March 2026 - Accounting and SMSF Round Up

March 2026 Round Up

This month we cover four areas that are directly relevant to how your business operates day to day. The ATO has made it clear it is actively targeting businesses that use cash to avoid their tax obligations, with real penalties already being issued. NSW employers also need to be across the latest workers compensation reforms, which change how psychological injury claims are managed from this year.

On the systems side, the Small Business Superannuation Clearing House closes on 1 July 2026, so if you are still using it, now is the time to transition. And finally, we share how our own team is approaching AI in the workplace, including the policy we have put in place to make sure it is used responsibly and in line with our professional obligations.

The Small Business Superannuation Clearing House is closing on 1 July 2026

The Small Business Superannuation Clearing House (SBSCH) will close permanently on 1 July 2026 as part of the Payday Super reforms. Existing users can continue using it until 11:59pm AEST on 30 June 2026, after which it will no longer be available.

What the closure means for your super payments

The ATO recommends that the January to March 2026 quarter payment, due 28 April 2026, be the last payment you make through the SBSCH. The April to June 2026 quarter payment, due 28 July 2026, cannot be made through the SBSCH as it will have already closed.

This means you need to have an alternative super payment method in place before 30 June 2026.

What you need to do before 30 June 2026

There are three things to action before the SBSCH closes:

Download your SBSCH transaction history before 1 July 2026. Once the service closes, your records will no longer be accessible and you will need them to respond to any future audits or employee queries.
Identify an alternative payment method. Check whether your existing payroll software already includes super payment functions, as it may already have what you need.
Switch to your new payment method as soon as possible, ahead of the April to June 2026 quarter payment due 28 July 2026.

If you have any questions about transitioning away from the SBSCH or setting up an alternative payment method, get in touch with us.

ATO targets businesses using cash to avoid tax obligations

The ATO has made it clear it is actively targeting businesses that use cash transactions to avoid their tax and employer obligations. This includes businesses that under-report or fail to report cash income, pay for goods and wages in cash to keep transactions off the books, and deliberately keep their income below the $75,000 GST registration threshold.

How the ATO is identifying businesses that under-report cash income

The ATO is using data analytics and joint operations across government agencies to identify cash-only businesses that are avoiding their tax obligations. This means the ATO is not waiting for businesses to come forward. It is actively cross-referencing data to find discrepancies.

Specifically, the ATO is looking at businesses that fail to report all sales transactions, do not issue receipts, avoid paying GST, income tax, PAYG withholding, and superannuation guarantee, and do not provide workers with WorkCover protection.

They are also targeting businesses that undercut competitors by offering lower cash prices, and those that exploit workers by not meeting award conditions or work cover protections.

What happens when a business hides cash income: a real life case study

A pizza restaurant was audited by the ATO in 2023 after operating mostly on a cash-only basis. The business also accepted payments via PayID and had an ATM installed at the shopfront, which customers were directed to use to withdraw cash to pay for orders. The ATO found the business had failed to keep accurate records and report all income, resulting in a 50% penalty for reckless behaviour.

A second audit was carried out in the 2024 income year following a community tip-off. This audit found the restaurant had not reported around $140,000 in income, and had claimed around $80,000 in expenses without supporting documentation.

The ATO determined this was intentional, not an oversight, and issued the following penalties:

A GST shortfall of over $17,400
A 75% penalty for intentional disregard
A 20% uplift on the GST shortfall, resulting in penalties of over $11,500
A shortfall penalty of over $38,000 for false and misleading statements

How to make sure your business is meeting its cash reporting obligations

The ATO has been clear about what it expects from businesses. This includes reporting all income, including cash, paying workers correctly and in line with award conditions, meeting superannuation guarantee obligations, keeping accurate records, and registering for GST if turnover exceeds $75,000.

If you have any concerns about whether your business is meeting its cash reporting obligations, get in touch with us.

How to make sure your business uses AI ethically and responsibly

Artificial intelligence is no longer theoretical for small and medium businesses, it’s already shaping how work gets done. For us, the question wasn’t whether to engage with AI, but how to do so responsibly, ethically, and in line with our professional obligations.

As AI tools become more accessible, we wanted to make sure our team was using them in a way that was informed, appropriate, and consistent with our obligations to clients. We brought in One Step Ahead Training & Business Solutions to run a practical AI program for our team and help us develop an AI Use Policy that fits our business.

What stood out immediately was the balance. The session didn’t overpromise, oversimplify, or push tools for the sake of novelty. Instead, it focused on real workplace scenarios, how AI can assist with drafting, summarising, analysing and organising work, while being very clear about where professional judgement, confidentiality, and accountability must remain with people.

The training helped our team clearly understand:

the difference between automation and AI
where AI is already embedded in everyday systems
how tools like Copilot and ChatGPT can be used safely and appropriately
the risks of over-reliance, bias, and incorrect outputs
what not to share with AI tools

Equally valuable was the policy work that followed. Rather than a generic template, we now have a practical AI Use Policy that aligns with our regulatory and ethical obligations, gives our team clear guidance, and provides transparency for clients. It reinforces that AI is a decision-support tool, not a replacement for professional judgement.

The overall outcome was confidence. Our team left the session informed, engaged, and reassured that AI can be used thoughtfully without compromising trust, compliance, or quality.

If you’d like straightforward advice on AI, covering the practical workplace and regulatory side without anxiety or exaggeration, we recommend reaching out to Amanda and Dominique at One Step Ahead Training & Business Solutions. You can reach them below:

Dominique Brown – dominique@onestepaheadbusiness.com.au or +61 425 236 736

Amanda Brown – amanda@onestepaheadbusiness.com.au or +61 437 044 449

Workers compensation reform in NSW: what has changed

On 3 February 2026, Parliament passed the Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025, the second Bill which will significantly change the NSW workers compensation scheme.

The intent of the reforms is to improve the overall sustainability of the NSW scheme, to ensure it can continue to provide the support required by injured workers and employers. The reforms are complemented by investments to improve workplace health, support workers navigate claims processes and prevent psychological hazards in the workplace.

How the reform affects psychological injury claims in NSW

Workers with a primary psychological injury claim are entitled to 130 weeks of weekly benefits unless they are assessed with a Whole Person Impairment (WPI) of:

21% to 25%, in which case they can access an additional year of weekly benefits at either 60% of their PIAWE or the maximum weekly compensation amount, whichever is less.
Over 25%

The 25% threshold will increase to 26% on 1 July 2027 and to 28% by 1 July 2029.

Workers must also meet the new WPI threshold to claim work injury damages.

The specific changes NSW employers need to know

There can be no increases in the insurance premium rate by the Nominal Insurer until 30 June 2028. This means that an employer’s premium may still change each year based on their wages and claims experience, but the industry rates and other adjustment factors will remain stable.

An employer excess will apply to all claims made against a policy issued or renewed with the Nominal Insurer on or after 4pm on 30 June 2026. Details of this excess are yet to be determined.

In addition, the Chief Psychiatrist is required to conduct a detailed review of the Psychiatric Impairment Rating Scale (PIRS), to assess its effectiveness and appropriateness. The final report is required to be delivered within 18 months of the date of assent to the amendment Act.

Next steps

The commencement date of the Bills is yet to be confirmed but we anticipate it will be announced shortly.

We will continue to keep you updated as further details are released. In the meantime, please contact us if you have any questions.

Important: This is not advice. Clients should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval. Liability limited by a scheme approved under Professional Standards Legislation.