Super: the rules you need to play & win

If we look at life as a big “game”, there are a set of rules we live by. On the top tier, these might be legalities and laws, but there are also social rules and unspoken rules we live by every day. There are rules for your workplace, your family life, your finances — everything has rules. Including your super. 


Knowing the rules of superannuation can be the difference between budget senior living and the luxurious lifestyle you’ve long dreamed of. So, how can you know the rules for super inside-out, and use them to your advantage to “win” at retirement time? 


Know what you’re playing for. 


First, let’s think of super as a “game”. To end up on top, you need to know how to play — and what you’re playing for. The “prize”, as it were, is tax-free income to help you thrive in your golden years. When you eventually transition to a pension, the income you draw from super is tax-free (generally after the age of 60). This is the case even if you're earning income from other assets, such as shares or property. 


New to the game? Here are the basic rules. 


As an employee, your employer puts 10.5% of your annual salary to super. This is standard and done for you — it’s not something you opt-in for. However, you do have choices when it comes to how it's invested. If you’ve never made a decision as to where your super goes, you’ll be sitting in a default “balanced” fund. For some people, this is a great arrangement. Others might be thinking, “perhaps I can afford to take more of a risk here in hopes for more reward” — the old “go big or go home” adage. 


If you’re not sure, completing a Risk Profile will help you make a wise and calculated choice — changing up your super is never something to do on a whim. However, as a good rule of thumb, you can take more risks the further you are from retirement. If something goes wrong, you’ve got plenty of time to make amends. On the upper hand, if it goes right, you can exponentially increase that retirement fund! 


Rules for advanced players. 


Maybe not advanced, but certainly familiar. If you’ve been working for some time, you might have heard rumblings about “salary sacrificing”. Perhaps you have friends or family that boast about how great it’s been for them, or maybe you’ve heard your colleagues chatting about it. 


Say you earn $100,000 a year. On the last $10,000 of salary you earn, you’ll pay $3,450 in tax and keep $6,550. However, if you salary sacrifice that money to super, it’ll only be taxed $1,500 and $8,500 will go to your super. Instead of giving almost $2,000 to the government, it’s now working for your retirement! 


Another one to watch is "personal deductible contributions". Personal deductible contributions work similarly, but instead of going through your employer, you contribute the money directly to super and get a tax deduction for it. 


These rules are increasingly important for those over 50, or approaching retirement. Both rules center on the government giving tax incentives for people to contribute extra to super for their retirement. 


Teamwork makes the dream work. 


Sometimes, a team-based strategy is very advantageous — after all, two heads are better than one. You and your significant other can couple-up to do a little (legal) accounting magic and make one plus one equal three. For instance, if you and your partner are in different income tax brackets, salary sacrifice could yield more for you together, as opposed to two individuals salary scarifying independently. 


There’s also “spouse contribution splitting”, which allows one spouse to move the previous year’s contributions from their account to their spouse’s account. This helps maximise the $1.7 million limit for each of you and prevents one partner retiring with $2.4 million in super, while the other is sitting on $1 million. If this happens, combined, $700,000 of your joint super would still be taxed. If there is an age difference between you, spouse splitting can also help you maximise the government age pension. 


A play-by-play of the rules with Ascent. 


If you’ve never thought to learn the rules of super, we don’t blame you. The Australian super system is very efficient and designed to automate a lot of different areas, so for many people, there’s no reason to explore it. However, if you’d like to have more control of your super, there are heaps of benefits you can unlock that maximise your retirement fund. 


However, that manual control comes with significant knowledge and management time, and that’s where we come in. Whatever stage of your working life you’re in, we can help you understand the rules of the game, and work with you on the perfect game plan. Let’s start maximising your super. 

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The 5% homebuyer deposit for first home buyers.

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The Australian Government’s expanded 5% Deposit Scheme, which commenced on October 1, offers a fast-tracked path to home ownership for many aspiring buyers. By drastically reducing the deposit required and eliminating Lenders Mortgage Insurance (LMI), this program aims to unlock the door to your very own home sooner than ever thought possible. However, like any major economic policy, it has significant implications that buyers and taxpayers must consider. Here is a breakdown of how the scheme works, who qualifies, and what the potential impact could be on the property market. What is the 5% Deposit Scheme and how does it work? The scheme is designed to make home ownership more achievable, particularly for those struggling to save a 20% deposit. Low Deposit: The home buyer secures a loan with a minimum deposit of 5% (for First Home Buyers) or 2% (for single parents/legal guardians). Government Guarantee: Instead of the buyer paying LMI (which protects the lender), the Australian Government provides a guarantee to a Participating Lender. This guarantee allows the lender to provide a home loan covering up to 95% or 98% of the home's value without the usual LMI fee. No LMI: The buyer avoids paying Lenders Mortgage Insurance, significantly reducing upfront costs.  Key features of the expanded program include no income caps, as well as unlimited spots and no waiting list. The Scheme also makes a wider choice of home types available (houses, apartments, house/land packages, vacant land with a building contract, new or existing homes). It’s not just for first home buyers!

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Christmas can be the most wonderful time of the year—it can also be one of the most expensive. The key to enjoying the festive season and reducing the risk of financial stress is careful planning. As your financial partners at Ascent Accountants, we want you to focus on what truly matters—time with friends, family, and peace of mind. Six essential budgeting tips to help you take control of your Christmas spending. 1. Make a detailed budget list. The sooner you start, the more control you have. Begin by listing every expense you anticipate, including gifts, food, clothes, travel, and entertainment. Once you have your total, check it against your available funds. If the total feels too high, look at where you can cut back or spread the cost. Being realistic from the beginning prevents surprises later. 2. Prioritise what truly matters (and pay your priority debts!). When money is tight, focus your funds on the essentials and the things that genuinely bring the most joy. Order your list by priority (e.g., gifts for children first, then shared family meals, then travel). It’s okay—and essential—to say 'no' to extras that don’t fit your budget. Always consider your priority payments and debts before any other Christmas spending. Priority debts, like rent, electricity, or car insurance, must always come first as they significantly impact your day-to-day life if left unpaid. 3. Be cautious with credit and 'Buy Now, Pay Later' arrangements. It's tempting to use a credit card or a Buy Now, Pay Later option, especially when promotions promise delayed payments. However, small instalments add up quickly, and missing a payment can result in fees and/or negatively impact your credit record. If you do use credit, only borrow what you can comfortably afford to repay, and make a solid plan to pay it off as soon as possible in the new year. 4. Compare prices & shop smart. Always take time to research before you buy. Comparing online and in-store prices can result in significant savings. Be wary of high-pressure sales events like Black Friday, which often encourage impulse spending. Before purchasing, ask yourself three questions: Do I really need this? Is this on my original budget list, or is it extra? Is this truly a bargain if I don't actually need it? 5. Suggest a 'Secret Santa'. If your family or friend group has traditionally bought gifts for everyone, suggest switching to a Secret Santa arrangement. Setting a sensible spending limit or pooling funds for one thoughtful gift makes things easier and less expensive for everyone. Often, homemade gifts or vouchers for experiences are more meaningful and last longer in the memory than expensive presents. 6. Plan ahead for next year. The best way to guarantee a calm, affordable Christmas next year is to start preparing now. After this year's holidays, take note of exactly what you spent and where the money went. Set a goal for next year and start a small savings fund. Even setting aside $5 or $10 a week can make a monumental difference in managing next Christmas without stress. Need to tidy up your finances after the holidays? If the Christmas period leaves you needing advice on debt consolidation, setting up a savings plan, or just better budgeting habits for the new year, contact the team at Ascent Accountants. We can help you build the confidence to hit your financial goals!

FBT on Work Christmas Parties & Gifts

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As the end of the year approaches, businesses are gearing up for the festive season, which means planning the annual Christmas party and showing appreciation with gifts. While the cheer is high, so too are the complexities of Fringe Benefits Tax (FBT). Getting the FBT treatment wrong can turn a simple celebration into an unexpected tax bill. As your trusted advisors at Ascent Accountants, here is a breakdown of the key tax rules, with a focus on the crucial $300 per person limit, to ensure your end-of-year generosity is tax-effective. The critical $300 minor benefit threshold. The Minor Benefits Exemption is your best friend for managing FBT. A benefit is generally exempt from FBT if its total notional taxable value is less than $300 (GST inclusive) per person, and it is provided infrequently and irregularly. Christmas parties (entertainment) The location and cost of your party are the key factors for FBT.

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Does your business need public liability insurance?

November 12, 2025
If your business interacts with the public in any way (from welcoming customers into your shop to visiting client sites) then public liability insurance isn’t just “nice to have.” It’s essential protection. Whether you’re a sole trader, a café owner, or running a construction company, public liability insurance helps safeguard your business against unexpected (and often costly) accidents. What Is public liability insurance? Public liability insurance covers your business if a member of the public suffers injury, death, or property damage as a result of your business activities. In simple terms, it’s there to protect you financially if something goes wrong—such as a customer slipping in your store, a tradie damaging a client’s property, or a product you sell causing harm. Without it, you could be personally liable for significant compensation and legal costs. What does it cover? A typical policy covers: Injury or death to a third party caused by your business operations. Damage to property belonging to someone else. Compensation and legal costs you’re ordered to pay following a covered claim. For example, if a customer trips over a cable in your office or a carpenter cracks a client’s TV while working onsite, public liability insurance steps in to cover the costs. What isn’t covered?  While every policy is different, public liability insurance usually won’t cover: Damage involving vehicles. Defective work. Breach of professional duty or negligence in advice (that’s covered by professional indemnity insurance). Defamation or advertising liability. Understanding these exclusions helps you choose the right combination of cover for your business. Who needs public liability insurance? If your business has any level of public interaction, you likely need it. Common examples include: Customer or supplier visits: If anyone comes to your premises or you work on theirs. Public events: Markets, expos, and pop-ups. Retail, trade, and construction: High public contact increases your risk. Leased premises: Many shopping centres and landlords require proof of cover. Contractor or license requirements: Many trade licenses (like electricians and plumbers) require it to operate. Even if it’s not legally required, most Australian businesses choose to have public liability insurance for peace of mind. How much cover do you need? The level of cover depends on your industry, business size, and risk exposure. Most businesses opt for between $5 million and $20 million. It’s worth reviewing your policy regularly, especially if your operations expand or you start working in new environments. Is it compulsory in Australia? Public liability insurance isn’t legally mandatory for all businesses, but some industries and licences make it a condition of operation. For example, in Queensland, electrical contractors must hold a minimum of $5 million in public and product liability cover. Similarly, councils or venue owners may require proof of insurance before approving an event or leasing a space. Don’t risk a law suit. Being sued for negligence can be financially devastating. Even a minor incident can mean you lose hundreds of thousands—not to mention the impact on your brand and business reputation. Public liability insurance ensures your business can keep operating, even when the unexpected happens. If you’re unsure whether your current cover is adequate, our team at Ascent Accountants can help you review your business risks and recommend the right level of protection for your situation. Contact us today to learn more.
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