selinaabram, Author at Economos

Trust Account Audits in NSW: Compliance Without the Headache

We specialise in Real Estate Trust Account audits in NSW, helping agencies meet their statutory obligations with confidence, clarity, and minimal disruption.

30 June marks the end of the trust accounting period in NSW, making it a critical time to ensure your records are complete, compliant, and audit ready.

Trust Account Audit reports in NSW are then due by 30 September- being three months after the reporting date -so early preparation is key.

We operate in other states too, although they will sometimes have different due dates

What our trust account audit involves (in practice)

Our audits are detailed, structured, and aligned with NSW Fair Trading requirements, covering both full-year compliance and key risk areas at 30 June.

Monthly compliance review

We perform a comprehensive review across the financial year, including:

Review of all 12 end-of-month (EOM) trust account reports, ensuring completeness and consistency
Verification of Trust Bank reconciliations, confirming alignment between bank balances, ledgers, and cash book
Review of Trial balances and Cash Book reports for accuracy and internal integrity
Identification and processing of adjustments (where necessary) to resolve discrepancies and ensure compliance

Targeted June (year-end) testing

With 30 June being the reporting cut-off, we focus closely on transactions around this date:

Investigation of overdrawn ledgers, ensuring no client funds have been misapplied
Review of journals, confirming they are appropriate, authorised, and properly supported
Analysis of dormant balances, including whether appropriate action has been taken

Compliance and governance checks

We also ensure your broader obligations are met:

Confirm all EOM reports are signed and completed within required timeframes
Review any correspondence from NSW Fair Trading, ensuring issues raised have been addressed
Obtain bank audit certificates directly from financial institutions to independently verify trust balances

Reporting and lodgement

We manage the process through to completion:

Preparation of the Auditor’s Report in the prescribed format
Lodgement via the E-Audit Auditor Dashboard to meet the 30 September deadline
Provision of a Management Letter to the Licensee in Charge, outlining findings, risks, and practical recommendations

How we add value

We go beyond compliance, helping you run a stronger, more reliable trust account:

Efficient, well-organised process – minimal disruption to your operations
Clear, practical communication – issues explained in plain English
Proactive risk identification – we highlight issues early and help resolve them
Regulatory confidence – audit-ready and Fair Trading compliant
Ongoing support – guidance when you require it, not just at audit time

Why work with us

Specialist focus on NSW real estate trust account audits
Strong working knowledge of Property and Stock Agents legislation and Fair Trading expectations
Experience across single and multi-office agencies
Reliable, responsive, and commercially practical approach

Get in touch

With 30 June marking the end of the trust accounting period and audit reports due by 30 September, now is the time to ensure your records are in order and your audit is handled efficiently.

If you are looking for a trust auditor, please reach out we’d be happy to assist.

Your EOFY Checklist: What Every Business Should Do Before 30 June

The end of the financial year is one of the most important dates on the Australian business calendar – and it has a habit of arriving faster than expected. Whether you run a growing SME, a property portfolio, a medical practice, or an Australian subsidiary of a global business, the actions you take (or don’t take) in the weeks leading up to 30 June can have a significant impact on your tax position, cash flow, and compliance obligations for the year ahead.

This checklist covers the key areas every business should review before the EOFY deadline.

Review Your Income and Deductions

Before 30 June, take stock of your income and expenses for the financial year.

Bring forward deductible expenses where possible. If you’re planning to purchase equipment, software, or business supplies, doing so before 30 June means you can claim the deduction in the current financial year.
Defer income where appropriate and legally permissible – for example, if you’re invoicing a client for a project that won’t be completed until July, consider whether it makes sense to delay billing until the new financial year.
Write off bad debts before 30 June. If you have invoices that are genuinely unrecoverable, formally writing them off before year-end allows you to claim a deduction.

Maximise Superannuation Contributions

Superannuation is one of the most effective and widely used tax planning strategies available to Australian business owners and individuals.

Employer super contributions must be paid and received by your employees’ super funds by 30 June to be deductible in the current financial year. Note that contributions must actually clear -not just be paid- so don’t leave this until the last day.
Personal concessional contributions: If you’re a business owner or sole trader, consider making additional concessional (pre-tax) contributions up to the $30,000 cap (for the 2024–25 financial year). These are tax-deductible and taxed at only 15% inside the fund rather than at your marginal tax rate.
Catch-up contributions: If your super balance is below $500,000, you may be eligible to carry forward unused concessional contribution caps from previous years. This can be a powerful strategy if your income has increased significantly.

Instant Asset Write-Off and Depreciation

The Federal Government’s instant asset write-off provisions allow eligible businesses to immediately deduct the full cost of qualifying assets, rather than depreciating them over several years.

Confirm the current threshold and eligibility criteria with your accountant, as these have changed frequently in recent years.
Consider whether any planned capital expenditure – new equipment, vehicles, technology – can be brought forward to before 30 June.
Review your existing asset register. Assets that are obsolete, damaged, or scrapped may be written off to reduce your taxable income.

Review Your Business Structure

EOFY is a good time to step back and assess whether your current business structure is still serving you well – particularly if your business has grown, diversified, or taken on new investors or partners.

Are your trading entities, trusts, and holding companies structured in a tax-efficient way?
If you operate through a trust, have you documented how trust income will be distributed before 30 June? Trust distribution resolutions typically need to be made by 30 June to be effective for that financial year.
Have there been changes to your personal circumstances – marriage, separation, new business partners – that may affect your structure?

Reconcile Accounts and Tidy Your Books

Clean financial records aren’t just important for your accountant – they’re essential for making good business decisions throughout the year.

Reconcile all bank accounts, credit cards, and loan accounts.
Ensure all sales invoices and purchase bills are entered and up to date.
Review your accounts receivable and accounts payable.
Confirm that your payroll records are accurate and that all superannuation guarantee obligations are up to date.
If you use cloud accounting software like Xero, run a pre-EOFY reconciliation report and address any discrepancies.

Stocktake

If your business holds inventory, you are required to conduct a stocktake at 30 June.

Count all stock on hand and compare it against your accounting records.
Identify any obsolete, damaged, or unsellable stock – you may be entitled to write this down to its net realisable value, reducing your taxable income.
Document the stocktake process in case of an ATO audit.

Payroll and Single Touch Payroll (STP) Obligations

EOFY has significant payroll compliance requirements.

Ensure all pay runs for the financial year are finalised in your STP-enabled payroll system.
Complete your STP finalisation by 14 July (for most employers). This allows your employees to access their income statement in myGov.
Confirm that all superannuation guarantee payments have been made and are on time. The SGC (Superannuation Guarantee Charge) applies if contributions are late – and it is not tax deductible.
Review any reportable fringe benefits or employer super contributions that may need to be reflected on employee income statements.

Review Fringe Benefits Tax (FBT)

The FBT year runs from 1 April to 31 March, so the 2024–25 FBT return would already be due – but it’s worth reviewing any benefits provided to employees, including:

Motor vehicles (including novated leases)
Meal entertainment
Laptops, phones, and other devices
Car parking

Ensure records are in order and that any FBT liability has been correctly assessed and lodged.

Capital Gains Tax (CGT) Planning

If you’ve sold – or are considering selling – assets such as shares, property, or business goodwill, CGT planning before 30 June can make a meaningful difference.

If you’ve realised capital gains during the year, consider whether you have any capital losses that could be used to offset them.
The 50% CGT discount is available to individuals and trusts that have held assets for more than 12 months – timing the disposal of an asset can affect whether you qualify.
Small business CGT concessions may significantly reduce or eliminate CGT on the sale of a business or business assets. These rules are complex but can be highly valuable – speak to your accountant well ahead of time.

Engage Your Accountant Early

The single most effective thing you can do before EOFY is to engage your accountant now – not in the last week of June.

Early engagement means:

More time to implement tax planning strategies before the deadline
Fewer errors and rushed decisions
A clearer picture of your tax liability so you can manage cash flow
Peace of mind that you’re fully compliant and not leaving money on the table

Our team works proactively with clients throughout the year – not just at tax time – to ensure you’re making the most of every opportunity available to your business.

Ready to Get EOFY-Ready?

The weeks leading up to 30 June don’t need to be stressful – with the right planning and the right team in your corner, EOFY becomes an opportunity rather than an obligation.

If you’d like to review your tax position before year-end, the Economos team is here to help. Get in touch with us today to arrange a pre-EOFY consultation.

Payday super is coming. What every Australian business needs to know.

Australia’s superannuation system is undergoing its most significant change in decades. From 1 July 2026, the way employers pay their employees’ super will fundamentally shift, and if your business isn’t prepared, the consequences can be costly.

In this article, we walk you through exactly what Payday Super means, what’s changing, and the practical steps your business should be taking right now.

What Is Payday Super?

Currently, employers are required to pay their employees’ superannuation guarantee (SG) contributions quarterly. Most businesses have grown accustomed to this rhythm – holding super funds and paying them in a lump sum four times a year.

Payday Super changes that entirely. From 1 July 2026, super must be paid on every single payday, at the same time as salary and wages, and the contributions must be received by the employee’s super fund within 7 business days of each pay run.

This reform was first announced by the Australian Government on 2 May 2023, and the legislation has since passed through Parliament and is now law.

What’s Actually Changing?

Frequency of Payments

The most immediate impact is frequency. Instead of four super payments per year, businesses paying weekly will make 52 payments. Businesses paying fortnightly will make 26. Every pay cycle becomes a super cycle.

New Calculation Method: Qualifying Earnings (QE)

Super will no longer be calculated solely on Ordinary Time Earnings (OTE). Under Payday Super, a new concept called Qualifying Earnings (QE) applies. QE includes:

Ordinary time earnings (payments for ordinary hours of work)
Salary sacrifice superannuation contributions
Other amounts currently included in salary or wages for super guarantee purposes

The SG rate remains 12%, but what that 12% is applied to has broadened slightly under QE.

The 7-Business-Day Rule

Once you’ve processed a pay run, the super contribution must actually land in the employee’s super fund account within 7 business days. This isn’t just about when you send the payment, it’s about when it’s received. Processing delays with clearing houses or fund administrators will be your problem, not theirs.

The Small Business Super Clearing House (SBSCH) Is Closing

If your business currently uses the ATO’s Small Business Super Clearing House to pay employee super, you need to act urgently. The SBSCH closed to new users on 1 October 2025, and existing users must transition to an alternative option before 30 June 2026.

If you’re still using the SBSCH, now is the time to speak to us about alternative payment solutions. Waiting until June 2026 may not leave you enough time to transition smoothly.

Real-Time ATO Visibility via Single Touch Payroll

Payroll software will be updated to report a new code for Qualifying Earnings (QE) through Single Touch Payroll. This means the ATO will have real-time visibility over your super obligations from day one, making late or missed payments much harder to go unnoticed.

What Are the Penalties for Non-Compliance?

The penalties under Payday Super are substantially stricter than the current regime. Here’s what you need to know:

Super Guarantee Charge (SGC): If contributions aren’t received by the fund within 7 business days of payday, the SGC applies – assessed by the ATO (not self-assessed as under the current system).
Interest and administrative uplift: The SGC includes notional earnings (interest on unpaid amounts) and an administrative uplift component.
Penalties on unpaid SGC: If the SGC remains unpaid 28 days after an ATO assessment, additional penalties of 25% or 50% of the outstanding amount apply, depending on your prior compliance history.
Maximum penalty: Penalties can reach up to 200% of the SGC in serious cases, though these can be remitted in part or in full.
Choice loadings: If an employer hasn’t complied with employee fund choice rules, an additional loading applies.

The good news: The ATO has released a Practical Compliance Guideline (PCG 2026/1) confirming a measured approach during the first 12 months. Employers who make a genuine attempt to comply between 1 July 2026 and 30 June 2027 and correct mistakes quickly will not be the focus of compliance action. However, this leniency is not a free pass and it won’t last beyond the first year.

What Does This Mean for Your Business?

Cash Flow Planning

Under quarterly super, many businesses effectively held super contributions as working capital for up to 90 days. That buffer disappears under Payday Super. Every pay run now triggers an immediate cash outflow for super. Businesses need to model this shift into their cash flow forecasting now, not in June 2026.

Payroll System Updates

Your payroll software will need to support the new QE reporting requirements through Single Touch Payroll. Most major payroll platforms are already developing these updates, but you should confirm with your provider that their system will be compliant well before July 2026.

Clearing House and Super Fund Relationships

Businesses need to understand the end-to-end super payment journey – from their payroll system, through to a clearing house or fund, and finally into the employee’s account. With a 7-business-day window, any delays in the chain will count against you. Ensure your fund or clearing house has confirmed their processing times under the new rules.

SMSF Considerations

If any of your employees have a Self-Managed Super Fund (SMSF), ensure the fund has a valid Electronic Service Address (ESA) and that the SMSF annual return is up to date. An overdue annual return may result in the ATO removing the fund’s regulated status, making it ineligible to receive contributions.

What Should You Do Right Now?

With July 2026 approaching faster than many businesses realise, here’s what we recommend:

Review your payroll system: Speak to us or your payroll software provider now and confirm they are building in QE reporting and payday super compatibility.
Transition away from the SBSCH: If you use the Small Business Super Clearing House, start migrating immediately – don’t wait until the deadline.
Download and action the ATO’s checklist: The ATO has released a Payday Super preparation checklist. Use it as your starting point.
Model the cash flow impact: Work with us to understand how the shift from quarterly to per-pay-cycle super will affect your working capital.
Check employee fund details: Review your employee super fund records now. Rejected contributions can cause compliance failures.
Voluntary early adoption: If you’re ready, you can start paying super on payday today. Early movers avoid transition risk and may benefit from improved processing speeds when the new rules go live.

Need Help Getting Ready for Payday Super?

Payday Super represents a genuine operational shift for Australian businesses – not just a compliance checkbox. Getting it right requires the right payroll systems, the right super payment infrastructure, and a clear picture of your cash flow.

Our team works closely with businesses across Australia to navigate exactly these kinds of changes. Whether you need help reviewing your payroll setup, transitioning from the SBSCH, or simply understanding how Payday Super will affect your bottom line, we’re here to help.

Get in touch with us today for a no-obligation conversation. The earlier you start, the smoother the transition.

Economos named in the AFR Top 100 Accounting Firms for another year

Economos Chartered Accountants is proud to announce that we have once again been recognised in the Australian Financial Review’s Top 100 Accounting Firms list for 2025. This ranking highlights the nation’s most significant and high-performing accounting practices across Australia.

Since our founding in 1978, Economos has grown from a small specialist practice into a trusted national accounting firm. Our inclusion in the AFR Top 100 list reflects decades of consistent service delivery, technical excellence and a commitment to meeting the evolving needs of our clients.

What This Recognition Means

The AFR Top 100 Accounting Firms list is one of the most respected industry benchmarks in Australia. It ranks firms based on revenue and market presence, providing a snapshot of the competitive landscape and broader profession trends. This year’s ranking highlights strength across the sector – particularly among mid-tier firms that continue to expand their advisory capabilities and invest in technology, even as larger global firms navigate market shifts.

While the full list includes organisations ranging from global networks to well-established national firms, Economos’ place among them reinforces our continued relevance and scale within the Australian accounting market.

A Tradition of Growth and Client Focus

Over more than four decades, Economos has broadened its services beyond traditional accounting and tax compliance to include:

Strategic business and tax advisory
Specialist audit and assurance
Industry-focused solutions for property, construction, healthcare. medical and professional services
Integrated financial planning and compliance support
International Compliance Advisory

Through every evolution, our core philosophy has remained the same: deliver practical, high-quality advice that empowers clients to make better strategic decisions and manage risk with confidence.

Looking Ahead

In a competitive and rapidly changing professional services environment, Economos remains dedicated to:

Supporting medium and large-scale businesses with tailored tax, accounting and advisory services
Investing in technology and capability that enhances client outcomes
Attracting and retaining talent that reflects our values of integrity, experience and practical insight

We thank our clients, partners and team members for their trust and collaboration. This achievement is a testament to the collective effort of everyone at Economos.