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Legislation passed in late 2022 removes Fringe Benefits Tax (FBT) on eligible electric cars provided by employers to current employees for private use. Before we dive into the detail, ask yourself a few questions to see if the tax concessions on an electric vehicle might be right for you: Do you need or want a new car? With a cost of say $50,000 to $85,000 a tax benefit will rarely…  Read more

The ATO has recently released a draft tax guidance (PCG 2022/D4) for claiming tax deductions for working from home. You need to be aware of these changes so that you can keep the appropriate records to maximum your tax claims in your 2023 Tax Return. You need to implement improved record keeping starting immediately. Read on for details… WHAT ARE THE KEY CHANGES? From 1 July 2022, the ATO has…  Read more

As a client of an accounting firm, it’s important to remember that you are a vital part of the team working towards your financial success. Here are some tips on how to be a good client and get the most out of your relationship with your accountant: Communicate openly and honestly: It’s important to be upfront and honest about your financial situation and concerns. We are to help you, and…  Read more

The end of the year tends to be a bit chaotic for business owners, but it’s actually a good time to get some extra housekeeping done for your business. Read on for some tips to help you finish the year neatly and feel prepared to face the new year. Review your goals and KPIs A lot has likely happened for your business over the course of the previous 12 months.…  Read more

The deadline for setting up a director ID by 30th November has passed. The ATO is urging those who haven’t yet applied for their director identification number (Director ID) to do so now. ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if directors do not apply on time and penalties may apply. What is a director ID? The…  Read more

The good news is there were virtually no tax or superannuation changes that affect small or medium size business. This is very much welcomed. The bad news is with interest rates rising, high inflation and labour costs rising, businesses looking for assistance from the Government will be very disappointed by this interim Budget. Based on our analysis, the big winners appear to be: Families – Childcare subsidies extended, increased benefits…  Read more

There are a few different methods that employers use to pay their employees, and while they may have similarities, they each also have their own implications for your business and its employees. On top of that, there may be a blended model at play, in which you offer two types of compensation at once, such as a wage and bonuses. How you pay your employees will impact your finances and…  Read more

Payroll is time consuming and complicated. It can take away from the time, energy and passion you might otherwise invest in growing your business. So is it time to outsource your payroll? While there is a cost to consider when engaging a professional, if the time is right, it should pay for itself. When considering outsourcing your payroll talk to us to ensure your business is ready for the next…  Read more

There comes a time for every small business to raise their prices. We don’t always want to, for the sake of our customers, however in order to pay staff, overheads, and maintain and reasonable profit, raising your  prices for goods or services is essential. With inflation rising at a rapid rate, unemployment at an all time low and wages rising to meet demand, have you looked at your business figures…  Read more

Farm management deposits Tax planning is aimed at farmers saving tax while banking the benefits of a good year while creating a safety net for difficult years. Farm management deposits allow you to build wealth, save tax and get ahead. Farm management deposits (FMD’s) are a useful tax planning tool that can be used to delay tax liabilities in the year a deposit is made with income and tax recognised…  Read more

Superannuation If you want to make a tax deductible contribution before 30 June or pay super for your employees for a tax deduction in FY22 – Take Action NOW. Funds must be received in a fund bank account before 30 June. From 1 July there are two key changes: the contribution rate for employer super contributions will increase to 10.5%; the minimum $450/month threshold ($350 for hospitality) for employer contributions…  Read more

The introduction of Single Touch Payroll (STP) requires more effort than usual on year end payroll finalisation. Under STP employers must report pay, taxes and superannuation information directly to the ATO every payday through STP. Employers using STP will not give employees a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov. Employers have…  Read more

We regularly try to explain to clients the concept of a franked dividend – what are they, why do they matter, what does it mean for your tax and how can they work to your benefit. Some understand franking credits, some nod wisely but still feel confused, and some dream about doing something else, anything else apart from tax. We get that the concept is a challenge, so we’ll try…  Read more

Scrapping the $450 per month super guarantee threshold was a parting gift of the Liberal Party. From July 1, employers must make super guarantee payments for all employees regardless of an employee’s total monthly earnings. As announced in the 2021–22 federal Budget, the Australian Government the $450 per month threshold will be scrapped from July 1 to expand coverage of super guarantee to eligible employees regardless of their monthly pay. The…  Read more

As a parent, you may worry about how to ensure your child can receive a post-secondary education. Costs are constantly rising, and you may face high tuition fees as well as cost of living expenses if your child has to live away from home. Here are some steps you can take to save for your child’s education. Be clear about what you can and cannot afford to pay Being clear…  Read more

We spoke with bookkeeper and business owner Tash Black about her thoughts on running a small business. What made you want to be a business owner? It was something that I had always wanted to do, I wanted to be my own boss. I wanted the challenge of making something mine and experiencing the rewards of reaching my goals and being successful. What impact did owning your own business have…  Read more

Lodge your FBT to REDUCE ATO AUDIT PERIOD. Many small businesses manage their business to avoid fringe benefits tax using methods such as director contributions to ensure no tax is payable – this method is low cost and pragmatic however leaves an unlimited timeframe open for ATO. We recommend our clients to complete and lodge an FBT return, even if it is a nil result so as to draw a…  Read more

In April and May 2022, we assist clients with Tax Planning to provide specific actions to reduce your tax and manage your business and personal profits. REDUCING YOUR TAX and PLANNING FOR YOUR TAX PAYMENTS We have annual tax planning guides that will help you succeed: FY22 Tax planning tips and ideas for business FY22 Tax and wealth management tips and ideas for individuals When is a tax plan essential?…  Read more

Treasurer Josh Frydenberg has released the 2022 Federal Budget ahead of a Federal election in a few months. This article has a summary of the “Winners and Losers” of the Budget and we’ve compiled a recap of the key points below. Get in touch with us if you have any questions. The Budget read as a pre-election sugar hit. Some small changes like cuts to fuel excise may impact your…  Read more

On 23 February 2022 the ATO targeted the tax benefits of family trust distributions with a focus on distributions to the adult children of trust controllers. It’s one of the most significant developments for the taxation of trusts in over two decades. The ATO’s attack on the potential tax benefits of trusts is comprehensive: • Draft Taxation Ruling TR 2022/D1 Income tax: section 100A reimbursement agreements • Draft Practical Compliance…  Read more