Firm News
Explaining The New Reporting Regime For The Sharing Economy
Posted on 12 February, 2024 by admin
The Sharing Economy Reporting Regime (SERR) represents a significant development in Australia’s tax landscape, requiring certain businesses operating in the sharing economy to report specific transactions to the Australian Taxation Office (ATO). Commencing from 1 July 2023 for selected industries and expanding further from 1 July 2024, SERR aims to enhance tax compliance, increase transparency, and gather valuable insights into sharing economy activities. Let’s dive into the key aspects of SERR and outline what small businesses need to know to ensure compliance. Scope and Purpose of SERR: SERR applies to transactions facilitated through Electronic Distribution Platforms (EDPs), encompassing activities such as ride-sourcing, short-term accommodation, and the hiring of assets or services. The regime aims to collect information on transactions connected with Australia to enhance tax integrity, identify non-compliant participants, and inform compliance strategies. What Is An Electronic Distribution Platform (EDPs) Under SERR, an EDP refers to a service that enables sellers to offer supplies to buyers through electronic communication channels. This encompasses various online platforms such as websites, internet portals, applications, and marketplaces. EDPs play a crucial role in facilitating transactions within the sharing economy and are central to the reporting requirements under SERR. Reporting Obligations for EDP Operators EDP […]
Crafting Your Own New Year’s Business Resolution In 2024
Posted on 5 February, 2024 by admin
With business operations underway, a new calendar year presents a perfect opportunity for entrepreneurs and business professionals to reflect on the past and set the stage for future success. Crafting a meaningful business resolution is not just about setting lofty goals; it’s about creating a plan that resonates with your unique aspirations and challenges. So, how can you develop a New Year business resolution that works for you? Reflect on the Past Year Before diving into the future, take a moment to reflect on the past year. Identify key achievements, challenges, and areas for improvement. Understanding your business’s current standing provides valuable insights for crafting a resolution that addresses specific needs. Define Clear Objectives A successful business resolution starts with clear objectives. Define what you want to achieve in the coming year, ensuring your goals are specific, measurable, achievable, relevant, and time-bound (SMART). Whether it’s increasing revenue, expanding your customer base, or streamlining internal processes, clarity is key. Align with Your Vision and Values Your business resolution should align seamlessly with your company’s vision and values. Consider how your goals contribute to the overall mission of your business. When your resolution reflects your core principles, it becomes a powerful driving […]
How The Small Business CGT Concessions Could Boost Your Super
Posted on 29 January, 2024 by admin
As a small business owner gearing up for retirement, selling your business can be a strategic move to give your nest egg that final boost. However, navigating the intricacies of selling a business requires careful consideration, especially when it comes to contributing the sale proceeds to your superannuation fund. Let’s explore these essential considerations and small business concessions that can significantly impact your retirement savings. Remember: always consult with a trusted and licensed adviser before acting. When selling a business or business asset, small business owners have the opportunity to contribute a substantial portion of the sale proceeds to their superannuation fund without breaching the super caps. To make this work effectively, it’s crucial to understand and leverage four small business concessions that can help minimize capital gains tax (CGT) implications. The 15-Year Exemption The 15-year exemption is the most valuable concession, allowing superannuation contributions beyond the usual caps (generally as a non-concessional contribution). However, the contribution must be made on or before the later of: the day you lodge your income tax return for the income year in which the relevant CGT event happened 30 days after you received capital proceeds. If you receive a 15-year exemption amount from […]
Understanding Non-Assessable Non-Exempt (NANE) Income Through Disaster Grants
Posted on 22 January, 2024 by admin
The recent spate of extreme weather events during the summer in various parts of Australia has presented unprecedented challenges for small businesses. As a result, the pressing concerns they face may not necessarily revolve around their tax obligations. However, amidst these trying times, business owners must be aware of the tax implications associated with the grants they may have received for support. This may include knowing whether their grants are deemed assessable or non-assessable income and the implications of either for their tax returns. Non-Assessable Or Assessable Income? In the wake of challenging times, many businesses have been fortunate enough to receive grants aimed at helping them navigate through financial difficulties. As businesses gear up to file their tax returns, a fundamental question arises – is the received grant considered assessable or non-assessable income? In general, grants are treated as assessable income, adding to the taxable revenue of the business. However, a subset of business support grants is formally declared as non-assessable, non-exempt (NANE) income. This distinction is crucial as it determines whether the grant needs to be included in the tax return or can be excluded under specific eligibility criteria. Understanding Non-Assessable Non-Exempt (NANE) Income Non-assessable non-exempt income refers […]
Chasing Up End Of Year Invoices
Posted on 18 December, 2023 by admin
As the calendar year draws to a close, businesses often find themselves in a familiar but often challenging position – chasing invoices. A healthy cash flow is the lifeblood of any business, providing the necessary resources for day-to-day operations, expansion, and resilience in the face of unforeseen challenges. Timely invoice collection at the end of the year is instrumental in maintaining this financial vitality. Let’s explore the nuances of businesses chasing invoices at the end of the year, shedding light on the strategies, challenges, and importance of maintaining a healthy cash flow during this crucial period. The Year-End Rush: Strategic Cash Flow Management: As businesses assess their financial health at the close of the year, effective cash flow management takes center stage. Chasing outstanding invoices becomes a strategic imperative, ensuring that the company enters the new year on solid financial footing. It allows businesses to meet their financial obligations, invest in growth opportunities, and navigate the uncertainties that lie ahead. Meeting Year-End Targets: Achieving year-end targets often hinges on the successful collection of outstanding payments. Businesses may have specific financial goals, such as meeting revenue targets, reducing outstanding debt, or improving overall liquidity. Chasing invoices in a timely manner is […]
Rightsizing Your Lifestyle: The Art of Property Downsizing
Posted on 11 December, 2023 by admin
As retirees embrace a new phase in their lives, the concept of property downsizing is gaining momentum as a strategic and rewarding financial move. Downsizing isn’t just about reducing square footage; it’s a lifestyle choice that can offer a range of benefits for those entering their golden years. The Changing Landscape of Retirement Living Many retirees find themselves sitting on a valuable asset—the family home. The Australian property market has witnessed significant growth over the years, and this presents a unique opportunity for retirees. Downsizing involves selling a larger property, often the family home, and purchasing a smaller, more manageable one. This shift not only streamlines day-to-day living but also releases equity tied up in the existing property. Financial Freedom and Flexibility One of the primary advantages of downsizing for retirees is the financial windfall it can generate. Selling a larger property in a desirable location can lead to a substantial cash injection. This liquidity can be used to fund retirement activities, travel plans, or simply serve as a safety net for unexpected expenses. Downsizing gives retirees the financial freedom to enjoy their retirement years without the burden of maintaining a larger property. Enhanced Lifestyle and Convenience Downsizing often means […]
Unlocking the Secrets of Deductions: A Holiday Home Owners’ Essential Checklist
Posted on 4 December, 2023 by admin
It’s essential for property owners to understand the intricacies of deductions associated with their cherished holiday retreats. However, as the holiday season approaches, they may find that their holiday retreats become a valuable source of income. To ensure you make the most of your potential deductions, it’s crucial to navigate the rules surrounding holiday home expenses and be aware of potential pitfalls. What Do You Need To Know? The primary rule is simple: you can only claim deductions for holiday home expenses if they are incurred with the aim of generating rental income. This means that any personal use of the property must be carefully considered to avoid discrepancies in deductions. One key consideration is whether the holiday home is used or reserved by you during peak periods when it could reasonably be rented out. Deductions should be adjusted accordingly during these periods to reflect the reduced potential for rental income. Likewise, if there are unreasonable conditions placed that hinder the likelihood of their property being rented, deductions should be reevaluated. This might include restrictive terms in advertising or setting rents significantly above market values. To help determine the validity of your claimed deductions, here are a few essential questions […]
Unlocking Business Value: Essential Steps to Determine Your Company’s Worth
Posted on 27 November, 2023 by admin
Determining the value of your business is a critical step when contemplating a sale. Unfortunately, a significant number of business owners are unaware of the monetary worth of their enterprises. The process of ascertaining the financial value of your business is not a straightforward formula but rather a nuanced assessment involving several key factors. Additionally, putting in extra effort to enhance your business’s perceived value can significantly impact the sale price, potentially putting more money in your pocket. In the pursuit of establishing an appropriate sale price for your business, it is imperative to consider various factors that collectively contribute to its overall value. Size Matters The size of your business is not solely determined by the number of employees on your payroll. It extends to encompass your client base and the reach of your products or services in the market. While larger businesses are often viewed as less risky due to perceived stability, smaller businesses possess unique attractiveness to potential buyers. The allure lies in a lower asking price, reduced commitment, and a perceived greater potential for growth. Growth Potential and Future Profitability A realistic evaluation of your business’s potential for growth is fundamental to determining both its current […]
5 Superannuation Misconceptions Australians Have…
Posted on 20 November, 2023 by admin
Superannuation, often called ‘super,’ is a vital part of Australia’s financial landscape. It’s a retirement savings system intended to provide financial security in your golden years. However, despite its widespread use and importance, there are several common misconceptions about superannuation that many Australians hold. Let’s shed light on some of these misconceptions and clarify how super works. Misconception 1: “I don’t need to worry about my super; the government will take care of me.” One of the most widespread myths is that the government will cover your retirement expenses entirely. While the Age Pension does provide financial support to eligible retirees, it’s typically not enough to maintain the lifestyle you desire in retirement. Relying solely on the Age Pension can lead to financial stress. Superannuation is designed to complement the Age Pension and ensure you have enough savings to enjoy a comfortable retirement. So, it’s essential to take an active role in managing your super and contributing to it regularly. Misconception 2: “I don’t need to think about super until I’m older.” Many Australians believe that super is something they can deal with when they’re closer to retirement age. However, this misconception can cost you dearly. The earlier you start […]
Claiming Motor Vehicle Expenses On Your Tax Return
Posted on 13 November, 2023 by admin
As a business owner, one of the perks is the ability to claim tax deductions for expenses related to motor vehicles used in your business operations. This includes cars and certain other vehicles that play a role in running your business smoothly. The good news is that claiming motor vehicle expenses can help reduce your tax liability. Let’s explore how you can maximise this opportunity, particularly if you’re a sole trader or part of a partnership. The Logbook Method: A Simple Way to Claim Tax Deductions Sole traders and those operating in partnerships can claim tax deductions for vehicles used in their businesses using the logbook method. It’s a relatively straightforward approach, but it does require diligent record-keeping of your vehicle-related expenses. The expenses you can claim when using your vehicle for business purposes typically include: Fuel and oil Repairs and servicing Interest on a motor vehicle loan Lease payments Insurance cover premiums Registration Depreciation (decline in value) Calculating Your Claim with the Logbook Method To make the most of the logbook method and ensure you’re accurately recording your expenses, consider enlisting the help of a registered tax agent. To work out the amount you can claim using this method, […]
