Nov 30, 2025 | Borrowing Power, Debt Consolidation, Investment, Purchasing, Tax Planning
November 2025 has delivered two critical pieces of news for Australian Small and Medium Enterprise (SME) owners, offering clarity on tax planning and improved banking rights. Here’s what you need to know.
1. The $20k Instant Asset Write-Off: Finally Confirmed
After months of uncertainty, the $20,000 Instant Asset Write-Off has passed the Senate and is now confirmed for the 2025-26 financial year. The Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 sailed through Parliament in November, with Chartered Accountants Australia and New Zealand welcoming the news whilst renewing calls for the measure to be made permanent.
What This Means for Your Business
This confirmation provides the certainty business owners have been waiting for. You can now confidently purchase assets—such as tools, IT equipment, or machinery—costing less than $20,000 and claim the immediate tax deduction in the 2025-26 financial year.
Key details:
- Per-asset basis: The $20,000 threshold applies to each individual asset, allowing for multiple purchases throughout the year
- Eligibility: Small businesses with aggregated annual turnover under $10 million using simplified depreciation rules
- Timing: Assets must be purchased and installed ready for use by 30 June 2026
- Both new and second-hand assets qualify, including machinery, tools, office equipment, technology, and vehicles
Without this extension, the threshold would have reverted to just $1,000 from 1 July 2025—a dramatic reduction that would have significantly impacted small business investment decisions.
2. New Protections for Larger Business Debts
A major win for SMEs came into effect on 28 February 2025 with the expansion of the Banking Code of Practice. The updated Code, approved by ASIC and developed by the Australian Banking Association, significantly expands protections for small business customers.
Expanded Small Business Definition
The definition of a ‘small business’ has been widened to include businesses with up to $5 million in total debt (previously $3 million). This change brings an estimated 10,000 additional Australian businesses under the Code’s protection.
What this means for your business:
- If your business has aggregate borrowings between $3m and $5m, you now access stronger protections regarding loan conditions, financial difficulty assistance, and notice periods for enforcement
- Banks must now provide clearer information about their products and services
- Enhanced protections during periods of financial difficulty
Stronger Guarantor Protections
The new Code also enforces stricter rules when banks take personal guarantees—often from family members supporting a business loan. Key changes include:
- Mandatory meetings: Banks must now take reasonable steps to ensure a meeting is held with prospective guarantors (separately from borrowers) to discuss the implications before signing
- Risk disclosure: Banks must ensure guarantors fully understand the financial risks involved
- Alternative exploration: Banks must explore alternative paths of recovery before enforcing guarantees and taking steps to sell a guarantor’s primary residence
- Limited guarantees: Guarantees are limited to specified amounts and secured property values
As the Australian Small Business and Family Enterprise Ombudsman noted, these “vital small business protections” represent a significant uplift in banking standards.
3. Strategic Implications: Why Q4 2025 Is the Time to Act
With the RBA holding the cash rate steady at 3.60% at its November 2025 meeting, the cost of capital remains stable. The Reserve Bank noted that inflation had picked up to 3.0% (trimmed mean) but attributed some of this to temporary factors, maintaining a cautious approach to future rate movements.
This creates a unique window of opportunity:
- Tax certainty: The write-off extension is now law—no more waiting
- Stable rates: Finance costs are predictable for planning purposes
- Better protections: Enhanced borrower rights under the new Banking Code
The Asset Finance Advantage
Using Asset Finance to fund equipment purchases allows you to preserve cash flow while still triggering the immediate tax deduction. This approach offers the best of both worlds: you get the full tax benefit in the year of purchase, while spreading the actual payment over time.
Whether it’s upgrading your fleet, investing in new technology, or replacing aging equipment, now is the ideal time to review your asset register and financing structures.
Next Steps: Talk to Sanford Finance
Our team can help you navigate these changes and structure your equipment purchases to maximise tax benefits while protecting your cash flow. Whether you’re looking to take advantage of the instant asset write-off before 30 June 2026, or want to understand how the expanded Banking Code protections might benefit your business, we’re here to help.
Contact us today to discuss your business finance needs and create a strategy that works for your situation.
Disclaimer: This article provides general information only and does not constitute financial, tax, or legal advice. The information is current as at November 2025. We recommend seeking professional advice tailored to your specific circumstances before making any financial decisions.
Jun 11, 2025 | Sanford Team, Uncategorized
Sydney-based finance company receives prestigious nomination in Professional Services category
Sanford Finance has achieved a significant milestone by being named a finalist in the 2025 St George Local Business Awards, competing in the highly competitive Professional Services category. This recognition highlights the company’s exceptional service delivery and strong community presence in Sydney’s St George region.
Excellence in Local Business Recognition
The St George Local Business Awards represent one of the region’s most prestigious business recognition programs, celebrating outstanding achievements across diverse industry sectors. The awards focus on businesses that demonstrate excellence in customer service, innovation, and meaningful community engagement.
Being selected as a finalist from numerous applicants underscores Sanford Finance’s commitment to delivering superior mortgage and financial services while maintaining strong ties to the local business community.
Leadership Perspective on the Achievement
Ivo De Jesus, Director of Sanford Finance, expressed his pride in the team’s recognition: “Being acknowledged as a finalist in the St George Local Business Awards represents a significant honor for our entire team. This recognition validates our dedicated efforts to deliver personalized financial solutions and reinforces our unwavering commitment to serving the community we call home.”
The nomination reflects Sanford Finance’s approach to business, which prioritizes building lasting relationships with clients while providing tailored financial solutions that meet individual needs.
Community-Centered Business Philosophy
Sanford Finance’s finalist status stems from its community-focused approach to financial services. The company has built its reputation on:
- Personalized Service: Tailoring financial solutions to meet each client’s unique circumstances
- Local Expertise: Deep understanding of the St George area property market and community needs
- Client Relationships: Building long-term partnerships rather than transactional interactions
- Community Engagement: Active participation in local business networks and community initiatives
Comprehensive Financial Services
As a specialist in mortgage and finance solutions, Sanford Finance offers a comprehensive range of services including:
- Home loans for first-time buyers, investors, and refinancing clients
- Commercial and business financing solutions
- Asset and equipment finance
- SMSF lending and investment finance
The company’s expertise spans across multiple lending institutions, enabling them to secure competitive rates and terms for their diverse clientele.
Gratitude to Clients and Community
The achievement would not have been possible without the continued support of Sanford Finance’s clients and the broader St George community. The company acknowledges that this recognition belongs to everyone who has contributed to their success story.
“Our clients’ trust and the community’s support have been instrumental in reaching this milestone,” noted De Jesus. “This nomination motivates us to continue striving for even greater excellence in everything we do.”
Looking Ahead to the Awards Ceremony
The anticipation builds as the St George Local Business Awards ceremony approaches, where winners across all categories will be announced. The event promises to be a celebration of local business excellence, bringing together entrepreneurs, community leaders, and business professionals from across the region.
Sanford Finance looks forward to joining fellow local businesses at this prestigious event, regardless of the final outcome. The recognition as a finalist already represents a significant achievement for the company and its dedicated team.
Continued Commitment to Excellence
This nomination reinforces Sanford Finance’s position as a leading financial services provider in the St George area. The company remains committed to:
- Expanding their service offerings to meet evolving client needs
- Maintaining the highest standards of professional service
- Contributing positively to the local business community
- Innovating their approach to financial solutions
About Sanford Finance
Sanford Finance is a Sydney-based mortgage and finance company specializing in tailored financial solutions for individuals and businesses. With extensive industry experience and a network of trusted lending partners, the company prides itself on delivering exceptional service while maintaining strong community connections.
For more information about Sanford Finance’s services or to discuss your financial needs, contact:
Phone: (02) 9095 6888
Email: [email protected]
Website: sanfordfinance.com.au
The company continues to provide expert guidance and personalized financial solutions to clients throughout Sydney and the St George region, building on the foundation of trust and excellence that earned them this prestigious recognition
Jun 11, 2025 | Bridging Loan, Interest rates, Refinance, Uncategorized
A critical legislative shift will significantly impact how Australian businesses manage tax debt costs
Starting 1 July 2025, the Australian Taxation Office (ATO) will implement a fundamental change to tax law that will affect thousands of businesses across the country. The ATO will no longer allow taxpayers to claim income tax deductions for interest charges on unpaid tax debts, marking a significant shift in how tax debt costs are treated.
This change applies to both the General Interest Charge (GIC) and the Shortfall Interest Charge (SIC) incurred on or after the effective date, representing one of the most impactful tax policy changes for businesses in recent years.
Understanding the Interest Charges
To fully grasp the implications of this change, it’s essential to understand how these interest charges work:
General Interest Charge (GIC) is applied daily to unpaid tax liabilities and is designed to encourage timely payment of taxes. As of March 2025, the GIC rate stands at 11.42%, compounding daily and making delays increasingly expensive for taxpayers.
Shortfall Interest Charge (SIC) is imposed when there’s a shortfall in tax payments due to an amended assessment. The SIC is calculated from the original due date until the shortfall is corrected, with the current rate at 7.17%.
These rates are significantly higher than most commercial lending rates, making tax debt an expensive proposition for businesses that fall behind on their obligations.
The Financial Impact on Businesses
Previously, businesses and individuals could claim deductions for these interest charges, effectively reducing the cost of late tax payments. This deductibility provided some relief for businesses struggling with cash flow issues or facing unexpected tax liabilities.
With the new legislation, any GIC or SIC incurred from 1 July 2025 onwards will be non-deductible, substantially increasing the after-tax cost of carrying tax debt.
To illustrate the impact, consider a business with a $50,000 tax debt that accrues $5,000 in GIC annually. Under the current rules, this business could deduct the $5,000, reducing their taxable income. For a business in the 25% tax bracket, this deduction saves $1,250 in taxes, making the effective cost $3,750.
Post-1 July 2025, this deduction will no longer be available, making the full $5,000 a direct, non-deductible expense. This represents a 33% increase in the real cost of carrying tax debt.
Strategies to Minimize the Impact
While this change will increase costs for businesses with tax debt, there are several strategies that can help mitigate the financial impact:
1. Prioritize Timely Tax Payments
The most effective strategy is ensuring all tax liabilities are paid on time to avoid incurring GIC or SIC altogether. This requires:
- Implementing robust cash flow management systems
- Setting up automatic payment arrangements with the ATO
- Creating dedicated tax reserve accounts
- Using quarterly tax calculators to estimate liabilities accurately
2. Explore Alternative Financing Options
Consider using business loans, overdrafts, or other commercial financing to pay tax debts. Interest on such loans remains tax-deductible, potentially offering a more cost-effective solution than allowing GIC to accrue.
For example, a business loan at 9% interest rate would have an effective after-tax cost of 6.75% (assuming a 25% tax rate), compared to the full 11.42% GIC rate that will no longer be deductible.
3. Review Existing Payment Arrangements
If you have existing ATO payment arrangements extending beyond 1 July 2025, it’s crucial to assess the financial impact of non-deductible interest and explore refinancing options. This might involve:
- Calculating the new effective cost of existing arrangements
- Exploring acceleration of payments before the July deadline
- Investigating refinancing through commercial lenders
4. Seek Professional Financial Advice
The complexity of this change and its potential impact makes professional advice more valuable than ever. Financial advisors and accountants can help develop strategies tailored to your specific circumstances, including:
- Cash flow forecasting and management
- Alternative financing structures
- Tax planning to minimize future liabilities
- Risk assessment and mitigation strategies
Preparing for the Change
Businesses should begin preparing for this change well before the July 2025 deadline. Key preparation steps include:
- Immediate assessment: Review current tax debt positions and payment arrangements
- Cost analysis: Calculate the potential increased cost under the new rules
- Strategic planning: Develop financing strategies that minimize the impact
- Implementation: Put new processes and arrangements in place before the deadline
How Sanford Finance Can Help
At Sanford Finance, we understand the challenges this legislative change may pose to Australian businesses. Our experienced team specializes in helping businesses navigate complex financial situations and can assist with:
- Debt refinancing solutions: Exploring commercial financing options to replace costly tax debt
- Cash flow management: Implementing systems to ensure timely tax payments
- Strategic planning: Developing comprehensive approaches to minimize the impact of these changes
- Alternative financing: Structuring cost-effective funding solutions for tax obligations
We work with a network of over 40 lenders to secure competitive rates and terms tailored to your specific situation, whether you need immediate funding for tax payments or longer-term arrangements to manage cash flow.
Take Action Now
Don’t wait until July 2025 to address these changes. The earlier you implement strategies to manage tax debt, the more you can minimize the financial impact on your business. With proper planning and the right financial partners, businesses can navigate this regulatory change while maintaining healthy cash flow and financial stability.
Contact Sanford Finance today:
Our Sydney-based team is ready to provide expert guidance on financing solutions and strategic planning to help your business stay ahead of these important changes. Book a consultation today to ensure your business remains financially resilient in the face of evolving tax regulations.
This information is general in nature and should not be considered as specific financial or tax advice. Tax laws and regulations are subject to change, and individual circumstances may vary. Always consult with qualified professionals before making financial decisions.
