When most people think about estate planning, they think about a will.

A will is important. It determines what happens to your assets when you pass away. But in over 30 years of advising pharmacy owners and their families, I’ve seen time and again that a will, on its own, is not enough.

Estate planning is not only about what happens after death. It is also about managing important changes that can happen while you are still living.

Wills don’t deal with loss of capacity

One of the biggest misconceptions is that a will covers all contingencies. It doesn’t.

A will only operates after death. It does not deal with a situation where you are alive but no longer able to make decisions due to illness, accident or cognitive decline.

Without an Enduring Power of Attorney (POA), your family might need to apply to a tribunal or court to manage your affairs. This process can be slow, costly, and emotionally draining, especially when your family is already under stress.

Similarly, in business structures such as pharmacy partnerships, the death or incapacity of a partner can have significant implications. If the documentation isn’t clear, surviving partners and families can find themselves navigating uncertainty at precisely the wrong time.

Good planning means ensuring that:

• You have an appropriate Enduring Power of Attorney in place
• Your partnership or shareholder agreements deal with incapacity and death
• Your personal and business structures align.

Giving while you live 

At a recent presentation, I spoke about something I strongly believe in: “give while you live.”

Many people accumulate assets throughout their lifetime with the intention of passing them on. There is nothing wrong with that. But there can be significant benefits in providing support earlier, when it can make the greatest impact.

Helping a child purchase a home, assisting with education costs, or supporting a business opportunity can be life-changing at the right time.

There are also practical advantages:

• You can see the benefit of your giving
• You establish a clear and consistent pattern of intention
• You reduce the size of your estate and potential complexity later.

Where estates are contested, a demonstrated history of giving can help show that your will reflects a long-standing pattern rather than a sudden decision.

From a tax perspective, Australia does not have an inheritance tax. However, gifting can have implications depending on the type of asset and your circumstances. For example, transferring certain assets may trigger capital gains tax events and Division 7A issues. Centrelink and aged care assessments can also be impacted by gifting under deprivation rules.

This is not an argument against giving. It is simply a reminder to plan your giving carefully.

Retaining enough for aged care 

While generosity is admirable, prudence is essential.

Aged care is often more expensive than people expect. Entry into a residential aged care facility typically involves:

• A refundable accommodation deposit (often a significant lump sum and commonly referred to as ‘RAD’)
• Ongoing daily care fees and living costs.

Many facilities offer payment arrangements or ‘loan’ style options, but these can become expensive over time. In most cases, if you can pay the entry costs yourself, often by selling your home, you will have more certainty and flexibility.

I have seen families hold onto a home on the assumption that the person entering care will return. In reality, this is rare. Clear-headed decisions at this stage can reduce financial pressure later.

The key is balance: support your family while you are alive, but retain sufficient assets to maintain your own dignity and quality of care.

Identity, documentation and practicality 

Another increasingly common issue is proof of identity.

Banks must follow strict ‘Know Your Client’ rules. If your identification is outdated, inconsistent, or hard to verify, access to your funds can be delayed or restricted, even if there is no wrongdoing.

For those who no longer drive or travel, obtaining a government-issued Proof of Age photo ID can be a simple but powerful step. This is best done at the time of (or before) surrendering a Drivers Licence and/or expiry of your passport.

Consistency across names, trusts, bank accounts and legal documents is also essential. Small inconsistencies can create disproportionate complications.

Trust structures themselves require careful review. Changes in tax rates, trustee arrangements or beneficiary circumstances can affect how income is distributed and taxed. These structures should not be left untouched for decades.

Planning for transition, not just death 

Over the years, I have shared in the triumphs and setbacks of many client families. The most successful transitions are rarely accidental. They are the result of early conversations, documented intentions and structured planning.

Estate planning is not morbid. It is responsible.

It is about:

• Protecting your family
• Preserving your business legacy
• Reducing conflict
• Maintaining control for as long as possible.

A will is an important starting point. But it is only one part of the broader picture.

If you have not reviewed your estate plan recently, including your powers of attorney, business agreements, gifting strategy and aged care funding, now may be a good time to do so.

Because transition is inevitable. Planning for it is optional.

For more information about this topic, you’ll find my article on Estate planning – where to start? A good next step is to get in touch.

About the author 

Graeme Hodge is Founder and Director at Holman Hodge. He has been providing personalised advisory services to pharmacy enterprises and groups for more than 30 years. The longevity of his client relationships has seen him share the triumphs and support the setbacks of both their business and personal lifecycle, developing his specialty of life and business transition.

What Division 296 means for your retirement savings

Changes to Australia’s superannuation tax rules are now law and, while they don’t affect everyone, they could have a meaningful impact on those with larger super balances. From 1 July 2026, the introduction of Division 296 means higher taxes will apply to earnings on superannuation balances above a set threshold. With plenty of commentary – and confusion – around what this change means, it’s important to understand who is affected, how the tax works, and whether it could influence your long-term retirement planning.

The Division 296 superannuation tax passed both houses of Parliament on 11 March 2026 and is expected to become law following royal assent.

What is Division 296 tax?

Division 296 is a new tax that targets individuals with a total combined superannuation balance exceeding $3 million. New tax rates will be applied to superannuation earnings, with those above $3 million taxed at 30% and those above $10 million taxed at 40%. Individuals may choose to release the tax from their superannuation fund or pay it themselves.

The following table shares the new, tiered tax rate thresholds:

The $3 million and $10 million thresholds will be indexed with inflation in increments of $150,000 and $500,000 respectively.

Date of effect

The tax applies to earnings from the 2026-27 financial year.

To make the new superannuation tax rules easier to understand, it can help to look at a real‑world example. This example shows how Division 296 may apply to someone with a higher super balance, even when they have planned carefully and acted within the rules.

Example:

Like many of our clients, Sarah has spent years building her superannuation, with the goal of a comfortable retirement. By contributing consistently over time, she has grown her superannuation to $4 million. During the year, her super balance increases by $200,000 due to investment growth.

As 25 per cent of her balance exceeds the $3 million threshold, Division 296 is triggered, and 25 per cent of the earnings ($50,000) are subject to the additional 15 per cent Division 296 tax.

This results in an additional tax of $7,500.

While the changes won’t affect most Australians, Sarah’s example illustrates how the new tax works in practice and why understanding the details can provide confidence and peace of mind when reviewing your own retirement position.

Unrealised Capital Gains

The legislation allows a “cost base reset” election at 30 June 2026. This means that the new Division 296 tax will apply only to future growth, not to investment gains built in prior years.

Importantly, this reset applies only for Division 296 purposes and does not change the cost base for Capital Gains Tax purposes.

The election must be made in the 2027 superannuation fund tax return.

Transitional Provisions

For the first year of operation (2026–27), special rules apply:

• The taxable proportion will be based on the member’s total super balance at 30 June 2027.
• The opening balance at 1 July 2026 is not used in determining the taxable proportion for that year.

From the 2027–28 financial year onwards, the standard calculation method will apply (the greater of the opening or closing Total Superannuation balance).

This may provide an opportunity to withdraw funds or sell assets with large unrealised losses during the 2026–27 year to reduce or eliminate Division 296 exposure.

What you should do now

In many cases, paying the Division 296 tax may be preferable to reducing your superannuation balance to avoid it, so it is important to carefully consider any strategy.

Speak to your Holman Hodge adviser about undertaking a review of your specific circumstances to determine what works best for you.

A surprising challenge as we age 

For many of us, proving who we are is something we rarely think about. We open bank accounts, pay bills and manage our finances without question. But as we age, particularly if health or mobility declines, something that once felt simple can become unexpectedly difficult.

We’ve recently seen this firsthand while supporting an elderly client living in aged care.

She is no longer able to manage her own financial affairs. As part of its ongoing compliance obligations, her bank initiated a routine ‘Know Your Client’ (KYC) review when we wanted to apply for a credit card to manage incidental purchases. On the surface, this is standard practice. In reality, it created a complex and stressful situation.

She does not hold a current driver’s licence or passport. She has mobility issues, making it difficult to attend a branch in person. To complicate matters further, the name on her bank account did not fully align with her marriage certificate from a second marriage.

Until these issues are resolved, there is a real risk that her bank accounts could be restricted or frozen; an outcome that would directly affect her ability to pay for care and day-to-day needs.

What followed was a time-consuming process of correspondence, document reviews, and attempts to find a workable solution. It’s a situation that highlights a growing issue for older Australians: proving you exist can become a genuine challenge.

Why this is happening

Banks and financial institutions are under increasing regulatory pressure to verify customer identity. KYC requirements apply to everyone, regardless of age or circumstance. While the intention is to prevent fraud and protect customers, the systems are often built around assumptions that no longer hold true for many older people.

Common challenges include:

• No current photo ID, such as a passport or driver’s licence
• Reduced mobility, making in-branch verification difficult
• Name inconsistencies due to marriage (particularly second marriages), divorce or historical record-keeping
• Older documents that don’t align neatly with modern identification standards.

When these factors combine, even long-standing bank customers can find themselves unable to satisfy verification requirements quickly.

The very real risks

The consequences of unresolved identity verification go beyond inconvenience. If banks are not satisfied, they may restrict access to accounts, even where there is no suspicion of wrongdoing.

For older individuals, this can mean:

• Delays in paying aged care fees or medical expenses
• Inability to access funds for everyday living
• Increased stress for family members, carers, executors, and attorneys trying to help
• Significant time and cost spent resolving issues that could have been avoided.

These risks are often not considered until a problem arises, by which time, options may be limited.

What’s the solution?

As with much in life, failing to plan is planning to fail!

Keeping your current identity documents – like your driver’s licence and passport – up-to-date is an obvious step. But there may come a time when updating your licence isn’t an option. Another practical solution is obtaining a Proof of Age (Photo ID) card.

A Proof of Age card is a government-issued photo ID available in every Australian state and territory. It’s designed for people who do not have a driver’s licence or passport and can be used to verify both age and identity, from 17 years and 11 months to eternity.

While each state has its own application process, these cards can be particularly valuable for older Australians who:

• No longer drive
• Don’t hold a passport
• Need an alternative form of photo identification for banks and other institutions.

Importantly, this is something best arranged before mobility or capacity declines further.

This issue reinforces the importance of early planning. Alongside estate planning documents such as wills, enduring powers of attorney and medical directives, it’s worth taking the time to ensure that:

• Names are consistent across identification, bank accounts, and legal documents
• Suitable photo ID is in place
• Trusted people know where key documents are stored
• Financial institutions are aware of appointed attorneys or representatives.

These steps can dramatically reduce stress for everyone involved and help ensure continuity when it matters most.

Proving you exist shouldn’t become harder as you age, but for many people, it does.

With banks applying stricter verification standards and life circumstances changing, what feels like a small administrative detail can quickly become a major problem. The good news is that with awareness and early action, many of these issues can be prevented.

If you’re supporting an older family member, or planning for your own future, it may be worth reviewing identification, documentation and authority arrangements now.

Get in touch if you need advice specific to your own situation.

We are now less than six months away from the introduction of Payday Super. It is important that employers understand this change and take the necessary steps to ensure they are compliant no later than 1 July 2026. Early adoption is strongly encouraged.

What is Payday Super?

Payday Super is a new requirement introduced by the Australian Government. From 1 July 2026, employers must pay superannuation guarantee (SG) contributions at the same time they pay employees’ salary and wages, instead of quarterly.

Why Payday Super?

Payday Super is designed to strengthen Australia’s retirement system by:

• Ensuring employees receive their superannuation more regularly
• Reducing the risk of unpaid or underpaid super
• Making it easier for employees to track contributions in real time
• Supporting fairer and more consistent retirement outcomes.

Changes to superannuation calculations

Superannuation Guarantee will be calculated at 12 percent of an employee’s Qualified Earnings (QE).

Qualified Earnings includes:

• Ordinary Time Earnings (OTE)
• Commissions paid to employees
• Salary sacrifice amounts that would qualify as QE if they were not sacrificed
• Earnings paid to workers under an expanded definition of employee, including certain contractors paid mainly for their labour.

What this means for employers

Under the new rules, employers must:

• Pay superannuation on payday, and
• Ensure contributions reach employee funds within seven business days.

This represents a significant change to cash flow timing for many employers currently paying quarterly.

If super is not paid on time

Employers who fail to meet their obligations may face:

• Interest charges
• Penalties under updated Super Guarantee Charge (SGC) rules.

These rules ensure employees are placed in the same financial position as if superannuation had been paid on time.

Small Business Clearing House (SBCH) closure

The Australian Taxation Office Small Business Clearing House will close on 30 June 2026.

Employers currently using this service will need to transition to an alternative payroll or clearing house solution before that date.

What employers should do now

• Review your payroll software provider’s plan. Most major suppliers are preparing updates to support Payday Super. Engage early to ensure smooth implementation.
• Prepare for the closure of the SBCH. If you currently rely on it, begin assessing alternative software solutions.
• Seek advice if unsure. Contact your Holman Hodge advisor if you need guidance or assistance selecting compliant software.

Can we give you a hand?

If you would like any further detail on the above please contact your Holman Hodge advisor.

Buying a pharmacy is a big decision at any stage of your career. Whether you’re stepping into ownership for the first time or adding to your portfolio, the process involves more than assessing profitability or negotiating price. It’s about understanding how the business operates and how you can add value.

We’ve already explored the fundamentals of ownership in our earlier blog, Taking the leap: A pharmacist’s guide to owning your first pharmacy. In this article, we take a closer look at the next layer of consideration: what to think about before you buy – important for your first or subsequent pharmacy purchase.

1. Understanding cost beyond the purchase price 

The price of the business is only part of the equation. How you fund the purchase and how you structure your debt are just as important. The right structure protects cash flow and ensures the business can comfortably service its obligations.

When assessing affordability, consider your repayment options and how financing will affect working capital, especially in the early months of ownership, when cash flow can fluctuate or be more unpredictable. Equally, focus on how you can add value once you own the business. A valuation reflects the current state of the business, not its potential.

Consider opportunities such as:

• Reducing labour costs through better rostering or workflow efficiencies.
• Expanding professional services – vaccinations, medicine packing for aged care, or new health programs.
• Strengthening front-of-store sales through improved inventory management, merchandising, and product mix.
• Leveraging technology to streamline operations, improve customer engagement or enhance reporting.
• Negotiating more competitive supplier terms to improve margins, and by extension, cashflow.

A successful purchase is not about finding a perfect business. The most successful owners look for potential, not perfection, and understand where they can create meaningful value over time.

2. Understanding culture, operations and competition 

Every pharmacy has its own culture and operational rhythm – shaped by its staff, management style, and customer base. Before you buy, ask yourself:

• How stable and skilled is the existing team?
• Are staffing levels sustainable? (Regional locations, for instance, can face recruitment challenges.)
• What is the pharmacy’s reputation in the community, and how does it compare with competitors?
• What level of community engagement does the Vendor have? And does this present an opportunity?
• How efficient are the operational processes – ordering, dispensing, service delivery?

Buying a pharmacy means inheriting both its people and its processes. A good cultural and operational fit will make the transition smoother and the business more resilient.

3. Structuring ownership for the long term 

Your ownership structure can have lasting implications for tax, governance, asset protection, and scalability. Choosing the right structure early can save significant costs and complexity later down the track.

When planning ownership structure, consider questions such as:

• Will you own the pharmacy alone, or with partners or shareholders, and how will the decision making and profit distribution work?
• If you have multiple locations, will they share staff, systems, or other resources, and how will these arrangements be documented or agreed upon?
• Are your entities and business structure set up to support future growth, including the potential to introduce new partners or shareholders down the track, or succession planning, with minimal disruption to operations and customer service?
• Have you ensured that your entity and ownership structure comply with the requirements of both your state pharmacy authority and the national pharmacy body, noting that these rules influence who can hold ownership and how entities must be arranged?
• Does your proposed business structure support efficient tax outcomes not only now, but as the business grows or circumstances change?

The right structure should balance your personal goals with operational efficiency, risk management and compliance obligations. Taking the time to get this right ensures long term flexibility, whether you expand, exit or bring others into the business in the future.

4. Getting your ducks in a row 

   Once you’ve identified a pharmacy to buy, preparation is key. Delays or incomplete documentation can delay or even prevent settlement or trading approval. To keep the transaction moving smoothly, make sure:

• All commercial terms are negotiated and agreed upon, with the contract executed and a clear settlement date booked.
• Your applications to national and state pharmacy authorities are complete, compliant and submitted within the required timeframes.
• Finance Approval is in place, and your lender has the required information and documentation in place for settlement. You have a clear ‘right of occupancy’ – whether by lease or ownership of the premises.
• Franchise agreements, utilities, insurance policies, trading names and supplier account agreements are prepared to transfer or open in your new business name.
• Payroll (Including Workers’ Compensation insurance and payroll tax considerations, particularly if this is your second or subsequent acquisition), banking, point-of-sale systems are set up in advance so you can trade from day one.
• Your systems and relevant applications for professional services, claiming, and reporting are also set up so you are able to start your PBS claims.
• Staff onboarding, rosters and employment contracts have been reviewed, executed and in place so the team is ready for transition.

Being organised avoids costly downtime and ensures a seamless handover from the previous owner.

Buying a pharmacy is both a professional and financial milestone. Preparation, structure and clear planning give you the best foundation for long-term success

If you’re considering an opportunity, revisit Taking the Leap: A Pharmacist’s Guide to Owning Your First Pharmacy for the fundamentals, and speak with our pharmacy advisory team about how to assess value, structure funding, and prepare for a smooth transition.

About the author 

Serry Leombruno is an Assistant Manager at Holman Hodge. He works with a stable of pharmacy clients, supporting tax and compliance, management accounting and advisory around matters such as restructures, cashflow and transactions. Coming from commerce, with a pharmacy and retail background, he has an understanding of systems and processes, providing insight into business improvement.