💰Building a Cash Reserve: Your Safety Net for Surprises
Learn how to build a cash reserve, save time with smart business systems, legally halve your capital gains tax, use unit trusts wisely, and plan how your super affects your Age Pension.
Hello Tax Talk – Edition 29! Hello Tax Talk – Edition 29!
💰 Building a Cash Reserve — Your Safety Net for Surprises, Plus Smarter Business Systems, CGT Discounts, and Super Tips for Pension Age
This week, we’re focusing on something every small business owner worries about — but few plan for properly: running out of cash.
Profit on paper is great, but if you can’t pay your bills on time, your business can hit a wall fast. In our headline article, we show you how to build a cash reserve that protects you from late payers, slow seasons, or unexpected hits — so you’re not stuck living invoice to invoice. You’ll learn how much to aim for, where to park it, and how to grow your buffer without sacrificing everyday operations.
We’re also covering:
✅ Business systems that save you hours each week (and keep clients happy)
✅ How to halve your tax when you sell an investment property or shares, with the CGT discount
✅ What your super means for your Age Pension eligibility — and how to plan ahead
✅ The final piece in our tax structures mini-series: unit trusts and when they make sense
Here’s what’s inside:
Tax Tips: Unit Trusts — How They Work and When They’re Worth It
Why they’re a go-to for joint investments or property syndicates — and what makes them different from family trusts.
Ledger Lowdown: Building a Cash Reserve — Your Safety Net for Surprises
Spot cash gaps before they hit — and sleep better knowing your buffer has your back.
The Business Boost: Business Systems That Save Time
Free up your headspace and deliver consistent service — even when you’re busy.
Investor Insider: CGT Discounts — How to Pay Less When You Sell
Hold it long enough and you could halve your taxable gain. We break down who qualifies and how to get it right.
Super Strategies: Superannuation and the Age Pension
Super counts towards your pension eligibility once you hit age 67 — here’s how to plan and avoid nasty surprises.
Also, as this is the first newsletter for the month, you'll find our handy list of key dates for July 2025 to help you stay compliant and organised.
Ready to feel more in control of your money, your systems, and your future? 👉 Dive in and read the full edition now.
Not on the list yet? Now’s the time — because smarter planning today means fewer surprises tomorrow.
The Ledger Lowdown: Building a Cash Reserve — Your Safety Net for Surprises
Last week, we unpacked cash flow forecasting — the habit that helps you spot gaps before they hit. But forecasting is only half the story. The real power comes when you combine it with a cash reserve — your business’s own safety net.
Why? Because even with the best plan, surprises happen. A late-paying customer. An unexpected tax bill. A slow sales month. A healthy reserve buys you breathing room — so you can solve problems calmly, not desperately.
💡 Here’s how to start building your cash reserve (even if money’s tight right now):
1️⃣ Know Your Baseline Buffer
First, figure out your minimum operating expenses — the absolute essentials to keep your business running for a month. Wages, rent, supplier payments, tax obligations.
✅ A good rule of thumb? Aim for at least one to three months of core expenses in your reserve account.
2️⃣ Park It Somewhere Safe
Keep your reserve separate from your everyday trading account. A dedicated high-interest savings account or an offset account can work well.
✅ The point is: out of sight, out of mind — so you’re not tempted to dip into it for everyday spending.
3️⃣ Build It Up Bit by Bit
Don’t worry if you can’t stash three months’ worth overnight. Start small and make it a habit. Allocate a % of profits each month. Treat it like a non-negotiable expense.
✅ Even $500 a month adds up over time — and creates a cushion that grows with you.
4️⃣ Use It Wisely
Your cash reserve isn’t for splurges — it’s your insurance policy for genuine cash flow shortfalls or emergencies. If you use it, have a plan to top it back up.
✅ The goal is to never get too comfortable running at zero.
🔍 Real Example:
Zara owns a boutique events business. When COVID hit, she had a 3-month cash reserve tucked away — enough to cover overheads and pivot to virtual services. While competitors scrambled, she stayed afloat, supported her team, and came out stronger. Today, she still tops up her reserve every quarter — because she knows peace of mind is priceless.
✅ This Week’s Ledger Check:
Do you have a separate cash reserve account? How many weeks of expenses could you cover right now if sales slowed? What’s your plan to build or replenish your buffer?
📊 Bonus Tip: Pair your cash flow forecast with your reserve target — so you always know how much safety net you have if a gap appears.
At HelloLedger, we help business owners build strong financial foundations — so surprises don’t turn into stress.
📅 Next Edition: We’ll share Why a Second Bank Account Is a Bookkeeper’s Secret Weapon — a simple strategy that can instantly make your cash flow easier to manage.
Tax Tips: Unit Trusts — When and Why They’re Used
Over the past two weeks, we’ve looked at companies and family trusts — and how the right structure can support your business and investment goals. This week, we’re wrapping up the series with unit trusts: a lesser-known but powerful structure for joint investments, property syndicates, and family arrangements that need certainty over ownership.
Let’s break it down:
What Is a Unit Trust?
A unit trust is a legal structure where the trust’s assets are divided into units — like shares in a company. Each unit holder owns a defined portion of the trust’s assets and income, based on how many units they hold. This creates fixed entitlements, giving certainty and transparency to investors.
Unlike a family trust (where the trustee has discretion to decide who gets what each year), a unit trust locks in each investor’s share, making it ideal for unrelated parties or family members who want clear rights and responsibilities.
Unit trusts are commonly used for:
Joint property investments
Family property ventures where each member invests a set amount
Syndicates pooling funds for a single project
Partnerships that want more structure and asset protection than a general partnership
The trustee can be an individual or (more commonly) a company, offering the same benefits we discussed last week: better asset protection, easier succession planning, and clear separation of personal and trust assets.
Key Features of a Unit Trust:
✔️ Fixed Entitlements — Each unit holder’s share of income and capital gains is proportional to their units held. There’s no discretion to change this annually.
✔️ Easy to Add or Remove Investors — Units can be bought, sold, or transferred — similar to shares — which can make raising capital or exiting simpler than other structures.
✔️ Tax Transparency — Like other trusts, the unit trust itself doesn’t pay tax if all income is distributed. Instead, each unit holder pays tax on their share at their own marginal rate.
✔️ Ideal for Joint Ventures — When unrelated parties invest together, a unit trust ensures everyone knows exactly what they own and what they’ll receive.
Here’s What to Watch Out For:
🔸 No Discretion on Distributions — Trustees must distribute according to unit holdings — there’s no flexibility to allocate income to low-tax-rate beneficiaries like with a family trust.
🔸 Losses Can’t Be Distributed — Like discretionary trusts, tax losses stay in the trust. They can only be offset against future profits.
🔸 Complex for Active Businesses — Unit trusts are generally best for passive investments (property, shares) rather than trading businesses — though they can work in some situations.
🔸 Stamp Duty and CGT on Transfers — Transferring units can trigger stamp duty and capital gains tax — so planning ahead is key.
When Is It Worth Considering a Unit Trust?
✔️ You’re pooling funds with family or unrelated investors for property or shares
✔️ You want each person’s stake to be clear and locked in
✔️ You want flexibility to buy/sell units in future
✔️ You don’t need annual income distribution discretion
✔️ You’re investing long-term and want a robust joint venture structure
Real Example:
Olivia and her brother Ryan each invest $250,000 into a commercial property through a unit trust. They each hold 50% of the units — giving them clear rights to 50% of the rent and any capital gains. When Olivia later wants to cash out, she sells her units to a new investor without needing to unwind the entire structure. The trust holds the asset securely, and each investor’s interest is protected by the unit arrangement.
✅ Is a Unit Trust Right for You? Ask yourself:
Are you investing with others and want fixed ownership shares? Would you benefit from being able to add or exit investors easily? Are you pooling funds for a long-term project, like property development?
A Structure Review with HelloLedger can help you decide if a unit trust — or another structure — best fits your business or investment goals.
📅 Next week, we’ll share practical ways to avoid common small business audit triggers — so you can stay off the ATO’s radar and sleep easier at night.
💌 Want practical, no-fluff tax and business insights delivered weekly?
Business Boost: Business Systems That Save You Time
Last week, we explored client retention — why keeping the right clients is more profitable (and less stressful) than constantly chasing new ones. But here’s the missing link: even the best client relationships can fray if your internal systems are a mess.
Great systems are like a well-oiled machine behind the scenes. They free you up to focus on high-value work, deliver consistently good service, and protect your business when things get busy.
💡 Here’s how to get your business systems working for you — not against you:
1️⃣ Map Out Your Core Processes
Think about the key tasks that keep your business running: onboarding new clients, delivering services, invoicing, following up, handling support. Are these steps written down — or living only in your head?
✅ Write out a simple checklist for each major process. You can refine and automate later — but you can’t improve what you haven’t defined.
2️⃣ Automate Repetitive Tasks
Wherever possible, use tech to handle the boring bits. Email templates, scheduling tools, invoice reminders, proposal software, CRM updates — small automations save hours each week and reduce the risk of things slipping through the cracks.
✅ Start by automating the tasks you hate the most or that eat up the most time.
3️⃣ Delegate Effectively
You don’t have to do it all yourself. If you have a team — or even just a VA — clear processes make it easier to delegate without endless back-and-forth. Good systems turn tasks into repeatable outcomes.
✅ Before you delegate, make sure instructions are clear: who does what, by when, and what ‘done’ looks like.
4️⃣ Review and Tweak Regularly
Your systems shouldn’t gather dust. Check in every quarter: What’s working? What’s still clunky? What’s changed in your business that needs a new approach?
✅ Small, regular improvements add up — and keep your business lean and responsive.
🔍 Real Example:
Priya runs a growing bookkeeping practice. She was drowning in admin, chasing signatures, and onboarding new clients one email at a time. Together with HelloLedger, she mapped out her workflows, set up e-signature software, automated onboarding emails, and delegated invoice follow-ups to her assistant. The result? She’s reclaimed 10+ hours a week — and her clients get a smoother, faster experience.
✅ Your Action Step This Week:
1️⃣ Choose one process that drains your time
2️⃣ Map out the steps
3️⃣ Identify what you can automate, delegate, or document better
🧠 Smart systems don’t just save you time — they save your energy and sanity, too.
📅 Next Edition: We’ll share a practical guide to ‘When to Hire Help — and When to Wait’ — so you know when your systems can do the work and when you need real people in your corner.
Investor Insider: CGT Discounts — How to Pay Less When You Sell
Last edition, we unpacked negative gearing — and why tax savings alone won’t make a bad investment good. This week, let’s switch sides and look at the other end of your investment journey: Capital Gains Tax (CGT) Discounts.
If you own investments like property or shares, the day will come when you want to cash in — hopefully for a tidy profit. But those profits don’t come tax-free. That’s where understanding the CGT discount can put thousands back in your pocket.
1️⃣ What Is the CGT Discount?
When you sell an asset for more than you paid, you make a capital gain. This gain gets added to your taxable income for the year — but individuals, trusts, and some funds can claim a 50% discount if the asset was held for at least 12 months.
Example: You bought an investment property for $600,000 and sold it three years later for $800,000. After selling costs, you have a $200,000 gain. Instead of paying tax on the full $200,000, you pay tax on $100,000 — the discounted amount.
2️⃣ Who Gets It?
✔️ Individuals — Including sole traders and partners in a partnership.
✔️ Trusts — Many family and discretionary trusts benefit, passing the discounted gain to beneficiaries.
✔️ Super Funds — Get a smaller discount (33.33%) when they sell assets held longer than 12 months.
❌ Companies — Miss out. If your investment is owned by a company, no CGT discount applies — you pay tax on the full capital gain.
3️⃣ Timing Matters
The 12-month rule is strict. Sell even a day early and you lose the discount — potentially costing you thousands. If you’re planning to sell, check your purchase date and settlement date carefully.
Likewise, think about when you sell during the financial year. A big capital gain could push you into a higher tax bracket — or be offset if you have carried-forward capital losses.
4️⃣ Real Example
Emma sold shares she’d held for just over 12 months, making a $50,000 gain. She qualified for the 50% discount — paying tax on $25,000 instead. If she’d sold a month earlier, she’d have paid tax on the full $50,000. HelloLedger helped her check her timing, offset some old capital losses, and plan a top-up super contribution to reduce her tax bill even further.
✅ This Week’s Smart Moves:
1️⃣ Review your investments — which gains might be coming up?
2️⃣ Check the purchase date — have you met the 12-month holding period?
3️⃣ Think ahead — could timing your sale this financial year or next save you tax?
📊 Bonus Tip: The CGT discount is generous — but only if you plan ahead. A day too early can cost you thousands.
At HelloLedger, we help investors plan the timing, structure, and strategy for selling assets — so more of your profit stays in your pocket.
📅 Next Edition: We’ll look at Investment Record-Keeping Essentials — because when tax time comes, good records can make or break your claim.
💌 Want practical, no-fluff tax and business insights delivered weekly?
Super Strategies: Superannuation and the Age Pension — How They Work Together
Last week, we explored recontribution strategies — and how smart planning can reduce tax on your super for the next generation. This week, let’s bring it back to what your super means for you in retirement — especially if you’re hoping to qualify for the Age Pension.
In Australia, your super and the Age Pension go hand in hand — but they don’t always play nicely together. Many retirees are surprised to find their super affects their pension eligibility more than they thought.
Here’s what you need to know:
1️⃣ How the Age Pension Works
The Age Pension is means tested — which means Centrelink looks at your income and your assets to determine how much you can receive.
Your superannuation is counted as an asset once you reach Age Pension age (currently 67). Before then, your super is generally exempt from the test — but once you hit the qualifying age, it’s added to the pool.
2️⃣ Income Test vs Assets Test
Centrelink applies two tests:
✔️ Income Test: Looks at income from investments, work, and superannuation income streams (like account-based pensions).
✔️ Assets Test: Looks at the total value of your assets — including your super, investment properties, savings, and valuables (but not your family home).
Your pension payment is calculated under both tests — whichever results in the lower payment applies.
3️⃣ How Your Super Impacts It
If your super is in accumulation phase, it’s counted at its market value under the Assets Test. If you’ve moved it to pension phase (account-based pension), Centrelink applies deeming rates to estimate income for the Income Test.
So how you structure your super — and when you move it to pension phase — can make a real difference to your Age Pension entitlement.
🔍 Real Example
Margaret, aged 67, retired with $480K in super and no other significant assets. She moved her super to an account-based pension, generating regular income. With HelloLedger’s help understanding the tax and record-keeping side, she worked with her licensed financial adviser to balance withdrawals and keep her payments under the means test thresholds. The result? She now receives a partial Age Pension plus flexibility from her super — giving her more certainty and cash flow.
✅ Smart Steps to Consider
1️⃣ Know your Age Pension age and eligibility
2️⃣ Get a clear view of your total assets — super included
3️⃣ Understand when your super will count for means testing
4️⃣ Talk to a licensed financial adviser to make sure your super strategy works for your retirement goals
📊 Bonus Tip: Small tweaks can make a big difference. Many retirees miss out on thousands by assuming they won’t qualify — or by not understanding how Centrelink calculates income from super.
At HelloLedger, we help you keep your tax and compliance in order — so you can work confidently with your licensed adviser to plan your retirement, your entitlements, and what happens next.
📅 Next Edition: We’ll answer ‘What Happens to Your Super When You Die?’ — the must-know tax and estate planning basics to protect your legacy and support your loved ones.
Disclaimer:
This article provides general information only and does not constitute financial advice. HelloLedger is a registered tax agent but not a financial adviser. For personalised financial advice about superannuation strategies, please consult a licensed financial adviser.
📅 1st July — Super Guarantee rate increases to 12%:
The Super Guarantee rate rises from 11.5% to 12% for the 2025–26 financial year. Check your payroll software and systems to ensure super contributions are calculated at the new rate.
📅 14th July — 2025 FY STP Finalisation:
Finalise your Single Touch Payroll (STP) for the 2025 financial year so your employees can lodge their tax returns with the correct info.
📅 21st July — June Monthly BAS/IAS:
Your Business Activity Statement (BAS) or Instalment Activity Statement (IAS) for June is due. Lodge and pay on time to avoid penalties.
📅 28th July — 2025 Payroll Tax Annual Reconciliation:
If you’re registered for payroll tax, your annual reconciliation needs to be lodged by this date.
📅 28th July — June Quarter BAS (paper lodger):
If you lodge your BAS quarterly and still use paper forms, your June quarter BAS is due today.
📅 28th July — June Quarter Employee Super Contributions Due:
Make sure your employees’ June quarter super contributions are received by their funds by this date to meet Super Guarantee obligations.
For more details on the key dates go to:
HelloLedger's July 2025 Key tax dates for Australian Small Business
Wrap-Up: Let’s Stay Connected
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