For mining and resources business owners, end of financial year is no longer just about finalising accounts and signing off on compliance paperwork. The Australian Taxation Office has sharpened its focus on several key areas that directly affect cash flow, governance, and operational risk across the sector.
Interest on tax debts, superannuation timing, fringe benefits, lodgement discipline, and remission processes are all receiving closer scrutiny. For businesses operating in mining services, contracting, operations, and support roles, the common theme is clear: delays, weak systems, and administrative gaps are now more costly and harder to correct.
Below is a practical overview of the top five ATO focus areas mining and resources business owners should be reviewing before 30 June, and what action may be required.
1. ATO interest is no longer deductible
From 1 July 2025, General Interest Charge (GIC) and Shortfall Interest Charge (SIC) incurred on or after that date are no longer tax deductible. [i]
In the past, ATO interest was an unwelcome cost, but it was at least partially softened by a tax deduction. That is no longer the case. Any GIC or SIC incurred from 1 July 2025 is a direct, after‑tax cost to the business.
Importantly, this change applies regardless of which income year the underlying tax debt relates to. What matters is when the interest is incurred. GIC generally accrues daily on unpaid liabilities, while SIC is typically incurred when an amended assessment is issued. This means even short delays in payment, where funds are available, can now result in a permanent cost.
What does this look like in real terms?
For the March 2026 quarter, the ATO’s GIC is 10.65%, increasing to 10.96% for the June 2026 quarter. The Shortfall Interest Charge is lower, at 6.65% for the March quarter and 6.96% for the June quarter.
Because GIC and SIC are no longer tax deductible from 1 July 2025, the effective cost to a business is materially higher. For many companies, once you factor in the loss of the tax deduction, the after‑tax cost of carrying ATO debt can be equivalent to an interest rate of around 18%, depending on the entity’s tax rate and circumstances.
These charges accrue daily, meaning even short delays in payment can now result in a permanent and compounding cost.
Why this matters for mining and resources businesses
Businesses in this sector often manage large, irregular cash flows, multiple entities, and significant PAYG, GST, and income tax obligations. Carrying ATO debt into the new financial year, relying on payment plans as a short-term funding tool, or simply paying late due to administrative timing issues are now materially more expensive.
What to consider now:
- Review outstanding ATO balances and payment arrangements.
- Ensure systems and processes support on time payment, even where cash is available but approvals or administration cause delays
- Forecast BAS, PAYG instalments, and income tax liabilities earlier than usual.
- Compare the real after‑tax cost of ATO interest with alternative funding options.
2. Payday Super is approaching and preparation should start now
From 1 July 2026, employers will be required to pay superannuation guarantee contributions on payday rather than quarterly. Contributions must generally be received by the employee’s super fund within seven days of payday, subject to limited exceptions. [ii]
While the start date is a few months away, the operational impact for mining and resources businesses is significant. Payday Super is not simply a change in due dates. It affects payroll systems, cash flow timing, onboarding processes, and error management.
Related to this, are changes to the superannuation guarantee arrangements. Currently employers have a quarterly obligation to make superannuation arrangements, with a quarterly cap on which employers must, at a minimum, contribute the minimum 12% super contributions. From 1 July 2026 this becomes an annual cap. If you employ high income earners where the quarterly cap was reached, you are now required to pay 12% on earnings until they reach the annual cap. This will result in your superannuation payments being higher earlier in the financial year for those you employ.
Key implications for employers
- Super will align with each pay cycle, whether weekly, fortnightly, or monthly.
- Clearing house processing times become critical, as contributions must be received by funds within the required timeframe.
- Single Touch Payroll reporting will expand to reflect the new framework.
- Superannuation costs for high income earners may be incurred earlier in the financial year due to the move from quarterly to annual contribution caps.
For businesses with large or mobile workforces, multiple payroll cycles, or site‑based staff, the margin for error will be smaller.
What to consider now:
- Map payroll and super processes end to end.
- Review clearing house arrangements and processing timeframes.
- Assess cash flow impacts from moving away from quarterly super liabilities.
- Identify data risks, particularly for new starters and off‑cycle payments.
- Early preparation reduces the risk of missed payments and penalties once the new regime commences.
3. Motor vehicle FBT remains a high‑risk area
Motor vehicles continue to be one of the most common sources of Fringe Benefits Tax exposure. Where an employee has private use, or access for private use, FBT may apply and must be calculated using an approved method supported by appropriate records.
Recent changes have added further complexity, particularly for mining and resources businesses that provide vehicles as part of remuneration packages or site‑based roles.
Plug‑in hybrid electric vehicles (PHEVs)
From 1 April 2025, plug‑in hybrid electric vehicles generally no longer qualify for the electric car FBT exemption unless specific transitional conditions are met. These conditions require that the vehicle was in use, or available for use, before that date and that a financially binding commitment continues without change. [iii]
What to consider now:
- Review vehicle policies and salary packaging arrangements.
- Confirm logbooks, odometer records, and usage documentation are current and defensible.
- Reassess any PHEV arrangements entered into before April 2025.
- Confirm FBT registration and lodgement obligations are being met where required.
- For businesses with fleets or multiple site vehicles, small documentation gaps can quickly scale into significant exposure.
4. Lodgement discipline is more important than ever
The Failure to Lodge on Time (FTL) penalty regime is well established, but its financial impact is often underestimated.
FTL penalties accrue based on penalty units for each 28‑day period a lodgement is overdue, subject to caps and multipliers depending on the size of the entity. These penalties apply regardless of whether tax is ultimately payable or refundable. [iv]
For mining and resources business owners managing multiple entities, trusts, or joint ventures, late lodgement can compound other risks, particularly when combined with non‑deductible interest.
What to consider now:
- Confirm which returns, BAS, and statements must be lodged before and immediately after 30 June.
- Engage early if records are incomplete or information is delayed from site or project teams.
- Use registered tax agent safe harbour provisions where available.
- Prioritise lodgement even if payment cannot be made in full.
- Lodgement preserves options. Late lodgement removes them.
5. GIC remission requests are now more structured
The ATO has updated its approach to remission of interest and penalties, introducing more formal processes and new standardised forms. [v]
Requests for remission of GIC, SIC, or FTL penalties now require clearer documentation, including:
- The specific circumstances that caused the delay.
- How those circumstances prevented timely lodgement or payment.
- Steps taken to mitigate the issue.
- Supporting evidence where relevant.
- With GIC now non‑deductible, unsuccessful remission requests carry greater financial consequences.
What to consider now:
- Treat remission requests as formal submissions, not informal requests.
- Ensure explanations are factual, specific, and supported by evidence.
- EOFY checklist for mining and resources business owners
Before 30 June, mining and resources businesses should also ensure:
- Trust distribution resolutions and dividend minutes are prepared and executed on time.
- Superannuation contributions are paid early enough to be received by funds before cut‑off dates.
- Motor vehicle and FBT arrangements are reviewed for accuracy and compliance.
- ATO liabilities and cash flow projections reflect non‑deductible interest exposure.
- All required lodgements are scheduled, monitored, and prioritised.
Final thoughts
For mining and resources business owners, the ATO’s current focus areas share a common message: compliance discipline now has a direct and measurable cost. Interest is no longer softened by deductions, payroll obligations are tightening, and remediation pathways are more formal.
The most effective EOFY strategy is proactive planning. Addressing these issues earlier in the year, rather than in late June, creates options and reduces risk. To discuss how these EOFY considerations affect your mining or resources business, contact Brooke Stockwell on +61 (0) 7 3007 2000 or email contact@resourcesunearthed.com.au.
ATTENTION: BUSINESS OWNERS
NOW is an important time for mining and resources business owners to consider whether their current business and ownership structures remain fit for purpose. Changes in profitability, growth, succession plans, asset ownership, or risk profile can all impact whether existing structures continue to provide appropriate tax efficiency, asset protection, and commercial flexibility.
If you would like to review whether your business structures remain appropriate heading into the new financial year, get in contact with our team today.
For more information about Brooke, please click here.
Resources Unearthed is a solutions hub that provides integrated financial, legal, property and accounting and business advisory services for executives, professionals and business owners in the mining and resources sectors.
This information is general and does not consider your personal circumstances. Professional advice is recommended before making decisions.
[i] Denying deductions for ATO interest charges | Australian Taxation Office
[ii] About Payday Super – Superannuation Changes | Australian Taxation Office
[iii] FBT on plug-in hybrid electric vehicles | Australian Taxation Office
[iv] Failure to lodge on time penalty | Australian Taxation Office
[v] Remission of interest charges | Australian Taxation Office
