TCBS Accounting & Advisory

"My business made $50k profit this year... so why is there nothing in the bank account?"

If that sounds familiar, you're not alone and it's honestly one of the most common (and costly) mix-ups small business owners make.

Profit is what's left after you subtract expenses from income - on paper.
Cash flow is the actual money moving in and out of your bank account, in real time.

You can be profitable and still be broke. here's how:
🔸 you invoiced $20k but haven't been paid yet — that's profit on paper, not cash in hand
🔸 you bought stock or equipment upfront — cash out now, expense spread over time
🔸 loan repayments don't show up as an expense on your P&L, but they absolutely hit your bank account
🔸 tax bills land based on profit, not on whether you've actually got the cash sitting there to pay it

This is exactly why businesses that look "successful" on paper can still run into serious trouble - not because they're not making money, but because they don't know when that money's actually going to hit the account.

This is exactly why you need a good accountant - not just someone who lodges your tax return once a year, but someone who actually explains this stuff to you and tracks it with you, so you're not finding out about a cash problem when it's too late to fix.

We're here to help. We're not just here to be your ATO representative lodging tax returns, we want to be your trustworthy business partner, in it with you for the long run.

Message us - let's get you seeing the full picture, not just the P&L.

Got a HECS/HELP debt? Here's what's changing for 2026–27 🎓💰
New financial year, new repayment threshold - and this one's actually good news.

For 2026–27, you won't start making compulsory repayments on your study or training loan (HELP, VSL, SFSS, SSL, ABSTUDY SSL, AASL) until your repayment income hits $69,528, up from $67,000 last year.

And remember, it's not an all-or-nothing cliff anymore. Since the marginal system kicked in, you only pay on the income above each threshold, not your whole income once you cross the line. Here's how it breaks down:

📊 2026–27 thresholds:
Up to $69,528 → nil
$69,529–$129,717 → 15c for every $1 over $69,528
$129,718–$186,050 → $9,028 + 17c for every $1 over $129,717
$186,051+ → 10% of your total repayment income

Quick example: if your repayment income is $86,380, you're only paying 15% on the $16,852 above the threshold, which works out to about $2,528 for the year, not 15% of the whole lot.

Worth knowing too: "repayment income" isn't just your taxable income. It also picks up reportable fringe benefits, net investment losses, reportable super contributions, and exempt foreign income, so your repayment could kick in earlier than you'd expect if any of those apply to you.

Not sure how this affects your return this year? Send us a message and we'll run the numbers for you 👋

Not eligible for Medicare? That could actually be good news at tax time 👀💰

If you’re living in Australia on a visa and weren’t entitled to Medicare for some or all of the financial year, you may be eligible for a Medicare Levy Exemption.

Here’s why that matters 👇

💸 The Medicare Levy is generally 2% of your taxable income
🌏 Many international students, working holidaymakers and temporary visa holders may not be entitled to Medicare
📄 If you qualify, you may be able to claim an exemption for the period you weren’t eligible for Medicare
💰 Over a full financial year, that 2% can add up to a significant amount

So don’t automatically assume it’s just another tax you have to pay.

If this sounds like your situation, get in touch with TCBS. We can help check your circumstances, sort through the paperwork and make sure you’re claiming what you’re entitled to. 👋💛

📍 Ermington, Sydney | 🌐 tcbs.net.au | 📞 0451452245 | 📧 [email protected]

After years of preparing tax returns, there are a few phrases that still make me smile
😅 "My mate said I can claim that."
💸 "I don't have receipts, but I definitely spent the money."
🏠 "I work from home sometimes, so I I think I can claim 100% of my internet, electricity and mortgage."
🚗 "The car is in my wife's name, but I use it for work."
📱 "It's mostly for business... "
📈 "I sold some shares and crypto, but I didn't make any money, so I don't think it matters."

Here's the reality:

Tax deductions aren't based on what your mate claims, what someone said on socials or what worked for somebody else.

They're based on your specific circumstances, the tax law and having the right records to support your claim.

The best tax outcome isn't the one with the biggest deductions.

It's the one that's accurate, compliant and stands up if the ATO ever asks questions.

Before claiming something questionable, ask your accountant - not your mate and NOT CHAT GPT!!!

Still have doubts?
📞 Contact TCBS Accounting & Advisory today for expert tax advice.

That 10% that you collected on your sales? This is for ATO (BAS) not for your BIZ.

Let's talk GST and BAS. Two things every business owner hears constantly but not everyone fully understands. So let's break it down in plain English. 👇

What is GST?
GST stands for Goods and Services Tax. It's a 10% tax added on top of most sales in Australia. If your business earns over $75,000 a year, you're required to register for GST — which means you add 10% on top of your prices and collect it on behalf of the ATO.

That's the key word — COLLECT. Not keep. 👀

What is BAS?
BAS stands for Business Activity Statement. It's basically your report card to the ATO where you tell them:
📌 How much GST you collected from your customers
📌 How much GST you paid on your own business expenses
📌 The difference is what you pay (or get refunded) 🙌

Most small businesses lodge BAS quarterly, though some lodge monthly.
So how does it actually work?

Let's say you invoice a client $1,100.
✅ $1,000 = your income
❌ $100 = GST collected for the ATO

When BAS time comes, you hand that $100 over. BUT — if you spent $550 on a business expense that included GST, you can claim back that $50.
So you'd only pay the ATO $50. That's called a GST credit. 💡

The trap most business owners fall into?
That $100 sits in your account looking like YOUR money. So it gets spent. Then BAS arrives and suddenly you owe thousands you don't have. 😬

The simple fix:
👉 Open a separate bank account for GST
👉 Every time money comes in, transfer 10% straight across
👉 When BAS is due, the money is already sitting there waiting

No stress. No scrambling. No surprises.

If you're unsure when your BAS is due, what you can claim, or just want someone to handle it for you - that's exactly what we do at TCBS. 👇

📩 Contact TCBS Accounting & Advisory today - we'd love to help.
📍 Ermington, Sydney | 🌐 tcbs.net.au | 📞 0451452245 | 📧 [email protected]