Green Taylor Partners

Inherited assets & CGT: what to know before you sell

Tue, 05 May 2026 23:47:49 GMT

It’s common to inherit land, shares or other investments and assume there won’t be any tax to think about. While inheriting an asset usually doesn’t trigger capital gains tax (CGT) straight away, CGT can become an issue later—particularly when you decide to sell.

What affects the CGT outcome?

· When the deceased originally acquired the asset (especially whether it was before or after 20 September 1985 ).

· What the asset is (a home, an investment property, farmland, shares, a business asset, etc.).

· Whether it was ever used to produce income (for example, rented out) or used in a business.

· Who owned it and how (for example, owned jointly, or inherited through multiple generations).

Questions we commonly ask (because the answers can change the result):

· When did the deceased buy the asset? (And was it inherited from an earlier estate?)

· Was the asset originally purchased with someone else (for example, a spouse or sibling)?

· Was the asset used in a business (and could any small business CGT concessions apply)?

As a general rule, there’s usually no CGT event when you inherit an asset . However, if you sell the inherited asset later, CGT may apply—and the calculation often depends on when the deceased acquired the asset and how it was used .

If the inherited asset is a home: the main residence exemption may still apply after the owner’s death, but it can depend on things like when the deceased moved out, whether the property was rented, and who lived in the property after death.

Cost base (the starting point for CGT): for many inherited assets, your cost base will depend on whether the deceased acquired the asset before or after 20 September 1985 . In broad terms, if the asset was owned by the deceased before that date, the cost base is often the market value at the date of death . If it was acquired after that date, the cost base is generally carried over based on the deceased’s position (with adjustments in some cases). Where the asset is connected to a business, small business CGT concessions may be relevant.

If you’re thinking about selling something you inherited, it’s worth getting advice early—before contracts are signed—so we can confirm what records you’ll need and what the CGT position is likely to be.

Possible changes to Capital Gains Tax

Thu, 30 Apr 2026 00:11:59 GMT

It is Federal Budget night on May 12 and even though you may not be an excited accountant or tax agent counting down the days, if you are an investor, it is likely there will be changes announced which will impact you.

The change which is likely to be unveiled will be the Albanese Government’s approach to capital gains tax, targeting mainly share and property investors, but will also impact business owners who sell business assets.

It is likely the Albanese Government will re-introduce an inflation indexation model for calculating capital gains tax.

This proposed change has gained more traction in the media over the last few weeks.

Currently, individual taxpayers and trust beneficiaries are able to reduce their capital gains tax on the sale of any capital investment by 50 per cent, providing this investment has been owned for at least 12 months. Please note – superannuation funds receive only a one-third discount.

For an individual, this means half the gain is tax free, the remaining half of the gain is taxed at the taxpayer’s marginal tax rate.

This discount system on capital gains has been in place since 1999.

Capital gains tax (CGT) was introduced in 1985 and is applied to realised gains and losses on assets acquired after 19 September 1985. If an asset was purchased prior to the introduction of CGT, then it is exempt from CGT when sold.

From 1985 to 1989 an indexation system was used where inflation factors were applied to the original cost, so only the “real/after inflation” gain was taxed.

At this stage there has been no indication whether the changes, if introduced, would be grandfathered, to spare existing investors from any initial pain.

Keeping Your Car Logbook Simple and ATO-Compliant

Wed, 15 Apr 2026 01:14:20 GMT

Keeping a car logbook is an important part of managing your vehicle expenses, especially if you’re looking to maximise your tax deductions and GST claims or reduce your FBT liability.

The Australian Taxation Office requires you to keep a logbook for a minimum continuous period of 12 weeks to establish your business-use percentage. Each trip should include the date, start and end times, kilometres travelled, and the purpose of the journey.

Your logbook needs to reflect your typical vehicle use and can generally be relied on for up to five years, as long as your usage doesn’t significantly change. You’ll also need to record your vehicle’s odometer readings at the start and end of each FBT year and financial year.

For many small business owners and tradies, keeping a car logbook is necessary but often pushed aside during busy workdays. Manually recording trips can be time-consuming, and it’s easy to forget details after the fact.

There are now several apps available that reduce the manual effort of keeping a logbook. One we often recommend, which complies with ATO requirements, is Driversnote.

Driversnote is designed to simplify the process by using GPS tracking to automatically record trips. This helps ensure journeys are logged consistently without relying on manual entry.

Trips can be easily categorised as business or personal, and the app generates reports that align with ATO logbook requirements. This can make it easier to stay organised and provide accurate information at tax time.

The app also stores data securely and keeps a history of trips, which can be useful if you ever need to review your records.

For those who regularly use their vehicle for work, tools like Driversnote offer a practical way to maintain a logbook without the usual hassle—helping keep everything accurate, organised, and in one place.

If you’re unsure whether a logbook is right for your situation, contact us— one of our team can help you work out the best way to track your vehicle use and ensure your records are accurate for FBT and tax time.

Extension of instant asset write off

Tue, 07 Apr 2026 23:30:41 GMT

The Federal Government has once again extended the $20,000 instant asset write-off , providing continued support for small businesses looking to invest and grow.

Under the latest legislation, eligible businesses can access the $20,000 threshold for assets first used or installed ready for use between 1 July 2025 and 30 June 2026 .

This extension means businesses can continue to immediately deduct the full cost of qualifying assets, rather than depreciating them over several years.

How the write-off works

The instant asset write-off allows small businesses with an aggregated turnover of less than $10 million to claim an immediate deduction for assets costing less than $20,000 (excluding GST). The threshold applies on a per-asset basis , meaning multiple assets can be written off, provided each individual item is under the limit.

Eligible assets can include tools, equipment, vehicles (subject to other limits), and office technology. Both new and second-hand assets may qualify, provided they are used for a business purpose.

A critical point often missed is timing. It’s not enough to purchase an asset before 30 June— it must be installed and ready for use by that date to qualify for the deduction.

What happens to assets that are above $20,000?

If an asset exceeds the $20,000 threshold, it cannot be immediately written off in full. Instead, it is allocated to the small business general depreciation pool and depreciated over time.

Under current rules, assets in this pool are typically depreciated at 15% in the first year and 30% in each subsequent year (on a diminishing value basis). This means the tax deduction is spread across multiple years rather than claimed upfront.

Why the extension matters

This measure continues to deliver meaningful cash flow benefits. By bringing forward deductions, businesses can reduce taxable income in the current year, freeing up funds for reinvestment or day-to-day operations.

However, the extension is temporary. From 1 July 2026 , the threshold may revert back to just $1,000 unless further legislation is passed.

This ongoing uncertainty makes forward planning essential so talk to your accountant today to plan ahead.

Fringe Benefits Tax (FBT): What Business Owners Need to Know

Tue, 31 Mar 2026 22:43:01 GMT

Fringe Benefits Tax (FBT) is a separate tax from GST and income tax that applies when a business provides benefits to employees or other associates.

With the FBT year ending on 31 March , now is the time to review any benefits provided over the past 12 months to ensure you remain compliant.

Understanding Fringe Benefits?

A fringe benefit is any non-cash benefit, reimbursement, or expense paid by a business that is provided instead of, or in addition to, salary and wages.

A simple way to think about it is if the business is paying for a personal expense or private use of a business asset, it may be a fringe benefit.

Who FBT Applies To?

FBT may apply where benefits are provided to individuals who are employees or are otherwise associated with the business. This includes:

Employees
Company directors
Associates of employees or directors (including family members)
Trust beneficiaries who are involved in, or connected to, the business

For example, where a director is provided with the use of a company vehicle for private purposes, an FBT liability may arise irrespective of whether the director receives remuneration in the form wages.

For businesses operating through a company or trust structure, it’s important to remember that the business is a separate legal entity . This means personal use of business assets is treated similarly to providing a benefit to an employee.

Important Exception

Sole traders or partnership owners using their own business assets personally do not trigger FBT. However, FBT can still apply if these businesses provide benefits to employees.

Common FBT Areas for businesses

While FBT can apply in many situations, the most common areas we see are:

1. Car Fringe Benefits

If an employee, director or associate uses a company car for private purposes, FBT applies. Even parking the car at home overnight counts as personal use.

TIP - Use the logbook method to track business-related travel and reduce FBT liability.

2. Entertainment Benefits

Providing employees, directors or associates with free meals, drinks, and staff events (such as Christmas parties) may be subject to FBT.

TIP - Limit to under $300 per person for minor benefits exemption, as this threshold deems the value insignificant.

3. Expense Payment Benefits

If the business pays for personal costs on behalf of an employee or associate, this may be considered a fringe benefit.

TIP - It’s important to distinguish between personal and work-related expenses. If the expense is work-related, the employer may be able to classify it as a business expense instead.

4. Housing and Accommodation Benefits

Providing employees with rent-free housing or at a reduced rent can trigger FBT.

TIP - Employers may be eligible for exemptions if housing is necessary for employees in remote areas or living away from their usual place of residence to carry out their duties.

What you should to do

If you believe you may be providing a fringe benefit to an employee, director, or associate, we recommend the following:

Ensure accurate records and supporting documentation are maintained
Complete the annual FBT questionnaire provided by Green Taylor Partners
Provide all relevant information to enable us to assess whether FBT applies and assist you in meeting your compliance obligations

Love, Lies and Loss: Why Romance Scams Are a Business Risk

Wed, 25 Mar 2026 04:10:08 GMT

Romance scams are often seen as a personal problem. In reality, they can expose businesses to fraud, data loss, and serious financial risk.

Romance Scams: Not Just a Personal Issue

Romance scams cost individuals and businesses millions of dollars every year. While the emotional damage is significant, the commercial consequences are often overlooked.

Criminals use social media, dating platforms, messaging apps, and even professional networks to build trust with their targets. These scams don’t discriminate — they affect people of all ages, industries, and seniority levels.

Once a relationship is established, the risk shifts from personal to professional. Employees may be pressured to move money, share confidential information, or bypass internal controls. In some cases, business bank accounts, supplier details, or payroll systems are put directly at risk.

For business leaders, protecting people is part of protecting the business.

Common Red Flags to Watch For

1. It seems too good to be true

Scammers often use attractive or highly polished photos (sometimes stolen or AI-generated ) and move on quickly to declarations of affection or commitment.

2. They avoid face-to-face contact

Excuses may include constant travel, working overseas, military service, or sudden emergencies that prevent meeting in person.

3. A sense of urgency around money

Requests for funds often involve an “emergency” — medical bills, business problems, or travel issues. Once money is transferred, it is usually very difficult to recover.

4. Requests to move to encrypted messaging apps

Scammers often push conversations away from mainstream platforms to avoid detection or account bans.

5. Investment opportunities appear

Victims may be encouraged to invest in cryptocurrency or other schemes. These scams can run for months or even years to build trust and appear legitimate.

6. Being asked to handle payments for someone else

Requests to receive and forward money can unknowingly involve individuals and businesses in criminal activity.

7. Changes in behaviour

People being targeted may become secretive, irritable, or make unexplained financial decisions. This can be particularly concerning in finance, payroll, or senior roles.

Simple Steps to Stay Safe

If you or your team connect with someone online, a few practical checks can significantly reduce risk.

1. Search their photos online

Use a reverse image search to see if profile photos appear elsewhere. Be cautious of images that look overly perfect — some may be AI-generated.

2. Be alert during video calls

Watch for poor-quality video, faces that remain hidden, or visual glitches such as odd blinking, distorted backgrounds, or lips that don’t sync with speech.

3. Search their name with the word “scam”

This simple step can reveal reports on scam monitoring or consumer warning sites.

4. Act quickly if money has been sent

Contact your bank’s fraud team immediately, report the incident to the relevant platform, notify the police, and lodge a report with your national cybercrime agency.

Why This Matters for Leaders

Romance scams thrive on trust, the same trust businesses rely on every day. Creating a culture where employees feel safe to speak up without embarrassment or fear can prevent a personal situation from becoming a business crisis.

‘Why Am I Paying Tax When There’s No Cash in My Bank Account?’: Cash vs Profit

Tue, 17 Mar 2026 02:25:34 GMT

The answer to this question from an accounting perspective is generally to do with the difference between profit and cash.

What is Cash?

Cash is the money available in your bank right now.

Cash is what is used to pay for business expenses such as rent and wages, or to purchase stock or assets. It can also be used to pay personal expenses.

What is Profit?

Profit = Business Income – Business Expenses

Profit is the amount of money left on paper, after all business expenses have been deducted from your sales.

The Difference Between Cash and Profit: Where Did The Money Go?

Even when your business is making a profit, it is still possible to have little cash available in your bank.

Here’s why:

Unpaid Sales Invoices

You send an invoice to a customer for $20,000 in May.

· Sales revenue is recognised

· Your profit increases

· But if the customer hasn’t paid yet, your cash hasn’t increased.

You may have to pay tax on the profit – even though you haven’t received the money yet.

Loan Repayments

You repay $10,000 off a business loan

· Your cash decreases by $10,000

· Your loan balance decreases

· Your profit does not decrease

Only the interest paid on a loan is an expense that reduces profit. The principal repayment simply reduces a liability on your balance sheet.

Plant & Equipment Purchases

You purchase equipment for $50,000

· But you may not be able to claim the full $50,000 as an expense in the year the money is spent (depending on depreciation rules)

For example, under small business depreciation rules, you may only claim $7,500 (15%) in year one.

This means:

· Cash is down $50,000

· Profit only reduces by $7,500 in the first year

Owner withdrawals

You transfer $20,000 from the business to your personal account

· Your cash decreases

· But this is not a business expense – it does not reduce profit.

Drawings are simply moving money out of the business.

Why This Matters for Business Owners

Many small businesses struggle understanding the difference between cash and profit.

Monitoring your cash balance and your profit regularly is essential.

It is possible to be profitable and have a tax bill but have no cash available to pay for it.

Want to know what your profit for 2026 is looking like – and how to plan for your tax bill? Book in with your accountant here at Green Taylor Partners to review your cash flow and tax position.

What to Do If You Can’t Pay Your Tax Debt on Time

Wed, 11 Mar 2026 01:58:24 GMT

Tax time doesn’t always end with a refund. For some individuals and small businesses, it can result in a tax debt that’s difficult to pay by the due date. The good news is that the Australian Taxation Office (ATO) has several options available to help taxpayers manage their obligations.

If you find yourself in this situation, it’s important not to ignore the debt. Acting early usually means more options and less stress.

1. Set Up a Payment Plan

One of the most common options is entering into a payment plan with the ATO. This allows you to pay off your tax debt in smaller instalments over time rather than in a single lump sum.

Payment plans are available to both individuals and small businesses and can often be set up online through your myGov account or via your tax agent. The ATO will generally consider factors such as:

The size of the debt
Your payment history
Your ability to pay over time

Interest may apply to outstanding balances, but a payment plan can make the debt much more manageable. From 1 July 2026 interest charged is no longer tax deductible.

2. Request a Short-Term Payment Deferral

If you only need a little extra time, the ATO may allow a short-term extension to the payment due date.

This option may suit taxpayers who are waiting on incoming funds, such as:

Business income
Insurance payments
Loan approvals
Other receivables

A short extension can help avoid immediate collection action while you organise your finances.

3. Apply for Remission of Interest or Penalties

If your circumstances are exceptional, you may be able to request remission (reduction or cancellation) of interest or penalties applied to your tax debt.

The ATO may consider remission where:

You’ve experienced serious illness or natural disaster
You’ve made a genuine effort to comply
Circumstances outside your control prevented payment

Each request is assessed on a case-by-case basis.

4. Speak With Your Tax Agent

A registered tax agent can often help negotiate a suitable arrangement with the ATO on your behalf. They can also review your financial position and make sure you’re accessing all available options.

Many taxpayers find this approach less stressful than dealing with the ATO directly. There are however some cases where the ATO will only speak with you, or where you are better placed to explain the circumstances leading to the debt.

5. Contact the ATO Early

The most important step is to communicate early. The ATO is generally more flexible when taxpayers engage before the situation escalates.

You can contact the Australian Taxation Office by:

Calling the ATO on 13 11 42 for individuals
Calling 13 72 26 for business enquiries
Logging into myGov and accessing ATO online services
Speaking with your registered tax agent

Final Thoughts

Tax debt can feel overwhelming, but ignoring it rarely helps. Whether it’s a payment plan, deferral, or negotiating relief from penalties, there are options available.

If you’re struggling to pay a tax debt, reach out early — either to the ATO or your Accountant at GTP — to put a plan in place and stay on track with your obligations.

How to Read Your Financial Statements

Tue, 03 Mar 2026 02:35:15 GMT

If you’re a business owner, there’s a good chance your financial statements, produced through your accounting software subscription, get a quick glance, but not the attention they deserve.

The truth is, financial reports aren’t just compliance documents. They’re meant to help you make better decisions, spot problems early, and feel more in control of your business.

You don’t need to understand every accounting rule. You just need to know what actually matters.

Let’s break it down.

The Profit & Loss: “Am I Making Money… and Is It Worth It?”

The Profit & Loss (P&L) shows how your business performed over a period — usually a year.

Most people jump straight to the bottom line. That’s understandable, but it’s also where mistakes happen.

What to focus on as a business owner:

Revenue

Is revenue growing, flat, or declining?
Is growth coming from more customers, higher prices, or both?

Gross Profit

Revenue minus direct costs.
A shrinking gross margin is often an early warning sign — even if revenue is rising.

Operating Expenses

Are expenses increasing faster than revenue?
Which costs are fixed, and which should move with sales?

Net Profit

Profit is important, but don’t assess it in isolation.
A profitable business can still struggle if margins are thin or costs are poorly controlled.

A good question to ask yourself:
Where is the business making money easily, and where does it feel like hard work?

The Balance Sheet: “How Strong Is My Business Right Now?”

The balance sheet doesn’t get much love, but it should.

It’s a snapshot of what your business owns and owes at a fixed point in time.

In simple terms:

Assets : cash, money owed to you, stock, equipment
Liabilities : loans, tax, super, supplier bills
Equity : what’s left over after everything’s paid

What really matters here:

Do you have enough cash, or is it all tied up in invoices and stock?
Are customers taking longer to pay?
Are short-term debts starting to pile up?

Ask yourself:
If sales slowed tomorrow, how comfortable would I be?

The Cash Flow Statement: Where the Money Actually Went

Cash flow explains why your bank balance changed, even if profit looked healthy.

This is where many business owners have their “aha” moment.

Why profit doesn’t equal cash:

Invoices raised but not yet paid
Loan repayments (not an expense, but a cash drain)
Equipment purchases
Tax and super payments

A cash flow statement helps you see whether cash is being generated by:

Core operations
Borrowing
Asset sales

Business-owner question to ask:
Is the business funding itself, or relying on debt and timing?

Five Simple Questions That Matter More Than the Numbers

Instead of staring at reports, start here:

Is revenue growing in a healthy way?
Are margins improving or slipping?
What costs are quietly creeping up?
Is cash flow predictable or always stressful?
What does this tell me to do next?

If your reports don’t help answer these, they’re not being used properly.

Using Your Numbers to Make Real Decisions

Your financial statements should help you:

Price your work properly
Decide when to hire
Know when to invest (and when not to)
Avoid nasty cash surprises
Feel more confident about where the business is heading

If you’re only looking at them once a year for tax, you’re missing most of their value.

Final Thought

You don’t need to become an accountant.

You just need to stop treating your numbers like a foreign language.

The goal isn’t perfection — it’s understanding.

And often, the difference between a stressed business owner and a confident one isn’t how much they earn, it’s how well they understand what the numbers are trying to tell them.

If you’d like to start using your financial statements and business data more effectively but aren’t sure where to begin, please feel free to contact our office to discuss this further.

Xero Me App

Tue, 24 Feb 2026 23:35:14 GMT

What is the Xero Me App?

Xero Me is an employee self-service app that connects Xero Payroll and Xero Expenses. It is separate from your business and financial information. Your employees can only view their own timesheets, expense claims, leave, and pay, using the Xero Me app.

Key Functions of the App:

- Timesheets: employees can enter, edit, and submit timesheets for approval using start and end times or total hours worked.

- Leave management: employees can submit leave requests and monitor their leave balances.

- Payslips: provides access to view and download past and current payslips.

- Expense claims: employees can submit expenses, take pictures of receipts, and monitor the status of reimbursements.

- Payroll admin: assists managers to approve timesheets and leave requests on the go.

Benefits:

- Employees submit their own timesheets using Xero Me, which eliminates the need for you to manually enter data each time payroll is processed.

- You spend less time chasing your employees for timesheets and expense claims.

- Employees can only access their own payroll information, and all data is stored securely.

Xero Me is included in Xero plans that feature payroll and is available on iOS and Android devices.

Inviting employees to use Xero Me:

Under the payroll tab, in the employees’ section, select the employee you wish to invite (you will need to do this for each employee), scroll down in the details tab, and tick the box ‘Invite employee to Xero Me.’

Once the employee/’s have accepted the email invite, and created a login, they can access Xero Me via the web portal or on the go with the mobile app.

Refer to the below link for more information.

https://www.xero.com/au/xero-me/

Creating a Budget That Drives Business Performance

Tue, 24 Feb 2026 00:10:17 GMT

Budgeting is an essential part of business planning. A well-prepared budget helps leaders manage finances, allocate resources wisely, and stay on track to achieve their business goals.

Here are 6 practical tips to follow to create a budget that works.

1. Set Clear Goals

Start with the end in mind. Define the financial objectives for the upcoming period — whether that’s growing revenue, reducing costs, or expanding operations. Clear goals give your budget direction.

For example, if your goal is to increase sales by 15% over the next year, you might allocate funds to targeted marketing campaigns, new sales tools, or hiring additional account managers. If your priority is cutting costs by 5%, your budget will focus on efficiency, renegotiating supplier contracts, or pausing discretionary spending.

2. Track Income and Expenses

Keep detailed records of all revenue streams and expenses. This helps identify patterns and areas for improvement, which can be factored into your next budget.

For example, there are some businesses that spend heavily on marketing channels that don’t generate leads. Tracking and analysing results allowed us to reallocate funds to higher-performing activities, improving return on investment.

3. Be Realistic (Even Conservative)

Optimism is great, but overestimating revenue or underestimating costs is a common trap that can create financial pressure.

Here are some recommended multiple scenarios:

Expected: the most likely outcome
Conservative: lower revenue, higher costs
Aggressive: upside potential

Plan based on the conservative scenario. It gives breathing room if sales fall short or unexpected expenses arise.

4. Prioritise Essential Expenses

Some costs are non-negotiable. Identify essential expenses, payroll, rent, utilities, and core operational costs, and make sure they're covered before allocating money elsewhere.

For example, a manufacturing business should prioritise raw materials and production costs over a website redesign or an internal newsletter. Protecting essentials keeps the business running smoothly, even if revenue dips.

5. Plan for Contingencies

Unexpected events happen. Projects can expand, clients may delay payments, or equipment might fail.

Include a contingency fund in your budget to handle surprises without disrupting operations. For instance, a service business can use the contingency to hire extra staff if a project suddenly requires more resources, ensuring deadlines are met.

6. Review and Adjust Regularly

A budget isn’t a “set-and-forget” document.

Review it regularly, at least monthly, and adjust based on actual results and market conditions. This keeps the budget relevant and ensures you can make informed decisions rather than reacting to surprises.

A budget done well helps leaders commit to assumptions, make smarter decisions, and optimise performance as circumstances change. Follow these tips to prepare a budget that actually drives your business forward.

Why Tax Planning is Important

Wed, 18 Feb 2026 04:00:19 GMT

Tax is an unavoidable part of life. However, with proactive planning, you can manage you tax obligations more effectively, reduce unnecessary expenses, and make well-informed financial decisions. Tax planning is not just for large businesses - but for individuals, families and businesses of all size who can benefit from taking a structured approach.

Maximise your Deductions

Many taxpayers miss out on deductions simply because they are unaware of what is available to them. Ongoing tax planning ensures you are claiming everything you are entitled to, helping you legally reduce your overall tax liability.

Plan ahead with Confidence

Tax planning isn’t just about this year’s taxes; it’s also about planning for the future. By making smart decisions now, you can set yourself up for a lower tax bill in the years to come.

Avoid Costly Surprises

Unexpected tax bills can place unnecessary pressure on cash flow. By reviewing your financial position throughout the year, you can estimate your tax liability early and prepare accordingly.

Stay Compliant

Tax legislation is constantly changing, and it can be hard to keep up with all the latest updates. Tax planning helps ensure that you stay compliant while still minimizing your tax liability.

Remember, the goal of tax planning isn’t to avoid paying taxes altogether; it’s simply to pay your fair share while keeping as much money in your pocket as possible.

Division 7A in Simple Terms: Don’t Treat Your Company Like a Personal ATM

Tue, 03 Feb 2026 22:27:53 GMT

When you take money out of your company for personal use, it’s not automatically a tax-free loan.

To the ATO, that payment must be one of these:

Salary and wages
A declared dividend
A properly set up loan

If it’s none of the above, the ATO can treat the amount as a dividend and add it to your personal taxable income. This rule is called Division 7A.

A common situation is when a business owner transfers money from the company account to their own account, planning to “put it back later”. Without the right paperwork, the ATO may say that money was actually a dividend, not a loan.

For example:

You take $50,000 from your company to renovate your home.

If you do nothing, that $50,000 can be treated as a dividend. You will need to pay personal income tax on the full $50,000, and you don’t get any franking credits to reduce the tax.

To avoid this, you can either:

pay the $50,000 back to the company before the company’s tax return is due, or
put a formal Division 7A loan in place.

A proper Division 7A loan means:

a written loan agreement
interest charged at the ATO rate
minimum yearly repayments over up to 7 years (or longer if secured by property)

If you set up the loan correctly, you might repay roughly $9,000 per year (principal plus interest, depending on the rate and term). As long as you make those repayments on time each year, the ATO treats it as a loan, not a dividend.

Problems usually happen when people:

take money out casually
don’t sign a loan agreement
miss the required yearly repayment

If a repayment is missed, the unpaid amount for that year can still be treated as a taxable dividend.

In short, company money is not your personal spending account. If you use company funds for private purposes, either repay it quickly or set up a proper loan and stick to the repayments, or you risk an unexpected personal tax bill.

If you have any questions or would like to discuss how Division 7A applies to your situation, please feel free to contact our office for appointments.

Division 296 tax legislation (revised)

Tue, 27 Jan 2026 02:55:47 GMT

For nearly 3 years now the Government has been proposing to bring in a new tax on taxpayers with high total superannuation balances. It has been referred to as the $3 million tax.

Previous versions of the draft legislation resulted in significant opposition from both industry groups and political parties due to the unfair and unintended consequences of poorly worded legislation. Most significant was the taxing of unrealised capital gains within Self-Managed Superannuation Funds (SMSFs).

Prior to Christmas, the Government finally released their updated draft legislation for the introduction of the new Division 296 tax. The main points are as follows:

· The introduction of the tax will commence on 1 July 2026 (rather than 1 July 2025), which means the first financial year will be the year ending 30 June 2027.

· The tax of 15% will apply on the portion of earnings on total superannuation balances above $3 million.

· An extra tax of 10% will now also apply on the portion of earnings on total superannuation balances above $10 million.

· The $3 million and the $10 million thresholds will now be indexed in line with CPI (previous legislation had no indexation).

· After the first year the calculation of the portion above the $3 million will be based on the higher of the opening and closing total superannuation balance during the financial year. This is a significant change as previously it was only based on the 30 June balance at the end of each year. This allowed taxpayers to withdraw superannuation assets prior to 30 June to reduce their member balance and therefore avoid any application of Division 296 tax.

· The definition of earnings has also changed. Earnings will now be based on normal tax principles and be closer to the calculation of taxable income (which is much fairer). Unrealised capital gains will no longer be considered as part of earnings.

· Special protections will be included to ensure any capital gains accrued up to 30 June 2026 will not be included in future earnings calculations.

The draft legislation was open for industry comment up to 16 January 2026.

The Self-Managed Superannuation Fund (SMSF) Association and other industry groups have tabled concerns regarding the complexity and over-complicated nature of the draft legislation. In their eyes this can only lead to higher compliance costs (in addition to the tax).

We will keep you informed if there are any further proposed changes prior to this legislation becoming law.

Cash Clarity - Why Early Discipline Sets the Tone for the Year

Tue, 27 Jan 2026 00:26:28 GMT

January is when many business owners review their profit targets for the year ahead. That’s understandable — but in practice, it’s cash flow that determines how calm or stressful the year will feel.

Clients who enter the year with clear cash visibility tend to make better decisions, move faster, and sleep better. Those who don’t often spend the year reacting rather than leading.

Here’s why January is the right moment to reset your cash discipline — and where to focus first.

1. Cash flow is a timing issue, not just a performance issue

Many profitable businesses still experience cash pressure. The reason is usually timing, not effort or demand. Common issues we see include:

Invoices going out later than expected
Payment terms that don’t match cost cycles
Large expenses landing before revenue catches up

January is ideal for mapping these timing gaps while the year is still flexible. Even a simple month-by-month view of expected inflows and outflows can highlight where pressure is likely to arise.

2. A rolling forecast beats a static budget

Annual budgets often look impressive in January — and are forgotten by March. A rolling cash forecast, updated monthly, is far more useful. It allows you to:

Anticipate short-term funding needs
Make confident decisions about hiring or investment
Spot problems early, while there are still options

This doesn’t need to be complex. The goal is visibility, not perfection.

3. Client payment behaviour deserves attention

Late payments are one of the most common causes of avoidable cash stress. January is a good time to ask:

Are our payment terms clear and enforced?
Do we follow up consistently?
Are some Clients always slower than others?

Often, small changes to invoicing timing or follow-up processes make a noticeable difference without harming relationships.

4. Cost creep is easiest to fix early

Costs have a habit of accumulating quietly. Software subscriptions, contractors, and discretionary spending often feel manageable in isolation but add up quickly. Reviewing these early in the year gives you more control — and avoids rushed decisions later.

Software subscriptions, contractors, and discretionary spending often feel manageable in isolation but add up quickly. Reviewing these early in the year gives you more control — and avoids rushed decisions later.

5. Strong cash control creates optionality

The real benefit of cash clarity isn’t restriction — it’s choice. Businesses with healthy cash visibility can:

Invest when opportunities appear
Absorb surprises without panic
Negotiate from a position of strength

That flexibility is one of the biggest competitive advantages a business can have.

January cash discipline isn’t about being conservative. It’s about giving yourself room to manoeuvre as the year unfolds. If you’re unsure how robust your current cash position really is, a short review now can save a lot of pressure later.

Payday Super

Mon, 12 Jan 2026 13:00:28 GMT

Payday Super rules introduced by the Federal Government is now legislation and we can provide more detail for the new rules for employers.

Currently employers have 28 days from the end of a quarter to process the quarter’s super guarantee (SG) amounts for employees through an approved clearing house. This means the December quarter SG is due for lodgement and payment by 28 January.

The Payday super rules require an employer to lodge and pay the employee SG at the same time they are lodging and paying the employees.

These are the new rules:

New Deadline

From 1 July 2026 the deadline for super payments will be 7 days from the day an employee pay is paid. This means a super fund must record receipt of the employee SG via an approved clearing house within these 7 days.

There is an exemption for new employees where an extension is provided of 20 days when it’s the first payment of a new employees super.

Calculating Super Amounts

From 1 July 2026 you will calculate an employees’ superannuation based on their qualifying earnings (QE).

Qualifying earnings is made up of:

- An employee’s Ordinary Time Earnings (OTE)

- Amounts of OTE that have been used as part of a salary sacrifice arrangement for super contributions

- Other amounts which are currently included in an employee’s salary or wages for SG

Late Payments and Super Guarantee Charge

Super Guarantee charge (SGC) applies to amounts not received by a super fund within the 7 business days of payday.

From 1 July 2026 Super Guarantee charge will be:

- Assessed by the ATO (previously it was self-assessed by the employer)

- Calculated based on Qualifying earnings

- Includes interest that compounds daily at the general interest charge rate

- Includes an administrative uplift based on the employer’s history of meeting super guarantee obligations

- SGC will be tax deductible

- Penalties start at 25% of unpaid SGC and will increase to 50% depending on prior history

Small Business Superannuation Clearing House

As previously advised the small business superannuation clearing house will no longer be available.

Other Important Points

- Super Choice Forms are still required to be provided to new employees

- Employers can request Stapled super details for new employees at the time of suppling the super choice form rather than waiting until their first pay allowing employers to gain their super details in a timelier manner.

- Super funds will have 3 days to advise and return super contributions rather than the previous 20 days

Our tip is to start Payday super now.

If you are already using a software based super option than consider building into your pay process of processing a super payment at the same time

If you are using the ATO SBCCH as your super clearing house you need to consider your options to what super clearing house you will be using from 1 July 2026.

Our team at Green Taylor Partners can assist you with the move to Payday super.

The True Cost of Hiring Your First Employee in Australia

Wed, 07 Jan 2026 00:13:37 GMT

The True Cost of Hiring Your First Employee in Australia

Hiring your first employee is a huge milestone for any business. It often signals growth, increased demand, and the shift from “doing everything yourself” to building a team. But while many business owners budget for wages, the true cost of employing someone is far higher than just their salary.

If you’re planning to hire staff members, here’s what you really need to factor into your budget.

Base Wage or Salary (The Obvious Cost)

This is the figure most business owners focus on first. Whether you’re paying:

An hourly wage
A casual rate
Or a full-time salary

You must ensure it meets:

Fair Work minimum award rates
Any applicable enterprise agreements
Penalty rates, overtime, and allowances where required

Superannuation (Currently 12%)

On top of wages, you must pay Superannuation Guarantee (SG) for eligible employees. This is currently 12% of ordinary time earnings.

Example: If your employee earns $70,000 per year, super cost = $8,400 per year (at 12%)

This cost is in addition to their salary, not part of it (unless you’ve structured a total remuneration package).

Workers’ Compensation Insurance

Workers’ comp insurance is compulsory in every state and territory. The cost varies depending on:

Your industry
Your claims history
The risk classification of your work
Total payroll

For low-risk office environments it may be modest, but for trades, transport, or physical industries it can be a significant annual expense.

Payroll Tax (For Growing Businesses)

You won’t pay payroll tax immediately, but once your total wages exceed your state or territory threshold, payroll tax applies.

This often catches growing businesses by surprise, especially when they:

Hire their second or third employee
Scale quickly
Employ across multiple states

While it may not apply to your very first hire, it should absolutely be part of your forward planning.

Leave Entitlements

If you employ someone full-time or part-time, you’re responsible for:

Annual leave
Personal leave
Public holidays
Long service leave

These entitlements build up as a liability on your balance sheet, even though you’re not paying them immediately. This affects your real profit and cash flow.

Recruitment & Onboarding Costs

Hiring isn’t free. Many businesses underestimate the upfront costs, such as:

Job ads on employment platforms or recruitment agencies
Time spent reviewing applications and interviewing
Training and supervision during the onboarding period

During the early weeks or months, your new employee may not yet be fully productive — but you’re still paying full costs.

Systems, Software & Equipment

Your new employee may require:

A laptop, phone, or tablet
Software subscriptions
Uniforms or protective equipment
Desk space, tools, or vehicles

These costs can easily run into thousands of dollars upfront.

Increased Accounting & Compliance Costs

Once you employ staff, your compliance responsibilities grow:

Payroll processing
Single Touch Payroll (STP) reporting
Superannuation processing
Workers’ comp reporting
Leave tracking and entitlements

Many businesses require upgraded accounting support or payroll services once they take on staff.

The “Real Cost” Multiplier

A common rule of thumb is that the true cost of an employee is 1.25x to 1.4x their base salary once you factor in super, insurance, leave, payroll systems, and overheads.

For example:

Base Salary

Estimated True Cost

$60,000

$75,000–$84,000

$80,000

$100,000–$112,000

This is why hiring without proper cash-flow forecasting can put enormous strain on small businesses.

Can Your Business Actually Afford the Hire?

Before hiring, it’s worth asking:

Will this employee increase revenue, or only reduce workload?
How many extra sales or billable hours are needed each month to break even?
Do you have 3–6 months of wage costs buffered in cash?

Hiring too early can be just as risky as hiring too late.

Hiring your first employee is exciting, but it’s also one of the biggest financial commitments your business will ever make. Looking beyond wages to understand the full financial impact can help you:

Avoid cash-flow pressure
Stay compliant
Grow your business sustainably

If you’re considering your first hire, or adding extra staff, and want help modelling the true cost, forecasting cash flow, or setting up payroll properly, please feel free to contact our office to discuss this further.

Vacant Residential Land Tax Updates

Mon, 15 Dec 2025 00:21:57 GMT

Over recent years, the Victorian Government has continued to tighten and evolve its approach to property taxation. What began in 2018 with the introduction of the Vacant Residential Land Tax (VRLT) in metropolitan Melbourne has now expanded across regional Victoria, meaning more property owners are captured by these rules than ever before.

Many are surprised to learn that VRLT and standard Land Tax are not the same. VRLT applies where a residential property sits unused as a home and is calculated on the capital improved value (including buildings and improvements). Traditional Land Tax, however, is based solely on the land value, essentially the value of the land in its undeveloped state.

As of recent months, the Victorian Government has announced further changes to the Vacant Residential Land Tax, coming into effect from 1 January 2026. These reforms will impact owners of undeveloped land held long-term across metropolitan Melbourne.

What’s Changing?

Prior to 1 January 2026, VRLT does not apply to land without a home on it (sometimes called undeveloped land), commercial residential premises, residential care facilities, supported residential services, retirement villages or land in alpine resorts.

From 1 January 2026, VRLT is extending to undeveloped land in metropolitan Melbourne.

Where does the new VRLT apply?

VRLT is expanding to include land in metropolitan Melbourne that has remained undeveloped for a continuous period of 5 years or more and is capable of residential development. This includes:

land without a home on it
land with a residence that was partially built but abandoned
land with a residential unit, such as a unit, apartment or flat, that has a partially completed fit out but has not been occupied.

Metropolitan Melbourne is made up of the Banyule, Bayside, Boroondara, Brimbank, Cardinia, Casey, Greater Dandenong, Darebin, Frankston, Glen Eira, Hobsons Bay, Hume, Kingston, Knox, Manningham, Maribyrnong, Maroondah, Melbourne, Melton, Merri-bek, Monash, Moonee Valley, Mornington Peninsula, Nillumbik, Port Phillip, Stonnington, Whitehorse, Whittlesea, Wyndham, Yarra and Yarra Ranges council areas.

Timeframe Rules:

The land must be vacant for a continuous period of 5 years or more to attract VRLT. This means for this type of land to become liable to VRLT in 2026, it must have been undeveloped and capable of residential development since midnight on 31 December 2020.

If the land is sold, the new owner(s) has a further 5 years to begin construction before VRLT applies. This 5-year period provides adequate time for an owner of residential land to begin construction of a residence before it is regarded as vacant residential land.

Exemptions may be available for:

· Land being used for commercial or industrial purposes

· Land intended for non-residential development with acceptable reasons for delay

· Land incapable of residential development due to environmental conditions, land shape, size or natural features

Undeveloped residential land that is contiguous with (adjoins) a principal place of residence. Common examples of contiguous land are a garden, swimming pool or tennis court.

Crystal ball time:

It will be interesting to see if the government extends this new VRLT out to regional Victoria as did the initial VRLT. What will this mean for people that are holding land parcels undeveloped long term?

In the meantime, from a tax perspective, remember that if you incur VRLT or standard Land Tax, be sure to keep thorough records, as these costs will form part of your property’s cost base!

A Focus on Productivity - 4 Ways to Drive Improvement

Mon, 15 Dec 2025 00:06:25 GMT

Businesses thrive when there’s a commitment to efficiency and productivity. Enlightened leaders acknowledge this and take positive steps to reduce costs, improve customer satisfaction, and develop a competitive edge.

Here are 4 practical strategies applicable in most businesses which boost efficiency, productivity, profitability, and growth.

1. Leverage Automation

There should be a constant drive towards automation, which transforms routine tasks, like payments, invoicing, and some aspects of customer service. Seamless, low-touch processes free up valuable time for use in more strategic initiatives.

Take the small online retailer, for example, which automated inventory management. They deployed software which reduces errors but also saves around 20 hours per week of administrative work. Fulfillment speed has improved so the company can process orders faster, increasing customer satisfaction.

2. Adopt Lean Principles

Adopting lean principles means minimising waste and maximising value through continuous improvement across all business functions.

It is often associated with manufacturers and their production processes but ANY business can benefit from actively reducing costs, minimising waste, and improving processes, especially those which give the customer a better experience.

3. Invest in Employee Training

Skilled employees are more productive and can effectively adapt to new technologies and processes. Training is a long-term investment in the team's capabilities and morale, but there can be short-term gains in, for example, project efficiency, accuracy, completion rates, and Client satisfaction.

4. Use Continuous Feedback Loops

Regular feedback from employees and customers provides valuable insights for improvement. This should not be a one-time event but a recurring activity.

For example, businesses with periodic staff and customer feedback sessions can promptly address customer concerns while increasing employee engagement, as the team feels more involved and valued.

What difference could these strategies make in your business?

New Psychological Health Regulations – What This Means for Your Workplace

Wed, 10 Dec 2025 02:36:41 GMT

From 1 December 2025 , new Psychological Health and Safety Regulations came into effect. These changes are designed to help workplaces better understand, manage, and prevent psychosocial risks—and ultimately create safer, healthier environments for everyone.

The big message behind these updates is simple: mental health matters just as much as physical safety . When people feel supported, respected, and able to manage their workload, the whole workplace benefits.

What’s Changing?

The new regulations ask employers to take a more proactive approach to psychological wellbeing by:

Identifying psychosocial hazards in the workplace
Assessing and controlling the risks linked to those hazards
Putting systems, policies, and training in place to support mental wellbeing
Regularly reviewing those measures to make sure they're working

Psychosocial hazards can include things like high or unrealistic workloads, low job control, poor communication, workplace conflict, or exposure to traumatic events. The goal is to address these risks early—before they impact people’s health.

Want to Learn More?

WorkSafe has a range of clear, practical resources to help businesses understand the new requirements and get started with compliance. You can find guides, tools, and helpful examples on the WorkSafe Victoria website .

Do you hold Shares?

Tue, 02 Dec 2025 22:32:36 GMT

It is important that you provide your Accountant details regarding share purchases and disposals, as they contain relevant information required to calculate the cost base of your shares and the resulting capital gains tax when they are sold. Your accountant may also request your SRN or HIN number for their records, and any dividends or DRPs received through the year to assist with preparation of your income tax return.

Obtaining Shares

You can obtain shares in several ways, most commonly by buying them. You should keep a record of your share transactions so you can claim everything you’re entitled to and have your tax worked out accurately.

You can obtain shares through:

- Buying shares (either directly or through a stockbroker),

- Inherited shares,

- Dividend reinvestment plans (DRPs),

- Mergers and takeovers of companies in which you hold shares,

- Share purchase plans

- And more.

Inherited shares

You may inherit shares as part of a deceased estate. In this case:

- You treat inherited shares in the same way as any other CGT asset

- Where the deceased acquired the shares before 20 September 1985, the market value is used on the day the deceased passed, not the market value on the day shares were received.

Owning Shares

When you own shares, there are tax implications from:

- Receiving dividends,

- Participating in DRPs,

- Receiving franking credits,

- And more.

Dividends & DRPs

You need to declare all your dividend income in your tax return, even if you use your dividend to purchase more shares (through a DRP).

Most dividends are paid in the form of money, either by direct deposit or cheque. However, the company may give you the option of reinvesting your dividends in the form of new shares in the company. This is called a dividend reinvestment plan or scheme. If you take this option, you still pay tax on your reinvested dividends. The amount of the dividend received will also form part of the cost base for the shares you own in that company.

Keeping record of your reinvested dividends is important to assist in calculating the capital gains or capital losses you may make when you dispose of the shares.

Shares held in joint names

If you hold shares in joint names, such as with your spouse, it is assumed that ownership of the shares is divided equally.

You can own shares in unequal proportions, but you must be able to demonstrate this. For example. You can keep a record of the amount each party contributes to the acquisition cost. Dividend income and franking credits would be assessed in the same proportion as the shares are owned.

Disposing of Shares

You can dispose of shares in the following ways:

- Selling them

- Gifting them

- Transferring them

- Through share buy-backs

- Through mergers, takeovers, and demergers

- When the company goes into liquidation

It is important to keep record of these events.

Capital gains and losses when disposing of shares

You must report the capital gain or loss in your tax return.

You make a capital gain when your capital proceeds from disposing of the shares are greater than the cost base of your shares. You may be able to reduce your capital gain if you have held these shares for greater than 12 months.

You make a capital loss if the capital proceeds are less than the cost base of your shares.

For additional information see the link below:

https://iorder.com.au/publication/Download.aspx?ProdID=75444-04.2025

Please communicate your share transactions to your Accountant for their records and to assist you with complying with tax obligations.

FBT: What Is It and Does it Apply to me?

Wed, 26 Nov 2025 05:06:48 GMT

Fringe Benefits Tax (FBT) is a special tax separate from GST and income tax that businesses in Australia must pay when providing a fringe benefit to employees and other associates.

What is a Fringe Benefit?

A fringe benefit is a reimbursement, expense or non-cash payment provided by a business that is not salary and wages.

Common examples include:

· Personal use by an employee or associate of a business/company car

· Paying or reimbursing personal expenses such as school fees, memberships, or insurance

· Providing entertainment, such as meals at restaurants or tickets to events

If it is a personal expense or private use of a business asset, and the business pays for it — it may be a fringe benefit.

Who Can Trigger FBT ?
FBT applies when fringe benefits are provided to:

· Employees

· Company directors

· Family members of employees or directors

· Beneficiaries of a trust who work in or help run the business

For example, if a director uses a company car for private purposes, FBT applies — even if the director is not taking wages or making cash drawings.

If your business is a company or trust, the business is a separate legal entity from you. This means that the owners’ use of assets is treated as if they’re an employee.

Important Exception

This rule does not apply to sole traders and partners of a partnership using business assets.

However, sole traders and partnerships are still caught by FBT rules if providing benefits to employees.

What You Need to Do Each FBT Year?

If you think you may be providing a fringe benefit to an employee, director, family member or other associate:

1. Keep records of any benefits, reimbursements or private use of business assets.

2. Complete the annual FBT questionnaire provided by Green Taylor Partners.

3. Provide all relevant details so we can help you determine whether FBT applies and how to meet your obligations.

Director Penalty Notices: What Every Company Director Needs to Know

Wed, 19 Nov 2025 00:20:39 GMT

Director Penalty Notices: What Every Company Director Needs to Know

Running a business can be demanding, and it’s easy for tax obligations to slip down the priority list during busy periods. However, one area that company directors must never ignore is compliance with Pay As You Go (PAYG) withholding, Superannuation Guarantee Charge (SGC), and Goods and Services Tax (GST) obligations. The Australian Taxation Office (ATO) takes these matters seriously, and one of the key tools it uses to enforce compliance is the Director Penalty Notice (DPN).

What Is a Director Penalty Notice?

A Director Penalty Notice is a formal notice issued by the ATO to company directors who have failed to ensure their company meets its PAYG withholding, SGC, or GST obligations. The DPN makes directors personally liable for the company’s unpaid amounts — meaning the ATO can recover these debts directly from the directors themselves.

There are two types of DPNs:

Non-lockdown DPN – applies when the company has lodged its activity statements and superannuation guarantee statements on time but hasn’t paid the debt. Directors have 21 days from the date of the notice to take action (such as paying the debt, appointing an administrator, or winding up the company).
Lockdown DPN – applies when the company has failed to lodge its BAS, IAS, or superannuation statements within the required timeframes. In this case, the penalty is locked down to the director personally, and placing the company into administration or liquidation won’t remove the liability.

Where Are Director Penalty Notices Sent?

DPNs are sent by post to the director’s address listed on the Australian Securities and Investments Commission (ASIC) register. This is important — even if you’ve moved and haven’t updated your ASIC details, the ATO considers the notice delivered once it’s posted to the registered address. There are no extensions or excuses if you don’t receive it in time due to an outdated address.

You Should Contact Your Accountant Immediately

If you receive a DPN, time is critical. You generally have only 21 days from the date of the notice (not the date you open it) to take action. That’s why it’s vital to contact your accountant or tax agent as soon as possible.

Your accountant can:

Review the notice and confirm what liabilities it covers
Help you assess the company’s financial position
Advise on the available options, including payment plans or formal insolvency appointments
Liaise with the ATO on your behalf to explore possible relief or negotiate outcomes

The sooner you act, the greater the range of options available to protect both you and the business.

What Happens If You Ignore a DPN?

Ignoring a DPN is one of the costliest mistakes a director can make. If no action is taken within the 21-day period, the ATO can:

Enforce recovery directly from the director’s personal assets
Issue garnishee notices to recover funds from your bank accounts or wages
Begin legal proceedings against you personally

In cases of lockdown DPNs, the personal liability remains even if the company later goes into liquidation or administration.

Key Takeaways

A Director Penalty Notice is not just another ATO letter — it makes you personally liable for company debts. Always ensure your company lodges its tax and super obligations on time, even if payment can’t be made immediately. Keep your details up to date with your Accountant and ASIC. And if a DPN arrives, contact your accountant straight away. Acting quickly can make all the difference between resolving the issue and facing significant personal consequences.

7 Ways to Enhance the Customer Experience that Drive Growth and Profit

Thu, 13 Nov 2025 22:43:55 GMT

Successful businesses usually enjoy high customer retention (loyalty) and repeat business . They offer quality products or services but also meaningful interactions and experiences, which keep customers coming back.

Here are some practical strategies for leaders looking to increase customer loyalty and drive repeat business:

1. Personalisation

Tailor communications and offers to individual customers based on their preferences and past interactions. A Customer Relationship Management (CRM) system maintains and analyses important data, especially related to purchase history. Sensitivity to customer preferences drives retention and repeat purchase.

2. Use Multiple Channels

Your customers may prefer certain ways of communicating, such as phone, email, and social media, so offer exceptional customer service through multiple channels. Live chat support can be available anytime and queries can be escalated for human intervention, as appropriate.

3. Loyalty Programs

Loyalty programs reward customers for repeat business and help you stand out among competitors. A simple example is to offer a free product after a specified number of purchases, encouraging the customer to buy more.

4. Solicit and Act on Feedback

Get feedback from customers AND take action to address their concerns. This can be done formally through detailed surveys or informally through conversations with selected customers. Showing customers you have listened and taken appropriate action will be greatly valued.

5. Transparency

Open, ethical business practices and keeping your promises build credibility. This is especially important when things go wrong, for example, if products need to be recalled.

6. Reward Customer Referrals

Encourage satisfied customers to refer friends and colleagues to your business. Make referral processes easy so minimal effort by the customer is required, and they can be confident the new customer will enjoy a great experience.

7. Consistency

The brand message and values should be consistent across all customer touchpoints. That way, customers become familiar and comfortable with the business and are unlikely to look elsewhere while their needs are being met.

Many of these best practices can be implemented at minimal cost, and the benefits of increased customer loyalty will far exceed the investment. What can you do to increase customer loyalty in your business?

HECS-HELP Loan Reforms: What Uni Students need to know for the 2025 financial year

Wed, 12 Nov 2025 02:32:29 GMT

The Australian Government has announced significant changes to the Higher Education Loan Program (HELP), including HECS-HELP loans, aimed at reducing the financial burden on university graduates.

These reforms, effective from the 2025 financial year, are set to benefit approximately three million Australians.

20% Reduction in Help Debt

From June 1, 2025, all outstanding HELP debts – including HECS-HELP, FEE-HELP, SA-HEPL, OS-HELP and Vet student loans will be reduced by 20% before any indexation is applied. This measure is expected to alleviate approximately $16 Billion in student debt across the country. The Australian Tax Office will automatically apply this reduction to eligible accounts.

https://www.education.gov.au/higher-education-loan-program/20-reduction-student-loan-debt/faqs-20-reduction-all-outstanding-help-loan-debt?utm_source=chatgpt.com

Change to Repayment Thresholds

Effective July 1, 2025, the minimum income threshold for compulsory HELP repayments will increase from $54,435 to $67,000. Additionally, a marginal repayments system will be introduced, where repayments are calculated only on income above the new threshold, rather than on total income. This adjustment means that graduates earning below this new threshold will not be required to make compulsory repayments, and those earning above it will pay a smaller percentage of their income towards their debt.

These reforms are part of the governments broader effort to make higher education more accessible and to support graduates in their financial journey’s.

FBT and Christmas Parties: What Businesses Need to Know

Tue, 04 Nov 2025 22:43:33 GMT

With Christmas just around the corner, many businesses are planning parties to celebrate the year. But before you book the venue, it’s worth understanding how Fringe Benefits Tax (FBT) may apply.

What Is FBT?

FBT is a tax employers pay on certain non-cash benefits provided to employees, such as entertainment. Whether your Christmas party attracts FBT depends on where it’s held , who attends , and how much it costs .

When FBT Applies

On your business premises (during work hours)

Usually exempt from FBT if only employees attend.

Offsite (e.g., restaurant or venue)

If the cost is under $300 per person (including GST) and the event is infrequent, it’s usually exempt under the minor benefits rule .
If it costs over $300 per person , FBT generally applies .

Who attends

Employees: May be exempt if cost is under $300.
Employees’ partners: Also counted separately for the $300 rule.
Clients: Not subject to FBT, but not tax deductible.

Quick Examples

Tips to Stay Compliant

✅ Keep a record of who attends and the total cost.
✅ Separate employee and client expenses.
✅ Consider hosting the event on your premises to simplify FBT.

Final Word

A little planning can make your Christmas celebration stress-free and FBT-smart. If you’re unsure about the rules or need help reviewing your event costs, Green Taylor Partners can guide you through the details.

Superannuation $3 Million Dollar Rule – update

Wed, 29 Oct 2025 03:18:25 GMT

Federal Treasurer’s announced on 13 October 2025 changes to the proposed Division 296 tax measure which applies additional tax to earnings attributable to an individual’s total superannuation balance (TSB) in excess of $3 million. The start date for the revised measure has been pushed back to 1 July 2026 with the first Div 296 tax assessments in respect of the 2026-27 financial year being issued in 2027-28.

The changes announced included introducing a second large superannuation balance threshold of $10 million with an additional 25% tax imposed on earnings attributable a total superannuation balance (TSB) in excess of $10 million, indexing the large balance thresholds of $3 million and $10 million to CPI, and moving to a realised earnings approach that aligns to existing income tax concepts. No longer will the tax be imposed on unrealised gains.

Changes will now make this tax a two tier approach;

15% extra tax on earnings attributable to a TSB above $3 million up to $10 million, meaning a total tax rate of 30% applied to this portion of earnings
25% extra tax on earnings attributable to a TSB above $10 million, meaning a total tax rate of 40% applied to this portion of earnings

Both thresholds will be indexed to the Consumer Price Index (CPI). The $3 million threshold will be indexed in increments of $150,000 and the higher $10 million threshold will be indexed in increments of $500,000.

Funds will need to calculate taxable/realised earnings and attribute to fund members. Adjustments will be made for elements such as contributions and pension phase income. Calculations closely align to existing tax concepts – it will not include unrealised gains.

Please note this is not yet law (must pass both Houses of Parliament). Start date is proposed to be 1 July 2026, with the first assessment against the large balance thresholds on 30 June 2027. ATO will send a tax assessment for the additional tax which can be paid from either super or personal funds. Does not apply to everyone – only those over $3 million at 30 June.

Four tips to protect your business from cybercriminals

Thu, 23 Oct 2025 02:13:41 GMT

In this increasingly digital age, small businesses are becoming more and more vulnerable to the threat of cybercrime. In particular, there has been an increase in supply chain attacks targeting small businesses. Cybercriminals are constantly adapting their tactics and using AI to fuel their attacks. As technology advances, so does the risk to your sensitive data.

This increasing risk means it’s more important than ever to get the basics right. The good news is, AI still can’t beat smart cyber habits. October is Cyber Security Awareness Month, so we’re here to equip you with four essential tips to safeguard your business against cybercrime.

1. Strengthen your first line of defence

Humans can often be the weak spot in a business’s cybersecurity efforts, so it’s important to have a strong first line of defence in your systems to protect your business.

It doesn’t have to be super complex or expensive – the easiest and most effective solutions are free or low-cost.

To start with, get your security basics sorted:

Passwords: Strong passwords are the foundation of your online security. Use long, unique passwords for each account, and consider using a password manager to keep track of them.
Multi-factor authentication (MFA): MFA adds an extra layer of protection by requiring additional verification, such as a code sent to your phone, when logging in.
Secure products and services: Choose reputable providers that prioritise security. Look for certifications like ISO and SOC2 compliance when selecting software and services.
Use public wifi safely: While the most secure option is to use wi-fi at your home or office, there are a few things to keep in mind if that’s not an option:
Use your personal mobile phone as a hotspot – it’s significantly safer than café, hotel, or airport networks.
Connect to a trusted VPN first, if available.
Verify any wi-fi network with the venue before continuing – fake hotspots are a common scam to capture credentials.
Don’t access confidential or sensitive information over public wi‑fi.
Avoid oversharing personal information online: Attackers harvest publicly available details to tailor convincing phishing and social engineering attacks (email, SMS, voice, and social apps). Even small personal facts (roles, travel, family, habits) help them impersonate people you trust or bypass checks.

2. Educate your team about phishing

One way cybercriminals can exploit small businesses is through phishing scams, in which cybercriminals impersonate trusted individuals or organisations to trick them into revealing sensitive information through deceptive emails or text messages.

A phishing email looks like it comes from a legitimate source, but fraudulently tries to get you to provide sensitive information, such as your password or credit card details. Some of these emails might also try to infect your device by getting you to click a link to a malicious website or attachment.

However, even the most advanced phishing is still toothless if you know enough to pause, think critically about the message, and react appropriately if something doesn’t seem right.

With this in mind, it’s important to educate your team about phishing and train them to:

Adopt a zero trust approach: Your team motto where data is concerned should be ‘never trust, always verify’. Bake security into your processes, for example, a payment can’t be processed without specific verification steps (even if it appears to be the CEO asking you to process it!)
Identify phishing attempts: Teach your employees how to spot phishing emails by being on the lookout for suspicious links, urgent requests, or grammatical errors.
Avoid suspicious links and attachments: Encourage your employees to hover over links before clicking, and to avoid downloading attachments from unknown senders.

3. Learn how to spot a deepfake

Conventional scams are difficult enough to spot, but AI-based scams can be harder to detect and so even more dangerous. Deepfakes allow cybercriminals to create seemingly legitimate audio and video that can be incredibly convincing. Voice cloning replicates somebody’s tone and language to trick someone else into having a genuine phone conversation.

Cybercriminals can use deepfakes to impersonate executives, clients, or even government officials. Train your team to look for signs of deepfakes, such as:

inconsistent eye blinking or pupil dilation
artificial-looking noise or distortions
poor lip-syncing
blurred or irregular shadows

4. Stay informed and vigilant, and report suspicious activity

Cyber threats are constantly evolving, so it’s crucial to stay informed about the latest scams and security best practices. Regularly update your software and apps, apply security patches, and consider subscribing to cybersecurity newsletters or blogs.

Finally, ensure you and your team report any suspicious activity. Work to create a culture where employees feel comfortable reporting anything unusual, even if it turns out to be harmless.

So, what should you do if the worst happens and your business gets attacked or compromised?

First of all, and most importantly – don’t panic. But do act quickly. Don’t be afraid to speak up – the cyber criminal wants you to be too embarrassed to tell anyone. Report the attack to your local Computer Emergency Response Team (CERT) agency or national cybersecurity agency, and if there’s an immediate threat to life or risk of harm, call the police.

Cybersecurity is everyone’s responsibility. By following these tips and staying vigilant, you can significantly reduce your risk of falling victim to cybercrime.

Using Technology to Streamline Your Finance Function

Thu, 16 Oct 2025 00:18:32 GMT

In today's fast-paced business environment, technology can assist by simplifying financial workflows, saving time, and improving overall business performance.

That said, deploying technology without a strategy can actually hold a business back. Here are 7 best practices which apply to medium enterprises on this subject.

1. Embrace Cloud-Based Accounting Software

Not especially new… but cloud-based Accounting software offers a wide range of features, including automated invoicing, expense tracking, and financial reporting. With real-time access to financial data, leaders can make informed decisions quickly and precisely. Cloud accounting can also reduce the administrative workload and give leaders better visibility into the state of the business.

2. Automate Repetitive Tasks

The usual candidates for automation are data entry, invoice processing, payroll calculations, and other repetitive processes. Often this requires automating workflows between different apps (using Zapier, for example) because no single application does everything. In addition to time saving, automation reduces errors, which can be expensive to fix.

3. Implement Online Payment Solutions

Online payment solutions allow customers to pay invoices electronically, reducing the need for manual payment processing. Most solutions integrate with Accounting software, further simplifying financial management. In most cases, customers also prefer this approach… and improved customer satisfaction is always a good thing!

3. Utilise Financial Dashboards

Financial dashboards provide a visual representation of key financial metrics, so leaders can quickly assess the financial health of the business. This leads to making decisions based on data, versus gut feeling. Different businesses should track different metrics depending on their business goals.

4. Invest in Cybersecurity

Cybersecurity is a growing threat. Solutions include implementing firewalls, using secure passwords, and regularly updating software. A data breach can be devastating for a business, including losing the trust of customers when their sensitive information is compromised.

5. Leverage AI

Artificial intelligence (AI) streamlines financial management processes by analysing financial data to identify patterns and trends, providing valuable insights. AI-powered tools also automate tasks such as fraud detection and risk assessment.

6. Stay Updated with Regulatory Changes

Regulatory compliance is critical in financial management. Compliance management software helps leaders stay up to date ensuring compliance, while avoiding costly penalties.

Automation helps businesses simplify and enhance financial management processes. How can you streamline your financial workflows and focus on growing your business?

10 Random Finance & Investing Tips

Wed, 15 Oct 2025 03:09:22 GMT

Achieving “Financial Independence” has always been considered the main aim for investors.

Many investors become impatient, or they try to get there too quickly. As a result, they may lose discipline and have to start from scratch again.

For many it is like chasing a rainbow they never reach, which could be due to a range of reasons.

For those that do succeed, in most cases, it is due to using some basic investment principles, combined with a large dose of discipline.

Below are 10 Finance and Investing tips, in no particular order, which should be considered as part of a long-term strategy towards financial independence.

1. Insure your income

Your future income earning potential, especially in your early working life, will have a value greater than most assets you own. It therefore makes sense to insure it via an effective income protection policy. If due to illness or injury you were unable to work and lost your regular income, you would be putting all of your long-term financial strategy at risk. These premiums are also tax deductible.

2. Set aside 10% of your income – invest it

If you can get in this habit early, then it just becomes automatic. Each time your income increases, the value of your 10% also increases. Invest it for the long-term and let the power of compounding take over!

3. Spend less than you earn

Should not need to explain this one, but getting in this habit early, will make your life so much less stressful!

4. The best time to invest is always yesterday

Procrastination is the greatest enemy of those seeking financial independence. What are you waiting for? Passive income cannot start until you start investing. There is an abundance of low-cost methods now to start investing into markets, so you really do not have an excuse.

5. Do not try and time the market

In reality, timing the market is too hard. If you are worried the market might fall, then spread your initial investment over a number of dates and purchase prices so you can get a spread of purchase costs. If you are investing in sharemarkets, yes, they will fall in value!!!! They always do, but they go up as well. If markets do fall, see that as an opportunity to buy in at a cheaper price.

6. Count your money – regularly!

Every month, quarter or six months, keep a schedule of the value of your investment assets (bank accounts, shares, superannuation, rental property, etc). Also keep a record of your liabilities (home loan, credit card, investment loan, personal loans for vehicles, caravans, etc). Measure your net asset position and record which way this is trending. You will know pretty quickly if you are heading the right way.

If your net asset position is heading south, you need to change your approach, urgently. If it is continually heading in the right direction, then keep up the discipline, but reward yourself where possible!

7. Use the power of compounding

This is the eighth Wonder of the World (ask Albert Einstein!). The power of long-term regular investment may not be apparent at the outset of your investing life, but I can guarantee later in life you will always be thankful for those little acorns (investments) you planted 20, 30 & 40 years ago.

Example – put $10,000 away each year for 40 years, earn a 7% return over this time and now have $2,136,000. This capital base can generate over $100,000pa each year in income now!

Do some Googling and find a compounding interest calculator!

8. Understand risk. Not investing is just as risky as investing!

There are many who will not invest in the sharemarket “because it is too risky.” The share market can be volatile, which means there is definitely a short-term risk due to changes in value. But you need to understand how volatility works.

There are also risks in only investing in bank deposits in the long-term. Your Term Deposit balances will remain capital guaranteed, but after taking into account inflation, the value of your deposit actually “loses” value.

There are risks everywhere, which include volatility, inflationary, diversification and liquidity risk. But there are ways to address each risk.

9. Become financially literate and realistic

You owe it to yourself to not put your head in the sand about investment and finance. Most of the characteristics of being a great long-term investor are based on common sense and discipline.

There are some wonderful, basic books to get you started. The Richest Man in Babylon by George S Clason, Rich Dad Poor Dad by Robert Kyosaki, The Millionaire Next Door by Thomas J Stanley.

You do not need an International Economics degree to understand these books, but they are great foundations you can use to get you into great investing habits.

10. Tax deductions do not make you wealthy

I still see a lot of investments advertised or promoted as providing the investor with huge tax deductions, providing tax savings. My first reaction is a big red flag. Large tax deductions, normally mean tax losses and/or cash outlays.

A net tax loss on an investment, does allow you to claim a tax deduction, but you only get back your tax deduction multiplied by your marginal tax rate. You are still likely to be out of pocket.

Understand what you are getting yourself into long term.

I hope these tips can help you on your investing journey! They have helped me!

“MYOB Assist” App

Wed, 08 Oct 2025 00:47:22 GMT

Who is it for?

MYOB introduced “Solo” earlier this year for small sole traders and have now released MYOB Assist, a new AI-supported mobile app aimed at addressing the administrative burdens facing small and medium-sized businesses.

What does it cost?

MYOB Assist is included for free with MYOB subscriptions and is compatible with Lite, Pro, AccountRight and Connected Ledger subscriptions. It is available in the Apple - App Store and Android - Google Store.

What can it be used for?

The app is designed to help MYOB Users (owners, employees etc) by keeping on top of their administrative responsibilities on the go. MYOB claims that making these processes accessible via a mobile device will help business owners feel more in control and prepared.

The App offers the following features:

· AI-powered receipt capture

Take photos of receipts to capture deductible expenses. Auto-matching and AI category suggestions run seamlessly in the background.

· Mobile invoicing and payment reminders

Create, edit and send invoices from your mobile

· Real-time bookkeeping

Keep cash flow and accounting up to date with the automatic sync feature from the MYOB Assist app to your browser, so you can work anywhere.

For more information visit MYOB Assist or contact one of the GTP Team.

Small Business Super Clearing House (SBSCH)

Wed, 01 Oct 2025 03:08:30 GMT

The Small Business Superannuation Clearing House is closing!

From 1 July 2026 there will be no more access to the SBSCH. This is due to the Payday Super reforms being introduced from 1 July 2026.

Existing users are encouraged to transition to alternative options for Super stream and their use of a super clearing house. This includes reviewing their existing software options and payroll packages or looking at options offered by super funds, commercial dealing houses or other payroll software providers.

For more information Employers can refer to ato.gov.au/howtopaysuper.

For more information on Payday Super refer to previous blogs on our website on this topic.

Understanding the Medicare levy and Medicare levy surcharge

Wed, 24 Sep 2025 05:37:04 GMT

What is Medicare levy?

The Medicare levy is a small tax most Australians pay to help fund our public health system. It’s 2% of your taxable income and is automatically included in your total tax payable at tax time.

Who pays the Medicare levy?

Most Australian residents will pay the 2% Medicare Levy, once their income reaches the Medicare threshold as in the chart below. For most taxpayers once they earn $27,222 they will start paying some form of Medicare. However, in certain cases, you might get a reduction or even an exemption from the Medicare levy. For instance, if you meet specific conditions such as being a low-income earner, foreign resident or having a medical exemption, you may qualify for a reduced rate or full exemption.

⁽¹⁾ A phase-in of 10 cents per $1 applies above the lower limit.

⁽²⁾ Applies to families where there are no children and/or students.

What is Medicare levy surcharge?

The Medicare Levy Surcharge is an added charge that medium – high income earners pay in addition to the Medicare Levy. It is designed to encourage more Australians to take out private hospital insurance.

Who pays the Medicare levy surcharge?

The Medicare levy surcharge only kicks in if you earn above certain income levels:

- You’re single and earn over $101,000 a year, OR

- You’re a family with a combined income above $202,000

The good news is you can avoid the surcharge if you and your family (or dependants as defined by the ATO) have private hospital cover. The key here is Hospital cover, just keep in mind that extras-only policies don’t count, so things like dental or physio cover on their own won’t help you avoid the surcharge.

Please note that income for Medicare Levy Surcharge purposes is the sum of your taxable income, reportable fringe benefits, net investment losses and reportable super contributions.

How is the Medicare levy surcharge calculated?

The surcharge is calculated as a simple percentage of your annual income. In general, the more you earn, the more surcharge you pay.

Medicare Levy Surcharge income tiers for 2025–26 financial year are:

⁽¹⁾ Family income level threshold is increased by $1,500 for each dependent child after the first.

AI in Everyday Life: What It Means for You

Wed, 17 Sep 2025 03:42:27 GMT

Artificial Intelligence (AI) is no longer a futuristic concept—it’s part of our everyday lives. From smart phones to online banking, AI is quietly working in the background, making things faster, easier, and more efficient. But like any tool, it comes with both advantages and challenges. The team at GTP are constantly learning about AI and how it impacts what we do, our work and in life for our clients—whether you’re running a small business, working the farm, managing your investments, or raising a young family.

How AI Can Help You

Here are some ways AI could be integrated into your life right now:

1. Automating Routine Bookkeeping
For business owners, managing receipts and invoices can be a time-consuming task. AI-powered tools like Xero or MYOB now use machine learning to automatically categorise expenses, match transactions, and even flag anomalies. This means less time in the office, more time doing what you do best and more time doing what you love.

2. Smarter Budgeting and Saving
Young families and retirees alike can benefit from AI-driven budgeting apps like Frollo. These tools connect to your bank accounts, track spending habits, and offer personalised suggestions to help you save more or reduce costs. They can even alert you when bills are due or if you’re close to exceeding your budget.

3. Crop and Weather Monitoring
For those on the land, AI is transforming agriculture. There are now apps that use satellite imagery and machine learning to predict crop yields, monitor soil health, and provide early warnings for pests or drought. These insights help make better-informed decisions—potentially improving both productivity and sustainability.

4. Enhanced Customer Service
If you run a business, AI chatbots can be used to respond to customer queries outside business hours, freeing up your time and improving client satisfaction. Many businesses are also using AI to analyse customer feedback and buying patterns, helping them tailor services and stay competitive.

5. Personalised Investment Advice
Investors may already be using AI without realising it. Many superannuation platforms and investment apps now use AI to offer tailored portfolio recommendations based on your goals and risk tolerance. While this doesn’t replace personalised financial advice, it can be a helpful tool in managing your retirement income.

6. Time-Saving Tools for Busy Families
For young families juggling work, school, and household duties, AI can help streamline daily life. Virtual assistants like Siri, Google Assistant or Alexa can manage calendars, set reminders, order groceries, and even help plan meals based on what’s in the fridge. AI-driven shopping apps can also track prices and suggest budget-friendly options—saving both time and money.

The Limitations of AI

While AI can be incredibly helpful, it’s not perfect. It relies on data, and if that data is wrong or incomplete, the results can be too. AI doesn’t understand context the way a human does—so it may make errors in judgement that you wouldn’t. Privacy is also a concern; many AI tools collect and analyse personal information, so it’s important to read the fine print, choose trusted providers and very carefully consider entering any personal details.

In Summary

AI offers exciting possibilities across many aspects of everyday life—from saving time and money to improving decision-making. But like any tool, it’s most effective when used wisely and with care. AI is not a replacement for human advice. It can support decision-making, but when it comes to tax planning, legal matters or big financial decisions, there’s no substitute for speaking with a qualified, trusted professional.

Jess created this blog using ChatGPT by providing a detailed prompt providing details on writer perspective, audience and various content parameters. Edits have been made following fact-checking and to correct context as required.

Strategic Pricing - Setting Prices to Maximise Profit

Thu, 11 Sep 2025 05:38:15 GMT

Setting the right price for products and services drives sales, profitability, and enables long-term growth.

Here are some pricing strategies that can help unlock significant business potential.

1. Understand Costs

Effective pricing is only possible with a good understanding of costs, such as:

Fixed Costs: The expenses that remain constant regardless of production levels, like rent, salaries, and insurance.
Variable Costs: The costs which fluctuate based on production volume, including raw materials and direct labor.
Break-even Point: The minimum sales volume required to cover all costs, and a valuable baseline for pricing decisions.

Accurate and frequent financial reporting is necessary in order to keep a handle on these metrics.

2. Analyse the Market

Enlightened leaders study their competitors’ pricing strategies, especially what they charge and the value offered at those price points. They also carefully monitor market demand (e.g. based on seasonal or economic factors) because high demand may justify higher prices.

3. Value-Based Pricing

Strategic pricing means understanding customer perception of value. Products should be priced based on perceived value in addition to the costs of production.

Also, understanding the value proposition enables the seller to highlight unique features and benefits of their products. That way, they market and sell in ways that persuade customers to choose them over competitors.

4. Dynamic Pricing

Different circumstances may warrant different prices. For example, adjusting prices based on real-time demand is common in industries like travel and hospitality.

Promotional Pricing means offering temporary price reductions to stimulate demand, clear out inventory, or attract new customers.

5. Bundling and Packaging

It can make sense to combine multiple products or services into a single package at a discounted rate. This can increase perceived value and encourage customers to purchase more.

A related concept is tiered pricing, whereby different tiers of products are offered at varying price points to cater to different customer segments, such as budget-conscious and premium customers.

6. Monitor and Adjust Pricing

Since market and economic conditions are constantly in flux, leaders should continuously monitor pricing strategy performance. This regular review includes gathering feedback from customers and sales teams to understand how pricing impacts sales and customer satisfaction.

A small variation in price can significantly impact business profitability and growth potential. Use these strategies to unlock the full profit potential of your business!

Do I Need to Keep Paper Receipts?

Wed, 10 Sep 2025 04:16:31 GMT

Gone are the days when you had to keep shoeboxes full of fading paper receipts. But many individuals and business owners still wonder: do I need to keep paper receipts for tax purposes? The short answer is no—but you do need to keep records. Let’s walk through what the ATO expects, how to store your records properly, and how to make life easier at tax time.

The Australian Taxation Office (ATO) does not require you to keep physical paper receipts—but it does require that your records be:

Legible (easy to read)
Accurate
Complete
Stored safely for at least 5 years

That means digital copies are perfectly acceptable, if they meet the above criteria.

You can store your receipts in many formats:

Scanned images or PDFs
Photos from your phone (if details are clear)
Emails or digital invoices
Files stored in cloud systems (like Google Drive, Dropbox, or OneDrive)

Just make sure:

The date, amount, supplier, and purpose are clearly visible.
You can access the file if needed (e.g. if the ATO audits you).

Here are some easy ways to stay organised and compliant:

1. Take a Photo Straight Away

Got a work expense? Snap a photo of the receipt on your phone before you lose it.

2. Use Cloud Storage

Create a folder for each financial year and upload scanned receipts, invoices, and bills. Bonus: no risk of fire, water damage, or faded ink.

3. Accounting Software Tools

Programs like Xero, QuickBooks, and MYOB let you upload and attach receipts to specific transactions. Easy and secure.

4. Label Everything Clearly

Use file names like “2025-03-01 - Bunnings - Office Shelving - $124.pdf” so it’s easy to search.

How Long Should You Keep Records?

For individuals and sole traders: 5 years from when you lodge your tax return.
For companies and trusts: often 5–7 years, depending on your structure and obligations.
If you’re claiming deductions for depreciable assets, keep records for 5 years after the asset is fully written off.

What Not to Do

Don’t throw away receipts until they’ve been safely saved digitally.
Don’t rely on ink receipts—they fade fast!
Don’t store files only on your phone—back them up in the cloud or on a secure computer.

You no longer need to keep piles of paper, but you do need to be smart about saving your receipts. With digital tools and a little organisation, you can stay ATO-compliant and reduce tax-time stress.

Thinking about buying your first home?

Wed, 03 Sep 2025 03:28:50 GMT

Buying your first home can be a daunting process, but one of my key tips would be to make yourself aware of the government incentives that are available. These include:

First Home Guarantee

The First Home Guarantee enables first home buyers to buy or build their new home with a 5% minimum deposit of the property value and borrow up to 95% from your lender.

Housing Australia will provide a guarantee to the lender, up to 15% of the property value.

Eligibility Criteria

To be eligible for the first home guarantee, you need to:

- Be an Australian citizen or permanent resident

- Have taxable income below the individual cap of $125,000 or $200,000 combined for joint applicants

- Have a minimum deposit of 5% of the property value

- Be at least 18 years old

- Be a first home buyer or not have owned a property in the last 10 years in Australia

- The home must be owner-occupied

Various types of homes can be covered under this guarantee and an eligibility tool is available here: https://www.housingaustralia.gov.au/support-buy-home/eligibility-tool

First Home Owners Grant (FHOG)

If you are buying or building a new home valued up to $750,000, you may be eligible for a one-off grant of $10,000. The home must not have been previously sold or occupied, rented or leased out.

Eligibility Criteria

To be eligible:

- You must be at least 18 years of age at settlement date or at the time construction of the home is finished.

- At least one applicant (you or other part owner/s) must live in the home for at least 12 months, within 12 months of settlement or completion of construction. There are exceptions to this requirement for Australian Defence Force members and there are limited circumstances where this requirement may be varied.

You will not be eligible, if you and/or your spouse:

- Have already received the FHOG.

- Have owned another residential property in Australia prior to 1 July 2000

- Have lived in a home that either of you owned, on or after 1 July 2000 for more than 6 months

There are some exceptions to these requirements, and a checklist for eligibility is available here: https://www.sro.vic.gov.au/first-home-owner/will-i-be-eligible-first-home-owner-grant#1

Land Transfer (Stamp Duty) Exemption or Concession

Stamp duty is payable when you buy a home or property, or on the transfer of property. The amount you pay will depend on the dutiable value of the property, how the property is used, whether you are a foreign purchaser and if you are eligible for any exemptions or concession.

The duty exemption or concession is available in addition to the FHOG, for those purchasing their first home and principal place of residence, which can be previously owned /established or new.

If your new home is valued up to $600,000, you may be eligible for a duty exemption, where you will pay no stamp duty on the purchase.

If your new home is valued between $600,001 to $750,000, you may be entitled the duty concession, where you will receive a reduction of stamp duty payable.

The value of the property (dutiable value) is usually the contract price, however if the price you pay for the property is less than the market value, the dutiable value will be the market value.

To be eligible for the exemption or concession:

- Your contract of sale must be dated on or after 1 July 2017. If your contract date is prior to this date, you may be eligible for the concession only.

- All the purchasers of the property must meet the same eligibility criteria as the FHOG.

- You or your spouse must not have already received the exemption or concession.

How much stamp duty will I pay?

- A calculator is available to calculate the duty you would pay, and can be accessed here: https://www.e-business.sro.vic.gov.au/calculators/land-transfer-duty

Think you have overpaid your duty?

- You can apply for a reassessment for up to 5 years after the duty was paid if you were eligible for an available benefit and didn’t claim it. Visit this link: https://www.sro.vic.gov.au/land-transfer-duty/apply-for-a-duty-refund

Special Circumstances and Other Eligibility:

You may also be eligible for a duty exemption, concession or reduction under some of these circumstances:

- Buying an off-the-plan property?

You may be eligible to receive a duty concession as a first homeowner buying an off-the-plan land and building package or a refurbished lot, eligibility can be accessed here: https://www.sro.vic.gov.au/land-transfer-duty/offtheplan

- Buying vacant land to build your first home?

You may may be eligible for the stamp duty exemption or concession, and eligibility can be accessed here: https://www.sro.vic.gov.au/first-home-owner/exemption-concession-reduction#vacant-land

- Pensioner or commonwealth concession cardholder?

There may be special duty concession or exemption available, for more information, visit https://www.sro.vic.gov.au/land-transfer-duty/pensioner-and-concession-cardholder-duty-reduction

- First home owner with a family?

As a first homeowner with a family who bought their home on or after 1 January 2006, you may be entitled to a duty exemption or concession, eligibility can be accessed here:

https://www.sro.vic.gov.au/first-home-owner-with-family-exemption-or-concession

Temporary Exemptions and Concessions:

Other temporary benefits available to first home buyers, even if you don’t qualify for the first home buyer duty exemption or concession include:

- Duty waiver for purchases of Victorian residential property with a dutiable value of up to $1 million for contracts signed on or after 25 November 2020 and before 1 July 2021.

- Duty exemption or concession for the purchase of residential property, with a dutiable value of up to $1 million located within the City of Melbourne local government area.

More information about these temporary benefits can be found here: https://www.sro.vic.gov.au/first-home-owner/exemption-concession-reduction

More information for First Home Buyers

For more information, visit https://www.sro.vic.gov.au/first-home-owner

Common GST coding mistakes to be aware of

Wed, 27 Aug 2025 01:42:40 GMT

It is common for businesses to make mistakes when it comes to goods and services tax (GST). As a result of those mistakes, businesses may underpay by claiming credits to which they are not entitled, or they may overpay the ATO. It is important to understand some discrepancies that may arise whilst you, as a businessperson, are reconciling your accounts.

Below are some common mistakes to be aware of:

1. Not every business expense includes GST. The following purchases won’t have GST attached:

- Bank fees & interest payments

- Most basic food items and medical supplies

- Council & Water rates

- Most motor vehicle registration fees

- Stamp duty

- ASIC fees

- Land Tax

- Donations

You are attempting to recoup unpaid GST if you claim credits on these expenses. Always check whether a supplier invoice includes GST before you claim a credit.

2. Claiming GST twice

It is common to report the same income or expense twice. Below are some examples when this may occur:

- Financed purchases: a business buys an asset (e.g., a vehicle), and claims the full GST credit up front, then later claims GST on each finance payment. Finance repayments do not include GST as this has been accounted for with the purchase of the asset.

- Duplicated sales entries: a business accidentally records the same sale twice and pays double the GST it collected.

These errors overstate your GST and cause the business to either pay more to the ATO than it owes or to claiming a larger refund than the business is owed.

3. Mixing Business and personal expenses

- Claiming GST on personal purchases: GST credits apply only to business expenses.

- Not splitting business and personal use: if you buy a laptop and use it 50% for personal use, you can only claim the 50% of GST used for business purposes.

Most businesses should have a drawings / loan to director account in their software to account for personal expenditure from the business.

4. Claiming GST credits on non-registered suppliers & contractors

When a business claims GST credits, it is crucial to confirm that the supplier or contractor they have paid is correctly registered for GST.

- Use of the ABN lookup website ( https://abr.business.gov.au ) can confirm whether the supplier or contractor is registered for GST.

- If they are registered, GST credits can be claimed on the expense.

- If they are not registered, then there is no GST included in the total price and the expense must be recorded as a ‘GST-Free’ expense.

How to maintain GST compliance?

- Ensure your accounting software is properly configured for GST (refer to prior GTP blog articles that outline GST codes), and although an account may be GST inclusive, some transactions will need to be manually changed to GST free in line with expenses that do not attract GST.

- Keep valid tax invoices for purchases (even attach these to their corresponding transactions in your software)

- Separate business and personal expenditure

- Reconcile GST accounts regularly

- Ask for help when needed (contact your accountant)

Get in touch with your Accountant for any queries.

The $3.0m Super tax is coming back – what do we know?

Tue, 19 Aug 2025 23:00:02 GMT

Earlier this year Labor’s Division 296 tax bill (the $3.0m super tax) was abandoned in Parliament as the Government did not have the numbers in the Senate to get it through.

However, with Labor’s strong election result and now only needing the support of the Greens, you can guarantee this legislation will be reintroduced to Parliament at the first opportunity.

There has been plenty of articles written about this tax. Unfortunately, it is common for important information to be excluded from many of these articles.

Most articles concentrate on the fact the tax applies to earnings on a taxpayer’s portion of superannuation savings above $3.0m. However, the $3.0m threshold is not the real issue – the main issue is the definition of “earnings”.

Earnings for the purposes of the Division 296 legislation are effectively defined as “movement in member balance” after taking into account after-tax contributions and withdrawals.

For members of Self-Managed Super Funds (SMSFs), this means the tax will apply on movements in asset values, including direct property, Australian shares and overseas equities.

Therefore, Division 296 tax will apply on profits your SMSF has not made and may never make! You are effectively paying tax on a hypothetical profit!

The majority of taxpayers with superannuation savings above $3.0m are prepared to pay a higher rate of tax, but only on ACTUAL earnings , not on possible earnings!

At the time of writing the legislation has not yet been re-introduced to Parliament, however it is likely the first assessment date will be on 30 June 2026. This is what we currently know:

· The tax will be levied in an individual taxpayer’s name, not the Super Fund. It is understood provisions will exist for the member to apply to their Super Fund to release fund to pay Division 296.

· Any negative movements in your member balance will not attract a cash refund of tax previously paid, they can only be used against future Division 296 gains.

· The Government has remained steadfast the $3.0m threshold will not be indexed. This means more taxpayers will be subject to the tax over time.

· If you are not able to satisfy a Condition of Release (eg are under age 65 and cannot satisfy a retirement condition), you will have no ability to withdraw assets from your Super Fund to reduce your member balance.

What should you do now?

It is best to do nothing for now – any premature sale or withdrawal of assets in an SMSF could lock in taxable gains as well as eroding your superannuation savings without the ability to re-contribute.

It is best to wait until actual legislation has been tabled, so we know what we are dealing with.

Staying Compliant with Tax Laws - 8 Essentials for Business Owners

Mon, 18 Aug 2025 04:52:07 GMT

Budgeting is an important part of business planning. A well-designed budget helps leaders manage finances, allocate resources and stay on track to achieve business goals.

Here are 6 practical tips to help create a budget that works for your business.

1. Set Clear Goals

Define financial goals for the upcoming period. Whether it's increasing revenue, reducing costs, or expanding operations, clear objectives guide all budgeting decisions.

For example, a business aiming to increase sales by 15% in the next year, might budget for targeted online advertisements and promotions which drive traffic to the website. The budget would be quite different for a business aiming to cut costs by 5% in the coming 6 months.

2. Track Income and Expenses

Detailed records of the business's income and expenses help identify spending patterns and cost cutting opportunities which are taken into account in the next budget cycle.

These records help leaders analyse and identify patterns in revenue and expenses to develop intelligent assumptions on what may happen in the future.

3. Be Realistic (Even Conservative)

When creating the budget, be realistic about revenue projections and expense estimates. Overestimating income or underestimating expenses can lead to budget shortfalls and financial difficulties.

It can also be helpful to make budgets with different scenarios based on, for example, ‘aggressive’, ‘conservative’ and ‘expected’ assumptions. In any case, always err on the conservative side.

4. Prioritise Essential Expenses

Identify the business's essential expenses, such as rent, utilities, and payroll, and prioritise them in the budget. This ensures they’ll be covered even if revenue is lower than expected.

For example, we’d expect a manufacturing company to prioritise essential expenses such as raw materials and production costs over the website upgrade, company offsite and internal newsletter.

5. Plan for Contingencies

Include a contingency fund in the budget to cover unexpected expenses or revenue shortfalls. Having a buffer avoids financial difficulties if things don’t go as planned.

For example, a contingency fund can help a services business deal with a sudden increase in project scope, so they can hire additional staff to deliver the project on time.

6. Review and Adjust Regularly

Review the budget regularly and adjust as needed. As the business grows and market conditions change, the budget should evolve to reflect these changes. Most well-run businesses will review the budget at least monthly.

A budget helps leaders commit to certain forecasts and optimise business performance as things change. We suggest you follow these guidelines when preparing your next budget!

What work-related expenses can I claim in 2025?

Tue, 12 Aug 2025 23:00:00 GMT

Most of us have work-related expenses, and knowing exactly what you can claim can make a noticeable difference to your refund.

Travel & vehicle expenses: beyond the daily commute

If you use your own car for work, say driving between job sites or to client meetings, you may be able to claim travel expenses . Just keep in mind that your daily commute from home to work isn’t deductible.

There are two ways to claim:

Cents per kilometre: claim 88 cents per km (2024–25) for up to 5,000 work-related kilometres. This includes fuel, maintenance and depreciation. Just document how you calculated the distance.
Logbook method : for claims over 5,000 km or actual costs, keep a 12-week logbook to track business use. You can then claim a portion of car expenses like fuel, rego, insurance, and repairs.

Working from home: rules for claiming home office deductions

With more Aussies working from home, claiming home office expenses has become standard. Since March 2023, the ATO requires you to keep a record of your actual work-from-home hours, your calendar or timesheet will do!

There are two ways to claim:

Fixed rate method (70c/hour) : covers energy costs, internet, mobile phone use, stationery, and computer consumables. You can’t claim these separately.

Actual cost method : claim a work-related portion of your additional expenses if you have detailed records.

You can also claim depreciation on big-ticket office expenses like a desk or monitor (even if using the fixed rate method). Just note: rent, mortgage interest or council rates usually aren’t deductible if you’re an employee.

Uniforms, protective gear & laundry: dressing for success

Wearing a compulsory uniform with a logo, occupation-specific clothing (like scrubs or chef whites), or protective gear (like high-vis or steel-capped boots)? You can claim the cost to buy and clean them , including dry cleaning. Everyday clothes, even if only worn for work, aren’t deductible.

Tools and equipment: big vs small

This covers everything from your laptop to a tradie’s toolbox. The rule of thumb:

Under $300 : Claim the full cost in the year you buy it, great for items like keyboards, headsets, or work bags.

Over $300 : Claim depreciation over its effective life, based on how much you use it for work. This applies to bigger purchases like laptops or tools. Check the ATO’s depreciation and capital allowances tool .

Self-education: investing in your career

Courses that directly relate to your current income-earning job can be deductible , think a designer doing an advanced Adobe course. Astronomy while working in retail? Probably not.

Eligible deductions include:

course fees (excluding HECS/HELP)
textbooks and stationery
internet and phone usage
depreciation on computer equipment.

Mobile phone & internet: the work/life divide

Using your personal phone or home internet for work? You can only claim the portion you use for work. So, if 50% of your internet usage is work-related , you can claim 50% of the cost. Keep a logbook or a diary for a typical month to estimate your work percentage.

Overlooked opportunities: don’t miss these tax deductions!

Beyond the common work-related expenses, there are other deductions that often get missed:

Tax agent fees : yep, the fees you pay to a registered tax agent to prepare your previous year’s tax return are deductible.

Investment property expenses: If you own a rental, you can claim certain expenses to reduce your taxable income. They fall into three categories:

claim now: loan interest, council rates, repairs, insurance, and management fees
claim over time: capital works, borrowing costs, and assets over $300 (via depreciation)
not claimable: personal expenses, travel expenses or second-hand assets bought after May 2017.

Some pre-rental expenses, like loan interest, may be claimable if your intent was to rent the property.

Union fees, membership fees & registrations : any fees paid to a professional association or trade union are claimable.

Income protection insurance : if you pay premiums for income protection insurance that covers lost income (not life or trauma insurance), you can claim them. Just not if your super fund pays for it.

Cost of managing tax affairs : this includes things like tax preparation software or even travel costs to see your tax agent.

Gifts & charitable donations : if you’ve donated $2 or more to a registered charity (a Deductible Gift Recipient or DGR), make sure you claim it and have your receipt.

Work Hard, Claim Smart

Knowing what work-related expenses, you can claim helps you get back more at tax time. Whether it’s driving between job sites, using your home internet for work, or buying tools or uniforms, every deductible expense adds up. Just remember, you need to keep good records and make sure the expenses are directly related to earning your income. With the right approach, you can claim what you're entitled to and avoid missing out on valuable deductions.

HECS-HELP Loan Reforms: What Uni Students need to know for the 2025 financial year

Wed, 06 Aug 2025 06:10:39 GMT

The Australian Government has announced significant changes to the Higher Education Loan Program (HELP), including HECS-HELP loans, aimed at reducing the financial burden on university graduates. These reforms, effective from the 2025 financial year, are set to benefit approximately three million Australians.

20% Reduction in Help Debt

From June 1 2025 all outstanding HELP debts – including HECS-HELP, FEE-HELP, SA-HEPL, OS-HELP and Vet student loans will be reduced by 20% before any indexation is applied. This measure is expected to alleviate approximately $16 Billion in student debt across the country. The Australian Tax Office will automatically apply this reduction to eligible accounts.

https://www.education.gov.au/higher-education-loan-program/20-reduction-student-loan-debt/faqs-20-reduction-all-outstanding-help-loan-debt?utm_source=chatgpt.com

Change to Repayment Thresholds

Effective July 1 2025 the minimum income threshold for compulsory HELP repayments will increase form $54,435 to $67,000. Additionally, a marginal repayments system will be introduced, where repayments are calculated only on income above the new threshold, rather than on total income. This adjustment means that graduates earning below this new threshold will not be required to make compulsory repayments, and those earning above it will pay a smaller percentage of their income towards their debt.

These reforms are part of the government broader effort to make higher education more accessible and to support graduates in their financial journey’s.

Hobby vs Business

Wed, 30 Jul 2025 04:49:53 GMT

Am I in business?

This might seem like a strange question, but for some taxpayers it is very important to consider as income generated from a hobby is generally not taxable income and all expenses incurred are not deductible as a result.

We’ve had lots of questions about this in the past from people who may be running a stall at local markets selling hand made goods, or creating digital content and receiving remuneration and goods as a part of this.

Sometimes it can be hard to tell if this income is derived in pursuing a hobby or operating a business, but there are some important determinations set out by the ATO to consider.

The entire scope must be considered in relation to the below, not just one point, for example if an activity is completed ad hoc with no business plan, but the activity is completed with profit making intentions this is likely to be deemed as a business.

Essentially, the intention, regularity and purpose of the activity can help to identify whether it is a hobby or a business, the most important thing to consider is what is the purpose of the activity. If you are just completing an activity solely for enjoyment and recuperating input costs by selling to family and friends, this could just be a hobby. But this can get very difficult to determine when getting into the nitty-gritty details, so if you are needing any help in determining whether your activity is a hobby or a business, please contact our office to discuss this further.

Tap to Pay on XERO

Wed, 23 Jul 2025 03:38:15 GMT

Xero launched Tap to Pay on iPhone for Australian small businesses with a Stripe account on April 10, 2025. This feature allows businesses to accept in-person contactless payments using their iPhone or Android Device and the Xero Accounting app without needing additional hardware.

By accepting on the spot payments for services provided this allows businesses to have better cashflow and also reduce administration burden with sending invoices and following up payments not received for services.

For more information, please follow the below link to the XERO website:

https://www.xero.com/au/accounting-software/accept-payments/tap-to-pay/

6 Factors to Consider When Developing an Effective Business Budget

Thu, 17 Jul 2025 06:18:01 GMT

Budgeting is an important part of business planning. A well-designed budget helps leaders manage finances, allocate resources and stay on track to achieve business goals.

Here are 6 practical tips to help create a budget that works for your business.

1. Set Clear Goals

Define financial goals for the upcoming period. Whether it's increasing revenue, reducing costs, or expanding operations, clear objectives guide all budgeting decisions.

2. Track Income and Expenses

Detailed records of the business's income and expenses help identify spending patterns and cost cutting opportunities which are taken into account in the next budget cycle.

These records help leaders analyse and identify patterns in revenue and expenses to develop intelligent assumptions on what may happen in the future.

3. Be Realistic (Even Conservative)

When creating the budget, be realistic about revenue projections and expense estimates. Overestimating income or underestimating expenses can lead to budget shortfalls and financial difficulties.

4. Prioritise Essential Expenses

Identify the business's essential expenses, such as rent, utilities, and payroll, and prioritise them in the budget. This ensures they’ll be covered even if revenue is lower than expected.

For example, we’d expect a manufacturing company to prioritise essential expenses such as raw materials and production costs over the website upgrade, company offsite and internal newsletter.

5. Plan for Contingencies

Include a contingency fund in the budget to cover unexpected expenses or revenue shortfalls. Having a buffer avoids financial difficulties if things don’t go as planned.

For example, a contingency fund can help a services business deal with a sudden increase in project scope, so they can hire additional staff to deliver the project on time.

6. Review and Adjust Regularly

A budget helps leaders commit to certain forecasts and optimise business performance as things change. We suggest you follow these guidelines when preparing your next budget!

When to register your business for GST

Tue, 15 Jul 2025 23:45:45 GMT

How does GST Registration Work?

GST registration is not mandatory for every business or enterprise, but failure to register when required may result in penalties. Once you are required to, you must register for GST within 21 days, and you must have an Australian Business Number (ABN) to do so. When you are no longer required to be registered, you can cancel your GST registration.

When does your business need to register?

Your business must register for GST:

- When your business has a GST turnover (gross income from all businesses less GST) of $75,000 or more.

- When you start a new business and expect your turnover to reach the GST threshold ($75,000) in the first year of operation.

- If you’re already in business and have reached the GST threshold ($75,000).

- If your non-profit organisation has a GST turnover of $150,000 per year or more.

- When you provide taxi or limousine travel for passengers (including ride-sourcing), regardless of your GST turnover. This applies to both owner-drivers and those who lease or rent a taxi.

- If you want to claim fuel tax credits for your business.

It is optional to register for GST if your business doesn't fit into one of these categories. If you choose to register, generally you must remain registered for at least 12 months.

How do you register for GST?

Once you have an ABN, you can register for GST via the following platforms:

- Online Services for Business.

- Through your registered Tax or BAS agent.

- By phone on 13 28 66.

Following registration, you will receive written correspondence with your:

- GST registration details, including the effective date of registration.

- ABN details if you haven't previously received them.

Once registered for GST, you must lodge a business activity statement (BAS).

What if you choose not to register?

If you're not registered for GST, you should monitor your turnover each month to determine if you’ve reached or are likely to exceed the threshold ($75,000). Failure to register for GST when required may result in you having to pay GST on sales made from the date you were required to register, even if you didn't include GST in the price of those sales. You may also have to pay penalties and interest.

Working out your GST turnover

Your GST turnover is your total business income (not your profit), less:

- GST that is included in sales to your customers

- Sales to associates that aren't for payment and aren't taxable

- Sales not connected with an enterprise you run

- Input-taxed sales you make

- Sales not connected with Australia

GST Turnover Threshold

You reach the GST turnover threshold if either:

- Your current GST turnover (your turnover for the current month and the previous 11 months) totals $75,000 or more ($150,000 for non-profit organisations).

- Your projected GST turnover (your total turnover for the current month and the next 11 months) is likely to be $75,000 or more ($150,00 for non-profit organisations).

Victorian On-Farm Drought Infrastructure Grants

Wed, 09 Jul 2025 03:11:49 GMT

The Victoria Government has provided a number of drought assistant grants and funding to assist Victoria Farms in these current times.

The On-Farm Drought Infrastructure grant is available to farmers to implement on-farm infrastructure improvements and business activities to make improvements for drought.

Eligible farmers can apply for a $5,000 co-contribution grant that can apply for improvement to water infrastructure upgrades e.g. tanks, troughs, pipes etc, stock containment areas and grain and fodders storage.

Additional activities have been included with now water carting and pasture management being included.

Eligible farmers in the southwest of Victoria may be eligible to an additional $5,000 top-up making it up to $10,000 they may receive for improvements.

For more information and to apply please go to https://agriculture.vic.gov.au/farm-management/drought-support/grants-and-financial-support/on-farm-drought-infrastructure-grants

The Power of Data - Using Analytics to Drive Business Decisions

Wed, 02 Jul 2025 03:19:49 GMT

Data has evolved from being a byproduct of operations to a strategic asset that can drive growth, innovation, and competitive advantage. Small and medium-sized businesses (SMBs) that effectively harness the power of data analytics make more informed decisions, enhance operational efficiency, and gain deeper insights into customers.

Here are ways SMBs can leverage data analytics to drive business decisions and grow.

1. Understanding Data

A first step is to understand the type of data available and its potential value. Identify data sources, such as sales figures, customer demographics, website traffic, and social media engagement.

Available data will vary by industry. For example, a retail store tracked purchase history and customer preferences through its loyalty program. This data enabled personalisation of marketing campaigns and promotions, resulting in greatly increased repeat purchases.

2. Choosing the Right Analytics Tools

Your needs and objectives determine what tools you need. For analysing large datasets, consider Tableau or Power BI. For real-time analytics, platforms like Google Analytics or Mixpanel may be suitable. Cloud-based solutions are cost-effective and scalable, ideal for SMBs with limited resources.

3. Implementing Predictive Analytics

Historical data can help forecast future trends and outcomes.

For example, a software subscription-based service used predictive analytics to forecast customer churn. By targeting at-risk customers with retention offers, they reduced churn by 15%.

4. Improving Operational Efficiency

Streamline operations and reduce costs by analysing processes and identifying bottlenecks.

For example, a manufacturing company used data analytics to optimise its production processes and inventory levels. Lead times were cut by 25% after improved resource allocation.

5. Enhancing Customer Experience

Gain insights into customer preferences, buying patterns, and satisfaction levels.

For example, a hotel chain used data analytics to personalise guest experiences based on preferences and behaviour. Tailored services and promotions led to improved guest satisfaction scores and repeat visits.

6. Using Data for Strategic Decision-Making

Inform strategic choices with data-driven decision-making. Use data to support decisions on entering new markets, launching products, or expanding the customer base.

Leaders need to persuade themselves and others that they can achieve a positive Return on Investment through new initiatives. Data analytics provides the insights to assess future outcomes and quantify the probability of success.

While data analytics alone can’t guarantee business success, it provides valuable insights that drive decisions and improve outcomes.

How can you better understand and utilise available data?

Understanding Payday Superannuation in Australia

Wed, 25 Jun 2025 05:16:33 GMT

The introduction of payday superannuation is set to transform how Australian businesses handle employee superannuation payments.

Effective from 1 July 2026, employers will be required to make superannuation contributions in line with each payroll cycle, rather than on a quarterly basis.

It is crucial for employers to make super contributions for eligible employees from the start of their employment to meet superannuation obligations and avoid penalties.

While this change aims to improve employee outcomes, it also places a new layer of responsibility on business owners.

What is Payday Superannuation?

Under the current system, employers are required to pay superannuation quarterly. However, from July 2026, payday superannuation will mandate that super payments be made with each payroll cycle. This shift is designed to ensure employees receive their superannuation in real-time, reducing unpaid super issues and aligning with modern payroll practices.

Benefits for Employers:

1. Simplified Payroll Processes

Paying superannuation on payday can streamline payroll operations. Employers can manage wage and super contributions under a single schedule, simplifying their accounting processes.

2. Cash Flow Management

Frequent, smaller super payments may ease the financial burden compared to larger quarterly contributions, potentially making it easier for businesses to manage cash flow.

Challenges and Considerations

1. Cash Flow Implications

Paying super more frequently could strain businesses with inconsistent revenue streams. It’s crucial to reassess cash flow strategies to ensure super is readily available during each payroll cycle.

2. Record-Keeping

Accurate record-keeping is essential for effective superannuation management. Employers must maintain detailed records and ensure compliance with evolving regulations. For most businesses this will mean getting on board with a software that supports the payday super obligations. Fortunately, major accounting software platforms like Xero and MYOB have integrated features to support employers in adopting this approach.

3. Compliance Deadlines

Employers will have 7 days to process the super from each pay cycle. If the obligation is not met, businesses will become liable for a Superannuation Guarantee Charge, which includes penalties and interest.

Tip: You may wish to consider adjusting your payroll frequency. For example, moving from weekly to fortnightly cycles. This will reduce administrative workload and make it easier to effectively manage your superannuation obligations.

If you would like any more information regarding Payday Superannuation, please contact us at Green Taylor Partners.

7 Ways to Avoid Business Scams

Thu, 19 Jun 2025 23:10:38 GMT

In addition to the many challenges of running a business, scammers present a growing (and formidable) risk.

Reports from government agencies show they’re having a hard time protecting businesses from scammers. For example, Australia’s investment watchdog - the Australian Securities and Investment Commission (ASIC) - recently claimed to be taking down roughly 20 scam sites each day!

What can business leaders do to counter this threat?

First, let’s look at some typical examples of scams.

Phishing

Phishing occurs when scammers impersonate government agencies or large organisations like banks to trick business owners into revealing sensitive information. This can happen over email or text and the recipient usually clicks a malicious link that seems legitimate. The fraudsters often prey on fears and uncertainty, sending out fake updates about safety measures or offering access to supposed government subsidies.

Compromised email accounts

Email phishing becomes more complicated when hackers access legitimate email accounts and send links or fraudulent payment requests. These emails are especially dangerous because they’re hard to distinguish from legitimate correspondence.

False billing

In this case, scammers send fake invoices, hoping busy administrators won’t notice they’re fake. Small businesses face significant risk especially where one fraudulent payment could significantly impact cash flow.

Supply scams

Scammers can set up fake websites or social pages and sell nonexistent products. Buyers seeking something urgently or that they think is scarce are particularly prone to this scam.

Overpayment scams

More rare, perhaps, but this involves scammers overpaying for goods using stolen credit cards or fake cheques. Then they request a refund for the excess and, once the original payment fails, the business is left with the bill.

So what can businesses do about scams? Here are 7 best practices.

1) Recognise that any person or business is a target. Scams are not only directed at small, unsophisticated businesses. Many vigilant, tech-savvy people have fallen victim. And the techniques of scammers continue to evolve.

2) Create a culture of suspicion: Verify the source of emails, SMS, or social media messages before responding or clicking on links, especially where sensitive information is involved. Be doubly suspicious where the sender implies urgency, a common technique of scammers.

3) Train your employees to recognise and report suspicious activity. Anyone can be targeted.

4) Double-check payment requests, especially those involving new bank details. Set up processes which require multiple steps, or involvement by multiple people, before payments are executed.

5) Strengthen password policies, because weak passwords are a common entry point for scammers. Make sure all business accounts have strong, unique passwords that change regularly.

6) Update software because outdated systems are an easier target for scammers, especially those engaging in phishing attacks.

7) Online monitoring tools like Google Alerts can reveal unauthorised use of the business name online. Scammers often misuse legitimate business names to seem credible to other victims.

With no end to the threat of scammers in sight, it’s prudent for leaders to be ultra cautious and adopt strategies like those mentioned above.

What should you be doing to protect your business from scammers?

Deductions You Can Claim: Clothing and Laundry Expenses

Wed, 18 Jun 2025 01:52:01 GMT

Deductions You Can Claim: Clothing and Laundry Expenses

To claim a deduction for any work-related expense:

- It must directly relate to earning your income

- You must have spent the money yourself, and not have been reimbursed by your employer

- You must have a record or receipt to prove it

If your total claim for work-related expenses is more than $300, you must have written evidence to prove all of your claims.

Clothing and laundry expenses have special rules in terms of their deductibility.

You cannot claim a deduction for the cost of buying, hiring, repairing or cleaning conventional clothing you buy to wear for work. For example, black work pants purchased from Target etc.

However, you can claim a deduction for the cost of buying, hiring, repairing or cleaning work clothing that fits into any of these categories:

- Occupation Specific

- Protective

- Compulsory Uniforms

- Non-compulsory Uniforms (registered with AusIndustry)

Conventional Clothing

According to the ATO, ‘Conventional clothing ‘is everyday clothing worn by people regardless of their occupation. If the clothing could reasonably be worn outside of work and is not distinctive, it is not tax deductible, even if it is compulsory by your employer or only worn at work.

For example:

- business attire worn by office workers

- jeans or drill shirts worn by tradesman

Occupation Specific

Occupation-specific clothing is attire that is necessary for certain jobs and distinctively identifies you as a person associated with that particular occupation. This type of clothing is tax deductible as long as it cannot be worn by multiple professions.

For example:

- Chef’s hat and apron

- Pilot or flight attendant uniforms

- Nurse scrubs

Note that some items that are occupation specific, may also be considered compulsory uniforms.

Protective

Protective clothing includes items that you wear to protect you from any risk of illness or injury from your work activities or environment. This type of clothing must have a protective element to be considered protective rather than a conventional item.

Protective clothing items are tax deductible.

For example:

- Construction workwear (high-vis vests, hard hats, work boots)

- Medical personal protective equipment (PPE)

- Fire resistant or UPF sun protection clothing

- Any safety shoes or boots that may be steel-toed or non-slip.

Compulsory Uniforms

Compulsory uniforms are items that your employer makes compulsory to wear the uniform through a strictly enforced workplace agreement or policy.

The uniform must be sufficiently distinctive to your particular organisation so it can be identified by anyone outside of the organisation.

While many uniforms feature a logo, its presence does not determine whether the uniform is compulsory, as long as it meets the specified requirements.

Compulsory uniforms are tax deductible.

For example:

- Police or firefighter uniforms

- Fast food or restaurant uniforms

- Military uniforms

However, shoes, socks and stockings are generally not deductible unless they can be differentiated by conventional clothing by:

- Being an essential part of a distinctive compulsory uniform

- the characteristics (colour, style and type) are a distinctive part of your uniform that your employer specifies in the uniform policy

Non-Compulsory Uniform

Non-compulsory work uniforms are not tax deductible unless your employer has registered the design with AusIndustry. Single clothing items, however, cannot be registered.

You can check with your employer if you are not sure whether your uniform is registered.

Laundry, Cleaning and Repairs

You can claim a deduction for the cost of cleaning and repairing items in these categories:

- Occupation-specific

- Protective

- Compulsory

- Non-compulsory clothing items registered with AusIndustry

You may claim these expenses using the following provided by the ATO:

- $1 per load if it contains only work-related clothing items

- 50c per load if you’re washing work clothes with other items

If you require dry cleaning or another specialist service for your work-related clothing, you can claim the actual expenses. However, you must have written evidence.

If your laundry claim is $150 or less (not including dry-cleaning expenses), you can claim the expense and don’t need receipts.

However, you can’t claim a deduction if your employer reimburses you for these expenses.

Some tips:

- If you are unsure whether you can claim a deduction for the cost of an item, keep all your receipts and records for your accountant to assess and advise you of the deductibility of the item.

- Is your total claim for work-related expenses more than $300? You must provide written evidence for your other work-related expenses. This includes the $150 laundry claim that you would otherwise be able to claim without receipts.

- Visit the ATO website using the following link for more information: Clothes and items you wear at work | Australian Taxation Office

How to Stay Ahead of Your Tax Obligations

Wed, 04 Jun 2025 03:58:27 GMT

1. Use the “Multiple Bank Accounts”

We recommend using three main bank accounts for your business:

Main Operating Account – for day-to-day expenses and receiving income
GST Tax Account – strictly for GST and BAS lodgement obligations
Wages & Super Account – for payroll, PAYG, and super contributions

2. Set Aside GST From Every Sale

1. If you’re registered for GST or have payroll obligations, it's important to set aside a portion of every sale to cover these liabilities.

2. Transfer a suitable percentage of each sale into your tax-related accounts. The percentage may vary based on your specific business needs and structure, but creating a buffer helps ensure you’re prepared for quarterly lodgements, unexpected tax liabilities, and timing issues.

3. Open separate tax accounts with your bank to prevent accidental spending of tax funds.

3. Plan for Wages, super and PAYG Withholding

Even if you’re a sole trader or a small team, it’s critical to allocate a portion of each sale towards employee wages and entitlements.
This should cover:

· Salaries and wages

· PAYG withholding

· Superannuation

· Workcover obligations

4. Track Your Expenses Weekly

Use accounting software like Xero, or MYOB to:

· Reconcile bank transactions as you go to avoid wrong accounted transactions

· Track income and expenses in real time

· Match payroll and GST accounts regularly

Tip: Set weekly reminders to transfer GST and wages portions, don’t wait until end of quarter.

5. Stay BAS and Tax Ready

Every quarter, you’ll need to lodge a Business Activity Statement (BAS). It includes:

· GST collected

· PAYG withholding

· Any PAYG instalments due

Having your tax and wage accounts pre-funded makes BAS lodgement smooth and stress-free, by having the money already sitting in your tax accounts, it becomes much easier to make arrangements for BAS payments without cash flow pressure.

Conclusion

Success isn’t just about increasing sales; it’s also about managing those sales with discipline. By setting aside appropriate amounts regularly into dedicated accounts, you'll foster a habit of tax preparedness and business stability. This allows you to focus on growth without the stress of last-minute tax shortfalls.

If you're unsure how much to set aside, or how your GST and PAYG are calculated, get in touch with our accounting team and we can tailor a plan based on your business cash flow and help automate your processes.

Capital Works Deductions

Thu, 22 May 2025 01:36:21 GMT

What are capital works?

Capital works refer to substantial improvements, renovations, or construction that increase a property’s value or extended its life.

Examples include:

- Building extensions

- Upgrading plumbing

- Replacing roofs

- Restumping of the house

- Replacing the lawn

- Replacing retaining walls

These are long-term improvements, not regular repairs or maintenance. Unlike routine maintenance, which can be deducted in the year you spend the money, capital works deductions are spread out over 25 to 40 years.

How do these deductions work?

You can claim a percentage of the cost of capital works each year. Generally, residential properties built after 16 September 1987 can claim 2.5% per year up to 40 years.

Who can claim?

Anyone who owns a property with significant improvements can claim this deduction, including property investors, business owners, and landlords. However, principle place of residence that are not rented out are not eligible for capital works deductions.

Capital works deductions can be claimed as a deduction against the rental income that has been made for the year if you have made substantial improvements to you property.

8 Strategies to Manage Growth (and the Associated Costs of Growth)

Wed, 21 May 2025 05:35:26 GMT

Running a small or medium-sized business is challenging. Investing in hiring, marketing and raising prices may drive growth… but also impact the bottom line. Making prudent investments while managing cash is extremely important.

Here are some practical strategies to help leaders achieve long-term profit growth, without putting the business at risk .

1. Stay Informed: Monitor Key Metrics

Keep an eye on gross margin, net profit margin, and other key metrics which make sense in your business. For example, a financial services firm implemented a real-time dashboard to monitor key performance indicators (KPIs), and this analysis helped make informed decisions about their pricing and cost-control strategies.

2. Price Right: Regularly Review Your Pricing Strategy

Research the market to ensure prices are competitive. Your pricing should capture the true worth of products or services in the minds of your customers. For example, a theater owner learned to modify ticket prices based on customer demand, resulting in increased revenue per performance even in slow periods.

3. Bundle Up: Offer Product Bundles

Create bundles of products or services to encourage customers to buy more. This can increase the business’s average sale value and boost profits. For example, an e-commerce platform introduced personalised product bundles based on customer purchase history, leading to a significant increase in average order value.

4. Discount with Purpose: Offer Strategic Discounts

Use discounts strategically to move slow-moving inventory or to attract new customers. For example, a seller of furniture offered targeted discounts for high-end products during off-peak seasons, which had a long-term positive impact on the bottom line.

5. Start Smart: Streamline Your Operations

Review processes and identify inefficiencies. Find ways to automate or simplify them. This reduces costs AND frees up time for the team to focus on what matters. For example, a manufacturing business implemented an automated inventory system, saving 100 man-hours per month. In addition to reducing costs, the time saved was partly allocated to innovation, with good results.

6. Stay Sharp: Negotiate with Suppliers

Regularly review supplier contracts and don't be afraid to negotiate better terms. Consider forming partnerships or buying in bulk to get discounts that boost the bottom line. A retail chain which renegotiated supplier contracts, achieved a 15% cost reduction, which directly increased profit margins.

7. Be Agile: Implement Just-in-Time Inventory

Keeping a lean inventory helps reduce storage costs and avoids tying up cash in excess stock. For example, a food distributor uses sales forecasts to order inventory only when needed. This has reduced warehouse costs and food waste, leading to higher profitability.

8. Work Wisely: Outsource Non-Core Activities

Consider outsourcing tasks like Accounting or IT support to specialised firms. This lowers overhead costs and gives access to expertise to help the business grow. For example, a software developer outsources some projects to an offshore team, which accelerates time-to-market and improves customer satisfaction.

Each business is different but consider these practical strategies to improve your business's profitability and set the stage for long-term success.

Bookkeeping Tips

Wed, 26 Mar 2025 05:17:00 GMT

Effective bookkeeping is vital for the success of any business. By understanding and implementing various methods, leveraging the right software, avoiding common mistakes, and following practical tips, you can maintain accurate financial records and make informed business decisions.

Common Mistakes

Below are some pitfalls to watch out for:

By being aware of these common mistakes and taking proactive steps to avoid them, you can maintain a clearer financial picture and ensure your business remains on solid ground.

Simple Bookkeeping Tips

Implementing effective bookkeeping practices can significantly enhance your business operations. Here are some essential tips:

By adopting these tips, you can enhance your bookkeeping practices, ensuring accuracy and efficiency in managing your business finances.

The post Bookkeeping Tips appeared first on Green Taylor Partners .

Fringe Benefits Tax (FBT) Explained: What Employers Need to Know

Wed, 19 Mar 2025 02:50:00 GMT

Fringe Benefits Tax (FBT) is an important consideration for employers who provide additional perks to their employees. Whether it’s a company car, free gym memberships, or entertainment benefits, these perks may be subject to FBT. Understanding how FBT works can help businesses remain compliant and avoid unnecessary tax liabilities.

In this article, we’ll break down the basics of FBT, common fringe benefits, and strategies to minimize FBT liability.

What Is Fringe Benefits Tax (FBT)?

FBT is separate from income tax and applies to non-cash benefits given to employees or their families. It is calculated based on the taxable value of the benefits and is paid by the employer, not the employee. The FBT year runs from 1 April to 31 March each year.

Common Fringe Benefits Subject to FBT

Here are some of the most common benefits that attract FBT:

1. Car Fringe Benefits

If an employee uses a company car for private purposes, FBT applies. Even parking the car at home overnight counts as personal use.

2. Entertainment Benefits

Providing employees with free meals, event tickets, or holiday accommodation can attract FBT. This includes Christmas parties, team lunches, and other social events.

3. Expense Payment Benefits

If an employer pays for an employee’s personal expenses, such as school fees, health insurance, or personal loan repayments, these are subject to FBT.

4. Housing and Accommodation Benefits

Providing employees with rent-free housing or at a reduced rent can trigger FBT.

5. Loan Fringe Benefits

If an employer provides an interest-free or low-interest loan to an employee, the difference between the market interest rate and the rate charged is subject to FBT.

FBT Exemptions and Reductions

Some fringe benefits are exempt from FBT or attract concessional treatment under ATO rules. These include:

Final Thoughts

Fringe Benefits Tax can be complex, but understanding how it works and applying the right strategies can help businesses manage FBT costs while still offering attractive benefits to employees. Whether you’re an employer looking to optimize tax efficiency or an employee considering salary packaging, staying informed about FBT rules is essential.

The post Fringe Benefits Tax (FBT) Explained: What Employers Need to Know appeared first on Green Taylor Partners .

Building a Brand Identity to Standout in a Competitive Market

Mon, 17 Mar 2025 23:08:00 GMT

Some major businesses are able to ‘capitalise’ their brands. That means the brand has been valued and included as a balance sheet asset.

Most businesses don’t go to those lengths… but leaders who build valuable brands usually have a better chance of standing out and attracting customers and partners.

Let’s look into what makes a valuable brand.

1. Appealing core values

Values underpin brand identity. They signal what drives your decision-making, what is non-negotiable, the causes you support and the connections you cherish. Leaders should define what fundamentally matters to them and express this in a few words or short phrases. Examples include creativity, innovation, boldness, excellence and fun!

Refer back to these values when presenting the business or when making significant business decisions. If your values resonate with your target audience, you’re on your way to building a valuable brand.

2. Uniqueness

Standing out is really important, provided it’s not ‘being different for the sake of being different’. Be proud of your ‘real’ self rather than telling people what you think they want to hear. Embrace any ‘peculiarities’ instead of trying to hide them. Authenticity builds valuable brands.

3. Excellence

This refers to what you are really good at and combines your passion and mastery. You’ll be highly energised when working in your area of excellence and it will always be easy to ‘make the effort’ and overcome obstacles, which are components of brand power.

4. Enjoyment

There are probably things you love learning and talking about. This provides clues on what should underpin your brand. Enthusiasm inspires and captivates others; perfect ingredients for a powerful brand.

5. A niche

A brand is not meant to be for EVERYONE. It’s meant to be for a VERY SPECIFIC SOMEONE that you understand and know you can help. Specialisation makes for powerful branding, even if that means being a big fish in a small pond. Be the ‘go-to-person’ when a very specific need arises.

This differentiates your business and brand from the competition.

6. Visual depiction

Brands are communicated by what you say and HOW you present them. That’s why designers focus on colors, fonts, style-guides and so on, which convey an emotive identity. For example, bright colors may suggest ‘fun’ and ‘innovation’ while dark colors might suggest ‘exclusivity’.

7. Content strategy

Be consistent with the message. Get attention, then build trust by offering something of value. Stick to your niche and repeat concepts to drive them home. Include a call to action and let prospects know how they can benefit from an association with you.

8. Rivals (and friends)

Worthy competitors help you do better. Know what your rivals are saying and how you are different.

Find like-minded counterparts who could be allies. There could be potential for collaboration, especially where they operate in complementary spaces. Join together with kindred spirits to cross-promote and widen your reach. Who we associate with is part of our brand.

9. Anticipate the future

Even if you’re comfortable with where you are now, describe your vision for the future, whether that’s impact, lifestyle, legacy or community. If your proposed journey is compelling, people will want to get on board. Show what is possible and demonstrate your progress towards that endgame.

The post Building a Brand Identity to Standout in a Competitive Market appeared first on Green Taylor Partners .

Death & Taxes – What happens when I die?

Wed, 12 Mar 2025 02:43:00 GMT

There are some general rules you need to be aware of when preparing your own Estate Planning or having some role in the affairs of a deceased estate.

Inheritance

There is no tax payable on assets which pass from an Estate to a beneficiary in accordance with the deceased’s Will.

Final Tax Return

The deceased taxpayer will be obliged to lodge a final tax return based on assessable income earned between the most recent 1 July and their date of death.

Estate Tax Return

Where the deceased owned significant investment assets (eg rental properties, share portfolio, cash deposits, business interests, etc), the Estate may also be required to lodge a tax return in relation to Estate earnings from the deceased’s date of death to the next 30 June.

Whilst the assets of the deceased remain Estate assets (eg – have not been distributed to beneficiaries), the Estate will continue to be obliged to lodge tax returns.

The Estate will be taxed as a normal individual taxpayer (Medicare Levy does not apply) for up to 3 tax years.

Capital Gains Tax (CGT)

If an Estate disposes of CGT assets prior to distributing to beneficiaries, the Estate is likely to be subject to capital gains tax. The Estate “inherits” the deceased’s CGT cost base for these assets and any taxable capital gain will be included in the Estate’s tax return.

Any CGT assets which are transferred from the Estate to beneficiaries will have future CGT consequences for these beneficiaries, depending on the deceased’s original acquisition date.

CGT Exemptions – do exist for the principal place of residence of the deceased, however there are criteria which needs to be met to qualify for the exemption.

Superannuation Taxes

Any death benefits paid to spouses and/or financial dependents are exempt from tax.

However, any amounts paid from superannuation to non-dependants (such as adult children), the ATO will levy tax at 15% + Medicare Levy on the “taxable” portion of the benefit.

Summary

Avoid the potential tax “time bombs” which are ticking in the background, by doing the following:

The post Death & Taxes – What happens when I die? appeared first on Green Taylor Partners .

Tax Planning

Wed, 26 Feb 2025 02:33:00 GMT

As much as it sucks, tax is a part of life and I am sorry to say but it isn’t going anywhere!

To reduce it, you could be doing some forward planning to make informed financial decisions. Everyone can benefit from tax planning from the biggest business to an individual.

Why is tax planning important?

You want to maximize your deductions but are you up to date with all Tax Legislations?

The Tax legislation is constantly changing, and it can be hard to keep up with all the latest updates. Tax planning helps ensure that you stay compliant by minimizing your tax liability and maximising any deductions. You may be missing out on deductions you didn’t know you were eligible for.

Do you want to plan for yours and your businesses future?

Tax planning isn’t just about this year’s taxes; it’s also about planning for the future. By making smart decisions now, you can set yourself up for a lower tax bill in the years to come.

Do you want to avoid that ‘SURPRISE’ tax bill?

Have you ever received an unexpected tax bill and wondered where it came from? With tax planning, you can avoid those nasty surprises. By staying on top of your finances and cash flow throughout the year, you’ll know exactly what to expect come tax time.

Tax planning is an important part of running a successful small business. By following some tips, you can minimise your tax liability and maximise your cash flow before the end of the financial year. However, you should always consult your tax agent before making any tax-related decisions, as we can provide you with tailored advice based on your specific situation and goals.

Remember, the goal of tax planning isn’t to avoid paying taxes altogether; it’s simply to pay your fair share while keeping as much money in your pocket as possible.

The post Tax Planning appeared first on Green Taylor Partners .

Compound Interest is an investors best friend

Wed, 19 Feb 2025 04:38:00 GMT

What is compound interest?

It is the interest you get on the money you initially invest and the interest you earn on the interest you’ve already earned.

The power of compounding interest helps you save more money. The longer you save the more interest you earn. This means earning more interest on the interest you are earning.

For example, if Sally invests an initial deposit of $1,000 and it compounds at 5%, after one year Sally would make $50 and the investment becomes $1,050.

In another year her investment is $1,102 and after 5 years $1,276, 10 years $1,628, 25 years $3,386 and 50 years $11,467.

This is not a get rich quick scheme but if you stick with it and contribute regularly your investment will grow.

The best way to take advantage of this is to start early and contribute regularly.

The post Compound Interest is an investors best friend appeared first on Green Taylor Partners .

5 Ways to Stay Competitive in a Changing Market

Tue, 18 Feb 2025 00:31:00 GMT

As markets evolve, leaders need to revisit their strategies to stay competitive and thrive. This is challenging because change can be uncomfortable. A mindset change may be required to effectively respond to shifting conditions.

Each market is different, but here are five focus areas to stay competitive in a changing environment.

1. Focus on Customer Experience

Businesses can get out of touch with what customers want and need. Take the time to study the customer experience and ensure products and services are making a strong impact.

Ask your team what they think about customer satisfaction. And ask customers directly, whether formally (through surveys) or informally.

Implementing a customer relationship management (CRM) system can help a business track Client interactions and provide personalised service, resulting in improved customer satisfaction, retention and standing out among the competition.

2. Embrace Technology

Digital tools and solutions can streamline operations, improve efficiency, and enhance customer experience. They can even help an organisation reinvent its business model, like an in-store retailer who implements an e-commerce platform.

Using technology better than your competitors can create significant advantages in the market.

3. Diversify Revenue Streams

Diversifying revenue streams reduces reliance on a single source of revenue and mitigates risk. This could involve expanding into new markets, offering new products or services, or targeting new customer segments.

These options should be carefully researched and planned. Some projects may not succeed, but rest assured your competitors are facing similar challenges and risks. The businesses which best manage these risks are likely to prevail.

4. Invest in Employee Training and Development

Develop the skills and knowledge needed to succeed in a changing market. Reduce dependence on one or a few people and promote employee engagement and satisfaction. A team that learns rapidly is usually highly productive and happy in their workplace, leading to high retention.

The result is a more innovative and competitive workforce.

5. Research and Adapt to Market Trends

Conducting market research and analysing competitor activity helps a business stay informed about industry developments and take appropriate action.

A proactive approach is required. Responding to market change should form an important part of the leadership agenda.

What actions are you taking to stand out from your competition and position your business for long-term success?

The post 5 Ways to Stay Competitive in a Changing Market appeared first on Green Taylor Partners .

Farm Management Deposits:

Wed, 05 Feb 2025 02:49:00 GMT

Primary producers can smooth cashflow and tax liabilities with a Farm Management Deposit (FMD). Australia’s farmers and rural communities know that climate events such as drought, floods, and bushfires must be endured and planned for in our dry continent.

Furthermore, primary producers know drought isn’t like a flood or fire. It creeps up slowly, but when it starts to hit, it hits hard, and this is one of the reasons a Farm Management Deposits can come in handy.

What is a Farm Management Deposit (FMD)?

The FMD scheme was created as a risk-management tool to help primary producers deal with uneven profit caused by these climate events that can impact cropping, livestock, or feed availability. It allows primary producers to shift income from good to bad years in order to deal with these adverse economic events and seasonal fluctuations.

An FMD, which is a bank account much like a term deposit, is available for use by individual primary producers who have non-primary production (off-farm) income of less than $100,000. The maximum amount of funds held within an FMD is capped at $800,000 per individual. That said, separate deposits of varying amounts can be held with multiple banking institutions so long as the total of these accounts doesn’t breach the $800,000 cap. Additionally, if an individual has multiple deposits of different amounts, these can be consolidated together.

An FMD must be held on deposit for a minimum of 12 months to enable an individual deposit holder to claim a tax deduction. However, deposits can be withdrawn after the 12-month term and will be assessable as primary production income on withdrawal. Individuals must be careful if deciding to transfer their FMD’s between banks. This should always be arranged and completed by the banks themselves, so there is no risk of accidently withdrawing the FMDs (making them accessible income) and having to make new deposit, which would result in the FMDs having to be in for another 12-months before withdrawing.

Where you are affected by ‘exceptional circumstances’, natural disasters or drought declared, there is the opportunity to withdraw deposits before the minimum 12-month period. Still, individuals need to meet specific criteria to do so.

A danger of FMD’s is if the taxpayer ceases being a primary producer or dies with funds in FMD’s. At such times the FMD’s are deemed to have been withdrawn and become taxable income at the time of death or as soon as you consider to be no longer carrying on a primary production business.

Useful tax planning tool that can smooth the flow of cash

FMDs are a useful tax planning tool to help defer tax liabilities from one year to the year the deposit is withdrawn. An FMD allows the income produced in a good year to be set aside as pre-tax income for use in a less profitable year.

Another benefit of holding money in an FMD, is it allows the primary producer to smooth their taxable income over several years. In this way, they can manage an individual’s average income level for primary production averaging purposes. Although a tax timing and management tool, they do not necessarily remove the obligation of tax. In the long term generally, it is found tax is still paid at a long-term average tax rate.

It’s also crucial to weigh up the costs associated with the funds used to finance the FMD. If borrowed money is being used, consider the potential tax savings over time in comparison to the interest costs on the borrowed funds versus the interest being earned.

Primary producers should be encouraged to engage in tax planning services to ensure these strategies are implemented. If you are a primary producer, don’t hesitate to contact us to discuss the value of FMDs as wealth creation and tax minimisation strategies to support your business.

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What’s the go with PAYG instalments?

Tue, 28 Jan 2025 22:27:00 GMT

Pay As You Go (PAYG) instalments are regular payments toward your current year tax liability. The aim of them is to put aside money toward your tax bill so that when you lodge your tax return there isn’t as much to pay.

Often referred to as just ‘ instalments ’, these tax payments can apply to individuals, companies and superannuation funds earning business and/or investment income.

Individuals earning solely salary and wage income won’t have to pay instalments because tax is withheld from each payment. People and entities who are making losses also won’t have to pay instalments as they generally will not have a tax bill at the end of the year.

So, who does need to pay instalments?

The ATO will start issuing instalments for individuals if:

Companies and super funds will need to pay instalments if:

How are the amounts payable calculated?

Instalment amounts can either be calculated by the ATO or calculated by the taxpayer.

Where the ATO calculates the amount payable, a payment slip is provided by the ATO, and payment just needs to be made. Usually there are no forms to be completed or lodged.

If the payment amount seems too high or too low, it is possible to vary the amount payable.

Where the taxpayer chooses to calculate their own instalment amount, income needs to be calculated and then a percentage rate is applied to work out how much to pay. A form needs to be lodged as well, and the payment made by the due date.

Payment frequency

Instalments can be paid monthly, quarterly or annually, with quarterly being most common. Quarterly instalments are due as follows:

Primary producers are often given the option to pay just two instalments – one in April and one in July.

Monthly instalments may apply to large entities, often with income of more than $20 million per year. These are due on the 21 ^st day of the following month (i.e. January is due on 21 February).

Annual instalments can also be an option for taxpayers with lower tax payable amounts.

Delivery of instalments

This is where things get a little bit tricky with the ATO. In the past, instalments were all orange forms that were posted out, and some still are. They were easy to identify!

The ATO is now pushing for more digital communication, and their preference is for myGov, ‘ATO Online’ and ‘Agent digital’ delivery methods.

The problem we are finding with digital delivery is that clients aren’t finding out about their instalments until right on the due date, or when the instalment becomes overdue (hello text message from the ATO!).

If you are set up for myGov (personal) or ATO Online (business) delivery, please make sure to check your notifications. The myGov app is a great place to do this as it is right in the palm of your hand. ATO Online often sends an email to the contact person on the account.

For taxpayers the ATO have registered for ‘Agent Digital’, there is currently no notifications being sent to clients or accountants. This is resulting in a lot of overdue notices being issued because we don’t know instalments have been issued – and neither do clients!

The team at GTP are working on how to capture these instalments and provide notifications to clients. Unfortunately, there are no easy answers with the ATO! In the meantime, if you feel you may have an instalment due but haven’t heard anything, contact your accountant to check in.

The post What’s the go with PAYG instalments? appeared first on Green Taylor Partners .

Staff gifts, events and their deductibility

Wed, 22 Jan 2025 02:43:00 GMT

At this time of year businesses may have spent money towards employee gifts and/or events, this can lead to two potential tax issue arising from these expenditures. These issues are income tax deductibility and fringe benefits tax (FBT).

There are some important definitions to consider related to staff gifts or events, the main definition being whether the gift or event is considered as entertainment. Per the Income Tax Assessment Act (ITAA) 1997, Section 32.10 –

(1) Entertainment means:

(a) entertainment by way of food, drink or recreation; or

(b) accommodation or travel to do with providing entertainment by way of food, drink or recreation.

(2) You are taken to provide entertainmenteven if business discussions or transactions occur.

Note: These are some examples of what entertainment is:

These are some examples of what entertainment is not:

So based on the ITAA definition, if your gift or event is classified as entertainment, it is not deductible towards your business and any GST credits are also not claimable. The next issue that arises from gifts and events is possible FBT consequences.

If the expense towards employee gifts or events is a minor benefit (below $300 per person), generally FBT will not be relevant. If you are unaware of FBT or how this may affect your business regarding employee gifts or events, feel free to contact our office regarding this, as this can be a very complex area of legislation.

Some examples of the above are as follows:

Gifting an employee a voucher at the end of the year of $100, this expense would be exempt from FBT as it is considered a minor benefit (provided it is not a regular occurrence) and would be deductible to the business as it is not considered to be entertainment. The GST credits will also be claimable as it is a deductible expense (where applicable).

Providing food and drink to employees for a Christmas party (providing the average cost per head is less than $300) would not be deductible to the business as this is entertainment, FBT is most likely not relevant due to this being a minor and infrequent benefit to the employees.

You offer a golf day to employees, associates and clients, held on a weekend and the cost averages out to $320 per person, this is entertainment as it is a social function, therefore no tax deduction is available and as it is no longer considered a minor benefit, FBT will apply to the costs associated with employee participation.

As you can see, there are many factors that can affect whether staff gifts or events are considered entertainment, deductible or subject to FBT, please contact our office so we discuss this with you if you are unsure.

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Refining Accounting Processes to Save Time (and Cost) and Improve Efficiency

Mon, 20 Jan 2025 23:25:00 GMT

The Accounting function has the important job of keeping managers informed on the state of their business, while ensuring compliance with rules and regulations.

This can get complex… but establishing efficient Accounting systems and processes saves time and improves the accuracy of financial information.

What does this mean? Let’s look at ways to improve the efficiency of Accounting systems.

It may be time to review the technology (especially Accounting software) you use. Is it automating repetitive tasks such as data entry and reconciliation? Is it Cloud-based so financial information can be accessed anywhere, enabling collaboration in real-time? Selecting (or upgrading) a software can significantly reduce manual data entry and improve collaboration.

When did you last review the chart of accounts to ensure it suits your evolving business? Simplifying the chart of accounts, for example by consolidating similar accounts, helps record essential information accurately, reduces time spent on data entry and minimises errors.

Online invoicing and payment platforms expedite the invoicing process, improve cashflow and reduce the time spent chasing payments. Sophisticated invoicing systems also enable a business to offer convenient payment options, which many customers will appreciate.

Many businesses outsource Accounting functions such as payroll processing and bookkeeping. This can be cost-effective, while freeing up time to focus on strategy and planning. In addition to reduced overhead costs, outsourcing enables greater efficiency as people dedicate themselves to specific tasks.

A 6-month review of Accounting processes will identify inefficiencies and areas for improvement. This also helps a business stay abreast of rapid changes and technology advancements. Usually, these reviews result in changes which increase efficiency, for example through a reduced monthly closing time.

Processes matter… but effective employees also improve efficiency and accuracy in Accounting. Equip your team with skills related to Accounting software, tools, business reporting, financial risk etc. through comprehensive training.

If the whole team shares an interest in improvement, a business can easily generate and implement ideas which lead to greater efficiency. Get together with all stakeholders in the Accounting function to assess what is working and not working. Base ideas and decisions on data where possible.

There’s no doubt streamlined Accounting processes save time and costs while generating better outputs for management.

How successful are your Accounting processes and systems? How can you improve?

The post Refining Accounting Processes to Save Time (and Cost) and Improve Efficiency appeared first on Green Taylor Partners .

Setting Business and Personal Goals for the Year Ahead

Thu, 12 Dec 2024 23:39:00 GMT

Have you set business and personal goals for the coming year?

Successful business people often say having clear goals is instrumental to their success. They relish thinking about the exciting things they can achieve and enjoy imagining their lives once those goals are attained.

So why doesn’t everyone take goal-setting more seriously?

It could be that setting goals is – to some extent – about predicting the future, which is filled with uncertainty. Who can really say what the economy, world and business climate will look like in 12 months? Another obstacle may be the need to get buy-in from partners, key employees, customers, lenders, investors etc.

Here are some thoughts on effective goal setting which can help overcome these challenges.

1. Think of goal-setting as a process

Get an appropriate group of stakeholders together and set time aside to think about the options. Generate ideas and then allow some time for these to germinate. You may have to go through this cycle a number of times before arriving at an exciting and meaningful set of goals.

2. Less is more

Setting dozens of goals is a recipe for failure. Goals usually relate to strategic objectives (versus more tactical ‘tasks’). One to three goals is usually a good number and they may need to be prioritised.

3. Use the SMART framework

While simple, this well-established framework reminds us that goals should be:

Specific: Even someone unacquainted with your business should have absolute clarity on what you expect to achieve. Writing goals down forces us to get suitably specific.

Measurable: How will you know when you succeed? ‘Numeric’ goals (like a target revenue number) provide a lot of clarity. There’s no place for vague goals.

Attainable: Think what will be required to achieve the goals. Ensure you have the necessary resources or skills AND the buy-in from others, if required.

Relevant: Goals should be consistent with the grander mission, vision and values. For example, if you have ambitious growth goals, is now the time to take that three month sabbatical you’ve been considering? Maybe… but the goals should support the broader purpose.

Timely: The time frame should be specified and may vary considerably, depending on the goal. Examples of short term goals include implementing new business software, improving a business process (like invoicing) or launching a new website. Long term goals might involve growing revenue or the number of customers, launching new products, acquiring a business or appointing a leadership team.

Goal setting helps leaders stay on track, which has positive outcomes for employees and other stakeholders (investors, customers, vendors etc.)

Have you made time to set exciting and meaningful business and personal goals?

The post Setting Business and Personal Goals for the Year Ahead appeared first on Green Taylor Partners .

EASY & REWARDING Superannuation Offsets (Tax Breaks)

Wed, 27 Nov 2024 02:24:00 GMT

There are two largely overlooked superannuation incentives available each year for lower income earners. Both of them are easy to access and the tax break available on your outlay makes these strategies extremely rewarding.

SPOUSE CONTRIBUTION TAX OFFSET

An amount of up to $540 per year is available if you make a super contribution on behalf of your spouse, if their income is below $37,000.

The offset is worked out as 18% of a contribution up to a maximum of $3,000. The contribution is treated as a “non-concessional” contribution in the spouse’s superannuation account.

The spouse income threshold of $37,000 includes:

If the spouse’s income exceeds $37,000 the offset phases out to $0 once it reaches $40,000.

This offset can be claimed in your personal tax return.

SUPERANNUATION CO-CONTRIBUTION

An amount of $500 is available if you make personal “non-concessional” contributions to your super fund of $1,000.

The offset is worked out at 50 cents for every dollar up to $1,000 contributed. In order to qualify the common eligibility requirements are:

You do not have to claim this in your tax return. The Government will automatically pay this offset to your superannuation account once your tax return is lodged and they match your tax return information with your superannuation fund reporting.

Simple strategies, but an excellent way to generate extra savings and a great return on your investment. Then, let the power of compounding take over to make an enormous difference to your savings in the long-term!

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5 Ways to Improve Efficiency and Productivity in Business Operations

Tue, 26 Nov 2024 01:58:00 GMT

Businesses have a better chance of THRIVING when there’s a focus on operational efficiency and productivity. This reduces costs, improves customer satisfaction and results in a competitive edge.

Here are 5 practical strategies applicable in most businesses (and industries) which can boost efficiency, productivity, profitability and growth.

1. Leverage Automation

Automation transforms routine tasks, like payments, invoicing and some aspects of customer service. Seamless, low-touch processes free up valuable time for use in more strategic initiatives.

Take a small online retailer, for example, which has automated inventory management. New software reduces errors but also saves around 20 hours per week of administrative work. Fulfillment speed has improved so the company can process orders faster, increasing customer satisfaction.

2. Adopt Lean Principles

Essentially, this means minimising waste and maximising value through continuous improvement across all business functions. It is often associated with manufacturers and their production process. That said, any business can benefit from actively reducing costs, minimising waste and improving processes, especially those which give the customer a better experience.

3. Invest in Employee Training

Skilled employees are more productive and can adapt to new technologies and processes more effectively. Training is a long-term investment in the team’s capabilities and morale but there can be short term gains in, for example, project efficiency, accuracy, completion rates and Client satisfaction.

4. Utilise Cloud Computing

Cloud computing is no longer new, and offers scalable resources, from storage to software, accessible from anywhere, improving collaboration and data accessibility.

For instance, a medium-sized environmental consultancy moved its data and applications to the cloud. This reduced IT costs by eliminating the need for on-premise servers and maintenance. It also boosted team productivity due to faster access to data and streamlined collaboration among remote team members.

5. Use Continuous Feedback Loops

Regular feedback from employees and customers provides valuable insights for improvement. This should not be a one-time event but a recurring activity.

For example, businesses with periodic staff and customer feedback sessions can promptly address customer concerns while increasing employee engagement, as the team feels more involved and valued.

What difference could these strategies make in your business?

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Are your legal fees deductible?

Wed, 20 Nov 2024 04:35:00 GMT

This is something a lot of business owners or individuals would not have come across, but it is important to be aware of.

The deductibility of legal expenses is determined the same way as other business expenses. That is, if they are necessarily incurred in earning your business income and are not capital, private or domestic in nature, then they should be deductible expenditure.

Generally, the ATO allows deductions for legal expenses incurred while earning assessable income, including wages, business income, interest or rental income.

Tax deductible legal fees are generally related to this assessable income, business operations or defending from legal proceedings that could affect assessable income.

Legal fees necessarily incurred in business operations are generally tax-deductible, as they are considered necessary expenses to maintain, operate, or expand a business. Some examples of these would be:

There are also certain legal costs that are deductible under special provisions. Some of these include:

Some legal fees incurred through business are not tax-deductible, such as:

Personal legal fees, such as those related to divorce proceedings, drafting wills, or personal injury claims, are not tax-deductible in Australia. For individual taxpayers, legal fees can only be considered deductible if they are directly linked to generating income. This generally includes:

Some legal expenses, although typically not deductible due to being capital or private in nature, can be deducted under specific tax provisions, such as:

As you can see, this is a very complex area of the income tax legislation and if you are unsure whether your legal fees are deductible or not, please contact our office so we advise on your legal expenditure.

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Demystifying GST Codes: A Guide for Small Business Owners

Tue, 12 Nov 2024 22:14:00 GMT

For those businesses registered for Goods and Services Tax, managing the GST can be difficult. Picking the right GST codes is one of the most challenging parts of doing the books. These codes are essential for correctly tracking and reporting GST on transactions, ensuring compliance with tax regulations, and avoiding potential fines.

What Are GST Codes?

GST codes are used in accounting software’s to classify transactions based on their GST treatment. Each GST code indicates whether a transaction includes GST, or whether it is GST-exempt. By assigning these codes to each transaction, you accurately calculate the total GST collected and paid, making it easier to complete Business Activity Statements (BAS) and comply with tax obligations.

Accounting Software

What a GST code actually looks like depends on your accounting software. Each software tends to use its own codes. Here are two examples.

Common GST Codes Explained

Understanding the key GST codes is the first step to effective GST management. Here are some of the most commonly used GST codes in business accounting:

This code applies to amounts paid or sale proceeds for capital assets, such as plant and equipment, motor vehicles, land and buildings. This code is not required for Simplified BAS forms.

Used to record purchases from suppliers who have an ABN but are not registered to collect GST.

Why Are GST Codes Important?

Correctly applying GST codes is crucial for several reasons:

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What is Personal Services Income?

Thu, 31 Oct 2024 23:16:00 GMT

We have all heard of it but most likely ignore it!

Is more than 50% of your income generated from a contract due to your personal efforts or skills? If so, your income maybe considered Personal Services Income (PSI).

What is it?!?

Personal Services Income, also known as “PSI” is income when more than half of the income you receive from a contract as a reward for your personal efforts or skills, rather than being generated by the use of assets, the sale of goods, or from a business structure.

You can receive PSI in almost any industry, trade or profession.
Common examples include but are not limited to:

As PSI is mainly a reward for an individual’s personal efforts or skills, only individuals can earn PSI. Individuals can earn PSI either directly as a sole trader , or through another entity such as a company, partnership or trust . When an individual earns PSI indirectly through another entity, that entity is referred to as a ‘personal services entity’ (PSE).

What income is not PSI?

Certain types of income are not PSI. There are four main attributes that determine this:

After considering these factors, if we can determine that the income is generated from a business structure, then that income is not PSI – and not a PSE.

What to do when the PSI rules apply to you

If you are earning PSI, then you need to report this as PSI in your tax return even if you are a personal services business (PSB) and the PSI rules don’t apply to you. How you report your PSI depends on whether the PSI rules apply to your income, and whether you operate as a sole trader, company, partnership or trust.

As there are many factors to consider, each individual’s circumstances are different. If you think the PSI rules may apply to you or you would like more information, please give us a call and discuss it with your accountant today.

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5 Critical Financial Metrics to Monitor in a Small-Medium Business

Mon, 21 Oct 2024 23:07:00 GMT

For business owners aiming for growth and stability, keeping track of critical financial metrics is a good basis for deciding strategy.

Here are five essential financial metrics that are of value to most leaders. They can, of course, be supplemented by other metrics which are especially suited to your business.

1. Revenue Growth Rate

This is the most straightforward indicator of business health. Tracking monthly, quarterly, and yearly revenue growth demonstrates market demand, and is a basis for future planning.

For example, a software-as-a-service (SaaS) company tracked the revenue growth rate over the past three years. In the first year, revenue grew by 20% due to the launch of a new product feature. In the second year, revenue growth accelerated to 35% as the company expanded into new markets. However, in the third year, revenue growth slowed to 10% as competition intensified.

By closely monitoring these trends, the company was able to adjust its strategies, focus on customer retention, and develop new products, ensuring sustained growth and market relevance.

2. Profit Margins

It is not just about how much money is coming in, but how much is retained as profit. Understanding gross, operating, and net profit margins can pinpoint where costs can be trimmed, or prices adjusted.

For example, a retail chain increased its gross profit margins by 5% through strategic pricing adjustments and inventory management. This improvement led to a 20% increase in net profit, allowing the company to reinvest in store renovations and customer experience enhancements.

3. Cash Flow

A business can be profitable on paper but still struggles if cash is not available when needed. Monitoring cash flow ensures there is enough liquidity to cover operational expenses and invest in growth.

For example, a small business improved cash flow by 25% by renegotiating payment terms with suppliers and implementing tighter expense controls. This increased liquidity enabled the business to hire a marketing professional to pursue growth opportunities and expand its market presence.

4. Debt-to-Equity Ratio

This metric provides insight into financial stability. A high ratio might indicate over-reliance on borrowing, while a low ratio suggests a strong equity position.

For example, a manufacturing company reduced its debt-to-equity ratio from 1.2 to 0.8 by refinancing high-interest debt and using excess cash to pay down liabilities. The improved financial flexibility allowed the company to pursue acquisitions and invest in new technologies.

5. Return on Investment (ROI)

ROI measures the profitability of an investment relative to its cost. Calculating ROI for different aspects of the business (e.g. marketing campaigns, equipment purchases, etc.) can help assess the effectiveness of investments and make informed decisions about future investments.

For example, a software company achieved a 300% ROI on its digital marketing campaign by targeting high-value customer segments and optimising ad spending. This resulted in a significant increase in sales and brand awareness, driving long-term customer loyalty and revenue growth.

Keeping these metrics in check can provide invaluable insights into the financial health and growth trajectory of a business. Regularly monitoring and analysing these figures paves the way for informed decisions and a robust financial strategy.

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WHEN SHOULD YOU CONSIDER LIFE INSURANCE PRODUCTS?

Tue, 15 Oct 2024 23:35:00 GMT

If you’re experiencing a major milestone, it might be the right time to reassess your

life insurance needs.

Major life events often prompt people to take out life insurance products, including having a baby, taking out a mortgage, buying a home and getting married.

YOUR FIRST JOB

Starting your career may not seem like the right time for life insurance products, but an illness or injury can disrupt your income signiﬁcantly. Income protection insurance provides a regular income when you can’t work due to serious illness or injury, which can help to cover essential living expenses like rent or the cost of a carer.

MARRIAGE OR A SERIOUS RELATIONSHIP

Entering into marriage or a serious relationship often means shared ﬁnancial responsibilities. Life insurance can help to provide peace of mind, ensuring that in the event of illness or death, you and your spouse can get peace of mind knowing that you are more ﬁnancially secure without needing to rely solely on savings or credit.

RAISING A FAMILY

When starting or growing your family, considering life insurance can be an important step. While superannuation may include some life insurance, it might not be sufﬁcient to cover the costs associated with raising a family if you are diagnosed with a terminal illness or pass away. Life insurance can help to protect your dependents against ﬁnancial uncertainty.

TAKING OUT A MORTGAGE

Consider who will handle the mortgage payments if something happens to you or your spouse. Life insurance products can offer ﬁnancial protection when buying a house, securing your ﬁrst home loan or increasing your mortgage, ensuring that funeral expenses and/or loss of income are more manageable for your family.

RETIREMENT

While the need for life insurance may not be as obvious once the mortgage has been paid and the children grown up with their own families, there are still several good reasons to hold on to it or even take it out. Having life insurance can offer additional ﬁnancial security and peace of mind in the event you are diagnosed with a terminal illness or sadly pass away.

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Are you a wage earner and undertaking additional study?

Tue, 08 Oct 2024 22:57:00 GMT

If you are currently undertaking additional study, attending work conferences or seminars that relates directly to your job, you may be eligible to claim certain expenses as deductions against your assessable income.

Types of expenses you can claim:

Types of expenses you can’t claim:

To be able to claim the above expenses, you need to be able to establish a direct link between your studies and your CURRENT income earnings operations.

You need to be able to prove that the studies will either:

It is all about your efforts towards self-improvement and development

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Repairs, Maintenance, Capital Improvements and Initial Repairs: A Fun Guide for Property Investors

Tue, 01 Oct 2024 22:27:00 GMT

Navigating property expenses can be tricky, but knowing the difference between repairs, maintenance, capital improvements and initial repairs is key to maximizing your tax deductions. Here’s a fun and simple breakdown to help you get it right!

What Are Repairs?

Repairs are all about fixing what’s broken or worn out to get things back to their original state . For rental properties, repairs keep the property as it was when you bought it. Examples include:

The best part? You can fully deduct repair costs in the year you pay for them. So, if you repair something this year, you can claim the whole amount on your current tax return.

What Is Maintenance?

Maintenance is like regular check-ups for your property. It’s about keeping things in good shape and preventing issues before they start . Examples include:

Like repairs, maintenance costs can also be fully deducted in the year you pay for them. Just make sure the property is used to generate income to claim these expenses.

What Are Capital Improvements?

Capital improvements are major upgrades that boost your property’s value or extend its life . They’re treated differently for tax purposes. Examples include:

If a capital improvement costs more than $300, it must be depreciated over time. This means you’ll deduct a portion of the cost each year based on the asset’s effective life. For instance, if you install a new tile roof costing $20,000 with a lifespan of 40 years, you’ll depreciate it at 2.5% per year.

Capital improvements fall into two categories:

What Can’t You Claim on Your Investment Property?

You can’t claim costs for fixing damage that existed when you bought the property , whether you knew about it at the time or not. This is known as initial repairs .

Initial Repairs

These repairs should be treated as capital expenses, which means they are added to the property’s cost base. This helps reduce your capital gain when you sell the property but doesn’t allow you to claim them against your taxes in the first year.

Examples of Initial Repairs:

Quick Reference for Tax Deductions:

Understanding these distinctions will help you make the most of your deductions and keep your tax filings in good order.

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Why would I consider Private Health Insurance?

Wed, 25 Sep 2024 05:16:00 GMT

In Australia, private health insurance is not just about securing better healthcare options; it also plays a significant role in tax obligations. Here is why having private health insurance can be beneficial for your tax situation:

When considering Private Health insurance for tax purposes, the coverage referred to is Hospital coverage only. Having Ancillaries does not benefit or affect the items below. Also be aware where you are a family, all family members (referred to as dependants) must be covered by the hospital cover.

1. Avoiding the Medicare Levy Surcharge (MLS)

The Medicare Levy Surcharge (MLS) is an additional tax imposed on high-income earners who do not have an appropriate level of private hospital cover. If your family income exceeds a certain threshold (currently $97,000 for singles and $194,000 for families), you could be paying an extra 1% to 1.5% of your income in MLS. By taking out private health insurance, you can avoid this surcharge and potentially save money. However, you must consider the cost of the cover versus the additional Medicare costs, versus the benefit of having the cover.

2. Lifetime Health Cover (LHC) Loading

Lifetime Health Cover (LHC) loading is a government initiative designed to encourage people to take out private hospital cover earlier in life. If you don’t have private hospital cover by the 1st of July following your 31st birthday, you’ll pay a 2% loading on top of your premium for every year you are over 30 when you do take out cover. This loading can add up quickly, making it more expensive to get insured later in life. By getting private health insurance early, you can avoid these additional costs.

3. Private Health Insurance Rebate

The Australian Government offers a rebate to help with the cost of private health insurance premiums. This rebate is income-tested, meaning the amount you receive depends on your income and age. For many, this rebate can make private health insurance more affordable and reduce the overall cost of premiums. Be mindful of your incomes as they creep up, since the rebate reduces and certain income levels and we find many clients claiming the full rebate when paying the premiums, just to have receipt a payable tax assessment as a result of repaying some or all the rebates.

4. Non-Tax related benefits

While direct tax deductions for medical expenses were phased out years ago, having private health insurance can still indirectly benefit your financial position. By covering a broader range of medical expenses through your insurance, you can reduce out-of-pocket costs, which can be financially advantageous. Having health insurance can significantly reduce the wait time and access to specialist medical advice and hospital admittance, especially where the needs is considered elective or non-life threatening.

Conclusion

Private health insurance in Australia offers more than just peace of mind and access to a wider range of healthcare services. It can also provide significant tax benefits, helping you avoid additional surcharges and take advantage of government rebates. By understanding these financial incentives, you can make a more informed decision about your health insurance needs and potentially save money in the long run.

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7 Practical Strategies for Effective Working Capital Management

Tue, 24 Sep 2024 01:17:00 GMT

What is ‘working capital’ ? And how do leaders effectively manage it?

This refers to managing the company’s short-term assets and liabilities , so the business has the liquidity to meet short-term obligations and fund its day-to-day operations.

Here are some practical strategies to strengthen a business through astute working capital management.

1. Get to Know Your Working Capital Ratio

The Working Capital Ratio (or current assets divided by current liabilities) gives a good indication of the liquidity position. A ratio above 1 indicates enough assets to cover short-term liabilities.

For example, a manufacturing business may set a target ratio of 1.5 or higher. If below that level, corrective action is considered, like adjusting inventory levels or renegotiating supplier payment terms.

2. Understand the Impact of Inventory Levels

Excess inventory ties up cash. Minimise ‘carrying costs’ while ensuring there’s stock to meet customer demand.

For example, a retail chain uses inventory management systems to track sales data in real time. Understanding sales patterns and adjusting inventory accordingly, reduces excess inventory which can greatly improve cash flow.

3. Renegotiate Payment Terms with Suppliers

Some suppliers will agree to more favorable payment terms or even discounts to retain your business. Extending payment terms gives more time to pay bills and improves cash flow.

For example, a construction company extended payment terms with its main supplier, resulting in improved cash flow and the ability to fund immediate projects to completion.

4. Encourage (or Incentivise) Early Payment by Customers

Ensure customers pay promptly and consider incentives for early payments, including discounts. Invoices must be sent on time so customers have no excuses!

For example, a marketing agency implemented an automated invoicing system that sends invoices immediately after projects are completed. The average collection period became 30% faster, improving cash flow and reducing bad debt.

5. Manage Accounts Payable

Delay payments to suppliers without harming relationships. Be aware of late payment penalties that could offset any benefits.

For example, A technology company takes advantage of grace periods offered to loyal customers by certain suppliers resulting in improved working capital without disruptions to its supply chain.

6. Utilise Accurate Cash Forecasts

Cash flow forecasts help predict cash needs and shortfalls, so they can be addressed well in advance.

For example, a restaurant chain forecasts cash on a quarterly basis. Seasonal shortfalls are identified and managed by adjusting marketing and labor expenses.

7. Consider Financing Options

Credit or short-term loans increase working capital, used to cover short-term obligations or growth.

For example, a retailer experienced delayed customer payments. Securing a line of credit enabled quick access to funds for immediate financial obligations and to maintain smooth operations.

Use these strategies to improve the understanding and management of business working capital, ensuring the liquidity needed to operate efficiently and grow.

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Residential Rental Loans – Interest Deductibility, Offset & Redraw Facilities

Tue, 17 Sep 2024 23:13:00 GMT

One of the most common incorrectly claimed deductions against rental property income is interest . If you borrow to purchase a rental property any interest you incur on that loan will generally be tax deductible. But what if that loan has a redraw facility – what happens if redraw against the loan balance? Is the interest still tax deductible? The answer – it depends!

In this instance every transaction needs to be considered because if the redrawn amount is used for private purposes , then the interest deduction needs to recalculated to take into account the now private portion of the loan.

Example :

Bill has borrowed $400,000 to purchase a rental property. The property is rented for the entire duration of the loan. After 10 years the loan has been paid down to $200,000. Bill then decides to redraw a further $200,000 to pay off a second loan not related to the rental property. Now, only 50% of Bill’s loan relates to the rental property. Consequently, only 50% of the interest component will now be deductible against the property’s rental income. This takes effect for remaining life of the loan or until another draw down or re financing has been made.

Every time a redraw transaction is used for a private purpose, the deductible portion of the loan interest must be adjusted.

This is important to consider when thinking about re-drawing to pay for everyday costs such as groceries and bills, as it will continue to result in a lower interest deduction. There are 2 ways this issue can be addressed, so you can continue to maximise your loan interest deduction:

An offset account is a completely separate account which can be used to accumulate savings and excess cash reserves. The beauty of an offset account is it works exactly the same way as a redraw facility, as the balance of the offset account is used to reduce the loan balance when calculating interest.

The main difference though is when you withdraw money from your offset account, regardless of whether this is for a private purpose, it does not affect your ability to claim any interest deduction on the loan. This also means you do not have to do calculations each time a private withdrawal from the offset account (as you would with a redraw facility).

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Victoria’s Vacant Residential Land Tax

Wed, 28 Aug 2024 04:43:00 GMT

The Vacant Residential Land Tax (VRLT) is in addition to the current Land Tax and short-term rental tax property owners are now facing.

The current Vacant Residential Land Tax applies to residential properties left empty for more than six months and have not undergone significant renovation/reconstruction in the inner and middle suburbs of Melbourne. From 1 January 2025, the vacant residential land tax will be extended to regional Victoria.

The below are what the SRO considers to be vacant land;

There a four exemptions available;

The tax rate will remain at 1% of the asset’s capital improved value (CIV), meaning $300,000 of vacant residential property will have an annual tax of $ 3,000. You can find your land’s capital improved value on previous council rates notice or a prior-year vacant residential land tax assessment. The tax rate will increase to 2% for the second year vacant and 3% for the third year vacant. There is a concessional tax rate of 1% for new dwellings unoccupied for less than 3 years.

Individual property owners are responsible for notifying the State Revenue Office of any vacant residential properties.

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Building a Cash War Chest for the Business – 6 Essential Steps

Tue, 27 Aug 2024 00:40:00 GMT

A cash war chest or financial buffer helps a business weather disruptions like reduced sales, unexpected expenses, or economic downturns. Cash reserves help leaders avoid drastic measures such as debt or service cuts and provide a sense of security and flexibility.

Here are six practical steps leaders can take as they establish and maintain cash reserves:

Assess Your Current Financial Situation

What’s the current financial position? Calculate cash reserves, outstanding debts, along with monthly revenue and expense forecasts. This gives a clear picture of where the business stands and what cash can be allocated to building a buffer.

In some cases, accumulating cash reserves may require a cost-cutting strategy by reducing unnecessary expenses or renegotiating contracts. In other cases, a modest price increase could yield surplus cash for allocation to cash reserves.

Set Realistic Savings Goals

What financial cushion will provide comfort? This can be expressed as a multiple of expenses, for example the reserve fund could equal 3 months’ of payroll expenses. Alternatively, you could allocate a percentage of monthly profits to cash reserves. Clarity increases the chance of attaining the goal.

Remember, you can start small and gradually increase savings as the business grows.

Think Long-Term (Expenses)

Developing a reserve fund or financial buffer is a long-term initiative. Therefore if the funds are raised by reducing expenses, choose activities which will not compromise the quality of products or services or otherwise adversely affect business performance. For some businesses, there may be opportunities to trim marketing, operations or overhead expenses.

Think Long-Term (Revenue)

Likewise, building cash reserves may require finding additional revenue streams, perhaps through new products or services, expanding into new markets, or improving sales and marketing strategies. These are not trivial decisions and should be taken with a long-term horizon in mind.

Create Policies which Govern the Reserve Fund

Policies should govern how reserve funds are accessed, such as gaining necessary approvals and using the funds for very specific purposes. Leaders should acknowledge that these funds are NOT part of operating cash, which would defeat the purpose of establishing a cash reserve.

Monitor and Adjust Your Plan

Periodically review financial status to ensure the reserve fund and associated policies are supporting the business. Adjust savings and spending habits accordingly and increase the frequency of these reviews if the business is facing significant risk.

A culture of building financial resilience in the form of cash reserves strengthens a business in the long-term. Consider these strategies for a brighter financial future for your business!

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Every Day I’m Hustlin’

Wed, 21 Aug 2024 01:08:00 GMT

With the rise of social media like TikTok, the thousands of ideas are spread by the hour on how to earn extra coin on the side. Being part of the ‘Gig’ economy such as ridesharing, freelancing or having a ‘Side Hustle’ like drop-shipping and social media content creation might earn you some spare cash.

If you’re earning money through a side hustle or gig work, it’s important to understand your tax obligations with the ATO. Here are some key points to keep in mind:

Tips for Managing Your Side Hustle Tax

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SUPERANNUATION $3 MILLION DOLLAR RULE – What is happening?

Tue, 13 Aug 2024 23:16:00 GMT

In June 2023 I wrote a blog article in relation to Labor’s proposal to introduce a new 15% tax on the superannuation savings of taxpayers with balances over $3.0m.

This tax, if and when it becomes law, will be known as Division 296 tax.

In short, an extra 15% tax will apply on earnings on the proportion of a taxpayer’s superannuation balance above $3.0m.

This tax will be introduced from 1 July 2025 and will be measured against taxpayer’s who have Total Superannuation Balances of $3 million on 30 June 2026.

Labor introduced the legislation to Parliament earlier in the year, hoping to have it finalised as law prior to 30 June 2024. At the date of writing, it is still not law!

The contentious issue with the drafting of the legislation is the definition of earnings.

Currently, the proposed legislation effectively defines “earnings” as a change in a member’s account balance. This will result in the proposed tax applying to movements in asset values, or unrealised capital gains !

As I wrote in my Blog 14 months ago, if you are having to pay tax on an unrealised capital gain, you will have to find the cash from somewhere to pay the tax!

Many of our Self-Managed Superannuation Funds (SMSFs), hold property such as farming land, commercial & residential property as well as share portfolios. Increases in these values, regardless of whether they are sold, will now meet the definition of earnings and be subject to Division 296 tax.

Where is it now?

The SMSF Association has been lobbying the Senate cross bench, including key Senators and the Shadow Treasurer outlining the extremely poor drafting of the legislation and the unfair and unintended consequences which would occur.

The SMSF Association has now got the National Farmers Federation (NFF) and Council of Small Business Organisations Australia (COSBOA) onside, urging Parliament to scrap or significantly amend the legislation. The lobbying continues in earnest!

At this stage we have no further news. As soon as it becomes law, those taxpayers affected will need to get advice to confirm how they will be impacted.

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Children’s bank accounts

Wed, 07 Aug 2024 22:52:00 GMT

You may wonder why your child has been taxed 47% on the interest on their bank account.

If your child is under 18 years old and has a savings account, you may be subject to interest.

Who declares interest?

Who uses or owns the funds in the account determines who declares the interest (no matter what type of account it is or the name of the account holder).

You need to consider who:

If you provide the money and spend it as you like, you must include the interest in YOUR tax return.

If you hold a joint account, interest earned is divided equally among all account holders, who each declare their share of the income on their tax return.

If the amount deposited is considered excessive, you will need to examine it carefully to decide where the money came from and whose money it is.

Income from a savings account is treated differently from the income received from shares.

Quoting a TFN

A child can apply for a Tax File Number (TFN) – there is no minimum age to have a TFN, and children are not exempt from quoting a TFN.

When deciding whether to quote a TFN and whose TFN you should quote, you need to consider:

If the person who owns or uses the fund is the parent, as trustee for the child and

Your child’s age

If your child is less than 16 years old, special rules apply to their income from a savings account. When determining their age, children are treated as being under 16 years old until the end of the calendar year in which they turn 16.

If your child is:

If you have a joint account between an adult and a child aged under 16 years, the same rules apply as those for a 16 or 17-year-old.

Amount of interest earned

The withholding tax is calculated on the total interest earned – not just the amount above the threshold ($420 or $120, depending on their circumstances).

Where a deposit has a term of less than one year, or where interest is paid more than once per year, we apply a daily pro-rata calculation of the threshold ($420 or $120 depending on their circumstances).

Lodging a tax return

If your child has had PAYG tax deducted, you will need to lodge a tax return on their behalf if they wish to claim any refund owed.

If your child does not have a TFN, you will need to get one before you can lodge a tax return on their behalf.

Interest accrued

Interest from a bank is part of your assessable income for the year. Even if the funds earning the interest were not subject to tax, the interest accrued is and must be reported in your tax return. Who declares the interest accrued on a child’s bank account, is outlined above.

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Australian Government Parental Leave Pay changes from 1 July 2024

Tue, 30 Jul 2024 22:54:00 GMT

There are a few changes to the Australian Government’s Paid Parental Leave Scheme from 1 July 2024. Summarised below they are:

Your child’s date of birth or adoption date determines how many days of Parental Leave Pay you can get. The scheme has been increasing the number of weeks/days of Parental Leave Pay from 1 July 2023 to 1 July 2026. Below outlines the future entitlements for families:

If you’re sharing the Parental Leave Pay days and your partner wants to use their reserved days, they must be used within 2 years of your child’s birth or adoption date.

Services Australia can be flexible with how and when you take your Parental Leave Pay. For more information, head to their website https://www.servicesaustralia.gov.au/parental-leave-pay

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A business checklist for Tax Day

Tue, 23 Jul 2024 22:42:00 GMT

Now that the 2024 financial year has come to an end, it is time to start thinking about preparing for your year-end tax work. There are many things to think about when trying to prepare for your business’s tax and it can get overwhelming when you aren’t sure what you need to provide.

So here is a simple list to help you get started on what information to gather for us to prepare and lodge your business’s financials and tax returns efficiently.

All business types:

Non-primary producers:

Primary Producers:

Any further information we require, we will get in contact with you.

A personal checklist for Tax Day:

Preparing for an individual tax return can be challenging, especially when it comes to knowing what information to collect. To assist you, we have a guide for personal tax returns available on our website. https://greentaylor.com.au/tax/

Hint – make sure you keep supporting documents such as receipts and invoices to claim deductions.

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Superannuation changes as of 1 July 2024

Wed, 17 Jul 2024 03:30:00 GMT

As of 1 July 2024, several changes have been made to Superannuation payments that impact employees and business owners.

Superannuation Guarantee rates go up to 11.5%

Your employer must contribute 11.5% of you ordinary time earnings salary in 2024-2025 into your super fund. This contribution is known as the Superannuation Guarantee (SG) contribution. The SG contribution rate is legislated to rise again to 12% on 1 July 2025.

Super Concessional Contributions

Contributions made by an employer on an employee’s behalf, including salary sacrifice, are considered super concessional contributions, which are tax deductable.

Super concessional contributions are usually made personally by the employer or the employee to an employee’s super account.

Concessional Contribution Types

Concessional contributions fall into 3 categories:

From 1 July 2024, concessional contributions will be capped at $30,000 instead of $27,500.

Contributions after-tax non-concessional contributions

Employees who make personal, after-tax contributions can contribute more to their super from 1 July 2024, as the annual contribution cap is has increased from $110,000 to $120,000.

If you are under 75 years old and your total super balance was less then $1.9million on 30 June, you

can contribute after tax.

Superannuation Changes Summary
The below table shows the changes to superannuation that are effective on 1 July 2024, compared to 2023/2024 rates.

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Tracking the Right Key Performance Indicators (KPIs) for Your Business

Tue, 16 Jul 2024 23:55:00 GMT

It’s critical for businesses to monitor their performance effectively. But there is no single list of KPIs which apply to all businesses. Here are some guidelines when choosing KPIs suited to your business.

Restate Your Business Goals

KPIs should directly align with your business’s short-term and long-term goals. For instance, if your goal is to increase revenue, you might track KPIs related to sales growth. If your goal is cost reduction, you’ll track monthly expenses by category.

Consider Industry KPIs

Which industry-specific KPIs are commonly used in your sector? For instance, a retail business may focus on same-store sales growth, while a software company might prioritise monthly recurring revenue (MRR). A consulting firm tracks employee utilisation rates and a manufacturer should be interested in gross profit percentage.

KPIs Should be Actionable

KPIs should indicate whether adjustments are needed to improve performance. For example, if the customer churn rate is high, you should take action to improve customer retention.

Ensure KPIs are Measurable

Ensure that the KPIs can be quantified accurately and consistently. KPIs should provide clear, numerical data that can be easily tracked over time.

Set Benchmarks and Targets for Each KPI

Compare your performance against industry benchmarks or historical data. This helps you understand how well you are doing and what needs improvement.

Consider Your Current Financial Position

If your business is in a growth phase, you might focus on KPIs related to profitability and cash flow like Monthly Recurring Revenue (MRR), Annual Contract Value (ACV), or Website Traffic. If you’re in a cost-cutting phase, KPIs related to operational efficiency may be more relevant.

Customer-Centric KPIs

Customer-centric KPIs like Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), or Net Promoter Score (NPS) can provide insights into the health of your customer relationships.

Operational Efficiency

KPIs related to efficiency and productivity can help you manage costs and resources effectively. Examples include Inventory Turnover, Employee Productivity, or Manufacturing Cycle Time.

Marketing and Sales

KPIs include Conversion Rate, Customer Acquisition Cost, Monthly Recurring Revenue (MRR), Sales Growth, or Lead-to-Customer Conversion Rate.

Employee Performance and Satisfaction

Employee Turnover Rate, Employee Satisfaction Score, or Training and Development Investment can reflect your company’s internal health.

Manage Risk

KPIs related to risk management, like Debt-to-Equity Ratio or Days Sales Outstanding (DSO), are especially important for financial stability.

Regulatory and Compliance KPIs

Ensure you are compliant with industry-specific regulations, and track KPIs related to compliance, like Days of Inventory on Hand for food businesses.

Innovation and Product Development

Depending on your focus, you might track KPIs like New Product Launch Success Rate or Research and Development (R&D) Investment.

Environmental and Social Responsibility

KPIs related to sustainability and corporate social responsibility may be important for both ethical reasons and customer appeal. Examples include Carbon Emissions or Percentage of Sustainable Suppliers.

Whichever KPIs you choose, make sure they provide meaningful insights that support your business’s growth and development. Reevaluate and adjust your KPIs as your business evolves and your goals change.

The post Tracking the Right Key Performance Indicators (KPIs) for Your Business appeared first on Green Taylor Partners .

Payroll Tax

Tue, 09 Jul 2024 22:11:00 GMT

What is it?

Yes – another tax…

It is a state/territory tax . Not all businesses have to pay payroll tax. You must pay when your total Australian wages are over the tax-free threshold for your relevant state or territory. Thresholds and tax rates vary between states and territories. As we are based in Victoria, I am going to focus on the Victoria thresholds and tax rates.

In Victoria, the State Revenue Office (SRO) collects and manages payroll tax and there is a different rate depending on where your business is located.

Who needs to pay payroll tax?

From the 1 ^st of July 2024 you must register for and pay payroll tax if:

and if any of the following apply:

What is the rate?

The payroll tax rate is 4.85% except for regional Victorian employers. You are a regional Victorian employer if you are paying at least 85% of your wages to regional employees. The regional payroll tax rate is 1.2125% .

To see if your business is considered regional, please refer to the below link with a list of the regional councils:

https://www.sro.vic.gov.au/regional-victoria

What are considered wages?

Payments (considered wages) to employees engaged on a permanent, temporary or casual basis are always subject to payroll tax.

Wages are defined as and include:

Are there exemptions?

Some wages are exempt from payroll tax. These include:

For a full list please refer to the below link:

https://www.sro.vic.gov.au/checklist-taxable-or-exempt-items

What about payments to contractors?

Payments to contractors are, in certain circumstances, taken to be wages.

The payroll tax contractor provisions are intended to tax payments to contractors who “predominantly provide labour services and work exclusively or primarily for one principal” in a financial year.

Payments under these contracts are deemed to be wages (excluding GST). The business who engages the contractor is deemed to be an employer who is liable for payroll tax on those wages.

It is important to remember that the contractor provisions apply regardless of whether the contractor provides services via a company, trust, partnership or as a sole trader.

That is a lot of information – can I come to you to do it?

Yes – GTP is here to help with any questions. We can talk you through the process.

A few things to remember:

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Inherited Assets and Cost Base

Wed, 03 Jul 2024 06:32:00 GMT

Have you inherited shares or property from a deceased person?

If you have and are planning to sell these assets, you need to know what you cost base is to calculate if you have a taxable gain or loss on the asset.

Determining the cost base of an asset can be challenging. Sometimes the records have been destroyed for the deceased, or the assets where also inherited assets from an earlier deceased estate. You may also inherit the asset jointly with someone else.

There are also different rules for cost base depending on when the deceased purchased the asset. If the asset is purchased before September 1985, your cost base is the market value of the asset at the date of passing of the deceased. If the asset was purchased after September 1985, your cost base is the same as the decease’s cost base.

If your asset is shares held with Listed companies, information you may need is the dates of various different share purchases, dividend reinvestments and share buy backs. If the shares go back a long way, like BHP shares, you may be dealing with pre-September 1985 shares and post-September 1985 shares. BHP also had share purchase plans, dividend reinvestments, demergers and a list of reconstructions.

If your asset is property, the information you may need is the date of renovations or significant capital works to the property. This can be complicated further if the property was the main residence of the deceased.

If your asset is a business asset such as farming land then your cost base and capital gains tax calculation may be complicated by the small business concessions.

To avoid the issues of not having the correct information for cost base of your assets, remember to keep the records of those assets you purchase. If you inherit any assets, ask for the cost base information.

Also remember if you are selling an asset, to talk to your trusted adviser about any tax payable.

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Deductible Rental Property Expenses

Tue, 25 Jun 2024 23:40:00 GMT

If you own a rental property that is rented or is genuinely available for rent, you can claim a deduction for certain expenses during for the period.

However, you cannot claim a deduction for your personal use of the property, or any expenses covered by the tenant.

Below is a list of the common tax-deductible expenses:

Additionally, there are expenses that may be claimed over several years:

To claim these deductions, you need to keep accurate records.

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Minimum Wage Increase

Wed, 19 Jun 2024 01:15:00 GMT

Great news for workers in Australia it was announced on the 3 June 2024 that the Fair Work Commission will be increasing its National Minimum Wage!

In a move aimed at addressing income inequality and cost-of-living pressures, the Fair Work Commission of Australia has announced a 3.75% increase in the national minimum wage. The minimum wage will rise to $24.10 per hour or $915.90 per week for a 38-hour work week.

As well as increasing the superannuation Guarantee rate by 0.5%, both of these increases are to be implemented on 1 July 2024.

This increase in wages is going to have an affect on taxpayers that are earning a minimum wage in sectors such as retail, hospitality and services. While the increase in superannuation will be for all income workers within Australia.

However, while this increase aligns with inflation and addressing the cost-of-living pressures some of the industry associates like Australians Retailers Association have expressed concerns on the potential impact this increase might have on small retail businesses.

They express concerns that wage increases without having the corresponding productivity improvements could lead to price increases, given the slowdown in discretionary spending and rising operating costs.

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7 Ways to Get Better Deals from Suppliers

Mon, 17 Jun 2024 23:28:00 GMT

Sometimes business profits suffer because of spending too much with certain suppliers.

In the competitive business world, getting the best terms with suppliers improves margins and lays a foundation for long-term success. Startups and well-established entities who negotiate effectively enjoy significant cost savings and improved supplier relationships.

Here are seven ways to get better deals with suppliers:

Research Market Prices

Gather information on standard industry prices before starting negotiations. This forms a benchmark for determining a fair deal.

For example, a buyer of marketing services asked for proposals from three competitors. They revised terms with the existing supplier which resulted in a cost savings of 7%.

Build Long-term, Strong Relationships

Good supplier deals arise when there’s a win-win situation. A supplier who greatly values you as a customer is more likely to give favorable terms when you need them. This happens when there’s regular and respectful communication.

For example, a retail chain developed a strong relationship with its clothing supplier over several years of collaboration. When the retail chain faced financial difficulties, the supplier offered extended payment terms and a temporary discount to help the retailer through its challenges.

Volume Discounts

Consider proposing bulk purchases in exchange for a discount. Suppliers are often willing to reduce prices for larger orders.

For example, a restaurant chain negotiated a volume discount with its food supplier by committing to purchasing a certain quantity of ingredients each month. This allowed the restaurant chain to reduce food costs by 15% while ensuring a stable supply of ingredients.

Ask for Payment Terms

Negotiating payment terms that favor cash flow can be just as important as the price. Request longer payment periods or discounts for early payments.

For example, a small manufacturing business negotiated with its raw material supplier for extended payment terms from 30 days to 60 days. This adjustment allowed the business to align its cash outflows with its production cycle, resulting in improved cash flow and more financial stability.

Seek Value-Added Services

Look beyond the price tag for additional benefits. Suppliers might offer complimentary services like free shipping, training, or extended warranties.

For example , an electronics retailer negotiated a deal with a supplier to include free installation services for the products they purchased. This added-value helped the retailer attract more customers and differentiate itself from competitors.

Be Open to Compromise

A successful negotiation often involves give and take. Be prepared to find a middle ground that satisfies both parties.

For example , a construction company needed to purchase new equipment but was unable to pay the full price. After negotiating with the supplier, they agreed to a lease-to-own arrangement, allowing the company to acquire the equipment at a lower cost over time.

Have Multiple Options

Avoid relying on a single source. Collaborate with alternative suppliers to strengthen the negotiating position and secure the best possible deal.

For example, an IT company sought bids from multiple software vendors for a new project management tool. By comparing offers and negotiating with multiple vendors, they were able to secure a more competitive price and favorable contract terms.

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Maximizing Your Tax Refund: Simplifying Record-Keeping Strategies

Wed, 05 Jun 2024 01:18:00 GMT

Introduction

Hello, tax savers! Tax season can be stressful, but keeping good records can maximize your refund and reduce anxiety. Let’s explore why record keeping is crucial, how to do it effectively, and tips to simplify the process. Let’s dive in and make tax time easier!

Why Good Record Keeping Matters

Steps to Effective Record Keeping

Keeping Income Records

Track all income received, including:

Keeping Tax Deduction Records

Note: For purchases over $300, you will need to claim a deduction for their decline in value over a longer period (depreciation).

How Long Should I Keep Tax Receipts?

Keep records for five years if you:

Tools for Easy Record Keeping

Conclusion

Good record keeping is key to a better tax refund. By staying organized and using the right tools, you can claim all eligible deductions and credits, substantiate your claims, and reduce stress at tax time. Start implementing these strategies today for a smoother tax season. Happy organizing and may your tax outcomes be ever favourable!

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Tax Planning Tips for Australian Small Businesses

Wed, 29 May 2024 01:46:00 GMT

How to minimise your tax liability and maximise your cash flow before the end of the financial year

Timing of Invoicing

One of the simplest ways to reduce your taxable income is to delay issuing invoices until after 30 June. This way, you can defer the income and the tax payable to the next financial year. However, this strategy may not suit your cash flow needs, especially if you have outstanding bills or debts to pay. Therefore, you should consider the timing of your invoicing carefully and weigh the benefits and costs of postponing your income.

Write Off Bad Debtors

If you have any customers who owe you money and are unlikely to pay, you can write off their debts as bad debts and claim a tax deduction. However, you need to make sure that you have taken all reasonable steps to recover the debt, such as sending reminders, making phone calls, or engaging a debt collection agency. You also need to write off the debt in your books before 30 June and have evidence to support your decision.

Pre-Payment of Expenses

Another way to lower your taxable income is to pre-pay some of your business expenses for the next financial year, such as rent, insurance, subscriptions, or interest. You can claim a tax deduction for these expenses in the current financial year, as long as the service period is 12 months or less. However, you should only pre-pay expenses that are necessary and beneficial for your business, and not just for the sake of saving tax.

Review Stock on Hand

If you have any stock or inventory in your business, you should conduct a stocktake before 30 June and value your stock at the lower of cost, market value, or replacement value. This can help you reduce your taxable income by writing off any obsolete, damaged, or unsaleable stock. You should also review your stock valuation methods and choose the one that best reflects your business circumstances and profitability.

Other Matters

Besides the above tips, there are other matters that you should consider for your tax planning, such as:

Primary Producers

Some tax planning strategies that may be relevant for business entities in the primary production sector are:

Tax planning is an important part of running a successful small business. By following these tips, you can minimise your tax liability and maximise your cash flow before the end of the financial year. However, you should always consult your tax agent before making any tax-related decisions, as we can provide you with tailored advice based on your specific situation and goals.

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Managing Environmental, Social, and Governance (ESG) Considerations – Opportunities and Challenges

Thu, 23 May 2024 03:40:37 GMT

In recent years, Environmental, Social, and Governance considerations (ESG) have become an increasingly strong influence on businesses.

What does this mean for leaders?

Each business (and regulatory environment) is different… but here are some steps leaders can take as they navigate this part of running a business.

Learn the regulations

This is a good starting point because it’s important to be compliant with laws. Engage a specialist, consultant, or advisory firm to clearly define your obligations. In many cases, you’ll find the laws and guidelines are still under development. Knowing your obligations provides a baseline on what you may need to invest in this area.

Invest in education and training

ESG should not be seen as “a management challenge”. Make your team aware of the obligations and opportunities so they can get involved. Many universities and online platforms offer ESG courses and certifications.

Establish benchmarks

Assess your organisation’s current performance in environmental, social, and governance areas. How do you compare to your industry peers? Define any financial and reputational risk and set measurable goals to close any gaps.

Integrate into business strategy

For some businesses, ESG activities focus on ensuring compliance. Others will make fundamental changes in their business, such as in product development, supply chain management, and investments to realise ESG goals. That requires planning and careful assessment of the risks in various scenarios.

Manage stakeholders

Customers, suppliers, the media, employees, shareholders, and regulators may take an interest in an organisation’s approach to ESG. Transparency, detailed reporting, and regular engagement helps allay ESG concerns and set reasonable expectations.

Innovation and technology

Antiquated business methods can compromise performance on ESG metrics and investment in sustainable technologies may reduce environmental impact and improve social outcomes. A common source of opportunity is the Supply Chain, where collaboration with suppliers can result in sustainable practices.

Make ESG part of long-term success

Ask how ESG initiatives can contribute to organisational success and resilience in the long-term. The answer will vary by organisation and industry but there may be immediate and long-term benefits from diversifying the workforce, investing in ESG-focused funds or assets, setting ambitious sustainability targets, and consulting ESG guidelines when choosing partners and customers. For some businesses, a highly evolved ESG strategy will be a source of competitive advantage.

How does ESG strategy fit into your long-term plans?

Updates to HECS/HELP loan.

Wed, 22 May 2024 03:41:00 GMT

It has been announced that in the 2024 budget amendments are being made to the way HELP (Higher Education Loan Program’s) are being indexed to make it more fair for all Australians with a HELP Loan.

New Legislation

Previously, HELP loans were indexed based on the Consumer Price Index (rate of inflation). The new legislation is put in place means that your HELP loan will now be indexed by the lesser of; the Consumer Price index (CPI) or the Wage Price Index (WPI). This will backdate to the 2023 financial year.

How will this affect you?

Last financial year (2022 – 2023) a higher than usual CPI resulted in an indexation rate of 7.1%. The WPI was 3.2%. If you have an average HELP loan of $26,500, under the previous law you would have been charged $1,881. Under the new legislation, if you were to have an average loan ($26,500) you will automatically receive a credit of roughly $1,033, so that your HELP loan has only been indexed by $848 (3.2% -WPI) in the 2023 financial year. The loan will also be indexed at only 4% being the WPI not 4.7% being the CPI for the 2023 – 2024 Financial year.

The post Updates to HECS/HELP loan. appeared first on Green Taylor Partners .

Common Accounting Mistakes to Avoid in Small Businesses

Wed, 15 May 2024 01:16:00 GMT

Small businesses are the backbone of the economy, but they often face unique challenges, especially when it comes to financial management. Accurate accounting is crucial for their success, yet many small business owners inadvertently make common accounting mistakes that can have significant consequences. In this blog post, we’ll explore some of these pitfalls and provide tips on how to avoid them.

1. Neglecting Proper Record-Keeping:

One of the most common accounting mistakes small businesses make is failing to maintain accurate and organized financial records. Without proper record-keeping, it becomes challenging to track income, expenses, and overall financial performance.

Tip- Invest in accounting software or work with a professional to establish robust record-keeping systems from the start.

2. Mixing Personal and Business Finances:

Blurring the lines between personal and business finances can be a recipe for disaster. Small business owners often use personal funds for business expenses or vice versa, leading to confusion and potential tax implications.

Tip- Open separate bank accounts for your business and avoid using business funds for personal expenses to maintain clarity and compliance.

3. Ignoring Tax Obligations:

Tax compliance is a critical aspect of accounting for small businesses, yet many owners overlook it or fail to stay updated with changing regulations. Missing tax deadlines, failing to withhold taxes properly, or neglecting to file accurate tax returns can result in penalties and legal issues.

Tip- Stay informed about your tax obligations and seek professional guidance if needed to ensure compliance.

4. Failing to Reconcile Accounts Regularly:

Reconciliation is essential for identifying discrepancies and ensuring the accuracy of financial records. Small business owners often overlook this step, leading to errors and misstatements in their financial reports.

Tip- Make it a habit to reconcile bank accounts, credit card statements, and other accounts regularly to catch any discrepancies early on.

5. Overlooking Cash Flow Management:

Cash flow is the lifeblood of any business, yet many small business owners struggle with cash flow management. They may fail to monitor cash inflows and outflows effectively, leading to cash shortages or overspending.

Tip- Implement cash flow forecasting and monitor your cash flow regularly to anticipate and address any liquidity issues proactively. Also set up separate accounts for tax, GST, super etc. smooth cashflow for when these are due.

6. Failing to Plan for Growth:

Successful businesses have a solid financial plan in place to support their growth objectives. However, many small business owners neglect financial planning, which can hinder their expansion efforts.

Tip- Develop a budget, forecast financial performance, and set clear financial goals to guide your business’s growth trajectory effectively.

Conclusion:

In conclusion, avoiding common accounting mistakes is essential for small businesses to thrive financially and achieve long-term success. By prioritizing accurate record-keeping, separating personal and business finances, staying compliant with tax obligations, reconciling accounts regularly, managing cash flow effectively, and planning for growth, small business owners can navigate the financial landscape with confidence and pave the way for sustainable growth.

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Why Tax Planning Matters

Wed, 01 May 2024 00:33:00 GMT

Unfortunately, tax is a part of life, but by doing some forward tax planning can help you reduce you tax expenses and make informed financial decisions. Everyone can benefit from tax planning from the biggest of business to an individual.

Here’s why tax planning is so important:

Maximize Your Deductions: You may be missing out on deductions you don’t know are available to you. Tax planning helps you take advantage of all the deductions you’re eligible for.

Plan for the Future: Tax planning isn’t just about this year’s taxes; it’s also about planning for the future. By making smart decisions now, you can set yourself up for a lower tax bill in the years to come.

Avoid Surprises: Ever gotten a big tax bill and wondered where it came from? With tax planning, you can avoid those nasty surprises. By staying on top of your finances throughout the year, you’ll know exactly what to expect come tax time.

Stay Compliant: Tax legislation is constantly changing, and it can be hard to keep up with all the latest updates. Tax planning helps ensure that you stay compliant while still minimizing your tax liability.

Remember, the goal of tax planning isn’t to avoid paying taxes altogether; it’s simply to pay your fair share while keeping as much money in your pocket as possible.

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Stage 3 Tax Cuts

Wed, 24 Apr 2024 01:18:00 GMT

How does this affect you?

From 1 July 2024, the Stage 3 tax cuts will come into force for all Australian individual taxpayers. This will result in savings for all taxpayers with incomes above $18,200.

What are the changes?

The annual savings will be $1,679 for a taxable income of $80,000, $2,679 for a taxable income of $100,000 and $3,729 for a taxable income of $140,000.

Are there planning opportunities?

With income now being taxed lower from 1 July 2024, what should you be doing?

Bringing deductions forward

This will result in a lower tax bill in 2024 and a higher taxable income next year but taxed at a lower rate. Some opportunities include:

Deferring income

Opportunities include:

There is not a lot of time left to maximise the opportunity from the change in tax rates. For more information on how you can make this work for you, contact your accountant at Green Taylor Partners.

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10 Strategies to Boost Business’s Cash Flow

Tue, 23 Apr 2024 03:44:08 GMT

We sometimes see businesses which are healthy, growing, reputable, and stable… but their cash resources are limited. And that’s an impediment to operations running smoothly and ensuring long-term success.

Here are 10 practical strategies to help you boost your business’s cash flow:

Invoice Promptly

Send out invoices promptly after completing a job or delivering a product. Offer incentives for early payment to encourage prompt settlements.

Tighten Credit Terms

Review credit terms with customers and suppliers. Shorten payment terms for customers and negotiate longer terms with suppliers to improve your cash flow cycle.

Monitor Expenses

Keep a close eye on your expenses and identify areas where you can cut costs. Look for opportunities to renegotiate contracts, switch to more cost-effective suppliers, or eliminate unnecessary expenditures.

Improve Inventory Management

Optimise inventory levels to avoid excess stock sitting on shelves tying up cash. Use forecasting tools to better predict demand and adjust ordering accordingly.

Negotiate Supplier Discounts

Negotiate discounts with suppliers for early or bulk payments. Take advantage of any available discounts to reduce purchasing costs and improve cash flow.

Offer Discounts for Early Payment

Encourage customers to pay invoices early by offering discounts. Even a small discount can incentivise customers to settle their accounts sooner.

Monitor Cash Flow Regularly

Keep track of cash flow on a regular basis using cash flow forecasts. This will help you anticipate any potential cash shortages and take proactive measures to address them.

Improve Debt Collection Processes

Implement efficient debt collection processes to minimise overdue accounts. Follow up with customers promptly on overdue invoices and consider using automated reminders.

Explore Financing Options

Consider alternative financing options such as lines of credit, invoice financing, or business loans to bridge any cash flow gaps during periods of growth or unexpected expenses.

Focus on Profitable Sales

Concentrate efforts on generating sales that contribute positively to your bottom line. Identify your most profitable products or services and allocate resources accordingly to maximise revenue.

By implementing these strategies, you can improve your business’s cash flow and ensure greater financial stability for the future. Remember, effective cash flow management is key to sustaining and growing your business in the long run.

Have you heard of VPTAS?

Wed, 10 Apr 2024 00:00:00 GMT

No, it’s not some new fancy accounting acronym.. it is a scheme offered by the Victorian Government to assist with travel costs associated with rural Victorians accessing specialist medical treatment. Let’s take a look at what it is.

The VPTAS process in a nutshell is:
– to be eligible you need to be a Victorian resident and live in a DHHS designated rural health region and be receiving specialist medical treatment
– the designated rural health regions are: Loddon Mallee, Grampians, Barwon South West, Gippsland and Hume
– for the travel to be eligible, need to travel more than 100km one way or an average of 500km a week for one or more weeks
– travel reimbursements are 21 cents per km if travelling by private car, reimbursements for public transport, air travel, taxi travel and accommodation in certain circumstances
– the first $100 is not reimbursed each treatment year
– you fill in a form of your trips (maximum of 4 per form) and have it signed by the medical practitioner and send it off to VPTAS for processing

For example, Jane Smith lives in Halls Gap area and she may have to travel to Ballarat for specialist treatment. Using google maps to get the distance travelled between Jane’s home and the medical centre and back, might be close to 375km round trip. The per km rate reimbursement is 21 cents, so that would be $78.75 reimbursement for that one trip. Given the cost of fuel these days, I don’t think anyone would say no to that money.

A full list of the eligibility criteria and information on the VPTAS process can be found here https://www.health.vic.gov.au/rural-health/victorian-patient-transport-assistance-scheme-vptas#eligibility-for-vptas

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July 2024 Superannuation Changes

Wed, 27 Mar 2024 05:32:00 GMT

There are a number of changes happening on 1 July 2024 to various superannuation thresholds. Some of the important changes include the following:

1.Standard Concessional Contribution Cap – $30,000 (increase from $27,500).

2. Standard Non-Concessional Contribution (NCC) Cap – $120,000 (increase from $110,000).

3. Non-Concessional Bring Forward Caps – refer to table below:

4. General Transfer Balance Cap – $1,900,000 (no change). This is the lifetime maximum amount which can be used to commence an Account Based Pension.

5. Government Co-contribution Lower Threshold – $45,400 (increase from $43,445) Government Co-contribution Upper Threshold – $60,400 (increase from $58,445)

6. Superannuation Guarantee Rate will change to 11.5% (increase from 11.0%).

Another change currently being debated in Parliament is the proposed $3.0m super tax (Division 296 tax). This is the Government’s proposal to apply a tax of 15% on the portion of earnings on superannuation balances over $3.0m. This tax will first apply on superannuation balances measured on 30 June 2026.

There is little doubt this measure will be adopted. The only grey area currently is the definition of earnings, which includes movements in account balances from year to year. For taxpayers with Self-Managed Superannuation Funds (SMSFs), “earnings” will also include unrealised capital gains and movement in asset values.

The SMSF Association has identified this disastrous and unfair consequence of the legislation. They are lobbying strongly with politicians and crossbenchers in an attempt to get the legislation amended to only apply a “notional” earnings rate, such as a bank bill rate.

If you have any queries on how these superannuation changes impact you – please contact us.

The post July 2024 Superannuation Changes appeared first on Green Taylor Partners .

Self-Audits – Staying on Top of Important Trends in your Business

Tue, 26 Mar 2024 03:47:54 GMT

Busy leaders need to focus on the needs of customers, prospects, employees, regulators, suppliers and so on. However, we encourage these leaders to also take an active interest in the FINANCIAL health of their business.

Conducting a periodic self-audit or financial health check helps identify areas for improvement and ensures the business remains on track towards the financial goals.

Here are some important topics to cover in a self-audit.

Cash Flow Analysis

Analyse your cash flow to understand the movement of money in and out of your business. Review the cash flow statement to identify patterns or trends, such as seasonal fluctuations or irregularities. Ensure that your cash reserves are sufficient to cover operating expenses and emergencies.

Debt Management

Evaluate your current debt obligations and ensure they are managed effectively. Consider refinancing high-interest loans, consolidating debt, or negotiating with creditors for better terms. Prioritise debt repayment to minimise interest costs and improve your financial position.

Profitability Metrics

Assess business profitability through metrics like gross profit margin, net profit margin, and return on investment (ROI). Compare your performance to industry benchmarks to gauge competitiveness and identify areas for improvement. Find opportunities to increase revenue, reduce expenses, and enhance overall profitability.

Financial Reporting and Analysis

Review your financial reports, including income statements, balance sheets, and cash flow statements, to track performance and identify trends. Update your accounting software to ensure accurate and timely financial reporting.

Risk Management

Identify risks to your business’s financial health, such as economic downturns, market volatility, or regulatory changes. Develop contingency plans and risk mitigation strategies to minimise the impact of unforeseen events on your business operations.

Schedule time to conduct the self-audit and address areas of concern. Involve your Accountant to gain access to expertise in these areas. This also helps keep leaders accountable and confident that they’re on track to accomplishing their goals.

Land Tax

Tue, 12 Mar 2024 22:33:00 GMT

What is land tax?

Land tax is an annual tax based on the total taxable value of all the land you own in Victoria, excluding exempt land such as your home (principal place of residence).

Land tax is calculated using the site values (determined by the Valuer-General Victoria) of all taxable land you owned as at midnight on 31 December of the year preceding the year of assessment.

You may have to pay land tax if you own, either individually or jointly with others:

As part of the COVID debt levy, Victorian land tax has significantly increased for the next ten years. From 1 January 2024, the following changes were made:

Existing land tax exemptions, such as principal place of residence and primary production land, have continued to apply. This is provided the property and the owner continue to satisfy the relevant eligibility requirements.

Land tax general rates (from 2024 land tax year)

Land tax trust surcharge rates (from 2024 land tax year)

Examples

– Individual

If you own personal a holiday or rental property with a site value of $750,000, the land tax on this property will be $3,150 ($2,250 + $900(0.6% x $150,000)).

– Trust

If a Trust owns a holiday or rental property with a site value of $750,000, the land tax on this property will be $5,725 ($4,263+ $1462(0.975% x $150,000)).

The post Land Tax appeared first on Green Taylor Partners .

Best Practices in Tax Planning for Business Leaders

Thu, 07 Mar 2024 03:57:49 GMT

Here are some guidelines to help business leaders manage their tax affairs in conjunction with their Accountants. Effective tax planning helps minimise tax liability, ensure compliance, and improve cash flow.

Put Tax on the Leadership Agenda

Waiting until the end of the financial year limits options. Start early and actively engage in tax planning. Develop a tax strategy which is aligned with your current financial situation and goals.

Develop a Tax Strategy

Your tax strategy provides guidelines on how you manage tax. It includes:

optimising the business entity structure to align with your financial goals and minimise tax
making accurate tax forecasts to avoid underpayment, penalties and interest
capitalising on tax credits, deductions, income splitting, tax deferral, tax-advantaged accounts and exemptions where these are legitimate means of achieving tax efficiency
a schedule of compliance requirements and deadlines to avoid penalties and audits
scenario planning for decisions such as taking on debt, making investments or purchasing assets

Stay Educated

Business leaders need not be ‘tax experts’… but a rudimentary understanding helps. That includes:

being aware of tax laws (as they evolve)
delaying income or accelerating deductible expenses to manage taxable income
understanding available tax credits and deductions specific to your industry or location

Use Technology

Accounting software (especially cloud technology) helps to track (and forecast) income, expenses, and taxes. Automation streamlines record keeping, improves accuracy and saves time. Implement systems which simplify record keeping.

Take a Long-term View

An upcoming tax deadline requires planning but effective leaders think long-term, even beyond the current financial period. Decisions taken today can save huge amounts in tax years or even decades later. An example is Retirement Planning, where contributions to certain plans can be tax-deductible and secure your financial future.

Consult with Experts

Consult with your Accountant who understands your industry or business structure. Meet year-round rather than waiting until tax season, which limits the strategies available. Be aware that tax laws change frequently and research may be required, especially on complex matters.

Have the confidence to ask questions on tax. There are no ‘bad questions’ and tax can get complicated. Your Accountant will help you minimise risk while availing yourself of all benefits under tax laws.

A little time spent on (early) tax planning will ensure you have certainty on all tax matters… so you can focus on building the business!

The Rule of Three

Tue, 05 Mar 2024 22:59:00 GMT

Looking back through blogs I have written in the past and recently being reminded of the rule of three I thought it appropriate to revisit this view.

I recall reading two articles in relation to how to perform better in business. Both these articles listed 7 techniques/attitudes each to assist you in performing better in your business. There was a duplication of 2 items that both listed, giving a combined total of 12. Having to concentrate on 12 items at once could possibly overwhelm you. It would also make the challenge of completing them appear very daunting. Then I noted that one of the articles suggested to pick three items and concentrate on them over the next week or so. This as you may have heard us mention before refers to the ‘rule of three’.

Some time ago I attend a seminar where an ex US Marine spoke of the rule of three. This is something that the United States Marine Corp believes strongly in. They believe that the rule dictates that a person should limit his or her attention to three tasks or goals. Anything more and you can become overextended and confused. They experimented with a rule of four and found that effectiveness plummeted.

Three things can easily be remembered, anymore and our retention suffers especially if under stress.

You can apply the rule of three to most things in life whether its business or private.

As this is a business blog let’s look at how we could apply it for a business. If business is struggling at the moment, take a hard look at what is going wrong and list the three most important areas that need improving? Concentrate on those, even seek assistance if required.

If business is going well, look at the three things you are doing right and don’t let them deteriorate. You can also look at three things that could disrupt your success and protect them.

With the two articles I received the three that stood out to me were;

Remember don’t try and take on too much as each will lose their effectiveness.

The post The Rule of Three appeared first on Green Taylor Partners .

Understanding Non-Commercial Losses

Wed, 28 Feb 2024 05:11:00 GMT

What are non-commercial losses?

A non-commercial business loss is a loss you incur, either as a sole trader or in partnership, from a business activity that isn’t related to your primary source of income. Think hobbies, side businesses, or personal ventures. In Australia, the ATO has specific rules and criteria to determine if an activity qualifies as non-commercial.

The criteria:

To claim non-commercial losses, you need to meet a few key criteria. First, the business activity needs to have business-like characteristics and have a genuine intention to make a profit in the long term. This means you’re not just pursuing the activity for fun, but you have a real goal of turning it into a profitable venture. Second, the business activity needs to have a significant commercial purpose or character.

The benefits:

Now, you may be wondering “Why should I care about non-commercial losses?” Well, here’s the exciting part: if you’re claiming a loss from a non-commercial activity, you may be able to offset it against other assessable income. This can help reduce your overall tax liability. However, there are certain tests (commerciality tests) you must satisfy in order for the loss to become deductible.

The tests:

Losses for non-commercial activities carried on by individuals are only deductible against other income if:

What happens if you don’t satisfy any of these tests?

If none of the four non-commercial loss tests are met or you can’t satisfy the two exceptions, then you may be wondering what happens to the losses. Well, the losses are quarantined.

If a business activity makes a profit in a following year, the deferred loss can be utilised against the profit.

The post Understanding Non-Commercial Losses appeared first on Green Taylor Partners .

Top Tax-Saving Tips for Australians: Maximising Returns and Minimising Liabilities

Wed, 21 Feb 2024 05:13:00 GMT

As Australians, navigating the complex terrain of tax obligations can often feel daunting, but with strategic planning and informed decision-making, you can optimize your financial situation while staying compliant with tax laws. Here are some expert tips to help you save on taxes and make the most of your hard-earned money:

1. Claim Deductions: One of the most effective ways to reduce your taxable income is by claiming all eligible deductions. Keep meticulous records of work-related expenses, charitable donations, and self-education costs to ensure you do not miss out on potential tax savings.

2. Salary Sacrifice: Consider leveraging salary sacrifice arrangements to divert a portion of your pre-tax income into your superannuation fund. Not only does this lower your taxable income, but it also helps boost your retirement savings through concessional contributions. Some employers can car lease and/or arrange mortgage payments through salary sacrifice.

3. Maximize Super Contributions: Take full advantage of the concessional contributions cap by contributing the maximum allowable amount to your superannuation fund. This not only reduces your taxable income but also ensures you are building a solid foundation for your future financial security.

4. Invest Wisely: Explore investment opportunities that offer tax benefits, such as shares held for the long term or property investments. Capital gains from long-term share investments may qualify for tax discounts, while negative gearing can provide tax advantages for property investors.

5. Seek Professional Advice: When in doubt, seek guidance from a qualified tax professional or financial advisor. They can provide personalized advice tailored to your unique circumstances, helping you devise a tax-saving strategy that aligns with your financial goals and priorities.

6. Take Advantage of Depreciation: If you own investment properties or business assets, consider claiming depreciation deductions on their decline in value. Engage a quantity surveyor to prepare a depreciation schedule, maximizing your tax deductions over time.

7. Explore Tax Offsets and Rebates: Investigate available tax offsets and rebates, such as the Seniors and Pensioners Tax Offset, the Low-Income Tax Offset or First home buyer super saver. These incentives can provide valuable tax relief for eligible individuals, reducing their overall tax burden.

8. Contribute to Spouse’s Super: If your spouse earns a low income or is not currently working, consider making contributions to their superannuation fund. You may be eligible for a tax offset of up to $540 per year, helping boost their retirement savings while reducing your tax liability.

9. Plan for Capital Gains Tax (CGT): When selling assets such as property or shares, strategically plan your transactions to minimize CGT liabilities. Utilize CGT concessions, such as the 50% discount for assets held longer than 12 months, to reduce the taxable portion of your capital gains.

10. Educate Yourself: Take advantage of available resources, such as online tax guides, workshops, and seminars, to enhance your understanding of tax-saving strategies and financial planning principles. Empower yourself with the knowledge to make informed decisions and navigate the tax landscape effectively.

11. Keep Detailed Records: Maintaining comprehensive records of all deductible expenses throughout the year is crucial for maximizing tax savings. Whether it is receipts for work-related purchases or invoices for rental expenses, organized documentation can make tax time significantly less stressful.

By implementing these tax-saving strategies and remaining vigilant in managing your finances, you can optimize your tax position and achieve greater financial efficiency. Remember, proactive planning and ongoing review are essential for maximizing tax savings and building long-term wealth.

The post Top Tax-Saving Tips for Australians: Maximising Returns and Minimising Liabilities appeared first on Green Taylor Partners .

What is a Self-Managed Superannuation Fund?

Wed, 14 Feb 2024 00:36:00 GMT

A self-managed super fund (SMSF) is a superannuation fund that you manage yourself. SMSFs are different to industry and retail super funds. When you manage your own super, you put the money you would normally put in a retail or industry super fund into your own SMSF. You make the investment decisions for the fund, and you are held responsible for complying with the super and tax laws.

A SMSF must be run for the purpose of providing retirement benefits for the members. All decisions you make as trustee of your SMSF must be in the best financial interest of the members.

How does a SMSF work?

A SMSF works to provide those entering their retirement age, as well as their beneficiaries upon death, with financial benefits.

These personally managed funds have their own Tax File Number (TFN), Australian Business Number (ABN) and transactional bank account. Through these, your SMSF can receive contributions and rollovers, pay out lump funds and pensions, as well as make investments. Any investment decisions host the name of the fund and are controlled by the trustees.

Due to it being a trust fund, a SMSF requires a trustee. You will automatically become a SMSF trustee due to it being your fund, but you can nominate up to six members, or choose to have a corporate trustee.

The differences between these two trustee structures are:

The main advantage of a SMSF is that you are in control, and you know exactly where your superannuation funds are invested.

The post What is a Self-Managed Superannuation Fund? appeared first on Green Taylor Partners .

What are ‘Offset’ accounts?

Wed, 07 Feb 2024 00:16:00 GMT

An offset account is a transaction account linked to your home or investment loan. You can make deposits or withdraw from it as you would with a regular transaction account. With a standard home loan, you pay interest on the total amount owing. But with an offset, interest is charged on the difference between your home loan balance less the amount in your linked offset account. It uses the money in that account to ‘offset’ your loan balance.

For example if you have a home loan of $400,000 and $30,000 in your offset account; you’ll only be charged interest on a loan balance of $370,000 ($400,000 – $30,000).

This means you can pay less interest with an offset account. The more money you have in the offset account, the less interest you pay on your home loan.

In most cases, the offset feature is only available on variable-rate home loans (although some lenders offer an offset feature on selected fixed-rate home loans).

Things to consider before throwing all your savings into an offset account:

Benefits:

Another advantage is the interest you save by using an offset account won’t be considered income – which means it won’t be taxed. On the other hand, the interest you earn on a savings account will generally be considered income – and that means it may be taxed.

Speak to one of our accountants to see what tax benefits an offset account could have for you.

The post What are ‘Offset’ accounts? appeared first on Green Taylor Partners .

5 Life Lessons for Business Success

Wed, 31 Jan 2024 00:00:00 GMT

I have always believed that the principles that you apply in one activity can be applied in another. This certainly can be the case with sport and business. I read a blog (HybridBizAdvisors) that states that sport has a way of teaching us valuable life lessons. As we grow up participating in sporting activities as a part of a team, we should win and lose with dignity and never give up or stop trying:- the game is not over until the final whistle is blown. After the activity, you can reflect on ways to improve.

Winning in business is no different, execute your game plan, avoid critical mistakes, always keep trying (to do better), and don’t give in. You should always believe that you will be able to meet the challenge ahead. Don’t let years of experience of average results hold you back.

The blog mentioned 5 things to remind yourself to avoid defeating yourself;

Fail Forward: You are going to make a mistake at some time. Learn from it and then move on. Nothing will be gained from dwelling too long on it.

Dream Big: Even if you do not make it to the end, you will have gone further than if you had aimed small.

Avoid pessimistic people: They will probably not achieve a great deal and take all the wind from your sails.

Be Grateful: Appreciate the small things and the big ones will follow.

Be positive: With yourself and your abilities.

Sticking to your game plan is just as important in business as it is in sport and applying the above principles to anything you do in life will assist in reaping the rewards of success you are striving for.

The post 5 Life Lessons for Business Success appeared first on Green Taylor Partners .

6 Tips to developing an investing plan

Wed, 24 Jan 2024 00:00:00 GMT

Planning is always a good key to have for successful investing. Creating a plan will help you find investments that fit your investing time frame and risk tolerance, to help you reach your financial goals sooner.

This article from Moneysmart sets out 6 steps to get ready for investing.

https://moneysmart.gov.au/how-to-invest/develop-an-investing-plan

The post 6 Tips to developing an investing plan appeared first on Green Taylor Partners .

5 Ways to Get the Most from Goal-Setting (and Goal Achievement)

Tue, 23 Jan 2024 04:00:49 GMT

Most leaders acknowledge the value of setting goals and measuring their progress.

But many of those same leaders complain of not setting the ‘right’ goals OR say they have trouble achieving the goals.

Here are 5 methods to help you make goal setting (and goal achievement) a more productive exercise.

See yourself in the future

What will things look like in the future (say, after 1 year) when you have completely achieved your ambitious goals? What’s the status? How do you feel?

It’s OK to dream… and imagine the practical AND emotional outcomes of hitting these goals. Get into detail because the more vivid your dreams, the more likely you are to get inspired and motivated.

Then write it all down. That brings clarity and precision to your thoughts.

Establish milestones

Everyone is different… but consider:

Giant, transformational goals . Maybe these will take ten years and put you in a fundamentally different place
Foundational goals. These are the building blocks for the giant goals and may take 2 to 4 years to accomplish
Tactical goals . These are the priorities which may take one year and enable you to achieve the foundational goals
Tasks . These are critical action steps which move you closer to longer term goals. They may take 30 to 90 days

Milestones help the giant, transformational goals feel more achievable and clarify what you need to do next. And when things get tough – and they will – you’ll be able to persevere, knowing you are on track.

Clean up your environment

It’s tough to succeed when held back by limiting beliefs or highly unproductive relationships.

Remove obstacles which keep you from getting where you want to be. This may mean ending negative relationships, changing behavior on social media, setting aside time to accomplish specific tasks without distraction or eliminating activities which get in the way of your task list.

Recognise that your environment has a big impact on outcomes.

Shift your mindset

A mindset which is inconsistent with your goals inhibits progress. For example, if your goal is to “be an innovator in your industry” but you fundamentally believe you “lack creativity”, something needs to change. Otherwise, there is no realistic shot at achieving your goals.

Make a list of identities you want to embrace and ask others to affirm these identities. Self-persuasion is incredibly powerful. We become who we identify as.

Engage with accountability partners

Even the most astute leaders need to be held accountable. Coaches, mentors, mastermind groups, friends and family members help keep you on track and change course, if necessary. External validation also accelerates results.

What are your goals for the coming year? And how are you giving yourself the best chance of achieving them?

Accounting terms

Wed, 20 Dec 2023 00:00:00 GMT

I have been here for 5 weeks now and have been taught a lot of things that sounded like gibberish to me in the beginning and went over my head at times. I thought to myself I would not be the only one thinking this. So, the thought came to mind that I should break down a few of the basic terms so that everyone else can understand them like I do now.

Assets – assets are something that someone owns, this can generate cash, or it can be converted into cash such as property, vehicles, equipment, and inventory.

Debtor – a person or business that owes a business money.

Current Asset – an asset in cash or something you can convert into cash within 12 months.

Fixed Asset – a physical asset used in the running of a business.

Intangible Asset – non-physical assets with no fixed value, such as goodwill and intellectual property rights.

Capital – wealth in the form of money or property owned by a business.

Liability – any financial expenses or amount owed by a business.

Current Liability – a liability that is due for payment within 12 months.

Creditor – a person or business that allows you to purchase a good or service with an agreement to pay at a later date. A creditor can also be anyone who you owe money to such as a lender or supplier.

Drawings – a personal expense paid for from the business account.

Equity – the value of ownership interest in the business, calculated by deducting liabilities from assets.

Break–Even Point – the exact point when a business’s income equals a business’s expenses.

Financial statement – a summary of a business’s financial position for a given period. Financial statements can include a profit & loss, balance sheet and cash flow statement.

Turnover – the total money earned by a business before you deduct any expenses.

Gross Profit – the difference between sales and the direct cost of making the sales.

Inventory – a list of goods or materials a business is holding for sale.

The post Accounting terms appeared first on Green Taylor Partners .

Recruitment in 2024: How Leaders Will Attract Talented Employees

Tue, 19 Dec 2023 04:03:00 GMT

Recruiting employees is challenging for many businesses. Leaders need talented and loyal teams… So how are they responding to the changing recruitment landscape? Here are some recent trends.

Virtual Recruiting

Virtual recruiting has taken hold. It was once unthinkable that an employee could be hired without an in-person meeting with their manager. Virtual recruiting means candidates may not get a close-up look at the company (and vice versa) but businesses increasingly see merit in finding candidates outside their geographic area.

To improve the virtual recruiting experience, employers are providing more control to the job seeker, including the ability to schedule interviews, choose an interviewer, and have visibility into where they are in the process.

Remote Work

Offices won’t disappear… but remote work is here to stay. Businesses which are good at setting up remote workers will stand out. This includes providing equipment like standing desks, noise cancelling headphones and collaboration technologies, while enabling learning and connection with colleagues.

Automation

Automation can reduce the length of the recruitment process and improve the experience. Examples of automation include applicant tracking, digital interviewing, candidate matching, resume management, scheduling interviews and candidate screenings. One area experiencing huge growth is asynchronous video technology; software that allows applicants to film themselves answering a set of questions.

Artificial Intelligence (AI) and Predictive Analytics

AI technology is used to source candidates, develop (unbiased) job descriptions, review resumes, schedule interviews and analyse answers to written interview questions. The technology then learns from the data and uses algorithms to push the best candidates forward.

Chatbots

Career sites with chatbots can convert more applicants and increase the number of candidate leads. They help candidates learn more about the organisation and reduce time spent answering questions on how to apply, the status of applications, benefits and compensation.

Comprehensive Benefits

Medical and dental coverage are important for many employees but employers can stand out by offering programs to help save for retirement, balance work and life and address mental health concerns, for example through mental health apps, activities like yoga or a wellness coach.

Empathy

Candidates will recognise a culture that encourages thinking about the needs and feelings of others. An active recruiter who puts themselves in the shoes of candidates and is ‘present’ throughout the recruiting process is likely to get the best results.

Flexibility and Adaptability

An employer which demonstrates agility, or the ability to quickly maneuver and adapt, will be positively perceived. This could be through flexibility on the contractual terms but also how the organisation is responding to its own business challenges. The ability to adjust is a desirable attribute.

Social Recruiting

Recruiting on LinkedIn is old news but use of Facebook, Twitter and Instagram is growing, especially to attract younger candidates. Successful campaigns should be designed to suit the platform. For example, one employer set a challenge on Instagram asking users to crack a code… and then apply for a job!

Webinars

Webinars may feel like ‘old hat’ but still have a place, especially with the decline of traditional job fairs. Successful webinars will be themed and specific while providing valuable career advice.

Marketing Approach to Recruitment

In marketing, we build ‘funnels’ but this can also apply in recruiting. Break the process into awareness, interest, decision and action stages and be sure to address key questions about the target audience, how to reach them, what content will appeal, how to manage ‘leads’ and how to measure progress. Then focus on continually improving your process and the ROI.

Internal Recruiting

Some existing employees may want a different role for which they are well-suited. That’s a win-win for employer and employee but it won’t happen by chance. A proactive approach is needed, for example, by tracking employees’ aspirations, skills and interests and matching these with job openings.

Staying Current with Trends

Candidates are increasingly aware of, and care about, social trends. Priorities will differ, for example, a commitment to Diversity, Equity and Inclusion may be a point of differentiation for some employers.

Employer Branding

Another pathway to differentiation is employer branding. This is best achieved when current employees talk about their positive experience with their employer. The most powerful advocates for the Employer are existing employees.

So, among other things, successful recruiters are taking a long-term approach, embracing technology, improving processes and looking for ways to stand out. This makes sense because someone who is not a fit right now might be a valuable addition to the team later on. Good luck with your recruiting!

Teaching the ‘Next Gen’ the value of a dollar

Tue, 12 Dec 2023 22:29:00 GMT

We all want the best for our kids. We buy them everything they need and sometimes far too much of what they want, and yet somehow, it’s never enough and they’re constantly wanting more.

Kids are constantly asking for things they want – lollies, toys, canteen money etc. Take this opportunity to start a conversation about money and how you earn it and what you need to spend it on. Discuss the differences between needs and wants and how it’s important to earn and save for things they want.

Financial Education is a fundamental life skill that can be taught from a young age. Learning the basic concept of money, earning an allowance or pocket money, and knowing how and when to spend or save is a great place to start.

Start with a piggy bank so your child can watch their savings grow before introducing a kids savings account.

Start with pocket money, earning money for helping around the house and then allowing them the choice to spend or save it will empower them to make their own decisions to learn and grow.

Get your kids involved! Use everyday situations like paying bills, buying groceries, planning a trip, or buying a gift.

Have a budget they must stick to, this will have them checking and comparing prices, adding up all the different costs and potentially deciding what is most important, comparing deals, working out what is better value and how to work out the price when there are varying discounts.

Rather than letting the money “burn a hole in their pockets” and spend it the first chance they get, talk about savings goals and what they can work towards.

There are apps for everything these days and pocket money is no different! There are many earning and learning money saving apps for kids which allows you to allocate a list of jobs and what they’re worth. When pay day comes, you approve the payment which transfers money into your child’s account. In their app, they can then choose to spend or save their earnings, anything they elect to save is not accessible on their bank card unless they transfer it across to their spendings account. This will have your children thinking before spending their hard-earned dollars.

Kit by Commbank, ZAAP & Spriggy are all popular pocket money apps, each with different inclusions. I suggest doing your own research to work out which suits your family needs best.

Getting your kids involved now will teach them a valuable skill for life and set them up for financial success in the future.

The post Teaching the ‘Next Gen’ the value of a dollar appeared first on Green Taylor Partners .

How to Market on Social Media Effectively

Wed, 06 Dec 2023 00:00:00 GMT

The rise of social media platforms has revolutionised the way businesses connect with their audiences.

You might wonder how social media could be instrumental in growing your business.

What is social media marketing?

Social media marketing involves using platforms like Facebook, Instagram, Twitter, LinkedIn, and TikTok to effectively reach a wider audience and communicate with customers.

With the right social media strategy, you can effectively gain brand awareness, increase traffic, and generate leads. Your customers expect engaging content and the ability to communicate with you through direct messaging and comments.

Identify Your Target Audience

Before diving into social media, understand who your target clientele is. Tailoring your social media content to meet the specific needs of your audience ensures higher engagement and conversion to sales.

Select the Appropriate Platforms

While the temptation to be present on all social media platforms is strong, focusing on those frequented by your target audience can yield better results.

You’ll want to think about how to best use each platform, based on what it was created for and the content that does best there:

Develop and post relevant content regularly

Success on social media is a matter of posting compelling, engaging content consistently. Not only will this help make your business look dependable, but it also shows that you have timely knowledge to share and that you care to be in conversation with your audience.

Social media platforms change their algorithms over time, but the rule of posting regularly holds true: This practice helps your content show up in newsfeeds. By focusing on consistent, relevant content, you show the algorithms that your posts are worthy of showing up in various newsfeeds and ultimately, will attract and retain followers.

Use Video Content

Live streaming can help boost your reach on social media because live streaming taps into your followers’ fear of missing out (FOMO), you can reach more people at a time. Live streaming also allows you to be more personal with your audience and give them insight into your business and its products to build trust.

Interaction is Key

Social media is not just about broadcasting; it’s about engagement. Make it a habit to interact with your audience by responding to comments, liking posts, and even directly engaging through polls or Q&As.

Instead of posting multiple times a day on as many platforms as possible, you should focus on delivering consistent, quality posts.

Maintain Consistency

Brand identity is what helps people connect to your business and sets you apart from your competitors. This means that all marketing, including print, digital, and social media, should be consistent.

It’s important to remember that as you post on social media, you are always representing your business.

Measure and Adapt

Utilise analytics tools provided by social media platforms to measure your performance. Pay attention to metrics like engagement rates, follower growth, and conversion rates to evaluate the effectiveness of your strategy. Adapt your tactics based on these insights for ongoing success.

Collaborations and Partnerships

Partnering with influencers can help you take your social media marketing to the next level by leveraging their talents to help you grow your business. Influencers have their own personal branding and followers that trust their expertise.

Working with influencers in your industry can help you build brand awareness and increase sales. Since influencers are real people, they’re more easily trusted by customers, allowing you to use that to your advantage.

Be Authentic

Authenticity is crucial. A genuine voice and transparent approach can go a long way in establishing long-term relationships.

By employing a strategic and focused approach, you can not only extend your reach but also build a loyal client base, thereby ensuring long-term success in your field.

A few benefits of social media marketing include:

Cost-effective. Advertising your business on social media is one of the most cost-effective advertising solutions available for small businesses.

More exposure. Marketing your business on social media allows you to reach more people. Engaging content will likely be shared, helping you increase your online visibility.

Boost brand awareness . Social media is a great tool for increasing brand awareness by boosting online visibility. However, if you want to take advantage of social media to raise brand awareness, consider creating advertisements that expand your reach.

Drive traffic to business websites . Your social media marketing should drive traffic back to your website, where customers can complete actions like filling out forms or making purchases.

Support customers quickly . Social media allows you to handle online customer service requests quickly and easily. When someone messages you directly on social media, you can answer their questions in real-time, giving them a fast response that improves their experience with your business.

Increased credibility. Posting engaging and educational content can increase your credibility, helping new customers learn that you’re a thought leader they can trust.

In summary, every small business should consider investing in social media marketing to promote their business and boost online visibility.

#Good Luck!

The post How to Market on Social Media Effectively appeared first on Green Taylor Partners .

Rising Cost of Living.

Fri, 01 Dec 2023 03:44:00 GMT

Inflation… A word we’re all hearing a lot lately!

Food, fuel, housing – ALL the everyday essentials are skyrocketing and has many young Australians more than a little anxious and looking at ways to tighten the belt; or find a secondary source of income!

Managing your money effectively is important, especially in times of uncertainty and change.

Here are a few tips and tricks to help ease the burden.

BUDGET! BUDGET! BUDGET!

I know, I know.. Making a budget (and actually sticking to it) seems like a buzz kill, right? BUT making a budget gives you a much better understanding of your financial position and where you may be able to make some cuts.

Start small. Track your spending for a week. This will help you identify quick, easy ways to reduce your spending.

Smooth out your big bills by paying smaller amounts weekly, fortnightly, or monthly to avoid the shock of a big bill that seems out of reach, or you simply can’t afford to pay.

Shop around for a better deal! Whether that is refinancing your home loan or shopping the specials in the Supermarket catalogue, there is money to be saved when you are making deliberate and well thought out choices.

NEED IT? LOVE IT? LIKE IT? WANT IT?

Keep your priorities in check by asking yourself this very question before making impulse buys. If you don’t need it or love it, you probably shouldn’t be buying it.

Figure out your noodle budget – The bare minimum you need when times get tough. Cancel subscriptions, have coffee at home, make “fake aways” and meal plan before going shopping.

Ditch the credit cards and only commit to buying things you can afford to pay for in full.

Sometimes cutting back expenses isn’t enough, and you may need to consider a side hustle to ease your financial stress, whether that’s a second job or turning your hobby into a little money-making business. Bringing in extra income can make it easier to live within your means and avoid extra debt.

Once you have your budget sorted, make saving a priority! Have an emergency account you can access when unexpected emergencies arise.

The rising cost of living may be stressing you out now but living beyond your means may have a big impact on your credit score and your future borrowing capacity.

To get some more money saving tips and create your own budget, check out moneysmart.gov.au

The post Rising Cost of Living. appeared first on Green Taylor Partners .

Working holiday Makers (WHM’s)

Thu, 30 Nov 2023 10:21:00 GMT

With 2024 being right around the corner, and harvest quickly approaching, now is a great time for arefresher on working holiday makers . As the world is becoming increasingly engaging in the global workforce, businesses are increasingly tapping into the global workforce. However, it is crucial for employees to understand their obligations when hiring WHM’s.

1. Understanding Visa Regulations:

• There are 2 types of visas subclasses, that is 417 – Working Holiday & 462 Work & Holiday (backpackers). It is important to check the validity of each visa and ensure WHM are eligible for employment during their stay.

2. For tax purposes:

• Individuals will either be an Australian resident or a foreign resident. For most WHM’s this will not affect their tax rates. The only exception if you are both a) an Australian resident for tax purposes and b) from a non-discrimination article (NDA) country (Refer to ATO for details). All employees will need a valid Tax File Number (TFN). This can be done online once a valid work visa has been obtained.

• Working holiday makers will have slightly different tax rates. Refer to the below table for WHM’ tax rates for the 2022-2023 financial year.

Fig 1.1

Source: Australian Tax Office

3. Tax withheld by your employer

• If you’re a WHM and you’re employer is registered with us as a WHM employer, they will withhold tax at a rate of 15% for the first $45,000 earned during the 2020-2021 and later financial years. (Refer to ATO for WHM tax tables)

4. Fair and Equal treatment

• WHM’s like all employees deserve fair and equal treatment in the workforce. Employers must provide the same rights, benefits, and working conditions as local employees. This includes minimum wage laws, working hours, occupational health, and safety standards etc.

• Cultural diversity is one of the key aspects of hiring WHM’s. Employers should promote an inclusive work environment, fostering respect among employees from different cultural backgrounds.

Lewis Thomas

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Superannuation Fund – DocuSign

Thu, 30 Nov 2023 10:15:00 GMT

Superannuation Fund – DocuSign

Are you interested in signing your Superannuation Fund documents electronically? If so, our software CLASS offers DocuSign.

What is DocuSign?

Class integrates with DocuSign as its electronic signature solution partner to provide a seamless and efficient way to get financial statements and compliance documents signed electronically. Class reports can be sent for signature at the entity level, both for Single Reports or Report Packages.

What are the advantages of DocuSign?

No more paper, fax and shipping. DocuSign manages every aspect of every transaction from preparing and sending documents to signing and managing them.

If you are interested in using DocuSign please let us know when you drop in your 2023 Superannuation Fund Information or please do not hesitate to contact our office.

The post Superannuation Fund – DocuSign appeared first on Green Taylor Partners .

Christmas Parties and Fringe Benefits Tax

Thu, 30 Nov 2023 10:07:00 GMT

With summer and Christmas just around the corner, you may be planning a Christmas Party for your employees.

It is quite common for employers to provide Christmas parties and gifts at this time of the year.

The Christmas Party is considered entertainment and in some cases be subject to Fringe Benefits Tax (FBT).

As an employer, the cost of food and drink associated with Christmas Parties are exempt from Fringe Benefits Tax, as long as they are provided on a working day on your business premises and consumed by current employees. If associates attend this party and the cost for them is under $300, this is also exempt from FBT as this falls under the minor benefit exemption rules.

If you were to host a Christmas Party offsite at a restaurant, certain FBT implications would arise. If the cost per head is under $300 then FBT doesn’t apply and falls under the minor benefit exemption rules. If the cost per head is over $300 then FBT will apply.

Concert tickets, movie vouchers and holidays are classified as ‘entertainment’ gifts by the ATO and are usually subject to Fringe Benefits Tax (FBT) and are not tax deductible. Hampers, vouchers, bottles of wine and other similar gifts are classified as ‘non-entertainment’ and are generally exempt from FBT. Although if the total cost per person is more than $300, each benefit should be considered separately under the minor benefits exemption.

If you wish to discuss more, please contact Green Taylor Partners.

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ATO Lodgement dates

Thu, 30 Nov 2023 09:45:00 GMT

1 December

Pay income tax for taxable large and medium taxpayers, companies and super funds. Lodgment of return is due 31 January 2024.

Pay income tax for the taxable head company of a consolidated group with a member deemed to be a large or medium taxpayer in the latest year lodged. Lodgment of return is due 31 January 2024.

Pay income tax for companies and super funds when lodgment of the tax return was due 31 October 2023.

21 December

Lodge and pay November 2023 monthly business activity statement.

21 January

Lodge and pay quarter 2, 2023–24 PAYG instalment activity statement for head companies of consolidated groups.

Lodge and pay December 2023 monthly business activity statement except for business clients with up to $10 million turnover who report GST monthly and lodge electronically.

28 January

Make quarter 2, 2023–24 super guarantee contributions to funds by this date.

Note: Employers who do not pay minimum super contributions for quarter 2 by this date must pay the super guarantee charge and lodge a Superannuation guarantee charge statement by 28 February 2024.

31 January

Lodge TFN report for closely held trusts if any beneficiary quoted their TFN to a trustee in quarter 2, 2023–24.

Lodge tax return for taxable large and medium entities as per the latest year lodged (all entities other than individuals), unless required earlier.

Payment for large and medium entities with a 31 January due date is:

• 1 December 2023 – for companies and super funds

• for trusts – as stated on their notice of assessment.

Note: You cannot assume a later date for lodgment on the basis that the taxpayer will be non-taxable in the current year. If you request a lodgmentdeferral, it will be escalated for manual assessment as an ATO assessed deferral.

Lodge tax return for the taxable head company of a consolidated group (including a new registrant) that has a member who has been deemed a large or medium entity in the latest year lodged, unless the return was required earlier. Payment was due 1 December 2023.

21 February

Lodge and pay December 2023 monthly business activity statement for business clients with up to $10 million turnover who report GST monthly and lodge electronically.

Lodge and pay January 2024 monthly business activity statement.

28 February

Lodge tax return for non-taxable large and medium entities as per the latest year lodged (except individuals).

Payment (if required) for companies and super funds is also due on this date. Payment for trusts in this category is due as per their notice of assessment.

Lodge tax returns for new registrant (taxable and non-taxable) large or medium entities (except individuals).

Payment (if required) for companies and super funds is also due on this date. Payment for trusts in this category is due as per their notice of assessment.

Lodge tax return for non-taxable head company of a consolidated group, including a new registrant, that has a member who has been deemed a large or medium entity in the latest year lodged.

Lodge tax return for any member of a consolidated group who exits the consolidated group for any period during the year of income.

Lodge tax return for large or medium new registrant (non-taxable) head company of a consolidated group.

Lodge and pay Self-managed superannuation fund annual return for new registrant (taxable and non-taxable) SMSF, unless they have been advised of a 31 October 2023 due date at finalisation of a review of the SMSF at registration.

Note: There are special arrangements for newly registered SMSFs that do not have to lodge a return – see Super lodgment .

Lodge and pay quarter 2, 2023–24 activity statement for all lodgmentmethods.

Pay quarter 2, 2023–24 instalment notice (form R, S or T). Lodge the notice only if you vary the instalment amount.

Annual GST return – lodge (and pay if applicable) if the taxpayer does not have a tax return lodgment obligation.

Note: If the taxpayer does have a tax return obligation, this return must be lodged by the due date of the tax return.

Lodge and pay quarter 2, 2023–24 Superannuation guarantee charge statement if the employer did not pay enough contributions on time.

Note: Employers lodging a Superannuation guarantee charge statement can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They still have to pay the remaining super guarantee charge.

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First Home Super Saver Scheme

Thu, 30 Nov 2023 09:18:00 GMT

The First Home Super Saver Scheme (FHSSS) allows eligible Australians to build their first home deposit within their superannuation, utilising the tax cuts available to super funds. The scheme could boost deposit savings by at least 30% when compared to savings in a standard deposit account.

Both before-tax (concessional) and after-tax (non-concessional) contributions made from 1 July 2017 are eligible for the FHSSS, these can be withdrawn from 1 July 2018 along withadditional deemed earnings (equal to the ATO Shortfall Interest Charge rate). The property must be a residential premises or vacant land (if planning to build), and you must occupy the property for at least 6 months within the first 12 months after purchase or construction.

Eligibility

1. 18 years or over when requesting to release funds (eligible contributions can be made before 18 years of age).

2. You’re a first home buyer who has never owned property in Australia, unless the ATO determines have suffered financial hardship (see below).

3. You haven’t previously requested a FHSSS release.

4. Assessed on an individual basis, meaning couples, family or friends are each able to access their own FHSSS contributions to purchase the same property. Purchasing with someone who has previously owned a property will not impact eligibility.

Making Contributions & Limits

Contributions can be up to $15,000 a year and $50,000 in total, provided the contributions are within existing contribution caps. These contributions can be made via:

1. Salary sacrifices if offered (concessional contributions)

2. Voluntary after-tax contributions (concessional contributions if claimed as a tax deduction)

While it is recommended to check with your super fund before starting this scheme, there is no actual need to notify the ATO, your employer, or your superfund before making FHSSS contributions. The exception to this is if you apply under the financial hardship provision.

Financials Hardship

Individuals who’ve previously owned property could still be eligible if the ATO determines you’ve suffered a financial hardship event leading to loss of all ownership interests. These events include:

1. Bankruptcy

2. Divorce, de-facto separation, or a relationship breakdown.

3. Employment loss.

4. Illness

5. Natural disasters

A financial hardship application along with evidence should be made to the ATO to determine if financial hardship applies.

Tax Rates

Concessional contributions attract a 15% tax rate within the fund, while after-tax contributions are not taxed. FHSSS withdrawals are generally taxed at your marginal tax rate less a 30% rebate.

Withdrawals

Withdrawing FHSSS funds is a 2-step process including applications for firstly a FHSS Determination, and then a FHSS Release . You must have a FHSS determination before you sign a property purchase contract (including vacant land) as once a contract is signed you are no longer eligible to request a FHSS Determination .

You will need to purchase a property withing 12 months of withdrawing your FHSSS funds, with the option to request an extension to 24 months. If you don’t buy within the time frame, you may either contribute the released amount back into superannuation or pay a tax equal to 20 per cent of the concessional amount released (removes the FHSSS tax benefit).

For further information see First home super saver scheme | Australian Taxation Office (ato.gov.au)

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You are a long-time retired

Wed, 29 Nov 2023 00:00:00 GMT

For many retirees, there is now a reasonable expectation of increased life expectancy. For many this could mean 20-30 years of life after retirement. However, for many this is a challenge after a long working life.

It is becoming a challenge for many and leading to mental health challenges for retirees. The issue is that for many, work has been go, go, go for 30-40 years of our lives. For many it is also what defines who we are and what we are about. Other than family it is probably the one thing that provided day to day direction and purpose. Work can also be a social outlet, allowing mixing with fellow team members and customers.

A point I make with many of my clients is that in retirement they must have a reason to get out of bed in the morning. A purpose to drive then, keep mentally stimulated. Often at such a retirement stage it is hopefully not about the financial reward, but fulfillment and purpose. Where a family business is concerned retirement may mean more of a pottering stage of life. Coming and going as they feel, still being depended on and sense of being needed and still being there adding to the business overall success. For others, retirement may mean selling out of a business or total retirement from active employment in that business. In such as cases there may not be the ability to be involved in the business or industry.

So, what can we do?

If there is something to take from this article it is, be aware of mental health. Check in on yourself, others around you or family members that are transitioning. If you are feeling ‘retirement’ is taking a toll, seek help. There are many great resources to assist this change in life, simply do an internet search for retirement mental health.

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Engaging a Virtual or Fractional CFO

Tue, 21 Nov 2023 04:05:00 GMT

Not all businesses need (or can afford) a full-time head of finance. But, in addition to accurate and regular financial reporting, they need a strategic view of finance, whether that means budgeting, business planning, forecasting, fundraising, financial modeling, acquiring a business and so on.

Outsourcing

Outsourcing is a common way to save overhead… and ‘remote work’ is increasingly accepted in business culture. This has led to more organisations engaging a CFO on a part-time or contract basis. They collaborate with the bookkeepers, accounting team and management so the finance team can make a critical contribution to the development of the business.

An outsourced CFO is usually paid on an hourly basis or by a monthly retainer. This is a modest investment compared to a full-time hire which could involve a six-figure salary along with expensive benefits.

What should you look for in an outsourced CFO?

Communication skills are essential because the candidate will need to quickly get up to speed on your business, challenges and opportunities. They will also need to interact effectively with all stakeholders in the finance process, both senior and junior. On top of this, they may work remotely… which increases the need for exceptional communication skills.
Experience as a CFO: You are looking for someone who can QUICKLY be effective. Yes, they will require some training on your business but they should have significant (think 8 to 10 years’) experience in the field and be up-to-date on the latest tools and best practices.
Vertical expertise: Your market and industry will also require some expertise. A CFO who has worked in multiple industries may display the ability to quickly learn new industry practices. (On the other hand, they may have tried and failed in those industries and the opposite may be true!!)
Network: An effective outsourced CFO should have built a network of specialists, advisors, executives, potential employees and vendors who could add value to your business.
References: Look especially at references who speak for the candidate’s work as an outsourced CFO in your industry for a business at a similar stage of development.
Education: While this is not a requirement, most CFOs have a bachelor’s degree and/or an advanced business or finance degree. CPAs and other financial designations are also common.
Your own unique needs: Be really specific here. For example, perhaps you require certain ‘soft skills’, flexible hours, fast response times, research capabilities, proactivity, the ability to challenge management, fresh ideas or a long-term commitment to mirror a long-term project underway.

How do you find an outsourced CFO?

You might find candidates through job boards, workshops, referrals or your network. Some agencies specialise in outsourced finance roles and they may have access to a larger pool of qualified candidates. Your accounting firm may also offer a ‘CFO package’ and they have the advantage of already understanding your business.

Ideally, you want to consider at least three candidates for any role.

Make sure you finalise a clear scope of work in advance and then allocate time and resources to onboarding. Time spent upfront familiarising the candidate with your business and needs is time well-spent. And it sets the candidate up for success. After that a regular check-in with clear reporting lines is essential.

When is an outsourced CFO successful?

With clearly outlined objectives, detailed reporting and a regular meeting schedule, all parties will know how results are measured and evaluated. There’s also value in flexibility because goals and needs will inevitably evolve.

A final thought

Be ambitious! An effective outsourced CFO is a strategic hire and can have a massive positive impact on a business in terms of growth and profitability. Aim high, get results and don’t accept platitudes or excuses!

6 Ways to Improve Cash Flow by Managing Receivables (Collections)

Wed, 20 Sep 2023 04:06:31 GMT

All businesses should carefully monitor their cash position.

Healthy cash reserves enable investment in growth, allow distributions to owners or – for some businesses – can be a matter of survival. In any case, cash management is critical.

One way to improve the cash position is to carefully manage Accounts Receivable (or collections). Here are some Best Practices which can positively impact the cash position.

1. Set weekly cash collection targets

Accounts Receivable (AR) management is an important business process and clear targets should be set. Short-term targets help you chip away at the larger AR balance. These targets can be increased or decreased depending on your cash requirements and the total AR balance at any time.

2. Improve the invoicing process

It’s difficult to maintain a low AR balance when invoices are sent late or contain errors. Also, an overdue invoice should immediately trigger follow-up actions, signaling to your customer that you are serious about collecting your cash on time.

3. Make getting paid easy!

Give multiple payment options and make payment as convenient as possible so there can be no excuses. Online payment options are increasingly popular in most industries.

4. Offer discounts for quick payments

This lets the customer know that you value getting your cash on time and offers an incentive for them to pay you fast.

5. Stay in touch with customers (especially regarding the state of their business)

Business conditions are always changing. Hopefully things improve… but some customers will encounter difficulties which compromise their ability to pay you. Early warnings help you take appropriate action, but this requires you to stay in touch with customers.

6. Prioritise customers with large AR balances

Your Accounts Receivable process should prioritise customers where returns will be greatest. That doesn’t mean you neglect the others… but recovering a large debt will have the biggest impact on cash AND increase team morale!

In conclusion, success in Accounts Receivable management comes from building systems and implementing them consistently. That’s better than waiting for the AR balance to spiral out of control… and then trying to fix things. A few small steps can make a big difference to cash… so why not get started?

Technology Boost

Wed, 30 Aug 2023 09:56:00 GMT

On 29 March 2022, as part of the 2022–23 Budget, the then government announced it would support small business through these new measures. The measures became law on 23 June 2023.

The technology boost provides eligible small businesses with a bonus tax deduction for qualifying expenditure that was incurred in the period commencing 7:30pm AEDT 29 March 2022 until 30 June 2023 that relates to digitising the operations of the business.

The bonus deduction is calculated as 20% of the qualifying expenditure. However, this is capped at a maximum bonus deduction of $20,000 per income year. As the boost can apply to expenditure incurred in part of the 2022 income year and across the 2023 income year this will work as follows for an entity that has a standard 30 June year-end:

• There is a maximum bonus deduction of $20,000 for expenditure incurred in the 2022 year; and

• There is a separate maximum bonus deduction of $20,000 for expenditure incurred in the 2023 year.

In order to qualify for the boost the expenditure must be incurred wholly or substantially for the purposes of the entity’s digital operations or digitising the entity’s operations.

The below list are the types of expenditure that might qualify:

• Digital enabling items – computer and telecommunications hardware and equipment, software, internet costs, systems and services that form and facilitate the use of computer networks;

• Digital media and marketing – audio and visual content that can be created, accessed, stored or viewed on digital devices, including web page design;

• E-commerce – goods or services supporting digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services, and advice on digital operations or digitising operations, such as advice about digital tools to support business continuity and growth; or

• Cyber security – cyber security systems, backup management and monitoring services.

The post Technology Boost appeared first on Green Taylor Partners .

Xero Tips & Tricks

Wed, 30 Aug 2023 09:42:00 GMT

Accounting software like Xero has made it much easier and quicker for small business owners to manage their finances. That being said, there are lots of shortcuts and features that could make Xero even easier that you may not know about. Following is some handy tips and tricks (at the general user access level) to help you get the most out of your software.

View Multiple Pages

Sometimes we need to view multiple areas of our Xero file at one time. To do this, open each page in a new tab by right clicking on the area and selecting ‘open new tab’.

View Multiple Organisations

Small business owners sometimes have multiple organisations. If this involves money flowing between the two or more entities, you need to make sure the transactions are properly recorded on each side. To open two unique Xero files at once, you will need to open each organisation in a new browser (Chrome & Explorer for example).

The + Icon

Using the little plus icon in the top right corner lets you quickly access several commonly used functions such as creating a new invoice/bill, spend/receive/transfer money, contacts, or purchase order/quote.

Demo Company

If you’ve ever wanted to enter a new type of transaction but didn’t want to mess up your financials, Xeros D emo C ompany may be your answer. The demo company lets you test transactions with usable data with no worry of impacting your own file. To access, open the drop-down menu next to your business name in the top left corner and select My Xero. At the bottom of the next screen, you will see the link to ‘ Try the Demo Company’.

Repeat Invoices & Bills

Regular invoices and bills can be set up with the Repeat Invoice function . This involves setting up a template so Xero can automatically create the invoice/bill at your set frequency. From the invoice/bill screen, drop down the ‘New Invoice/New Bill’ tab and select ‘New Repeating Invoice/Bill’. From here you can create a new template or use an existing one.

Invoice Reminders

You’ve already got plenty on you plate without chasing invoice payments, so let Xero take care of your accounts receivable follow up instead. Invoice reminders can be set up based on how far past the due date an invoice is.

Open the dropdown menu from your business name, click Settings > Invoice Settings, then the Invoice Reminder button. Customise your overdue reminder settings, going so far as to customise each reminder email template. Additionally, you can opt to attach a copy of the overdue invoice or not send reminders to certain customers/ invoices under a certain amount.

Email PDF Bills to Xero

Every Xero file has its own unique email that supplier bills can be emailed to. They appear as a draft bill in Xero with some details (such as invoice number, date, contact, and amounts) prefilling. The PDF is automatically attached to the bill.

See more information at https://central.xero.com/s/article/Email-PDF-bills-into-your-Xero-organisation

The post Xero Tips & Tricks appeared first on Green Taylor Partners .

WorkCover Insurance & the Excess Buyout Option.

Wed, 30 Aug 2023 09:40:00 GMT

Did you know, just like Home or Car insurance, when one of your employees makes a workcover claim, as the employer, you are liable to pay an excess?

You can avoid the risk of paying the employer excess by selecting the excess buy-out option on your WorkCover Insurance premium.

The buy-out option is a feature you can add or remove from your policy and is available to all employers. Ordinarily, when your employee is injured at work and the worksafe claim has been accepted, you need to pay the first 10 days of weekly compensation payments and the first $824 (in 2023-24) of medical and related like expenses, this is your employer excess.

The buyout option removes the need for you to pay these excesses on claims lodged against you. WorkSafe will cover these costs from day one.

Depending on your business and the risk involved, the excess buy-out option could be a cost-effective alternative, however, it does increase your insurance premium by 10%

If you need more information, you can find it on the worksafe website here: https://www.worksafe.vic.gov.au/excess-buy-out-premium-payments

I recommend doing your own research and make an informed decision to work out if it makes financial and strategic sense based on your individual business and the risks involved in your workplace.

The post WorkCover Insurance & the Excess Buyout Option. appeared first on Green Taylor Partners .

Why is my tax refund so small this year?

Wed, 30 Aug 2023 09:39:00 GMT

The tax refund many Australians expect has dramatically reduced. We show you why.

There is a psychology to tax refunds that successive Governments have been reticent to tamper with. As a nation, Australia relies heavily on personal and corporate income tax, with personal income tax including taxes on capital gains representing 40% of revenue compared to the OECD average of 24%. And, for the amount we pay, we expect a reward.

The reward is in the form of tax deductions that reduce the amount of net income that is assessed for tax purposes and tax offsets that reduce the tax payable, generating a refund for some. And, refunds have a positive impact on tax compliance.

As part of the previous Government’s efforts to flatten out the progressive individual income tax system, a time-limited low and middle income tax offset was introduced. The lifespan of the offset was extended twice, partly as a stimulus measure in response to COVID-19. The offset delivered up to $1,080 from 2018-19 to 2020-21, and up to $1,500 in 2021-22 for those earning up to $126,000. This was a significant boost for many people each tax time and bolstered the tax returns of millions of Australians. For many, the end of this offset has meant that their tax refund has reduced dramatically compared to previous years.

The post Why is my tax refund so small this year? appeared first on Green Taylor Partners .

Tax Refund

Wed, 30 Aug 2023 09:37:00 GMT

Looking at a Tax Refund this year? (even though our refunds are probably reduced this year)

Want some smart ideas of what to do with your Tax Refund?

With some extra coin it is always tempting to go off and splurge, but that is not necessarily a good idea! Try the following ideas of what you can do with your tax refund.

1 – Start/Increase your emergency fund – It’s always a good idea to have some money spare for a rainy day, so if something bad happens you’ll have some cash to use in those emergency situations.

2 – Pay off outstanding credit cards & other high interest debt – If your credit cards & debts are starting to get out of control, use your tax refund to get them under control. Credit card debt is the worst kind of debt with interest on unpaid balances often very high.

As an added bonus point, getting your credit card debt under control will help with your stress levels: no one likes having debts out of control.

3 – Put money into super – This one is far less exciting than going out and spending your refund on what you want, but this is your nest egg for retirement. The earlier in life you put away money, the more time it has to grow for you. Also depending on your income and age, the government may even chip in a bit of extra super for you; have a look at https://www.moneysmart.gov.au/superannuation for more information on this.

4 – Save it – Ok, this one is obvious, but every little bit goes a long way. So if you are saving for a house, car, holiday, etc. your tax refund will help you reach your savings goals quicker.

5 – Donate – Donating some (or all) your tax refund will not only make you feel good, but depending on the organisation (if it’s a deductible gift recipient) this will become tax deductible to you in the following tax year….. and help you get a tax refund!

6 – Treat yourself with what is left over – now I know at the start I said splurging is not always a good idea, but maybe you can treat yourself a little! (You’ve worked hard all year so a little bonus is always good)… but moderation is the key.

The post Tax Refund appeared first on Green Taylor Partners .

HOW TO RE-ENGAGE QUIET QUITTERS

Wed, 30 Aug 2023 09:35:00 GMT

Employee turnover is a concern for employers, but the subtle phenomenon of quiet quitting can be equally detrimental to the workplace.

Quiet quitting refers to when employees disengage from their work and discontinue their discretionary efforts without openly expressing their intentions to leave the organisation.

This phenomenon can be challenging for employers to detect and address, as employees are physically at work but may not be fully engaged or committed to their work.

In this article, we will explore the concept of quiet quitting and provide strategies for employers to effectively manage this challenge in the workplace.

UNDERSTANDING THE SIGNS OF QUIET QUITTING

Quiet quitting can manifest in various ways, and it’s essential for employers to be able to recognise the signs.

Quiet quitting is a term used to describe an employee that has become disengaged from their work. An employee who is quietly quitting is likely to be categorised as a detractor with regard to the workplace.

Employees who are quietly quitting may exhibit a decline in productivity. They may not be putting the same effort or enthusiasm into their work as before, resulting in missed deadlines, incomplete tasks, or subpar performance. In a nutshell, they essentially check out mentally, while still physically showing up to work.

Employees who are disengaging may withdraw from team discussions, avoid volunteering for tasks or projects, and generally demonstrate a lack of interest in participating in workplace activities.

Normally, quiet quitting is a sign your employee is no longer engaged with your brand, their role or overall purpose. It can be a reaction to things like being passed over for promotion, feeling like they aren’t valued or not receiving enough recognition.

It could also be a sign they are ‘over’ their role – not feeling challenged enough (their learning curve has flattened). They may not have enough clarity to know how they can be successful in their role, or be overwhelmed.

MANAGING QUIET QUITTING CHALLENGES

Managing quiet quitting can be complex, as employers must proactively identify and address the signs before they escalate into a more severe issue.

The best way to prevent quiet quitting starts at the talent acquisition stage of recruitment.This includes identifying individuals who show a connection to your business purpose, brand, and value/mission.

Next is to have a strong bond with their manager and being able to have honest and transparent conversations which will mean the manager will be able to identify reasons behind potential disengagement, and how to prevent them – setting clear expectations, growing the employee (so they are challenged but not overwhelmed) and reinforce the value an employee brings to the business.

Quiet quitting can also be short-lived – it could also be a defence mechanism against burnout or something a well-timed holiday can fix.

It is really important to understand what the triggers are for quiet quitting so that the core reasons can be addressed, such as treating the root cause rather than the symptoms.

The most important thing is not to assume. No one wakes up in the morning and goes to work intending to do a bad job. You never know what is happening in your employee’s life and what could be impacting them.

The post HOW TO RE-ENGAGE QUIET QUITTERS appeared first on Green Taylor Partners .

Are You Planning For Your Future

Wed, 30 Aug 2023 09:34:00 GMT

Here are a few simple steps you might at least consider when thinking about your future.

Help your super grow

Whether you’re employed or self-employed, it’s never too late to build up your super to boost your retirement savings.

Make sure your employer is paying you the right amount of super.

Develop an investment plan

Planning is the key to successful investing. Creating a plan will help you find investments that fit your investing time frame and risk tolerance, to help you reach your financial goals sooner.

Before you invest, review your financial situation.

Write down what you owe (your debts) and what you own (your assets). For your assets include your:

Then write down your income and expenses. A budget planner can help you track what money is coming in and going out. This will help you see how much you can put toward investing regularly.

Set your financial goals

Write down your financial goals. For each goal include how much you’ll need and how long you have to reach it.

Understand investment risk

Investment risk is the likelihood that you’ll lose some or all the money you’ve invested. This can be due to your investment falling in value or not performing how you expected. All assets carry investment risks — some are riskier than others.

Little things now can make a big difference down the track.

The post Are You Planning For Your Future appeared first on Green Taylor Partners .

Managing HR in your Workplace

Wed, 30 Aug 2023 09:32:00 GMT

Recently GTP invited the Victorian Chamber of Commerce and Industry (VCCI) to attend and present a training session to our entire Team.

This session was aimed as both a refresher and an update of current legislation related to :

This session reinforced that everyone has a responsibility to understand the expectations on any workplace with regard to discrimination and equal opportunity.

It also reinforced the importance of having current and relevant policies in place for everyone to focus on.

The post Managing HR in your Workplace appeared first on Green Taylor Partners .

Look For Solutions, Not Just Problems

Wed, 30 Aug 2023 09:31:00 GMT

Here’s an article for every member of every team. Problems (or challenges, as we prefer to call them) are a natural offspring of change, and plenty of them are seen in the workplace every day.

Becoming a finder of solutions, as opposed to just pointing out problems or complaining about them will make you an invaluable member of any team.

Too often people think complaining is a constructive act and once the complaint is noted, no further action is required by the individuals. They’re keen on identifying all of the problems – often in an accusing fashion – but contribute little towards improving things.

Both in and out of work, people become experts at dodging personal responsibility and using their energy to criticise others instead. We’ve all done it at some time or other, but as we look for other people to blame, we disempower ourselves.

In the long run, the finger pointing approach simply does not work – the organisation’s values grow out of individual employees’ values. So instead of pointing fingers, and trying to assign blame, a business would be so much stronger if everybody in it assumed ownership of problems and said “let the solutions start with me.”

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LEAVE WITHOUT PAY: WHAT YOU NEED TO KNOW

Wed, 30 Aug 2023 09:28:00 GMT

Requests for unpaid leave can be tricky to negotiate. Here’s what you need to know about your obligations and having proper policies in place.

“I want to take an unpaid sabbatical for a year.”

“I’m out of annual and carers leave, can I take unpaid leave to care for a family member?”

These are both questions employers might hear at some point – and it might take them by surprise if they’re unprepared. Leave without pay is an area where it’s crucial for employers to have appropriate policies in place because, without one, they might be caught wondering what to say when a request arises.

DEALING WITH UNPAID LEAVE REQUESTS

Employees mostly request unpaid leave when they have already exhausted their paid leave requirements.

Reasons can include wanting to:

And while the Fair Work Act says an employer can’t reasonably refuse paid annual leave requests, it’s not so clear cut when it comes to taking leave without pay. While some forms of unpaid leave – such as parental and community service leave – are considered an entitlement under the National Employment Standards, others are left more to the employer’s discretion.

The decision, therefore, comes down to the reason the leave is being requested, the size of the business, the impact the absence will have, and how long the leave is for, as well as whether an employer has a policy. For example, it might be reasonable to refuse a long leave request for a backpacking trip if you’re a very small business.

Having a policy ensures an employer clearly sets out the circumstances in which they’re prepared to grant this kind of leave. It also helps if they’re unsure whether to treat an employee as having abandoned their employment if, for example, they’ve taken unpaid leave without permission.

As well as this, a policy helps employees understand their obligations while on unpaid leave, such as how often they have to check in with their employer.

Alongside having a policy, employers should always make sure that any leave without pay arrangement is confirmed in writing.

UNPAID LEAVE – HOW DOES IT IMPACT SERVICE?

Another area to be across is how taking unpaid leave impacts continuous service. According to the Fair Work Ombudsman, two key points to understand about this are:

If you need help getting across this, have a look at My Business Workplace’s Leave Without Pay policy . Like all Workplace policies and documents, it is drafted by leading legal professionals with the needs of SMEs in mind. Check out My Business Workplace for further HR support.

The post LEAVE WITHOUT PAY: WHAT YOU NEED TO KNOW appeared first on Green Taylor Partners .

Five Tips for Bringing in More Business

Wed, 30 Aug 2023 09:27:00 GMT

A business has to take stock of its growth and retention strategies as much as it has to monitor its inventory. It does not have to be an overwhelming task. Here are five simple ways you can begin to bring in more business and improve your existing business:

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What is Estate Planning?

Wed, 30 Aug 2023 09:25:00 GMT

Making a plan for when your gone, or you can’t make your own decisions is a good idea to make sure your wishes are carried out.

This includes preparing and keeping your will up to date, setting up in your will any testamentary trusts and completing superannuation binding nominations.

It should also cover how you want to be cared for – both medically and financially, when you can’t make your own decisions.

Your estate planning documents should include any powers of attorney, a power of guardianship and advance healthcare directives.

Your will is a legal document stating what is to happen to your assets when you die. It can cover who is to get your assets, who is to look after children, and plans for your funeral.

It is important to keep your will up to date if your situation changes. Getting married voids your will and you will need to prepare a new will.

A binding superannuation nomination directs your super fund trustee as to whom is to receive your super benefit when you die. If you don’t have a nomination, your super fund trustee decides who the money will go to.

Having a power of attorney gives the legal right to someone to look after your affairs for you. It’s important to appoint someone who is trustworthy, knows what they are doing and will be there for you. There are different types of powers of attorney.

You should also consider as part of your estate planning to have certain documents kept in a safe place. This includes your birth certificate, bank account details, superannuation papers and other medical and insurance documents.

In most cases you will require legal advice when preparing these documents but you can still talk to your trusted advisor at GTP for guidance.

The post What is Estate Planning? appeared first on Green Taylor Partners .

Corporate Trustee: the Superior SMSF Trustee Structure

Wed, 30 Aug 2023 09:20:00 GMT

In the realm of wealth planning, a self-managed superannuation fund (SMSF) is a powerful tool, granting individuals autonomy over investment of their retirement savings and providing strategic planning opportunities not available in larger super funds. A critical decision when setting up an SMSF is choosing between a corporate trustee and individual trustees. While the simplicity of individual trustees may seem appealing, a corporate trustee offers numerous advantages.

In this article, we will explore the reasons why a corporate trustee is superior to individual trustees for managing your self-managed superannuation fund.

Single member funds

Generally, all members of an SMSF must be trustees or the directors of a corporate trustee. However, single member SMSFs must have at least two individual trustees or else have a corporate trustee where the member is sole director, or one of only two directors.

Should you choose to have another individual involved in your SMSF, that person will have equal powers and the ability to impact decision making in relation to your benefits.

Being the sole director of a corporate trustee can provide you with full control over your super, especially if you do not want, or have available, another suitable individual to aid in decision making.

Smoother succession & administrative efficiency

SMSFs face several challenges to smooth operation of the fund where membership changes, or in the case that a Trustee loses capacity or passes away.

A corporate trustee has an indefinite lifespan and provides continuity of asset ownership, remaining in place with the directorship merely updated to add or remove individuals as needed.

While paperwork is still required to update account signatories, this is much less onerous than the requirement to obtain an amending Trust Deed and change the name of asset registration under an individual trustee arrangement.

Segregation of assets & asset protection

The assets of an SMSF must be kept separate from the personal and business assets of the funds’ members – failure to do so can result in significant penalties.

Establishing a special purpose company which undertakes no activities other than to act as corporate trustee provides clear and separate asset ownership.

A company has limited liability, which ensures that in the case litigation is bought against the SMSF claims are limited to the assets held by the company and the member’s personal assets are not at risk.

Limiting administrative penalties

Though most Trustees don’t intend to contravene the superannuation laws, failure to uphold Trustee responsibilities may result in penalties being imposed.

SMSFs must be maintained for the sole purpose of providing retirement benefits to members or death benefits to their dependants. Making an unauthorised withdrawal of benefits that must be preserved within the SMSF until retirement could result in a fine of up to 60 penalty units per breach per trustee, with one penalty unit costing $313.

The cost of a single breach is $18,780 per trustee; an SMSF with 6 individual trustees could pay $112,680 in the event of a serious breach.

As the penalty is applied per breach, and more than one breach may be found, the cost of non-compliance can be significant for SMSFs with individual trustees.

Conclusion

While having individual trustees for your self-managed superannuation fund may be enticing for their initial ease of setup, choosing a corporate trustee offers numerous long-term benefits. From providing enhanced asset protection to simplifying administration and compliance, the advantages of a corporate trustee can outweigh those of individual trustees. The perpetual existence of the corporate entity ensures seamless succession planning, while offering asset protection benefits and full control for sole member funds. Opting for a corporate trustee is a prudent and strategic choice for anyone seeking to optimise the management of their SMSF.

Livio Caiolfa – Primestock Securities Ltd

The post Corporate Trustee: the Superior SMSF Trustee Structure appeared first on Green Taylor Partners .

Insurance

Wed, 30 Aug 2023 03:22:00 GMT

Insurance… How Boring!

It may sound boring but very important!

Do you have your car insured? How about your house? Your income? What about YOU?

We are all very aware how important it is to have the things we can see insured like our homes and vehicles, but what can be more crucial and forgotten is our income and our lives.

How would you afford to live if you were off work from a non-work accident or injury? How would your family survive financially if you died?

Recently I had a friend who hurt her ankle severely in Netball and was off work for over two months. She is a nurse and needs to be on her feet to work. After a month off work, she made a comment to me in passing that she needed her ankle to ‘hurry up and heal’ so she could get back to work. My response to her was don’t you have income protection… Na….. Have you looked to see if you have income insurance in your Superannuation Fund? And her reply was “HUH?!”

For most of us who have an industry Superannuation Fund, when it is set up you will have by default received some kind of Income Insurance, Total and Permanent Disability (TPD) Insurance, and Life Insurance. So, go have a look at your Super statements and see what you have and is it enough!

Make sure that if you get hurt that you can still afford to live. Or if you die – you want your family to be protected.

Green Taylor Partners are not financial advisors, but we can point you in the right direction if you need some guidance on this. Please call us – when the worst happens, we don’t want money to be a concern!

The post Insurance appeared first on Green Taylor Partners .

9 Ways to Strengthen Financial Controls in a Remote Work Environment

Tue, 22 Aug 2023 04:10:45 GMT

Employing remote workers presents additional challenges related to financial controls.

Managers and employees may not believe they are at risk but studies by the Association of Certified Fraud Examiners show companies with fewer than 100 employees are more likely to lose money to fraud.

Leaders need to demonstrate the importance of improving financial security and minimising risk. Here are measures they can take.

1. Clear Policies and Procedures

The starting point is to develop comprehensive policies and processes for financial transactions, expense reimbursements and approvals. Each business is different, but these policies may:

Eliminate or minimise the need for in-person interaction, which is obviously a challenge for remote workers
Require proper documentation and validation of expenses incurred by remote workers, like submitting invoices and confirmation of payments made
Provide banks with a list of payees so that payments to a recipient NOT on the list require additional approval
Limit the number of authorised signers and lower their approval thresholds, especially where there may be reduced oversight of remote workers

2. Virtual Training, Education and Teamwork

A heightened risk involving remote workers occurs when a “bad actor” sends an email that appears to come from a senior employee requesting that a payment is processed, along with a false justification. Remote employees are more prone to these scams, partly because there is no easy way to ‘gut check’ these situations. To reduce risk:

Train remote workers on financial controls, fraud prevention, and cybersecurity
Provide access to a contact person for questions or concerns regarding financial matters
Consider additional rules like requiring remote employees to call someone who makes a payment request and/or limiting the number of people who can process payments

3. Use of Secure Technology

Pay particular attention to the technology used by remote workers, for example:

Update spam filters, firewalls and security applications that protect against malware
Utilise secure and encrypted software for financial transactions, online banking, and data storage
Require a unique login AND multi-factor authentication (MFA) for any portal or system that allows employees to approve or process payments
Ensure digital payments create an audit trail: Who approved which payments and when?
Consider email encryption for sensitive information such as sales or financial data so only the intended recipient can see the message and attachments
Implement a data backup and recovery plan to safeguard financial data in case of a system crash or cybersecurity incident

4. Segregation of Duties

Implement checks and balances by separating responsibilities among different remote workers. For example, a person handling financial transactions should not also approve them.

5. Limit Access to Financial Systems

Grant remote workers access to financial systems and data only where absolutely required and regularly review and update access permissions as responsibilities change. Create roles with various permission levels in systems, then build supporting workflows to manage the necessary approvals.

6. Revise Processes Frequently When There is High Employee Turnover

High Employee Turnover usually means a change in responsibilities that could impair or break a key control. Pay close attention if the business has eliminated positions, because disgruntled former employees may be more likely to commit fraud or otherwise harm your business.

7. Mandatory Reporting

Encourage remote workers to report any suspicious activities they come across, providing an anonymous reporting mechanism if needed.

8. Conduct Background Checks

Perform thorough background checks during the hiring process to verify the credentials and integrity of remote workers.

9. Make Adherence to Financial Controls Part of Performance Reviews

Build financial responsibility and compliance into the culture by making it a part of remote workers’ performance evaluations.

Financial controls are not new in business… but increased remote work presents new challenges. Assess the risk in your business and take decisive measures to improve financial security.

Self-Managed Super Fund Structures

Wed, 09 Aug 2023 01:12:00 GMT

Self-Managed Super Funds

Self-managed super funds (SMSF’s) are a way of saving for your retirement. The difference between a SMSF and other types of super funds is that the members of a SMSF are usually also the trustees. This means the members of the SMSF run it for their benefit and are responsible for complying with the super and tax laws.

SMSF Structures

The superannuation law sets out the basic rules for structuring a SMSF. One of these rules requires the SMSF to have a trustee. There are two trustee structure options, either individual trustees or a corporate trustee .

There are many considerations when determining whether a SMSF should opt for individual trustees or have a corporate trustee, such as administrative efficiencies, legal liability, asset protection, succession planning and cost.

As trustees are equally responsible and liable for managing the fund, they need to be comfortable sharing this responsibility with the other fund trustees.

A corporate trustee can have a sole director with full control over the fund, while a fund with individual trustees will need to have at least two individual trustees. For this reason, a corporate trustee is generally chosen for a single member SMSF.

As it is a very important decision to set up a SMSF it is also very important to have the correct structure for your SMSF, please refer to your trusted advisor to seek the appropriate advise.

The post Self-Managed Super Fund Structures appeared first on Green Taylor Partners .

9 Ways to Reduce IT Costs

Sun, 23 Jul 2023 04:12:55 GMT

1. Audit your tech stack

The first step is to understand where you’re spending money now. Sometimes IT expenditure grows because of once urgent needs, one-off projects or even failed initiatives. This results in redundancies such as multiple applications doing the same thing. Figure out what you have now and what can be cut. This process usually yields some surprises.

2. Align with company strategy

Next, revisit and restate your business goals because they should be in sync with IT decisions. It sounds obvious, but a business growing through online sales MUST have an effective e-commerce website. And this is a priority over, for example, an HR intranet, which will have less impact on business goals.

3. Evaluate the IT team

Many businesses engage a combination of employees and contractors for IT needs. Contractors are advantageous because they can be employed in peak periods and offer skills not available internally. That said, you may be spending on resources who have outlived their usefulness. Consider utilisation rates and the value they are bringing. As priorities change, look at eliminating (or consolidating) positions to reduce costs.

At the same time, create an employment environment where employee turnover is reduced. IT employees are expensive to recruit and train. Competitive salaries, flexible work arrangements, training opportunities and time for passion projects may help to retain high-performing employees.

4. Reevaluate vendor contracts

Your needs may have changed since you entered contracts with vendors, for example, the number of seats you need or the amount of data storage. Most vendors are open to these conversations and prefer to adjust the scope rather than risk losing the business completely. You may also find software licenses which can be decommissioned because they’re past expiration dates or no longer supported.

5. Embrace cloud technology

In almost all cases, applications and data centers are best hosted in the cloud. There are rare exceptions, for example for legal or regulatory purposes. Migrating to the cloud needs careful planning but the long-term economic advantages are compelling and involve reducing capital expenditures (like servers) in favor of operational expenses.

6. Virtualise

Not all applications and databases require their own servers. Using containers, a single server can run multiple applications under a single operating system (usually Linux) without compromising performance and security. Likewise, by virtualising databases, it’s possible to query several databases at once without duplicating the data on multiple servers or manually combining databases. The result is increased speed, simplified queries, reduced bandwidth and less storage. And that means reduced cost.

7. Write-off sunk costs… and move on

Don’t continue investing in solutions that don’t provide value. Be decisive about moving on even if that means acknowledging projects have failed.

8. Look for quick wins

Discretionary spending may offer savings opportunities (unless the spending involves strategic projects). Likewise, variable costs like cloud data storage, the number of software licenses and consultants may be easier to cut than fixed costs such as rent, payroll and equipment leases.

9. Be strategic

There’s no reason why business leaders should be experts in IT (just like they’re not necessarily experts in accounting, tax or legal affairs). In that case, engage someone who can evaluate your long-term business and IT needs, then come up with an implementation plan. You may want multiple opinions on this since managing IT is like carpentry: Measure twice, cut once. No point saving cost on initiatives which need to be undone later. Be in a hurry but not in a rush.

Home Guarantee Scheme Expansion

Wed, 12 Jul 2023 05:47:00 GMT

Stuck in the rental cycle? Struggling to buy your first home?

Did you know the Labor government have just announced a significant expansion of criteria for the Home Guarantee Scheme?

Previously, the guarantees had been restricted to single applicants or people in a married or de-facto relationship.

From 1 ^st July 2023, joint applications for the First Home Guarantee and the Regional First Home Buyer Guarantee can include friends, siblings, and other family members.

Support is also available for people who have fallen out of homeownership, provided they haven’t owned a property in Australia in the last 10 years.

Eligibility is also changing for the Family Home Guarantee, expanding to include single legal guardians of children such as aunts, uncles, and grandparents.

All three guarantees will also become available to eligible borrowers who are Australian Permanent Residents, in addition to Australian citizens.

More information is available for the First Home Guarantee, Regional First Home Buyer Guarantee and Family Home Guarantee on the National Housing Finance and Investment Corporation website, which you can access here: www.nhfic.gov.au/support-buy-home

As a First Home Buyer, there are a range of other exemptions, concessions, and reductions currently available. Check out The State Revenue Office website to access this information and check your eligibility: www.sro.vic.gov.au/first-home-owner

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Tax Returns for Minors

Wed, 28 Jun 2023 00:03:00 GMT

Just like all Australians, minors (under 18) are liable for tax on assessable income, including wages earned, distributions received from trusts, or dividends received.

In order to lodge a tax return, they first need to apply for a Tax File Number (TFN). This can be done via multiple avenues.

Unlike adults, minors may not have certain documentation to apply for a TFN. Therefore, the requirements for minors are a little more lenient. In addition to traditional primary and secondary documents, minors under 16 can also use secondary school examination certificates, records of achievement, and examination reports to apply. This helps minors who do not yet have primary documents such as a passport, or secondary documents such as a bank statement. A Medicare card can also be used to support their application.

Due date and Tax rate

Once the financial year concludes (i.e. 30 June) minors usually have till 31 ^st of October to complete and lodge their tax return. If they are to receive distributions from a discretionary or testamentary trust, their tax return can be lodged after lodgement of the tax return for the trust and before the due date of lodgement of the trust return (usually the 15 ^th May)

Minors are assessed differently than adults depending on the types of income they receive. The tax rate for minors can also be quite high, so if you have any queries, please talk to your trusted advisor at Green Taylor Partners.

Further information is also available on the ATO website.

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Reviewing Cost to Increase Cash and Drive Profits

Tue, 27 Jun 2023 04:15:36 GMT

All businesses should review their expenses periodically.

Prudent expense management helps ensure that valuable cash resources are used wisely. And sometimes, a business may NEED TO reduce expenses as a matter of survival.

No matter what the circumstances, here are some Best Practices in reviewing and managing expenses.

1. Look first at non-core functions

When cost-cutting, focus FIRST on activities that do NOT directly generate a profit, that is, the non-core functions.

The core functions of your business drive revenue and profit, help you to differentiate yourself in the market, and usually involve interaction with your customers. These core activities could be inefficient… but look first at the support (or non-core) functions including finance, legal, administration, the office, human resources, data processing, supply-chain management, and logistics.

2. Look for redundant activities

Every activity or initiative in a business has a lifespan. That means even a really beneficial activity will eventually become inefficient or redundant. Expense reviews are an opportunity to look for redundant positions or processes that can be eliminated or restructured.

3. Look into the future

When considering cost-cutting options, think longer term than just the immediate savings. If something is going to be discontinued in the future anyway, maybe now is a good time to bring it to an early close. For example, no point continuing to invest in your office, training programs, or IT systems if these are to be discontinued down the line.

4. Be transparent with employees

Payroll may be the subject of cost cutting. It’s likely your employees have a good idea of what is going on and an honest presentation of the facts will bring the best results for the organisation. Set reasonable expectations about the future to build a track record and trust.

5. Keep up some marketing presence

How the market perceives your situation is important. Completely ‘falling off the radar’ may raise questions among prospects, clients, and referral partners. Maintaining a presence, for example, in social media is an inexpensive way to ‘be seen’ in the market.

6. Nothing is too small…

All of those ‘minor expenses’ add up. Don’t ignore office supplies, snacks, furniture, and that fancy coffee machine.

7. Stop autopay

Sounds simple… but most businesses are paying for things without properly scrutinising whether they are adding value. Autopay makes this scrutiny even harder… and delays the cancellation of underutilised subscriptions.

8. Renegotiate outdated contracts

Look especially at suppliers where you have a long-term relationship. It may be time to revisit the pricing and terms of payment. Sometimes just asking the question about costs will trigger your suppliers to offer a better deal.

And maybe you’re paying for things you don’t need, like cell phones assigned to ex-employees or seldom-used printers or copiers.

Keep a record of all long-term contracts and set alerts so you can revisit these several months ahead of expiration. Then negotiate, instead of simply letting the contract renew with the original terms.

Should you undertake an expense review in your business? Follow these Best Practices as a way to generate more profit and cash.

Small Business Granted Tax Amnesty

Wed, 21 Jun 2023 00:31:00 GMT

The Australian Taxation Office (ATO) is encouraging small businesses that have overdue income tax returns, fringe benefits tax returns or business activity statements to take advantage of a new amnesty to get their lodgements back on track.

The amnesty was announced in the 2023-24 Budget. It applies to tax obligations that were originally due between 1 December 2019 and 28 February 2022 and runs from 1 June 2023to31 December 2023.

To be eligible for the amnesty, the small business must be an entity with an aggregated turnover of less than $10 million at the time the original lodgement was due.

During this time, eligible small businesses can lodge their eligible overdue forms and the ATO will then proactively remit any associated failure to lodge (FTL) penalties.

When forms are lodged with the ATO under the amnesty, businesses or their tax professionals will not need to separately request a remission of FTL penalties.

All you need to do is lodge your outstanding tax returns or activity statements and the ATO will take care of the FTL penalty remission from their end.

The ATO encourages all businesses to lodge any overdue forms even if they are outside the eligibility period. Whilst forms outside the amnesty eligibility criteria will attract FTL penalties, the ATO will consider your circumstances and may remit such penalties on a case-by-case basis.

The ATO offers a range of support options, including payment plans. Many small businesses are also able to set up their own payment plan online.

The amnesty applies to income tax returns, business activity statements, and fringe benefits tax returns. It does not apply to superannuation obligations and excludes other administrative penalties such as penalties associated with the Taxable Payments Reporting System.

More information is available on:

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How will the $3 Million Superannuation rule work?

Tue, 06 Jun 2023 23:10:00 GMT

The Labor Government is looking to impose a new, extra tax of 15% on earnings for taxpayers with a Total Superannuation Balance (TSB) of greater than $3.0m.

In the Treasury Paper released by the Government, “earnings” is defined as the change in your TSB from the previous financial year, after taking into account contributions and withdrawals. Your TSB is measured on 30 June every year.

It is also important to note the following points:

ISSUES or CONCERNS for taxpayers

Based on the definition provided by Treasury, “earnings” will include unrealised gains. In other words, if your TSB is over $3.0m, you will be subject to the extra tax on increases in the value of assets you have not sold.

The obvious issue with this is from a cash flow perspective, if you are effectively having to pay tax on an unrealised capital gain, you will have to find the cash from somewhere to pay the tax!

The majority of our Self-Managed Superannuation Funds (SMSFs), hold property such as farming land, commercial & residential property. Increases in these values, regardless of whether they are sold, will now meet the definition of earnings and be subject to tax.

What Now?

It is important to remember, this proposal is not yet law, however, any major changes to the policy appear unlikely.

For now, there is no need for any knee-jerk reactions, such as selling assets or rushing to withdraw amounts from your superannuation. However, assuming this proposal becomes law and your TSB is likely to be over $3.0m on 30 June 2026, you will need to be aware of how this will impact you.

The post How will the $3 Million Superannuation rule work? appeared first on Green Taylor Partners .

Updates to SG & Medicare Levy Surcharge

Wed, 31 May 2023 01:46:00 GMT

The government’s 23/24 Federal Budget has released a range of measures including changes and updates to super guarantee and changes to the current Medicare levy surcharge threshold.

Changes to Super Guarantee (SG)

While the minimum surcharge will continue to increase 0.5% every year, The Government will introduce legislation requiring employers to pay super on payday instead of every quarter as is currently the case. This will take effect from 1 July 2026.

The Australian Taxation Office (ATO) will receive additional resourcing to help it detect unpaid super payments earlier and the Government will set enhanced targets for the ATO for the recovery of payments. These changes will improve retirement outcomes for around 8.9 million employees, including young and low-income workers who are most likely to have unpaid super.

Changes to Medicare Levy Surcharge (MLS)

The Government is releasing changes to Medicare levy surcharge thresholds. This is an additional tax (after the normal Medicare tax of 2%) on families and individuals who exceed the thresholds. The tables below show the current thresholds and updated thresholds for the 2023-24 financial year. It is important to be aware of these changes as it may impact your decision to invest in private patient hospital cover – which can exempt families and individuals from MLS.

The post Updates to SG & Medicare Levy Surcharge appeared first on Green Taylor Partners .

We are all Busy!

Tue, 23 May 2023 23:19:00 GMT

I often have conversations with others in the office about how there are not enough hours in the day. How life is so busy, and how we are all searching for that illusive work/life balance so often talked about.

This article by Megan Breen lists 5 ways to build your resilience. She says these are skills you can learn and implement to help you when things get tough.

In the workplace setting these skills may help you manage a heavy workload, or ensure your frustrations don’t derail your day.

It’s all about :

If you want to read the full article you can follow this link

https://www.acuitymag.com/people/five-ways-to-build-your-resilience?cid=O~E~MM-SMP-AU~CAANZ~202302&mkt_tok=OTc4LVJKQy0wMTgAAAGKLu3PvBN4PBIAU9TmAZQI_cTm9m_E31YnJzSJu6EDBJdmEKgVt12uiei_OHyLmhm-7dDsdQoIYjG4LjfpLYStaKrLu54FfKrK5AXzy77p6GtRXe6V_m6A7n1N

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Managing High Levels of Business Debt

Tue, 23 May 2023 04:17:46 GMT

An important responsibility of leaders is figuring out how to fund business operations and growth plans.

In the best case, a business will generate enough cash for operations, growth, and shareholder dividends. However, in many cases, leaders need to borrow money for growth and, in tough times, even the operations of their businesses.

Debt has its place…

Taking on debt is not necessarily a bad thing. In fact, some astute business people argue that it is better to use someone else’s cash for your business investments (even if you have the cash yourself). This assumes you can put the cash to use and generate returns which are higher than the cost of that debt.

How do businesses get into too much debt?

Excessive business debt can arise for a number of reasons. Investments may not pan out or take much longer to realise gains. An owner can run up debt on a personal credit card or a banker might extend a line of credit that’s used up but needs repayment at high-interest rates. Excessive debt means any positive cash flow is consumed by debt repayments. Failure to pay creditors, employees, suppliers, and overheads can have devastating consequences.

For businesses carrying too much debt, we encourage leaders to take early and decisive action. Each business is different… but here are some options.

1. Improve the inflow and outflow of cash

On the one hand, this means connecting with customers to sell more and get paid faster, even if that means offering discounts. Any increase in revenue (inflow) is highly desirable and means the business probably has good fundamentals. This can also mean renegotiating payment terms with suppliers through discounts and/or deferred payments. Anything to stem the outflow of cash is welcome.

2. Communicate with creditors

No one likes surprises, including creditors. Early notice of a delayed payment can help creditors look for solutions to improve their chances of collecting their cash. With enough information, they may be willing to reduce interest rates, increase your credit line or restructure repayment terms. On the other hand, failure to communicate with your lenders will probably make matters worse.

3. Consolidate your business loans into one payment

Dealing with a single creditor rather than many may reduce monthly costs, and possibly allow you to get a lower interest rate, all without negatively affecting your credit score.

4. Consider fundraising

For businesses with strong underlying fundamentals, a capital raise can overcome an adverse cash situation. This comes at a cost, including selling valuable equity and being exposed to a new shareholder(s) who will exert influence on the business. Still, angel investors, crowdfunding and accelerators can provide critical support to a vulnerable, cash-strapped business.

5. Cost reduction

It sounds obvious, but a business with debt, negative cash flow, and no external sources of capital will need to take drastic action. It’s just a matter of time before creditors come calling. In this case, reducing costs like rent, human resources, marketing, and procurement may allow creditors to be paid while keeping operations running. These are not easy decisions, but they may be necessary.

Conclusions

The obvious lesson here is to avoid debt unless the borrowings are sure to generate a positive return. If things go wrong, consider these ideas to bring the business back to health. And remember, many businesses have been through very tough periods but have clawed their way back. That’s part of building successful businesses!

Building Healthy Financial Habits

Wed, 10 May 2023 02:59:00 GMT

Have you ever checked your credit card or bank balance and wondered how you spent that much money? Poor financial habits can be a big stress factor if it means you are struggling to meet your monetary obligations. Luckily, there are some simple tips and techniques anyone can use to start building healthier financial habits for the future.

Budget
Money management starts with budgeting. It allows you to understand what you have coming in and how much you have going out. Budgets should not be viewed as a restriction, but rather as a tool to achieve your financial goals. You can update and adjust your budget as needed.

There are many free budgeting tools online, as well as free Excel templates, that can be used to help achieve your budgeting goals.

Set Goals
Think about the long and short-term goals you have in life. Maybe it’s a new car, a house deposit, or simply paying off an existing debt. Setting financial goals relevant to you will help get your spending habits in check and put you on track to reach these goals sooner.

Try to make these goals specific. Instead of “I want to save for a house”, instead say “I want to save a certain amount by a set date”. Tangible goals give you something to track your progress against and can be an excellent motivator. Impulse purchases suddenly won’t be as tempting.

Pay Yourself First
This means putting money into savings or investment accounts when you receive it rather than waiting until the end of your pay cycle to see what’s left. People who follow this habit rarely miss this money because it has already been moved ‘out of sight’ and they don’t see it as money they can spend.

Watch out for ‘Lifestyle Creep’ which occurs when someone’s lifestyle becomes more expensive as they begin to earn more money. Keep this in check by remembering the importance of investing in your future and savings.

Don’t Let Bills Sneak Up
Good bill payment habits mean less stress finding the money, fewer late fees, and better credit history. Budgeting and setting up automated payments that allow you to ‘set and forget’ can mean you rarely find yourself looking for bill money.

This could be as simple as scheduling a bill for auto-payment as soon as you receive it. If you want to be even more organised, it could mean working out the average weekly/fortnightly/monthly spend on a regular bill and having a set amount transferred into a dedicated bills account each pay cheque. This way, whenever a bill comes in you should be able to schedule an autopayment from your bills account without any fear of overdrawing.

Using these tips will help give you control and visibility of your money, letting you better manage your finances and achieve your financial goals sooner.

The post Building Healthy Financial Habits appeared first on Green Taylor Partners .

Can you claim landscaping expenses as a tax deduction?

Wed, 19 Apr 2023 01:42:00 GMT

Generally speaking, landscaping is considered to be an improvement to your property and therefore not tax deductible. It is instead a cost that will be added to the cost base of your property and will reduce any capital gain on the sale of the property in the future.

The Income Tax Act states that construction expenditure specifically does not include expenditure on landscaping (or other costs like demolishing existing structures, clearing, levelling, and draining).

It states that ‘the act’ of landscaping etc is not tax-deductible, however, if physical items are purchased as part of your landscaping costs, then these items are deductible and may be depreciated as capital works assets. Examples of this might include, brick retaining walls, concrete paths, a water tank, artificial grass, or a fixed raised garden box.

These items are considered to be capital works assets as they are ‘improving’ the property to make it better or more valuable. Improvement includes work that provides something new, furthers the expected life of the property, and goes beyond just restoring the efficient functioning of the property.

The rate of deduction for capital works is generally 2.5% or 4% per year, spread over a period of 40 or 25 years respectively. The rate used is dependent on the date construction began, the type of capital works, and how they’re used.

The post Can you claim landscaping expenses as a tax deduction? appeared first on Green Taylor Partners .

Using KPIs to Drive Management Decisions

Tue, 18 Apr 2023 04:20:30 GMT

Key Performance Indicators (KPI‘s) are important management tools and we encourage business leaders to use KPI’s in their businesses.

What is a KPI?

A KPI is quantifiable measurement or metric which helps track the progress towards business goals. Leaders use KPI’s to make better, data-driven decisions. They also guide behavior, productivity and decision-making, while providing transparency and accountability.

What forms can KPIs take?

There are different kinds of KPI’s. Here’s an overview:

Financial KPI‘s are the most common. Examples include operating and net profit margin, sales growth and accounts receivable turnover
Organisational KPIs measure strategic, long-term goals that are tied to a company’s mission or values. Examples include market share gains, customer acquisition increases, global expansion and revenue growth
Operational KPIs monitor day-to-day business performance of processes, teams and individuals in various business functions such as human resources, sales, inventory management and marketing
Leading KPIs are predictive. They point to possible future events or outcomes and are useful for planning purposes. For example, a sudden increase in the number of returned products might signal an issue with quality and indicate that revenue will drop in the future
Lagging KPIs measure what has already happened and highlight patterns or trends which help leaders make important decisions. For example, if inventory turnover has been decreasing in rece nt months, management may take action to reverse the trend.

How do leaders develop KPI’s for a business?

Each business is different but establishing KPI’s usually means:

Reaffirming the Business Goals. For example, a business aiming to increase revenue, enter new markets, downsize the labor force or acquire a competitor will be interested in different KPI’s
Defining KPI’s Suited to Your Goals: For example, a business focused on top-line growth may track the number of leads, sales conversion, number of Clients and revenue growth. The industry, or business model will also influence the KPI’s you choose. For example, a service provider may monitor Average Hourly Rates achieved on each project while a manufacturer may track how quickly they convert their investment in fixed assets and inventory into cash
Outline the Data Sources for KPI’s. There’s no point developing KPI’s for which you cannot easily obtain the underlying data or if that data is inaccurate. Establish how data will be collected and how often it will be updated.
Determine How to Communicate KPI’s. Charts and graphs presented in dashboards help the team to visualise progress without much explanation. Simplicity also helps leaders get buy-in from all stakeholders, especially those who are critical to achieving the business objectives.

How are KPI’s used?

Having developed KPI’s, use them for

Planning: Going through the process above will help leaders build robust long and short-term plans.
Tracking Progress: Internal meetings to review performance relative to KPI‘s helps managers to make adjustments and improve performance
Provide Focus: A team pulling together in the same direction is more likely to be successful. KPI‘s provide this focus while also forming the basis of incentive plans.

Do you need to develop or update KPI’s for your business?

Director Penalty Notices and Personal Liability

Wed, 12 Apr 2023 05:47:00 GMT

During the Covid-19 pandemic, the Australian government implemented economic response measures like Job keeper, instant asset write offs, and accelerated depreciation to boost cash flows.

The ATO also took a raft of administrative actions; curtailing enforcement activities, negotiating payment plans for tax debts, remitting interest and penalties and allowing extensions of time for yearly repayment of Division 7A loans. It chose not to expend compliance resources on scrutiny of a range of taxpayer transactions and arrangements.

However, with the easing of COVID-19 restrictions, the ATO has recommenced debt recovery activity, especially the issue of Director Penalty Notices (DPN).

Company directors are legally responsible for ensuring that their company meets its pay as you go (PAYG) withholding, “net” GST (goods and services tax, wine equalisation tax and luxury car tax) and superannuation obligations. If a company fails to comply with their obligations to pay the debt by the due date for payment, company directors are held personally liable for the amount the company should have paid.

A DPN may be issued if business activity statements, superannuation guarantee statements and/or instalment activity statements are not lodged within three months of the due date.

A DPN may also be issued if Business Activity Statements, Super Guarantee statements or instalment activity statements are lodged but the PAYG withholding or SGC debt remains unpaid.

The director will be personally liable for those tax debts unless the company pays the entire amount or is placed under external administration within 21 days of the date of the notice.

The onus is on the director to demonstrate that they took every reasonable step to ensure the company complied with its tax obligations or that no such steps could have been taken.

Alternatively, a director may show that they were unable to ensure compliance because of a serious illness or other reason.

The ATO can collect the penalty by deducting it from any personal income tax refund or imposing a garnishee notice.

The post Director Penalty Notices and Personal Liability appeared first on Green Taylor Partners .

Superannuation Reminder for Employers

Mon, 03 Apr 2023 01:45:00 GMT

You must pay super guarantee contributions for eligible employees. Super guarantee is in addition to salary and wages.

You will need to pay:

You may be able to use the free Small Business Superannuation Clearing House to make super contributions for your employees. You provide the contribution information for all your employees and make a single electronic payment to the clearing house – the clearing house does the rest.

Current & Proposed Super Guarantee Rates

1 July 2022 – 30 June 2023 10.50%

1 July 2023 – 30 June 2024 11.00%

1 July 2024 – 30 June 2025 11.50%

1 July 2025 – 30 June 2026 12.00%

1 July 2026 – 30 June 2027 12.00%

1 July 2027 – 30 June 2028 and onwards 12.00%

It will be interesting to see if these rates change in the next Budget.

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10 Tips on Onboarding Remote Employees

Tue, 21 Mar 2023 04:22:14 GMT

We’re seeing more businesses engage REMOTE employees and subcontractors as they try to attract the best talent, regardless of location.

Remote employment presents challenges, including ONBOARDING, which means helping employees quickly become comfortable, engaged, and productive. Here are tips on making the onboarding process a success.

1. Plan for IT needs well in advance

Employees cannot work effectively without secure access to business applications and company-supplied hardware. In addition, to set up, help may be needed on home-networking issues and explaining security protocols. Make sure this doesn’t create delays.

2. Be clear on the job description and work rules

This sounds obvious but, unlike office employees, enforcing rules and policies is more difficult. Working hours, roles, reporting lines, timelines, meeting schedules and travel protocols are just a few things which can become confusing. Flexibility may be appropriate… but it’s still essential to have clear ground rules in place.

3. Take an interest in the remote workspace setup

Some Employees have been working from home for years and are effective in a home environment. Others are novices and need a lot of guidance. The employer should ensure they have the necessary facilities like a desk, chair, laptop, phone and specialised gear, (like a noise-canceling headset), dependable internet and, possibly, a separate phone line. Develop policies around providing these to remote employees OR offering a stipend.

4. Assign a buddy

The buddy or mentor system can create a sense of belonging. It also facilitates meaningful introductions to co-workers, supervisors and managers (more than giving a list or link to a company org. chart).

5. Be aware of local employment regulations

Remote employees may operate in jurisdictions which determine withholding tax based on gross earnings, filing status, number of exemptions and pay frequency. Be aware of these rules as well as any other employer obligations like covering employee expenses arising from the discharge of their duties.

6. Stage the onboarding process

Avoid information overload. Complete onboarding in short, easy-to-digest sessions so that other important tasks don’t get neglected. Allow the remote employees time for questions as they work through onboarding.

7. Provide early exposure to development opportunities

Employers should offer professional development options which are appealing to employees – including remote employees. Make these available early so remote employees think long term about their employment future.

8. Provide a remote employee handbook

It’s worth investing in a comprehensive but simple document which anticipates remote employees’ questions and concerns. This can be shared once the contract is signed and forms part of the agenda for early meetings with the remote employee. At the very least, Frequently Asked Questions will give the remote employee confidence while saving the time of managers who need to respond.

9. Encourage collaboration

Remote employees may not be comfortable reaching out through existing channels. A buddy can help with this as can periodic team-building activities. Leaders have an important role in making team members comfortable and this may involve meeting one to one to better understand the personalities involved.

10. Happy teams are successful teams!!

Setting clear goals, good project management, clarity on roles, decisive leadership and clear communication usually leads to success in business. Teams thrive in this environment and focus on the successes versus challenges. This is especially the case for remote workers who may miss out on office activities.

In summary, work doubly hard to lay a foundation for the success of your remote employees. This initial energy and investment will yield positive long-term results. Prepare well, document your approach and be patient!

What to do if you have been scammed

Wed, 15 Mar 2023 00:37:00 GMT

Nearly $1.8 billion in losses due to scams were reported last year, due to the fact that only about one-third of victims report this to anyone. It is estimated that this figure is actually in excess of $2 million.

So this begs the question, what should you do if you have been scammed?

You will want to act as quickly as possible to avoid losing any more money. If you have been scammed:

If you’ve paid a scammer in any of these ways, here’s what to do:

If a scammer has your personal information

For example, if your personal details (like name, phone, email, address, and identity documents) have been leaked in a data breach. Here’s what to do:

If a scammer has accessed your computer or phone

For example, a scammer pretends to be from your internet or phone provider. They say you have a technical problem and ask for access to your device. Then they infect it with a virus, to steal your passwords and financial information. Here’s what to do:

You could also get an IT professional to check your devices in person.

Additional information/assistance can be found at:

www.moneysmart.gov.au – What to do if you have been scammed, how to report scams & get support

idcare.ord – Helps individuals affected by identity theft and cybercrime

Scamwatch.gov.au – Information for consumers and small businesses about how to recognise, avoid and report scams.

The post What to do if you have been scammed appeared first on Green Taylor Partners .

Last Call for Temporary Full Expensing

Wed, 08 Mar 2023 00:33:00 GMT

The past few years have seen the depreciation rules change several times; 50% upfront deductions for new plant & equipment under the ‘Backing Business Investment’, increasing the Instant Asset Write to $150,000 and most significantly, from the 6 ^th of October 2020, including Temporary Full Expensing (TFE), which effectively uncapped Instant Asset Write-Off.

After a few years and some substantial depreciation claims, thanks to full expensing, all good things must come to an end. TFE will end on the 30 ^th of June 2023, and eligible plant & equipment must be installed & ready for use by the 30 ^th of June to advantage of these measures.

The downside to the TFE will come in the following years as the plant & equipment that have been fully claimed, when sold, will have no balancing charges or cannot be offset, resulting in 100% profit on sale, so planning for these events will be essential.

As of writing this piece, we are still unclear what precisely the Instant Asset Write-Off will look like post-30 ^th of June 2023; we will hopefully get a clear picture of the Federal Budget in early May. We at Green Taylor Partners will be eagerly awaiting these updates and our clients as soon as we have the details.

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Unclaimed Money

Wed, 01 Mar 2023 03:03:00 GMT

Unclaimed money is money that cannot be reunited with its rightful owner because, for example, the person has moved address, changed their name, or forgotten about it.

Unclaimed money can be any amount $20 and over, including:

Every year, millions of dollars end up in the Victorian Unclaimed Money Register waiting to be collected by its rightful owners.

Businesses, gaming venues, and betting agencies lodge these unclaimed amounts with the State Revenue Office.

The SRO do not hold all types of lost money, for example, superannuation and funds from bank accounts are dealt with by other agencies.

Find money belonging to you

You can search the register for any unclaimed money belonging to you. It is free to search and free to claim.

The register contains unclaimed money lodged since 1997.

Apply for your unclaimed money

If you believe you are the legal owner of unclaimed money listed in the register, complete an application form to prove the money belongs to you.

If you are claiming more than one amount of money on the register, you need only lodge one completed application form with a covering letter requesting all other funds in your name to be included.

The post Unclaimed Money appeared first on Green Taylor Partners .

ATO finalises revised fixed rate for work from home expenses

Wed, 22 Feb 2023 02:46:00 GMT

The Australian Taxation Office (ATO) has refreshed the way that taxpayers claim deductions for costs incurred when working from home.

Whilst these changes take effect from March 1 ^st 2023 they will be effective from July 1 ^st 2022.

Key changes between the previous and revised fixed rate are:

Revised fixed-rate method

The revised fixed-rate method apportions the following additional running expenses you incur on a fair and reasonable basis by using a fixed rate of 67c per hour for each hour you worked from home during the income year:

The rate per hour calculates the total of your deductible expenses for energy, internet, mobile and home phone, and stationery and computer consumables for the income year.

This means you cannot claim an additional separate deduction for any of these expenses.

“Australians will need to keep an ongoing diary for each day of the year they work from home from March onwards. A four-week diary representative of the year isn’t going to cut it. They also need to keep some records about their expenses incurred while working from home, such as copies of utility bills.

“Start keeping those diaries now.”

The post <strong><em>ATO finalises revised fixed rate for work from home expenses</em></strong> appeared first on Green Taylor Partners .

Carry Forward Unused Concessional Superannuation Contributions

Fri, 10 Feb 2023 00:00:00 GMT

I have written about this topic a few times now – mainly because it is still one of the most overlooked strategies to help manage your taxation and superannuation planning.

The 2019-20 financial year was the first year you were able to contribute “unused” concessional contributions from a prior year. This year, 2023, is the first year you can use up to 5 years of unused concessional contributions.

Revision – How does it work?

Any unused concessional contributions over a rolling five-year period are able to be contributed to superannuation and claimed as a tax deduction.

Concessional contributions include:

Eligibility Requirements – check your Total Super Balance (TSB) ***

To take advantage of these rules your Total Super Balance must be under $500,000 . This is the accumulated value of all superannuation accounts in your name as at the most recent 30 June.

If you wish to make a carry forward contribution in the 2022/23 financial year, your TSB will be measured as at 30 June 2022. *** It is critical you check your TSB prior to making a contribution under this measure. Your TSB is recorded with the ATO.

Example

Mrs Smith has sold a property which has generated a taxable capital gain of $75,000. She also has other taxable income of $95,000.

Mrs Smith has $410,000 in her super account on 30 June 2022. Including the 2023 year, her concessional contributions over the last 5 years will be:

Mrs Smith is eligible to make an extra tax-deductible contribution of up to $82,000 in the 2022/23 year.

Opportunities – who can benefit?

The original purpose of the legislation was to assist taxpayers with variable work patterns as a means to boost their retirement savings. This includes taxpayers who take leave without pay, work part time, or who have “lumpy” income patterns.

However, there are also opportunities in years where higher than normal taxable incomes are derived (due to unexpected seasonal income, large realised capital gains, etc) where unused concessional contributions can assist with not only minimising your tax burden, but also ensuring you are saving for your retirement.

Speak to your accountant today to determine how the carry forward concessional contribution system can make a difference to your situation.

The post Carry Forward Unused Concessional Superannuation Contributions appeared first on Green Taylor Partners .

Managing cashflow for young individuals

Wed, 01 Feb 2023 00:00:00 GMT

Managing savings & minimise spendings for young individuals .

As a young individual it can be difficult to manage and save money. There are countless expenses presented to individuals that when managed poorly – are not financially viable. However, there are ways to engage in these activities responsibly and minimise the damage to the bank account. It comes down to self-control, healthy habits, organisation and finding a sustainable balance.

Common examples can include:

For young individuals who want to save money fast, it is easy to fall into the trap of setting a goal to save excessively by living a very strict lifestyle, burn out – and give up. It’s also common for individuals to get comfortable with their savings and adopt the carefree attitude where they do not track any expenses or set goals. This is NOT economically viable. It is crucial to find a healthy and sustainable balance that allows individuals to enjoy events occasionally whilst still being able to save simultaneously.

Ways to minimise excessive spending.

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