FAQs | Nextgen Accountants

Got Questions? We've Got Answers

From changing accountants to claiming deductions - here’s everything you’ve wanted to ask, in one easy place.

Thinking About Changing Accountants? We’ve got you covered

We know switching accountants can feel awkward, or even a little overwhelming. But if your needs have outgrown your current accounting firm, or you’re just looking for a more personal connection, we’re here to make that transition as smooth and professional as possible.

Whether you're switching from a larger firm or just not feeling supported anymore, we’ll guide you through it, step by step.

No awkward meetings. No stress. Just a smooth handover and a fresh start with a team who truly has your back.

Here’s how it works:

Our client services superstar will contact your previous accountant with a formal request for your records-this is standard and ensures a clean, ethical transfer of your financial information.
We’ll update your ATO and ASIC records so you’re officially under our care moving forward.
Once everything’s in, we’ll review your accounts, tidy things up if needed, and get you set up for a better experience with support that actually feels personal.

Importantly, we handle the entire transition so you can kick back, relax and enjoy the important things in life – no stress, no hassle!

Am I required to lodge a tax return?

Whether you need to lodge a tax return in Australia depends on your income, residency status, and whether tax was withheld during the financial year.

Your income exceeded earned more than the tax-free threshold ($18,200 for most people).

You had any tax withheld, even if your income was below the threshold.

You received income from business, investments, or rental properties.

You’re a resident for tax purposes and earned foreign income.

You want to claim deductions or tax offsets.
Your income was under the threshold and no tax was withheld.

You received only government pensions or allowances that are tax-exempt.

You’re under 18 and earned only small amounts of passive income (like interest).

If you’re unsure, the ATO offers a “Do I need to lodge a tax return?” tool that walks you through a few questions and gives a tailored answer.

Even if you don’t need to lodge, you may still need to submit a non-lodgment advice to avoid follow-up letters from the ATO.

What deductions are available to me or my business?

To claim a tax deduction, the expense must generally meet two key conditions:

This means the expense has a clear connection to the work you do or the income your business generates. It can’t be private or personal in nature.
The cost must have been paid (or be owing), and you need to be able to prove it with a receipt, invoice, or other suitable record.
Private or personal expenses (e.g. groceries, family holidays)

Fines or penalties

Entertainment (unless fringe benefits apply)

GST on purchases if you’re registered and claiming GST credits

Think of it this way: if the expense helps you do your job or run your business-and you’ve genuinely paid for it-it’s probably worth exploring as a deduction.

Am I better off spending so I can claim at tax time?

Tax Tip Truth Bomb

Don’t Spend $1 Just to Save 30c

We get it-claiming deductions is tempting. But spending money just for a tax benefit usually leaves your pocket lighter. If it’s not something you genuinely need, you’re not actually saving-you’re spending.

If it wouldn’t be worth buying without a deduction… it’s probably not worth it.

When it comes to tax time, we often hear the phrase: "Can I claim this as a deduction?" And while it’s great to maximise your entitlements, it’s important to remember-a tax deduction doesn’t mean the ATO pays you back in full.

For every $1 you spend on a deductible expense, you only reduce your tax bill by your marginal tax rate (say 16%, 30%, or 45%). So if you’re on a 30% tax rate and spend $1, you’re effectively getting 30 cents back-but the other 70 cents still comes out of your pocket.

That’s why it’s crucial to ask: "Would I be spending this money anyway if there were no tax benefit?" If the answer is no, then it might not be the smart move.

At Nextgen Accountants, we encourage clients to think strategically-not just reactively. Yes, we’ll help you claim everything you’re entitled to, but we’ll also guide you to make decisions that make sense both tax-wise and business-wise.

Our rates depend on the level of support required, and we’d be happy to discuss a tailored solution that fits your needs. We can provide you with a transparent outline of our pricing structure and the services included to ensure you get the right support without surprises.

We offer fixed-fee packages so you always know what to expect-no surprise bills, just honest pricing and real support. Want help choosing the right package or comparing options? We’d be happy to walk you through it.
Hourly Rates

For once-off projects or complex matters (like ATO audits, historical clean-ups, or unusual advisory work), we may charge an hourly rate. We’ll always give you an estimate first and keep you in the loop if things change.

Fixed-Fee Package

For ongoing services like bookkeeping, BAS lodgements, Xero training, or business advisory, we prefer fixed fees. This gives you:

- Predictable costs with no surprises

- Clear scope of work

- Our clients love this model because it removes uncertainty and helps with budgeting.

Ultimately, we’re flexible and transparent-we work with you to choose the approach that offers the best value and peace of mind.
It’s exciting to hear about your plans to establish your own business, and we'd be delighted to assist you on this journey.

Starting a business involves more than just numbers-it’s about setting up systems that allow you to focus on your passion while ensuring everything behind the scenes runs smoothly. As accountants specialising in startups and small businesses, we help entrepreneurs like you navigate the financial and operational aspects of business with confidence.

Beyond just managing numbers, our approach focuses on efficiency, accuracy, and setting you up for long-term success. As Xero-certified specialists, we ensure that your financial systems are structured correctly from day one, making bookkeeping and compliance as seamless as possible. Our goal is to help you build a business that is financially sound, so you can dedicate your energy to creativity and client relationships without unnecessary administrative burden.

Beyond the technical side, we bring guidance, insights, and strategic support to help you make informed decisions at every stage. Whether it’s understanding cash flow, navigating tax obligations, or planning for future growth, we work with our clients not just as an accountant, but as a trusted advisor.
We’ve always believed in doing things properly-not quickly.

Over the years, we’ve built real relationships with our clients and offered hands-on service where you deal directly with the team member who’s working on your file-not a rotating cast or someone overseas.

To keep delivering that same level of personal, high-quality care, we’ve updated our pricing to reflect the time, expertise, and ongoing professional training our team invests into every client relationship.

We're a family-run firm, and that means we value people over processes. We don’t take shortcuts, and we never treat you like a number. If you're looking for a team that knows your name, cares about your goals, and is proactive-not just reactive-you’re in the right place.

If you're shopping around for the cheapest quote or want a different accountant every year, we're probably not the right fit (and that's okay!). But if you value consistency, trust, and real connection-welcome to the team.
Payment Terms: Respecting the Work, Respecting Each Other

We’re proud to offer real, honest support-not just assembly line services. As a small, family-run business, we pour time, care, and expertise into every file. All we ask in return? That our work is respected in the same way.

Payment is due in full upon completion of your service, and we won’t proceed with lodgement until that’s been settled. For certain matters, we may also request payment upfront. We know most people understand this-but just in case-it’s worth saying out loud:

If you don’t have the funds ready, please don’t ask us to start work.
We’re here to help, not to finance, we are not a bank. We’re a service provider, just like your doctor, your hairdresser, or your favourite coffee shop. You wouldn’t leave the hairdresser or barber without paying for your service - this works the same way.

We care deeply about the people we work with, and we’re proud to offer the kind of personalised service that’s becoming rare these days. We simply ask for the same level of professionalism and respect in return.

So here’s the deal:
Please have the funds ready before engaging us.
Once the job’s done, payment is due in full-and before lodgement.

We’re always happy to have upfront conversations and be transparent about fees, but we kindly ask for the same honesty in return. It keeps things fair, respectful, and sustainable-for you, for us, and for the many clients who do the right thing.

Business Owner in harmony with good accounting

A Nextgen Accountants, we’re proud to offer practical, honest advice to help our clients thrive-but we also play by the rules.

We’re not licensed financial advisers, which means we don’t (and legally can’t) give advice about specific financial products, superannuation funds, investments, insurance, or retirement planning strategies. This requires an Australian Financial Services (AFS) licence.

Here’s what we can help you with:
✔ Tax advice and compliance
✔ Business structures and setup
✔ Budgeting and cash flow support
✔ BAS, financials, and ATO dealings
✔ General guidance to help your business grow smart

So, while we won’t recommend which super fund you should join or where to invest your money, we’ll happily work alongside your licensed adviser to make sure your tax and business strategies align with the bigger picture.

If you're ever unsure what we can discuss, just ask-we’re all about open, upfront conversations.
Here’s the truth bomb: if you’re paying tax, it means you’re making money. That’s a good thing! No one is taxing you for sitting on the couch watching Netflix (yet).

Lodging a tax return is how the Australian Taxation Office (ATO) checks if you've paid the right amount of tax on your income for the year. It ensures you’ve met your obligations and helps determine whether you’re owed a refund-or if you need to pay more.

When do you need to lodge one?

You must lodge a tax return if:

You earned more than the tax-free threshold ($18,200).

You had tax withheld from any income (like wages or Centrelink payments).

You ran a business or earned income as a contractor.

You earned investment income (like interest, dividends, or capital gains).

You received income from overseas.

You’re entitled to claim deductions or tax offsets.

Even if you earned under the threshold, you may still need to lodge a return to claim a refund or report income. If you're unsure, we can help you work it out.
Paying tax is a thing. But it doesn’t have to be scary-and it definitely doesn’t have to be a surprise.

Sometimes you might receive a tax bill even if you’re used to getting a refund. This can happen for several reasons:
You earned extra income during the year (from a second job, change of job, contract work, or investments).
Your total income was higher than usual, which may have pushed you into a higher tax bracket.
Your employer didn’t withhold enough tax throughout the year.
You made a capital gain from selling property, shares, or other assets.
You didn’t pay enough to cover the Medicare Levy or became liable for the Medicare Levy Surcharge due to higher income without private hospital cover.
We all wish that our tax bill would magically vanish.

If you owe money to the ATO, it’s important to pay it on time. This helps you stay compliant and avoid extra costs. Unpaid tax debts can attract interest charges and penalties. The ATO may take further action such as using debt collectors, and reporting the debt to credit agencies, garnishing your wages or commence court proceedings.

And look, we’re not saying you have to love it (we don’t write Valentine’s cards to the ATO either), but we can help you understand it, plan for it, and make sure you're not paying more than you should.
The ATO recognises that circumstances can change. If you're having trouble paying your tax debt, it's always better to reach out early. They may offer a payment plan to help you manage it over time. Ignoring the debt can lead to more serious consequences.
So speak to your Accountant (like us!) to help communicate with the ATO and find the best solution.

We can help you:
Set up a payment plan
Request a deferral or remission of penalties
Help Us Help You: How to Speed Things Up (and Save You Money)

At Nextgen Accountants, we’re all about efficiency, accuracy, and respecting your time-and ours. Here’s how you can help us keep your job moving, avoid delays, and keep your invoice from creeping up:

Be Specific
Tell us exactly what something is for. “Business vehicle insurance for the Hilux Registration number ABC-123” Clear info means fewer questions and quicker results.

Double-Check Your Docs
It only takes a moment and makes a world of difference. Make sure you’re sending the exact document we have asked for:
For example:
– The correct bank statement(s) that we have asked for, check the account numbers
match
– The actual insurance policy document, not a Certificate of Currency - they are two
different things
– If we ask for various documents, send them all, don’t miss any

Be Responsive
If we reach out with a question, replying quickly helps us keep momentum. Delays in communication = delays in lodgement. The more times we have to chase you, more cost accumulates - time is money!

Use Our Checklists
We don’t send them for fun-they’re a tried-and-true way to get your file prepped right the first time. Trust us, it works.

Name Your Files (and Organise Them)
“Tax_Doc_Jun2025.pdf” beats “IMG_7835.jpg” every time. A little effort = a lot more clarity saving us time having to rename files.

Please, Don’t Use Email Like a Chat Box
We love hearing from you-but scattered, bit-by-bit emails slow things down. Instead, aim to send complete, well-thought-out responses with all the info we need in one go. Before you click send, check you have supplied everything.

If It’s Important, Pick Up the Phone
Email can be great-but sometimes it creates more confusion than clarity. For anything a bit tricky or time-sensitive, we encourage you to call us. A five-minute chat often saves five days of email ping-pong. If it’s lengthy or complicated, make an appointment
For the 2024/25 financial year, here’s what you need to know about superannuation contribution limits in Australia:

Concessional Contributions (Before-Tax)
Cap: $30,000 per person
Includes: Employer contributions (e.g. Super Guarantee), salary sacrifice, and personal deductible contributions
Taxed at: 15% inside your super fund
Bonus: If your total super balance was under $500,000 on 30 June 2024, you may be eligible to carry forward unused cap amounts from the past five years

Non-Concessional Contributions (After-Tax)
Cap: $120,000 per person
Includes: Contributions from your take-home pay, savings, or gifts
Taxed at: 0% going in (since you’ve already paid income tax)
Bring-Forward Rule: If you're under 75 and meet the criteria, you may be able to contribute up to $360,000 over 3 years in one go

Keep in mind:
All contributions across all your super funds count toward these caps
Exceeding the caps can result in extra tax and penalties
Your total super balance affects your eligibility for some strategies

Would you like help calculating how much room you have left this year or exploring a contribution strategy tailored to your goals?
Pay As You Go (PAYG) instalments are prepayments towards your expected tax bill on business or investment income. Instead of paying a large lump sum at tax time, you pay smaller amounts throughout the year.

The ATO may include you in the PAYG Instalments system because your last tax return showed income (such as business, investment, or other non-salary income) above a certain threshold.

The system is designed to help you pre-pay your tax in smaller instalments throughout the year-rather than facing a large bill at tax time.

Importantly, it’s not an extra tax, just a way of spreading the payments across the year based on your expected income. If your actual income turns out to be lower, any overpaid tax will be refunded when your return is lodged. If you believe the instalments are too high, we can review and possibly vary them. Please note, this is something that the ATO put in place at their discretion and cannot be cancelled only varied if applicable.
If you're just starting out and want to keep things simple, a sole trader structure might be perfect. But if you're growing, hiring staff, or want to protect personal assets, a company or trust could be a smarter long-term move.

At Nextgen Accountants, we help clients choose the right structure based on their goals, risk tolerance, and tax position. We also make sure it’s set up properly from day one-no guesswork, no regrets.

Sole Trader

Best for: Individuals starting out or running a simple business
Easiest and cheapest to set up
You control everything-but you’re also personally liable for debts
Profits are taxed at your individual tax rate
Great for freelancers, tradies, and side hustlers

Partnership

Best for: Two or more people running a business together
Shared control and profits
Still personally liable (jointly and severally)
Requires a solid partnership agreement
Good for family businesses or co-owned ventures

Company

Best for: Growing businesses wanting asset protection and scalability
Separate legal entity-limited liability
More admin and compliance, but more credibility
Profits taxed at the company rate (currently 25% for base rate entities)
Ideal for businesses with employees, investors, or plans to scale

Trust

Best for: Asset protection, tax flexibility, and family wealth planning
A trustee manages the business for beneficiaries
More complex and costly to set up
Can distribute income in a tax-effective way
Often used for family businesses or investment structures