Being a company director comes with serious responsibilities under the Corporations Act 2001 and broader law in Australia. According to CPA Australia’s “6-point checklist”, directors must be clear about their obligations and avoid unintentional breaches. 

1. Act in the best interests of the company. Directors must act honestly, in good faith, for a proper purpose and prioritise the company ahead of personal interests. 
2. Meet your Australian Securities & Investments Commission (ASIC) obligations. That includes paying ASIC fees, lodging required statements, making timely changes to company records and passing annual solvency resolutions. 
3. Ensure the company can pay its debts as they fall due. Directors must monitor cash-flow, superannuation and tax liabilities and act before the company becomes insolvent. 
4. Keep proper company records. The company must maintain accurate financial and corporate records and the director should ensure they reflect the true financial position. 
5. Monitor financial health and take action when needed. Directors need to be alert to signs of financial distress and should seek professional advice early to avoid personal liability for trading while insolvent. 
6. Have appropriate insurance. Directors and Officers (D&O) insurance helps protect directors from personal exposure arising from breaches of duties or investigations. 

In essence: if you are stepping into a directorship role, you need to treat the company as a separate legal entity, be proactive about compliance and governance, and stay informed. Non-compliance isn’t only poor business practice—it can lead to personal liability, civil penalties or even criminal offences.

Why Rental Property Owners Should Act on Solar Rebates

The Solar Victoria rental-property rebate lets eligible landlords receive up to $1,400 per property for installing solar-PV systems at up to two rental properties each financial year — and you also have the option of an interest-free loan matching the rebate, reducing upfront costs significantly. 

To qualify:

• Your renters’ combined household taxable income must be under $210,000. 
• The property value must be under $3 million and must not have previously received a solar-PV rebate under the program. 
• You must sign a formal Rental Provider-Renter Agreement allowing installation and access. 
• Installations must be via an authorised solar retailer, and using only eligible products. 

The process involves: obtaining quotes, signing the agreement with the tenant, verifying eligibility, installing the system within specified timeframes, and then your rebate is applied directly to the retailer invoice.

You and your tenant also have the flexibility of a co-contribution model where the tenant may cover up to 50 % of the interest-free loan monthly repayments (e.g., ~$14.58/month) or you can cover the full repayment yourself. 

Once installed and connected to the grid, the system may lower your tenant’s energy bills and increase property appeal, while you enjoy a cleaner asset and governmental support reducing your capital burden. Make sure you still check feed-in tariffs and ensure your retailer handles the grid connection correctly. 

For further information please click this link:
https://www.solar.vic.gov.au/solar-rebates-rental-properties

In recent months, we’ve seen a significant increase in audit activity from the Australian Taxation Office (ATO) and other government agencies. With compliance reviews and audits becoming more frequent and detailed, now more than ever, it’s important to ensure you’re protected against the potential costs involved.

That’s why we’re highly recommending that all our clients consider taking out Audit Shield Insurance.

Audit Shield Insurance provides peace of mind by covering the professional fees that may arise if your business or personal tax affairs are subjected to an audit, enquiry, investigation, or review. These processes can be time consuming and costly even if your records are completely accurate and up to date.

Given the increased focus on data matching, targeted industry reviews, and stricter compliance measures, the likelihood of being audited has risen significantly this year. Audit Shield ensures that should this occur, you won’t be left with unexpected expenses for the time and work required to manage the audit on your behalf.

If you haven’t already taken out Audit Shield Insurance, we strongly encourage you to do so. It’s a small investment for significant peace of mind and financial protection. Please note that reminders regarding Audit Shield Insurance will be sent out again within the next couple of weeks, so keep an eye out for further communication.

For more information or to arrange cover, please contact our office — we’ll be happy to guide you through the process.

Farm Management Deposits: A Smart Tool for Income Smoothing and Tax Planning

Australia’s primary producers know that farming income rarely stays steady. Droughts, floods, commodity prices, and market shifts can all lead to large swings from one year to the next.
The Farm Management Deposit (FMD) scheme is a powerful tool that helps smooth out those ups and downs — both for tax and Centrelink purposes.

What Is a Farm Management Deposit (FMD)?

An FMD allows eligible primary producers to set aside pre-tax income in good years and withdraw it in low-income years.
The amount you deposit becomes a tax deduction in the year of deposit, and the amount you withdraw is included in your taxable income when it’s taken out.

This makes FMDs a valuable tool to:

• Reduce tax in strong years,
• Boost cash flow in lean years, and
• Smooth income for Centrelink benefits like Youth Allowance or Farm Household Allowance.

Key Rules and Eligibility

Who can use FMDs:
Only individuals carrying on a primary production business in Australia are eligible. (Companies, trusts, and partnerships themselves cannot hold FMDs, but individual partners can.)

Deposit limits:
Up to $800,000 per person (as at 2025).

Deposit conditions:

• Must be made from primary production income.
• Minimum deposit $1,000.
• Must be held for at least 12 months to retain the tax deduction (unless withdrawn due to exceptional circumstances such as drought or disaster).

Withdrawals:
Amounts withdrawn are assessable income in the year of withdrawal.

Example: How FMDs Smooth Income and Tax

Outcome: Income and tax obligations are stabilised across years — helping manage both taxation and Centrelink assessments more effectively.

Why FMDs Matter Beyond Tax

Centrelink assesses taxable income when determining eligibility for benefits like Youth Allowance, Family Tax Benefit, or Farm Household Allowance.

By strategically using FMDs, farmers can:

• Lower taxable income in a strong year, keeping within eligibility thresholds.
• Manage the impact of fluctuating profits on family benefits.
• Support youth allowance eligibility for children studying away from home.