Benchmarking, Cash Flow Forecasting, Tax Minimisation Plans, Strategic Advice, Adams Triglone, Sydney, NSW, Australia

JobKeeper 2.0

Tue, 22 Sep 2020 23:00:00 GMT

JobKeeper from 28 September 2020

We have summarised the key details in this update please download here .

The first tranche of JobKeeper ends on 27 September 2020. Those needing further support will need to have their eligibility reassessed and prove an actual decline in turnover.

To receive JobKeeper from 28 September 2020, eligible employers need to assess their decline in turnover with reference to actual GST turnover for the September 2020 quarter (for JobKeeper payments between 28 September to 3 January 2021), and again for the December 2020 quarter (for payments between 4 January 2021 to 28 March 2021).

From 28 September 2020, the JobKeeper payment rate will reduce and split into a higher and lower rate based on the number of hours the employee worked in a specific 28 day period prior to 1 March 2020 or 1 July 2020.

To access JobKeeper payments from 28 September 2020, there are three questions that need to be assessed:

1. Is my business eligible?

2. Am I and/or my employees eligible? and

3. What JobKeeper rate applies?

Please contact our office if you would like assistance with this 02 8848 3000.

What to do when reopening your business

Sat, 20 Jun 2020 23:00:00 GMT

What to do when reopening your business

As many business owners look to life after COVID-19, an important question comes up: how do we plan to reopen our business? For most businesses, the easing of restrictions doesn't mean a return to business as usual.

There are rules and regulations in place about how companies can operate, including how many people can be on their premises at one time and how employees must be protected. Customers may not come back quickly and supply chains may still be disrupted.

Your main goal is to keep your business going after COVID-19, but reopening requires careful planning.

Here are some tips for restarting your business.

1. Examine your business model

Many small business owners have expertise that could go into consulting. If you own a restaurant, you could consult with new restaurant owners on setting their menu or hiring staff. You could also create passive income by writing eBooks or running courses related to your specialty.

2. Have a safety plan and procedures in place

3. Access funding and financial programs

Even with restrictions easing, customers may not be eager to return to your business, for a variety of reasons. Many people now have limited incomes and are concerned about safety measures. It could take a while for your income to balance out.

Local, regional and federal governments have programs available for small businesses. Additionally, financial institutions and local businesses that represent business interests may also have financial programs you can access to help you through the turmoil caused by COVID-19.

Final thoughts

What's next for you and your business? If you'd like to chat about future-proofing your business, please get in touch with us today on 02 8848 3000.

Instant asset write-off extended

Sat, 13 Jun 2020 23:00:00 GMT

Extension of the $150,000 threshold for the instant asset write-off rules

As announced earlier last week, the Government is planning to extend the $150,000 instant asset write-off threshold for a further 6 months until 31 December 2020. This means that the higher threshold can apply to assets that are first used or installed ready for use for a taxable purpose on or after 12 March 2020 and by 31 December 2020 (assuming all other basic conditions are satisfied).

The Bill also extends the temporary suspension of the 5 year lock-out rules that can apply when an SBE chooses not to use the simplified depreciation rules. The suspension of these rules will be extended to 30 June 2021.

Modifications will also be made to the rules for entities that have a substituted accounting period to improve access to the higher instant asset write-off thresholds. The way these rules are currently drafted has meant that entities with a year-end other than 30 June have not had the same level of access to the rules as entities using a standard 30 June year-end date.

HomeBuilder - What is it and how do you access it?

Sun, 07 Jun 2020 23:00:00 GMT

The HomeBuilder scheme targets the residential construction market by providing tax-free grants of $25,000 to eligible owner-occupiers, including first home buyers, to build a new home or substantially renovate their existing home.

The grants will be distributed by the revenue office of the State or Territory where you live or plan to live.

There are a few complexities to this grant that both home builders/renovators and the building industry need to be across before jumping in and signing a new contract on the expectation that the grant will apply.

Eligibility

Eligibility criteria apply to the individuals applying for the grant and the building project:

Individual eligibility

The HomeBuilder scheme is available to owner occupiers including first home buyers. It is not accessible to owner builders, developers or investors.

To be eligible you need to be:

And, you need to meet the income test. To be eligible, you cannot earn more than:

The building project eligibility

The building contract must be signed between 4 June 2020 and 31 December 2020. And, the construction or renovation must commence within three months of the contract date.

The grants are available if you build a new home or renovate a home to live in (your principal place of residence) where:

* house, apartment, house and land package, off-the-plan, etc.

** renovation works must be to improve the accessibility, safety and liveability of the dwelling. It cannot be for additions to the property (such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property)).

If you own or have purchased land but have not signed a contract to build your home, you may meet the eligibility criteria if you:

Integrity measures and pricing

Building contracts must be at arms-length, that is, the parties cannot be related or connected.

Renovations or building work must be undertaken by a registered or licenced building service 'contractor' (depending on the state or territory you live in) and named as a builder on the building licence or permit.

When it comes to price, the terms should be commercially reasonable, and the contract price should not be inflated compared to the fair market price. The rules enable the purchaser to request that the builder demonstrate that the contract price for the new build or substantial renovation is no more than a comparable product (measured by quality, location and size) as at 1 July 2019.

Interaction with first home owner grant schemes

The HomeBuilder grant does not exclude first home buyers from accessing other grants and concessions such as the First Home Owner Grant, stamp duty concessions, the First Home Loan Deposit Scheme, and First Home Super Saver Scheme.

Problem areas

As the building contract is entered into before the grant is approved, it will be important that the grant is not essential to finance the building project, just in case the grant is not approved.

In addition, as the builder needs to commence work within three months of the contract date, it will be important to ensure that the contract recognises the commencement dates.

Code of conduct for commercial tenancies

Sun, 10 May 2020 23:00:00 GMT

Code of conduct for commercial tenancies

The Prime Minster has announced that the states and territories will legislate a mandatory code of conduct for commercial tenancies – see National Cabinet Mandatory Code of Conduct .

The code applies where:

The code brings together a set of good-faith leasing principles. Landlords must not terminate the lease or draw on a tenant's security and tenants must honour the lease.

Landlords will be required to reduce rent proportionate to the trading reduction in the tenant's business, through a combination of waivers of rent and deferrals of rent over the "pandemic period." Waivers of rent must account for at least 50% of the reduction in the rental provided to the tenant during that period and deferrals must be covered over the balance of the lease term and in no less period than 24 months.

The arrangements are overseen through a binding mediation process at state and territory level.

Residential landlords and tenants

Most states and territories have introduced rules to ensure that tenants facing COVID related financial distress are not evicted for rental arrears.

Rent remains due, however landlords are encouraged to negotiate either a rent reduction to some degree or waiver where possible – for example, the landlord has a mortgage and has received a freeze on mortgage payments.

Most state and territory governments have free mediation services in place to manage disputes.

New South Wales

The NSW Government is introducing an interim 60-day stop on landlords seeking to evict tenants due to rental arrears as a result of COVID-19, together with longer six month restrictions on rental arrears evictions for those financially disadvantaged by COVID-19.

A household is COVID-19 impacted if:

· One or more rent-paying members of a household have lost employment or income (or had a reduction in employment or income) due to COVID-19 business closures or stand-downs, or

· One or more rent-paying members of a household have had to stop working or reduce work hours due to illness with COVID-19 or due to COVID-19 carer responsibilities for household or family members, and

· The above factors result in a household income (inclusive of any government assistance) that is reduced by 25% or more.

Notice periods for certain other lease termination reasons will be extended to 90 days.

All other tenants not impacted by COVID 19 are expected to honour their existing tenancy agreements.

See Six month moratorium on residential tenancy evictions during COVID-19.

ATO releases JobKeeper alternative test

Sun, 26 Apr 2020 23:00:00 GMT

ATO releases JobKeeper alternative test

The alternative tests will only kick in if an entity cannot satisfy the basic decline in turnover test.

These include where an entity commenced business after the relevant comparison period in 2019 or the business did not exist in the relevant comparison period and as a result there was no relevant comparison period in 2019.

It will also cover a circumstance where an entity acquired or disposed of part of their business after the relevant comparison period in 2019, and where an entity has restructured part or all of their business after the relevant comparison period in 2019.

Entities who had an increase in turnover by 50 per cent or more in the 12 months immediately before the applicable turnover test period, or 25 per cent or more in the six months immediately before the applicable turnover test period, or 12.5 per cent or more in the three months immediately before the applicable turnover test period, will also be covered.

The alternative test will also cover entities affected by a drought or other natural disaster in the relevant comparison period in 2019, and entities who have an irregular turnover that is not cyclical, such as what can occur in the building and construction sector.

A sole trader or a small partnership where the sole trader or one of the partners did not work for all or part of the relevant comparison period because they were sick, injured or on leave during the relevant comparison period, and those circumstances affects the turnover of the sole trader or partnership, will also be covered.

Each of the seven circumstances has its own alternative test that is detailed in the legislative instrument.

Update from Accountants Daily

Automatic ATO lodgement and payment deferrals

Wed, 22 Apr 2020 23:00:00 GMT

Automatic ATO lodgement and payment deferrals

The Tax Office will now apply automatic lodgement and payment deferrals for company 2018–19 income tax returns to a new due date of 5 June 2020.

Further, SMSF 2018 – 19 annual returns will now be due on 30 June 2020.

2019 – 20 fringe benefits tax (FBT) annual returns have also been automatically deferred to 25 June 2020.

2018 – 19 income tax returns for individuals, partnerships and trusts can be lodged by the 5 June concessional due date, provided clients pay any liability by this date.

The ATO Increases the Instant Asset Write-off

Tue, 14 Apr 2020 23:00:00 GMT

What is an Instant Asset Write-off?

The instant asset write-off allows small to medium-sized businesses to claim immediate deductions for plant and equipment asset purchases (both new and second-hand). Equipment includes vehicles, tools, machinery and office equipment. The asset must be installed and/or used in the income year you're claiming for.

How much can I write-off?

Originally the maximum threshold was $30,000 but now this has been increased to $150,000 for businesses with aggregated annual turnover between $50m-$500m. The write-off threshold is dependent on your annual turnover. This applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe.

The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets.

Eligibility to use instant asset write-off depends on:

From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.

Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.

Find more information and apply here: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/

6 months moratorium on residential tenancy evictions

Sun, 12 Apr 2020 23:00:00 GMT

Six-month moratorium on residential tenancy evictions The NSW Government is introducing measures to help landlords and tenants work together. The support package includes a six-month moratorium on landlords making applications for evictions due to rental arrears: for tenants who are financially disadvantaged by COVID-19, and where landlords and tenants try to negotiate rental reductions in good-faith and it would not be fair and reasonable in the circumstances to terminate the tenancy. As well the moratorium on applications for forced evictions due to rental arrears, the package will also immediately: put a 60 day stop on new termination notices and termination applications to the NSW Civil and Administrative Tribunal where these are for terminations due to rental arrears as result of a household being unable to pay their rent due to the COVID-19 emergency extend notice periods for certain other lease termination reasons to 90 days. The support package is available to tenants who can prove they have been impacted by COVID-19. The tenant is considered to be impacted by COVID-19 when one or more rent-paying members of the household: have lost their employment, income or work hours due to COVID-19 business closures or stand-downs, or have had to stop working or substantially reduce work hours due to illness with COVID-19 or to care for a household or family member with COVID-19, and this resulted in a reduction in the weekly household income (including government assistance) of at least 25%. https://preview.nsw.gov.au/covid-19/financial-support

SME Commerical leasing principles during COVID-19

Sat, 11 Apr 2020 23:00:00 GMT

National Cabinet Mandatory Code of Conduct

SME Commercial leasing principles during COVID-19

The National Cabinet has agreed that states and territories will implement a mandatory code of conduct for commercial tenancies. More information here

Claiming tax deductions for working from home due to Coronavirus is being made easier

Mon, 06 Apr 2020 23:00:00 GMT

Working from home because of Coronavirus? You're now eligible for a new 80 cents per hour tax shortcut

The Australian Taxation Office (ATO) is introducing a new method which will allow people to claim 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses.

The change will apply from March 1 to June 30, after which the ATO will review the arrangement for the next financial year as the COVID-19 situation progresses.

"If you choose to use this shortcut method, all you need to do is keep a record of the hours you worked from home as evidence of your claim," Assistant Commissioner Karen Foat said.

"We needed something to help people through this time to make it easier to work out how much they can claim.

"We think the 80 cents per hour method is much simpler for people. It's quite generous and we envisage a lot of people will want to use that rate."

Multiple people living in the same house will be able to claim the new rate.

"This recognises that many taxpayers are working from home for the first time and makes claiming a deduction much easier," Ms Foat added.

The new arrangement does not prohibit people from making a working-from-home claim under existing arrangements, where you calculate all or part of your running expenses.

"Claims for working-from-home expenses prior to March 1, 2020 cannot be calculated using the shortcut method and must use the pre-existing working from home approach and requirements," Ms Foat said.

If the Federal Government announces a prolonged lockdown extending into the next financial year the ATO is likely to extend the new claiming method.

"We can't predict the future ... but if people are still being encouraged to work at home by the Government then we would extend it into the new financial year," Ms Foat confirmed.

https://www.abc.net.au

JobKeeper Payment - FAQs

Sun, 05 Apr 2020 23:00:00 GMT

JobKeeper - Frequently Asked Questions

WHAT IS THE JOBKEEPER PAYMENT?

The JobKeeper Payment is a payment made to eligible businesses and not-for-profits affected by the Coronavirus to support them in retaining employees.

Eligible businesses that elect to participate will receive a payment of $1,500 per fortnight per eligible employee to support the people they employed as at 1 March 2020 who are retained in employment.

Businesses must have paid their employees before they are entitled to receive the JobKeeper payment. Where an employee's total remuneration is less than $1,500 per fortnight (before tax), or has been stood down, the employer must provide the employee at least $1,500 per fortnight (before tax). Where an employee earns more than $1,500 per fortnight, employers can use the payment to subsidise the employee's wages.

Self-employed individuals will also be eligible to receive the JobKeeper payment.

WHEN WILL THE JOBKEEPER PAYMENT COMMENCE?

The JobKeeper Payment will be available from 30 March 2020.

HOW LONG WILL THE JOBKEEPER PAYMENT LAST FOR?

The JobKeeper Payment will be available for the period until 27 September 2020.

Employers

IS MY BUSINESS ELIGIBLE?

Employers (including not-for-profits) will be eligible for the subsidy if:

• their business has a turnover of less than $1 billion (and if part of a group for income tax purposes, the group has a combined turnover of less than $1 billion) and estimate their turnover has fallen or will likely fall by 30 per cent or more; or

• their business has a turnover of $1 billion or more (or if part of a group for income tax purposes, the group has a combined turnover of $1 billion or more) and estimate their turnover has fallen or will likely fall by 50 per cent or more; or

• their business is not subject to the Major Bank Levy.

For charities registered with the Australian Charities and Not-for-profits Commission (ACNC), they will be eligible for the subsidy if they estimate their turnover has fallen or will likely fall by 15 per cent or more relative to a comparable period.

JobKeeper Payments are paid in respect of each eligible employee who was employed at 1 March 2020 and is currently employed by the business (including those who are stood down or re-hired).

WHAT TYPE OF ENTITIES ARE ELIGIBLE?

All business types, including not-for-profits, will be eligible with the exception of those listed below. The following entities will not be eligible:

• Australian Government and its agencies,

• State and Territory governments and their agencies, • Foreign governments and their agencies;

• Local council governments;

• Wholly-owned corporations of any of the above; and

• A business subject to the Major Bank Levy. Additionally, a company that is in liquidation, or a partnership, trust or sole trader in bankruptcy, will not be eligible.

Some sectors may not be eligible if they are separately provided with support from the Government that explicitly requires them to forgo access to the JobKeeper Payment.

WHAT DO I NEED TO DO IF I WANT TO PARTICIPATE?

Eligible employers need to determine if they want to participate in this program by electing into it. More details will be provided about how to do that. The JobKeeper Payment will be administered by the ATO. If you want to participate, you can register your interest on the ATO website to keep updated on information about the JobKeeper payment. If you register you will receive updates and information from the ATO about how and when to claim the JobKeeper payment. If you are a BAS or Tax agent you do not need to register each client separately, unless you are registering each client to receive the information directly.

HOW DO I WORK OUT WHICH OF MY EMPLOYEES ARE ELIGIBLE EMPLOYEES?

You will only be able to claim the JobKeeper payment for eligible employees that were in your employment on 1 March 2020, and continue to be employed while you are claiming the JobKeeper payment.

An eligible employee is an employee who:

• is currently employed by the eligible employer (including those stood down or re-hired);

• is a full-time or part-time employee, or a casual employed on a regular and systematic basis for longer than 12 months as at 1 March 2020;

• was aged 16 years or older at 1 March 2020;

• was an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;

• was a resident for Australian tax purposes on 1 March 2020; and

• is not in receipt of a JobKeeper Payment from another employer.

You can only claim JobKeeper payment for eligible employees if you pay the $1,500 per fortnight (before tax) to each eligible employee.

These payments should be made using your payroll system and reported to the ATO via Single Touch Payroll. This will support the online claim process when it is available.

If you do not report through Single Touch Payroll, you can still claim the JobKeeper payment; however there will be a manual claim process.

You will be required to advise your employees whether you have nominated them as an eligible employee for the purposes of the payment.

WHEN WILL I RECEIVE THE FIRST PAYMENT?

The first payments by the ATO will be received by employers in the first week of May.

HOW OFTEN WILL THESE PAYMENTS BE MADE?

The payments will be made by the ATO monthly in arrears.

WHAT ARE THE ELIGIBLE PAYMENT PERIODS FOR REIMBURSEMENT FOR A JOBKEEPER SUBSIDY?

Employers will need to satisfy payment requirements for their eligible employees in respect of each 14 day period covered by the scheme. The first period starts on Monday 30 March 2020 and ends on Sunday 12 April 2020.

The payment requirement is that they pay their eligible employees a minimum of $1,500 per fortnight in the scheme payment periods. Where an employer pays their staff monthly, the ATO will be able to reallocate payments between periods. However, overall an employee must have received the equivalent of $1,500 per fortnight.

The final period will start on Monday 14 September 2020 and end on Sunday 27 September 2020.

IF I HAVE STOOD DOWN MY EMPLOYEES AFTER 1 MARCH 2020, AND ARE NO LONGER PAYING THEM, DO I NEED TO PAY THEM, FOR WHAT PERIOD AND BY WHEN?

Yes. You can claim JobKeeper for employees that were stood down after 1 March 2020. To be eligible in relation to these employees, you will need to pay them a minimum of $1,500 per fortnight (before tax) for the payment periods of the JobKeeper Scheme.

The first payment period under the scheme is from 30 March 2020 to 12 April 2020. Where an employer pays their staff monthly the monthly payment must be equivalent to the required fortnightly payment.

For all following payment periods you will need to continue to pay your employees a minimum of $1,500 per fortnight (before tax), before the end of the payment period.

WHAT IS THE DEFINITION OF TURNOVER?

Turnover will be defined according to the current calculation for GST purposes and is reported on Business Activity Statements. It includes all taxable supplies and all GST free supplies but not input taxed supplies. There are some modifications for businesses that are part of a GST group. Further information on GST turnover, and how to calculate it, is available at ato.gov.au.

IS THIS TURNOVER TEST RELATED TO ONLY TURNOVER IN AUSTRALIA, OR DOES IT INCLUDE OVERSEAS OPERATIONS AS WELL?

Under the GST law, only Australian based sales are included and therefore, only Australian based turnover is relevant. A decline in overseas operations will not be counted in the turnover test.

MY BUSINESS HAS ONLY JUST STARTED OR MY BUSINESS HAS "LUMPY" INCOME. HOW CAN I SELF-ASSESS THAT MY TURNOVER HAS FALLEN 30 PER CENT?

To establish that a business has faced or is likely to face a 30 per cent or more or 50 per cent or more fall in turnover, most businesses would be expected to establish that their turnover has fallen in the relevant month or quarter (depending on the Business Activity Statement reporting period of that business) relative to their turnover in a corresponding period a year earlier.

Where a business was not in operation a year earlier, or where their turnover a year earlier was not representative of their usual or average turnover, (e.g. because there was a large interim acquisition, they were newly established, were scaling up, or their turnover is typically highly variable), the Tax Commissioner will have discretion to consider additional information that the business can provide to establish that they have been adversely affected by the impacts of the Coronavirus.

The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in specific circumstances (e.g. eligibility may be established as soon as a business ceases or significantly curtails its operations). There will be some tolerance where employers, in good faith, estimate a 30 per cent or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall.

MY TURNOVER HAS NOT DECREASED BY 30 PER CENT THIS MONTH, BUT I BELIEVE IT WILL IN THE COMING MONTH. AM I ELIGIBLE?

You can apply for the payment if you reasonably expect that your turnover will fall by 30 per cent or more (or 50 per cent or more for businesses with a turnover of $1 billion or more) relative to your turnover in a corresponding period a year earlier. The ATO will provide guidance about self-assessment of actual and anticipated falls in turnover.

IT IS UNLIKELY THAT MY TURNOVER WILL DECREASE BY 30 PER CENT IN THE COMING MONTH, BUT CAN I APPLY LATER IF MY TURNOVER DECREASES IN ONE OF THE SUBSEQUENT MONTHS?

If a business does not meet the turnover test at the start of the JobKeeper scheme on 30 March 2020, the business can start receiving the JobKeeper Payment at a later time once the turnover test has been met. In this case, the JobKeeper Payment is not backdated to the commencement of the scheme. Businesses can receive JobKeeper Payments up to 27 September 2020.

MY BUSINESS IS STILL OPERATING AND MY EMPLOYEES ARE STILL WORKING. HOW WILL MY PAYMENTS TO THEM BE AFFECTED?

In many cases, your payments and obligations to eligible employees will not change. Your business, if eligible, will receive a $1,500 per fortnight subsidy to support their continued employment. However, if any eligible employee currently earns less than $1,500 before tax per fortnight, you will need to pay them $1,500 per fortnight before tax to receive the JobKeeper payment.

WHAT IF I PAY MY EMPLOYEES LESS THAN $1,500 PER FORTNIGHT BEFORE TAX?

To be able to claim the JobKeeper payment for an eligible employee, that employee must be paid a minimum of $1,500 income per fortnight, before tax is withheld. If you want to claim the subsidy for an eligible employee and they have not been paid $1,500 per fortnight since 30 March 2020, employers must pay a 'top-up' payment to employees so that they are eligible. The ATO will provide further guidance on how this will work. The employer will be reimbursed $1,500 per fortnight for each eligible employee. Employers cannot pay their employees less than $1,500 per fortnight and be entitled to a payment for that employee.

WHAT IF I PAY MY EMPLOYEES MORE THAN $1,500 PER FORTNIGHT BEFORE TAX?

If the eligible employee is paid more than $1,500 a fortnight before tax, the employer will only be reimbursed $1,500 per fortnight.

IF I HAVE STOOD DOWN MY EMPLOYEES WITHOUT PAY AFTER 1 MARCH 2020 CAN I 'BACK PAY' THEM TO 30 MARCH 2020?

Yes. If you want to claim the JobKeeper Payment for your employees you will need to confirm your eligible employees want to be part of the scheme and arrange for them to be paid a minimum of $1,500 per fortnight before tax from 30 March 2020.

I LET MY EMPLOYEES GO AFTER 1 MARCH 2020. IF I RE-HIRE THEM, AM I ELIGIBLE TO RECEIVE THE PAYMENT?

Yes. You can receive the payment if you re-hire any eligible employees you had at 1 March 2020. You can receive the payment even if you then need to immediately stand them down, so long as they remain employed.

WHAT HAPPENS IF I DON'T HAVE THE MONEY TO CONTINUE PAYING MY ELIGIBLE EMPLOYEES UNTIL THE PAYMENTS ARE MADE?

The JobKeeper Payment is a reimbursement scheme that will be paid by the ATO monthly in arrears. In cases where this may present cash flow difficulties, those businesses may want to speak to their bank to discuss their options. The banks have said businesses may be able to use the upcoming JobKeeper payment as a basis to seek credit in order to pay their employees until the scheme is making its first payments.

AM I REQUIRED TO PAY PAYGW AND SUPERANNUATION ON THE JOBKEEPER PAYMENT?

You must pay a minimum of $1,500 per fortnight to your eligible employees, withholding income tax as appropriate. The $1,500 per fortnight per employee is a before tax amount. Where an employee is paid more than $1,500 per fortnight, the employer's superannuation obligations will not change.

Where an employee is having their wages topped up to $1,500 per fortnight by the JobKeeper Payment, it will be up to the employer if they want to pay superannuation on any additional wages paid by the JobKeeper Payment.

WHAT HAPPENS IF MY EMPLOYEE RESIGNS?

If an employee for whom you are receiving the JobKeeper Payment resigns, you must notify the ATO. You may need to refund some money to the ATO.

I HIRED AN EMPLOYEE AFTER 1 MARCH 2020. CAN I RECEIVE THE JOBKEEPER PAYMENT FOR THEM?

No. The employee must have been engaged as of 1 March 2020.

I PURCHASED A BUSINESS IN THE LAST 12 MONTHS AND RETAINED SOME CASUAL EMPLOYEES WHO WORKED FOR THE PREVIOUS BUSINESS OWNER. ARE THE CASUAL EMPLOYEES ELIGIBLE?

Employers must assess whether their casual employees satisfy the test of working for 12 months on a regular and systemic basis. A casual may still meet this condition even if the entity operating the business has changed recently.

I ACCEPTED SOME CASUAL EMPLOYEES FROM ANOTHER MEMBER OF MY CORPORATE GROUP. ARE THE CASUAL EMPLOYEES ELIGIBLE?

Employers must assess whether their employees satisfy the test of working for 12 months on a regular and systematic basis. A casual may still meet this condition even if they were they were transferred from another member of a corporate group within the last 12 months.

WHAT SHOULD I DO IF I WANT TO RE-HIRE AN ELIGIBLE EMPLOYEE WHO RECEIVED A REDUNDANCY PACKAGE?

If an eligible employee has received a redundancy package and you wish to re-hire them, you will need to consult with the employee and consider prevailing workplace arrangements to settle redundancy terms.

WILL THE ATO USE THE JOBKEEPER PAYMENTS TO OFFSET A BAS DEBT?

The payment will generally be paid directly to the employer and not used to offset tax liabilities, as the intent is that it is a payment that facilitates employers to pay their employees.

I RUN A LABOUR HIRE COMPANY. WILL EMPLOYEES BE ELIGIBLE IF THEIR 'HOST EMPLOYER' CLAIMS THE JOBKEEPER PAYMENT?

Employees are only eligible in respect of their direct employer.

CAN I RECEIVE THE JOBKEEPER PAYMENT FOR EMPLOYEES IN RECEIPT OF WORKCOVER?

Employees will not be eligible for the JobKeeper scheme if they are fully incapacitated, unable to work and being supported by a workers compensation scheme. In other cases, employees would be eligible as they are in an employment relationship with their employer, provided their employer has an obligation to pay some component of their salary or wages. If your employee is fully compensated under your workcover insurance, they will be ineligible for the JobKeeper scheme.

SOME OF MY EMPLOYEES ARE NOT ELIGIBLE EMPLOYEES FOR THE JOBKEEPER SCHEME. WHAT SUPPORT IS AVAILABLE FOR MY BUSINESS SO I CAN TRY AND RETAIN ALL OF MY EMPLOYEES?

The Government is providing a range of support to businesses to address the significant economic consequences of the Coronavirus. The Government is boosting cash flow for employers by providing up to $100,000 to eligible small and medium-sized businesses, and not-for-profits, that employ people, with a minimum payment of $20,000. These payments will help businesses with their cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.

Other measures to support businesses include temporary relief for financially distressed businesses, increasing the instant asset write-off and backing business investment.

Further information on the economic response to the Coronavirus is available on the Treasury website at treasury.gov.au/coronavirus.

Employees

HOW DO I KNOW IF I AM AN ELIGIBLE EMPLOYEE FOR THE JOBKEEPER PAYMENT?

Eligible employees are employees who:

• are currently employed by the eligible employer (including those stood down or re-hired);

• are a full-time or part-time employee, or a casual employed on a regular and systematic basis for longer than 12 months as at 1 March 2020;

• were aged 16 years or older at 1 March 2020;

• were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;

• were a resident for Australian tax purposes on 1 March 2020; and • are not in receipt of a JobKeeper Payment from another employer.

I AM AN ELIGIBLE EMPLOYEE IN AN ELIGIBLE BUSINESS. HOW MUCH WILL I RECEIVE?

Eligible employees will receive, at a minimum, $1,500 per fortnight before tax. You will receive a payment from your employer.

I AM STILL WORKING OR ON PAID LEAVE AND EARN MORE THAN $1,500 PER FORTNIGHT BEFORE TAX. WILL MY PAY CHANGE?

No. If you receive $1,500 or more in income per fortnight before tax, you will continue to receive your regular income according to your prevailing workplace arrangements. The JobKeeper Payment will assist your employer to continue operating by subsidising part of your income.

I AM STILL WORKING OR ON PAID LEAVE AND I EARN LESS THAN $1,500 PER FORTNIGHT BEFORE TAX. HOW MUCH WILL I RECEIVE?

For eligible employees, if you receive less than $1,500 in income per fortnight before tax, your employer must pay you, at a minimum, $1,500 per fortnight, before tax. Your employer will continue to pay you your ordinary income according to your prevailing workplace arrangements and provide a 'top-up' so you receive $1,500 per fortnight, before tax.

I HAVE BEEN STOOD DOWN. HOW MUCH WILL I RECEIVE?

If your employer is eligible for the JobKeeper Payment, and they elect to participate, your employer will receive $1,500 per fortnight for each eligible employee. They will be required to pay you $1,500 (before tax) per fortnight. The payment will be treated as income, and so will have tax withheld by your employer on your behalf.

I HAVE TAKEN UP OTHER WORK AFTER BEING STOOD DOWN. WILL I STILL RECEIVE A PAYMENT?

Yes. The JobKeeper Payment is not income-tested, so you may earn additional income without your payment being affected as long as you are eligible and maintain your employment (including being stood down) with your JobKeeper-eligible employer. However, you can only receive the JobKeeper payment from one employer, your primary employer.

I WAS EMPLOYED ON 1 MARCH 2020, BUT I WAS STOOD DOWN OR LET GO AND I HAVE APPLIED FOR OR AM CURRENTLY RECEIVING INCOME SUPPORT (SUCH AS THE JOBSEEKER PAYMENT) FROM SERVICES AUSTRALIA. WILL I RECEIVE THE JOBKEEPER PAYMENT?

You will be eligible for the JobKeeper Payment if you have been stood down from work, or if your former employer re-hires you. However, the JobKeeper Payment is treated as ordinary income for the purposes of social security payments. You must therefore report your change in circumstances to Services Australia if you are receiving income support, and this is likely to make you ineligible for the JobSeeker Payment or other income support payments or eligible at a reduced rate.

WILL MY EMPLOYER PAY SUPERANNUATION ON THE JOBKEEPER PAYMENT?

No superannuation guarantee payments are required to be paid on any additional payment made because of the JobKeeper Payment.

I STARTED WORK WITH MY CURRENT EMPLOYER AFTER 1 MARCH 2020. WILL I RECEIVE THIS PAYMENT FROM THAT EMPLOYER?

No. The JobKeeper Payment supports businesses to maintain eligible employees who were in their employ on 1 March 2020. You may be eligible for the JobKeeper Payment if you are currently stood down by your 1 March 2020 employer or if you are re-hired by that employer.

I AM A CASUAL WORKER. AM I ELIGIBLE TO RECEIVE THE PAYMENT?

You are eligible for the payment if you have been with your employer for 12 months at 1 March 2020 on a regular and systematic basis. Apart from this, casual employees are not eligible for the JobKeeper Payment. If you are ineligible for the JobKeeper Payment, you may be able to apply for support through Services Australia depending on your personal circumstances.

I AM ON A FIXED TERM CONTRACT WITH MY EMPLOYER. AM I ELIGIBLE TO RECEIVE THE PAYMENT?

Fixed term contractors are eligible for the payment if you were employed at 1 March 2020 and meet the other eligibility criteria for the JobKeeper Payment.

I HAVE MULTIPLE EMPLOYERS. WILL I RECEIVE MULTIPLE PAYMENTS?

No. Every employee is only able to receive one payment from one employer, their primary employer. Your employers who have elected to participate in the JobKeeper Payment scheme may ask you to indicate whether they are your primary employer. If you are employed by more than one employer, you should contact your employers and indicate to them which is your primary employer. The ATO will provide guidance on how to determine your primary employer. You can continue to receive non-JobKeeper supported income from your non-primary employer.

I AM A CASUAL EMPLOYEE AND THE BUSINESS OWNER CHANGED WITHIN THE LAST 12 MONTHS. AM I ELIGIBLE?

You may still be eligible if you have been working for the business for at least 12 months as at 1 March 2020 on a regular and system basis, even if the entity operating the business has changed recently. Your current employer will need to assess whether you meet this test.

I AM WORKING IN AUSTRALIA ON A TEMPORARY VISA. AM I ELIGIBLE?

To be eligible for the JobKeeper Payment, an employee must be an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020.

I WAS WORKING IN AUSTRALIA ON 1 MARCH. I HAVE BEEN STOOD DOWN, AND RETURNED TO MY HOME COUNTRY. AM I ELIGIBLE?

You may be eligible to receive the payment if you are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder who has temporarily left the country. You will be eligible for the payment if you are a resident of Australia for tax purposes and if you have been stood down from work, or if your former employer re-employs you. If you have ceased employment, and are not rehired, you will not be eligible for the payment.

I AM 15 YEARS OLD AND, APART FROM AGE, I MEET THE ELIGIBILITY CRITERIA. AM I ELIGIBLE FOR THE JOBKEEPER PAYMENT WHEN I TURN 16 LATER IN THE YEAR?

No. Employees must be at least 16 years of age on 1 March 2020 to be eligible.

I AM ON UNPAID OR PAID LEAVE. WILL I RECEIVE THE PAYMENT?

Yes, unless you are in receipt of Government Paid Parental Leave or Dad and Partner Pay. If you are an eligible employee and your employer is an eligible employer, they will receive the payment whether you are working, on leave, or have been stood down.

I AM NOT ELIGIBLE FOR THE JOBKEEPER PAYMENT. WHAT SUPPORT CAN I GET FROM THE GOVERNMENT?

If you are not an eligible employee, you may be able to access income support through Services Australia. More information is available on the Services Australia website at servicesaustralia.gov.au/individuals.

I AM RECEIVING WORKERS COMPENSATION. AM I ELIGIBLE?

If you are still working - such as reduced hours - then you will be eligible to receive the JobKeeper Payment. However, if you are not currently working due to incapacity and you are being supported through workers' compensation arrangements then you will not be eligible for the JobKeeper Payment.

I AM RECEIVING PARENTAL LEAVE PAY OR DAD AND PARTNER PAY THROUGH SERVICES AUSTRALIA. AM I ELIGIBLE?

For the period that you are receiving Parental Leave Pay or Dad and Partner Pay then you will not be eligible for the JobKeeper Payment.

I CURRENTLY HAVE A SALARY SACRIFICE ARRANGEMENT WITH MY EMPLOYER. CAN IT CONTINUE?

Yes. The JobKeeper payment may be paid to an employee in cash or as a fringe benefit or extra superannuation contribution where the employee and employer agree.

Self-employed and other eligible businesses

I AM SELF-EMPLOYED. AM I ELIGIBLE FOR THE PAYMENT?

Yes. People who are self-employed will be eligible for the payment provided, at the time of applying, they:

• estimate their turnover has or will fall by 30 per cent or more;

• had an ABN on or before 12 March 2020, and – either had an amount included in its assessable income for the 2018-19 year and it was included in their income tax return lodged on or before 12 March 2020 (or such later time as allowed by the Commissioner), or – made a supply during the period 1 July 2018 to 12 March 2020 and provided this information to the Commissioner on or before 12 March 2020 (or such later time as allowed by the Commissioner);

• were actively engaged in the business;

• are not entitled to another JobKeeper Payment (either a nominated business participant of another business or as an eligible employee);

• were aged at least 16 years of age as at 1 March 2020; and

• were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020.

MY BUSINESS IS A PARTNERSHIP. CAN EACH PARTNER RECEIVE A JOBKEEPER PAYMENT?

No. Only one partner can be nominated to receive a JobKeeper Payment along with any eligible employees, noting a partner cannot be an employee.

CAN TRUSTS RECEIVE THE JOBKEEPER PAYMENT?

Trusts can receive JobKeeper payments for any eligible employees. Where beneficiaries of a trust only receive distributions, rather than being paid salary and wages for work done, one individual beneficiary (that is, not a corporate beneficiary) can be nominated to receive the JobKeeper Payment.

I AM A COMPANY DIRECTOR THAT RECEIVES DIRECTOR FEES. AM I ELIGIBLE?

An eligible business can nominate only one director to receive the payment, as well as any eligible employees. Only one person in a director capacity may receive the payment and that individual may not receive the payment as an employee.

I AM PAID AS A SHAREHOLDER. AM I ELIGIBLE?

An eligible business that pays shareholders that provide labour in the form of dividends will only be able to nominate one shareholder to receive the JobKeeper Payment.

I RECEIVE RENTAL INCOME AS A LANDLORD BUT AM NOT REGISTERED AS A BUSINESS. AM I ELIGIBLE?

No. Only businesses with employees or self-employed people are eligible for the JobKeeper Payment.

I AM SELF-EMPLOYED. HOW CAN I APPLY FOR THE JOBKEEPER PAYMENT?

The ATO will administer the program with an online application process. You may be asked to provide your ABN and a single Tax File Number for the eligible recipient of the JobKeeper Payment, and a declaration of business activity.

I AM SELF-EMPLOYED AND ALSO HAVE A JOB. AM I ELIGIBLE FOR THE JOBKEEPER PAYMENT?

An individual can only receive JobKeeper Payments from one source. However, if you are eligible for a JobKeeper Payment, you can also receive income from other sources including another job. Other programs

WILL THE JOBKEEPER PAYMENT BE INCLUDED IN MY CHILD SUPPORT ASSESSMENT?

The JobKeeper Payment is included in adjusted taxable income. Parents should continue to report any change to their income or wages as they normally would. A key principle of the child support scheme is that children are supported by their parents in accordance with their financial capacity to do so.

MY BUSINESS RECEIVED A WAGE SUBSIDY THROUGH AN EMPLOYMENT SERVICES PROVIDER. ARE WE ELIGIBLE TO RECEIVE THE JOBKEEPER PAYMENT?

There have been no changes to wage subsidies administered by employment services providers. The Government's announcement of the JobKeeper Payment is intended to encourage employers, who might make staff redundant due to the Coronavirus outbreak, to retain or rehire their employees. This measure is a temporary measure, accessed through the Australian Taxation Office. Where an employer received a wage subsidy when they engaged an employee, they can still access the JobKeeper Payment if all other eligibility criteria for this payment are met.

CAN EMPLOYERS RECEIVE BOTH THE JOBKEEPER PAYMENT AND THE SUPPORTING APPRENTICES AND TRAINEES WAGE SUBSIDY?

Eligible small businesses can receive the 50 per cent wage subsidy for apprentices and trainees in the Supporting Apprentices and Trainees measure from 1 January to 31 March 2020, and the JobKeeper Payment. Where small businesses receive the JobKeeper Payment, they are not eligible to receive the apprentice and trainee wage subsidy from 1 April 2020 onwards. Further information on the Supporting Apprentices and Trainees measure is available on the Treasury website at treasury.gov.au/coronavirus/businesses. Compliance

WHAT WILL BE DONE TO ENSURE COMPLIANCE?

This program will be subject to ATO compliance and audit activities. There will be a positive obligation on employers to establish their eligibility and that of their employees. In addition, the ATO will cross-check payments with Services Australia data, and data from other government agencies, and undertake activities designed to identify multiple or ineligible payments to individuals.

WHAT IS THE GOVERNMENT GOING TO DO TO ENSURE COMPANIES DON'T MANIPULATE THEIR TURNOVER TO ENSURE THEY QUALIFY?

The ATO will provide guidance to help businesses self-assess their eligibility. This will include for circumstances that do not fit neatly into more general circumstances that the majority of businesses are in. The Government will include appropriate integrity rules to prevent employers from entering into artificial schemes in order to get inappropriate access to payments.

There are serious consequences, including large penalties and possible imprisonment, for those trying to illegally get benefits under the scheme.

WHAT IMPACT DOES THE JOBKEEPER PAYMENT HAVE ON WORKPLACE ENTITLEMENTS AND OBLIGATIONS?

Employers must continue to comply with their obligations in the Fair Work Act. The JobKeeper Payment does not remove any workplace protections for employees. Enforcement in relation to Fair Work entitlements will continue to sit with the Fair Work Ombudsman. Enforcement and compliance to ensure the JobKeeper Payment is passed on to employees will be done by the ATO.

Update taken from https://treasury.gov.au/

ATO crack down on COVID-19 tax rorts

Sun, 05 Apr 2020 23:00:00 GMT

ATO crack down on COVID-19 tax rorts

The ATO and the Tax Practitioners Board have now warned of "firm and swift action" against tax agents who defraud the government's stimulus package, with a dob-in hotline now established.

The joint regulators have now sent a clear warning to tax agents and their clients that any attempt to change a business structure or change the characterisation of payments to access the government's stimulus measures will be met with scrutiny and disciplinary action.

The warning comes after the p rofession was advised to steer clear of engaging in schemes to help clients access the government's cash-flow boost measure, with promoter penalties, general interest charges and disciplinary action listed as potential consequences.

The professional accounting bodies had also warned that the marketplace was rife with strategies to help businesses fall within the eligibility criteria to access the payments of up to $100,000.

"The intent of the government's relief measures is to help the economy withstand and recover from the economic impact of COVID-19 by supporting businesses to manage cash-flow challenges and retain employees," a joint statement by ATO second commissioner Jeremy Hirschhorn and TPB chair Ian Klug said.

"We ask that tax agents and businesses be mindful that it is not acceptable to backdate or artificially change a business structure or employment arrangements, including changing the characterisation of payments, in order to obtain a benefit or payment that would not otherwise have been paid.

"The ATO and TPB will take firm and swift action should this be the case."

www.accountantsdaily.com.au

The Coronavirus scams you need to watch out for

Sat, 04 Apr 2020 23:00:00 GMT

The Coronavirus scams you need to watch out for

The Coronavirus pandemic has changed our way of life and while many people have responded to situation with kindness and compassion, there are some people who are taking full advantage of the pandemic.

Scammers try to steal your personal and access financial information for the personal gain.

Some of the scams that have been reported so far:

Flight cancellations

So many people have had to cancel or reschedule flights and scammers are taking advantage of this by calling people and pretending to be the airline. Be careful if you receive a call like this, most airlines are offering credits, not refunds.

Phishing emails

Phishing emails and phone calls impersonating entities. These include the World Health Organisation, government authorities, people confirmed to have the coronavirus, and legitimate businesses such as travel agents and telecommunications companies

Impersonations

Scammers are impersonating health experts and are requesting personal information and offering health advice.

Other scams

Protecting yourself?

$10,000 grants to provide fast relief for NSW small business

Wed, 01 Apr 2020 22:00:00 GMT

$10,000 grants to provide fast relief for NSW small businesses battling COVID-19

Thousands of small businesses across NSW struggling to cope with the COVID-19 shutdown will receive grants of up to $10,000 under a new assistance scheme announced today by Premier Gladys Berejiklian, Treasurer Dominic Perrottet and Minister for Finance and Small Business Damien Tudehope.

PM says financial hardship will be reflected in rental waiver

Wed, 01 Apr 2020 22:00:00 GMT

PM says financial hardship will be reflected in rental waiver

Addressing the country today, Prime Minister Scott Morrison said that the anticipated industry code of practice for commercial tenants, designed to address particularly the small and medium sized tenancies, has not yet been finalised.

"An industry code of practice for commercial tenancies has been worked on by the various stakeholder groups. That industry code has not got to the point that we believe it needs to get to ensure a sufficient security for tenants and landlords affected," the Prime Minister said.

"I had hoped we had been in a position to finalise this today, and we're very close. "

He explained that the "code of behaviour", mandatory under state and territory laws, will apply to tenants with turnover under 50 million, that are a part of the JobKeeper program.

PM Morrison suggested that landlords will be forced to give rental reduction to tenants who have suffered revenue loss.

"The turnover reduction of the tenant needs to be reflected in the rental waiver of the landlord," said Mr Morrison.

"How that's done in the lease is up to the landlord and the tenant."

The PM assured landlords that they too will be protected, with banks expected to step up and join the table.

"The banks will need to come to the party as well, the banks are not party to those arrangements so legally that makes it a bit more difficult…. We would expect banks to be very supportive of the agreements reached under this code."

Although stressing the importance of mutual understanding, the PM assured that mediation will be made available in the event that landlords and their retail commercial tenants are unable to reach an agreement.

The Prime Minister also warned tenants that haven't had a reduction in their business turnover, that their leasing arrangements stand.

"You should be still paying your rent to the landlord. Those things haven't been suspended."

It is now expected that the code will be announced next week, bringing relief to thousands of businesses across the country.

JobKeeper payment

Sun, 29 Mar 2020 22:00:00 GMT

JobKeeper Payment

The Government is introducing a subsidy program to support employees and businesses. The JobKeeper Payment is designed to help businesses affected by the Coronavirus to cover the costs of their employees' wages, so that more employees can retain their job and continue to earn an income. Keeping Australians in work and businesses in business will lay the foundations for a stronger economic recovery once the Coronavirus crisis passes.

Summary

The economic impacts of the Coronavirus pose significant challenges for many businesses – many of which are struggling to retain their employees.

Under the JobKeeper Payment, businesses significantly impacted by the Coronavirus outbreak will be able to access a subsidy from the Government to continue paying their employees. This assistance will help businesses to keep people in their jobs and re-start when the crisis is over. For employees, this means they can keep their job and earn an income – even if their hours have been cut.

The JobKeeper Payment is a temporary scheme open to businesses impacted by the Coronavirus. The JobKeeper Payment will also be available to the self-employed.

The Government will provide $1,500 per fortnight per employee for up to 6 months.

The JobKeeper Payment will support employers to maintain their connection to their employees. These connections will enable business to reactivate their operations quickly – without having to rehire staff – when the crisis is over.

Eligibility

Employers (including non-for-profits) will be eligible for the subsidy if:

• their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or

• their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and

• the business is not subject to the Major Bank Levy.

Employers must elect to participate in the scheme. They will need to make an application to the Australian Taxation Office (ATO) and provide supporting information demonstrating a downturn in their business. In addition, employers must report the number of eligible employees employed by the business on a monthly basis.

Eligible employers will receive the payment for each eligible employee that was on their books on 1 March 2020 and continues to be engaged by that employer – including full-time, part-time, long-term casuals and stood down employees. Casual employees eligible for the JobKeeper Payment are those employees who have been with their employer on a regular basis for at least the previous 12 months as at 1 March 2020. To be eligible, an employee must be an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.

In circumstances where an employee is accessing support though Services Australia because they have been stood down or had their hours reduced and the employer will be eligible for the JobKeeper Payment, the employee should advise Services Australia of their change in circumstances online at my.gov.au or by telephone.

Self-employed individuals will be eligible to receive the JobKeeper Payment where they have suffered or expect to suffer a 30 per cent decline in turnover relative to a comparable a period a year ago (of at least a month).

Where employees have multiple employers – only one employer will be eligible to receive the payment. The employee will need to notify their primary employer to claim the JobSeeker Payment on their behalf. The claiming of the tax free threshold will in most cases be sufficient notification that an employer is the employee's primary employer.

Payment process

Eligible employers will be paid $1,500 per fortnight per eligible employee. Eligible employees will receive, at a minimum, $1,500 per fortnight, before tax, and employers are able to top-up the payment.

Where employers participate in the scheme, their employees will receive this payment as follows.

• If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements. The JobKeeper Payment will assist their employer to continue operating by subsidising all or part of the income of their employee(s).

• If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax. • If an employee has been stood down, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.

• If an employee was employed on 1 March 2020, subsequently ceased employment with their employer, and then has been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax.

It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.

Payments will be made to the employer monthly in arrears by the ATO.

Timing

The subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May. Businesses will be able to register their interest in participating in the Payment from 30 March 2020 on the ATO website. Budget impact This measure is expected to cost $130 billion across 2019-20 and 2020-21.

Budget impact

This measure is expected to cost $130 billion across 2019-20 and 2020-21.

Update taken from https://treasury.gov.au

ATO Lodgement dates

Sat, 28 Mar 2020 22:00:00 GMT

ATO Lodgement requirements

Below is a table of ATO lodgement dates from 1 April to 31 August 2020.

What employers need to know about FBT 2020

Sat, 28 Mar 2020 22:00:00 GMT

What employers need to know about FBT 2020

The key issues for employers this FBT year and beyond are outlined below.

Should I be registered for FBT?

If your business has employees (including Directors of a company or trustees of a trust) then it's highly likely your business needs to register for FBT. Generally, your business needs to register for FBT if you are providing any benefits (not in the form of wages) to employees, that are not exempt from FBT. Examples of common fringe benefits are:

The following benefits could be exempt from FBT:

- Protective clothing;

- Tools of trade;

- Expenses that would be otherwise tax deductible to the employee; and

- Superannuation.

Further, simply forgoing a tax deduction and GST credit does not provide an exemption from FBT.

We recommend that, even if you only have exempt benefits or no fringe benefits, that your business still be registered for FBT and lodge a yearly FBT return. In completing and lodging a yearly FBT return, your business will limit its exposure to Australian Tax Office (ATO) review for a period of 4 years from the date of lodgement of the FBT return.

It can be difficult to ensure the required records are maintained in relation to fringe benefits – especially as this may depend on employees producing records at a certain time. If your business has cars and you need to record odometer readings at the first and last days of the FBT year (31 March and 1 April), remember to have your team take a photo on their phone and email it through to a central contact person – it will save running around to every car, or missing records where employees forget.

If your business assists employees during an emergency, for example floods, bushfires, or a pandemic outbreak etc., then fringe benefits tax is unlikely to apply to the assistance you provide. While we doubt anyone would be thinking about FBT during a crisis, it's good to know that the tax system does not disadvantage your generosity.

Examples of the kinds of benefits exempt from FBT include immediate relief you provide to an employee in the form of:

• temporary repairs, for example on the employee's home or car. Long-term benefits are not exempt from FBT, such as providing a new house or car to replace one destroyed in the emergency event.

First aid or other emergency health care you provide to an employee is also exempt if it is provided by an employee (or a related company employee), or is provided at your premises (or those of a related company), or at or near an employee's worksite.

The exemption applies in a range of scenarios including natural disasters, accidents, serious illness, armed conflict, or civil disturbances.

Motor Vehicles – using the company car outside of work

Just because your business buys a motor vehicle and it is used almost exclusively as a work vehicle, that alone does not mean that the car is exempt from FBT. If you use the car for private purposes - pick the kids up from school, do the shopping, use it freely on weekends, garage it at home, your spouse uses it - FBT is likely to apply. While we're sure the old, "what the ATO doesn't know won't hurt them" mentality often applies when the FBT returns are completed, it might not be enough. The private use of work vehicles is firmly in the sights of the ATO.

Private use is when you use a car provided by your employer (this includes directors) outside of simply travelling for work related purposes.

Utes and commercial vehicles –safe harbour rules to avoid FBT for 'workhorse' vehicles

When an employer provides an employee with the use of a car or other vehicle then this would generally be treated as a car fringe benefit or residual fringe benefit and could potentially trigger an FBT liability.

One of the practical challenges when applying the exemption is how to determine if private use has been minor, infrequent and irregular. The ATO recently released a compliance guide that spells out what the regulator will look for when reviewing the use of the exemption.

The ATO has indicated that in general, private use by an employee will qualify for the exemption where:

• The employer provides an eligible vehicle to the employee to perform their work duties. An eligible vehicle is generally a commercial vehicle or one that is not designed mainly for carrying passengers. The requirements are very strict and guidance on this is published on the ATO website.

• The employer has a policy in place which limits private use and obtains assurance from the employee that the vehicle has only been used for certain purposes.

• The value of the vehicle when it was acquired was less than the luxury car tax threshold ($75,526 for fuel efficient vehicles in 2018-19 and $66,331 for other vehicles).

• The vehicle is not provided as part of a salary sacrifice arrangement; and

• The employee uses the vehicle to travel between their home and their place of work and any diversion adds no more than two kilometres to the ordinary length of that trip

• Some private travel is allowed, but the total private travel in the FBT year must not exceed 1000 km and, no single, return journey for a wholly private purpose must exceed 200 km.

If you meet all these specifications, the ATO has stated that it will not investigate the use of the FBT exemption further. However, the employer will still need to keep records to prove that the conditions above have been satisfied and to show that private use is restricted and monitored.

The ATO's top FBT problem areas

The ATO have identified the following as being problem areas under review:

Billions in tax relief for business, $1 billion fund for jobs, and help for the vulnerable

Wed, 25 Mar 2020 22:00:00 GMT

Billions in tax relief for business, $1 billion fund for jobs, and help for the vulnerable The NSW Government released the second stage of its economic package aimed at keeping people in jobs, helping businesses and supporting our most vulnerable in the face of the COVID-19 pandemic. Key elements of the NSW COVID-19 stage two package include: Keeping people in jobs and helping businesses stay afloat the creation of a $1 billion Working for NSW fund to sustain business, create new jobs and retrain employees. The fund is already being put in to action with 1000 new staff for Service NSW announced this week to be funded by the program. The Working for NSW fund will comprise $750 million in new funding and $250 million announced last week for additional cleaning services deferral of payroll tax for business with payrolls over $10 million for six months (up to $4 billion deferred). Businesses with payrolls of $10 million or less received a three-month waiver on payroll tax in the first package. These businesses will now get an additional three month deferral as well deferral of gaming tax for clubs, pubs and hotels, and lotteries tax for six months, conditional on these funds being used to retain staff. This improves liquidity and helps these businesses stay afloat deferral of the parking space levy for six months deferral of rents for six months for commercial tenants with less than 20 employees in all Government-owned properties. Helping the most vulnerable $34 million boost in funding to prevent homelessness $30 million to boost the Energy Accounts Payments Assistance scheme $10 million to support charities and $6 million additional funding for Lifeline's operations in NSW. Update taken from www.nsw.gov.au

When can employees be stood down without pay?

Tue, 24 Mar 2020 22:00:00 GMT

When can employees can be stood down without pay?

Employers and employees are encouraged to work together to find appropriate solutions that suit the needs of individual workplaces and staff. Employees who are stood down without pay remain employed for the period of the stand down.

Under the Fair Work Act, an employee can only be stood down without pay if they cannot be usefully employed because of a stoppage of work for any cause for which the employer cannot reasonably be held responsible.

Whether the option of standing down employees is available in circumstances relating to Coronavirus is very fact dependent and an employer should exercise the option cautiously.

The employer must be able to demonstrate that:

If an employer unlawfully stands down employees without pay, the employees will likely be able to recover unpaid wages.

Employers cannot generally stand down employees simply because of a deterioration of business conditions or because an employee has Coronavirus.

Some examples of when employers may be able to stand down employees include:

• if there was an enforceable government direction requiring the business to close (which means there is no work at all for the employees to do, even from another location)

• if a large proportion of the workforce was required to self-quarantine with the result that the remaining employees/workforce cannot usefully be employed

• if there was a stoppage of work due to lack of supply for which the employer could not be held responsible.

This is not an exhaustive list.

Enterprise agreements and employment contracts can have different or extra rules about when an employer can stand down an employee without pay, for example, a requirement to notify or consult. Employers should consider whether their obligations are impacted by any applicable enterprise agreement, award, employees' employment contracts or workplace policies.

Employers are not required to make payments to employees for the period of a stand down but may choose to pay their employees. Employees accrue leave as normal.

An employee is not taken to be stood down during a period when the employee is taking paid or unpaid leave that is authorised by the employer or the employee is otherwise authorised to be absent.

The stand down provisions in the Fair Work Act, enterprise agreements or contracts of employment are not usually relied on for casual employees.

Other options that an employer may consider instead of stand down include:

• seeking employees' agreement to take paid (or unpaid) leave for a period

• in limited circumstances, directing employees to take paid annual leave

• in limited circumstances, negotiating with employees to change regular rosters or hours of work

• terminating the employment of the employees, in which case the employer may have to provide redundancy pay.

The Fair Work Act includes requirements that employers have to meet before they can terminate an employee's employment, such as providing notice of termination. An employee is also protected from being dismissed because of discrimination, a reason that is harsh, unjust or unreasonable or another protected right. Employers are prohibited from exerting undue influence or undue pressure on employees in relation to making certain agreements or arrangements.

Update taken from https://coronavirus.fairwork.gov.au/

12 Tips for working from home

Tue, 24 Mar 2020 22:00:00 GMT

Our 12 tips for working from home

As the current Covid-19 health crisis is very real and thousands of people are losing their jobs, businesses are looking for ways to continue through this pandemic. If you're fortunate enough where your business is doing ok and can adapt to change and plan for the future.

One change for businesses is working remotely. We list below some of our top tips for working from home:

1. Create a separate, focused space for work

2. Invest in technology and have two computer screens

3. Get dressed each day

4. Plan your day and stick to your schedule

5. Be sure to get up and move around don't stay sitting all the time

6. Eat meals away from your desk so you get a break

7. Reach out if you're feeling isolated

8. Maintain regular hours and breaks

9. Remove distractions

10. Set deadlines and stay accountable

11. Keep in touch with colleagues about what they are doing and work as a team

12. Log off each day like you would at work

Temporary early release of Superannuation

Tue, 24 Mar 2020 22:00:00 GMT

Temporary early release of superannuation

The government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans' Affairs payments.

From mid-April 2020, eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months.

Eligibility

On or after 1 January 2020, either

How to apply

If you are eligible for this new ground of early release, you can apply from mid-April directly to the ATO through the myGov website. You will need to certify that you meet the eligibility criteria.

Timing

Increased and accelerated income support

Tue, 24 Mar 2020 22:00:00 GMT

INCREASED AND ACCELERATED INCOME SUPPORT

The Government is providing support for individuals to assist them during the next six months.

Summary

The Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months.

Eligibility

Payment categories

The income support payment categories eligible to receive the Coronavirus supplement are:

• Jobseeker Payment1 (and all payments progressively transitioning to JobSeeker Payment; those currently receiving Partner Allowance, Widow Allowance, Sickness Allowance and Wife Pension)

• Youth Allowance Jobseeker

• Parenting Payment (Partnered and Single)

• Farm Household Allowance

• Special Benefit recipients

Anyone who is eligible for the Coronavirus supplement will receive the full rate of the supplement of $550 per fortnight.

Expanded access

For the period of the Coronavirus supplement, there will be expanded access to the income support payments listed above.

• Expanded access: Jobseeker Payment and Youth Allowance Jobseeker criteria will provide payment access for permanent employees who are stood down or lose their employment; sole traders; the self-employed; casual workers; and contract workers who meet the income tests as a result of the economic downturn due to the Coronavirus. This could also include a person required to care for someone who is affected by the Coronavirus.

• Reduced means testing: Asset testing for JobSeeker Payment, Youth Allowance Jobseeker and Parenting Payment will be waived for the period of the Coronavirus supplement. Income testing will still apply to the person's other payments, consistent with current arrangements.

• Reduced waiting times: The one week Ordinary Waiting Period has already been waived.

1. Under changes announced in the 2017-18 Budget, from 20 March 2020, JobSeeker Payment replaces Newstart Allowance as the main income support payment for recipients aged between 22 years to Age Pension qualification age who have capacity to work.

Under changes announced in the 2017-18 Budget, from 20 March 2020, JobSeeker Payment replaces Newstart Allowance as the main income support payment for recipients aged between 22 years to Age Pension qualification age who have capacity to work.

2 To further accelerate access to payments, the Liquid Asset test Waiting Period (LAWP) and the Seasonal Work Preclusion Period (SWPP) will also be waived for recipients eligible for the Coronavirus supplement. : People currently serving a LAWP will no longer need to serve that waiting period. The Newly Arrived Residents Waiting Period (NARWP) will be temporarily waived for recipients eligible for the Coronavirus supplement. When the Coronavirus supplement ceases, those people that were serving a NARWP will continue to serve the remainder of their waiting period, though the time the person was receiving the Coronavirus supplement will count towards their NARWP. Residency requirements still apply. Income Maintenance Periods and Compensation Preclusion Periods will continue to apply, as payments under these arrangements are treated as income.

People will not be permitted, and will need to declare that they are not, accessing employer entitlements (such as annual leave and/or sick leave) or Income Protection Insurance, at the same time as receiving Jobseeker Payment and Youth Allowance Jobseeker under these arrangements.

From 20 March 2020, Sickness Allowance was closed to new entrants and was replaced by the JobSeeker Payment. This does not mean that people who previously may have been eligible for Sickness Allowance are now unable to access income support. JobSeeker Payment better accommodates individual circumstances, including assisting people who are sick or bereaved.

Faster claim process

Accelerated claim process: To ensure timely access to payments, new applicants are encouraged to claim through on-line and mobile channels. If applicants do not have internet access, they can claim over the phone. • From April 2020, Services Australia will allow new applicants to call to verify their identity to reduce the need to visit a Services Australia office. • To claim online, people who do not already deal with Services Australia will need to set up their myGov account, call to verify their identity, and get a link to their Centrelink online account. • Applicants for Jobseeker Payment and Youth Allowance Jobseeker will: Make an initial declaration about their identity, residency status, income and that they have been made redundant, or had their hours reduced (including to zero) as a result of the economic downturn due to Coronavirus. In the case of sole traders and the self-employed, applicants will make a declaration that their business has been suspended or had turnover reduced significantly. • Applicants may also declare the amount of rent they pay in this declaration to qualify for Rent Assistance. • Services Australia has effective measures in place to detect those seeking to defraud the social security system. Anyone fraudulently claiming a payment will need to pay the money back and may face imprisonment.

Streamlined application process: A number of simplified arrangements will be put in place to make it easier to claim, including removing the requirements for: • Employment Separation Certificates, proof of rental arrangements and verification of relationship status; • Job Seeker Classification Instrument assessment for those people who have recently left jobs, recognising they are job ready; and • Job seekers to make an appointment with an employment service provider before they can be paid.

Flexible jobseeking arrangements

Those receiving Jobseeker Payment have an obligation to actively look for work or build their skills, but the Government is making sure this can be done flexibly and safely. • Jobseekers who have caring responsibilities, or who need to self-isolate, are able to seek an exemption from their mutual obligation requirements without the need for medical evidence. • Activities can be rescheduled if the job seeker is unable to attend as a result of the Coronavirus. Job Plans will be adjusted to a default requirement of four job searches a month (or one a week) to reflect softening labour market conditions.

Mutual obligations can be tailored for each individual to suit not only their needs but also the needs of the community. In some circumstances, job seekers can undertake training or volunteer within their community to meet their mutual obligation requirements.

Sole traders that become eligible for the Jobseeker Payment will automatically meet their mutual obligation requirements during this period by continuing to develop and sustain their business.

Job seekers are encouraged to stay job ready, connected to their employment services provider and up to date on potential job opportunities in their local area.

These changes ensure that job seekers can reliably access income support, safely look for work, fill critical vacancies as they emerge, develop their skills and job preparedness, contribute to their community and help the economy to bounce back stronger.

Timing

The Coronavirus Supplement and expanded access for payments will commence from 27 April 2020.

Budget impact

The expanded access to income support payments and the Coronavirus supplement will operate as a demand driven program. These measures are expected to cost $14.1 billion.

Update taken from www.treasury.gov.au/coronavirus

Applying for Government Stimulus Packages

Mon, 23 Mar 2020 22:00:00 GMT

Applying for Government Stimulus Packages Adams Triglone are continually working for our clients and their personal circumstances. We are doing a lot of work in the background and one of those areas we are currently focused on our clients with businesses who may be eligible for Government stimulus packages. If you are a business client and think you might be eligible, we need to get your March Business Activity Statement (BAS) up to date in order to apply for these. If you think you can close your ledger off early then please do so and get in touch with us as soon as it is done. If you need a bit more time, please aim to close off shortly after 31 March 2020 so we can get onto this straight away. Once you have submitted your March accounts we will be reviewing these and looking for additional Government incentives that may be of benefit to you that you have not yet considered. We are continually keeping up to date with the evolving situation and announcements to ensure our clients have access to all relevant packages handed down by the Government. We hope everyone is doing well. Please feel free to reach out if you have any questions or would like some advice. We are always here to help. The Team at Adams Triglone

Temporary Early Access to Superannuation

Sun, 22 Mar 2020 22:00:00 GMT

TEMPORARY EARLY ACCESS TO SUPERANNUATION

The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their Superannuation in 2019-20 and a further $10,000 in 2020-21.

Summary

While superannuation helps people save for retirement, the Government recognises that for those significantly financially affected by the Coronavirus, accessing some of their superannuation today may outweigh the benefits of maintaining those savings until retirement.

Eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months (exact timing will depend on the passage of the relevant legislation).

Eligibility

To apply for early release you must satisfy any one or more of the following requirements:

• you are unemployed; or

• you are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or

• on or after 1 January 2020:

- you were made redundant; or

- your working hours were reduced by 20 per cent or more; or

- if you are a sole trader - your business was suspended or there was a reduction in your turnover of 20 per cent or more.

People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans' Affairs payments.

How to apply

If you are eligible for this new ground of early release, you can apply directly to the ATO through the myGov website: www.my.gov.au. You will need to certify that you meet the above eligibility criteria.

After the ATO has processed your application, they will issue you with a determination. The ATO will also provide a copy of this determination to your superannuation fund, which will advise them to release your superannuation payment. Your fund will then make the payment to you, without you needing to apply to them directly. However, to ensure you receive your payment as soon as possible, you should contact your fund to check that they have your correct details, including your current bank account details and proof of identity documents. Separate arrangements will apply if you are a member of a self-managed superannuation fund (SMSF). Further guidance will be available on the ATO website: www.ato.gov.au. Timing You will be able to apply for early release of your superannuation from mid-April 2020.

If you would like assistance with this or would like to talk to us please contact our team on 02 8848 3000.

Update taken from www.treasury.gov.au

Latest Update - 23 March 2020

Sat, 21 Mar 2020 22:00:00 GMT

Dear Friends,

We know that these are unprecedented times and we are all facing many challenges. Things are changing hourly if not faster and Adams Triglone are continuing to work around the clock to keep you up to date with all of these developments. We have put into place arrangements to allow our team members to continue to work to ensure we are here for you when you need us. We are not going anywhere. For the safety of our team, we may be working from home at times but remain available through all the usual channels - emails and phone numbers remain the same.

We will be updating our Facebook, Linked in and blog regularly as updates come through rather than continually clogging up your inbox. We encourage you to go to these links and like or follow for updates:

Facebook

Linked in

We understand everyone's circumstances are different and we will be in touch with each of you in due course to determine how this affects you. In the meantime, if you are concerned please call us today or whenever you need to on 02 8848 3000 or you can also email our office at enquiries@adamstriglone.com.au

Below is further information about the Government Stimulus package announced yesterday.

Some points to consider:

1) Government Stimulus Programs have been released in various jurisdictions to benefit small business owners, veterans, the unemployed and other groups. The provisions of these programs (and associated processes) are evolving as the situation develops. You may be a beneficiary under these programs.

2) Running Your Business: Your industry, market, regulatory environment and other factors will influence what you need to do. Change in demand for your products, unpredictable supply chains, altered working conditions and reduced access to debt may impact you. We are seeing businesses that are dramatically affected and those which are unaffected. Some businesses are finding opportunities and will be strengthened through these events. Identify the risks and opportunities you are facing and take appropriate steps.

3) Personal Affairs: Be aware that these events will affect businesses and also the individuals within them. Some will be subject to travel restrictions, stock market volatility or concerns for the well-being or vulnerable friends and family. Employers should be sensitive to this in the course of business decision-making.

4) An Opportunity to Reflect: Dramatic events prompt us to look critically at our situation and take care of our affairs which we may have neglected. Wills, succession planning and asset protection are a good starting point. Who do you depend upon and who depends upon you? What needs to happen to strengthen these relationships? We can help you navigate this.

5) Thinking Long-Term: While many people will think tactically and short term, this may be an opportunity to set longer-term goals ... and get ahead of the competition.

6) Access to Information: There are many sources of information but, unfortunately, some are not credible. Try to eliminate the 'noise'. It is unlikely that the decisions you need to make require minute by minute updates on 'breaking news'. Important news will find you... so use the 'in-between time' to strengthen your business and personal affairs.

There are going to be some tough times ahead but working through it together one step at a time we will come out the other side stronger.

Please be patient and kind to each other in these uncertain times.

Look after yourselves and your family.

Greg

Latest information

Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020.

Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgments. To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (300 per cent) in the March 2020 activity statement.

The minimum payment will be applied to the business' first lodgment.

Additional payment

The additional payment will be applied to a limited number of activity statement lodgments. The ATO will deliver the payment as a credit to your business upon lodgment of your activity statements. Where this places the business in a refund position, the ATO will deliver the refund within 14 days.

Quarterly lodgers will be eligible to receive the additional payment for the quarters ending June 2020 and September 2020. Each additional payment will be equal to half of your total initial Boosting Cash Flow for Employers payment (up to a total of $50,000).

Monthly lodgers will be eligible to receive the additional payment for the June 2020, July 2020, August 2020 and September 2020 lodgments. Each additional payment will be equal to a quarter of your total initial Boosting Cash Flow for Employers payment (up to a total of $50,000).

Early release of superannuation

The Government will allow individuals in financial stress as a result of the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.

Eligible individuals will be able to apply online through myGov for access of up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for another three months. They will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans' Affairs payments.

This measure is estimated to cost $1.2 billion over the forward estimates period.

Temporary reduction in Minimum Drawdown Requirements

The Government has announced that the minimum pension requirements for 2019/20 and 2020/21 will be re-set to half the normal rates and there will be changes to the deeming rates used to calculate an individual's income for a range of important government benefits (including the age pension).

Similar to the approach taken in the 2008/09 Global Financial Crisis, the minimum drawdown requirements for account based pensions and similar products will be temporarily reduced by 50% for the 2019/20 and 2020/21 years.

The revised rates for the 2019/20 and 2020/21 years will be as follows:

Reducing social security deeming rates

On top of the deeming rate changes made at the time of the first package, the Government is reducing the deeming rates by a further 0.25 percentage points to reflect the latest rate reductions by the RBA.

As of 1 May 2020, the lower deeming rate will be 0.25 per cent and the upper deeming rate will be 2.25 per cent.

The change will benefit around 900,000 income support recipients, including Age Pensioners.

This measure is estimated to cost $876 million over the forward estimates period.

COVID-19 Response

Wed, 18 Mar 2020 22:00:00 GMT

COVID-19 Response - Update

These are unprecedented times, but we're clear on what matters most. We're guided by our values every day. And nothing is more important to us than the health and safety of our employees, all of you, and the communities where we work and serve. In fact, nothing else comes close.

As the situation with COVID-19 continues to evolve, we want to reassure you that the firm is fully resourced to support and service our clients. Right now, that means taking steps beyond what we're required to do. To support global efforts to slow the spread of COVID-19, we are implementing the below:

Risk Management

We have put in place a range of risk management initiatives based on the expert advice of the Federal and State governments to ensure we protect the health and safety of our employees, clients, suppliers and all of our stakeholders. These measures include:

Whilst some of our employees may be working remotely, our people will continue to be available through the normal communication channels whenever you need them.

Business Continuity

For many of our business clients, you will undoubtedly be experiencing a variety of disruptions to your normal operations. Over the coming weeks we will be keeping you informed about some of the key issues you may encounter and how best to handle those situations. This may take the form of questions about both Federal and State government stimulus packages; health, safety and leave entitlements for your employees; contractual disputes with customers and suppliers; supply chain issues; and, negotiating terms of agreements due to the unprecedented circumstances we find ourselves in.

Our team is always available via phone and email to answer any of your questions and extend a (sanitized) helping hand, so please do not hesitate to contact us if you have any questions or concerns.

You can be assured that we will continue to monitor the situation on a daily basis and will keep you informed as the need arises.

You are the most loyal and dedicated customers and we may need your patience. In the meantime we thank you for your support and look forward to being in touch again soon.

$500 Government Co-Contribution Scheme - Find Out If You Are Eligible

Sat, 14 Mar 2020 22:00:00 GMT

If you are employed, your employer should be setting aside a percentage of your earnings and contributing them into your Superannuation account.

If you are earning less than $53,564 per year in the 2019-20 financial year and put in extra money into your super, you could be eligible for a government co-contribution of up to $500 paid into your super account as a reward.

You won't have to make your contribution all at once, and you won't have to fill in any forms to apply for this scheme. You'll just need to lodge your annual tax return as per usual for the financial year, and link your TFN to your super account - and the ATO will take care of the rest.

This fantastic scheme will allow eligible people to boost their retirement savings. As the Government policies are always evolving, best to get your hands onto the scheme so you don't miss your chance to receive this government co-contribution!

Eligibility Requirements

· Earn less than $53,564 before tax in the 2019-20 financial year

· Earn 10% or more of that income from employment or self-employment

· Be a permanent resident of Australia for the full financial year

· Have not exceeded the total superannuation balance of $1.6m or the non-concessional contributions cap

· Lodge a tax return for the 2019-20 financial year

· Be under the age of 71 years at the end of June 2020; and

· Satisfy the work test if you are 65 years of age or more (which means you would Have worked a minimum of 40 hours within 30 consecutive days in the financial year you make the contribution)

· Make an after-tax contribution to your super.

If you need any further advice or assistance regarding this scheme, get in touch with us and we will be able to provide more insight.

From Our Director: Coronavirus (COVID-19) Update for Business Owners

Wed, 11 Mar 2020 22:00:00 GMT

Just this morning, we have heard breaking news with PM Scott Morrison and the Treasurer Josh Frydenberg's public announcement of the Government Stimulus Package. On top of this, the Australian Grand Prix amongst other events have been cancelled.

We've observed that this has impacted many individuals and businesses which in turn has resulted in an outroar of reactions.

I personally understand the worries and fear, however, we'd like to assure you that it is business-as-usual in Australia.

The government are constantly providing updated information and guidance on how to manage the coronavirus. Please do not ignore health warnings and follow the provided NSW health guidelines here . I am sure that you have all received correspondence from schools, clubs etc on how they are responding to the Coronavirus outbreak by now and we strongly suggest you read everything and follow the given advice.

I believe that the matters of the world always return to balance.

We understand that the situation may seem dire, especially when you can't escape from the constant "BREAKING NEWS" and "CORONAVIRUS UPDATE" headings - how could you not feel anxious?

Our suggested solution to this for individuals and business owners is to put up the "open" sign and continue business as usual. We are fortunate in Australia that we can continue to conduct business as well as go out, eat, and live our daily lives.

My clients, friends and family have sought my advice for their business and money worries, as well as the panic buying and stocking of living essentials, and I always say the same thing. In Australia, we are very fortunate to have undisrupted supply chains of essential goods and services.

If you do feel unwell and have to self isolate, you will still be able to get what you need for daily life. Please ensure that you have made a remote or working-from-home plan, If you have not already done so, I strongly advise doing it now. We can assist you to formulate a policy for your team and advice on technology options to enable this.

Recently, the Federal Government released a suite of stimulus measures aimed predominantly at small businesses. These measures include cash refunds of Pay-As-You-Go Withholdings made to employees. Generous investment incentives and cash handouts to certain households. I posted the government media release to my website here .

I fully sympathise with all those affected and will continue to offer my support for businesses as
I strongly believe we will find opportunities and strategies to come out of this situation positively.

The government stimulus package is designed to benefit small business and we are already actively advising people on the opportunities available to them. This needs to be bespoke for each business and its unique characteristics.

Although we await legislation to lock in the stimulus plan, our team are waiting by to advise and assist you in benefiting from the package as intended.

Recovery from this "crisis" may be fast or slow, nobody knows. In the end we will acclimatise to the situation and the news cycle will eventually move on.

In conclusion, I urge you to remain calm and carefully consider your risks. My opinion is that your action plan should be:

And most importantly, if you need reassurance, advice or assistance tailored to your needs get in touch at any time. We are here to help, add value and reassure in these uncertain times.

Economic Stimulus Package

Tue, 10 Mar 2020 22:00:00 GMT

The Number 1 Thing You Need to Know About Your Business

Wed, 11 Dec 2019 22:00:00 GMT

When you own a small business, it's vital you understand how money flows into and out of it. At a basic level, you need to know where your income comes from and what your expenses are. At a deeper level, knowing how money moves through your business can help you make strategic decisions about growth, invoicing, and debt management. The consequences of not understanding money can be drastic-poor financial management is one of the main reasons businesses fail.

That's why you need to understand cash flow.

1. What is cash flow?

2. How do I conduct a cash flow analysis?

Some accounting software programs allow you to conduct a cash flow analysis through the platform itself or possibly via an addon. Open the program and often a cash flow statement can be found under a "Reports" tab or something similar. So if you're already using accounting software, you can have a cash flow statement with minimal effort.

If you don't use accounting software, you'll have to conduct the analysis manually. Here is a very basic cash flow analysis (This can easily be done using a spreadsheet):

First enter the amount of cash your business actually had in the bank at the start of a financial period (say a month). Second, add up all the money that came into your business in the month. Include only money that actually came in, not money still owing from clients. Third, add this to the cash from the start of the month (in Step 1). Fourth, add up the cash that went out for the month, including rent, cost of goods, fixed costs and loan payments. Fifth, subtract the total in Step 4 from the total in Step 3. This gives you your cash at the end of the month, which is also your starting balance for the next month.

If the cash in your account is lower at the start of each month from the previous month, you have a cash flow problem that requires further analysis.

3. Why is cash flow important?

Not making enough money to cover debts is a major reason small businesses fail. Understanding your cash flow can help you take the steps you need to identify and address issues before they threaten your business.

A cash flow analysis can tell you if you're allowing clients too long to pay their invoices, making you financially vulnerable. You can then determine if you need to charge a deposit for your services or shorten the payment terms. It can also tell you if you're spending too much in areas that are not profitable for you. This can help you figure out where you need to cut back on spending-or charge your customers more.

Regular cash flow analysis can also show you what times of the year your business drops off - such as if you have a seasonal business. That can help you plan for those times to make sure you have enough money to cover a loss in revenue.

Final thoughts

Get in touch Need help managing your cashflow? We can help. Have a chat to us today.

How to get your life back in a seven-day-a-week business

Mon, 09 Dec 2019 22:00:00 GMT

Small business owners already have a difficult and time-consuming job running their business. If their business is open five days a week, they usually need the weekend to catch up on paperwork, pay bills and manage any tasks they didn't get to during the week.

For those with a seven-day-a-week business, there's even less time off. They often feel the need to be onsite any time the business is open, to deal with unanticipated issues, help the staff out, and ensure all tasks are completed.

Being onsite seven days a week isn't healthy or productive, however. It can cause burnout and result in errors being made. It affects the business owner's personal life and quality of life, not to mention their overall well-being.

Here are three tips for getting your life back when you operate a seven-day-a-week business.

1. Hire a trusted manager

The next best thing to having you onsite all the time is to have a manager with authority similar to yours who can be onsite when you aren't. Invest money in hiring a manager to deal with operations so you can take days off. Train that person to deal with any issues you anticipate and make sure they know and understand the business inside and out. Give them the authority to make decisions in your absence. It might take a little time to build up the trust with that manager, but when you have it, they will be invaluable to you.

2. Delegate tasks you don't need to do

As a small business owner, you have regular duties that need to be done but could be better done by an expert. Doing them yourself takes up a ton of your time and forces you to be on the jobsite more. Look at your tasks and determine which ones are eating up your valuable time. Could you hire a bookkeeper? An accountant?

Virtual assistants can now be hired to deal with invoicing, collecting payments and making phone calls on your behalf. That frees you up to deal with other tasks at your jobsite, which means you may get your other duties done and find you have free time.

These outside service providers cost money, but they are worth the expense when you consider the time and energy you'll save by not taking on those tedious tasks. Especially when you factor in the extra personal time you'll have.

3. Start slowly

The worst thing you can do is wait until you feel you're about to have a nervous breakdown before you think about taking days off. That increases the chances that you'll need a day off at exactly the wrong time-during the busy season or when there's a work-related crisis emerging.

To get yourself comfortable with taking days off and get staff used to you being away, start slowly. Maybe take an afternoon off during the weekday that's typically the slowest. When you're comfortable with that, start taking a full day off here and there. After a while, you'll be fine taking two days off, even during busier periods. You may not always have a five-day-a-week job, but at least you'll be okay taking days off for yourself.

Final thoughts

You need time away from your business to maintain your sanity and stop yourself from burning out. Having trusted staff and expert service providers in place will help you take a break from your worksite and get yourself some personal time.

Tips for switching off during the holidays

Sun, 24 Nov 2019 22:00:00 GMT

The holiday season is once again here, and with it comes time to relax, focus on family and friends and take stock in what is really important in life. Unless you're a small business owner. Every small business owner knows that being away from the office can be just as stressful as being in it.

Phone calls from employees dealing with a minor crisis will pull your focus from your family, or your Christmas dinner will be taken over by business talk. Like the merry bells of Christmas, your cell phone will constantly chime with the sounds of urgent text messages and emails that must be dealt with. Clients will need your attention.

It's easy to let business take over personal life, but as a small business owner it's vital that you get some time away from work.

Here are some tips for helping you switch off during the holidays.

Shut down entirely for the week

If your business can be shut down for a week, consider closing from Christmas to New Years. Your employees will love the time off and you won't be bothered with urgent texts about something that just went wrong at the office. This time is generally not as productive for workers anyhow, as they all want to get home, be with loved ones, and celebrate the season.

Just make sure you give your clients some notice that you're closing up. Good clients will respect your decision and even encourage it.

Have someone trained to deal with your absence

A big headache for small business owners is constant calls from employees who can't carry out basic tasks or make decisions. If you plan on taking time off but are leaving the business open, have someone senior available to answer questions or take over duties other employees can't.

Make sure employees are prepared for situations that could arise, but they can fix on their own. Can they use someone else's computer if theirs dies? If a client calls with a crisis, which staff members can deal with each situation?

Assign one or two people-not you-to be contact people in case staff needs assistance and give those two people strict instructions about when they can contact you. You don't need phone calls on your days off because someone doesn't know how to work the coffee machine.

Resist the urge to plan meetings during this time

When a client comes to you just before you take your days off and requests a meeting over the holidays, it can be difficult to resist that urge. That meeting, however, will take up time and space in your brain aside from the actual meeting time. You'll prepare for it, you'll think about it, you'll plan what to say. If the meeting doesn't go well, it will affect the rest of your days off.

Instead, push the meeting until after the holidays. Unless the situation is dire, an extra week won't hurt. Or ask another worker to attend the meeting for you.

Final thoughts

If you're taking time over the holidays, really take time. Don't take time off but then spend that time constantly checking for work-related texts and emails or attending meetings. Put your cell phone away. Stop checking your email. Set an outgoing email that lets people know when you'll respond to their messages and change your voicemail to note your days off. That way you can rest, relax, and enjoy your break.

If you're a small business owner, you'll need this time to restore your energy for January. Now go hide your cell phone.

3 Must Have Apps for Tradies

Sun, 10 Nov 2019 22:00:00 GMT

When you run your own trade business, your life involves a lot of long days being on job sites while managing projects, staff and clients. There probably are not enough hours in the week for you to deal with all the issues that arise while keeping your customers happy, and taking time out of your schedule to manage your business is probably the last thing you want to do.

Thanks to a variety of online software companies, running your business is now a lot easier. You can efficiently manage your projects, employees, finances and records all through your computer or your tablet, freeing you up to focus on your clients.

Here are three online software companies you should consider adding to your technology toolbox.

Xero (xero.com)

Unless you're an accountant, anything to do with finances probably isn't on your list of fun activities. You don't want to spend your time writing up invoices and chasing down clients for payment, or tracking and reviewing your expenses. You want your energy to go to an exciting project or finding a solution to a client's problems.

Xero lets you do just that. It offers a user-friendly invoicing system that allows you to accept payments through the software. You can connect Xero to your bank account so transactions are imported to your Xero account daily, meaning you don't have to manually enter them. You can even manage your inventory and conduct bank reconciliation through the program.

All those stressful accounting tasks are taken care of, with minimal effort from you.

Receipt Bank (receipt-bank.com)

As Receipt Bank astutely notes, you didn't go into business to do paperwork. Receipt Bank makes it easier for you to keep track of your expenses, including storing receipts, classifying expenses, reviewing data, and sharing the information with your accountant. It connects with other accounting software, including Xero, so you don't have to manually share information between various programs.

Leave the paperwork to the experts and focus on the activities you love to do.

ServiceM8 (servicem8.com)

ServiceM8 makes project supervision more efficient and easier to control. You can track a project from the first time a client calls you for information to the moment their invoice is paid in full. The software allows you to manage your employees, provide quotes for potential clients and record notes and other project data.

You don't even have to be on the job site to see where your staff is or keep up with an ongoing project, you can simply check through the software. You can also schedule your appointments and receive reminders about upcoming meetings. ServiceM8 can even help you make dispatching decisions about your staff, figuring out who is closest to a jobsite or can reach a client quickly.

Final thoughts

For many business owners, the management is the least fun aspect of business. It drags you away from the work you love doing and drains your time and energy. Using technology to help you out in areas that you don't enjoy is a way to ensure those tasks are completed correctly.

Adding these technology tools to your toolbox makes running your business easier, more efficient and more enjoyable.

Get in touch with us to find out how we can help your trades business.

What are the hidden costs for buying a house?

Thu, 17 Oct 2019 22:00:00 GMT

A word to the wise if you're shopping for a new home: the list price is only a baseline. You'll want to have a substantial buffer in your budget for a host of additional unseen fees.

This article will help you understand all the associated costs of buying a house so you're prepared.

Purchase Fees

Appraisal

Before a lender will approve your mortgage you may be asked to undertake an independent assessment of the property's value. This helps your lender determine the mortgage amount, calculated as a percentage of the appraised market value. It also lowers the lender's risk of loss; an appraisal helps confirm that if you default on your payments, the loan could be repaid by selling the property.

Home Inspection This additional expense is in your best interest. If major problems are uncovered, you can ask the seller to fix them as a condition of sale – or walk away if they refuse and the cost of repairs exceeds what you're willing to invest. Some home buyers choose to opt out of an inspection, but many lenders won't approve a mortgage unless one has been done.

Legal Fees

You'll need to retain the services of a property lawyer to protect your interests. A legal professional will complete title searches on your behalf, prepare the documents for property purchase as well as mortgage documents, manage the transfer of funds, and register your name on title when the sale is complete.

Insurances

Title Insurance

There's a growing demand from property investors, mortgage lenders, and auditors for additional protections that lower risk. Title insurance protects you from unforeseen issues that could lead to major trouble including:

· Errors and defects (i.e. in existing surveys or the public registry)

· Omissions

· Restitution for unresolved issues with a previous owner

· Undisclosed property heirs

Mortgage Insurance

Also known as a mortgage indemnity guarantee, this insurance protects the lender if you are unable to make your mortgage payments and/or if the lender has to repossess your home. Mortgage insurance is often a requirement for buyers applying for a high-ratio mortgage.

Home Insurance

Also known as property, home owner's, or house insurance, home insurance protects you from damage or loss to the building as well as your home's contents. Proof of home insurance is often a condition for mortgage approval and, depending on your agreement, would protect you from loss due to earthquake, fire, flood, and theft.

P roperty Taxes

Three innovative tips for finding employees

Sat, 05 Oct 2019 22:00:00 GMT

We all know the usual process for finding new employees. Advertise a job. Read resumes. Conduct a telephone interview. Conduct a face-to-face interview. Choose someone. The steps to recruiting new talent have been the same for decades, leaving many people to think these are the only way to find new employees.

There are many top-notch employees that you might not be reaching if you don't change your strategy, however and these days there are many new and exciting ways to reach out to possible staff and attract qualified employees to your business. All you have to do is be willing to be creative in your thinking.

Get your current employees on it
Besides you, who knows better what you need in an employee than your current employees? Not only do they know what you need, they can vouch for the people they recommend. Using an employee referral program can save you the costs associated with advertising a position, undergoing extensive interviews, and then training and retraining employees who don't work out.

How does it work? Your employees recommend people for a job with your company and if their recommendation is successful they get a reward. This can be a cash bonus, a gift, additional days off work, or the opportunity to work from home for a few days.

Make sure the program's details are clear: does the referred employee just have to be hired for the benefit to kick in, or do they have to work at your company for a specific period? Does the gift get more extravagant if they recommend more successful recruits?

Keep the rules simple and make sure all employees know about the program.

Turn to social media

Social media isn't just a great way to build your customer base, it's also a fantastic way to build interest in working for your company. Employees of all ages-but especially younger generations-use some form of social media to look for work. That could be LinkedIn, but it can also mean Facebook, Twitter, Instagram or a variety of other sites.

Even if someone who sees your post isn't interested, they may share it with their friends or followers, who will share it with theirs, vastly increasing your reach. Be sure you know who your target candidates are and what social media channels they use, and tailor your ads or posts to them.

If you have the time to have a long-view of recruiting, start building your company's employment brand online early, by releasing content that highlights your corporate culture. People may see those posts and come to you so you can build your talent pool. At the very least, you'll already be on their radar when it comes time to hire.

Reach out to past candidates
Just because someone wasn't the best candidate for a job in the past doesn't mean they aren 't now. There could have been many factors that resulted in that person not being the best fit at that time. Perhaps they've taken courses or developed their experience since you interviewed them.

When you interview people that you really like but they don't quite make the cut, keep their resume on file and consider reaching out to them when a position opens up. You never know when the time will be right for them.

Final thoughts
There are many things you can do that can be successful in finding the right employee for your business. As an added bonus, some of these strategies won't necessarily cost you a lot of time or money and may get you highly qualified and loyal employees.

Try some of them the next time you're hiring and see if that gets you the candidates you need.

Protect Yourself and Your Data - Proactive Steps for Living Safely in the Digital Age

Thu, 12 Sep 2019 23:00:00 GMT

These days your personal data is everywhere, and that information is valuable to marketers, hackers and everyone in between. If you want to prevent the unauthorized use of your personal information, you need to take a proactive approach to protecting yourself and your identity.

You can no longer afford to be blasé about your data security - if you are not taking proactive measures to prevent the use of your personal information, you are opening yourself up to all kinds of problems. Here are some tips you can use to protect yourself and your data in this age of data breaches.

Check Your Privacy Settings on Social Media

There is an old saying in the tech world - if the service is free, you are the product. Nowhere is this more true than in the world of social media. Avoid the Facebook may be getting all the headlines, but other social media companies operate in the same manner, selling your personal data to advertisers and serving up targeted marketing messages.

While there is nothing inherently evil in targeted advertising, it can become obtrusive when bad actors get involved. If you want to protect your data from the next Cambridge Analytica, you can start by adjusting your privacy settings. Controlling the type of data that is shared, and who it is shared with, can go a long way toward protecting your privacy.

Designate an Online Shopping Card

Shopping online is convenient, but it is important to stay safe. With so much credit card data being stolen, it has never been more important to be proactive about protecting yourself and your money.

You can start by designating a single card for all your online shopping. Use that credit card whenever you shop online, then check your statements carefully for signs of fraud and unauthorized use.

Avoid Saving Your Credit Card Data at Shopping Sites

It may be convenient to save your payment information, but it is also risky. Avoid the temptation to save your credit card information and instead take the time to enter it each time you shop.

This proactive measure will protect you in two ways. First, it will prevent your credit card information from being revealed in the next data breach, but it will also reduce the impulse purchases that might otherwise wreck your budget.

Use Strong Security on All Your Devices

Your online security is only as strong as your weakest link, so make sure all your devices are well protected. From your tablet to your smartphone to your laptop, make sure you have strong antivirus and malware protection on every device you use.

Implementing strong security and keeping it updated is one of the best things you can do to protect yourself from the next data breach. Think of your online security as a chain, one that requires the robust participation of every link along the way.

Data breaches are inevitable, and the bad guys keep coming up with new ways to steal your personal information. If you want to protect yourself in this dangerous digital world, you need to take a proactive approach, and that means building security into everything you do online.

Three reasons why you need small business insurance

Sat, 31 Aug 2019 23:00:00 GMT

If your small business operates on a tight budget you might be tempted to eliminate costs that you think aren't necessary. Often small business owners choose to go without business insurance as a way of saving money, but doing so can be incredibly costly in the long run.

4 questions you should ask your accountant

Wed, 14 Aug 2019 23:00:00 GMT

What you need to do before you retire

Wed, 31 Jul 2019 23:00:00 GMT

Most people dream about they day they no longer have to work. They dream of having a leisurely coffee in the morning without running to a meeting or they want to spend six months of the year visiting exotic locations. Being able to do so requires planning. It means you have to think about your financial future and take steps to make sure you can afford the lifestyle you want to live.

Here are some things to do before you retire.

Examine your retirement needs

Before you can even begin to think about how to save for retirement, you need to know what you want your retirement to look like and how your finances will affect it. Consider how you want to live in retirement. Will you want to travel a lot? Downsize your home? Have your regular home and a holiday spot? Will you need to renovate your house?

You also need to know what you'll have to pay for, and how. Do you currently own a home but plan to sell it to move into something smaller? Will your home be paid off by the time you retire? Do you want to maintain certain investments in your senior years or would you prefer to be liquid?

Next look at the income you'll have. What will your current investments likely provide for you as you age? What will your pension be? Will you have income you can count on beyond a pension? Are you eligible for other entitlements?

Having a firm understanding of how you want your life to look as you age and what money you'll have to live off will help determine how you can start saving today for retirement and help you sort out when you can afford to retire.

Deal with your debt

Next you need to look at the debt you currently have and make a plan to deal with your bad debt. Although many people think all debt is bad, in truth there is good debt. Good debt is part of a strategy that builds your wealth over time. Owning a home can be good debt. Bad debt takes away from your wealth. This may be through interest, such as on credit cards for example.

Retirement will be less financially stressful if you can reduce your bad debt before you retire-and preferably well before you retire.

Then examine whether there are other financial matters that need addressing. Do you have a current will? Is your insurance up to date? Should your investments be reviewed? Is it worth it to make additional superannuation contributions?

Final thoughts

Once you know what you want your retirement to look like and you have an idea of your finances, you need to develop a financial plan. Retirement savings don't just happen with good intentions. It takes planning, saving, and understanding what financial vehicles are best for you to make your dreams a reality.

Talking to us can help you sort out what you need to do now, a few years in the future and as you enter retirement to ensure you're as financially comfortable as possible.

Ideas for business goals this year

Sat, 20 Jul 2019 23:00:00 GMT

While some entrepreneurs love planning, others feel overwhelmed by the process. How do you decide on just a handful of goals that take priority, with so many moving parts that make up a business?

These tips can help you get started brainstorming how your company can plan for greater success in the years ahead.

Redefine your brand

Is the elevator pitch you used a year ago – even six months ago – still accurate? Unless you are crystal clear on who you are as a company, whom you're here to serve, and what you hope to achieve in the next one to three years, it's going to be hard to come up with meaningful goals. Take a look at your company vision, mission statement, and core values. If they need tweaking to reflect where your business is today and where you want it to go, start there. Then you can move on to setting some useful long and short term goals.

Big picture planning

Entrepreneurs dream big-and they should! Thinking big can lead to ground breaking products and services that become the foundation of innovative, successful companies. When it comes to goal-setting, thinking big is great, too. But in order to make those big ideas like "increasing market share" or "growing profits" happen, you need to break them down into smaller, specific goals and strategies tied to a budget and timeline. For instance, while your overarching objective may be to "grow profits by 50% by December 31", your smaller goals might include:

• Launching a social media campaign the first week of March to attract 2,500 new prospects by months' end; or
• Increasing total sales by 40% with the opening of an online store by July 1st. The key is to define goals that are measurable and achievable.

Define smaller goals

Thinking through how you'll achieve your larger objectives can be a fun exercise – one you can turn into a group activity, including your entire team. Sit down and discuss what you know about your customers. Review your historical sales data and look over your up-to-date budget and forecasting. With all the relevant information at hand and everyone at the table, you can come up with strategies that align with your company vision, assign deadlines, and get buy-in on what everyone needs to do to see your ideas through to completion.

Final tips

It's worthwhile to take some time to reflect on your personal goals as you think through your business goals. Maybe you've been wanting to get involved in mentoring, improve your networking skills, or attend more conferences. Self-development is, in a sense, professional development – and vice versa, so include them in your plans. Of course, coming up with business goals is just one part of the equation. You'll also need to monitor your progress, noting milestones and sharing your company achievements with your team on a regular basis. Tracking your results will help your employees stay motivated – and it also gives you the chance to adjust your goals and strategies in time to achieve the best possible results by year's end.

The ins and outs of employee performance reviews

Wed, 10 Jul 2019 23:00:00 GMT

When you run a small business, you're involved in your company's sales, accounting, marketing, and human resources, among other things. Being responsible for human resources isn't just about hiring and firing people, although those are large parts of the role. It's also about managing the people who work for you while they work for you.

Conducting regular employee performance reviews is part of managing your workers. While performance reviews may seem daunting, if you have a plan for doing them and focus on rewarding great employees while helping less successful employees achieve more, you'll find the performance reviews not only motivate your employees, they enhance your business and decrease employee turnover.

Here are some tips on conducting productive performance reviews.

Do them frequently and regularly

Once a year isn't regular enough because employees will go for too long without having a sense of how well they're doing, or what areas they can improve in. By the time you get around to discussing an issue, it's likely gone on a long time.

Instead, have more frequent discussions with your employees and set up shorter-term goals. Conducting reviews every two to three months keeps your employees informed about their performance and gives them time to address any feedback you give them. That helps them feel secure in their role. It also gives you a chance to see how employees view your business and make sure you're all on the same page about expectations.

Be present

The majority of workers want to do a good job and want to learn where they can improve. Your performance evaluations are important to them and also to the future of your business. Show your employees you care about them and their growth by being dedicated to those conversations.

Don't check your email, texts, or voice mail while conducting an evaluation. Make sure other employees know not to disturb you during this time. Also, make sure the focus stays on the employee in front of you, not on other employees and their performance, or on office drama. This performance evaluation should be as important to you as it is to your employees.

Be consistent and flexible

Owning a small business means you likely have personal knowledge about some or all of your employees.

That's why it's vital you be consistent in how you evaluate employees. If one employee would receive a special bonus for meeting her sales quota, all employees should receive that bonus. No one should receive special treatment just because you know more about their personal circumstances. That said, it's also important to be flexible. A person whose focus is sales can't be measured on the same scale as someone in marketing. They each contribute differently to your bottom line but still have a vital part in the success of your business. Your reviews need to take into account each employee's role within the company, what their goals are, and how effective they are at getting their job done in their department.

Final thoughts

Performance evaluations are vital for your small business. They help you keep communication with your employees and monitor how well your employees are meeting their goals. Even the best employees have issues that arise once in a while, and conducting a regular performance evaluation helps identify those issues early and develop a plan for addressing them, preventing minor troubles from becoming insurmountable. Finally, by rewarding your great employees during performance evaluations, you can motivate them to achieve their goals and you can decrease turn-over rates.

What to do if you get audited

Sun, 30 Jun 2019 23:00:00 GMT

If you've received an audit letter – an official request by the tax authority to review your accounts and confirm your taxes have been paid to date – don't panic.Prepare.

These four steps will help you get through the process with minimal stress and the best possible outcome.

Respond promptly

If you file your taxes reliably and pay on time, there's a good chance the government tax office contacted you for a spot check.

In this case, all that may be asked is that you provide receipts and answer a few questions.Give the tax office the information they've requested promptly so they can close the file quickly, and you can move on. If an on-site audit is required, you can't avoid the inevitable. Call to confirm the date and request any information the auditor will need to help you prepare.

Responding promptly and cooperatively every step of the way is the best strategy for getting through an audit. Reacting defensively or unprofessionally can invite more probing questions.

Seek professional help

Get in touch with your accountant as soon as an audit has been scheduled for advice and support. And if you've been handling the books on your own, now is the time to consider hiring a tax accountant.

A tax accountant can explain the audit process, help you get your books in order, and offer personalized advice to help you prepare.

You may want to hire a tax lawyer if you have concerns that are beyond an accountant's scope – if, for instance, you have unfiled returns, under-reported income, understated tax liabilities, or if you can't validate all of your expenses for the tax year in question.

Many tax lawyers offer a free consultation and can provide peace of mind by explaining your obligations and rights, and ensuring those rights are protected.

Get organized

An auditor will ask you to provide receipts that prove you qualify for any write offs you've claimed. On the day of the audit, be ready with your paperwork and be prepared to answer any questions.

Being organized and prepared shows you've done your best to report your taxes accurately. If your papers are in good order, and you don't raise any red flags, it's much more likely the auditor will wrap up once the audit's basic requirements are met.

As a word of caution, only provide the auditor with the information they've asked for – no more, no less. Offering more explanation or "proof" in the hope of avoiding further questions may backfire, raising new ones. Stick to specifics.

Pay quickly

In the best possible scenario – your records are in order and you've been conscientious about paying your taxes – an audit won't lead to any unpleasant surprises.

If, however, an auditor finds that you do owe unpaid taxes, unless you have a solid reason to challenge the auditor's findings, pay what you owe immediately.

You'll avoid accruing additional penalties, interest, fees and payments. Perhaps more importantly, you'll be able to put the audit behind you so you can get back to focusing on your business.

Final thoughts

A final word to the wise: if you do try to fight the taxman, before pursuing legal action weigh the cost and benefit. Legal fees can add up quickly, so be sure the amount requested by the auditor - including interest and penalties - is worth what you'll end up paying in legal fees.