Content
- Government Review of Supermarket Unit Pricing
- Accessing Superannuation Funds for Medical Treatment or Financial Hardship
- Super Tax Shake-Up: Big Balances Beware
- When Medical Bills Meet Tax Rules – Lessons from a Heartbreaking Case
- Proposed Extension of the Instant Asset Write-Off and Other Tax Measures
- Cyber in Accounting: Safeguarding Financial Data in a Digital Age
This month brings a mix of tax reform, real-world lessons, and practical planning insights. We explore the Federal Government’s review of supermarket unit pricing — a move that could reshape the way suppliers and retailers approach packaging, pricing, and compliance. We also cover the ATO’s latest warnings on accessing your super early, a reminder that shortcuts today can create long-term financial pain tomorrow. Unpack the Government’s latest announcements on the proposed overhaul of the super tax rules that will reshape strategies for those with balances above $3 million. A recent tribunal decision also serves as a reminder that it is difficult to access tax relief for medical expenses, even when tied to income from a disability pension. For small businesses, proposed legislation extends the $20,000 instant asset write-off and introduces new transparency measures for companies and charities. And finally, we look at the rising threat of cybercrime — and what every business can do to strengthen its defences.
Government Review of Supermarket Unit Pricing: What It Could Mean for Your Business
The Federal Government recently wrapped up a consultation process on supermarket unit pricing. While the topic might sound like a purely consumer issue, it could have very real commercial impacts for businesses supplying into the grocery sector.
On 1 September 2025, Treasury opened consultation on strengthening the Retail Grocery Industry (Unit Pricing) Code of Conduct. Submissions closed just a few weeks later on 19 September 2025, marking the end of a very short opportunity for stakeholders to have their say.
A Quick Recap
Unit pricing allows shoppers to compare costs per standard measure (e.g. $/100g or $/litre) across different pack sizes and brands. Since 2009, large supermarkets have been required to display this information to help customers spot value. While compliance has been relatively low-cost and penalties limited, the Government’s review signals that much tighter rules could be on the way.
Why Now?
The ACCC’s recent supermarket inquiry highlighted that while unit pricing helps, there are still gaps. The big concern is shrinkflation — when pack sizes quietly reduce while prices remain the same or higher. With cost-of-living pressures dominating headlines, the Government is looking at clearer, fairer pricing to rebuild consumer trust.
What Might Change?
- Shrinkflation alerts – supermarkets may need to flag when a product becomes smaller without a matching price cut.
- Clearer displays – larger, more prominent unit prices both in-store and online.
- Wider coverage – expanding the rules beyond major supermarkets to smaller retailers and online sellers.
- Standardised measures – eliminating confusing “per roll” vs “per sheet” comparisons.
- Civil penalties – introducing fines for non-compliance.
The Commercial Impact
For suppliers, packaging decisions could come under closer scrutiny. For retailers, costs might arise from updating shelf labels, software, or e-commerce systems. But there are also opportunities: businesses that embrace transparency could build loyalty and stand out in a competitive market.
What You Should Do
Now that the consultation period has closed, Treasury will consider submissions and the Government is expected to announce its response later this year.
Businesses in food, grocery, and household goods should stay alert — the final shape of the rules could affect pricing, packaging, and compliance obligations across the sector.
At Mitchell Partners, we can help you model potential compliance costs, assess financial impacts, and prepare for upcoming regulatory change. Reach out to discuss how this review might affect your business.
Accessing Superannuation Funds for Medical Treatment or Financial Hardship
Superannuation is one of the largest assets for many Australians and offers significant tax advantages; however, strict rules apply to when it can be accessed. While super is most commonly accessed at retirement, death, or disability, there are limited situations where earlier access may be possible.
When Early Access May Apply
Early access is generally available in two situations:
- Financial hardship – where you are receiving a qualifying Centrelink/DVA payment for a minimum period and cannot meet immediate living expenses.
- Compassionate grounds – funding for specific scenarios such as preventing a mortgage foreclosure or meeting medical expenses for a life-threatening injury or illness, or to alleviate severe chronic pain.
Access on compassionate grounds requires an application to the ATO accompanied by relevant medical certificates or mortgage documentation. If approved, the ATO instructs the individual’s superannuation fund to release the amount to cover the expense. We’ve included ATO links below with more detailed information on compassionate grounds and financial hardship.
Be Cautious of Misuse
When accessing superannuation under compassionate grounds, you would usually collect the relevant supporting documentation and personally make the application for approval using your MyGov account. The ATO has raised concerns about medical and dental providers exploiting this access and assisting fund members to withdraw super for cosmetic reasons.
The ATO’s concerns are discussed in Separating fact from fiction on accessing your super early.
Penalties for Non-Compliance
Superannuation fund members and SMSF trustees should be aware that substantial penalties can apply when super is accessed outside of the legislated conditions of release. You should never provide another party with access to your MyGov login or allow a third party to make applications on your behalf. Penalties may also apply for making false declarations.
If you have any questions or concerns about accessing your superannuation, please reach out to us for guidance.
Related Links
- Accessing superannuation under compassionate grounds
- Accessing superannuation due to financial hardship
Super Tax Shake-Up: Big Balances Beware
As flagged in our bulletin in October the Government has reworked the proposed Division 296 tax, part of the Better Targeting Superannuation Concessions (BTSC) policy. The revised version simplifies the system, removing the controversial inclusion of unrealised gains and introducing a fairer tiered approach.
What’s Changing — and Why It’s Simpler
The original 2023 proposal taxed unrealised gains — paper profits on unsold assets. The reworked model now taxes only realised earnings, aligning it with normal tax principles and avoiding liquidity problems for those with illiquid assets.
A Fairer, Tiered Approach
- Tier 1 ($3m–$10m): Extra 15% tax on earnings from this portion (total 30%).
- Tier 2 (over $10m): Extra 25% tax on earnings above $10m (total 40%).
Both thresholds will be indexed annually to inflation. The start date has been pushed back to 1 July 2026, with first assessments expected in 2027–28.
Why It’s Still Good News (for Most)
Removing unrealised gains eliminates valuation headaches and liquidity pressures for SMSFs, particularly those holding property or unlisted assets. However, super members above $10m will face higher overall rates and should review their strategies.
Low Income Superannuation Tax Offset
The Government will increase the Low Income Superannuation Tax Offset (LISTO) from $37,000 to $45,000 from 1 July 2027, with the maximum payment rising to $810. Treasury estimates an average increase of $410 for affected workers.
What to Do Now
- Check your total super balance (TSB) now and project where it may be by 2026.
- Seek advice early — managing liquidity and timing asset sales could make a real difference.
- Stay informed — draft legislation is expected in 2026.
When Medical Bills Meet Tax Rules – Lessons from a Heartbreaking Case
A recent tribunal case (Wannberg v Commissioner of Taxation [2025]) highlights how strict tax rules can clash with human realities. Despite severe medical hardship, the taxpayer was denied nearly $100,000 in deductions for treatment costs, showing how the law separates personal wellbeing from income generation.
Why the Deductions Failed
The tribunal found that Mr Wannberg’s medical expenses didn’t directly help him “gain or produce assessable income.” The costs were private in nature, not income-related. Section 8-1 of the Income Tax Assessment Act 1997 requires a clear connection between an expense and income generation — a link the tribunal found missing.
What This Means for You
- Understand the “nexus” test: An expense must directly help earn income.
- Recognise the private line: Even if related to your ability to work, most medical costs are private.
- Treatment vs assessment: Costs for required medical certificates can be deductible; treatment itself usually isn’t.
- Plan for non-deductible costs: Consider insurance or offsets to manage personal medical expenses.
- Seek advice early: Get an ATO ruling or professional advice before claiming large expenses.
Proposed Extension of the Instant Asset Write-Off and Other Tax Measures
A new Bill — the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 — proposes several key changes affecting small businesses, listed companies, and the not-for-profit sector.
Small Business Boost: $20,000 Instant Asset Write-Off Extended
If passed, small businesses with turnover under $10 million can immediately deduct eligible assets costing less than $20,000 until 30 June 2026. Multiple assets qualify individually if each item is under the threshold and ready for use before the deadline.
Strengthened Corporate Disclosure
The Bill would tighten disclosure rules for listed companies, requiring declaration of derivative interests under the substantial holding regime. This promotes transparency and prevents hidden control interests.
Greater Transparency for Charities
The ACNC Commissioner would gain powers to publicly disclose investigation details meeting a “public harm” test, strengthening public trust in the charity sector.
Financial Regulator Reviews Simplified
The Bill would reduce review frequency for ASIC and APRA from every two years to five, streamlining oversight.
What You Should Do Now
Although still before Parliament, it’s wise to plan now. Small businesses should budget 2025–26 capital needs early. Charities and listed entities should review governance and reporting frameworks to prepare for greater transparency.
Cyber in Accounting: Safeguarding Financial Data in a Digital Age
Cybersecurity is no longer optional — it’s essential. The financial services sector remains one of Australia’s top targets for cyberattacks, with the average cost of incidents rising up to 55% for small and medium businesses in FY2024–25.
People: The Biggest Cyber Risk
Over 85% of cybersecurity incidents result from human error. Training staff to identify phishing, avoid malicious links, and maintain strong password practices is the first line of defence.
Technology and Updates
Legacy hardware and software increase vulnerability. Applying critical patches within 48 hours and keeping systems updated aligns with the Australian Signals Directorate’s Essential 8 Framework. With Windows 10 now end-of-life, businesses must upgrade to maintain security.
Visibility and Monitoring
“You can’t defend what you can’t see.” Event logging and monitoring are vital. The average breach in financial services takes 288 days to detect — timely alerts can prevent catastrophic losses.
The Importance of a Cyber Incident Response Plan
A Cyber Incident Response Plan (CIRP) outlines clear steps to mitigate and respond to attacks. Tested regularly, it ensures swift, coordinated responses that limit damage and maintain trust.
Protecting Your Business, Clients, and Reputation
In today’s digital world, cybersecurity isn’t just IT — it’s strategy. Businesses must prioritise data protection, staff awareness, and response planning to preserve reputation, client trust, and long-term resilience.
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