October E News 2025

Welcome to your October newsletter! This month we cover global markets managing cautious optimism, the important shift in the Division 296 super tax to only tax realised earnings, a crucial reminder that the dual cab ute FBT exemption is not automatic, and an invitation to a free webinar on Tuesday, 11 November 2025 for business success. Read on for key insights.

Global markets are currently treading a path of cautious optimism, as investors weigh the prospect of central banks nearing the end of their interest rate hiking cycle against signs of moderating global growth. While inflation has eased from last year's peaks, it remains sticky in key regions, keeping interest-rate expectations—and thus bond yields—front of mind for everyone from the ASX 200 to Main Street. Domestically, the RBA has held the cash rate steady as it continues to battle persistent inflation and a tight labour market, even as higher mortgage rates slow household spending, meaning the key focus remains navigating higher costs and planning around the continued tightness of available capital and the rising cost of debt.

Following extensive industry consultation, Treasurer Jim Chalmers has announced welcome adjustments to the Government’s proposed Division 296 measure, which aims to tax earnings on superannuation balances above $3 million. The key revisions, including a one-year delay to the commencement date (now 1 July 2026), reflect a move towards a fairer, more practical design. Crucially, the policy now features a progressive, two-tier tax model (30% on earnings between $3M and $10M, and 40% above $10M), and the new tax rates will now apply only to future realised earnings, not unrealised gains. This shift to taxing realised earnings directly addresses industry concerns, particularly for SMSFs and funds holding illiquid assets, and the $3 million and $10 million thresholds will now be indexed to align with inflation and the Transfer Balance Cap.

A common, but costly, myth in business is that dual cab utes are automatically exempt from Fringe Benefits Tax (FBT)—but this is simply not true. If you provide a ute to an employee for work duties and it is also available for personal use, that benefit is likely subject to FBT unless two strict conditions are met: the vehicle must be an 'eligible vehicle' (designed to carry a load of one tonne or more, or meeting other criteria) AND its private use must be 'minor, infrequent, and irregular.' This means if your work ute is regularly used as a family taxi, for significant personal trips, or for regular weekend activities, you will have an FBT liability. We are here to help you navigate these obligations, from ensuring you maintain accurate records to calculating the taxable value and lodging your FBT return ahead of the upcoming reporting period.

Join an essential FREE webinar on Tuesday, 11 November 2025, from 1:00 pm - 2:00 pm (AEDT), covering every key activity a new business owner needs to consider, from initial concept through to launch. Presented by experienced businessman and coach Geoff Silk, this event is designed to guide both new and growing entrepreneurs onto a definitive path to success. The session will balance the traditional fundamentals of business creation with modern, digitally-led initiatives to boost efficiency, enhance professionalism, and provide a competitive edge in today's market. Register below.

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.

Global Overview

Markets remain in a state of cautious optimism. Investors are balancing the prospect of central banks nearing the end of their tightening cycles against signs that global growth continues to moderate. Inflation has eased from last year’s peaks but remains sticky in some regions, keeping interest-rate expectations front of mind.

International Share Markets & US Reporting Season

The US earnings season commenced last week, marking the start of what will be a critical few weeks for investor sentiment. Early reports from the major banks and technology companies have generally met or exceeded expectations, providing a modest boost to equities. Overall, analysts forecast around 8–9% year-on-year earnings growth for S&P 500 companies this quarter. However, with valuations already elevated, the focus is shifting to forward guidance — particularly around costs, consumer demand, and wage pressures.

Global share markets have been mixed:

• US markets remain near record highs, supported by resilient corporate profits and expectations of modest rate cuts in 2026.

• European equities have lagged slightly as manufacturing data remains weak.

• Asian markets continue to face headwinds from a sluggish Chinese recovery and currency weakness across emerging economies.

Australian Share Market & Economy

The Australian market has mirrored global trends, showing periods of strength followed by short bouts of volatility. The ASX 200 recently traded near 8,800 points, with weakness concentrated in the resources and healthcare sectors, while the banks have provided relative stability.  Economic growth remains modest but positive. The RBA has kept the cash rate at 3.60%, citing inflation that remains above the 2–3% target range and persistent tightness in the labour market. Household spending has slowed under higher mortgage rates, but population growth and strong employment have cushioned the downside. It is also unlikely we will receive any more relief next week.  This is the last meeting for 2025.

Bond yields have continued to rise, with 10-year Australian Government bonds trading around 4.3% and 30-year yields approaching 5%. For investors, this means improved income opportunities in fixed income but continued caution for highly leveraged sectors.

Gold

Gold has been one of the standout performers of 2025, trading near US $3,950 per ounce, up more than 40% over the year. The rally has been driven by safe-haven demand, a weaker US dollar, and expectations of softer policy from major central banks.

While gold remains a valuable portfolio diversifier and inflation hedge, investors should be mindful that the market may experience short-term corrections after such strong gains.

Bond Markets & Interest Rates

Global bond markets remain under pressure as central banks keep policy restrictive to ensure inflation is contained. US Treasury yields are near multi-year highs, while Australian long-dated yields have followed suit.

The upside is that income returns from high-quality bonds are now the most attractive they’ve been in over a decade, creating opportunities for conservative investors to lock in yields while reducing equity exposure. However, duration risk remains important — if inflation re-accelerates or growth surprises on the upside, yields could rise further.

Outlook & Positioning

Looking ahead, the next quarter will likely be shaped by:

• The trajectory of inflation and central bank policy.

• Ongoing US earnings results and global profit expectations.

• Developments in China’s economic stimulus and commodity demand.

• Geopolitical and fiscal developments, particularly in the US and Europe.

Our view remains balanced — favouring diversified portfolios with exposure to both quality equities and income-producing assets, while maintaining liquidity and defensive positioning where appropriate.

Key Takeaways for Investors

• Stay diversified — equity valuations are elevated, so broad exposure helps manage risk.

• Avoid short-term reactions — volatility may persist as markets adjust to changing rate expectations.

Let’s look at how markets performed in October:

Overview

The government is making practical changes to the design and implementation of its Better Targeted Superannuation Concessions (BTSC) policy in response to stakeholder feedback. The adjustments include:

• introducing a second threshold to better target super concessions on balances above $10 million

• indexing the large balance thresholds of $3 million and $10 million

• moving to a realised earnings approach that aligns to existing income tax concepts.

• The government will consult the sector on the best approach to:

• Calculate realised earnings and attribute to in‑scope individuals;

• Extend the existing exemption for some judges to improve consistency across jurisdictions;

• Make additional changes necessary to ensure commensurate treatment is maintained for defined benefit members.

The government will push back the start date of the reforms to 1 July 2026 to consult on final details and prepare legislation.

As announced in the original measure, individuals will still be notified of their liability to pay BTSC tax by the ATO, based on reporting the ATO receives from funds, and will still have the choice of paying the tax directly or from their superannuation funds.

The proposed reforms will maintain the concessional tax treatment of superannuation for all members but makes these concessions more sustainable.

The table below summarises the key changes and compares the previously announced and revised version of the measure.

Who do these changes affect?

The Better Targeted Superannuation Concessions Measure will affect a small proportion of the population with high superannuation balances.

The new measure will affect less than 0.5 per cent of Australians with superannuation accounts in 2026-27.

All individuals who will be affected by the new measure in 2026-27 would have been affected by the original policy in the same year.

Both the large balance thresholds of $3 million and $10 million will be indexed, which will reduce the number of individuals in scope over time compared to the original design.

The higher tier rate on balances above $10 million will affect less than 0.1 per cent of Australians with superannuation accounts — applying a more progressive treatment to superannuation taxation.

While the Government is reducing superannuation concessions for Australians with high balances, the tax paid on superannuation earnings, even for those in excess of $10 million, will remain concessional compared to individual tax rates.

Updated calculation method and examples

The precise method for calculating tax liability will be settled during consultation but it is anticipated that it will follow these five broad steps:

Step 1: ATO notifies the super fund that there is an in-scope member (i.e. a member with a total superannuation balance of $3 million or more)

Step 2: Fund calculates realised earnings attributable to that in-scope member and reports this to ATO

Note: the trustee of the super fund could attribute earnings to in-scope members using existing processes or on a fair and reasonable basis (as supported by ATO guidance).

Step 3: ATO calculates the proportion of the total super balance (TSB) exceeding the $3 million threshold

Step 4: ATO calculates the proportion of the TSB exceeding the $10 million threshold (if applicable)

Step 5: ATO calculates the total tax liability for all that member’s interests

Note: the tax liability formula above gives effect to the two-tiered approach, applying an additional 15 per cent tax on the proportion of earnings corresponding to the TSB between $3 and $10 million, and an additional 25 per cent tax on the proportion of earnings corresponding to the TSB above $10 million. These apply in addition to the fund’s concessional tax rate of 15 per cent.

Examples

Megan – both APRA-regulated fund and SMSF interests

• Megan is 58 and she is both a member of an APRA-regulated fund and a member of an SMSF and has a total super balance of $4.5 million, of which $2.3 million is in an APRA fund and the remaining $2.2 million is in an SMSF.

• In the 2026-27 financial year, Megan had $100,000 in realised earnings from her APRA fund and $200,000 in realised earnings from her SMSF (a total of $300,000).

• The proportion of her $4.5 million balance above the $3 million threshold is 33.33 per cent. The proportion above $10 million is nil.

• Megan’s BTSC tax liability is therefore $15,000 (0.15 x 0.3333 x $300,000).

Emma – SMSF member with over $10 million

• Emma is 55 and a member of an SMSF and has a total super balance of $12.9 million at the end of the 2026-27 income year. That year she was attributed $840,000 of the fund’s realised earnings for the purposes of this tax.

• The proportion of her balance above the $3 million threshold is 76.74 per cent and the proportion of her balance above the $10 million threshold is 22.48 per cent.

• Emma’s BTSC tax liability is therefore $115,581 (0.15 x 0.7674 x $840,000 + 0.10 x 0.2248 x $840,000). Note the combined BTSC tax rate on earnings over $10 million is 25 per cent.

Next steps

The Government will introduce legislation to implement these changes as soon as possible in 2026. Further consultation will be undertaken with the superannuation industry and other relevant stakeholders to settle implementation.

Source and credit: NTAA.com.au & Treasury.gov.au

There's a common myth that dual cab utes are automatically exempt from fringe benefits tax (FBT). However, that's not the case.

If you provide dual cab utes to staff to complete their duties and the vehicle is available for personal use, then the benefit may be subject to FBT.

When FBT doesn't apply

To qualify for an exemption, 2 conditions must be met. The dual cab ute must be:

1. An eligible vehicle, which means it's designed to carry:

   • a load of one tonne or more, or

   • more than 8 passengers (including the driver), or

   • a load under one tonne and not primarily designed for carrying passengers.

2. Only used for limited private use (i.e. minor, infrequent and irregular), such as the occasional trip to the tip or helping a mate move house.

So, if your work dual cab ute doubles as the family taxi or is used for weekend personal trips, it's not exempt. You need to check your FBT obligations to ensure compliance.

When FBT applies

If an employee's personal use doesn't meet both exemption conditions, you will be liable for FBT.

We are here to help you understand your FBT obligations and get ready for the upcoming reporting period by:

• ensuring you keep accurate records – even if the benefit is exempt from FBT because of limited private use, you need to keep records to support this

• work out the taxable value of the fringe benefit and calculate FBT liability

• lodge your FBT return and pay the amount you owe

• report the reportable fringe benefits on each of their employee’s income statement or payment summary.

You can find more information to support you at Exempt use of eligible vehicles.

Source and credit: ATO.gov.au

FREE WEBINAR Tuesday 11 November 2025, 1:00 PM - 2:00 PM (AEDT)

Where

Online.

When

Tuesday, 11 November 2025, 1:00 pm - 2:00 pm (AEDT).

The Presenter

Geoff Silk is a businessman and coach who provides business advice based on many years of experience working with new, developing and established businesses. He interacts diligently with business owners selling products and/or services, to achieve their aspirations and goals. 

About this event

This webinar will cover every activity that a new business owner will need to consider from their first thoughts about their future enterprise to its launch. Though seemingly basic, any attendee, whether a newbie to business or a business owner who is still growing their business, will appreciate the information that will guide them to ensure their business is following a path to success.

The webinar balances the traditional aspects of creating and building a business together with the modern digitally led initiatives that will increase efficiency, enhance professionalism and enable a business owner to get ahead of their competitors.

To register your interest click the link below.

Source and credit: Business.gov.au

We always like to support our locals!  Here are some community events happening this month (in date order).

Bangalow Farmers Market dates on Saturday's, 1, 8, 15, 22 and 29 November | 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 date is Sunday, 2 November | 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

Night-Time Economy Program on Monday, 3 November | 10:00 AM to 11:00 AM

The NSW Government’s Office of the 24-Hour Economy Commissioner is pleased to announce the launch of the Regional Night-Time Economy Program.This new capacity-building and grant program is designed to support organised teams of local businesses (Business Collectives) to strengthen and grow vibrant economies from day into night.Join an online briefing session and learn more about:

• Eligibility and assessment criteria.

• The application process and key dates.

• Examples of initiatives that could be supported.

• The capacity-building support provided alongside funding. 

When: 10.00 am - 11.00 am Monday, 3 November 2025

Where: Online (Microsoft Teams)

For any questions on the Regional Night-Time Economy Program, please visit their webpage or email at Regional-NTE-Program@24houreconomy.nsw.gov.au.

Location: Online

Council Planning Meeting date is Thursday, 13 November | 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 date is Saturday, 15 November | 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: 150 Stuart Street, Mullumbimby

Federal Community Market date is Sunday, 16 November | 8:00 AM to 2:00 PM

The Federal Community Market is held on the third Sunday of each month from 8:00 am to 2:00 pm.

The market has been able to restart following the completion of Federal Drive, that has been closed for over two years following the devastating 2022 floods. It has over 30 stalls, local vendors and a coffee cart.

This is a beloved community where the Federal Market has long been a cherished event with a vibrant atmosphere, offering the community a chance to come together, enjoying the music from our locally-based musicians.

Location: Federal Halls, 466 Federal Drive, Federal

Sprung Dance Theatre presents Dis-Co Ball! date is Saturday, 22 November | 4:00 PM to 7:00 PM

Join Sprung Dance Theatre for a community celebration where you will dance together, connect and shine. Think social dance meets disco – with plenty of fun, music, and guided dance activities.

This year’s Dis-Co Ball is going to look and feel a little different… no sit-down show – it’s all about you on the dance floor! Dress to impress and get ready to move!

To book your tickets visit Sprung Dis-Co Ball 2025.

Want to perform at Dis-Co Ball?

Rehearsal for our community performance at Dis-Co Ball will be at our October Tintenbar Open Doors. Come along, and learn some moves, to share with our community at the event!

Register at Sprung Dance Theatre.

This event is supported by Byron Shire Council through the Events and Festivals Sponsorship grant.

Location: Mullumbimby Civic Hall, 55 Dalley Street, Mullumbimby

Council Ordinary Meeting date is Thursday, 27 November | 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

11 November

Activity statements

• Quarter 1 (July–September) activity statements lodged electronically – final date for lodgment and payment

  • refer to the two week lodgment concession for information on your eligibility for this later due date.

21 November

Activity statements

• Lodge and pay October monthly activity statements.

Income tax

• Payment due date if you lodge your own tax return.

28 November

Superannuation

• Lodge and pay quarter 1 (1 July to 30 September) Superannuation guarantee charge statement – quarterly if you didn't pay your contributions on time.

• You can choose to offset contributions you've paid late to a fund for each employee against the super guarantee charge for the quarter for those employees.

• You can't claim an income tax deduction for the super guarantee charge.

Source and credit: ATO.gov.au