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The latest RTO State of the Market update with Travis Latter, CEO of Infinity Business Brokers and RTO Valuations Travis shares his highlights, watch the full report below: The RTO sector is tightening, not collapsing Domestic RTO values are climbing, the CRICOS market remains constrained, and upcoming tax changes mean now is the time to understand what your RTO is worth. RTOs that have well-prepared financials achieve a higher multiple. RTO Market Update Selling your RTO or training business is one of the most important decisions you’ll make. Stay informed, plan ahead, and set your organisation up for success. Infinity Business Brokers are highly experienced RTO sales, acquisitions and mergers specialists. They are Australia’s leading RTO sales authority, having brokered over $140 million in RTO sales. Travis Latter RTO Investment Strategist

The latest Xero Business Insights report paints a mixed picture for Australian businesses, including RTOs. Australian Small Business Update The Economic Landscape The Australian economy entered 2026 with solid momentum, but uncertainty has increased. The evolving Middle East conflict and renewed tensions between the US and Iran in July have created headwinds that are slowing growth and pushing up inflation. The Reserve Bank has kept the cash rate on hold at 4.35%, citing "heightened uncertainties" about the economic outlook. Global oil supply issues are keeping energy prices elevated, which flows through to operating costs for businesses across the board. Australian Small Business Update What the Numbers Show Sales growth is holding up, but it's uneven. Mining (+11.8% year-on-year), utilities (+13.8%), and construction (+10.8%) are leading the pack The ACT (+3.4%) and the larger states of NSW (+6.1%) and Victoria (+5.3%) are seeing softer results Queensland (+8.2%) and the Northern Territory (+8.4%) are performing strongly. Job growth is slowing Employment rose 3.0% year-on-year in the June quarter, down from 3.3% in March June itself saw a sharper slowdown, with jobs up only 2.0% from the previous year Hospitality was the only sector to go backwards (-0.9%). Wages remain modest, up just 2.4% year-on-year. Payment Times: A Glimmer of Good News There's some positive news on the cash flow front. Payment times improved in the June quarter, with small businesses waiting an average of 22.9 days to be paid after issuing an invoice, down from 24.2 days in March. Late payments also eased slightly, with invoices paid an average of 6.0 days late, compared to 6.9 days the previous quarter. While some of this improvement is seasonal (the end of the financial year often brings better payment behaviour), it's still a welcome shift for businesses managing tight cash flow. Looking Ahead The OECD forecasts modest GDP growth for Australia of around 1.9% in 2026, following 2.0% in 2025. It's not dramatic growth, but it's steady. For RTOs, this means planning carefully, watching expenses closely, and making sure your pricing reflects your true costs. The businesses that stay on top of their finances now will be best positioned when conditions improve. The Bottom Line for RTOs Small businesses, including RTOs, are feeling the squeeze. Rising input costs (particularly fuel), combined with cautious customers, are pressuring profit margins and cash flow. If you're finding things a bit tighter than usual, you're not alone. Now's a good time to take a close look at your numbers and make sure your financial foundations are solid. Need a hand? We're here to help you navigate these uncertain times.

Travis is back to share important updates that every RTO owner needs to know. The 2025 Federal Budget has introduced the biggest tax reform in 25 years, and if you’re considering selling your RTO, the changes coming from 1 July 2027 could have a major impact on your capital gains tax. In his latest video, Travis breaks down: How the current 50% Capital Gains Tax discount will be replaced by a minimum 30% tax on real capital gains after 30 June 2027 The opportunity to split your capital gains into “before” and “after” 1 July 2027 values — which could save you thousands Why RTO valuations are unique and require a defensible, documented approach The impact of new proposed taxes on family trusts from 1 July 2028 Why acting now to get a proper valuation is essential to protecting your financial future Whether you’re planning to sell soon or just want to be prepared, this blog is a must-watch to help you understand what’s ahead. What the Budget Means for Selling an RTO The "Split" That Could Save You Money Under the new legislation, you'll be able to split your capital gains into two parts: Value accrued before 1 July 2027 – still protected by the existing 50% CGT discount Value accrued after 1 July 2027 – taxed under the new rules This split could result in significant tax savings on a future sale, but only if you can prove to the ATO what your RTO was worth on 1 July 2027. Why RTO Valuations Are Different Valuing an RTO isn't like valuing other businesses. A generic business calculator or simple appraisal won't cut it. The ATO and courts require a defensible, documented valuation that accounts for: Scope of registration Compliance history Funding contracts Student pipeline Internal systems Goodwill Industry and regulatory factors Two RTOs with identical revenue can sell for vastly different amounts depending on these underlying drivers. Additional Consideration: Family Trusts If your RTO sits inside a family or discretionary trust, there's another change to note. From 1 July 2028, a proposed minimum 30% tax on trust income will come into effect. Restructuring relief is available, but it comes with conditions, costs, and a limited window. The Bottom Line This isn't a reason to panic, but it is a reason to act. Whether you're planning to sell soon or not for years, having a defensible valuation of your RTO before the July 2027 deadline is no longer optional. It's essential for protecting your options and potentially saving significant money in taxes. Selling your RTO or training business is one of the most important decisions you’ll make. Stay informed, plan, and set your organisation up for success. Infinity Business Brokers are highly experienced RTO sales, acquisitions and mergers specialists. They are Australia’s leading RTO sales authority, having brokered over $140 million in RTO sales. Travis Latter RTO Investment Strategist

With the end of the financial year fast approaching, now is the time to consider whether you can boost your superannuation balance before 30 June. Boost your super fund Maximising your super contributions requires careful planning. Even modest additional contributions now can make a meaningful difference to your retirement balance over time, thanks to the power of compounding returns. Here are five strategies worth considering before the financial year ends. 1. Concessional (Before-Tax) Contributions You can contribute up to $30,000 in concessional (pre-tax) contributions each financial year. This includes your employer's Superannuation Guarantee payments plus any personal contributions you choose to make. These contributions are taxed at just 15%, significantly lower than most professionals' marginal tax rates. If you're below the annual cap, you have a few options: Salary sacrifice through your employer (if you have this arrangement in place) Personal contributions using after-tax money, then claiming a tax deduction. If you go the personal contribution route, remember you'll need to complete an ATO notice of intent form and receive an acknowledgement from your super fund before lodging your tax return. A word of caution: This is a busy period for super funds, and many have cut-off dates one to two weeks before 30 June. If you're planning to contribute, don't leave it until the last minute. 2. Carry-Forward (Catch-Up) Contributions This one is particularly relevant for professionals who may have had years of lower contribution during training, parental leave, or periods of reduced work. If your total super balance was below $500,000 as at 30 June last year, you may be able to use unused concessional contribution caps from the past five years. For example, if you only contributed $15,000 in 2021-22 (when the cap was $27,500), you may have $12,500 in unused cap space from that year alone, combined with this year's $30,000 limit, which could allow you to contribute up to $42,500. You can check your available carry-forward amounts through your myGov account linked to the ATO. 3. Non-Concessional (After-Tax) Contributions Non-concessional contributions are made with after-tax money and can't be claimed as a deduction, but they allow you to accumulate more wealth within the tax-effective super environment. The annual cap is $120,000, though under the "bring-forward rule," you may be able to contribute up to $360,000 in a single year (depending on your total super balance). You then can't make further non-concessional contributions for the following three years. This strategy can be useful if you've had a particularly strong year, perhaps from the sale of a practice share or other significant asset and want to shelter more funds within super. 4. Downsizer Contributions If you're aged 55 or older and have sold (or are selling) your family home, you may be able to contribute up to $300,000 into super from the proceeds. Couples can contribute up to $300,000 each. This contribution doesn't count towards your annual caps and can be made in addition to other contribution types. Key conditions apply: You (or your spouse) must have owned the home for at least 10 years. The property must be your principal residence (not an investment property) The contribution must be made within 90 days of receiving the sale proceeds. While not strictly an EOFY strategy, it's worth flagging if you're in this situation. 5. Spouse Contributions For professionals with partners who may have lower incomes or have taken time out of the workforce, spouse contributions can be a useful way to build household retirement savings. You can: Split your own concessional contributions with your spouse after the financial year ends. Make a direct contribution to your spouse's super (treated as their non-concessional contribution), which may entitle you to a tax offset. Not all super funds allow contribution splitting, so check with your fund first. Before You Act Super and retirement planning is complex, and the penalties for exceeding contribution caps can be significant. For professionals navigating variable income, multiple employers, and evolving career stages, generic advice only goes so far. What matters is how these strategies fit into your broader financial picture. If you'd like clarity on your options before 30 June, we're here to help. Shiv Jaidka Founder | RTO Accounts Disclaimer: The information contained in this article is general in nature and is intended to provide a summary of current superannuation rules and strategies. It does not take into account your personal objectives, financial situation or needs. We do not hold an Australian Financial Services Licence (AFSL) and are not an authorised representative of such a licence holder. Accordingly, nothing in this article should be construed as financial advice, a recommendation, or a statement of opinion intended to influence your decision in relation to any superannuation product or strategy. Before making any decision regarding your superannuation, you should consider obtaining advice from an appropriately licensed financial adviser who can take into account your individual circumstances.

Many owners believe they can sell quickly for three to four times annual profit, but the reality is much more complex. Travis Latter of Infinity Business Brokers has identified the six critical issues that frequently derail RTO transactions during buyer due diligence, leading to lower sale prices, unfavourable terms, or deals falling through altogether. Six Pitfalls That Blindside RTO Sales Financial Integrity & Earnings Quality Buyers need to trust the numbers. Deals are lost when financial reporting doesn’t clearly show repeatable profitability or when key figures aren’t well documented. Unclear revenue recognition, unexplained adjustments, and inconsistent earnings lead to discounted offers or earnout clauses. Valuation Realism & Price Logic Pricing expectations should reflect actual market drivers: maintainable earnings, risk profile, compliance, and team continuity. Anchoring to revenue, past peaks, or personal investment typically results in stalled or adversarial negotiation and erodes trust. Operational Independence from the Vendor A business that only functions with the owner is a major red flag. Buyers devalue, or heavily condition deals, if the vendor is central to key processes, compliance, or relationships. Demonstrating team and systems resilience is key. Revenue & Funding Defensibility Past income looks good, but buyers focus on revenue durability, funding reliability, contract length, and future enrollment visibility. RTOs without clear forward revenue pipelines are seen as risky. People, Systems & Transferability Buyers pay for robust processes, not just loyal staff. When compliance knowledge or delivery relies on individuals (especially vendors), perceived risk rises. Documentation, workflows, and systemisation contain this risk. Transaction Readiness & Risk Transfer Many vendors underestimate the complexity of a share sale, the only viable structure for RTO transactions in Australia. Proper preparation (documents, disclosures, compliance history, and known liabilities) accelerates the process, reduces stress, and preserves value. Selling your RTO or training business is one of the most important decisions you’ll make. Stay informed, plan, and set your organisation up for success. Infinity Business Brokers are highly experienced RTO sales, acquisitions and mergers specialists. They are Australia’s leading RTO sales authority, having brokered over $140 million in RTO sales. Travis Latter RTO Investment Strategist

The Federal Budget landed on 12 May, 2026. There's been plenty of coverage about housing and cost-of-living measures. But if you're running an RTO, you're probably wondering what this actually means for us? We've gone through the details, so you don't have to. Here's what matters for your training organisation and your people. The Big Picture for RTOs This Budget has a strong focus on skills and workforce development. The government knows that hitting its housing targets and growing the economy requires trained workers. And that's where RTOs come in. There's funding flowing into vocational education and training. Some measures affect how you run your business. And some changes will hit your staff's hip pockets, too. Skills and Training: The Funding Landscape The Push for 1.2 Million New Homes The government's headline housing target is 1.2 million new homes. To build them, Australia needs construction workers. Lots of them. What this means for RTOs: If you deliver construction, building, or trade qualifications, demand for your courses could increase. The government is backing this target with funding, and that funding needs to flow somewhere. Keep an eye on state and territory funding agreements. When the Commonwealth prioritises something like this, training subsidies often follow. Fee-Free TAFE and VET Funding The Budget continues the government's commitment to Fee-Free TAFE and subsidised vocational training. For RTOs competing in this space, this is both an opportunity and a challenge. The opportunity: More students are considering VET pathways because of lower costs. If you're delivering in priority areas, there's potential for growth. The challenge: Fee-Free TAFE means public providers have a pricing advantage. Private RTOs need to compete on quality, flexibility, and industry connections. Our advice: Focus on what you do best. If you're delivering training that's responsive to industry needs, employer-connected, and gets people into jobs, that's your competitive edge. Don't try to win on price alone. Workforce Shortages and Priority Skills The Budget acknowledges ongoing workforce shortages across multiple sectors, not just construction, but healthcare, aged care, early childhood education, and technology. If your RTO delivers qualifications in any of these areas, you're well-positioned. The government needs skilled workers, and they need RTOs to train them. What to watch: State and territory skills lists. These determine where funding flows. Make sure your course offerings align with where the demand is and where the subsidies are. For RTO Business Owners The $20,000 Instant Asset Write-Off is Permanent Good news. If your RTO turns over less than $10 million, you can instantly write off assets costing up to $20,000. And it's now permanent. What this means for your RTO: That new training equipment, computers, simulators, fit-out for a new training room, or upgrade to your student management system? If individual items cost under $20,000, you can claim the full deduction in the year you buy them. This gives you certainty to plan. No more waiting to see if the scheme gets extended before making purchases. Practical tip: If you're buying multiple items, purchase them separately where possible. A $15,000 computer setup and an $18,000 training simulator are two write-offs. Bundle them into a $33,000 package, and you miss out. New $1,000 Instant Tax Deduction From the 2027-28 income year, there's a new instant tax deduction of up to $1,000. We're still waiting on the finer details, but this could be useful for smaller purchases, such as office equipment, software subscriptions, or training resources. We'll keep you updated as more information comes through. Energy Bill Relief The Budget includes $1.8 billion in electricity bill relief for households and businesses. If you're running training facilities, classrooms, workshops, and computer labs, our power bills are a real cost. This relief should help ease some of that pressure. It's not a long-term fix, but every bit helps when you're managing tight margins. 497 Nuisance Tariffs Abolished From 1 July 2026, the government will remove 497 tariffs that impose compliance costs on imported goods. If your RTO imports training equipment, technology, or resources from overseas, you could see reduced costs and less paperwork. What to do: Check with your suppliers to see if any of your regular purchases were subject to these tariffs. Savings might flow through. For RTO Owners with Investment Structures If you've built wealth alongside your RTO through property or other investments, there are significant changes you need to be aware of. Negative Gearing is Being Scrapped The government is removing negative gearing for property investments. The good news: Existing arrangements are grandfathered. If you already own investment properties, your current tax treatment stays in place. Going forward: New investment properties won't have the same benefits. If you've been planning to buy another rental, the numbers will look different. For RTO owners who've used property investment to build wealth outside the business, this is a meaningful shift. It doesn't mean property is a bad investment it just means you need to reassess the strategy. CGT Discount Replaced with Indexation The 50% capital gains tax discount is being replaced with an indexation system. Instead of automatically halving your capital gain when you sell an asset, your cost base will be adjusted for inflation. What this means: If you hold assets long-term and inflation is high, indexation could work in your favour. If you're buying and selling within a shorter timeframe, you may pay more tax than under the old rules. This affects property, shares, and other investments. If you're planning any asset sales in the coming years, we should talk about timing and strategy. 30% Minimum Tax on Discretionary Trusts From 1 July 2028, discretionary trusts will face a minimum tax rate of 30% on distributions. This is a big one. Many RTO owners use family trusts to distribute income to family members at lower tax rates. It's been a legitimate and effective strategy for years. That flexibility is being wound back. What this means for you: If you're using a discretionary trust as part of your business or investment structure, we need to review it together. There may be better options depending on your circumstances. The government expects to raise $4.5 billion over five years from this measure. That revenue is coming from business owners, and you might be one of them. Don't wait until 2028. The time to review your structure is now, while you have options. For Your RTO Staff The Budget includes measures that will directly benefit your trainers, assessors, and admin team. The $250 Tax Cut From the 2027-28 income year, every worker gets a $250 tax cut. It's not huge, but it's something. Your staff will see a little more in their take-home pay. For you as an employer, this doesn't change your payroll obligations. But it's worth letting your team know that some relief is coming. Cost of Living Relief The Budget includes: * $1.8 billion in electricity bill relief * Temporary fuel excise cuts (for three months) * Various household support measures Your staff are feeling the cost-of-living pressures just like everyone else. These measures should help ease some of that strain. If you have team members commuting to training sites or campuses, the fuel excise cut, while temporary, will provide short-term relief. Superannuation The Budget maintains the current superannuation guarantee trajectory. Employer contributions continue to increase as scheduled, reaching 12% from 1 July 2025. As an RTO employer, make sure you're budgeting for super obligations accurately. It's one of those costs that can creep up if you're not watching it. The Economic Reality Let's be honest about the broader picture. The government is running a $31.5 billion deficit this year. A balanced budget isn't expected until 2034-35. CommBank's analysis describes this Budget as "neutral-to-mildly expansionary" and notes it "does little to help in the fight against inflation." What does that mean for RTOs? Interest rates probably aren't coming down quickly. If you have business loans or financing, plan to keep repayments where they are. Cost pressures aren't going away: wages, rent, and utilities are budgeted to keep rising. The tax environment is tightening, not loosening. The government needs revenue, and they're finding ways to get it. This isn't doom and gloom. It's just reality. The RTOs that thrive will be the ones that plan carefully, watch their numbers, and adapt. Compliance Considerations for RTOs While this Budget doesn't directly change your ASQA or state regulator obligations, there are flow-on effects worth noting. Funding Agreement Requirements If you're delivering government-subsidised training, keep an eye on any changes to funding agreements that flow from Budget priorities. When the government sets targets around housing and priority skills, funding rules often shift to match. Make sure your compliance and admin teams are across any updates from your state training authority. Record Keeping With measures like the instant asset write-off and new deductions, good record-keeping is more important than ever. Make sure you're keeping proper documentation for all purchases and expenses. If you're ever audited by the ATO or anyone else, you want clean records that back up your claims. What RTOs Should Do Now Review Your Course Offerings Are you aligned with government priorities? Construction, healthcare, aged care, early childhood, and technology are the areas where funding and demand are heading. Make sure your training products match the market Use the Instant Asset Write-Off Strategically It's permanent now. Plan your equipment and technology purchases across financial years to maximise deductions. If you've been putting off upgrades, now's the time to plan Review Your Business and Investment Structures The trust tax changes and CGT reforms are significant. If you're using a discretionary trust or have investment properties, let's look at your structure together. There may be better options, but only if we act before the changes take effect. Budget Carefully Costs aren't coming down. Interest rates aren't dropping fast. Build realistic budgets that account for ongoing pressure on wages, utilities, and compliance costs Communicate with Your Team Your staff are feeling the cost-of-living pressures. Let them know about the measures that will help the $250 tax cut, energy relief, and fuel excise cuts. A little communication goes a long way for morale Keep Clean Records Good record keeping protects you and ensures you claim everything you're entitled to. Make it a habit across your whole organisation Need tailored advice? This is general information based on the Budget announcements of 12 May 2026. Many measures require legislation. Before making moves, if you’d like to talk more about how this impacts your business, let's chat. This article provides general information only and does not constitute financial, tax, or legal advice. The 2026-27 Budget measures discussed are subject to passing legislation. Please seek professional advice tailored to your specific circumstances before making any decisions.

From 1 July 2026, Australia’s anti-money laundering and counter-terrorism financing rules (AML/CTF) are getting a major upgrade. AUSTRAC (the regulator) is expanding the net to include more industries, including accountants, under what’s commonly called “Tranche 2” reforms. Anti-Money Laundering Legislation Here’s the practical, no-nonsense summary of what’s happening, why it’s happening, and what it means for you. What’s happening? Australia is extending AML/CTF rules to more professions that can be used (sometimes without knowing it) to move or hide dirty money. From 1 July 2026, AML/CTF obligations will apply to more “service providers,” including: Accountants and bookkeepers (certain services) Lawyers Real estate professionals Dealers in precious metals / high-value goods These newly captured industries will need to comply with formal AML/CTF requirements similar to those already in place for banks. Why is it happening? In plain terms, Australia is tightening the system to reduce financial crime. This isn’t about making life harder for honest businesses; it’s about making it harder for criminals to hide in normal transactions. What does it mean for you? 1) You’ll likely notice more ID and “who owns what” questions Because accountants (and other advisors) are being brought into the AML/CTF regime, you should expect more checks when you: onboard as a new client set up a new company/trust restructure ownership buy/sell a business deal with higher-risk transactions or unusual payment patterns This is called Customer Due Diligence (CDD), basically identity checks plus understanding the real decision-makers behind a business (beneficial owners). Practical examples of what we may need from you: Driver’s licence/passport (and sometimes secondary ID) Company/trust documents Details of directors, trustees, shareholders, and beneficiaries Basic explanation of the nature of your work and typical payment flows 2) Payments and transactions may get more scrutiny If something looks unusual (for example, odd third-party payments, unexplained large cash amounts, unusual overseas flows), firms will be required to consider whether it needs to be reported to AUSTRAC. This doesn’t mean you’ve “done something wrong”; it means the system requires professionals to monitor and report certain red flags actively. What we’re doing. We’ll be adjusting our onboarding and ongoing client processes so we stay compliant without creating a paperwork circus. Next steps If you’ve got multiple entities (trust, company, SMSF, etc.), be ready to confirm who owns/controls what. If your business touches property transactions or other high-value dealings, ask us to review whether you’re directly captured.

Stay informed with the 2025 RTO State of the Market Report from Infinity Business Brokers . Drawing insights from over 200 industry professionals, this report delivers a clear, straightforward look at the current state of the RTO sector and what to expect in 2026, no sales pitch, just practical information for vendors, buyers, and stakeholders. RTO Market Update RTO State of the Market Report "The Australian RTO sector is at a crossroads. Increased compliance, digital transformation and shifting learner expectations are forcing operators to evolve rapidly. However, this is not the main determination in a slightly declining market. The single greatest reason we have a declining market and the most worrisome factor affecting RTOs is a distinct lack of trust in the Government and their handling of VET training in Australia....." Selling your RTO or Training Business could be the most critical decision of your life.   Travis Latter Infinity Business Brokers are highly experienced RTO sales, acquisitions and mergers specialists. They are Australia’s leading RTO sales authority, having brokered over $150 million in RTO sales.

Discover the 2026 State of the Market Report by Infinity Business Brokers for Australian RTO and CRICOS sectors. Featuring insights from over 3,025 active buyers and 24 successful RTO sales between July 2025 and January 2026, this report highlights key trends in transactions, valuations, due diligence, and deal outcomes to help you confidently navigate the market. RTO Market Update Since the last update in July 2025  the sector has maintained steady growth while maturing into a more disciplined market. Over the past six months, regulatory enforcement has intensified in practice, buyer scrutiny has become more detailed, and transaction values are now driven firmly by market evidence rather than sentiment. Selling your RTO or training business is one of the most important decisions you’ll make. Stay informed, plan ahead, and set your organisation up for success. Infinity Business Brokers are highly experienced RTO sales, acquisitions and mergers specialists. They are Australia’s leading RTO sales authority, having brokered over $140 million in RTO sales. Travis Latter RTO Investment Strategist

Payday Super  is reshaping how super contributions are managed in Australia from 1 July 2026. The government is shifting super guarantee (SG) payments from quarterly cycles to payday contributions, meaning super must be paid to employees at the same time wages are paid . Successfully navigating these changes requires a clear understanding of how Payday Super will impact your cash flow. To support businesses in this transition Employment Hero  has created a dedicated Payday Super Cash Flow Calculator, a practical tool that helps you accurately forecast the additional working capital your business may need once these new payment obligations take effect. By using this calculator, your business can: Predict super payment obligations by pay cycle:  See how much super you need to set aside each payday. Plan cash flow to smooth out the impact:  Identify potential cash flow pressures well in advance. Stay compliant confidently:  Ensure your payroll meets Payday Super requirements without unexpected shortfalls. For expert guidance and tailored solutions to meet Payday Super requirements, contact RTO Accounts . We’re here to help you understand the changes and plan your next steps confidently.