The NSW Government has opened Stage 1 of the Innovative Manufacturing Adoption Fund (IMAF), providing matched funding grants of $10,000 to $50,000 to help eligible NSW manufacturers investigate the adoption of advanced manufacturing technology.

The $6 million fund will be delivered in two stages:

• Stage 1: $1 million for discovery and feasibility
• Stage 2: $5 million for implementation, expected to open in early 2027.

What can Stage 1 fund?

The grant can fund external expertise to investigate:

• Robotics and automation
• Digital manufacturing and Industry 4.0
• Additive manufacturing
• Precision machining
• Advanced materials and processing
• Electronics and mechatronics
• Advanced quality and inspection systems.

Eligible activities include feasibility studies, business case development, pilot projects, prototyping, process testing and assessment of new equipment, software or systems.

Who is eligible?

The business must:

• Be an Australian corporation with an active ABN
• Be headquartered in NSW
• Operate a manufacturing facility in NSW
• Have turnover of at least $1 million in each of the previous two financial years
• Employ 10–100 FTE employees
• Operate in an eligible manufacturing industry
• Be supplying, or intending to supply, a target sector
• Provide at least a 50% cash co-contribution.

Key dates

Applications close 6 October 2026 at 5:00pm.

Importantly, applications are assessed as received and funding is allocated first-come, first-served, subject to eligibility and assessment.

Click here to learn more and apply

📌Frequently Asked Questions: 

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

I’ve spent some time over the past couple of days listening to various experts talk about funding for business growth.

Here are the core takeaways from those sessions..

Customer Revenue: The Ultimate Funding Source

The best way to fund your business is still from customers.  Not only is this cash, but more importantly, it is validation.

General funding principles

• Fund Allocation: Carefully evaluate the quantum of the funding you need and plan exactly how you will deploy it.
• Unit Economics: Thoroughly understand your numbers and key metrics. Pay close attention to the efficiency of deployed capital and your exact payback period.
• Pathway to Profitability: If you are not currently profitable, define a clear path to get there. Always build in a time buffer for unexpected delays. Investors want to see assuredness around your operational plan without overconfidence.
• Reverse Engineer Milestones: Calculate your raise to ensure it gives you enough runway to hit a concrete proof point to underpin future funding rounds.
• Continuous Preparedness: Always be ready to raise capital or execute an exit strategy. Opportunities appear unexpectedly; if you aren’t prepared when an investor reaches out, it creates a poor impression regarding your operational discipline.

What funders are looking for

 When meeting with potential funders, clearly articulate why your business will win in the market:

• The Narrative: Explain “Why you?”, “Why this opportunity?”, and “Why now?”
• Competitive Advantage & Moat: Define what gives you a defensible moat against both direct and tangential competitors (remember, every business has competition).
• Data & Speed as a Moat: A primary moat for modern businesses is controlled proprietary data and the speed at which you translate that data into strategic action.
• Founder Role: As a founder or CEO, your core responsibility is acting as the Chief Inspiration Officer to minimize talent turnover, a vital component of your operational moat.
• AI Strategy: Investors view AI as both an opportunity and a threat. If you do not explicitly show how AI serves as a tailwind for your business, investors will assume it is an unaddressed headwind.
• Technical Due Diligence: Expect investors to conduct rigorous technical due diligence, often utilizing AI tools to evaluate your software architecture and tech stack.

Navigating the Fundraising Process

• Resource Allocation: Capital raising is an iceberg. The pitch deck and initial meetings are just the surface. Fundraising can absorb up to 60% of leadership’s time, so avoid involving too many core team members early on to protect daily operations.
• Portfolio Risk Management: Capital providers must manage portfolio concentration risk. Rejections may stem from an investor’s internal portfolio balance rather than flaws in your business model.
• Strategic Alignment: Partner exclusively with investors you can work with long-term; an investment agreement is only as strong as your first major disagreement.

 Cap Table Management

• Cap Table Modeling: Model your capitalization table prior to every round, paying close attention to preference stacks.
• Maintain a Clean Cap Table: Messy cap tables deter prospective investors. Address issues like inactive ex-founders, former staff, or non-contributing advisors still holding equity (which may require a “cram down”). Minimize complex terms like varied preference rights and valuation caps.

VC Growth Expectations

• For a long time, I worked on VC’s wanting what I call the double triple, tripe double growth rate. 2 years of triple growth and 3 years of double growth.

Let’s say your revenue is $1m.  The double triple, triple double needed your revenue projections to be:

$1m to $3m to $9m to $18m to $36m to $72m.  A growth rate over 5 years of 720%.

• Now many US VCs are talking about 3 times 10x. This is $1m to $10m to $100m to $1,000m.  A growth rate of 1,000% over 3 years.  A much higher bar to attract US VC investment.

Debt funding Considerations

• Predictability: Debt funding relies heavily on revenue and cash flow predictability. Lenders require consistent cash flows to cover serviceability before extending debt facilities.
• True Cost of Capital: Model the complete cost of debt, factoring in origination fees, minimum interest commitments, and warrants. A low headline rate does not always equal the cheapest facility.
• Control Covenants: Review all debt control terms, financial covenants, and restrictions carefully before signing.

 Special thanks to the following industry experts whose insights contributed to these takeaways:

Steve Allan, Founder Blue Corridor Ventures

Rob Paterson, CFO at Employment Hero
James Johnstone, Partner at Bailador Technology Investments
Kal Jamshidi, Managing Director at Mighty Partners

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

When evaluating market competition, most business owners focus exclusively on direct rivals, companies selling the same product to the same customer base.

While monitoring direct competitors is necessary for day-to-day operations, it isn’t enough for long-term survival.

To build a resilient business, strategic planning must account for tangential disruption: indirect shifts in technology, consumer habits, and adjacent markets that quietly erode your market share.

Direct vs. Tangential Disruption: Lessons from Kodak, Blockbuster, and Colgate

When leaders talk about market disruption, they usually point to famous corporate collapses:

• Kodak: How digital camera technology destroyed the traditional film business.
• Blockbuster: How video streaming platforms eliminated the physical video rental store.

However, the story of Colgate provides a much better strategic framework for managing indirect competitive threats.

The Hidden Impact of the Electric Toothbrush

Colgate’s core revenue comes from toothpaste. When electric toothbrushes entered the market, they weren’t viewed as a direct competitor to toothpaste, after all, consumers still needed toothpaste to brush their teeth.

However, electric toothbrushes caused a subtle shift in consumer behavior:

1. Reduced Product Usage: The smaller brush head on an electric toothbrush holds significantly less paste than a manual toothbrush.  Back-of-the-envelope analysis suggests toothpaste usage dropped by as much as 20% per brushing for electric toothbrush adopters.
2. Revenue Risk: Colgate could continue beating all its direct toothpaste competitors while still watching total market demand and revenue fall.

Rather than ignoring the shift, Colgate jumped heavily into the electric toothbrush market, protecting its core business by adapting to how customer habits were changing.

4 Strategic Questions to Uncover Your Market Blind Spots

Effective strategic planning isn’t about predicting the future; it’s about asking better questions about your market environment.

To identify unseen threats before they impact your cash flow and bottom line, ask your leadership team these four strategic questions:

• Product Usage: What subtle shifts could change how much or how often customers use our product or service?
• Technology Risks: What emerging technology could make our core offering less important or redundant?
• Economic Shifts: What macro changes could fundamentally alter the unit economics of our industry?
• Alternative Solutions: Who is solving our customer’s primary problem in a completely different, non-traditional way?

Summary: Watching What Happens Around Your Customer

Your biggest competitor might not be the company offering the exact same product as you. Often, it’s the indirect force changing what your customer needs in the first place.

That’s why good strategic planning isn’t just about watching your competitors.

It’s about watching what is happening around your customers.

📌Frequently Asked Questions: 

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

 If you run an independent small business in Australia, a major $20,000 grant opportunity is currently open.

The Amex Shop Small Grants Program is offering up to 100 grants of $20,000 each, a total funding pool of $2 million, to help independent local businesses innovate, grow, and strengthen their local communities.

Key Details at a Glance

• Grant Amount: $20,000 (inclusive of GST; 100 grants available)
• Applications Close: 6 September 2026
• Project Execution Window: November 2026 – April 2027
• Core Requirement: Physical premises + local community impact

Who Can Apply?

Your business must meet the following baseline criteria:

• Independently owned and operated with an active ABN.
• Started trading on or before 1 January 2025.
• Operating from a permanent, physical premises.
• No more than 20 full-time equivalent (FTE) employees.

Who Is Excluded?

Note that the following entities are specifically excluded:

• Franchises
• Home-based businesses
• Online-only e-commerce businesses

What Can You Use the $20,000 Grant For?

The program funds specific growth and innovation projects rather than routine, day-to-day operational overheads.

To stand out, your application should target initiatives that deliver clear business growth, operational resilience, or an enhanced customer experience. Eligible project categories include:

• Equipment & Technology Upgrades: Purchasing new machinery, POS systems, or operational software.
• Shopfront & Accessibility Improvements: Renovating physical displays, signage, or adding ramp/door accessibility.
• E-Commerce & Digital Marketing: Building new online revenue streams or running targeted customer acquisition campaigns.
• New Products & Diversification: Launching a new product line, service offering, or revenue stream.
• Community Initiatives: Projects that directly support or engage your local neighborhood and supply chain.

Important Note on Expenses: Grant funds cannot be used for standard operating expenses such as rent, utility bills, debt repayments, or existing wages. Project-specific wages may be eligible only if directly tied to delivering the approved project.

How Applications Are Assessed

Applications are evaluated across four primary pillars:

1. Business Impact: How significantly will this $20,000 accelerate your growth or sustainability?
2. Community Impact: Does your business support local suppliers, create local value, or include a dedicated community benefit?
3. Feasibility: Can the project realistically be delivered between November 2026 and April 2027?
4. Program Alignment: Does your project clearly fit the grant’s core mission of innovation and local growth?

How to Apply Before the Deadline

Applications strictly close on 6 September 2026. Because projects cannot start prior to formal approval and agreement execution, planning your proposal early is essential.

Ready to submit your application or review the full guidelines?

👉 Apply via the Official Main Street Australia Amex Shop Small Grants Hub

Applications close 8 October 2026.

📌Amex Shop Small Grants: Frequently Asked Questions: 

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

I am old enough to remember the TV series Lost in Space. In the show, the robot would issue its famous warning: “Danger, Will Robinson!” whenever something was about to go badly wrong.

A similar warning is needed for business owners facing the proposed Apportioning Capital Gains and Capital Losses Determination.

The proposed rules provide a mathematical formula as an alternative to getting a formal business valuation. This formula works backwards from your eventual sale price and assumes your business grew at a constant, compounded daily rate over the entire ownership period.

However, real businesses do not grow in a straight line. Value can be transformed overnight by a major contract, a key client win, or a new product line. If you rely on a mathematical formula rather than an accurate valuation, you could end up paying significantly more in Capital Gains Tax (CGT).

Here is how this plays out across two real-world client scenarios.

Client Scenario A: The Long-Term Business

• Established: 2011 with $100 capital.
• Sale Date: June 2028 for $3.5 million.

Without a Formal Valuation: Under the proposed mathematical CGT apportionment method, the taxable capital gain would be roughly $2.5 million.

With a 30 June 2027 Business Valuation: Client A secures a formal market valuation as at 30 June 2027, coming in at $3.25 million. Under this valuation, the resulting taxable capital gain drops to approximately $1.8 million.

The Result: A $700,000 reduction in taxable capital gain (nearly a 30% tax base saving).

Client Scenario B: The Rapid-Growth Business

• Established: July 2026 with $10,000 capital.
• Sale Date: 2034 for $10 million.
• Key Event: In August 2026, Client B signs a major 10-year commercial agreement that materially alters the value of the business.

Without a Formal Valuation: Because the business was established recently, the default mathematical rules estimate the taxable capital gain close to the full $10 million.

With a 30 June 2027 Business Valuation: A valuation based on the new commercial agreement establishes the business market value at $5 million on 30 June 2027. This changes the resulting taxable capital gain to around $6.6 million.

The Result: Around $3.4 million less in taxable capital gain, saving up to $1 million in actual tax paid.

Why You Need a Formal Business Valuation Before 30 June 2027

Two businesses, two completely different paths, but the exact same core issue: What was the business actually worth on 30 June 2027?

A business can be worth dramatically more on 30 June 2027 than a standard mathematical formula suggests. The valuation you fail to secure on 30 June 2027 could become extremely costly when you eventually sell.

For business owners, 30 June 2027 is not just another end of financial year date. It is a critical valuation milestone that requires advance planning.

Planning Ahead: A New Valuation Solution for 2027

To help business owners navigate these proposed rules and secure their tax position, I am currently developing a formal business valuation offering set to launch in early 2027.

This specialized service will help you establish, document, and defend the actual market value of your business ahead of the key 30 June 2027 date—ensuring you don’t leave your future tax bill to a rigid ATO algorithm.

More details on this launch will be coming soon. If you are already looking ahead at your business valuation strategy, keep an eye on this space.

📌Frequently Asked Questions (FAQ): CGT Apportionment & Business Valuations

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

When you’re behind the wheel, how much time do you spend looking through the windscreen versus glancing in the rear-view mirror?

You probably spend 95% of your time looking forward, only checking the mirror occasionally, just enough to understand what’s behind you before making your next move. There’s a reason the windscreen is bigger than the rear-view mirror.

Now, think about how you run your business:

• How much time do you spend reviewing last month’s financial reports?
• How much time do you spend looking at where your business cash flow is heading?

For many business owners, it’s the exact opposite of driving. Hours are spent preparing and reviewing historical financial statements, while only minutes are spent discussing the future.

Yet the past can’t be changed. The future can.

The Limit of Historical Financial Reports

Historical financial reports are important, they tell you where you’ve been, ensure compliance, and track past growth. But relying solely on backward-looking data is like driving down a highway using only your rear-view mirror.

Past figures won’t prepare you for what lies ahead. Historical financial statements cannot tell you:

• Whether you will have enough cash in bank 13 weeks from today.
• Whether your cash flow can support hiring another key employee.
• How your business will handle a sudden drop in sales, tightening margins, or the loss of a major client.

Moving Forward: Cash Flow Modeling & Scenario Planning

To navigate the future safely, you need forward-looking financial tools. That is where financial forecasting, scenario planning, and proactive cash flow modeling come into play.

Instead of just recording what happened last quarter, forward-looking financial management allows you to:

1. Model “What-If” Scenarios: Test the financial impact of expanding, price changes, or economic shifts before you commit capital.
2. Predict Cash Shortfalls Early: Identify future cash gaps weeks or months before they happen so you can act rather than react.
3. Make Confident Growth Decisions: Know exact numbers on when you can afford new assets, key hires, or strategic investments.

Drive Your Business Forward with an Outsourced CFO

As an outsourced CFO, I don’t spend my time trying to change the past. I work alongside business owners to help them interpret their financial numbers, build reliable forward forecasts, and make smarter decisions about where their business is going.

Stop managing your business out of the rear-view mirror.

Reach out to explore how outsourced CFO services can support your growth.

📌 Frequently Asked Questions: 

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

 If you’re an ACT based startup working on proving your concept, validating your market, or building a prototype, the Innovation Connect (ICON) Grant through the Canberra Innovation Network may be worth serious consideration.

This program is designed specifically for early-stage businesses moving from idea to commercial validation.

What funding is available?

The ICON program provides dollar-for-dollar matched funding between $10,000 and $30,000.

With 50% of the grant funding is paid upfront.  The matched can include project expenditure and/or in-kind founder time.

Eligibility

To be eligible you must:

• Have an ABN
• Be registered and primarily operating in the ACT or surrounding
• Have annual turnover under $2 million

What can the grant funding be used for?

The objectives of the program are to:

• Support innovative, entrepreneurial ideas to a market ready position, including market testing.
• Prove technical or commercial feasibility
• Develop prototypes or functional software
• Support early marketing validation
• Obtain legal, IP or patent advice

You can use the grant funding for the following activities:

• Product development
• Resources and consumables specific to the project activities
• Development of marketing plans and strategies (excluding advertising costs and content)
• Website development or upgrades
• Staff wages and salaries specific to the project activities
• Technical feasibility testing
• Market testing and customer validation exercises

But does not include, general admin costs, major capital expenditure or costs already incurred.

The Application Process

This is not a simple online form submission. It’s a staged process:

Step 1 – Attend a mandatory ICON Introduction Meeting with CBRIN
Step 2 – Submit an Expression of Interest (EOI)
Step 3 – If shortlisted, deliver a 3-minute face to face pitch and Q&A

Want to learn more about the 2026 ACT Innovation Connect (ICON) Grant – Round 2?

Click here to learn more about the ACT Innovation Connect Grant and to book your intro meeting

Applications close 8 October 2026.

📌 Frequently Asked Questions: 

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

Most business owners assume an outsourced CFO’s job is simply to explain financial statements and deliver spreadsheets. But looking strictly in the rearview mirror doesn’t build a resilient business.

When it comes to outsourced CFO strategic decision making, the real value isn’t just explaining past numbers, it’s improving the quality of the commercial decisions that follow.

Case Study: What a True CFO Advisory Session Looks Like

Recently, I spent two hours with two business owners right after finalising their annual financial statements.

The interesting part? We spent about five minutes talking about the past year’s performance.

Why? Because there were no surprises.

Six weeks earlier, through regular cash flow monitoring and financial forecasting, we had already reviewed the figures, discussed the likely outcome, and understood what they meant. Today’s meeting simply confirmed what we already knew.

With the reporting sorted, we moved directly to the high-stakes operational questions that actually impact business growth and risk management.

1. Navigating Key Client Risk & Centralised Procurement

Their largest customer had just completed a supplier review, shifting purchasing from individual business units to a centralised procurement function. The business effectively had to re-apply to remain an approved vendor, with zero guarantees.

Rather than waiting passively for a verdict, we established proactive decision triggers:

• Scenario A: What precise operational changes occur if they are removed from the supplier panel?
• Scenario B: What pivot actions take place if they remain on the panel, but revenue drops below a sustainable threshold?

The result: No panic. No scrambling. The owner responsible for that business unit left the room with a clear, pre-agreed action plan for either outcome.

2. Pivoting Unprofitable Ventures Before Sinking Capital

We then turned to a new business venture they were eager to launch. The financial modeling was clear: in its current form, the venture wasn’t commercially sustainable.

Rather than a simple “go/no-go” verdict, we explored a strategic pivot:

• How could they retain the core strengths and unique expertise of their team…
• …while reframing the offer to solve a problem the market is actively paying for right now?

By the end of the session, the founders had a validated, lower-risk direction to investigate and test before committing major capital.

What Should You Expect From an Outsourced CFO Service?

A traditional accountant tells you where your money went. A strategic outsourced CFO services partner works alongside you to navigate where your business is going next.

Sometimes the most valuable asset in your business isn’t another detailed balance sheet, it’s an experienced sounding board to help you make confident decisions.

📌 Frequently Asked Questions: 

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

One of the most common payroll mistakes businesses make is assuming that if someone is a contractor, there is no obligation to pay superannuation.

Unfortunately, that’s not how Australia’s superannuation laws work.

With Payday Super now active, requiring super to be paid on regular pay days rather than quarterly, now is an ideal time to review your contractor arrangements.  Underreporting or misclassifying a worker means sudden, compounding liabilities on every pay run.

ACN Contractors (Pty Ltd Companies)

Where your contract is with an incorporated business (for example, a Pty Ltd company with an Australian Company Number (ACN)), the company is responsible for meeting any superannuation obligations for its own employees or directors. 

ABN Contractor Super Rules (Sole Traders)

For sole traders, the Australian Taxation Office (ATO) applies rules that are different from employment law.  Just because a person who does some work for you:

• has an Australian Business Number (ABN),
• submits invoices, and
• calls themselves a contractor,

does not automatically absolve you from paying superannuation on their behalf.

In respect of superannuation, the ATO operates under section 12(3) of the Superannuation Guarantee (Administration) Act 1992.  Under section 12(3), a person working under a contract that is wholly or principally for their labour, may be treated as an employee for superannuation purposes, even though they are a contractor and invoice you.

Importantly, the ATO looks at the substance of the working arrangement, not simply what the contract calls the relationship

The ATO generally considers the following questions:

✔️ Is the contractor being engaged mainly for their labour and skills?

✔️ Are they required to perform the work personally?

✔️ Are they being paid for their time and effort rather than simply delivering a completed result?

If the answer to these questions is generally “yes”, there is a strong possibility that superannuation contributions are required.

The Cost of Missing Contractor Superannuation Obligations

If superannuation should have been paid but wasn’t, businesses may become liable for:

• unpaid Superannuation Guarantee contributions;
• the Superannuation Guarantee Charge (SGC);
• interest; and
• additional administrative penalties.

Because these liabilities can accumulate over several years, reviewing contractor arrangements before issues arise can save significant time and money.

A Simple Reminder

Before assuming a contractor is not entitled to super, ask yourself:

• Am I contracting with an individual sole trader (ABN) or a company (ACN)?
• Am I paying primarily for that person’s labour?
• Are they required to perform the work themselves?
• Am I paying for their time and skills rather than simply purchasing a completed result?

If you’re unsure, it’s worth reviewing the arrangement against the ATO’s guidance.  A few minutes spent checking today may prevent an expensive Super Guarantee liability tomorrow.  

This article provides general information only and should not be relied upon as legal or taxation advice.  Businesses should consider obtaining professional advice based on their specific circumstances.

📌 Frequently Asked Questions: 

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

⚠️ The First Payroll You Process Could Be the Most Dangerous Payroll You’ll Run All Year.

Why?

The first payroll of the 2027 financial year is where two significant changes collide.

⚖️ One could expose your business to an underpayment claim.

💰 The other could quietly squeeze your cash flow.

📈 Mistake #1 – Thinking It’s Just a Wage Increase

Every July I hear the same question.

“What’s the wage increase this year?

It’s the wrong question.

The better question is:

“What do I need to change in my payroll?”

The Fair Work Commission’s Annual Wage Review isn’t simply about applying one percentage increase across your workforce.

This year’s decision includes structural adjustments to some award classifications, meaning not every employee’s minimum pay rate changes in the same way.

If you simply apply a blanket increase, you could still end up underpaying employees.

That’s particularly risky if you employ staff under modern awards, pay annual salaries, or rely on above-award rates.

Before processing your first payroll, ask yourself:

✔ Have all employees been correctly classified?

✔ Has your payroll software been updated with the new award rates?

✔ Are casual rates, penalties and allowances correct?

✔ Do your annual salary arrangements still satisfy award obligations?

✔ Are employees paid above award still genuinely above the new minimum requirements?

🚨 Remember…

An honest mistake is still an underpayment.

💸 Mistake #2 – Treating Payday Super as “Someone Else’s Problem”

Most of the discussion around Payday Super has focused on compliance.

I think that’s missing the real issue.

💵 Cash flow

As businesses transition to paying super with every payroll, money that once stayed in your bank account until the quarterly due date will begin leaving much sooner.

For some businesses, that won’t be a problem.

For others, it will expose cash flow weaknesses and raise the question, will you have the cash available every payday to pay it.

🛑 Don’t Treat This Payroll as “Business as Usual”

Before you click Process Payroll, stop and ask yourself:

✔ Are employee classifications correct?

✔ Have the new award rates been applied?

✔ Are casual loadings, penalties and allowances accurate?

✔ Do annual salary arrangements still pass the compliance test?

✔ Have you considered the impact of more frequent super payments on your cash flow?

Payroll isn’t just about paying your employees.

It’s one of the biggest compliance and cash flow risks your business manages.

Get this payroll right and you’ll probably never think about it again.

Get it wrong and you could be dealing with underpayments, back pay, penalties or cash flow pressure for months to come.

That’s why the first payroll you process this financial year could be the most dangerous payroll you’ll run all year.

📌 Frequently Asked Questions: The July 2026 Payroll Collision

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

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Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052