The Australian Taxation Office (ATO) is using artificial intelligence (AI), data analytics and automated risk models to support its compliance activities.

The ATO’s AI transparency statement explains that AI helps staff process large volumes of complex data and identify potential risks, including suspected non-compliance and fraud, for human review.

For taxpayers, this means unusual transactions, discrepancies and other risk indicators may be easier to identify. The ATO states that decisions which adversely affect taxpayers will be made by a human, and taxpayers retain their rights of review.

The message is clear: accurate reporting, good record keeping and consistency across your tax and financial information matter.

What Holmans Is Seeing

At Holmans, we expect increasingly sophisticated data analysis to contribute to more ATO reviews and audits over time. Our view is that the ability to analyse and cross-reference information more efficiently will make it easier for the ATO to identify matters for further investigation.

In matters we have seen, the level of detail identified has been striking—even isolated, one-off errors and mistakes can attract attention. An error does not necessarily mean deliberate wrongdoing, but explaining it and responding to questions can still take considerable time and effort.

What Should Taxpayers Do?

Being prepared starts well before an ATO enquiry. Practical steps include:

• Keep supporting records for deductions, transactions and tax positions.
• Check that your information is consistent across tax returns, business activity statements and financial records.
• Investigate discrepancies early, rather than leaving unexplained differences unresolved.
• Seek advice before lodgment if you are unsure about the treatment of a transaction or a claim.

Good records also help your accountant understand what happened and respond clearly if questions arise.

Speak With Holmans Before You Lodge

If you are uncertain about a transaction, deduction or tax position, speak with Holmans Accountants before lodgment. Addressing potential issues early gives you the opportunity to review the facts, gather supporting documents and make informed decisions.

If you have already received an ATO enquiry, contact our team promptly so we can help you understand the request and prepare your response.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Recent audit investigation feedback from the Office of Fair Trading (OFT) highlights the importance of ensuring that any holiday letting charges, fees or benefits received by an agent in connection with the performance of a holiday letting service are clearly disclosed and authorised through the appropriate letting agreement documentation.

In the holiday letting industry mainly, it is common practice for agents to charge guests additional fees such as booking fees, processing fees, guest hampers, guest cleaning fees, administration fees, internet charges or credit card surcharges. However, a critical compliance question often overlooked is: are you properly authorised to charge and retain those fees?

Understanding the OFT’s Position

The OFT has confirmed its view that where an agent receives a booking processing fee that constitutes a benefit connected with the performance of the holiday letting service, that fee should be disclosed in the letting agreement. Under Section 104 of the Property Occupations Act 2014, agents are required to disclose any benefit received in connection with expenses incurred, or otherwise in connection with the performance of the service they provide.

For example, if an agent charges a guest a 1.75% booking processing fee and retains that fee as consideration for arranging or processing the booking, the OFT considers this to be a benefit received by the agent in connection with the performance and service they provide. Consequently, the fee should be properly disclosed and authorised through the letting agreement with the owner.

This requirement is not limited to booking processing fees. The same principle may apply to other amounts retained by an agent where there is a benefit connected to the letting service.

Common Fees That May Require Authorisation

Many agents routinely charge fees such as:

• Booking fees or levy
• Processing fees
• Internet fees
• Guest Hamper Packs
• Amenities charge
• Guest Cleaning fees
• Credit card surcharges
• Resort or service fees
• Cancellation Fees charged to guests

Where an agent receives a financial benefit from these charges, it is important to consider whether that benefit has been fully disclosed and authorised in your agreements signed with the owners.

An agent’s ability to charge a guest does not automatically mean they have authority to retain the funds of that charge. The authority to do so should be clearly disclosed in the agreement signed with the owners.

Understanding Whose Money It Is

A point that is often misunderstood from a trust accounting perspective is that money received from a guest does not automatically become the agency’s money simply because the agent has charged the fee.

When a guest pays for accommodation, booking fees, cleaning fees, or other charges and those funds are deposited into the trust account, those monies are generally received on behalf of the owner and must be accounted for accordingly. In other words, the starting position is that the funds are owner monies held in trust. The authority for an agent to deduct and retain commissions, fees, or other benefits comes from the letting agreement documentation, typically the Form 6, together with the addendum and schedule of charges that forms part of the appointment and authorises you to deduct your appropriate charges.

Without clear authority, an agent may find it difficult to justify why they have retained part of the funds received from a booking.

The Importance of Disclosure

Failure to disclose fees that benefit the agency can expose the business to potential breaches of legislative disclosure requirements and may lead to disputes with owners who were unaware of, or did not authorise, the agent to retain those fees.

Questions You Should be Asking

To ensure compliance, agents should regularly review their charges and letting agreements and ask:

• Are all fees, including fees charged to guests, properly disclosed within our letting agreement?
• Do we have clear authority to retain these fees/charges, i.e. the owners have signed the agreement?

If the answer to any of these questions is uncertain, or if your agreements do not clearly disclose the fees being charged and retained, it may be time to review your agreements to ensure the appropriate authority is in place. We recommend discussing with your industry accountant or auditor if you are uncertain.

If you believe you are charging fees that may not be properly disclosed, it can be as simple as including a clearly worded clause within an addendum, or schedule of charges that advises the owner of the fee and confirms the agent’s entitlement to retain it and getting the owners to sign the new agreement. For example, the agreement may state that a 1.75% booking processing fee is charged to guests and retained by the agent, or that internet charges or guest hampers collected from guests will be deducted from the accommodation before distribution to the owner. The key is that the fee is clearly disclosed, transparent, and agreed to by the owner.

Conclusion

The OFT’s position serves as an important reminder that agencies should not only focus on what fees they charge, but also whether they have the authority to charge and retain them. Where a booking fee, processing fee, internet charge, cleaning fee, or any other amount provides a benefit to the agency, that benefit should be clearly disclosed and authorised through the appropriate signed letting agreement documentation with the owner.

Whether it’s a booking fee, processing fee, internet charge, guest hamper packs, cleaning fee or any other amount that benefits the agent, the safest approach is to make sure it’s clearly disclosed in your letting agreements. After all, money received from guests and deposited into the trust account is generally owner money first, and it’s the Form 6, addendum and schedule of charges that give you the authority to deduct your commissions and other agreed fees.

Taking the time to review your agreements now could help avoid compliance issues down the track and reduce the risk of disputes with owners about fees that have been charged and retained by the agent without proper authorisation.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Accommodation & Management Rights Enquiries
Phone: (07) 5430 7666 or email accom@holmans.com.au

Health professional practices are entering a new era of payroll compliance. With Payday Super now in effect, health professionals need to ensure employee wages, superannuation and payroll systems are accurate, compliant and up to date.

Importantly, there is no concession for wages paid to yourself or related parties. This, combined with the need to flow money to the practitioner under the Personal Services Income (PSI) rules, means more care needs to be taken when setting your own wage and superannuation levels. In a perfect world, the goal is to pay out all of the taxable profit by year end, with a small adjustment completed during tax planning in June each year. Failure to get the levels right could result in amended BASs, denied deductions for superannuation payments, penalties and interest.

What Has Changed?

From 1 July 2026, employers are required to pay employees’ superannuation at the same time as salary and wages, replacing the previous quarterly payment system. Super contributions generally need to reach the employee’s nominated super fund within seven business days of payday. At the same time, STP continues to provide the Australian Taxation Office (ATO) with real-time payroll reporting, making payroll accuracy more important than ever. This makes backdated adjustments almost impossible and means there is a greater risk of denied superannuation claims.

Unfortunately, the interaction of the new Payday Super rules with the existing Personal Services Income legislation has created a potential issue for health professionals, particularly where they operate through corporate structures. There is now a real need to set appropriate wage levels early and consider superannuation contribution limits in advance.

The additional reporting also means the ATO has the ability to audit and detect more issues in a more timely manner. As a result, Holmans expects to see a significant increase in compliance letters and employee superannuation audits, including superannuation relating to your own wages.

Other Matters to Review

As outlined in prior articles, now is the time to check your current employee details, including the award they are employed under, their superannuation fund details, HECS withholding, PAYG withholding settings, employee bank account details, and any other contract terms and conditions.

Don’t Forget Cashflow Planning

One of the biggest changes for many practices is the impact on cashflow.

Previously, businesses could retain superannuation funds until quarterly due dates. Under the new rules, those funds leave the business each payday. While the total annual super obligation remains unchanged, the timing of payments requires practices to budget differently and maintain sufficient working capital throughout the year.

How Holmans Can Help

At Holmans, we work with healthcare professionals across the Sunshine Coast and throughout Queensland to help simplify wage setting, PAYG withholding, superannuation contribution levels and other tax compliance matters.

We recommend all health professionals review their wage levels for the current financial year and consider setting appropriate wage limits and regular superannuation payments. They should also diarise a meeting with their accountant in May or June to fine-tune final wage and superannuation payments before year end.

Need Specialist Accounting Advice for Your Health Professional Practice?

Holmans has extensive experience working with doctors, specialists, allied health professionals and medical practices across the Sunshine Coast. Learn more about our specialist services for health and medical practitioners and discover how we can help your practice remain compliant while supporting long-term growth.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Phone: (07) 5430 7600 or email info@holmans.com.au

Holmans has proudly been named a finalist for the 2026 ARAMA Management Rights Industry TOP Awards in the Service Provider of the Year category, recognising our long-standing commitment to supporting Queensland’s Management Rights industry with specialist accounting, taxation and business advisory services.

Being recognised as a finalist in the 2026 ARAMA Management Rights Industry TOP Awards is a significant honour. These awards acknowledge outstanding performers across the Management Rights sector, and we are proud to be recognised alongside many of the industry’s leading professionals.

A Recognition of Our Commitment to Management Rights

For many years, Holmans has worked closely with management rights owners, providing specialist advice tailored to the unique needs of the industry. From taxation and compliance through to business structuring, finance support, valuations, succession planning and business growth strategies, our team understands the challenges and opportunities that come with owning and operating a management rights business.

Being named a finalist reflects the trusted relationships we have built with our clients and our ongoing commitment to delivering practical, commercially focused advice that helps businesses achieve long-term success.

Thank You to Our Clients and Industry Partners

We would like to sincerely thank our clients for the confidence they continue to place in our team. Your support has enabled Holmans to become one of Queensland’s leading advisers to the Management Rights industry.

We also thank ARAMA for recognising our contribution and for continuing to promote professionalism, innovation and excellence throughout the Management Rights sector.

Celebrating Excellence in the Industry

The winners of the 2026 ARAMA Management Rights Industry TOP Awards will be announced at the awards dinner at The Star Brisbane on Friday, 18 September 2026.

Regardless of the outcome, we are honoured to be recognised as a finalist and remain committed to helping Management Rights businesses navigate complex financial challenges and build stronger, more profitable businesses.

If you’re looking for experienced advisers who truly understand the Management Rights industry, contact the Holmans Management Rights team to discover how we can help your business succeed.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Accommodation & Management Rights Enquiries
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Holmans was proud to be a featured contributor in ARAMA’s recent “Meet the Professionals” webinar. The session brought together leading experts from finance, law, valuation, accounting and management rights sales to discuss the current state of the industry and provide practical advice for operators looking to strengthen, grow and maximise the value of their management rights business.

The webinar explored key topics including business valuations, finance trends, taxation, compliance obligations, agreement top-ups, letting pool protection and preparing a management rights business for future sale. Below is a summary of the key insights shared during the session, including commentary from Holmans Director and management rights taxation specialist, Lel Parnis.

Watch the Full Webinar

Missed the live session? You can watch the full ARAMA webinar right here:

ARAMA is the peak industry body representing management rights owners and operators throughout Australia. Members gain access to industry advocacy, education, training, compliance resources and regular industry updates designed to help operators build stronger and more profitable businesses.

To learn more about ARAMA membership, training programs and upcoming industry events, visit the ARAMA website.

Market conditions remain positive despite some softening

While transaction volumes have eased slightly across many regions due to higher interest rates, demand for quality management rights businesses remains strong.

Multipliers have softened in some areas compared to previous years, however well-presented businesses with strong fundamentals continue to attract buyer interest.

A key factor influencing business value is the return on investment available to buyers. As property prices and borrowing costs have increased, buyers are paying closer attention to business performance, agreement terms and overall profitability.

Top-ups remain one of the most important value drivers

One topic repeatedly raised by valuers, brokers and lawyers was the importance of keeping agreements topped up.

A top-up extends the term of management rights agreements, helping maintain both business value and marketability.

Businesses with longer agreement terms continue to attract stronger buyer interest, while businesses with shorter remaining terms may face additional scrutiny from purchasers, financiers and advisers.

Operators should:

• Understand their current agreement terms.
• Track key option and renewal dates.
• Plan top-ups well in advance.
• Treat top-ups as an ongoing business strategy rather than a last-minute exercise.

Finance approval timeframes are increasing

Finance approvals are taking longer than many operators may be accustomed to. What was once commonly a 30-day process can now extend to 50 or 60 days due to increased lender requirements and more extensive due diligence processes.

Interest rates also continue to impact borrowing capacity, particularly for buyers seeking to leverage equity from residential property.

Banks remain supportive of management rights lending, however buyers may need to provide more information and demonstrate stronger servicing capacity than in previous years.

For vendors, this means allowing realistic settlement timeframes and understanding that finance-related extensions are becoming more common.

Tax planning remains critical

Many management rights businesses have enjoyed a relatively strong financial year despite broader economic uncertainty.

While traditional tax minimisation opportunities have reduced over time, strategic tax planning remains essential.

Importantly, operators should focus on:

• Understanding future tax liabilities.
• Managing cash flow.
• Planning superannuation contributions.
• Reviewing business structures where appropriate.
• Seeking advice before making major decisions.

With significant tax proposals announced in recent budgets, operators should avoid making rushed decisions until further details become available.

Review your fees and charges regularly

For many operators, annual reviews of fees and charges can be an overlooked opportunity.

Where agreements allow, operators should review CPI-linked increases and ensure charges keep pace with rising operating costs.

This is particularly important given recent increases in wage costs, contractor expenses and supplier charges.

Regular fee reviews not only support profitability but also demonstrate sound business management to future purchasers.

Prepare now for changes to credit card surcharge rules

One significant issue raised during the webinar was the upcoming removal of merchant surcharge recovery for many businesses.

Operators currently generating income through guest credit card surcharges should assess the financial impact well before implementation and consider alternative strategies to recover costs or improve operational efficiencies.

Possible actions include:

• Reviewing merchant service providers.
• Negotiating lower transaction fees.
• Encouraging alternative payment methods.
• Reviewing booking and administration fee structures.

Stay on top of compliance obligations

Compliance remains a critical area of risk for management rights operators.

Industry experts highlighted several areas requiring ongoing attention:

• Real estate licence renewals.
• Corporate licence renewals.
• Trust account compliance.
• CPD obligations.
• Form 6 documentation.
• Letting agreement reviews.
• Cancellation fee authorisations.

Missing documentation or outdated agreements can create issues during audits, financing applications and business sales.

Strong relationships remain a competitive advantage

Understanding your agreements and maintaining positive relationships with committees and owners remains essential.

Operators should regularly review their caretaking and letting agreements, understand their obligations, and ensure expectations are aligned with those of the committee.

Likewise, maintaining strong relationships with owners can help protect and grow the letting pool, improve retention and support future business value.

Run your business as if you were selling tomorrow

Perhaps the strongest message from the webinar was that operators should manage their business as though they are preparing it for sale every day, regardless of when they actually intend to exit.

This means:

• Keeping agreements current.
• Maintaining accurate documentation.
• Reviewing fees and charges annually.
• Monitoring profitability.
• Staying compliant.
• Protecting and growing the letting pool.
• Building positive relationships with owners and committees.
• Seeking specialist advice early.

A well-managed business is not only more attractive to future buyers, it is also likely to be more profitable and enjoyable to operate in the meantime.

Need advice?

Management rights is a highly specialised industry. Whether you’re planning for growth, reviewing your tax position, preparing for a future sale or simply looking to improve profitability, obtaining advice from professionals who understand the management rights sector can make a significant difference.

At Holmans, we work with management rights operators across Australia, providing specialist accounting, taxation, audit and business advisory services tailored to the unique needs of the industry.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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What is Payday Super?

Under the proposed Payday Super rules, employers will be required to pay employee superannuation contributions each payday, rather than quarterly.

The changes are designed to improve the visibility and timeliness of superannuation payments for employees, while helping reduce unpaid super across Australia.

For employers

The ATO has recently started emailing employers regarding Payday Super. If you have received correspondence from the ATO, it is important not to ignore it and to start preparing now.

Holmans recommends two key actions ahead of 30 June 2026:

• Start paying superannuation each payday now — this allows time to adjust payroll systems and internal processes before the new requirements commence.
• Pay the final quarterly super payment prior to 30 June 2026 — this may help avoid mismatching superannuation payments against the relevant payroll periods as the system transitions to payday reporting.

Employers should also ensure employee superannuation details are current and accurate prior to year end.

Further information is available via the ATO Payday Super page.

For employees

For employees, Payday Super means superannuation contributions will be received more regularly instead of waiting until the end of each quarter.

This provides greater visibility over employer super obligations and allows super balances to begin earning investment returns sooner.

Your employer may contact you prior to year end to reconfirm your nominated superannuation fund details. Other than this, no action is generally required from employees.

Preparing now can make the transition easier

While Payday Super is still approaching, businesses that begin adjusting processes early are likely to experience a smoother transition when the changes take effect.

If you have questions about how Payday Super may affect your business, payroll systems or reporting obligations, please contact the team at Holmans.

Further information:

• ATO – Payday Super
• AustralianSuper – Payday Super overview

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Accommodation & Management Rights Enquiries
Phone: (07) 5430 7666 or email accom@holmans.com.au

As you will probably have seen and heard at every possible juncture this week … The Federal Budget on the 12 May 2026 contained some of the most significant tax changes in decades.

While many measures are proposed and not yet passed into legislation, the direction of reform is clear and will have important implications for individuals, property investors, business owners and family groups.

Below is an overview of the key tax changes. Holmans have focused on 3 of the largest changes, which have had our phones and emails here running hot:

• Negative Gearing
• Capital Gains Tax – Removal of the 50% Discount
• Minimum 30% Trust Tax

Importantly, these 3 large changes are due to apply at dates in the future. So there is lots of time for water to flow under this bridge ….. and there is still plenty of time for the Government to make changes (Div 296 & Taxation of Unrealised Gains in Super anyone?). Importantly, there is nothing you need to do urgently before 30 June 2026 in relation to those announcements.

As always, the devil is in the detail, and that detail is yet to be released. So the below is our best interpretation of the proposed changes.

1. Negative Gearing Changes (applies from 1 July 2027)

Grandfathered rules and exemptions:

• Existing properties will retain the current treatment. So no change for existing properties, even post 1 July 2027.
• Superannuation Funds are not covered by these new rules.
• Applies to residential properties only, so commercial properties and share investments are exempt.

New Residential Properties/Rules:

• Negative gearing will be limited to newly constructed residential properties post budget night.
• For established residential properties, a better way to look at the changes is to think “quarantine”, rather than the gearing has being abolished:
  • Losses can no longer offset salary or other income
  • Instead, the losses are quarantined and carried forward
  • Losses can only be applied against future property income (including other rental properties) and future capital gains on property.

What happens between Budget Night and 1 July 2027:

• Normal rules until 1 July 2027.
• To avoid disappointment or regret, we strongly recommend you consult with your accountant prior to any new property purchase to confirm how it may be treated.

Implications:

• In future, more cashflow may be required to hold older residential properties because of the lost tax break along the way.
• Clients looking for negative gearing opportunities will likely focus their attention on New Developments, so increased competition for new stock is expected.
• Alternate structures and options are available, and they might be worth discussing with your Accountant.

2. Capital Gains Tax (CGT) Reform

This change has been “bundled” with the negative gearing changes above, but it actually applies to all asset types, not just property.

Replacement of the 50% CGT Discount (Applies from 1 July 2027)

• The current 50% CGT discount the capital gain amount (where you owned the asset for greater than 12mths) will be removed from 1 July 2027.
• Instead, it will be replaced with:
  • Indexation of the cost base for inflation, and
  • A minimum 30% tax on the “real” capital gain
• Applies broadly to individuals, trusts and partnerships. Does NOT apply to Superannuation Funds.
• Applies to all asset types, including businesses, property, shares, crypto and so-on.
• Transitional rules will preserve gains accrued before 1 July 2027. Valuations and ATO approved methods of calculation/apportionment, will apply to any gains that accrued pre (50% Discount method) and post 1 July 2027 (Indexation method).
• Importantly, Pre-CGT Assets will be caught in this tax change and the gain post 1 July 2027 will now be taxable.
• There is a limited exemption from the minimum 30% tax where you are on Government Benefits.

Implications:

• It is expected to increase the tax collected on investment disposals when compared to the 50% General Discount method.
• It may no longer be as important to defer CGT events to low-income periods. However, it is best to consult with your accountant first.

3. Discretionary Trust Reform – Minimum 30% Tax

This is a fundamental change in the tax and ordinary concepts associated with Family (discretionary) Trusts.

30% Minimum Tax (from 1 July 2028)

• Introduction of a 30% minimum tax on discretionary trust income
• Does not apply to Fixed Trusts, Superannuation Funds and some Special Trusts (Deceased Estate and Special Disability Trusts). Note, there is a fear it will apply to Testamentary Trusts.
• The 30% tax will be paid at the trustee (Trust) level and creates a non-refundable tax credit
• Beneficiaries are still then taxed on their gross distribution from the Trust and can apply the tax credit against any tax payable in their hands. Importantly though, it is a non-refundable offset, ensuring that a minimum of 30% tax is paid on all Trust income.
• Beneficiary companies (often referred to as Bucket Companies) are in an even worse position, and at this stage, are not entitled to a credit at all. It appears double taxation of the income will likely apply (tax of up to 51%).
• The Government will announce an expanded rollover relief from 1 July 2027 to allow Trusts to restructure (without Capital Gains tax implication) in preparation for the new rules. Whether Transfer (Stamp) Duty will apply to the restructure is still a matter for the States.

Key consequences/implications:

• Reduces effectiveness of income splitting
• Bucket Companies arrangements appear to be dead.
• If you operate your business out of a Trust, you will need to review your structure prior to 1 July 2028.
• If your family Trust owns shares in a trading company, you may still need to review your structure to prevent lost franking credits (Franking Credits now appear to convert to a non-refundable offset instead, not necessarily flow through).
• Where families have an average tax rate lower than 30% in a normal year, they may now be disadvantaged under this new Minimum Trust Tax. Wages or restructuring will be required to ensure excess tax is not paid.
• In short, if you have a trust in your Family Group, your structure needs to be reviewed prior to 1 July 2028.

There are too many possible implications to detail here. The devil will most certainly be in the detail. Holmans expect the Government will receive a lot of industry feedback prior to implementation and accordingly, there may be changes, exemptions or even extensions to this law. Regardless, it will be important to plan prior to 1 July 2028.

4. Personal Income Tax Relief

Income Tax Cuts (from 1 July 2026)

• The marginal tax rate for income between $18,201 and $45,000 reduces from 16% to 15%, and is legislated to reduce further to 14% from 1 July 2027
• Provides modest but broad-based relief across all taxpayers

$250 Working Australians Tax Offset (from 2027–28)

• A new annual tax offset of up to $250 for workers
• Applies to salary and wage earners (and includes sole traders)
• Designed to increase the effective tax-free threshold

$1,000 Instant Work-Related Deduction (from 2026–27)

• Taxpayers can claim up to $1,000 without substantiation
• Larger deductions can still be claimed under normal rules

Practical takeaway:

These measures provide modest relief and simplification, but are largely outweighed (for many clients) by changes on the investment side.

5. Business and Small Business Measures

Permanent Instant Asset Write-Off

• $20,000 write-off was made permanent, provides certainty for capital investment planning

Loss Carry-Back (Reintroduced and now permanent)

• Companies can offset current losses against prior profits

Start-Up Support

• Introduction of loss refundability for early-stage businesses

What This All Means for you

While the reforms are significant, several key points should guide you:

1. Timing Matters

• Most major changes commence from 1 July 2027 or later
• Provides a planning window of 1–3 years

2. No Immediate Action Required

• For the 2026 tax year it is business as usual, there are minimal direct impacts from the budget prior to 30 June. Of course, Holmans recommend Tax Planning every year, but there is no additional urgency because of the Budget Announcements.

3. Strategic Review Required In Future

Clients should consider reviewing their group structures and investment strategies, including but not limited to:

• Trust vs company structures
• Timing of asset disposals
• Investment strategy (property vs alternatives)
• Use of superannuation and other suitable structures as a tax shelter

4. Avoid Reactive Decisions

• Many of the announced measures lack final detail, and changes do often occur prior to becoming legislation.

See your accountant and early. Leave sufficient time for planning and any implementation. For now, watch this space.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Accommodation & Management Rights Enquiries
Phone: (07) 5430 7666 or email accom@holmans.com.au

Thinking about entering the management rights industry? A free upcoming Brisbane event is set to provide valuable insights for both first-time buyers and experienced operators looking to better understand the current market.

Discover Management Rights Brisbane: 360° Insights for Every Buyer

This free industry event brings together some of Queensland’s most respected management rights specialists for an informative morning session covering finance, legal considerations, compliance, valuations, market conditions and buyer expectations.

Holmans is proud to be part of the expert panel, with Chantel Duplessis presenting on accounting and taxation considerations within the management rights industry. Chantel will provide practical insights into financial structures, taxation obligations and key accounting factors buyers should understand before purchasing a management rights business.

What Attendees Will Learn

• Current management rights market conditions and buyer expectations
• Finance, accounting and taxation considerations
• Legal, compliance and valuation insights
• How to better understand management rights business structures
• Key considerations when assessing opportunities
• Exclusive Brisbane listings presented publicly for the first time

Expert Industry Panel

• Trent Pevy – Pevy Lawyers
• Chantel Duplessis – Holmans Accountants
• Cameron Wicking – Mike Phipps Finance
• Mike O’Farrell – MLR Services
• Trevor Rawnsley – ARAMA
• Victor James – Validum

Prize Draw

Every registered attendee will go into the draw to win 2 x MRITP Course places with ARAMA, providing valuable industry training for those considering a future in management rights.

Event Details

• Date: Saturday 30 May 2026
• Time: 9:00 AM – 11:30 AM AEST
• Venue: Full Moon Hotel Sandgate
• Address: 118 Eagle Terrace, Sandgate QLD 4017
• Cost: Completely Free
• Refreshments: Morning Tea Provided
• Parking: Ample Parking Available

Whether you are just beginning to explore management rights or actively searching for the right opportunity, this event offers valuable insights from some of the industry’s leading professionals.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Accommodation & Management Rights Enquiries
Phone: (07) 5430 7666 or email accom@holmans.com.au

Thinking about entering the management rights industry?

The upcoming Management Rights Made Easy Seminar on the Gold Coast is designed to provide an expert introduction to one of Australia’s most established accommodation and property investment sectors.

Hosted by ResortBrokers, the seminar will bring together leading specialists across sales, finance, accounting, legal, and training to help prospective buyers better understand how management rights businesses work and what to consider before entering the industry.

Seminar details:

• Date: Saturday 6 June 2026
• Time: 9:00am – 12:00pm
• Location: RACV Royal Pines, Gold Coast
• Address: Ross Street, Benowa QLD 4217

Fully catered morning tea will be provided, with limited spaces available.

Why management rights continue to attract buyers

Management rights businesses continue to attract strong interest from Australians looking for a combination of business ownership, lifestyle flexibility, and investment potential.

These businesses can provide:

• Strong recurring income streams
• Long-term agreements
• The opportunity to live onsite
• Lifestyle benefits in desirable locations
• Established operational systems
• Potential for long-term growth

For many buyers, management rights offer an appealing pathway into business ownership while living in sought-after regions such as the Gold Coast.

What attendees will learn

The seminar is designed to provide practical insights into the management rights industry, including:

• What management rights are and how they operate
• Why they are often considered secure, low-risk businesses
• The differences between holiday and permanent complexes
• Current opportunities in the Gold Coast market
• Finance structures and lending considerations
• Business structuring and taxation considerations
• Legal due diligence and contract pitfalls
• Training and licensing requirements

Meet the expert panel

ResortBrokers

Todd Warner, Clint Amos, and Nathan Bock are ResortBrokers’ Gold Coast management rights sales specialists. As market leaders in management rights sales, the team has handled numerous transactions across both holiday and permanent complexes.

The ResortBrokers team will provide current market insights and discuss where they believe the strongest investment opportunities currently exist.

Mike Phipps Finance

With more than 30 years of experience in accommodation industry finance, Mike Phipps Finance is recognised as one of Australia’s leading finance specialists in the sector.

Paul Grant will discuss the current state of the management rights industry, available finance options, and insights into lending considerations specific to management rights businesses.

Holmans Accountants

Holmans has conducted income verification reports for buyers on hundreds of management rights businesses across Australia.

Lel Parnis will provide practical insights into analysing profit and loss statements, understanding business performance, and structuring a management rights business effectively from an accounting and taxation perspective.

Pevy Lawyers

Pevy Lawyers acts for a significant number of new entrants into the management rights industry.

Amy McKee will discuss the importance of specialist due diligence when purchasing a management rights business, along with key pitfalls buyers should avoid throughout the contract and settlement process.

Validum Group

Victor James Pisanos from Validum Institute will provide information around training and licensing pathways within the real estate and property management industry.

Established in 2016, Validum Institute delivers online and blended learning courses across property services, sales, and property management.

An opportunity to learn from industry specialists

For anyone considering entering the management rights industry, seminars such as this can provide valuable real-world insights before making a major financial commitment.

Understanding the financial, legal, operational, and market aspects of management rights is an important part of making informed business decisions.

At Holmans, we continue to work closely with management rights buyers and operators across Australia, helping clients better understand financial performance, taxation considerations, and business structuring opportunities within the industry.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Accommodation & Management Rights Enquiries
Phone: (07) 5430 7666 or email accom@holmans.com.au

Recently, credit card fees particularly on short-term accommodation bookings have often been passed directly to guests as a surcharge. That model, however, is changing. These upcoming credit card surcharge changes mean that by 31 October 2026, businesses operating in Australia will need to be prepared for a significant shift in how card payment costs are managed, with reforms aimed at restricting or effectively removing many credit card surcharges as a separate charge to consumers.

For management rights operators, this is more than just a compliance issue, it is a commercial challenge that may impact profitability, pricing strategies, and owner relations.

Why Are These Changes Happening?

The push to remove or limit card surcharges comes from increasing public and regulatory concern over “hidden fees” at checkout.

Consumers have become frustrated by advertised prices that rise at the point of payment due to additional charges. Regulators and policymakers have argued that payment by card is now the norm, not an optional luxury and therefore should be treated as part of the cost of doing business.

The reforms are designed to:

• improve pricing transparency;
• reduce unexpected costs for consumers;
• encourage fair competition; and
• simplify purchasing decisions

In practical terms, the expectation is that businesses should incorporate payment acceptance costs into their overall pricing structure, rather than presenting them as an add-on at the end of the transaction. For more detail on current surcharging rules and compliance, refer to the ACCC guidance on card surcharges.

Why This Matters to Management Rights Operators

Management rights businesses sit in a unique position.

Operators often manage both:

• short-term accommodation income (letting pool, online bookings, direct reservations); and
• agency-style relationships with lot owners (commissions, administration fees, reimbursements).

These two streams are treated differently from a commercial and legal perspective.

For guest-facing accommodation transactions, surcharge restrictions will likely apply in full. This means operators may no longer be able to add a separate credit card fee to booking invoices in the same way they historically have.

For owner-facing charges, however, the position can be materially different. Where fees are charged under an agency agreement i.e your Form 6 and Addendum, those charges are governed by contract and agreement, and not bound by the same restrictions applied directly to guests. In the context of these credit card surcharge changes, provided the agreement allows for reimbursement of transaction costs or is amended to do so and more importantly agreed by the owner in writing, there may be scope to recover these expenses from owners rather than guests.

The Commercial Impact

For many operators, merchant fees are significant. Between online travel agents, direct website bookings, EFTPOS terminals, and virtual card processing, payment acceptance costs are a substantial business expense and removing the ability to recover the cost from guests will negatively impact business profitability and business value. This is particularly the case in high-volume Corporate and holiday complexes.

If these costs can no longer be separately charged to guests, operators may face reduced net profits and increased pressure on commission structures

This is especially relevant in competitive tourism markets where raising advertised room rates may not always be commercially feasible.

The Sales Perspective: Why This Matters to Business Value

There is also an important sales consideration that management rights operators should not overlook. When a business is being prepared for sale, accountants and valuers will often review the adjusted profit and loss statement to determine the maintainable earnings of the business. These earnings form the basis of valuation and ultimately influence the sale price. If your business is currently charging guests a separate credit card surcharge, that income may appear in your Adjusted Profit & Loss as an identifiable revenue stream. However, once surcharge restrictions take effect, that income may no longer be considered sustainable to a purchaser. As a result, when preparing the adjusted profit and loss for sale, this surcharge income is likely to be excluded from the maintainable earnings calculation.

That exclusion can directly reduce the net profit of the business and because management rights businesses are typically valued on a multiplier of earnings, even a modest reduction in profit can have a significant impact on sale price. For example, if surcharge income contributes $20,000 annually and the business sells on a multiplier of 4.5x, the loss of that income could reduce business value by $90,000. This is why implementing a replacement strategy is critical.

If operators can transition those costs into another sustainable and contractually supported revenue source before sale, that income becomes more defensible as part of the ongoing earnings of the business. From a buyer’s perspective, the question is not whether the business was once able to generate surcharge income, but whether the earnings are repeatable under future operating conditions, particularly in light of these credit card surcharge changes. Without a clear strategy, surcharge revenue may be viewed as obsolete income and stripped out of valuation calculations.

In short, failing to adapt does not just affect day-to-day profitability, it can materially reduce the capital value of your business when it comes time to sell.

Options to Negate the Financial Impact of Credit Card Surcharge Changes

While the reforms may remove one revenue recovery mechanism, they do not eliminate all strategic options.

1. Build Costs into Room Rates

The most straightforward response is to incorporate merchant fees into advertised accommodation pricing. This spreads the cost across all guests rather than isolating it as a separate charge. While this may slightly increase accommodation tariff, it ensures compliance and may preserves margins without impacting the owners.

The downside is that it may reduce competitiveness in room pricing, if neighbouring operators absorb the cost differently.

If you increase room rates as part of this strategy, it is important to advise owners of the change and the reasoning behind it. As accommodation income belongs to the owner, and if an operator absorbs part of the accommodation tariff as a “merchant cost”, this directly impacts the owner from an Office of Fair Trading perspective and the owners should be properly notified of this stategry. From an Office of Fair Trading perspective, transparency is essential. Keeping owners informed helps demonstrate that the strategy is a compliant business response to regulatory change, rather than an undisclosed reduction in owner returns. Clear communication also reduces the risk of future disputes and supports the operator’s position as acting in good faith as agent.

2. Renegotiate Merchant Agreements

Many businesses accept their merchant fees as fixed, but providers often have flexibility, particularly where transaction volumes are high.

Operators should review:

• interchange rates;
• gateway fees;
• international card charges; and
• OTA virtual card costs.

Reducing processing costs at the source may offset much of the impact without changing pricing.

3. Recover Costs Through Owner Charges

This is where management rights businesses may have a unique advantage. Because the operator acts as agent for lot owners, and the relationship is governed by contract rather than consumer-facing payment law, transaction-related costs may be recoverable from owners in response to credit card surcharge changes, provided the documentation with owners supports it and the owners have signed and agreed to the charges.

Potential approaches include:

• introducing an administration or processing fee percentage to owners
• adjusting commission structures to reflect payment handling costs

This approach shifts the burden away from guests and the operator, and onto the parties who ultimately benefit from the bookings.

Importantly, this must be carefully documented, disclosed and agreed to avoid disputes.

4. Encourage Lower-Cost Payment Methods

Operators can reduce card reliance by promoting:

• direct bank transfer
• debit card over credit card
• BPAY or account-to-account payment systems; or
• alternative booking platforms with lower merchant costs.
• Reverting to a bank merchant facility

Even modest changes in payment mix can materially reduce processing expenses over time.

What Operators Should Do Now in Response to Credit Card Surcharge Changes

With the 31 October 2026 deadline approaching, operators should act early.

Key steps include:

• reviewing all guest-facing surcharge practices
• review and assess merchant fee costs;
• obtaining management rights specialist legal or management rights accountant for advice on owner agreement wording;
• updating Addendums and Schedule of Charges with the owners if required; and
• modelling the financial impact of alternative recovery strategies.

The businesses that adapt early will be in the strongest position to maintain profitability without breaching evolving payment regulations.

Final Thoughts

For management rights operators, the key is to review your current structure and identify how these additional costs will be managed in light of credit card surcharge changes. In practice, this will usually mean either on-charging appropriate costs to owners or adjusting pricing and operations where that is not possible.

The important part is to make informed decisions, communicate any changes clearly to owners, and ensure any recovery of costs is done within regulatory requirements and existing contractual arrangements.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

RECENT NEWS

CATEGORIES

AUTHOR

Accommodation & Management Rights Enquiries
Phone: (07) 5430 7666 or email accom@holmans.com.au