When your Telco goes down, retail shops can’t operate as usual.

Key Takeaways

• Telstra says its higher fees are due to better network reliability.
• Many businesses using Tyro EFTPOS terminals were affected during the 8 July 2026 outage.
• More than 300 Triple Zero calls did not go through during the outage.
• EFTPOS systems with backup connections provide retailers with important protection against outages.

Telstra recently had a major outage. For many retailers, the biggest problem was that their EFTPOS machines stopped working. Tyro, a leading EFTPOS provider, confirmed its network was hit during the disruption.

For a retailer, typically losing EFTPOS access can mean sales drop by half.

Another issue was that many businesses lost the ability to communicate.

Most of us know that Telstra charges more than other telcos. When asked, they usually say it’s because their network is more reliable and covers more areas. For businesses, this can seem worth it because we rely on steady communication. Telstra also said its recent price increases would help pay for better networks.

But after this outage, it’s fair to question whether those reasons still make sense, especially given the high bills and lost sales.

Clearly, Telstra is not infallible despite premium pricing built on the promise of reliability. A quick glance at monitoring services like Downdetector shows localised faults are reported regularly.

Last Wednesday's failure, however, was not a small localised fault. It halted Victoria's V/Line regional trains and disrupted traffic lights across multiple states. Most seriously, Telstra confirmed that over 300 Triple Zero calls were logged but unsuccessful.

I suspect that this failure will cost Telstra heaps.

Action at Renewal Time

When your contract ends, ask around and get quotes from different providers. Don’t just take claims of better reliability at face value; ask what happens if the service fails. Keep in mind that a lower price doesn't always mean better protection, so compare your options carefully.

Some EFTPOS providers we handle include premium backup features which, at no cost to you, allow you to use your EFTPOS terminal when your internet or mobile network goes down. This means that you can still process transactions and avoid missing sales.

The Telstra outage in July 2026 showed that even a claimed premium service can fail without warning. Retailers pay more for peace of mind, but in this case, it often meant a higher bill with no extra protection.

PS POS Solutions once took Telstra to court over overcharging. We won about $40,000.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

The best figures to use for benchmarking are always your own past results, whether from last month, last quarter, or last year. Still, looking at other people’s numbers can help you spot issues you might miss. The ATO’s newsagent benchmarks are the most useful and affordable option for this. The ATO has access to more data and resources than anyone else, and these are the figures they check first if they investigate your business. This guide will explain what these benchmarks are, how the ATO creates them, and how your POS system can help you use both your own data and the ATO’s figures together.

Key Takeaways

• Your own historical trading figures remain the single most reliable benchmark for your specific newsagency.
• ATO benchmarks are recent national averages derived from tax returns and are useful as a secondary point of comparison.
• Use the product mix to determine whether low-margin print sales are supported by higher-margin categories such as gifts and books.
• A POS System helps you track your own figures accurately.
• Your own figures are the real foundation of good decision-making.

What Are ATO Benchmarks?

ATO small business benchmarks are financial ratios derived from the tax returns of thousands of similar businesses across Australia. What is helpful is that the ATO groups this tax return information by turnover and then calculates average ranges for costs like stock purchases, rent, and total expenses, making it relevant to you. ATO Benchmark figures are available on their website.

The latest figures are for the 2023–24 income year and are up to date, but keep in mind they do not reflect real-time trading conditions. Before you use any of this information, I want to be clear about my own view. The most meaningful benchmark is your own data, tracked over time, because it truly reflects your business. Other people’s figures, like the ATO averages, are helpful, but they should only be a second opinion.

Your Figures Are Best

There is solid research behind this. Studies from Australian banks and the US government show that individual businesses often do not follow the same trends as their wider market. For example, while bookshops overall might be struggling, I know many bookshops using our POS system that are actually doing well.

Your own trading history is the most reliable benchmark because it reflects everything unique about your business. No outside average can show your specific lease, your local competitors, or your regular customers’ habits. If your cost of sales has stayed at 52% for three years, that steady number tells you more about your business's health than any national average.

Tracking your own numbers over time shows trends that outside data cannot. For example, if your cost of sales jumps from 50% to 60% in one quarter, that is a much clearer warning than just being a bit outside the ATO range. If you see your rent-to-turnover ratio slowly rising over two years, you have time to renegotiate your lease before it becomes a problem.

However, if you only look at your own numbers, you might miss something important. It can be hard to know if a slow change is normal for your shop or a sign of a problem. That’s why it’s still useful to check other people’s figures, even if they are not your main focus.

Deriving and Using Benchmarks

The ATO works out these figures using tax returns from businesses that are properly listed as newsagencies. They leave out businesses like post office agencies or delivery contractors, so the averages are more accurate for real retail shopfronts.

Other people’s figures are valuable because they let you double-check your own trends. If your numbers seem fine but are far outside the ATO range, that’s a good reason to look more closely.

Calculating Cost of Sales

Cost of sales to turnover means the percentage of your sales that goes toward buying the stock you sell. You work it out by dividing your cost of sales by your turnover, then multiplying by 100. This number does not include rent, wages, or other overheads. For example, if you buy $100,000 of magazines and gifts and sell them for $200,000, your cost of sales ratio is 50%.

For 2023–24, newsagents with sales between $65,000 and $500,000 usually have a cost of sales between 42% and 59%. Those with $500,001 to $1,000,000 in sales are in the 47% to 62% range, and those above $1,000,000 are in the 55% to 81% range. Use these as a reference alongside your own yearly trend. If your cost of sales is always around 58% and the benchmark for your group is 47% to 62%, that steady result is a good sign, even if you are near the top.

You can find your own historical figures in your Point of Sale (POS) system. Run a rolling 12-month report from your POS software and compare it to the ATO ranges to see if you are deviating from your own trend.

Have your cost of sales, rent ratio, or total expenses changed a lot from your usual pattern? A sudden shift is a stronger warning than any comparison. After you have checked your own numbers, use the ATO figures as a second check. If your numbers are above the ATO range, it could be due to unrecorded sales, heavy discounting, supplier price rises, or stock losses. If both your own numbers and the ATO range show a problem, you should look into possible stock losses right away.

Remember, the ATO benchmarks do not prescribe an ideal mix; they reflect what similar businesses to yours report.

If your numbers are below the ATO range, it often means you have higher markups or a more profitable product mix. In my experience, it can also mean some costs were recorded differently than the ATO categories. Check this carefully. It does not mean there is a problem; it might just show you run your business efficiently. A newsagency that stays below the benchmark for years probably has a strong range of high-margin gifts and cards.

Comparing Other Expense Ratios

Total expenses to turnover includes all your business costs, like rent, wages, and utilities. As with cost of sales, compare this to your own history first, then check the ATO range.

Rent to Turnover

Rent is often your biggest fixed cost. Watching your rent ratio over time can reveal lease issues before the ATO comparison does. If your rent is much higher than usual, ask yourself if it is worth it and investigate why it has changed so quickly. Sudden increases flag inefficiency fast.

Why Product Mix Matters

Product mix means how much each category, like print, lottery, cards, stationery, and gifts, contributes to your sales. Watching how your mix changes over the years tells you more about your business’s direction than any outside average. For example, if gifts and cards have grown from 20% to 40% of your sales in three years, that is real progress.

How POS Systems Help

A good Point of Sale (POS) system lets you track your own figures, which is why I think it is more useful day-to-day than any outside benchmark. It records every sale and builds a history you can use as your main comparison tool. By checking your POS dashboard each month, you can spot changes in your cost of sales before they show up on your yearly tax return.

POS also helps you investigate any gap you find against the ATO figures. You can pull reports on gross margin dollars, stock turn, and dead stock by category and supplier to understand exactly what is driving a number. Your POS might reveal that your cards category consistently outperforms your historical average, which is worth expanding on. For more on this, check out our POS reporting guide.

You should begin by getting your own 12-month trends for cost of sales, rent, and total expenses from your POS system and your accountant. This is your main benchmark. Once you understand your own pattern, compare it to the ATO ranges. If you see a gap, that is your cue to look into it further and investigate.

Your Own Numbers First

To sum up, your own figures, tracked over time, are the most important benchmark for your newsagency. The ATO’s latest numbers are still helpful as a second opinion, but they are just a general guide, not a rule made for your business. Use both, rely on your POS system to keep your data accurate, and you will make better decisions than if you use only one source.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

You are likely missing out on revenue by ignoring the foot traffic generated by the anchor shop next door. Use the Woolworths Effect to turn someone else's marketing budget into your own advantage.

Key Takeaways

• Anchor stores are the major traffic drivers in your shopping centre.
• The Woolworths Effect provides highly predictable footfall.
• Point-of-sale reporting reveals the effect.
• Complementary merchandise often captures passing shoppers.
• Seasonal planning helps.

What Is the Woolworths Effect?

The Woolworths Effect is the sales boost a retailer experiences when an anchor store attracts more shoppers to the shopping centre. It's a piggyback effect. It delivers customers who are already in a buying mood directly to you, increasing your retail revenue without expensive advertising. *For example, a retailer might spend millions on television ads, so bringing many passing shoppers past your shop. Just a tiny fraction of these passing shoppers can significantly boost your profits.

You monitor their business closely by tracking their promotional calendars and recording exactly when the crowds arrive. Often, you must step outside your own shop and observe what the big store is heavily promoting to the general public.

Your POS System can often show the Woolworth's Effect by clearly showing how your sales change during these promotions.

How Do You Mirror or Complement Supermarket Offers?

Now, when you see such a promotion, try to complement their offers by selling these or related items. Ask yourself what people are coming into that shop for, and what you could sell those same people as well on that shopping mission. For example, if the anchor is pushing cheap back-to-school pencil sets, you must feature higher-quality school diaries and study guides.

Often, a good idea is that instead of competing directly, match their campaigns with smart complementary offers:

• When they sell cheap pencil sets, you feature premium diaries and study guides to help kids get ready for class.
• When they sell discount boxed chocolates, you feature high-quality greeting cards and books for a quick Mother's Day gift.
• When they sell bulk party food and drinks, you feature helium balloons and premium gift wrap for weekend family gatherings.
• **Look at your POS System as it is showing what is selling now well in this promotion.

What Are Your Next Steps?

Your next step is to set up a small in-store display tied perfectly to the anchor's campaign. Try it for just a week or two. For example, place a premium BBQ accessories table at the front of your store when the supermarket pushes summer meats.

Your POS System will show you if it actually worked.

If it did, document this promotion in your diary for next year, as most anchors repeat promotions the following year. Then you can be prepared next year.

Conclusion

The Woolworths Effect proves you can quickly turn your biggest competitor into a source of free foot traffic.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Well, it's that time of year again, the end of the financial year, when we start to look at the books again.

Our POS systems do not require a special backup or a specific time to run EOFY reports. This means you have plenty of flexibility to fit this into your schedule. The only reason to run them immediately is if you want to clean up your books.

Essential Financial Statements

Your accountant will need specific statements to prepare your business accounting and taxes. Be sure to ask them exactly what they need and which date ranges they require. The essential reports generally include:

• Profit and loss statements
• Balance sheets
• Cash flow statements (if you use them)

I suggest printing these in detail so you have the data to support your figures. Do not worry if it seems like too much information; I have never heard an accountant complain about receiving too much detail.

For the tax-savvy, review these reports and look for opportunities to write off any damaged stock or bad debts. Highlighting these items makes it easier to discuss potential tax deductions with your accountant.

Key EOFY System Reports

• Sales reports: These provide the totals of your various revenue streams.
• Stock valuation: Generate this after your stocktake to get a comprehensive picture of your current inventory levels, which is crucial for managing diverse categories such as books, greeting cards, and gifts.
• Accounts receivable (debtors): This highlights your customers' total debts, unpaid invoices, and outstanding balances.
• Accounts payable (creditors): If your software tracks creditors, this shows the total amount of outstanding payments you owe to suppliers or vendors.

System Functions and Webinar Training

Our team has prepared a video from a recent webinar that delves into the intricacies of EOFY reporting with our POS software. From dissecting each report to answering your burning questions, this webinar is a must-watch for understanding how to use helpful system functions.

I think you will find that reviewing these reports will show many insights and give you ideas for your business. If you need any extra help, give us a call!

Of course, if you need more help, give us a call.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

The End of the Financial Year (EOFY) can create timing issues that come back to bite years later—this year, it’s tomorrow.

The Perils of EOFY

Here's the potential snag: some businesses close their books on Tuesday night, while others finalise them the next morning. This creates timing differences, where the same transaction can be recorded in different financial years by different organisations.

This means invoices, credit notes, and payments may not align. Add Australia Post delays or processing delays, and important documents might not appear in your records until after EOFY. As a result, your figures may not match those of your suppliers or customers.

This may become a problem during an ATO audit. The ATO may compare your records with other businesses and ask why the figures differ. Since audits often occur years after the fact, it can be difficult to explain what caused the discrepancy. You end up trying to reconstruct events you barely remember.

We experienced this firsthand. A supplier issued a credit note to us just before EOFY, but we didn’t receive it until a few days later. During an ATO review, that timing difference worked against us, and it ended up costing us. The ATO argued that we should have known about the credit note in the previous financial year.

Taking Control

You can reduce the risk of these issues with a few simple steps:

• Ensure your POS and accounting systems can clearly explain your figures if needed. Putting notes in can be a big help.
• Contact suppliers now if there are large or outstanding amounts.
• Start chasing missing invoices and credit notes.
• If timing cannot be resolved, get written confirmation (email is ideal).
• Where possible, delay closing your EOFY slightly to allow final documents to come in.

One advantage of our POS system is that it allows adjustments after EOFY, so you can continue processing and correcting entries as information arrives.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

For SMBs, there is little in the budget of2026/7, which looks like a grab for money.

Key Takeaways

• The 2026/27 financial year for SMB retailers is a cost reset driven by higher wages, 12% super, and tighter cash flow.
• Retail Award wages rise by 4.75% from 1 July 2026.
• The National Minimum Wage increases to $26.44 per hour.
• The Superannuation Guarantee is now payable within 7 days, placing greater pressure on payroll.

How Much Will Wage Rises and 12% Super Cost SMB Retailers in 2026/27?

Award wage increases raise payroll costs and also increase super costs because super is calculated on eligible earnings.

What will really hurt our cash flow is that this super must be paid within 7 days.

Super Calculation Formula Changes

I suggest that you use a computer program or accounting software to calculate superannuation, as the formula is changing.

Conclusion

There are some other changes to the accounting rules, but I suggest you discuss them with an accountant.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

EOFY is almost here, 6 days to go, and soon, the best POS hardware deals of the year will be unavailable. If you've been sitting on a slow or ageing checkout setup, this is your window to fix it at a better price.

Key Takeaways

• EOFY supplier discounts on POS hardware are only available until 30 June.
• Retailers who upgrade now can claim the purchase this financial year.
• Limited stock means deals disappear once suppliers close out the month.
• A modern POS system reduces checkout headaches and daily retail friction.

Why Are EOFY POS Deals Available Right Now?

POS Suppliers now want to clear warehouse stock before the financial year closes; they need money now, and they would rather get rid of it than count it. That pressure works in your favour. We've negotiated directly with our technology partners to bring you current POS equipment at sharp EOFY pricing, deals that won't be available soon due to limited stock.

Is It Worth Upgrading Your POS System Before 30 June?

For most retailers, yes. Upgrading before 30 June will allow you to claim the purchase as a business deduction in this financial year. That is a potential double benefit: an upfront discount on the hardware, plus better equipment.

Beyond the financials, if your current setup is slow, unreliable, or causing headaches at checkout, carry that problem into the new financial year.

What POS Hardware Is on Sale?

We have included information about selected POS hardware and upgrade packages in our newsletter. If you have specialised needs we maybe able to help you too. Stock is strictly limited to what our suppliers have on hand, and once it's gone, I doubt we can offer these prices to you again.

Act Before the 30 June Deadline

These deals close when the financial year does. If you've been putting off a hardware upgrade, now is the time to get it sorted.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Readers here already know that the temporary Armaguard bailout that has been keeping Australia's cash-in-transit network afloat expires on 30 June 2026. Less clear is exactly how the incoming new pricing model will affect us after that. 

Key Takeaways

• A cash-in-transit crisis is a severe disruption to Australia's physical cash collection network that threatens to raise retail costs.
• Utility-style pricing will charge businesses based on distance, severely impacting independent retailers across regions.
• Point-of-sale (POS) systems provide the exact tender-mix data needed to forecast your margin exposure.
• Financial auditing of your recent bank statements reveals your current baseline cash expenses before new fees apply.

What Is the Cash Crisis?

Australia's cash-in-transit crisis, spoken about here, is the financial instability threatening the cash infrastructure that collects, transports, and processes cash. Currently, the dominant provider, Armaguard, relies on a temporary bailout to keep its armoured trucks running. Armaguard funding arrangements officially end on 30 June 2026. We now know that new funding models will shift the financial burden directly onto end users, which is confirmed and will soon start. The inevitable cost increases for retailers begin soon.

Why the Cash Crisis Matters

The cash-in-transit crisis matters because it will fundamentally alter the cost of doing business for retailers that accept cash. Major supermarket chains will leverage their massive daily volumes to negotiate better cash contracts, leaving smaller players exposed. Up to now, regardless of size, independent retailers have been able to compete equally with the majors on cash handling.

Furthermore, regional businesses face an extreme risk under the new model. If distance-based pricing takes effect, this will accelerate the current increases in banking charges for manual cash deposits that the industry is quietly seeing.

Tracking Cash With POS Systems

The first point is to get real figures for what you are banking. Review the bank deposit reports in your POS system to see exactly how exposed your business is to cash transactions today. For example, knowing that cash makes up exactly 12% of your weekly revenue gives you the hard data needed to forecast your vulnerability to rising bank fees. Once you have the exact cash figures from your POS reporting, you should approach the bank. Sometimes, the banks can help you restructure your deposit schedules or even waive certain fees. You will not get them unless you approach them proactively.

Conclusion on Cash

We may need to rethink our payment types for our business soon.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.