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What small businesses need to know

From 1 October 2026, Australian businesses will no longer be able to add a surcharge to eftpos, Visa, American Express or Mastercard payments.

For businesses that currently pass some or all of their card processing fees on to customers, this means each card transaction will become a direct business cost. Depending on the business, the change could affect margins, pricing and cash flow.

What should businesses consider?

There is no single approach that will suit every business. The right response will depend on your margins, customers, pricing and the payment methods you offer.

Build card processing costs into your pricing

One option is to factor card processing costs into your overall prices or hourly rates rather than adding a separate fee at checkout.

Businesses should consider the effect of any price changes on customers and competitiveness. The changes also cannot be avoided simply by renaming the surcharge as a “card handling fee” or offering a “cash discount”.

Consider the broader cost of getting paid

Card processing fees are only one part of the cost of getting paid.

Different payment methods can also affect how quickly customers pay, cash flow, administration, reconciliation and the time spent following up outstanding invoices.

A payment method that costs slightly more but results in faster payment may still make commercial sense when those wider benefits are taken into account.

Review the payment methods you offer

Businesses may also want to review the range of payment methods available to customers.

Direct debit and PayTo, for example, can have lower processing costs than card payments while still offering relatively fast settlement.

What if you use Xero?

Businesses using Xero to send invoices with a card surcharge applied should be aware that the surcharge will stop automatically from 1 October.

Card payments will continue as normal, but customers will no longer be charged the processing fee on top of the invoice. Unpaid invoices already issued with a surcharge will also be updated so customers paying on or after 1 October pay the invoice amount without the additional fee.

The change presents the opportunity to review your payment arrangements, pricing and the effect processing costs may have on margins and cash flow.

Flor-Hanly is a Xero Certified Advisor. Contact our team if you would like help reviewing your Xero payment settings, pricing or cash flow and preparing your business for the card surcharge changes.

• Read more: RBA surcharge ban: What it could mean for your business and how Xero is helping »

Up to $1.5 million available for Queensland manufacturers under grant program

Queensland manufacturing businesses have a new opportunity to secure matched funding to invest in innovation, technology and advanced manufacturing projects.

Round 2 of the Transforming Queensland Manufacturing Grant Program is now open, with $12.5 million available in this funding round. The broader program will provide $79.1 million over three years to support small to medium-sized Queensland manufacturers.

Key points for manufacturers

• Funding available: $12.5 million in Round 2
• Maximum grant: Up to $1.5 million per eligible business
• Funding arrangement: Matched funding
• Regional focus: At least 50% of Round 2 funding is allocated to regional Queensland manufacturers
• Who it targets: Eligible small to medium-sized manufacturing businesses
• Purpose: Supporting innovation and the transition towards advanced manufacturing

Applications close: 25 November 2026

View the Transforming Queensland Manufacturing Grant Program and application details »

What is the Transforming Queensland Manufacturing Grant Program?

The Transforming Queensland Manufacturing Grant Program is designed to help Queensland manufacturers invest in projects that advance their operations and support greater use of innovative and advanced manufacturing technologies.

The Queensland Government has committed $79.1 million to the program over three years. Round 2 provides $12.5 million, with individual eligible businesses able to apply for matched funding of up to $1.5 million.

For regional manufacturers, the program may be particularly relevant, with at least half of the funding in this round specifically allocated to regional Queensland manufacturers.

What types of outcomes is the program targeting?

The program focuses on helping small and medium-sized manufacturers innovate and move towards advanced manufacturing. This can include adopting new technologies and improving the capability and competitiveness of manufacturing operations.

Manufacturers considering a significant investment in new technology, innovation or advanced manufacturing capability should review the eligibility requirements and consider the funding needed for their proposed project before applying.

Need help assessing the financial impact?

Before committing to a major manufacturing investment, it can be useful to consider how the project will affect your business’s cash flow, financing requirements, tax position and longer-term plans.

Talk with Flor-Hanly about the financial implications of your proposed investment and how it could fit within your broader business strategy.

Source: Queensland Government | Business Queensland

FBT changes for salary sacrificed work-related benefits

From 1 April 2027, the Fringe Benefits Tax (FBT) treatment of some salary sacrificed work-related benefits will change.

Changes to FBT will affect employers that provide certain salary sacrificed work-related benefits to their employees.

If you provide salary sacrifice work-related benefits that are currently exempt from FBT or eligible for a reduced FBT liability, Flor-Hanly can help you understand the potential implications of these changes.

The 'otherwise deductible rule' and salary sacrificed benefits

Employers will no longer be able to use the 'otherwise deductible rule' to reduce their FBT liability for expense payment fringe benefits that are:

• work-related
• covered by the standard deduction, and
• provided through a salary sacrifice arrangement.

This includes when employers reimburse or make a payment for work-related expenses, such as:

• home office expenses
• home phone or internet expenses
• self-education expenses.

Employers can continue to use the otherwise deductible rule to reduce their FBT liability for expense payment fringe benefits that:

• aren't covered by the standard deduction
• are covered by the standard deduction but aren't provided under a salary sacrifice arrangement.

FBT exemptions for some salary sacrificed items

Certain work-related items will no longer be exempt from FBT when provided through a salary sacrifice arrangement, including:

• portable electronic devices
• computer software
• protective clothing
• briefcases
• tools of trade.

Substantially identical function exemption

Employers will be able to provide employees with more than one eligible work-related item in an FBT year, even if it has the same or substantially identical function and continue to receive the exemption, where the items:

• are mainly used for work purposes; and
• are not provided through a salary sacrifice arrangement.

This removes the current limit of one exempt item per employee per FBT year and extends the exemption to all employers, not just small businesses.

Supporting our employer clients

We can help employers stay compliant by reviewing any work-related benefits you provide to employees, by helping you understand:

• how these changes affect your FBT position and the amount of FBT you'll need to pay
• what records to keep
• how to calculate FBT liability correctly
• your lodgement and payment obligations for the 2027–28 FBT year.

Call Flor-Hanly on 07 4963 4800 for fringe benefits tax help and advice.

Source: Australian Tax Office

New Tax Reforms Pass Parliament

The Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 has passed Parliament, introducing several tax changes for businesses from 1 July 2026.

Key changes

• Loss carry-back returns: Eligible companies will be able to offset tax losses against tax paid in the previous two years, potentially generating a refundable tax offset
• $20,000 instant asset write-off: The $20,000 threshold will become permanent for eligible small businesses with turnover of less than $10 million
• Property tax treatment: Further provisions clarify how the recent negative gearing and CGT reforms apply where property interests change through inheritance or relationship breakdown, including certain new-build properties.

Business and agribusiness owners should consider how the changes may affect tax planning, asset purchases and cash flow from the 2026-27 income year.

If you have questions about how these measures apply to your business, contact Flor-Hanly on 07 4963 4800.

Source: Australian Government, Next tranche of tax reforms pass Parliament, Treasury Ministers, 20 August 2026.

From 1 July 2027, companies will be required to provide their directors’ director identification numbers (director IDs) to ASIC.

The new reporting requirements are intended to strengthen the accuracy and integrity of company records. Here is what companies need to know and how to prepare.

How the director ID changes will work

Companies will provide director IDs to ASIC through existing company reporting processes, including:

• as part of the company’s annual review
• when notifying ASIC of changes to directors’ details.

Over time, the companies register will show whether a company has provided director IDs for its directors.

The changes are designed to:

• reduce the risk of fraud and identity misuse
• improve the accuracy of company records
• make company directors easier to identify
• improve the quality and usability of registry information.

ASIC will release further information and guidance before the requirements commence on 1 July 2027.

What should companies do now?

Companies should check that their registered details and directors’ information are complete and accurate.

Taking action now may help prevent reporting delays or other issues when the new requirements begin. In particular:

• check that the company’s registered details are current
• confirm that all current directors are listed
• correct any inaccurate names, addresses or contact details
• ensure each director has applied for and retained their director ID.

Find out more about director ID compliance

ASIC will continue to publish information and guidance ahead of 1 July 2027. We will provide further updates as more details about the reporting process become available.

If you need assistance reviewing or updating your company details, contact our team.

Read more on the ASIC website at Director identification numbers (director IDs) »

Tax reform implementation for small business and startups

The Federal Government is announcing further implementation details for its tax reform package, following an intensive first round of post-Budget consultation.

The details provide more clarity and confidence to investors, more support for small businesses and more incentives for innovation. 

Further CGT concessions have been announced for small businesses and startups, and retaining the original intent of policies.

This means all 2.7 million active small businesses and 98% of all active businesses will be eligible for generous CGT concessions.

Having completed a substantial amount of the consultation already flagged in the Budget papers, the government is now releasing a consultation paper on startups while also providing further implementation details around Australia's tax reforms, including: 

• Announcing an increase to the turnover threshold for the existing small business 50% active asset CGT reduction from $2 million to $10 million. This will mean all 2.7 million active small businesses and 98% of all active businesses will be eligible for this concession.
• Releasing a consultation paper on the design of a new Innovative Business CGT Concession that would provide a 50% CGT discount to early-stage investors including founders and employee share scheme participants of innovative start-up businesses.
• Confirming that income from all types of testamentary trusts will be exempt from the minimum tax, including future discretionary testamentary trusts, with implementation details included in further consultation.
• Confirming amendments will be made to the legislation in the Senate rather than in legislative instruments, to provide certainty on as much of the implementation details of the Government’s tax reforms as possible.

Small businesses concessions

As outlined in the Budget, the Government will retain the existing four small business CGT concessions which allow small businesses to reduce, defer or completely eliminate their capital gains tax liability when they sell active business assets. 

The Government will introduce amendments to the legislation currently before the Senate to give effect to this change.

Consultation on arrangements for innovative start-ups

The Government will release a consultation paper on the design of a 50% CGT discount for early-stage investors including founders and employee share scheme participants of innovative start-up businesses. 

The Innovative Business CGT Concession will provide individuals, partnerships and trusts holding eligible shares a choice between a 50% discount or indexation and the minimum tax for gains accrued from 1 July 2027.

Subject to further consultation, eligible shares must be new equity issued by a company that is under 10 years old (or under 15 years in certain circumstances), under $50 million in turnover and meets principles-based innovation criteria, and must be held for five years before being sold, with a lifetime cap on the concession.

This will ensure that early investors in innovative start-ups that start with a low or zero cost base still receive a significant discount on a future capital gain, supporting the continued growth of Australia’s start-up and venture capital ecosystem.

The Government will consider expanding eligibility to 15 years for start-ups in sectors such as biotech and medtech that can take longer to commercialise.

Consultation is open until 10 July and will inform the final design, to be implemented in a later tranche of tax reform legislation. The paper is available on the Treasury website »

These measures build on the existing significant measures to support business risk taking and investment in the Budget, including two-year loss carry back, loss refundability for start-ups, expanded venture capital incentives, and making the $20,000 instant asset write off permanent.

The additional support for small business has an indicative cost of $300 million over the forward estimates and brings the total new tax measures to support businesses in the tax reform package to over $3.8 billion. The proposed arrangements for start-ups have an indicative cost of $125 million over the forward estimates. Financial impacts will be finalised in the next Budget update in the usual way, following consultation.

Amendments to the legislation

The Government will make targeted amendments to the legislation currently before the Parliament, removing ministerial powers to provide certainty on as much of the implementation details as possible. 

The Government intends to move the following amendments in the next sitting fortnight, subject to parliamentary negotiations:

• Extend the eligibility of the 50% active asset reduction to more businesses by increasing the turnover threshold from $2 million to $10 million.
• Ensure deductible gift and donations reduce capital gains that are subject to the minimum tax, to maintain tax incentives in relation to charitable giving. 
• Provide the list of income support payments that qualify for an exemption from the minimum tax on capital gains. 
• Embed the calculation method for the Working Australians Tax Offset in legislation. 
• Remove ministerial powers no longer needed to give effect to the Government’s policy intent.

The Government also intends to remove ministerial discretion in relation to the following aspects of the Bill, with legislation to be introduced later this year following consultation:  

• Definition of new builds that are eligible to choose a 50% discount on gains accrued from 1 July 2027, and eligible to access negative gearing for properties purchased after 12 May 2026, consistent with the details outlined in the Budget. 
• Definition of the types of housing investment exempt from the limits on negative gearing, including affordable housing.

The definition of new builds and housing investment exemptions will be moved into primary legislation in a future tranche of tax reform legislation. Final details, including treatment of certain types of accommodation and housing investment, will be subject to consultation. 

These details reflect the targeted consultations and engagements undertaken since the release of the Budget, consistent with the Government’s commitment to engage with stakeholders on implementation.

Trusts reform and other elements of the tax reform package

The Government will continue to develop further tranches of legislation to implement the Budget tax reform package, consistent with the process for legislating other large tax reform packages in the past.

This will include the release of a consultation paper on implementation of the minimum tax on discretionary trusts in the coming weeks which will provide further details on the proposed implementation approach.

In response to targeted consultation following the Budget, the Government will exempt income from all types of discretionary testamentary trusts from the minimum tax provided they are established for genuine testamentary purposes.

The exclusion will be limited to income from assets of the deceased estate. For discretionary testamentary trusts established on or after 1 July 2028, the exclusion will only apply to trusts that can only benefit individuals and income tax exempt entities.  

There is no tax on inheritances or deceased estates but the government is taking this step to put this beyond doubt.

This exemption has an indicative cost of $50 million over the forward estimates. Financial impacts will be finalised in the next Budget update in the usual way, following consultation.

In addition, the Government will introduce legislation to give effect to reforms that make loss carry back and the instant asset write off for small business permanent.

Source: Australian Government. (18 June 2026) Tax reform implementation for small business and startups. Prime Minister of Australia (pm.gov.au)

Help for people directly affected by a natural disaster in Queensland, such as floods.

Support announced for people affected by the rainfall and flooding in North Queensland

Services Australia provides Australian Government assistance such as Australian Government Disaster Recovery Payment and Disaster Recovery Allowance when there’s a declared natural disaster event.

Financial help is available for people affected by the North Queensland rainfall and flooding from 2pm local time 13 January 2026. 

The state government provides assistance which may include grants and loans. You may be eligible for both Australian Government and state government natural disaster support.

Australian Government support

To find what Australian Government support is available, select the event affecting you.

Support for North QLD Rainfall and Flooding, December 2025-January 2026 announced »

Financial support will be available from 2 pm local time on 13 January 2026 for people affected by the rainfall and flooding in North QLD that started in December 2025.

Queensland Government support

The Queensland Government provides support for people affected by a natural disaster. This may include:

• individual and business grants
• loans for small businesses and non-profit organisations
• help from a Community Recovery Officer.

Check what emergencies and natural disaster assistance you can get on the Queensland Government website.

The Australian Government and state and territory governments work together to provide support if you’re affected by an eligible natural disaster event. Read more about how government disaster support works.

Other support

If you’ve been affected by a disaster, there may be other payments or support services to help you. Read about other support and additional help for natural disasters.

Source: Services Australia

Hardship assistance available to flooded North Queensland residents, small business disaster loans activated

• Flood affected Queenslanders can now access Personal Hardship Assistance for their disaster recovery
• Support available includes emergency payments to purchase food, clothing and medicine and also targeted grants for vulnerable residents
• Disaster assistance loans have also been activated for impacted small businesses in designated north and north-west local government areas, including low interest loans up to $250,000 to support recovery efforts and up to $100,000 to help sustain operations.

The Federal and Queensland State Governments have made Personal Hardship Assistance payments available to flood-hit residents battling the prolonged monsoon trough over north-west Queensland.

This includes payments of $180 for individuals and up to $900 for a family of five or more for emergency essentials like food, clothing and medicine, and other assistance targeting low income, uninsured residents.

LGAs include Burke, Carpentaria, Cassowary Coast, Cloncurry, Croydon, Flinders, McKinlay, Mount Isa, Palm Island, Richmond, Townsville, Winton and Yarrabah.

Additionally, eligible primary producers in Winton Shire can now access disaster loans up to $250,000 and freight subsidies up to $5,000, while Doomadgee and Etheridge Councils will be supported with their counter disaster operations and essential asset repairs.

All financial support is being funded by the Federal and State Governments under the joint Commonwealth-state Disaster Recovery Funding Arrangements (DRFA).

• Information on Personal Hardship Assistance, eligibility, and how to apply, can be found at www.disaster.qld.gov.au or by calling the Community Recovery Hotline on 1800 173 349
• For disaster loan info and applications, small businesses and primary producers can visit www.qrida.qld.gov.au or phone 1800 623 946. 

Personal Hardship Assistance available to eligible residents:

• Emergency Hardship Assistance – $180 per person, up to $900 for a family of five or more to purchase immediate essentials like food, clothing and medicine
• Essential Services Hardship Assistance – $150 per person, up to $750 for a family of five or more to assist with immediate needs following the loss of essential services at home for more than five consecutive days
• Essential Household Contents Grants – income-tested assistance for uninsured residents, up to $1,765 for individuals and up to $5,300 for couples or families to replace destroyed essential household contents such as bed linen and whitegoods
• Structural Assistance Grants – up to $80,000 for uninsured, income-tested owner-occupiers towards the repair or replacement of a disaster damaged dwelling to return it to a safe and habitable condition
• Essential Services Safety and Reconnection Scheme – income-tested grants to help uninsured residents reconnect damaged services like electricity, gas, water or sewerage. Up to $5,000 per household.

Disaster loans for eligible small businesses and primary producers:

• Disaster Assistance Loans – up to $250,000 to repair or replace damaged assets like plant and equipment, to repair premises or to replace stock and maintain liquidity
• Essential Working Capital Loans – up to $100,000 to allow for the continuation of operations, including paying wages, rents or rates, purchasing fuel, fodder and water, and transporting livestock and produce.

For the full list of activated LGAs and support available please visit Activations on the Queensland Reconstruction Authority website.

Source: Queensland Government

Queensland small and family businesses can now apply for the latest Business Growth Fund grants

Registrations of interest open now and close at 5pm, 30 January 2026.

Small and family businesses can apply for grants of between $50,000 and $75,000 with a co-contribution of at least 50 per cent of the total project cost required.  

• The program is backed by $3.5 million, with eligible small businesses able to apply for up to $75,000 in funding
• The grant supports small and family businesses across all industries to purchase specialised equipment to deliver business growth.

The Business Growth Fund provides direct financial support for small and family businesses to grow, increase productivity and efficiency, increase market share or develop and expand export opportunities. 

Funding can be used to purchase: 

• Production equipment to meet otherwise unachievable growth demand
• Advanced manufacturing or digital equipment and systems
• Advanced logistics systems and equipment. 

Minister for Small and Family Business Steve Minnikin said small and family businesses were critical to our communities, creating jobs and supporting local communities.  

The full program eligibility guidelines and conditions are available at business.qld.gov.au/growthfund where registration of interest can also be submitted by 30 January 2026. 

Small and family businesses generate $131 billion for the Queensland economy and employ more than 1 million Queenslanders. 

Source: https://statements.qld.gov.au/statements/104040

Fair Work Commission delivers real wage boost for low-paid workers

The Fair Work Commission (FWC) has announced a 3.5% increase to Australia’s National Minimum Wage, lifting the hourly rate to $24.94, or $948 per week for a full-time employee. The new rates will come into effect from 1 July 2025.

The increase surpasses the current inflation rate of 2.4%, resulting in a real wage boost for the nation’s lowest-paid workers. Minimum rates under modern awards will also rise by 3.5%, directly impacting the pay of approximately 2.6 million employees across Australia.

Employers must prepare for the new rates to apply from the start of the new financial year, alongside the planned increase to the superannuation guarantee from 11.5% to 12%.

FWC President Justice Adam Hatcher confirmed that the rise aims to address the ongoing squeeze on household budgets caused by inflationary pressures. Since July 2021, many minimum-wage and award-reliant workers have seen a reduction in the real value of their wages.

Is your business ready for the change?

Flor-Hanly’s experienced team in Mackay can help you assess the impact of wage changes and manage payroll compliance in the new financial year.

Call us on 07 4963 4800 to ensure your business is ready for 1 July.

• Related reading: Annual Wage Review 2025 decision »