after they receive a director penalty notice (DPN), and that just because the ATO has not sent any warnings yet does not mean you are in the clear with your tax debts.

“That doesn't mean that you're not on the radar, that just means that you haven't heard from them yet, and they'll strike at any moment.”

“If you're not seeing your accountant who stays on top of your tax debts and other debts, if you're not realising that [your tax debt is] creeping up, that's what hits you between the eyes … one day, it's going to come out of the woodwork, and you'll get that DPN when you least expect it.”

16 July 2026
Carlos Tse
accountantsdaily.com.au

The post SMEs warned as ATO ramps up tax debt collection first appeared on DJ Smith Group.