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The Australian Taxation Office (ATO) has released the areas they will be focusing on to ensure that JobKeeper applications are correct. JobKeeper eligibility and payment conditions have now changed. The ATO is continuing to maintain the integrity of the JobKeeper scheme through their compliance activities. Areas that will be monitored include businesses that: did not meet the decline in turnover test do not meet the wage condition for their employees…  Read more

  The date by which an entity must first use or install ready for use an asset acquired by 31 December 2020 in order to claim the existing instant asset write off (IAWO) 3 has been extended by six months to 30 June 2021. This extension does not change the requirement that the asset must be acquired by 31 December 2020. A new measure allows businesses with an aggregated turnover…  Read more

  Now is the perfect time to evaluate your financial position and come up with innovative ways to add revenue streams and generate cash. Here are five ways you might consider to improve your cash inflow: 1. Evaluate your current company assets. Take a look at your assets, both fixed and human. Could you make slight pivots to create a new form of income? For instance, if you run a…  Read more

During an economic downturn when business is slow, a cashflow boost in the form of debt might be necessary to maintain the smooth running of your business. While there are plenty of lending options to consider including government-backed funding schemes, you shouldn’t borrow what you can’t pay back. So the question is: How much debt is too much? This timely Forbes article teaches how to calculate three important metrics that will…  Read more

SCAM ALERT The Australian Tax Office (ATO) is seeing a growing number of people making large payments for fake tax debts. Don’t get caught! These phone calls will tell you that you owe money and need to pay it straight away or you’ll be arrested. The scammer will try to keep you on the line until you pay, often by unusual methods such as bitcoin, pre-paid credit cards or gift…  Read more

The Australian Government has announced cuts to payments under the JobKeeper and JobSeeker schemes but has extended their life spans. JobKeeper 1.0 will remain till 27 September 2020 and thereafter, JobKeeper 2.0 will continue for a further six months till 28 March 2021. The temporary JobSeeker coronavirus supplement will be extended to 31 December 2020. The changes to JobKeeper are: There will be two rates of JobKeeper payments for eligible…  Read more

  Around 900,000 businesses are now on JobKeeper, covering 3.3 million employees. Once this stimulus is turned off at the end of September 2020, a business has to rely solely on its own turnover to meet expenses and provide profits for its owners. Temporary insolvency relief and the resumption of deferred loan repayments will also start to kick in then. Creditors will also seek to recover debts, some of which…  Read more

The ATO has advised it will continue to focus on rental deduction claims in tax time 2020. It doubled its in-depth audits last year after findings that nine out of 10 claims contained an error. The ATO has recognised that COVID-19, bushfires and floods have placed residential rental property owners in unforeseen circumstances, resulting in reduced rent, deferred payment plans and mortgage repayment deferrals. Rental income only needs to be…  Read more

  Last week, the ATO published a gazette notice informing that it would now acquire data from Services Australia, formerly the Department of Human Services, to verify individuals’ eligibility criteria for JobKeeper payments, temporary early access to superannuation and temporary cash-flow boost. Data for 3 million Australians are expected to be used for the data-matching program, running from 19 April to 24 September. The data that will be scrutinised include…  Read more

  Don’t be left up in the air by traditional IT solutions. Check out the top 9 advantages for small businesses switching to cloud computing. Cloud computing is fast becoming the norm because storing information and using software hosted on the Internet has many advantages. 1. Save money Traditionally, a small business spends money licensing software or buying packages to install or download onto individual computers. Cloud computing, on the…  Read more

  With the substantial increase in retail investors in the stock market due to Covid-19, it is important to keep in mind the tax implications of share market transactions and the requirement to disclose all gains or losses made. The Australian Taxation Office (ATO) is automatically updated with data on your share transactions so although  you may not remember your transactions, the Tax Office will know what shares you sold.…  Read more

  Managing cash flow is a vital part of running a successful business. Some business owners think managing cash flow simply means keeping track of how much money enters and leaves their business, but there’s actually more that goes into it. Cash flow forecasting, for example, is an incredibly valuable tool that helps you anticipate cash flow issues, plan for days when your cash flow is limited, and show the…  Read more

Many small business people wonder whether it’s better for them to buy or lease capital equipment for their businesses. Your options regarding leasing or buying depend upon the nature of your particular business, but there are nevertheless a few guidelines you can follow to help you decide what you should do.   If you have the money available, and the item is really necessary to your business, then it will…  Read more

Debt can be a crippling problem for small businesses wanting to grow or just break-even during difficult times. By reducing debt you’ll improve the value of your business, its financial situation, and its ability to continue operating into the future. Assess your debt situation Take a detailed look at all of your debts – both current and long term. Evaluate which ones are more urgent and which can be parked…  Read more

If you have any doubt that word of mouth referrals are important, consider these recent stats: According to Neilson, 92% of shoppers trust recommendations from friends and family more than traditional advertising 20% to 50% of consumer purchases are made because of a word of mouth recommendation 81% of buyers are influenced by their friends’ social media posts. So how can you encourage positive word of mouth for your small…  Read more

Small businesses can grow in boom times as well as periods of difficulty by working smarter and taking advantage of opportunities. Put these following effective tips into practice to help grow your business. 1. Utilise new technology Modern technology can save you time, improve productivity and reduce your operational costs. Make use of Facebook, Twitter, Google+ and other social media tools to market your business. Dropbox is a cloud-based service…  Read more

Reality hit us when our National Franchise client informed us they were shutting down their franchise network due to their sales falling by 90%. The lock-down provisions and social distancing requirements, meant it was not possible for them to continue trading. Their rental liability alone would put them out of business in 3 weeks. In one foul swoop, 40% of our fee income vanished overnight and then came the phone…  Read more

For those after the latest information as at 27th April 2020, on the Job Keeper Scheme, we provide a summary from our reference source CCH : The basic turnover test Employers will be eligible for the subsidy if their turnover for the period has fallen below the thresholds and they meet the other eligibility requirements set out further below. Business type/size Turnover reduction threshold ACNC registered charity* 15% For Profit:…  Read more

There are some things in life that go together well and others that definitely do not. Business and personal finances are in the category of items that should not be mixed. Although it may seem like a headache to keep them separate—who wants to manage all those bank accounts?—your life will be greatly simplified once you separate your personal and your business finances, especially your expenses. Paperwork and taxes will…  Read more

  Employees working from home As the situation around COVID-19 continues to develop, you may be working from home and incur expenses that you can claim at tax time. To claim a deduction for working from home, all of the following must apply: -You must have spent the money. -The expense must be directly related to earning your income. -You must have a record to prove it. This means you…  Read more