How Do I Write Legally Compliant Terms and Conditions for My Business?

Terms and conditions bind your customers only where they actively accept them, so a tick box at checkout holds up where a footer link often does not.

Summary

Terms and conditions bind your customers only where they actively accept them, so a tick box at checkout holds up where a footer link often does not.

The Australian Consumer Law guarantees acceptable quality, fitness for purpose and due care and skill, and any term excluding those guarantees is void.

The unfair contract terms regime covers standard form contracts with consumers and with small businesses, and penalties against a corporation reach $50 million.

This article explains how Australian business leaders write terms and conditions that a court will enforce.

Tips for Businesses

Present your terms before checkout, and require customers to scroll through before ticking accept. Keep a record of each version and the date each customer agreed. State how you will notify customers of changes, and let customers terminate instead of accepting. Check your terms do not contradict your privacy policy or your advertising. Review your terms annually.

Terms and conditions form a legally binding contract between an Australian business and its customers, covering payment, liability and dispute resolution. Australian courts enforce terms only where the customer actively accepts them, so a tick box at checkout works where a link buried in a website footer often does not. The Australian Consumer Law also sets a floor no contract can lower. Consumer guarantees on acceptable quality, fitness for purpose and due care and skill apply regardless of what your terms say, and any term excluding them is void. The unfair contract terms regime goes further, and the ACCC can seek penalties reaching $50 million against a corporation that relies on an unfair term.

This article explains what makes terms and conditions enforceable in Australia, how the Australian Consumer Law limits what you can include, the mistakes that make terms unenforceable, and how the unfair contract terms regime applies to your small business customers.

What Are Terms and Conditions?

Terms and conditions are a legally binding contract between your business and your customers. They outline the rights and responsibilities of both parties when customers purchase your products or use your services. These terms govern everything from payment obligations to liability limitations and dispute resolution processes.

Your terms and conditions should be clear, fair, accessible and enforceable. Customers must be able to find and understand them before making a purchase or using your service.

Why Do You Need Terms and Conditions?

Terms and conditions protect your business in several ways. For example, they:

limit your liability for certain losses,

set out refund and return policies, and

establish how you handle disputes.

Without proper terms, you may face difficulties enforcing important elements of your business’ relationship with customers, such as payment or intellectual property.

The Australian Consumer Law (ACL) provides consumers with certain guaranteed rights that you and your business cannot contract out of. However, terms and conditions allow you to define other aspects of your business relationship within legal boundaries.

Key Elements That Make Terms and Conditions Legally Enforceable

Simply having terms and conditions is not enough. Courts will only enforce terms that meet specific legal requirements, such as:

1. Clear Acceptance by Customers

Customers must actively agree to your terms before they become binding. For online businesses, use a clickwrap agreement where customers tick a box confirming they accept your terms before completing a transaction. Avoid browsewrap agreements where terms are only linked in a website footer, as courts often find these unenforceable.

2. Reasonable Opportunity to Review

Customers must have a reasonable chance to read your terms before agreeing to them. Presenting lengthy terms seconds before purchase or hiding them in small print may render them unenforceable. Provide terms in an accessible format with readable font sizes and clear headings.

3. Clarity and Plain English Writing

Courts interpret ambiguous terms against the party that drafted them. Write your terms in plain English that your average customer can understand. Avoid unnecessary legal jargon and complex sentence structures.

Be specific about your customers’ obligations. Clearly set out what customers must do, by when, and how. This includes clear payment deadlines and cancellation processes. Vague obligations create room for disputes and make terms harder to enforce.

4. Compliance with the ACL

The Australian Consumer Law (ACL) automatically grants consumers a set of non-excludable guarantees. These include guarantees that

goods are of acceptable quality, fit for purpose, and match their description; and

services are provided with due care and skill and within a reasonable time.

Any term that attempts to exclude or limit these guarantees is void and unenforceable. Where a business breaches a consumer guarantee, the ACL entitles consumers to a range of remedies including repair, replacement, or refund for goods. For services, consumers are entitled to a resupply of services or compensation.

5. No Unfair Terms

Courts will not enforce terms that are unfair. The ACL prohibits unfair contract terms in standard form consumer contracts. Standard form consumer contracts are those drafted by a business where the customer has limited opportunity to negotiate the terms, for example website terms and conditions.

A term is unfair if it causes significant imbalance in parties’ rights, is not reasonably necessary to protect your business’ legitimate interests, and would cause detriment to your customers if enforced.

Examples include clauses allowing your business to change terms without notice to your customer, or terminate customer contracts without any reason. Courts can impose penalties for unfair contract terms, including the terms being unenforceable, or a pecuniary penalty for corporations that is the greater of:

$50,000,000;

if the Court can determine the direct or indirect financial gain a company obtained from breaching the law, 3 times that value; or

if the Court cannot determine the direct or indirect financial gain a company obtained from breaching the law, 30% of the corporation’s adjusted turnover during the breach turnover period for the contravention.

6. Unfair Contract Terms in Small Business Contracts

The unfair contract terms regime does not stop at consumer contracts. The regime also covers standard form contracts with small businesses. Your terms and conditions can therefore breach the law even where you only sell to other businesses.

A contract counts as a small business contract where the other party employs fewer than 100 people, or turns over less than $10 million a year. The old contract value threshold no longer applies under the Australian Consumer Law, so a large contract with a small counterparty still falls inside the regime.

The same unfairness test applies. A court asks whether the term creates a significant imbalance, whether your business needs the term to protect a legitimate interest, and whether the term would cause detriment. A term that fails that test is void, and the rest of the contract continues to bind both parties.

Suppliers commonly trip on automatic renewal clauses, unilateral price variation clauses and broad indemnities that run one way only. Review these clauses in your business to business terms, not only in your customer facing ones.

7. Proper Notice of Changes

If you reserve the right to change your terms, specify how you will notify customers. Common methods include email notification or posting updates on your website with reasonable notice periods. Customers should have the option to reject changes by terminating the contract.

8. Consistency With Other Documents

Your terms must align with other business documents like your privacy policy and marketing materials. Contradictions create ambiguity and may render terms unenforceable. If your advertising promises certain features, your terms cannot contradict these representations.

What Are Common Mistakes to Avoid?

Many businesses copy terms from competitors or use generic templates without customisation. This approach can leave gaps in terms your business might require or include irrelevant clauses. Your terms must reflect your specific business model and industry.

Do not attempt to exclude rights that ACL guarantees to consumers. Such clauses are void and may expose you to penalties.

Failing to update your terms regularly is another common error. As your business evolves or laws change, your terms must adapt. You should review them at least annually.

When Should You Seek Legal Advice?

Consider getting legal advice when drafting terms for the first time, entering new markets or offering new products. Complex businesses with significant risk exposure should always have lawyers review their terms.

If customers frequently dispute your terms or if you face regulatory scrutiny, professional review is essential. The cost of proper legal advice is typically far less than the cost of defending disputes arising from poorly drafted terms.

“Most of the terms and conditions I review fail on acceptance, not on drafting. A business spends real money getting the clauses right, then buries the link in the footer and cannot prove the customer ever agreed. Fix the checkout flow first, because the strongest clause in the world does nothing if the contract never formed.”

Key Takeaways

Well-drafted terms and conditions protect your business and set clear expectations for customers. They must comply with the Australian Consumer Law, be fair, and address your specific business needs. Keep your terms current and enforceable by ensuring customers actively agree to them, writing in plain English, maintaining proper records and completing regular reviews.

By: Briarne Mead, Lawyer | legalvision.com.au

Paid parental leave super contributions have started

From July 2026, the new Paid Parental Leave Superannuation Contribution (PPLSC) has started.

From July 2026, the new Paid Parental Leave Superannuation Contribution (PPLSC) has started. This is a government-funded super payment for eligible parents who receive Paid Parental Leave (PLP) for a child born or adopted from 1 July 2025.

Under the scheme, the ATO pays the contribution into your super fund as a lump sum after the end of the financial year in which you received PLP (so expected to begin from the start of the 2026-2027 financial year.

The PPLSC is calculated by applying the superannuation guarantee rate of 12% to the PLP paid to you, and also includes a nominal interest component for delay in super payment to payment of PLP paid.

The contribution is taxed at 15% in the super fund and counts towards your concessional contributions cap. If you also make salary sacrifice or personal deductible contributions, the PPLSC may need to be considered in your contribution planning for the year the lump sum is received.

Given, the ATO will pay the contribution to the fund on file with the ATO, you may need to check personal and super details are up to date with the ATO, services Australia and your fund.

Steps to close a business

If the business is no longer profitable, and is unlikely to be profitable in the future, your best option may be to close your business.

1. Review your decision to close your business

The end goal of your business is to generate profit. If the business is no longer profitable, and is unlikely to be profitable in the future, your best option may be to close your business.

Before you do this, you may want to consider seeking help or advice from a business adviser to see if you can put your business back on track.

the Australian Tax Office website has a business viability assessment tool you can use to determine if your business is still financially viable.

2. Take care of your staff

After your business has closed down you may still have obligations to your employees. PAYG, Fringe Benefits Tax, superannuation and Eligible Termination Payment final payments often need to be made even after the doors have closed.

Your employer responsibilities will differ depending on whether a worker is an employee or independent contractor. For detailed instructions on calculating all final payments for employees and independent contractors, use information from the ATO's When a worker leaves page.

3. Communicate the closure

You should:

organise meetings with people who will be immediately affected by closing the business including:

business partners

bank managers

guarantors

suppliers

let your customers know about your closure. You can:

post a notice on your shop front

post a notice on your business's website

personally advise customers

advise customers through your business's social media channels

send out an email campaign

if you're closing a service business, it may be worthwhile speaking to your competitors with the aim of on-selling your client base, or arranging ongoing support for key clients

4. Bankruptcy and liquidation

For businesses in financial difficulty the last step in paying off creditors and dealing with debt is sometimes a declaration of bankruptcy or liquidation of business assets. The main difference between bankruptcy and liquidation is that a bankrupt is usually an individual or sole trader, and liquidation generally applies to a company in receivership.

The Commonwealth Government has recently changed Australia’s insolvency system. The changes introduced new processes from 1 January 2021. These changes aim to reduce complexity, time, and costs for small businesses. They include:

businesses can keep trading under control of its owners while a debt restructuring plan is developed

a new, simplified liquidation pathway suited for small businesses

streamlining of measures for the insolvency sector to meet the demand and needs of small businesses

Applying to become a bankrupt

The process begins by looking at how the individual's assets can be sold and the proceeds distributed to pay debts. If there are not sufficient assets to cover all debts to creditors, a split will be made on a percentage basis. Bankruptcy can be initiated by either a creditor or an individual debtor.

Becoming a bankrupt is not automatic. You or your professional adviser must apply formally to the Australian Financial Security Authority (AFSA), the government body responsible for the administration of bankruptcy and insolvency in Australia. It's a good idea to follow the steps below.

read AFSA's Prescribed Bankruptcy Information guide: you'll need a signed acknowledgement you've done this as part of your application

download AFSA forms to be completed, such as the debtor's petition

if you're a company read the Insolvency Information Sheets from the Australian Securities and Investments Commission (ASIC) website

inform the Australian Tax Office (ATO) when you have ceased trading

seek advice from an accountant or lawyer experienced in bankruptcy and insolvency matters.

Liquidation

Liquidation can happen to a company when its creditors (the main people the company owes money to) pass a vote to have the company liquidated. This follows a period when the company has been put into the hands of an administrator in an attempt to salvage the financial situation of the business. If one of the creditors applies to wind up the company, a liquidator can be appointed to manage the creditors' interests and deregister the company.

The liquidator has a responsibility to all creditors, not just those who applied to wind up the company. The liquidator's basic duties are:

collecting and selling the company's assets

investigating and reporting to creditors the reasons for company failure

determining liquidation costs and the order of payment

reporting to appropriate authorities and applying for deregistration of the company

Where there are not enough funds to pay all creditors, payment is usually divided proportionally among them, and in the order described above. Capital is only returned to shareholders if there are surplus funds. In all cases, the costs of the liquidator are met first.

It is the liquidator's job to get as much money as possible from the company, including suing any company directors through a creditor, if it can be shown they were trading when the company was insolvent (unable to pay its debts on time).

Read the insolvency for directors factsheet on the ASIC website.

5. Settle your legal obligations

You will need to:

visit the ASIC website to cancel your business name, or to deregister your company

make sure you’ve completed all your transactions with the Australian Taxation Office (see: ATO guidance on closing a business) and the Australian Business Register website before you cancel your tax registrations e.g. cancelling your ABN

make sure all your personal expenses are recorded separately from your business expenses

if you're leasing the premises, know your obligations if you close before the end of your lease.

go through your list of insurance policies and cancel them if no longer needed

make sure you disconnect utility services, cancel local government licences or permits and close business bank accounts

seek legal or accounting advice where required

6. Keep business records

Even after your business closes, you must keep your business records, including financial records, customer records and employee records.

the Australian Tax Office (ATO) also provides a record keeping evaluation tool for you to assess your business' record keeping and information management.

you can find out more about record keeping on the ATO website

How Our Diets have Changed.

Check out the this visualization, which tracks the evolution of dietary calorie intake from 1930 to 2026.

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Taxpayer given 35% penalty for BAS recklessness

Following an application for a refund of nearly $94,000, the Administrative Review Tribunal has set aside an application for the remission of a 50 per cent penalty assessment. 

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A partnership consisting of four family members – Mr B, Ms H, Ms Z and Mr D, anonymised under the pseudonym BHZD – attempted to get a 50 per cent GST shortfall penalty remitted for the development of a townhouse on anonymised land at “10 X Street”, into 10A X Street and 10B X Street.

In her 23 July 2026 decision at the Administrative Review Tribunal, general member Joanne Dunne decided to set aside the remission of the penalty assessment of a shortfall penalty on the unpaid GST.

Following the development of 10B X Street, Mr B and Ms H moved in, and it became their residence. The tribunal heard that under their initial tax agent Mr N, they “sought a refund of the withheld GST amount of $93,568 on the basis that the property was Mr B and Ms H’s main residence”.

However, in a 2 June 2021 letter, the Commissioner of Taxation advised BHZD that GST was payable on the sale of 10B X Street.

“I do not accept that Mr B took all the steps he should have to check the GST treatment of 10A X Street before simply telling Mr G (the second accountant) what to do in the September 2021 BAS,” Dunne said.

“Mr B’s knowledge of the GST outcome for 10B X Street in January/February 2021. Mr B’s knowledge that the facts at 10A X Street were exactly the same as those for 10B X Street, yet he said the GST treatment was different.

“Mr B said in evidence that he “couldn’t believe” the “instruction” to tell the conveyancer not to apply GST to the sale of 10A X Street and to send the notice to the purchaser saying as much. Mr B said in cross-examination that he “absolutely challenged” the sale of 10A X Street with Mr N.”

The general member said that she was puzzled by this evidence.

“I took [it] to be trying to convince me that the Applicant did not know about the audit or, more particularly, he did not have a copy of all of the correspondence, including the Commissioner’s 2 June 2021 letter,” Dunne said.

“Mr B accepted in cross-examination by Mr Lee that the different GST treatment of 10A X Street and 10B X Street was ‘surprising’. That is putting it mildly. It defies common sense, as the facts relating to the two properties were exactly the same. Mr B knew this. The Applicant knew from February 2021 that no refund had arisen in relation to 10B X Street. Why would 10A X Street have a different GST treatment?”

In late 2023, the commissioner issued a penalty assessment which imposed a penalty on BHZD at 50 per cent for recklessness, totalling $54,965.50.

Dunne said she had concluded that Mr B misunderstood the GST position entirely.

On the basis that the taxpayer was unable to demonstrate that all relevant taxation information was provided to Mr G, the general member ruled that the 50 per cent shortfall penalty is to be set aside and replaced by a 35 per cent penalty.

The case citation: BHZD and Commissioner of Taxation (Taxation) [2026] ARTA 1376 (23 July 2026)

28 July 2026
Carlos Tse
accountantsdaily.com.au

SMEs warned as ATO ramps up tax debt collection

One insolvency specialist has emphasised the importance of small businesses engaging their accountants to stay on top of their tax debts in light of increased ATO scrutiny of the SME market.

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The ATO is setting its sights on small business collectable debt following the Australian National Audit Office’s (ANAO) recommendation that the Tax Office establish volume targets to collect the $65 billion tax shortfall from the SME market (for 2024–25), with the insolvency specialist saying that too many business owners are putting their “head in the sand” with their tax debts.

The insolvency specialist said that these business owners are putting their personal finances at risk by not seeking advice until the ATO takes punitive action against them.

Speaking to Accountants Daily, Jirsch Sutherland partner and insolvency specialist Malcolm Howell (pictured) said: “The ATO has a responsibility to recover outstanding tax debts and this audit is another warning shot over the bow for small businesses.”

Howell noted that many small businesses do not realise that they are losing money.

“No business [advice] ever seems to have a proper cash flow [system], and that's a real problem. They don't realise they're actually losing money on a daily basis.”

“These people were letting the tax debt accumulate in the background while they pay those creditors that they need to pay to keep the business going on a day-to-day basis, and it might be a bit of a COVID mentality that … they still think the ATO is going to be approachable and negotiable on the tax,” he added.

Following the reduction of tax collection activities during COVID-19, the ATO recommenced further actions in 2023–24. 

This included “garnishee actions, directions to pay, director penalty notices and disclosure of business tax debt actions,” ANAO said in its ATO Management of Small Business Collectable Debt 2024–25 report.

“[Some small business owners] bury their head in the sand, and they think that they can pay later, and later never comes,” Howell said.

He stressed that businesses often realise they are in trouble only after they receive a director penalty notice (DPN), and that just because the ATO has not sent any warnings yet does not mean you are in the clear with your tax debts. 

“That doesn't mean that you're not on the radar, that just means that you haven't heard from them yet, and they'll strike at any moment.”

“If you're not seeing your accountant who stays on top of your tax debts and other debts, if you're not realising that [your tax debt is] creeping up, that's what hits you between the eyes … one day, it's going to come out of the woodwork, and you'll get that DPN when you least expect it.”

16 July 2026
Carlos Tse
accountantsdaily.com.au

Does Your Small Business Need to Follow AML Privacy Rules?

Compliance with new anti-money laundering (AML) laws may subject your small business to additional privacy obligations it did not face before.

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 If your business will be required to comply with the Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML Act), you also need to consider your privacy obligations when handling personal information. Even if you operate a small business that would normally be exempt from privacy regulation, the new AML laws could change this.

Specifically, businesses that are reporting entities under the AML framework must comply with the Privacy Act 1988 (Privacy Act) when collecting, using, storing or disclosing personal information for AML purposes. This includes businesses with an annual turnover of less than $3 million.

Understanding how these two frameworks interact is important if your business performs customer due diligence, identity verification or transaction monitoring. This article explains how the AML and privacy frameworks interact and what small businesses need to do to comply with both.

When Does the Privacy Act Apply to Your Business?

The Privacy Act generally regulates how organisations handle personal information through the Australian Privacy Principles (APPs). While many small businesses are normally exempt, that exemption does not apply when you handle personal information to meet AML obligations. If your business is a reporting entity under the AML Act, you must comply with the Privacy Act for activities connected with those obligations.

Activities that may trigger privacy obligations include:

• collecting personal information for customer due diligence;
• storing information for AML record-keeping purposes;
• monitoring transactions and reporting suspicious matters; and
• conducting personnel due diligence for employees working in AML roles.

Collecting Personal Information for AML Compliance

To meet your AML obligations, your business will often need to collect personal information about customers, employees or other individuals. Under the APPs, you must limit the information you collect to what is reasonably necessary for your functions and activities. In the AML context, this typically means collecting information required for customer due diligence or risk assessments.

During onboarding, you will commonly collect:

• full name;
• date of birth;
• residential address; and
• identification document details.

However, the requirement to collect information for AML purposes does not give your business unlimited authority to gather any data you want. You should always consider whether the information you are collecting is genuinely necessary for compliance. Collecting excessive or irrelevant information may increase privacy risks and create unnecessary cybersecurity exposure.

Customer Notification

When your business collects personal information, you must notify individuals about how their information will be handled. This is typically done through a collection notice and your privacy policy.

A collection notice should explain:

• your organisation’s identity and contact details;
• why you are collecting the information;
• whether the collection is required by law;
• how the information may be used or disclosed; and
• the consequences if the information is not provided.

In the AML context, this may include explaining that information is collected to comply with the AML Act. However, you do not need to provide a collection notice where doing so would be inconsistent with your tipping off obligations under the AML Act.

Using and Disclosing Personal Information

Under the APPs, personal information should generally only be used or disclosed for the primary purpose for which it was collected. For AML activities, this may include:

• verifying a customer’s identity;
• assessing money laundering or terrorism financing risks; and
• meeting reporting obligations.

In some situations, your business may also be required to disclose personal information to regulators.

If you disclose personal information overseas (including to a third party service provider), you must generally take reasonable steps to ensure that the overseas recipient does not breach the APPs. However, exceptions apply where the disclosure is required or authorised by the AML Act.

Protecting Personal Information

Businesses that handle AML data often hold large volumes of sensitive personal information. This can make them attractive targets for cybercriminals. Under the APPs, you must take reasonable steps to protect personal information from misuse, interference, loss or unauthorised access.

Practical security measures include:

• using strong password policies and multi-factor authentication;
• restricting staff access to personal information;
• keeping software and systems updated;
• monitoring system activity with audit logs; and
• implementing a data breach response plan.

Retaining and Destroying Personal Information

Under the Privacy Act, businesses must take reasonable steps to destroy or de-identify personal information once it is no longer required. However, the AML Act requires certain records to be kept for specified periods to demonstrate compliance. This means your business must retain AML records when required by law. Once the retention period expires and there is no other reason to keep the data, you should securely delete or de-identify it.

Key Takeaways

If your business is a reporting entity under the AML regime, you must comply with the Privacy Act when handling personal information for those obligations. This applies even to small businesses that would otherwise be exempt from privacy regulation.

To comply with both frameworks, your business should only collect information that is reasonably necessary, provide clear privacy notices, protect personal data with appropriate security measures, and retain information only for as long as required. Taking these steps will help you meet your AML obligations while maintaining strong privacy practices and protecting the personal information entrusted to your business.

Legal Vision
Georgia MacKay
legalvision.com.au/

Don’t get caught out at tax time with your multiples jobs

Picking up a second job, holding multiple part-time roles, or doing gig work is now part of everyday life. But the way tax is withheld across multiple payers can lead to a surprise when you lodge your tax return. 

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As an Australian resident for tax purposes, you’re generally entitled to the $18,200 tax-free threshold. This is income on all sources, including income from employers, taxable government payments, sole trader or contractor work under an Australian Business Number (ABN), gig work and some investment income.

If you have more than one payer or employer at a time, you can generally only claim the tax-free threshold from one payer. Usually, this is the payer who pays you the highest salary or wage.

However, a common mistake is claiming the tax-free threshold from every employer or payer. This means that at tax time, the combine tax withheld will likely be not enough for your combined income and you may receive a tax bill.

If you have more than one job and expect to earn more than $18,200 in total income, you should ask your other employers or payers to withhold tax at the higher “no tax-free threshold” rate.

If you drive for a ride-share platform, deliver food, earn gig economy income, rent out assets or run a side business, tax may not be automatically withheld from this income.

If you’re eligible, voluntary pay as you go (PAYG) instalments or tax prepayments can help you prepay your tax in manageable chunks throughout the year. If PAYG instalments are not available or suitable for you, set aside a portion of your income in advance to help meet your liabilities.

Extra care is needed if you have a study or training support loan (e.g. HECS/HELP) as compulsory repayments are based on your total repayment income. Tell each employer or payer about your loan so they withhold the right amounts.

Global companies turn to cost-cutting amid ongoing inflation

Rising operating costs and persistent inflation are placing renewed pressure on businesses worldwide, despite signs that confidence is beginning to recover. 

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According to the latest Global Economic Conditions Survey conducted by the Institute of Management Accountants (IMA) and the Association of Chartered Certified Accountants (ACCA), a record number of chief financial officers and accountants reported increased costs in the second quarter of 2026. 

This underscores the intensifying challenge of managing profit margins amidst geopolitical tensions, supply chain disruptions, and elevated commodity prices.

Operating costs have reached unprecedented levels, with 76 per cent of accountants reporting increases that surpass the previous peak recorded after Russia's invasion of Ukraine in 2022. The rise was even more pronounced among chief financial officers, where 83 per cent reported elevated expenses following a surge of over 20 percentage points from the prior quarter.

According to the report, the share of global accountants reporting higher operating expenses grew dramatically in the second quarter, reaching an unprecedented peak.

Researchers connected this growth to surging commodity and energy costs, in addition to supply chain bottlenecks arising from the conflict in the Middle East. 

Businesses in North America and Western Europe faced especially intense cost pressures, exacerbated by ongoing supply chain difficulties and increased tariffs.

As profit margins face growing strain, survey participants indicated that numerous organisations are shifting their focus toward cost reduction initiatives. Specifically, over 50 per cent of those surveyed in North America reported that their clients or companies were actively looking for methods to decrease expenses.

These insights demonstrated that controlling operational expenditures has emerged as a primary financial obstacle for companies operating within a highly volatile global market.

Moreover, inflation remained a major concern for finance professionals, with rising commodity prices and geopolitical uncertainty fuelling expectations of further price increases.

The survey found that 72 per cent of accountants and finance professionals expected inflation in their country to increase over the following three months. At the same time, 42 per cent expected interest rates to rise, reflecting growing expectations that central banks would continue tightening monetary policy.

The report noted that higher energy prices following the outbreak of conflict in the Middle East had materially increased headline inflation across many economies.

Those inflationary pressures had already prompted policy responses, including an interest rate increase by the European Central Bank and a more hawkish outlook from the US Federal Reserve.

Researchers warned that developments in the Middle East would remain a key determinant of future inflation trends.

The report indicated that central banks could see inflation risks mitigated if the conflict progresses toward a resolution and oil prices stabilise near pre-war levels. 

However, the report cautioned that renewed conflict and another spike in energy prices could force central banks into more aggressive policy action.        

For businesses, persistent inflation was expected to remain a key challenge, increasing borrowing costs while adding further pressure to already elevated operating expenses. 

28 July 2026
Matthew Taylor
accountantsdaily.com.au

Warning for early lodger this tax time!

The ATO has a clear message this year: slow down and get it right. Early lodgers are far more likely to make mistakes.

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The ATO automatically pre-fills information from your employer, banks, government agencies and health funds into your tax return to help you get it right the first time, but if you wait until late July to lodge, most pre-fill information about your wages, bank interest, government payments and private health insurance details will be pre-filled.

Also, things to check while you wait for pre-fill to be complete:

• check your contact details and bank account information are up to date, so corrections after lodgement don’t delay your refund;
• collect expense receipts, logbooks and any private health insurance details so you have them ready to check against pre-filled information; and
• review the ATO’s occupation guides to confirm which deductions apply to your line of work;
• Check online that employment income details are correct.

Once pre-filled data is available, you still should cross-check the figures against your own records, particularly for bank interest, dividends and government payments.

If something looks wrong, contact the provider so corrections can flow through to the ATO.

If you realise after lodgement that something’s missing or incorrect, you can fix it through the with an amended return.

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