August E News 2025
- WD Nicholls Chartered Accountants
- 14 minutes ago
- 12 min read
Markets stayed strong in August, with global and Australian equities higher, though stretched valuations — especially at CBA — remind us that selectivity matters. In this issue we also cover small business essentials on cybersecurity, the ATO’s “Getting it right” campaign, an upcoming Net Zero webinar, and local Northern Rivers events.
Global markets continued their strong performance in August, with equities rising across most regions, including another winning month for the Australian market. Despite the positive gains, a sense of caution prevailed due to high valuations, particularly in the U.S. and among key Australian companies like the Commonwealth Bank of Australia (CBA). While CBA announced a record profit, its share price declined as strong results failed to meet elevated investor expectations, highlighting the risk of paying a premium for perfection. With central banks remaining vigilant on inflation and growth, August's performance underscores a key theme: while markets are supported by solid earnings, a selective approach is essential to navigate potential volatility and focus on businesses with strong fundamentals rather than those driven purely by sentiment.
Navigating the world of cybersecurity can be daunting for any small business, but with the right foundational knowledge, you can build a strong defence against common threats. This guide, based on recommendations from the Australian Signals Directorate (ASD), provides a starting point with essential, easy-to-implement measures like multi-factor authentication, regular software updates, and data backups. It also outlines key cyber threats, from scam and phishing messages to malicious software and ransomware, and offers simple, practical steps—like verifying suspicious requests with a phone call—to help protect your business and its sensitive information. By understanding these risks and adopting these straightforward security practices, you can significantly reduce your vulnerability and safeguard your business's future.
Navigating tax obligations can be challenging, but the Australian Taxation Office (ATO) is aiming to simplify the process for small businesses through its 'Getting it right' campaign. This quarter, the ATO's focus is on the property and construction industry, a significant sector in the small business market known for recurring tax issues. They highlight common mistakes such as omitting income (including cash payments and contractor income), overclaiming expenses and GST credits, incorrectly reporting private expenses, and not registering for GST when required. By sharing these key risk areas early, the ATO's goal is to help builders, contractors, and other tradies proactively understand their obligations and avoid common reporting errors to ensure they get it right from the start.
Join a FREE webinar on Thursday, 4 September, 2025, from 12:00 pm to 12.30 pm (AEST). Dr. Vanessa Rauland, National Climate Director at the Industry Capability Network, will be presenting, "The ‘Cheat Sheet’ to Net Zero," which is designed to help small businesses understand the essentials of climate reporting and government policies. Dr. Rauland, who has a background in climate policy and decarbonisation, will break down upcoming mandatory climate disclosure obligations, explain the downstream impact on businesses as suppliers, and highlight emerging opportunities within Australia's net-zero economy. The webinar aims to equip businesses with the knowledge to prepare and take proactive steps in response to Australia's climate transformation.
The Northern Rivers holds regular Community Events. See what's on and keep up to date on all the fantastic opportunities available and help to support local. There is plenty to do.
A reminder, there are some important lodgement dates to note this month.
The WD Nicholls Team
Global markets delivered another strong month in August, with equities continuing to rise across most regions. The Australian market also extended its winning streak, although sector performance was uneven. Notably, the Commonwealth Bank of Australia (CBA) released its full-year results, which underscored the gap between solid business fundamentals and elevated investor expectations.
A Global Rally with Caution Signs
United States: The S&P 500 rose +2.3%, reaching new record highs, supported by robust results from technology and AI-related companies. While earnings season was generally stronger than expected, valuations remain above long-term averages, leaving markets sensitive to interest rate developments.
Europe: European equities were positive but modest, with weaker German growth and political uncertainty in France weighing on performance. UK markets were stronger, supported by resilient retail and industrial data.
Emerging Markets: The MSCI Emerging Markets Index gained +2.8%, adding to its strong year-to-date performance (+18% over 12 months). China benefitted from targeted stimulus, while India and Brazil continued to attract significant capital inflows.
Bonds: Global bonds softened as investors adjusted expectations for near-term rate cuts from the US Federal Reserve and European Central Bank. In Australia, the Bloomberg AusBond Composite fell –0.4% as yields edged higher, reflecting the RBA’s ongoing cautious stance.
Australian Equities
The S&P/ASX 200 rose +2.6% in August, its fifth consecutive monthly gain. Resource and energy companies led the market on the back of firm commodity demand, while the banking sector lagged, reflecting investor caution toward earnings sustainability and elevated valuations.
CBA: A Record Profit, but a Share Price Under Pressure
CBA reported a record annual cash profit of $10.25 billion, with business lending up 12.2%, home lending up 6.1%, and impairments at low levels.
Despite these strong headline results, the share price declined by approximately 5% during August. This reaction was driven less by weak performance and more by investor expectations. At current levels, CBA trades on a P/E ratio of around 30x, nearly double its domestic peers (NAB, Westpac, ANZ) and well above global comparables such as JPMorgan and Bank of America.
At such a premium valuation, even solid results are insufficient to support the share price. Investors had effectively priced in perfection, and the outcome, while strong, did not exceed that high bar. Looking forward, the challenges are clear:
Potential for margin pressure if interest rates ease,
Slower housing and business credit growth, and
Intense competition across lending markets.
The bank remains a high-quality franchise, but the valuation leaves little margin for error.
Macro Considerations
Tariffs: The 90-day 10% tariff measure expired in August, with most countries effectively paying more due to compliance and trade-related costs. Markets, however, have treated this as a manageable headwind rather than a major economic risk.
Inflation & Rates: Inflation continues to moderate globally, but central banks remain cautious. The RBA held rates steady in August, balancing slower growth with persistent services inflation.
Currency: The US dollar strengthened modestly, weighing on some emerging market currencies, while the Australian dollar was supported by resilient commodity exports.
Outlook
Global equities remain supported by earnings momentum, but valuations — particularly in the US and Australia — are stretched, increasing the risk of volatility if growth slows.
Australian equities continue to benefit from resource sector strength, though financials face a more challenging outlook.
CBA illustrates the broader theme: even high-quality companies are vulnerable when valuations move too far ahead of fundamentals.
In Summary: August was another month of positive performance across global and Australian markets. But with valuations elevated and macro risks still present, investors should remain selective, avoid overpaying for momentum, and focus on businesses with earnings support rather than those driven primarily by sentiment.
Let’s look at how markets performed in August:
For a small business, even a minor cyber security incident can have devastating impacts.
This guide includes basic security measures to help protect your business against common cyber threats. As a starting point, the ASD recommend the following three measures:
Turn on multi-factor authentication
Update your software
Back up your information
This guide might include measures that are not relevant to your business, or your business may have more complex needs. After completing this guide, we recommend small businesses implement Maturity Level One of the Essential Eight.
If you have questions about this advice or cyber security more broadly, the ASD recommends you speak to an IT professional or a trusted advisor.
Cyber threats to small businesses
Scam messages
Scams are a common way that cybercriminals target small businesses. Their goal is to scam you or your staff into:
sending money or gift cards
clicking on malicious links or attachments
giving away sensitive information, such as passwords.
Cybercriminals may try and scam your business through email, text messages, phone calls and social media. They will often pretend to be a person or organisation you trust.
Phishing attacks
Of particular concern to small businesses are phishing attacks. These scams often contain a link to a fake website where you are encouraged to log in to an account or enter confidential details.
Phishing attacks typically compromise your account passwords. Cybercriminals often use this method to “takeover” the social media accounts of small businesses and hold them to ransom.
Ways to mitigate
If a message is from a known entity and seems suspicious, use caution. Contact the person or business separately to check if the message is legitimate. Use contact details you find through a legitimate source, for instance by visiting the business’s official website, and not those contained in the suspicious message.
Learn more about identifying scams and phishing attacks with the following resources:
Email attacks
In addition to scams like phishing, a common email attack against small businesses is business email compromise (BEC). Criminals can impersonate business representatives by using compromised email accounts, or through other means – like using a domain name that looks similar to a real business. Aside from stealing information, the goal of these attacks is usually to scam victims into sending funds to a bank account operated by the scammer.
Ways to mitigate
The best defence against email attacks is training and awareness for your employees. Ensure your staff know to always be cautious of emails with the following:
requests for payments, especially if urgent or overdue
change of bank details
an email address that doesn't look quite right, such as the domain name not exactly matching the supplier's company name.
While these attacks can be devastating, the mitigation measures are easy and cost almost nothing. When staff receive emails like this, the most effective mitigation is to call the sender to confirm they are legitimate. Do not use the contact details you have been sent as these could be fraudulent. Introduce a formal process for staff to follow when payment requests are received or bank details are changed.
Learn to protect your business from BEC scams and email compromise with the following resources:
Malicious software
Malware is a blanket term for malicious software designed to cause harm, such as ransomware, viruses, spyware and trojans. Malware can:
steal or lock the files on your device
steal your bank or credit card numbers
steal your usernames and passwords
take control of or spy on your computer.
Malware can stop your device from working properly, delete or corrupt your files, or allow others to access your personal or business information. If your device is infected with malware, you could be vulnerable to other attacks. The malware could also spread to other devices on your network.
Your device can be infected by malware in a number of ways, including:
visiting websites that have been infected by malware
downloading infected files or software from the internet
opening infected email attachments.
Ransomware
Ransomware is a common and dangerous type of malware. It works by locking up or encrypting your files so you can no longer access them. A ransom, usually in the form of cryptocurrency, is demanded to restore access to the files. Cybercriminals might also threaten to publish or sell data online, unless a ransom is paid.
Ways to mitigate
While anti-virus or security software can help protect you from malware, no software is 100% effective. Staff must be vigilant with emails, websites and file downloads and regularly update their devices to stay secure.
See the following resources for more information on protecting your business from ransomware:
To learn more about the guide visit the link below:
Source and credit: Cyber.gov.au
As part of their ‘Getting it right’ campaign, the ATO has released the latest focus area for small business. Each quarter, the ATO highlights areas where small businesses often make mistakes, due to misunderstanding, oversight, or even opportunistic or deliberate behaviour. They offer ongoing guidance to help you stay informed and on track.
This quarter the focus is on the property and construction industry. This is one of the largest sectors in the small business market and a frequent source of tip-offs.
We know most small businesses want to do the right thing. However, in this industry the ATO continue's to see recurring issues, including:
omitting income, such as:
not reporting all income, whether received in cash or money deposited into bank accounts
incorrectly classifying income from property development
contractors omitting income reported to us through the taxable payments reporting system
overclaiming expenses and GST credits
incorrectly reporting expenses that are private in nature as business expenses, or not apportioning an expense correctly for business and personal use
not registering for GST when required
using business funds and assets to support their personal lifestyle, tax-free.
If you run a business in property or construction, or otherwise operate as a builder, contractor or tradie, it is important to make sure you are reporting correctly and meeting your obligations.
By sharing this focus early, the ATO want to help you avoid common mistakes and build strong habits to get it right from the start.
For more details, see Property and construction industry – key tax and super risks.
Source and credit: ATO.gov.au
FREE WEBINAR Thursday 4 September 2025, 12:00 PM - 12:30 PM (AEST)
Where
Online.
When
Thursday 4 September 2025, 12:00 pm - 12:30 pm (AEST).
The Presenter
Dr Vanessa Rauland, National Climate Director, Industry Capability Network has a background in climate policy, decarbonisation & sustainability in academia and industry. She holds a MSc Env & Resource Mgt & PhD in Decarbonising Cities.
About this event
Dr Rauland will help you get the “cheat sheet” to net zero. This series is taking on the important parts of the reporting and legislation that you need to know.
Join this informative webinar, where Dr Rauland will break down climate disclosure obligations and government policies to explain how this will affect smaller businesses, as well as highlight some of the exciting new opportunities within the net zero economy.
ICN’s National Climate Director – Dr Vanessa Rauland will help you to:
Unpack the essentials of upcoming mandatory climate reporting for businesses
Understand the downstream impact on your business as a supplier
Learn how to prepare your business and take proactive steps
Understand the emerging opportunities in Australia’s net zero transformation.
To register your interest click the link below.
Source and credit: Mybusiness.service.nsw.gov.au
We always like to support our locals! Here are some community events happening this month (in date order).
Pop ups - Special Entertainment Precinct in Byron Bay date on Thursday, 4 September | 7:00 AM to 11:00 AM
The Byron Shire Council is exploring a Special Entertainment Precinct in Byron Bay's town centre, to enhance vibrancy, creativity and safety from sunrise to after sunset.
To help shape the precinct, they are seeking feedback from:
residents
workers
creatives
visitors
local businesses
More information and feedback options
Visit our Your Say page for more information and other ways to share your feedback including:
Project history and funding
A Positioning Paper for detail
An online survey and interactive mapping tool
Stage 1 feedback closes on Tuesday 9 September 2025. This formal consultation stage will inform precinct collateral to be reported to Council in late 2025, including a draft Precinct Management Plan and Planning Proposal.
Location: Butler Street, Reserve, Byron Bay
Bangalow Farmers Market dates on Saturday's, 6, 13, 20, and 27 September | 7:00 AM to 11:00 AM
Discover the Heart of Local Food at Bangalow Farmers Market Every Saturday morning from 7:00 am - 11:00 am, the Bangalow Hotel carpark transforms into a vibrant hub of local food. Our farmers offer a bountiful harvest of fresh produce, artisan goods, and more. Meet the farmers, learn about sustainable practices, and support your local community. Visit Bangalow Farmers Market and experience the true essence of local food.
Location: Piccabeen Park, Cnr Deacon and Ashton Streets, Bangalow
Byron Bay Community Market next date is Sunday, 7 September | 8:00 AM to 2:00 PM
The Byron Bay Community market is held from 8:00 am to 2:00 pm on the 1st Sunday of every month.
The market hosts an eclectic collection of stalls that showcase what Byron has to offer.
From Sunday 6 July the market will be temporarily relocated to the Main Beach Foreshore, while drainage work is carried out.
Location: Main Beach Foreshore, Bay Street, Byron Bay
Byron Bay Ground Swell Workshop date on Thursday, 11 September | 10:30 AM to 12:00 PM
Local businesses are invited to a workshop to learn practical ways to reduce the impact of litter in our environment.
About the workshop
Visitor litter has a serious impact on the success of tourism and vice versa.
Ground Swell is a Take 3 for the Sea Program. It aims to inform and empower the NSW tourism industry to work together to reduce litter impacts in our beautiful holiday locations.
This free 60-to-90-minute workshop provides practical ways that local businesses and community members can help to reduce litter.
What's in it for your business?
Access to resources such as the Litter Prevention Toolkit for NSW Tourism Operators and case studies from all types of tourism businesses.
Identify, understand and act on the 6 factors behind littering.
Reduce your cost of litter and much, much more.
After the workshop, the Take 3 team will be in touch with all participants providing a quick check-in.
Location: Byron Bay Community Centre, 69 Jonson Street, Byron Bay
Council Planning Meeting next date is Thursday, 11 September | 3:00 PM to 9:00 PM
The dates and times of our Council Planning meetings are listed below.
Visit Minutes & Agendas to view and download meeting papers or watch the Livestream.
If you'd like to speak at a Council Meeting, register for Public Access by visiting Address a Council meeting
Location: Byron Shire Council Chambers, 70 Station Street, Mullumbimby
Mullumbimby Community Market next date is Saturday, 20 September | 8:00 AM to 2:00 PM
The Mullumbimby Community Market is held on the third Saturday of each month from 8:00 am to 2:00 pm.
The market is a vibrant family-friendly festival held in Summers Park. Discover unique treasures among the diverse stalls offering artisan clothing, jewellery, homewares, plants, and more, all while enjoying live music and delicious food. With its warm, welcoming atmosphere and support for the local historical society museum, the Mullumbimby Community Market is a must-visit destination for both locals and visitors.
Location: Corner of Stuarts and Myocum Streets, Mullumbimby
Council Ordinary Meeting date on Thursday, 25 September | 3:00 PM to 9:00 PM
If you'd like to speak at a Council Meeting, register for Public Access by visiting Address a Council meeting.
A livestream is available to watch online.
Questions about the meeting?
Phone: 02 6626 7000
Email: council@byron.nsw.gov.au
Location: Byron Shire Council Chambers, 70 Station Street, Mullumbimby
Source and credit: Byron.nsw.gov.au/Recreation-Culture/Events-Venues/Whats-On
Key lodgment and payment dates for business
21 September
Activity statements
August monthly activity statements – final date for lodgment and payment.
30 September
Single Touch Payroll (STP) closely-held payees
End-of-year finalisation declaration through STP for closely held payees due for employers who have both closely held payees and arm's length employees.
Annual TFN withholding report
Annual TFN withholding report for closely-held trusts where a trustee has been required to withhold amounts from payments to beneficiaries during the previous financial year – final date for lodgment.Key lodgment and payment dates for business for September.
Source and credit: ATO.gov.au
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