This October, Holman Hodge is opening its doors to ADL Fashion Week for an evening where business, creativity and couture come together.

Dress for Success – Where Business Meets Couture will transform the Holman Hodge workplace into a live couture editorial on Saturday, 10th October, as part of the 2026 ADL Fashion Week program.

Hosted at Holman Hodge’s Level 15 offices at 45 Pirie Street, the interactive event will bring fashion into an unexpected setting, inviting guests to experience the modern workplace through a more creative lens.

Where business meets creativity

The evening will blend fashion, business and immersive storytelling, with live performance, networking and premium South Australian hospitality bringing the space to life.

Guests are also encouraged to become part of the experience, embracing a creative business avant-garde dress code with statement pieces, artistic styling and couture-inspired looks.

For Holman Hodge, hosting the event is an opportunity to support Adelaide’s creative community while bringing together people from across business, fashion and industry in a different way.

Just as successful businesses are shaped by individuality, ideas and the people behind them, Dress for Success celebrates personal expression and challenges traditional ideas of what the modern professional environment can look like.

ADL Fashion Week 2026

Running from 7–11 October, ADL Fashion Week brings together designers, retailers, creatives and businesses through a city-wide program celebrating South Australian fashion and style.

Holman Hodge is proud to be an event partner for Dress for Success – Where Business Meets Couture, alongside Next Work Space, Design Eyewear, David Heatley Photography & Tahlia Fellows Photography, The Lane Vineyard and On Cockatoo Lane Catering.

Dress for Success – Where Business Meets Couture
Saturday, 10 October 2026
6:00pm – 8:00pm
Holman Hodge, Level 15, 45 Pirie Street, Adelaide
Tickets: $90

Purchase tickets via ADLFASHIONWEEK.COM

We look forward to welcoming guests to Holman Hodge for an evening that brings a little couture into the corporate world.

The Federal Government has completed consultation on draft legislation proposing significant changes to the taxation of discretionary trusts. The consultation period closed on 18 September 2026, and the Government is considering feedback from industry groups, businesses and professional advisers before determining the final form of the legislation.

If enacted, the measures would represent a substantial change for many family groups, business owners and investors who use discretionary trusts for income distribution, asset protection and succession planning. However, the proposals remain in draft form and important details may change.

What has been proposed? 

The Government has proposed a 30% minimum tax on certain discretionary trust income from 1 July 2028. Under the draft legislation:

• The trustee would be responsible for paying the minimum tax.

• Non-corporate beneficiaries would generally receive a non-refundable tax offset for the minimum tax paid by the trustee in respect of their share of trust income.

• Corporate beneficiaries would be treated differently and would not receive the beneficiary tax offset under the current draft.

• Certain trusts and categories of income would be excluded from the minimum tax.

• An election may allow eligible existing trusts to make fixed distributions to nominated beneficiaries and remain outside the minimum tax regime.

• Rollover relief may be available for eligible trusts that choose to restructure.

The draft legislation also proposes new rules for determining whether a trust is a fixed trust.

Who may be affected? 

The proposals are most likely to be relevant to:

• Family groups using discretionary trusts to distribute business or investment income.

• Property investors holding assets through discretionary trusts.

• Businesses that distribute income to multiple family members.

• Trust structures involving corporate beneficiaries.

• Families reviewing succession or estate planning arrangements involving discretionary trusts.

The actual impact will depend on the trust deed, the nature of the trust income, the beneficiaries and the final form of the legislation.

What should you do now? 

Our advice is to prepare, but not act prematurely.

• Do not restructure solely because of the current proposals.

• Avoid transferring property, investments or business assets solely in response to the draft legislation.

• Consider an initial review of the trust structure so potential issues and information requirements can be identified early.

• Seek advice where a trust regularly distributes income to multiple family members or uses a corporate beneficiary.

Look beyond tax 

Any future decision to restructure should consider more than tax outcomes alone. Asset protection, succession planning, estate planning, financing arrangements, transaction costs, state taxes and duties, and broader commercial considerations may be equally important.

Our view 

While these proposals have the potential to significantly change the taxation of discretionary trusts, the legislation remains in draft form and important aspects may still change.

For most of our clients, the prudent approach is to understand the potential impact on their existing structure without rushing into costly restructuring decisions before the final law is known.

Holman Hodge is monitoring developments. Please contact your Holman Hodge adviser for further information.

A significant shift in how trust distributions are viewed

On 10 June 2026, the High Court handed down its decision in Commissioner of Taxation v Bendel. This is a major development for family trusts and private business groups that use corporate beneficiaries as part of their structure.

For many years, business owners have used trusts to distribute income to a company (often called a “bucket company”) so that profits are taxed at the company tax rate, while the cash stays in the operating company to support the business or fund investments.

The Bendel decision directly affects how these arrangements are treated.

The issue – unpaid trust distributions

In a typical structure:

• A trust distributes income to a company
• The company pays tax on that income
• The cash is not paid out immediately

This unpaid amount is called an unpaid present entitlement (UPE).

For many years, the ATO treated many UPEs as loans for Division 7A purposes. This meant:

• Complex compliance requirements
• The need to document loan agreements
• Risk of deemed dividends if not managed correctly

What the High Court decided

The High Court rejected the ATO’s position on the facts of this case.

In simple terms, the Court said:

• A UPE is not automatically a loan just because it remains unpaid
• Doing nothing (that is, not calling for payment) is not the same as lending money
• Whether a loan exists depends on the actual legal and commercial relationship

The Court looked closely at the trust deed, trustee resolutions and accounting treatment. In Bendel, it found the amounts were held separately for the company and that no borrower–lender relationship existed.

Why this matters

This decision challenges a long-standing ATO approach that has influenced trust planning for more than a decade.

In practical terms:

• UPEs may no longer trigger Division 7A automatically
• Some existing arrangements may have been more conservative than necessary
• There may be planning opportunities going forward

However, this does not mean all UPE arrangements are now safe.

Important cautions

While the decision is positive, there are still important risks:

• The ATO is reviewing the decision and will update its guidance
• Other tax rules may apply depending on the facts, including:
  • Subdivision EA
  • Section 100A (reimbursement agreements)
  • Part IVA (anti-avoidance rules)
• Loans, payments or benefits provided to individuals can still trigger Division 7A
• Each structure depends heavily on its trust deed and how it is operated

In short, the decision removes one risk, but does not remove all risk.

Federal Budget changes – a bigger picture issue

At the same time, the 2026–27 Federal Budget proposes major changes to how discretionary trusts are taxed from 1 July 2028.

Key proposed changes include:

• A minimum 30% tax on trust income
• Limited or no benefit from distributing income to lower-tax beneficiaries
• Corporate beneficiaries not receiving credits for tax already paid at the trust level

If enacted, these changes may significantly reduce the effectiveness of traditional “bucket company” strategies and could lead to double taxation in some cases.

What should you do now

Given the uncertainty, a cautious and practical approach is recommended:

• Do not unwind existing structures without advice
• Continue to follow established processes for year-end distributions
• Review your trust deed, resolutions and documentation
• Do not assume Bendel applies to your situation
• Wait for further ATO guidance before making major changes

Most importantly, review your position in the context of both the Bendel decision and the proposed Budget changes.

Final thoughts

The Bendel decision is a significant and welcome clarification for many business owners. It removes a key technical risk that has applied to trusts and corporate beneficiaries for many years.

However, it comes at a time when broader tax reforms may change how trusts are used in the future.

The combination of these developments means this is an ideal time to review your structure and ensure it remains appropriate.

Need help?

If you would like to understand how the Bendel decision impacts your situation, please contact your Holman Hodge adviser.

As 30 June rapidly approaches, pharmacy owners should be actively reviewing their business and preparing for year-end obligations. Beyond the usual tax considerations, pharmacies face a unique mix of operating and accounting complexities that require a tailored approach. At Holman Hodge, we work closely with pharmacy clients and understand the critical role that clean, accurate reporting plays in presenting a true picture of your business to stakeholders, including banks.

Here are key focus areas for pharmacists to ensure a smooth and successful end to the financial year.

Stocktake

Performing a stocktake at year-end is essential, not just for compliance but for operational insight. Pay special attention to negative stock balances. These typically indicate system errors or data entry issues and can distort both profit and inventory valuation.

For a clean stocktake:

• Ensure physical counts align with system data.
• Investigate and correct negative stock positions.
• Identify and write off expired, damaged or slow-moving stock.

Choosing the appropriate valuation method (cost, market value, or replacement) is also crucial for consistent financial reporting.

As we close up the end of another financial year, please remember to run a Stock on Hand and Owing Scripts report as at 30 June 2026. The report should be run before trading on the 1st of July 2026.

Review Debtors

Pharmacy owners should closely review their Shop accounts and debtor ledgers, especially amounts owed from PBS (Pharmaceutical Benefits Scheme) accruals, before 30 June. These can materially affect your reported operating profit. Inaccurate debtor records, particularly over or under reporting of PBS accruals may lead to misleading financial performance metrics. This has the potential to impact your ability to meet bank covenant requirements, especially when profit-based metrics are tested.

Take the time now to validate debtor balances and ensure reporting reflects actual receivables.

Review Creditors

As with debtors, aged creditor listings should be reviewed for accuracy. Misstatements in liabilities can distort your business’s working capital position and again lead to misleading financial ratios used in banking or valuation scenarios.

Verify all supplier statements, follow up on any long-outstanding amounts, and ensure your creditor balances reflect only real, payable obligations.

Inter-Store Transfers

Multi-store operators should review and reconcile all inter-store transfers. Unreconciled or incorrect transfers between locations can result in double-counting or under-reporting of stock, skewing profit margins across stores.

Establish a formal process to review these transfers and ensure all records are current and accurate before 30 June.

Payroll Tax

With pharmacy staffing levels on the rise and wage increases flowing through, many owners may be edging closer to payroll tax thresholds, especially if operating across multiple locations or under related business structures.

Each state and territory in Australia has its own payroll tax threshold, ranging from around $900,000 to over $2 million, depending on the jurisdiction. If your total Australian wages exceed the applicable state threshold, you may become liable for payroll tax, even if your business has not previously been subject to it.

Key considerations:

• Review your total wages paid, including superannuation and certain contractor payments.
• Consider if any grouping provisions apply (e.g. related entities under common control).
• Plan ahead for any future wage growth or staffing changes that may tip you over the line.

At Holman Hodge, we help pharmacy owners understand whether they’re at risk of crossing a threshold and develop proactive strategies to manage and, where appropriate, mitigate their payroll tax exposure. This might include reviewing business structures, reallocation of wages, or exploring legitimate grouping exemptions.

If you’re unsure of your position, now is the time to review it before the new financial year begins.

Instant Asset Write-Off Rules

A reminder that eligible pharmacies with aggregated annual turnover of less than $10 million may be able to claim an immediate tax deduction for the business-use portion of eligible depreciating assets costing less than $20,000 each (GST exclusive).

The $20,000 threshold applies on a per-asset basis, meaning multiple assets may qualify for an immediate deduction, provided each individual asset costs less than the threshold. The asset must be first used or installed ready for use for a taxable purpose between 1 July 2025 and 30 June 2026. The measure can apply to both new and second-hand assets.

When assessing whether an asset is below the threshold, care should be taken with the total cost of the asset, including any relevant second element costs or cost additions. These costs may cause the asset, or relevant addition, to exceed the threshold and therefore fall outside the immediate deduction rules.

Assets costing $20,000 or more cannot be immediately written off under these rules. For eligible pharmacies using the simplified depreciation rules, those assets can generally be allocated to the small business depreciation pool and depreciated at 15% in the first income year and 30% in each subsequent income year.

Owners & Managers should also review their fixed asset schedule before year-end to identify any assets that have been sold, scrapped, destroyed, replaced, or are no longer used and are not expected to be used again. Your advisor will determine, if a deduction may be available if the asset’s termination value is less than its adjustable value.

Pharmacies with aggregated turnover of $10 million or more are not eligible to use the small business simplified depreciation rules and will generally need to apply the ordinary depreciation rules, based on the asset’s effective life.

Don’t Forget General Tax Planning

In addition to pharmacy-specific tips, make sure you’re across broader tax planning strategies.

We’ve outlined these in our recent insights:

• Planning for the end of the financial year
• 2026 Federal Budget – Summary of Key Tax Changes
• Payday Super & Contractors

From superannuation contributions and asset write-offs to prepaid expenses and trust resolutions, these checklists are critical to maximise your tax outcomes and avoid any costly oversights.

How we can help?

If you’d like help reviewing your pharmacy’s records ahead of 30 June or want an estimate of your tax position, please reach out by contacting your Holman Hodge advisor directly. Clean data is not just about compliance, it protects your business reputation, supports decision making, and ensures financial reports are truly reflective of operational performance.

About the author

Jacob Prestia is a Senior Manager at Holman Hodge. He understands that his work with pharmacy clients encompasses much more than just the figures presented in compliance and management reports. He fosters personal relationships that extend to providing advisory services on critical matters such as restructures, cash flow management, and transactions, in addition to supporting clients in areas like property ownership, syndication, and development.

Year end tax planning 

As we approach the end of the financial year it’s a good time to start thinking about what you could do to minimise your tax liability, as well as other actions required before the end of the financial year (30 June).

There are some things that are new for 2026 and there are things that we talk to clients about every year.

Discretionary trusts

• Trust minutes/resolutions: Trustees of discretionary trusts have to resolve where they would like to distribute their income for the 2026 financial year prior to 30 June 2026. We will discuss distribution strategies with the trustees and assist with the documentation of these ahead of 30 June.
• Careful consideration needs to be had with regards to trust distributions across family groups. The ATO has provided guidance which details their position with regards to this, and where it impacts your group, we will discuss this with you in your year-end tax planning meeting.  Alternatively, you can contact us directly to discuss.

Tax Planning Tips & Information

• Base Rate Entity: The company tax rate for base rate entity companies remains at 25%.
• Asset purchases: If you are an eligible small business (aggregated turnover less than $10 million) you can generally claim an immediate deduction for assets purchased under $20,000, provided the asset is ready for use by 30 June 2026.
• Superannuation (personal): You are able to claim a tax deduction for any personal superannuation contributions up to your $30,000 cap for the 2026 financial year (which includes contributions from your employer). To claim a deduction for these super contributions, you must give your super fund a notice in the approved form and get an acknowledgement from the fund. There are also other eligibility criteria you must meet. If you haven’t used your full cap for the 2021, 2022, 2023, 2024 and 2025 financial years, you may also be able to claim an additional tax deduction for superannuation contributions up to the value of the unused cap for those years. If this is something you would like to utilise, please let us know and we can assess your eligibility and calculate how much can be utilised from prior years. This is the last year that any unused cap amount for 2021 can be utilised.
• Capital Gains Tax: If you have made a capital gain during the 2026 financial year, you may consider realising a capital loss (if appropriate) on another asset to offset the capital gain.
• Cash flow: Vary PAYG instalments for the June 2026 quarter (if appropriate). This is best done in conjunction with an estimate of your 2026 tax position.
• Working from home deductions: You can use the Fixed Rate method and claim a cents per hour amount for the 2026 financial year based on the ATO rate where you worked from home. Make sure you have detailed records that record the total number of hours you work from home and the expense you incur while working from home. You can also use the actual cost method.
• Substantiation: Ensure that you retain receipts or substantiation for any expenses you would like to claim such as those related to your work, self-education, travel and donations.
• Motor vehicle travel: If you travel over 5,000kms in your motor vehicle for work, consider whether you should maintain a logbook or whether you need to complete a new one (to be completed every five years). If you are relying on a logbook prepared from a previous year you also need to record the odometer reading as at 30 June.
• Trading stock: Conduct a stocktake at 30 June, write off any obsolete or damaged stock and choose your stock valuation method. You can use cost, market selling value or replacement value, for each item, and this can be changed each year. If you are an eligible small business entity and your trading stock value has not moved by more than $5,000 you do not have to do a stocktake.
• Superannuation (businesses): Pay your super before 30 June in order to get a tax deduction for the 2026 financial year. Super contributions need to have been received by the superannuation fund by 30 June – confirm with your software/clearing house provider if there are any cut-off dates to ensure this occurs. From 1 July 2026:
  • Super guarantee contributions will be due on payday, you should ensure your payroll systems, cashflow and payment/clearing house processes are ready for this change.
  • Super guarantee contributions will change from an Ordinary Time Earnings calculation to a Qualifying Earnings calculation, in particular, all commissions are expressly included, regardless of whether they were earnt outside ordinary hours.
• Accrued expenses: If you have a presently existing liability to pay an amount at 30 June, even where you may not have an invoice, the amount should be accrued to enable a tax deduction to be claimed in the current year.
• Prepaid expenses: If your business is a small business entity, you are entitled to a tax deduction where expenses covering a period of up to 12 months are prepaid.
• Bad debts: Review and write off bad debts to ensure a deduction in 2026 financial year.
• Bonuses to staff: if you pay bonuses to employees, a simple accrual may not be enough to ensure a deduction at 30 June.  To claim a deduction, you must ensure that you have presently existing obligation to pay the bonus and that it is quantifiable.

Can we give you a hand?

If you would like any further detail on the above, or for an estimate of your tax position for the 2026 financial year, please contact your Holman Hodge advisor.

The information in this email is factual information, and not financial advice. The information is objectively ascertainable information, and is not tailored to your personal circumstances. You should consider obtaining financial advice before making a decision in relation to this information.