Search this site

The clock is officially ticking. As of 1 July 2026, all businesses with employees  will need to pay superannuation at the same time wages are paid. Payday Super isn’t just another compliance tweak; it’s a significant shift aimed at protecting employees' entitlements. Are you Ready for Payday Super? We recognise the magnitude of this overhaul and are here to guide you every step of the way. From understanding compliance requirements to implementing practical solutions tailored to your operations, we’re confident these changes can become an opportunity to enhance how your business runs. Why is this Happening? The change to same-day superannuation payments  marks a critical move to address historical challenges. Late contributions, or in severe cases, unpaid superannuation, have raised concerns about fairness to employees across several industries. Often referred to as “super theft,” these delays undermine workers’ ability to build a stable retirement fund, in addition to eroding trust in employer reliability. By aligning super payments with payroll schedules, Payday Super seeks to eliminate such risks. It guarantees that super is paid on time, every time, a win for employees and an opportunity for businesses to showcase their commitment to fairness and compliance. What Will Change? Previously, the quarterly due date structure gave employers flexibility for superannuation payments. That option will end July 1, 2026 , with two major requirements taking effect: Same-Day Payments : Super contributions must be deposited when wages are paid. Quick Fund Transfers : Super funds must receive payments within seven days  of each payday. These stricter rules mean payroll systems and processes will need to deliver both efficiency and speed, requiring businesses to be fully equipped before implementation begins. How Will Payday Super Impact Your Business? To adapt successfully, you’ll need to focus on three critical areas: Streamlined Payroll Systems Assess whether your current systems can accommodate same-day super and wage payments. Legacy systems or outdated processes may need upgrading to avoid inefficiencies or compliance risks. Cash Flow Preparation Paying wages and super simultaneously will create tighter cash flow windows. Evaluate your budget carefully to balance immediate obligations without compromising long-term stability. Super Fund Timelines Ensure proper tracking of payment timelines to meet the seven-day fund deposit rule. Non-compliance could lead to penalties, risking both money and reputational trust with employees. These adjustments, while foundational, require strategic thought and early action to prevent operational disruptions. Remember, this is not a “last-minute” fix, it demands careful planning to ensure a seamless transition. Your Next Steps: Prepare Now With just over a few months until these changes take effect, the time to act is now. Businesses that prepare early will mitigate risks, reduce stress, and ensure full compliance while protecting cash flow and employee trust. Here's how to get started: Evaluate Payroll Systems : Upgrade or refine systems to handle simultaneous wage and super payments efficiently. Reassess Cash Flow : Understand the impact Payday Super will have on your cash flow. To help you navigate this important change, Employment Hero offers a dedicated Payday Super Calculator Educate Internal Teams : Ensure payroll and admin staff are fully informed about the new requirements. By optimising internal processes now, employers can transform challenges into opportunities, setting the groundwork for smoother compliance and improved operations ahead. We’re here to help businesses like yours tackle these changes head-on. Whether it’s a health check of your payroll systems or personalised advice to get your business ready for the 2026 deadline. Shiv Jaidka Founder

One powerful, yet often overlooked, strategy is the use of a bucket company, especially relevant if you operate through discretionary trusts or multiple entities. A bucket company is a private company set up as a corporate beneficiary of a trust. Instead of distributing all trust income to individuals (which can attract high personal tax rates), the trust distributes some income to the bucket company, which is then taxed at the corporate tax rate, typically capped at 25% or 30%. This is significantly lower than the top individual tax rate of nearly 47%, helping your RTO retain more profits within its group structure. How Does This Help Your RTO? Consider a trust earning $250,000 in business profits: Without a bucket company : Income is distributed to individual beneficiaries who pay personal tax rates, potentially resulting in a higher overall tax bill. With a bucket company: Part of the income is distributed to the bucket company and taxed at the company rate. The remainder is distributed to individual beneficiaries. This simple tax capping reduces total tax payable, leading to significant savings, potentially thousands of dollars, which can be reinvested into growing your RTO. What Can Your RTO Do with Funds Held in a Bucket Company? The money retained in the bucket company can be used strategically: Invest in equipment or technology essential for delivering quality training Fund new course development or scope expansions Lend to other entities within your business group, facilitating cash flow flexibility Support future succession planning or business growth By holding these funds within the bucket company, your RTO has a financial reservoir to support its ongoing development without immediate personal tax costs. Important Considerations for RTOs The bucket company must be properly established and named as a trust beneficiary before the end of the financial year. If funds distributed to the bucket company aren’t physically transferred, compliance with Division 7A loan rules is essential to avoid additional tax consequences. Determining whether your bucket company qualifies as a base rate entity affects the applicable corporate tax rate (25% or 30%). Early tax planning, preferably ahead of 30 June, is critical for your RTO to fully benefit from this strategy. Getting It Right - Professional Guidance is Key While bucket companies offer excellent tax and cash flow benefits, they require careful setup and ongoing compliance. It’s important to work with an accountant or financial advisor experienced in RTO structures to: Review your trust and company arrangements Determine the appropriate corporate tax rate Establish loan agreements in line with Division 7A Tailor a tax strategy aligned with your RTO’s growth objectives For RTOs striving to maximise after-tax income and maintain strong cash reserves, bucket companies provide a smart, tax-efficient solution. By capping tax rates on trust distributions and creating a flexible fund pool, your RTO can enhance financial planning, asset management, and growth potential. If you want to explore how a bucket company could work within your RTO accounts and tax strategy, we’re here to help. Don’t wait until the last minute; start your year-end planning now to reap the rewards. Shiv Jaidka Founder

The Financial Viability Risk Assessment Tool, or FVRA Tool, is used by ASQA to check whether your organisation has the financial capacity to stay viable and continue delivering quality outcomes for students. In my latest video, I break down the FVRA Tool requirements step-by-step to make sure you understand all the key scenarios and stay well-prepared. FVRA Tool Requirements You are required to complete the FVRA Tool in several situations, including: When applying for initial registration as an RTO or CRICOS provider. When notifying ASQA of a change of ownership or shareholding. When ASQA requests it as part of a compliance monitoring review. And, importantly, when seeking a change of scope of registration. So, what does a change of scope mean? It refers to any adjustment to the range of training products your organisation is registered to deliver. This could include: Adding a new qualification, skill set, or unit of competency. Extending delivery to new student cohorts, such as international students. Expanding into new training areas or delivery methods that were not part of your original scope. Because these changes can significantly impact your operations, ASQA requires the FVRA Tool to demonstrate that you have the financial resources to support the expansion. Once completed, the tool provides a preliminary financial risk rating, allowing you to determine whether you meet the base requirements before lodging your application.  The purpose is straightforward: ASQA needs assurance that you can sustain your business, support your students, and deliver training to completion, even as your organisation grows or changes.  If you’re preparing an application and need support, speak to an experienced RTO consultant, or reach out to us for guidance on completing the FVRA Tool correctly.

We are pleased to be working with Travis Latter from Infinity Business Brokers . Brokering over $150M in RTO sales, the Infinity team understands the market and gets results. Infinity Business Brokers provides access to the most extensive list of RTOs and Training Businesses for sale in Australia. With 25 years of experience in the RTO industry and over 150 completed transactions, Infinity Business Brokers understands what it takes to make buying an RTO as simple as possible. Travis Latter Selling your RTO or Training Business could be the most critical decision of your life. Infinity Business Brokers are highly experienced RTO sales, acquisitions and mergers specialists. We are Australia’s leading RTO sales authority, having brokered over $150 million in RTO sales. Whether it is a top-level athlete, an ASX top 50 company or even a barista making a coffee, the best always have a reliable process. Our process has been refined over 25 years of experience in the RTO industry. It has evolved and been critiqued, and with over 150 successful RTO transactions in the bank, we can proudly say that it is designed to achieve the best results in the best timeframe in the most ethical manner. How do you value an RTO?

Completing the Financial Viability Risk Assessment (FVRA) Tool requires careful planning and the right tools. Over the years, we have developed tools to streamline the process and ensure accuracy. Let me share three tools I use to help clients complete the FVRA Tool efficiently. Tools I use to complete the FVRA Tool 1. Internal Workpapers My internal work papers are customised templates designed to organise and standardise the financial data required for the FVRA Tool. These wallpapers help capture details like Profit and Loss, Balance Sheet, and Cash Flow data, ensuring accuracy and consistency across all tool sections. For example, I use a dedicated work paper to map historical financial data directly from your accounting software into the FVRA Tool. This eliminates manual errors and ensures that every number aligns with your audited financial statements. 2. Ratio Calculations The FVRA Tool relies heavily on financial ratios such as liquidity, debt-to-equity, and EBIT percentage. I use automated Excel formulas and templates to calculate these ratios quickly and accurately, ensuring they meet industry benchmarks. With my ratio calculation tool, I can instantly assess whether your financial metrics meet the regulator's requirements. For instance, if your liquidity ratio is below the threshold, I can identify adjustments to improve your standing before submission. 3. Comprehensive Checklists My checklists ensure no detail is overlooked when preparing your FVRA Tool application. They include everything from required supporting documents, such as lease agreements and insurance certificates, to operational information, such as student-to-trainer ratios and enrolment data. I use the checklist to verify that all tabs in the FVRA Tool are complete and consistent with your Business Plan. This step-by-step approach ensures your submission is thorough and aligned with the regulator's expectations. Using internal work papers, ratio calculation tools, and comprehensive checklists has helped me efficiently and accurately guide clients through the FVRA Tool process. Feel free to contact us if you need help with the FVRA Tool.

With the financial year-end looming, Registered Training Organisations (RTOs) must strategise and optimise their tax positions. In this blog post, I delve into tax planning actionable tips and insights to help RTOs prepare their year-end accounts effectively, ultimately minimising tax liabilities and capitalising on opportunities for wealth accumulation. RTO Tax Planning Let's break down the actionable tips: Keeping Records Up to Date:  Ensuring that your bookkeeping file is reconciled and up to date is crucial for measuring your financial position accurately. Prepayment of Expenses:  Consider prepaying expenses such as rent, subscriptions, and other business costs before the financial year-end to avail a tax deduction in the current financial year. Superannuation Payments:  Paying June quarter super for your employees before June 30th allows you to claim a deduction in the current financial year. Review and Write Off Bad Debts:  Assess your trade receivables and write off any irrecoverable amounts before June 30th to avoid including them in your income for the year. Deferred Income:  Delay issuing invoices for services rendered until after June 30th to defer the income to the next financial year. Estimating Personal Income:  Estimate your personal income as a shareholder/director to determine how and when to receive income from the business, such as wages or dividends. Maximise Super Contributions:  Consider maximising superannuation contributions (up to the deductible cap of $27,500) before June 30th to build a strong retirement fund. Insurance Coverage:  Ensure you have adequate personal insurance coverage, including life, TPD, and income protection, for financial security in case of unexpected events. These are some of the key strategies you may consider implementing to optimise your tax position before the end of the financial year. Discussing these tips with your accountant to tailor them to your specific circumstances and needs is advisable. If you have any further questions, feel free to reach out for assistance or clarification. Disclaimer: This is general advice only and does not consider your financial circumstances, needs and objectives. Before deciding, you should assess your circumstances or seek advice from your accountant.

Completing the Financial Viability Risk Assessment (FVRA) Tool requires thorough preparation and accurate information. To help you get started, here are the top three pieces of information and advice you will need to complete the tool successfully. Information you need to complete the FVRA Tool 1. Accurate Student Enrolment Information The FVRA Tool heavily relies on accurate student enrolment data to assess your organisation’s financial viability. This includes historical enrolment figures, current student numbers, and projections for future enrolments. Inaccurate or inconsistent enrolment data can raise questions about the credibility of your application. Actionable Advice: Ensure your enrolment data is consistent across your student management system and the FVRA Tool. Double-check details like course-wise enrolments and tuition fee collections to avoid discrepancies. If you’re projecting new enrolments, base your estimates on historical trends and justify any significant changes. 2. Operational Information Operational details, such as the student-to-trainer ratio, are crucial for demonstrating your organisation’s capacity to deliver quality education. You will need to include data that covers both the theory and practical components of your courses and a breakdown of operational expenses like staff salaries and overhead costs. Actionable Advice: Work with your accountant to prepare a detailed breakdown of operational costs and ratios. Ensure the student-to-trainer ratio complies with regulatory requirements and reflects your organisation’s commitment to quality education. These details support your financial data and demonstrate your operational efficiency. 3. Supporting Documents The FVRA Tool requires supporting documents to validate the information provided. This Includes lease agreements, bank statements, insurance certificates, and other documents demonstrating financial stability and operational readiness. Actionable Advice: Gather all supporting documents in advance and ensure they are up to date. For example: Lease agreements confirm your access to facilities. Bank statements demonstrate financial health and liquidity. Insurance certificates show you’re prepared for contingencies. Having these documents ready ensures a smoother and more credible submission process. With accurate student enrolment data, detailed operational information, and up-to-date supporting documents, you will have everything you need to complete the FVRA Tool successfully. Feel free to contact us  for expert help with the FVRA Tool.

The Financial Viability Risk Assessment (FVRA) Tool requires careful planning and attention to detail. To make the process easier and more effective, I am sharing three tricks and advice to help you complete the tool confidently and accurately. Three Tricks When Completing the FVRA Tool Trick 1: Estimate New Enrolments with Reasonable Assumptions When projecting new enrolments, it is essential to base your estimates on reasonable and justifiable assumptions. If you anticipate a significant increase in enrolments, provide a clear explanation. For example, if you have partnered with another education provider, this should be documented and reflected in your assumptions. Actionable Advice: Follow historical trends and use past data to guide your projections. If you are introducing new courses or expanding into new markets, ensure there is strong evidence, such as signed agreements with agents or market analysis, to support your estimates. This will strengthen your application and demonstrate that your projections are grounded in reality. Trick 2: Reconcile Student Fees Receivable One standard issue organisations face is discrepancies between their accounting software and student management systems. If student fees receivable are not appropriately reconciled, this can create confusion and signal financial mismanagement. Actionable Advice: Before completing the FVRA Tool, reconcile your student fee data between your accounting software and the student management system. Ensure that all outstanding balances, pre-paid fees, and revenue figures align. I recommend conducting regular reconciliations to avoid errors and ensure your financial data is accurate and up to date. Trick 3: Monitor Financial Ratios and Compare them with Industry Benchmarks The FVRA Tool heavily relies on key financial ratios, such as liquidity, debt-to-equity, and Earnings Before Income Tax percentages, to assess your financial health. Failing to monitor these ratios can result in a poor risk assessment. Actionable Advice: Calculate these ratios carefully and compare them with industry benchmarks. For instance: A liquidity ratio should demonstrate that you can cover your short-term obligations. A strong debt-to-equity ratio reflects financial stability. Earnings Before Income Tax percentages show your ability to generate surplus revenue. If your ratios fall short of benchmarks, consider adjustments, such as reducing expenses or increasing cash reserves, to improve your financial position before submission. By using reasonable enrolment assumptions, reconciling your student fees receivable, and monitoring key financial ratios, you can complete the FVRA Tool with greater accuracy and confidence.  Feel free to contact us for expert help with the FVRA Tool.

Completing the Financial Viability Risk Assessment (FVRA) Tool is not just about numbers; it's about demonstrating your organisation to achieve long-term success. Here are my top three tips and advice for ensuring the success of your FVRA Tool application. Three Tips for a Successful FVRA Tool Application Tip 1: Ensure You Have All Supporting Documents Your FVRA Tool application relies on accurate and complete supporting evidence. This includes financial statements, aged debtors/creditors reports, reconciliations, and compliance-related documents like insurance certificates and superannuation records. Missing documents can delay or weaken your application. Actionable Advice: Before starting the FVRA Tool, create a checklist of required documents and gather them in advance. This will streamline the process and ensure your application is complete. Tip 2: Keep the Long-Term Vision in Mind The FVRA Tool is not just about your current financial position. It is also about your organisation to thrive in the long term. The regulator will assess whether your Business Plan and financial projections reflect a sustainable vision beyond two years. Actionable Advice: Ensure your business plan and FVRA tool reflect your organisation's long-term goals. Include strategies for growth and plans for new courses or markets, and demonstrate how you will maintain financial stability. This shows that you are not just meeting current requirements but are also prepared for future challenges. Tip 3: Focus on Running a Dedicated Training Business The applicant entity should focus exclusively on running the training business if possible. The higher the percentage of training revenue in total revenue, the better your financial viability assessment will be. I will reflect on this. This represents your entity's clear focus on training activities and aligns with regulatory expectations. Additional Advantage: This approach also provides a strategic benefit in the long term. An RTO that operates solely as a training provider is much easier to sell if you ever decide to exit the business. Potential buyers are more likely to value a streamlined operation focusing exclusively on training activities, making it a more attractive acquisition. Feel free to contact us for expert help with the FVRA Tool.

Completing the Financial Viability Risk Assessment (FVRA) Tool can be overwhelming, but avoiding common mistakes can make the process smoother. As an accountant, I’m here to guide you through the top three mistakes and how to avoid them. Let’s get started. Top Three Mistakes in Completing the FVRA Tool Mistake 1: Not Maintaining Correct Financial and Non-financial Information The most common mistake I see is incomplete financial and non-financial information. Existing businesses must readily have bookkeeping reports, such as Profit and loss statements, Balance Sheets, and Cash Flow Statements. This ensures that the correct data is available to complete the FVRA Tool. Additionally, non-financial information must be accurate and available, such as historical enrolments for each course, student pre-paid fees, and staff-related data. How to Avoid It: Keep your bookkeeping software up-to-date and ensure all financial reconciliations are completed. Maintain detailed non-financial records related to students and staff to support your submission. Mistake 2: Misalignment Between the Business Plan and the FVRA Tool The financial information in your Business Plan must align with the FVRA Tool. For example, your financial projections, funding sources, and key assumptions in the Business Plan should match the numbers and calculations entered in the FVRA Tool. Any discrepancies can raise questions about the credibility of your submission. How to Avoid It: To ensure that your Business Plan aligns seamlessly with the FVRA Tool, double-check that your financial projections and operational details are consistent across both documents to present a credible application. Mistake 3: Failing to Keep ATO Lodgements, Superannuation, and GST Obligations Up-to-Date The regulator places significant importance on compliance with ATO lodgements, superannuation, and GST obligations. If these are overdue or inconsistent, it can indicate financial mismanagement and negatively impact your risk assessment. How to Avoid It: Before starting the FVRA Tool, ensure all your ATO obligations, including BAS, PAYG Withholding, and GST lodgements, are current. Confirm that employee superannuation contributions have been made on time. You can improve your chances of a successful application by providing complete information, ensuring alignment between your Business Plan and the FVRA Tool, and keeping your statutory lodgements current. Feel free to contact us for expert help with the FVRA Tool.