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A subsidy of $1,500 per fortnight per employee, administered by the ATO, will be paid to businesses that have experienced a downturn of more than 30% (50% for businesses over $1bn).  To be a part of the subsidy, employers will need to ensure that their employees receive at least $1,500 per fortnight (before tax). See the example below. Eligibility There are two levels of eligibility; for employers and employees. Eligible...

The Government yesterday released a second, far reaching $66.1 bn stimulus package that boosts income support payments, introduces targeted changes to the superannuation rules, provides cash flow support of up to $100,000 for small business employers, and relaxes corporate insolvency laws.   The stimulus measures are not yet legislated. Parliament will reconvene on Monday 23 March. The Prime Minister has warned that there are no “quick solutions” and that business...

CLARIFYING CAR EXPENSE CLAIMS If you are claiming a deduction for using your own car (including a car you lease or hire), it is treated as a car expense. If you use someone else’s car for work purposes, you may be able to claim the direct costs (such as fuel) as a travel expense. If the travel was partly private, you can claim only the work-related part. When you CAN...

Disaster proof your finances.You’ve carefully filed all your important documents – but how can you protect them from being destroyed if the worst happens to your home or business? Consider placing originals of important documents and critical records in a fire resistant, waterproof safe or in a safe deposit box with your bank, lawyer or deposit box service. You can also back it up in the cloud or keep an electronic...

Sometimes you need to get some cash in the door quickly, and to do that you have to make sales happen fast.  Here are some proven ways you can get the ball rolling quickly and crank up your sales. 1.  Make an enticing offer to your existing clients or customers, with the aim of getting repeat business and add on sales. If you own a dry cleaning business for example,...

Have you noticed that customer service is losing its way in business these days? Customer service should be at the top of the list of priorities for every business.  Unfortunately, it is often neglected.  Once you realise how customer satisfaction affects your business, you will want to adopt some of the methods below to help keep your customers coming back. Some businesses just don’t seem to care about keeping their...

Before you launch into the process of setting up your own business, consider these suggestions: Is it right for you? It takes more than just a good idea to start a business.  Commitment and dedication are also important because getting your idea off the ground can often involve long hours and many sacrifices – well worth it if you are passionate about your business. You also need to have good...

It goes without saying that a business needs cash flow to keep operating.  If too many customers forget, delay or refuse to pay, your business could end up in serious trouble! Debt collection is an aspect of cash flow management where a lot of businesses underperform.  However, it doesn’t have to be difficult.  If you have the right person for the job and develop a workable protocol, the process of...

Reduce 2015 Tax by Paying Super before 30 June 2015 Although the June 2015 quarter superannuation obligations are not legally due until 28 July, if cash flow permits, business owners should look at paying employee super before 30 June (next Tuesday) in order to receive a tax deduction in the 2015 income year. Note that the super payments must be cleared from your bank account. You (or your bookkeeper or...

Individuals Temporary Budget Repair Levy. Adds 2% to the tax rate for every dollar of a taxpayer’s annual taxable income over $180,000 Increase in the Medicare Levy from 1.5% to 2% Superannuation Guarantee charge increases from 9.25% to 9.5%. Aged care reforms introduce new assets tests for resident’s accommodation and care fees Changes to the way the Private Health Insurance (PHI) rebate is calculated requires extra information from individuals for...

Employers can expect a renewed focus from the ATO on superannuation guarantee (SG) payments made to employees. With the SG rate increasing from 9.25% to 9.5% on 1 July 2014, employers will need to make sure that payments are made on time and that the calculations are accurate. Just be aware that the increase in SG should not necessarily reduce the take home pay of employees. In many cases employee contracts...

The ATO continues to enjoy a high success rate challenging the treatment of contractors under the superannuation guarantee (SG) legislation. Despite recent comments made by the Government that the ATO should ‘relax’ its approach to contractors, the ATO has no reason to simply walk away from such a potentially lucrative revenue stream – why would they when the law is on their side? As there is no real time limit...

Ok, no one likes housekeeping. But for business, July is the month you need to make sure you have properly closed off the last year and can start the New Year the right way. Here is the essential checklist to prevent last year overflowing into this year: Reconcile your GST control account. Does the income declared in your BAS for the last year reconcile to your annual income? Check that...

Easy to use Automatic software updates Automatic Data Back-ups Work on anywhere in the world as long as you have internet access. Decreases need for server upgrades Facilitates & promotes forward-thinking. Facilitates more effective tax planning and forecasting. Works well with other business advisory services. Minimises adjustments or corrections often required when annual financials are prepared. We can gain access to your file at any time in order to assist...

Directors are now personally liable for unpaid superannuation guarantee charge (SGC) payments to staff. While initially designed to prevent phoenix company activity, the new laws that applied from 1 July 2012, extend well beyond phoenix company activity (whereby the assets of a struggling company are transferred to a new business, leaving behind debts, tax bills and unpaid employee entitlements). The new law extends the director penalty and estimates regime beyond PAYG...

Each year, employers must provide Employee Payment Summaries to Employee by 14 July and also send an Annual Payment Summary Annual Report to the ATO. In the past, employers have been able to lodge their annual report using disks or flash drives. The ATO are closing this service and employers will now need to lodge Payment Summary Reports online. In order to lodge online, employers will need an AUSkey. This protects the...

There’s four key things that all business owners MUST consider RIGHT NOW. Two of them are brilliant wealth creation ideas. Please read on! 30 June is only 8 weeks away so we need to make the most of the time we have for tax planning. Too often, we end up suffering because we have procrastinated and not made a positive decision to do something. If we all leave your tax planning...

Trust Distributions Resolutions needed BEFORE 30th of June, 2014 – or pay up to 46.5% tax. If you have a Family Trust (also known as a Discretionary Trust) YOU NEED TO READ THIS! From the 2011/12 financial year, Trustees who distribute the income of a Trust through a resolution to beneficiaries must do so BEFORE the end of the financial year (June 30 for most of our clients) for the resolution...

How would you like to legally reduce your tax by $500 or $1,000 or $5,000 or more? Here’s how to do it: The Strategy behind Tax Planning The tax you pay depends on your taxable income (all assessable income less allowable tax deductions), and the tax rates that apply to that income. Therefore, your tax is reduced if you: 1. Reduce your income, or2. Increase your tax deductions. Seeing we all want to earn more, reducing...

Everyone is talking about self-managed super funds or “SMSF’s” these days.  Recent changes to the laws for operating SMSF’s have in our opinion made them an option that every one of our client’s needs to consider. Very simply, a SMSF is a super fund that you fully control.  You make all the investment choices – including shares, managed funds, property, and cash. SMSF’s can now borrow from a bank to...

Pay off your home loan sooner, minimise bad debt and maximize your tax deductions for investments. Debt optimisation (sometimes referred to as “Debt Recycling”) is a financial strategy which creates wealth over time and improves an individual’s debt structure. Achieved, in the majority of cases by: Using all surplus income to reduce the home loan (non-tax deductible “bad debt”); Creating or increasing investment debt (tax deductible “good debt”) by drawing...

The ATO is sending out letters this month to building and construction industry businesses, reminding them that the 2013/2014 Taxable payments annual report is due by 21 July 2014. Businesses affected are those that: Are primarily in the building and construction industry. These are businesses that have any of the following characteristics: –    50% or more of business income is derived from providing building and construction services in2013/2014 –    50% or...

You are a business person. You’ve got a fantastic product / service to offer to the world.  While you are busy doing so, let your trusted accountant get you started on the right foot. There is a fairly long list of things that an accountant could be handling for you, but let’s cover the basics. Well begun is half done.  Having your financial systems set up correctly from the get...

There are never enough hours in the day.  No small business owner, can do everything alone, and do it well.  There will come a time when you may decide that its’ time to bring in some help.  The best place to start, is to hire a bookkeeper to manage perhaps the most important part of your business;  The money.  Without properly managed cash flow, good credit produced by timely payment...

On 27 March 2014, the ATO announced “Project DO IT: disclose offshore income today”, focussed on taxpayers who earn income from overseas sources and have foreign assets. As part of this project the ATO will provide an opportunity for taxpayers to make voluntary disclosures until 19 December 2014 in return for reduced penalties. The ATO notes that its ability to detect undisclosed foreign income is increasing and it will soon automatically exchange tax information with a greater number of...

Don’t make a mess of your revenue! Why you should be hiring an accountant to set up your business accounting software. Just as you hire a dentist to clean your teeth and a mechanic to fix your car, you should really plan to hire a professional to set up the accounting software for your business. Here are a few reasons why: 1. An accountant knows more than you do about...

Let’s face it, when you are running a business, there are some things that you’d just rather not get bogged down with. You don’t want to be tied to your desk. Accounting has got to be at the top of that list. Plenty of famous and very wealthy people have said, “Hire people who play at what you have to work at!”  Whether you hire someone to handle your finances,...

Tools.  Where would we be without them?  Our ages and cultures have been defined by our tools since the beginning of time.  (I have a hard time imagining someone brushing dust from a smartphone or Google glasses, but perhaps the cave people thought the same thing about their wheel?) When you are running a business, tools are what make your world go round on a daily basis.  Perhaps the most...

Have you ever missed a credit card payment by accident? Have you ever lost mobile phone bill in a pile of mail on your desk? Beginning in 2014 these oversights are going to hurt your chances of acquiring any type of credit that you may be shopping for. 2014 brings major changes to the table. In March a new privacy amendment to Australia’s Privacy Act comes into effect that will...