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According to the most recent Banjo Loans SME Compass Report, 38 per cent of SMEs reported that inflation was the top issue keeping them up at night, while 46 per cent reported it was their largest barrier to growth.

“SMEs are balancing growth ambitions with survival strategies. Inflation is the dominant pressure, while cash flow concerns are intensifying, forcing businesses to prioritise viability over expansion,” the report read.

“And while inflation is clearly the dominant pressure shaping SME behaviour, cash flow pressures are intensifying for many. Many SMEs are prioritising viability and survival over growth.”

The report found that SMEs were cutting costs and hiking their prices in response to inflationary pressures. Over the past 12 months, 43 per cent reduced expenses while nearly half had raised prices for the first time since 2022.

Small business owners don’t expect the pressure to let up any time soon, with 67 per cent expecting inflation to continue limiting business growth over the next 12 months.

Cash flow pressures were also hampering growth, Banjo Loans found. Almost half (45 per cent) of businesses said they had delayed growth opportunities over the past year due to cash flow concerns.

Confidence had also softened heading into 2026, with 86 per cent of SMEs expecting to meet revenue targets, down from 89 per cent. Banjo Loans also found that businesses were more sensitive to interest rates, with 59 per cent of SMEs saying they would make business changes if rates moved.

The survey also identified signs of a ‘two-speed’ SME economy, with retail operators struggling more while communications, media and telecommunications businesses reported stronger cash stability and confidence.

In retail, 83 per cent identified inflation as a key barrier to growth, while 66 per cent said economic uncertainty was holding them back.

Banjo Loans also found that many SMEs were financially vulnerable, with half of Australian SMEs at risk of running out of cash within six months if new revenue stopped today. While 69 per cent could survive at least three months without income, only 19 per cent could operate for more than a year.

“Across Australia, SMEs continue to grow and hit revenue targets, but cash reserves remain tight and uncertainty is high,” Guy Callaghan, chief executive of Banjo Loans, said.

“The Compass data shows that SMEs are resilient but cautious and need to carefully manage finances as they navigate business in 2026.”

25 March 2026
Emma Partis
accountantsdaily.com.au

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Start-up costs are the one-off expenses required to set up your business. Different businesses will have different start-up costs, but they often include things like:

• premises (purchase, fit out and connecting utilities)
• materials and equipment
• licencing and registration fees
• logo design and website development

Step through this process to get an idea of how much it will cost to start your business.

Separate start-up costs from other costs

Break down all the costs from your business plan into:

• one-off costs – establishment costs such as licence fees and insurance
• equipment outlay – all necessary equipment to be used in the business over the next few years (for example,
• assets such as equipment, tools)
• working capital –the funds you'll need to cover your running costs during the initial set-up stage of your business (until you start to turn a profit)

The following lists are some of the most common start-up costs for many businesses. Whether they apply to you will depend on the nature of your business.

Keep in mind that some costs, such as insurance, can recur on a regular basis even if they're considered 'one-off'.

Click here to open a Guide to Business Start-Up Costs

Common start-up costs

Setting up your premises

Common costs relating to your business premises are:

• site design and architectural plan
• basic premises modifications – electrical, lighting, painting, security system, ventilation system
• fit-out, kitchen installation, bathroom construction and plumbing (gas and water)

Compliance needs

There are many licences that can come with starting a business, including:

• business name registration fees
• vehicle registration fees
• licences – for example, a liquor licence or council permits for business signage and footpath trading
• Food Handling Certificate, Responsible Service of Alcohol (RSA) Certificate
• insurance – for example, public liability, contents, and WorkCover

Marketing expenses

It's important to factor some marketing into your plans so you can get customers to your business. Some things to consider are:

• graphic design for logos and signage
• opening marketing, including advertising
• setting up an online presence (website design, web hosting fees, SSL certificate and registering a domain name)

Staff costs

Often businesses will need to employ staff from the beginning. If you need staff, you should consider:

• recruitment costs including jobs ads and agency fees
• wages and salaries
• long service leave entitlements
• equipment (phone, computer, printer)
• uniforms

Professional service fees

You might need to employ professional services when setting up your business. Some fees to consider are:

• legal fees
• accounting – bookkeeper or accountant
• financial adviser
• banking costs or loan fees
• internet and phone installation

Factor in your running costs

It's normal for new businesses to take time to make a profit. You can make this period less stressful by factoring a period of your running costs into your start-up.

Running costs can include:

• wages
• rent or lease
• utilities
• mobile phone and landline bills
• internet access
• buying stock
• shipping and delivery charges

The 'Detailed profit' sheet here lists some common running costs.

Business Victoria

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Contributions will be considered “on time only” if the fund receives them within seven business days of the wage payment (an extended timeframe of 20 business days applies for some specific situations). 

When errors occur, the updated super guarantee charge rules will generally apply more quickly for each error. 

Also, those still using the ATO Small Business Superannuation Clearing House will also need to choose and implement an alternative arrangement before that service closes altogether on 1 July 2026.

Employers will need to start reviewing your wage and super payment/processing technology and processes in anticipation.

Employees should start seeing super contributions credited to their accounts after each pay rather than quarterly, but will need to ensure their super fund details are up to date, particular if starting a new job. 

Acctweb

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Visit the National Emergency Management Agency website for links to state or territory disaster recovery websites. Disaster assistance payments may be available in officially declared disaster events.

The Australian Government Disaster Recovery Payment (AGDRP) is a one-off non-means tested payment of $1,000 per eligible adult and $400 per child, while the Disaster Recovery Allowance (DRA) provides short-term income support for up to 13 weeks to eligible individuals.

Contact your insurance company as soon as you can, ideally within 24 hours. Most insurers have emergency hotlines and may offer emergency cash advances within days or temporary accommodation funds if your home is uninhabitable.

Major Australian banks have hardship teams that can pause loan repayments, waive fees or temporarily extend credit. Don’t wait until you’ve missed a payment – early communication protects your credit rating and opens doors to assistance.

Also, for those looking to donate to disaster relief funds, only make donations for disaster relief to reputable charities as scammers often impersonate well-known charities through door-knocking or cold-calling and create fake websites and social media pages to deceive you in the wake of a disaster. You can verify a charity’s registration on the Australian Charities and Not-for-profits Commission website, and report suspected scams to Scamwatch.

Acctweb

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Your trading terms should include details on the goods or services you provide, customer payment obligations, and how you manage risk, liability and potential disputes.

Your business faces risk if you use outdated trading terms. Knowing when to update these terms is important so that you can stay compliant and operate effectively. This article explains the signs that your trading terms need updating, the legal risks of non-compliance, key elements of modern terms, and the importance of professional review.

Signs Your Trading Terms Need Updating

You should regularly review your trading terms as a crucial business practice. If you experience recurring issues or your business has evolved, it is time for an update.

Update your trading terms when you:

• introduce new products or services;
• expand to sell overseas;
• change your payment processes or delivery methods; and
• modify your business operations in any significant way.

If you have not updated your terms for several years, they likely do not reflect current laws or your business operations. Terms that were compliant years ago may no longer be suitable.

Legal Risks of Outdated Terms 

Using outdated terms exposes your business to risks:

1. Unfair Contract Terms: A significant risk is non-compliance with the Unfair Contract Terms (UCT) regime under the Australian Consumer Law (ACL). This came into effect on 9 November 2023. The law considers a term unfair if it: causes a significant imbalance in rights, is not necessary to protect legitimate interests or would cause detriment if enforced. An example of a UCT is a term that allows only one party to unilaterally end the contract. A term deemed as a UCT may be unenforceable and void.
2. Consumer Guarantees: If your business sells to consumers (rather than other businesses), outdated terms may contain clauses that attempt to limit consumer rights under the ACL. For example, a clause stating ‘no refunds or returns under any circumstances’ is illegal. It denies consumers their right to a remedy when a product is faulty. Such clauses are void. Relying on them can expose your business to legal action from consumers and the ACCC, which regularly audits Australian businesses for non-compliance.
3. Unprotected Intellectual Property (IP): If your business has developed new branding, software, or other valuable IP, your old terms may not provide adequate protection. They might fail to specify ownership of IP created during service delivery. This leaves your proprietary information vulnerable to misuse or infringement.

Key Elements in Trading Terms 

You should ensure your trading terms cover several key elements: 

• Payment Terms: Your terms must specify the price of your goods or services, accepted payment methods, payment due dates and any interest applied to late payments.  
• Parties’ Obligations: The terms should accurately describe the goods or services you provide. They must also outline the obligations of both your business and the customer, including delivery terms, who holds the risk for loss or damage during transit, and any warranties you provide.
• Intellectual Property and Confidentiality: Your terms should clearly state who owns any intellectual property created and should obligate both parties to keep confidential information private.
• Dispute Resolution: This outlines a clear process for handling disagreements between the parties. This typically involves requiring parties to attempt negotiation or mediation before resorting to costly court proceedings.
• Limitation of Liability: Your terms should clearly define the extent of your business’ liability if something goes wrong. This includes specifying any caps on liability amounts and excluding liability for certain types of loss (such as indirect or consequential losses). However, you must ensure these limitations comply with the UCT regime and cannot exclude liability that Australian law requires you to accept, such as liability for breaching consumer guarantees.
• Termination: This clause establishes how and when either party can end the contract, including required notice periods and consequences of termination, such as final payment of outstanding invoices and return of any materials

Key Takeaways

Successfully managing your business requires a proactive approach to your trading terms. Regularly review and update your terms to reflect changes in your business and the law. Ensure your contracts comply with the Unfair Contract Terms regime to avoid significant financial penalties. By investing in professionally drafted and reviewed trading terms, you can build trust with your customers and protect your business’ legal and financial interests. 

Danielle Henry
12 February 2026
legalvision.com.au

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New findings from research house Ideally reveal that more than a third of young Australians check their superannuation balance rarely, some only once a year. 

More than one in four can’t name their fund.

The survey, conducted by the Super Members Council (SMC), involved more than 1,300 Australians and found that lack of knowledge and the length of time until retirement were among the reasons.

Managing excessive super fees alone could make a significant difference to an individual's balance at retirement, with an SMC model having shown that simply paying 0.1 per cent more in fees could reduce super savings by $14,000, and paying 1 per cent more could make someone $128,000 worse off by retirement.

Some young Australians were disengaged from their super because retirement felt far away, with 33 per cent of young Australians having said that super didn’t yet feel like their money. In a recent episode of The Lawyers Weekly Show, Veronica Barbetta of UniSuper noted that younger professionals weren’t managing their super to its full potential.

She commented: “The earlier you engage with and think about your superannuation and make active choices, the better your outcome in retirement will be.”

Past research by SMC revealed that those with better super comprehension were six times more likely to take action to improve retirement savings. Currently, 46 per cent of young Australians are interested in being properly educated in super by their fund, according to the latest survey.

Super literacy was also not where it needed to be. SMC CEO Misha Schubert noted that more needed to be done to communicate how to make the most of super.

“Too many Australians risk sleepwalking into retirement with less money than they should have because they haven’t felt confident to engage with their super,” she said.

According to the SMC, one in four workers was not being paid all their super, costing 3.3 million Australians almost $6 billion a year. 

Other advice from the survey included consolidating super into one account, thereby avoiding multiple fees, as well as selecting a top-performing super fund and, if possible, making extra contributions. The SMC model showed that an average 30-year-old could have $67,000 more at retirement by sacrificing $20 a week.

Schubert added: “Small differences in super can add up to life-changing sums over time. That’s why staying engaged with your super from when you start working until you retire is so important.”

23 February 2026
Amelia McNamara
accountantsdaily.com.au

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RSM has raised the alarm about a little-known ATO practical compliance guide, PCG 2021/4, which has landed unsuspecting professionals with higher personal income tax bills.

The PCG, which was introduced in December 2021 and updated in June 2024, outlines the ATO’s compliance approach towards the allocation of professional service firm profits to individual practitioners, and how this is assessed for tax purposes.

The ATO released this guidance following concerns that professional service practitioners’ earnings were not being appropriately taxed as personal income.

Kristy Binns, RSM Australia corporate tax leader, said the PCG applied to professional services businesses that used structures such as trusts to distribute profits.

“Historically, professional firms enjoyed flexibility in using trusts and other structures to reduce tax, but that era is now over,” she said.

“The guideline requires that a fair share of profit, at least 50 per cent for a full equity partner, be reported as personal income.”

Binns noted that the ATO’s definition of “professional services” went beyond the usual suspects of doctors, lawyers and accountants, for the purposes of this guide. Instead, it applied to anyone who charged for expertise.

The PCG would result in higher personal tax bills for affected professionals, RSM noted. For example, a partner earning $1 million who previously took $200,000 personally and distributed the rest through a trust would have to report at least $500,000 as personal income.

Binns said the PCG would cause structuring and liquidity dilemmas for affected individuals, who would have to alter the way they engaged in tax planning.

“The ripple effects are significant. Mid-tier partners who once relied on trusts for negative-geared investments now face dilemmas,” Binns said.

“Some may sell assets or move them into personal names, which solves cash-flow issues but removes asset protection, increasing exposure if professional legal claims arise.”

For example, she recalled encountering an engineering firm partner that had previously only reported 30 per cent of their profits as personal income, and had to restructure to minimise ATO audit risk.

“We recently came across a partner in an engineering firm who was in the red zone, reporting only 30 per cent of profit personally.”

“They had to restructure to a 50 per cent personal and 50 per cent trust distribution. This reduced audit risk but increased personal tax by $70,000 annually.”

Binns encouraged professionals to ensure they were compliant with the updated PCG. While restructuring could lead to higher tax bills, she warned that ignoring the ATO’s guidance could lead to amended assessments and penalties later down the line.

“The best approach is to accept the new reality and work with trusted advisers to ensure compliance.”

“The immediate effect is higher personal tax, but ignoring the guideline could lead to even greater costs if the ATO challenges allocations.”

26 February 2026
Emma Partis
accountantsdaily.com.au

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It's a common misconception that a robust Shareholders Agreement will unilaterally dictate the treatment of a business interest in a property settlement. While these agreements are undoubtedly crucial commercial documents, the Family Law Act 1975 provides the courts with broad powers to achieve a “just and equitable” outcome, often looking beyond the strict letter of commercial contracts.

This can lead to surprising results for business owners who believed their interests were fully protected.

The Court's broad powers and discretion

The Family Court operates under the Family Law Act, which empowers it to make orders “altering the interests of the parties…in the property” and to do so where it is “just and equitable.” This broad discretion means that the Court is not strictly bound by commercial arrangements if upholding them would lead to an unfair outcome in a property settlement.

Consider the common scenario where a business interest is primarily held by one spouse, perhaps with a meticulously structured Shareholders Agreement in place. While the agreement might outline buy-out clauses or restrictions on share transfers, the Family Court will assess this asset as part of the total matrimonial pool, regardless of legal ownership. This assessment involves:

• Identifying and valuing the asset pool

The business interest, whether held individually, jointly, or through a corporate structure, must be disclosed and valued. This can involve complex valuation methodologies, particularly for private companies or those with unique assets like intellectual property or trailing commissions (as seen in mortgage broking or certain financial services businesses).

A business owner might perceive their business as worth millions due to its lifestyle-funding capacity, but a family law valuation, focusing on transferable value, may yield a significantly lower figure.

• Assessing contributions

The Court will then consider the contributions of both parties to the acquisition, conservation, and improvement of all assets, including the business. This goes beyond direct financial input. Non-financial contributions, such as homemaking, parenting, or supporting a spouse's career, are equally valued. If one spouse's efforts at home allowed the other to dedicate significant time and energy to building the business, this can be considered a contribution to its value.

• Considering future needs

Finally, the Court assesses the future needs of both parties, taking into account factors like age, health, income-earning capacity, and care of children. A disparity in future needs can lead to an adjustment in the division of assets, even if a Shareholders Agreement purports to define specific entitlements.

When commercial agreements come under scrutiny

Shareholders Agreements, partnership agreements, and buy-sell agreements are designed to govern the internal workings of a business and the relationships between its owners. However, in family law, their interpretation extends to how they impact the overall property settlement.

• Enforceability: While commercially binding, the Family Court has powers to set aside or vary agreements if they are deemed unfair or if there was a lack of full disclosure when they were made. This is particularly relevant if a Shareholders Agreement was entered into in anticipation of, or during, a relationship breakdown and could be seen as an attempt to defeat a family law claim.
   
• “Sham” arguments: In certain circumstances, the Court might look behind the corporate veil to determine if a company or trust is merely an “alter ego” of one or both parties, rather than a genuinely independent commercial entity. If the Shareholders Agreement effectively controls a structure deemed to be an alter ego, its terms might be less influential.
   
• Third-party involvement: Where a business has shareholders who are third parties (e.g., parents, other business partners), the Court may be reluctant to make orders that would unduly prejudice their interests. However, if those third parties are perceived to have acted in concert with a spouse to shield assets, the Court's powers may extend to binding them to orders, provided certain conditions are met under the Family Law Act. This could involve complex accrued jurisdiction arguments.
   
• Control vs legal ownership: A key area of scrutiny is the degree of actual control a party exercises over the business, irrespective of their formal shareholding. If a spouse is the effective decision-maker, director, or guiding force behind the business, the Court may attribute a higher interest to them than their strict shareholding suggests, potentially impacting how the business is valued or dealt with in the property pool.

Potential pitfalls for business owners

• Underestimating the Family Court's reach: Business owners often mistakenly believe their commercial agreements offer complete immunity from family law claims. The reality is that the Family Court views the entire financial landscape, not just isolated business structures.
   
• Poor timing of restructuring: Restructuring a business, altering shareholdings, or changing trust arrangements when a relationship is already “rocky” can be viewed as an attempt to defeat a family law claim. This can lead to adverse inferences and even court orders setting aside such transactions.
   
• Lack of full disclosure: Failing to provide complete and transparent financial disclosure regarding a business interest, including all relevant commercial documents like Shareholders Agreements, can lead to serious consequences, including cost orders or the setting aside of any agreement reached.
   
• Disregarding non-financial contributions: Overlooking the non-financial contributions of a spouse to the business's success or the family's well-being can lead to an unjust and inequitable assessment of the parties' respective entitlements.
   
• Inflated self-valuation: Business owners often have an emotional attachment to their ventures, leading to an overestimation of their market value in a family law context. A realistic, independent valuation from a family law expert accountant is critical.

Proactive strategies for business owners

• While no Shareholders Agreement can fully insulate a business from family law considerations, proactive steps can significantly mitigate risks:
   
• Early legal advice: Seek advice from a lawyer specialising in the intersection of family and commercial law at the earliest sign of relationship difficulties, long before separation. This allows for strategic planning within legal boundaries.
   
• Review and update agreements: Regularly review Shareholders Agreements to ensure they reflect current circumstances and consider potential family law implications. Incorporate provisions that contemplate separation or divorce.
   
• Transparent financial management: Maintain scrupulous financial records and ensure complete transparency regarding all business interests.
   
• Consider a Binding Financial Agreement (BFA): While not a silver bullet, a BFA, properly executed with independent legal advice, can provide a framework for dealing with business interests in the event of separation, offering a degree of certainty.
   
• Realistic valuations: Obtain an independent business valuation for family law purposes to understand its true value in that context.

In conclusion, Shareholders Agreements are vital commercial tools, but they do not operate in a vacuum when a relationship breaks down. Business owners must understand that the Australian Family Law Courts will scrutinise these documents through the lens of fairness and equity, potentially leading to outcomes that differ from strict contractual terms. Proactive planning and expert advice are therefore indispensable in safeguarding business interests in the face of family law disputes.

Kristy-Lee Burns is a partner at Owen Hodge Lawyers.
23 February 2026
accountantsdaily.com.au

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