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Suite 8A, Level 3 Matlow Place 19 Birtwill Street Coolum Beach Qld 4573
25
Mar 2024

2024 Tax Planning Tips and Strategies

It’s 2024 Tax Planning Tips and Strategies time.

We love this time of year because we’re catching up with our clients, reconnecting, exploring plans together and discussing 2024 Tax Planning Tips and Strategies.

Everyone has different goals when it comes to tax planning. If you’re planning to refinance in the next year or so, or even sell your business, it’s likely we’ll put our focus into showing healthy profits and balance sheet.  If you want to minimise tax then we’ll focus on realising the very best tax rate across your group.

Our usual fee for tax planning ranges from $800 to $1,900 depending on your circumstance. The value you receive from tax planning well exceeds the cost or we don’t go ahead. Feel free to contact us or call the office on (07) 5446 1226 to discuss your needs.

>>> Click here for our tax planning strategies and tips

Why do tax planning?

  • Save on tax by taking strategic action before 30 June.
  • Position yourself to achieve your upcoming goals & plans.
  • Free up cash flow. Remember, if you end up with a refund once your tax returns are lodged, then you’ve paid too much tax too early in the year. Tax planning helps you manage that.
  • Get some feedback on the quality of your record keeping and how to streamline processes.
  • Gives Trustees peace of mind by ensuring they’re signing off on a Trust Distribution Resolution that’s right for the group.

Tax Planning Tips

If you’re taking more of a DIY approach, then take a look at our tax planning strategies and tips here which is full of general tax planning tips to help you save on tax.

Structure Structure Structure

The biggest opportunity to have some control over tax is the decision around what structure to run your business in.  This compliments 2024 Tax Planning Tips and Strategies.

Most successful businesses are not operated under your individual ABN because the individual is liable for all the business risks personally. If you have equity in your home or other significant assets, then all that is up for grabs if your business is being attacked.

Structuring via Companies and Trusts (and more) can provide benefits for the family.

Reviewing and/or setting up a structure before 30 June allows for a fresh start on 1 July. Call us know if you wish to investigate this option.

>>> Click here for our tax planning strategies and tips

Posted by | Posted in Business Planning, My Accountant Qld, Tax Planning |
15
Nov 2021

Directors ID

Company Directors need to know about the new Director Identification Number (“Director ID”).

Put simply, Company Directors will need to apply for their Director ID themselves using their myGovID.  This is an extra layer of information that the Australian Business Registry Service will use to catch fraud, trace relationships, and identify unlawful director activity.

The Australian Business Registry Services (ABRS) is a new service which will bring together the Australian Business Register (ABR) and over 30 Australian Securities and Investments Commission (ASIC) registers.

In other words, the government looks like it’s combining databases to keep a better eye on company directors and businesses in general. Big brother is watching!

 

Resources to help you

More information about Director ID is below.  You can also find more information and start to apply at the ABRS website here.

Take a look at more information and the official ABRS video here.

Key points to note:

  • You will need to apply for your own Director ID – we cannot do this for you.
  • You can apply from 1 November 2021.
  • If we look after your company’s ASIC affairs we will check in with you to ensure you have a Directors ID when we do your company’s next Annual Review. But only you can apply.
  • You’ll need to keep your own personal information up to date – if you move house you’ll need to advise ABRS within 7 days and let us know so that we can advise ASIC within 28 on behalf of your company (or companies).

If you have any questions, feel free to let us know.

But if you have questions about the application process, you’re best bet is to call ABRS directly – details are here.

What is a Director ID?

A director ID is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with the government.

Who needs to apply?

If you want to become a director or are already one, you’ll need a director ID.

You need a director ID if you’re a director of a company or a corporate trustee, for example, a company trustee of a self-managed super fund or a company trustee of a discretionary trust.

You don’t need a director ID if you’re a company secretary but not a director or if you are running a business as a sole trader or partnership. You also don’t need one if you’re referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act.

Apply once – keep forever

When must you apply?

When you must apply for your director ID depends on the date you become a director.

  • If you became a director on or before 31 October 2021 you must apply by 30 November 2022
  • If you become a director between 1 November 2021 and 4 April 2022 you must apply within 28 days of appointment
  • If you become a director from 5 April 2022 you must apply before you’re appointed a Director

How to apply

We can’t apply on your behalf. You need to do this yourself using your myGovID.
• Step 1 – Set up myGovID with the ATO
• Step 2 – Gather your documents
• Step 3 – Complete your application

IMPORTANT! It’s important to gather the right documents before you start. You’ll lock yourself out for an hour if you can’t correctly input details from two types of documents.

As at the date of writing this update, you can use any TWO of the following documents for Step 2:

  • Bank account needs to be a bank account you’ve received a tax refund into or that you’ve earned interest on and reported on your tax return
  • A copy of your Notice Of Assessment from the last two years
  • Details of a superannuation account statement from the last five years
  • Dividend statement from the last two years
  • Use a Centrelink payment summary issued in the last two years.
  • Use a PAYG payment summary issued in the last two years and NOT the Income Statement most employees are used to receiving now. If you don’t have a PAYG payment summary issued in the last two years, you will need to select a different document.

Get them together before you start – if you try to wing it then you may end up locking yourself out of the process for an hour!

 

Once you have your Director ID

When you receive your director ID, you need to pass it on to your company to update the company register.

If we look after your company ASIC affairs you will need to provide the ID number to us so that we can update the company register for you.

 

Keep your details up to date

You must notify your company within seven (7) days when your personal details change. For instance, your name, your role or your address.

In turn, your company must notify ASIC of the change within 28 days to avoid late fees.

If you tell ASIC of your change one month late then the ASIC fine is $83, and more than one month late an additional $344 fine applies.

 

Protecting your identity

Your director ID is a bit like your Tax File Number (‘TFN’); it confirms your identity and traces your relationships to companies.

There are strict rules around how director IDs can be used. For now, your director ID will not be searchable by the public.

 

Linking your Director ID to the Companies you are connected to

Currently there is no requirement to provide your director ID to ASIC or to the companies you’re a director of. The ASIC companies register will be transferred to the ABRS, expected in September 2023. This is when your director ID will need to be linked to the companies you’re a director of. We’ll keep you up to date with changes. For now, you should continue to use the ASIC registers as you currently do.

ASIC have more information about Director ID on their website here and how Director IDs will be transitioned to ASIC Company Registers.

Posted by | Posted in Highlight, My Accountant Qld, Tax Planning |
15
Nov 2021

Superannuation Stapling

Superannuation Stapling – new rules for employers

‘Superannuation stapling’ or ‘stapled super’ is a new measure that was introduced as part of a package of reforms to the superannuation system announced in the 2020/21 Federal Budget.

Under this measure, an existing superannuation account is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs. This avoids the creation of a new superannuation account each time a person changes their employment.

Broadly, the new rules require employers to use the ‘stapled super fund’ details (instead of the employer’s default fund) for new employees who do not choose a fund. These changes only apply to new employees who commence work on or after 1 November 2021 (i.e., existing employees are not affected by the new rules).

Employers must generally provide new employees with a superannuation Standard Choice Form within 28 days of commencing work.

From 1 November 2021, if a new employee does not choose a fund, then the employer will need to check if the employee has an existing stapled fund by logging into ATO online services and accessing the ‘stapled super fund request service’.

The ATO has advised that once all the required information is provided and the request is made, the result of the stapled super fund request should be available on-screen within minutes.

Where the employee has a stapled fund, the employer will be required to contribute to the employee’s stapled fund. If an employer makes contributions into their default fund for a new employee rather than checking with the ATO to see if the employee has a stapled super fund, then they may be subject to the choice shortfall penalty.

Importantly, there is no need to request stapled super fund details from the ATO for:

  • existing employees (i.e., those who commenced work before 1 November 2021); or
  • new employees (who commence work on or after 1 November 2021) and have chosen a superannuation fund.

Employees will also be notified by the ATO of the stapled super fund request made in relation to them and will be advised of the details provided by the ATO to the employer. The ATO will be monitoring the ‘stapled super fund request service’ to ensure that employers are using it appropriately and making genuine requests for stapled super fund details. Employers who use the service incorrectly (e.g., to request information for employees who started work before 1 November 2021) may have their access to the service removed.

More information about an employer’s obligations with regards to stapled super funds can be found here on the ATO’s website.

Thank you to National Tax & Accountants’ Association Ltd for providing us with this information to share.  Find them at www.ntaa.com.au

Posted by | Posted in Business Planning, Highlight |
12
Dec 2018

Christmas & Tax

Are you planning your staff Christmas Party?

Understand the tax implications so that you don’t pay tax unnecessarily.

The big one is Fringe Benefits Tax (FBT). This is a tax to the employer when providing benefits to employees in addition to their salary or wage.  The Fringe Benefits Tax rate is a whopping 47% of the the fringe benefits taxable value of the benefit provided.

The ability to claim GST on expenditure or an income tax deduction also varies depending on how benefits are provided.

That is, Christmas parties ON your work premises have different tax consequences than Christmas parties held AWAY from your work premises.   Christmas Gifts are a different case again.

To keep things simple, take a look at the tables below.

If you venture into FBT territory, we can help you quantify your exposure and offer options to bring the taxable value down to a minimal or NIL level.

FBT GST Income Tax consequences for off premises christmas parties

FBT GST Income Tax consequences for on premises christmas parties

FBT GST Income Tax consequences for Christmas Gifts

Disclaimer: The information we have provided you is purely factual in nature and does not take account of your personal objectives, situation or needs. The information is objectively ascertainable and, therefore, does not constitute advice. If you require personal advice you should consult an qualified tax agent (like us!).

Liability limited by a scheme approved under Professional Standards Legislation.

Posted by | Posted in Highlight, Tax Planning |
23
Mar 2018

New Rules for Exempt Vehicles

31 March is the last day of the FBT year.

If you claim your vehicle as a business expense then there’s some changes which require you to take action before then.

What’s the big deal?

The ATO are cracking down on exempt car and residual benefits. This catches any ute, dual cab ute or van provided to employees (including business owners) for use in a business.

They have now issued clear rules that taxpayers should follow to ensure they will not be targeted for audit, especially if claiming 100% business use. This new Practical Compliance Guideline PCG 2018/3 will apply to this FBT year & onwards.

Essentially you do not have to keep a log book to support the business use of your vehicle if you meet ALL these requirements:

(a) the vehicle is provided to perform work duties

(b) employer takes all reasonable steps to limit private use of the vehicle and have measures in place to monitor such use

(c) the vehicle has no non-business accessories

(d) the vehicle had a GST-inclusive value less than the luxury car tax threshold at the time the vehicle was acquired (see what they were here; for 2017-18 it’s $65,094 for vehicles with fuel consumption greater than 7l per 100km)

(e) the vehicle is not provided as part of a salary packaging arrangement and the employee cannot elect to receive additional remuneration in lieu of the use of the vehicle, and your employee uses the vehicle to travel:

a. between their home and their place of work and any diversion adds no more than 2km to the ordinary length of that trip
b. no more than 750km in total for each FBT year for multiple journeys taken for a wholly private purpose, and
c. no single, return journey for a wholly private purpose exceeds 200km.

What do I need to do about this?

1. If you meet every condition above, then you do not need to do anything.

2. If you do not meet every condition above, then you should keep a log book for a continuous 12 week period to support your business use claim. More info about logbooks here.

You can purchase a paper log book from Officeworks or Newsagents, or you can use the ATO myDeductions app

Start your log book BEFORE 31 March & continue to keep a logbook into the next year so it covers the required 12 weeks

If you establish your business-use percentage using a logbook from an earlier year, you must keep that logbook and maintain odometer readings for 1 April and 31 March the following year

For exempt vehicles, travel from home to place of work is considered BUSINESS use. This is different from cars generally, where travel from home to place of work is considered PRIVATE.

3. In addition to 1 or 2, please download & fill in the vehicle summary & return it to our office by 13 April.  There’s a completed example of the form here.

The Practical Compliance Guideline PCG 2018/3 is quite easy to read, and contains simple examples to help understand these concepts & apply them practically.

** This information was first published in March 2018, however, it’s still relevant for 2019.  If you download the form to provide us with your vehicle summary you’ll see that it’s for the 2018 FBT year. If you need to do this form for 2019 (which runs from 1 April 2018 – 31 March 2019) or for 2020 (which runs from 1 April 2019 – 31 March 2020), then please change the dates.  We’ll provide a more elegant form in the future.**

Refresher – what’s FBT (or Fringe Benefits Tax)?

Fringe benefits tax (FBT) is a tax employers pay on certain benefits they provide to their employees – including their employees’ family or other associates. If you are a director of a company or trust, benefits you receive may be subject to FBT.

FBT is separate to income tax and is calculated on the taxable value of the fringe benefits provided. You can learn more here.

Normally, our clients don’t need to lodge an FBT return because we calculate an FBT Reimbursement to eliminate the value of any benefit received. That is, we raise an FBT Reimbursement for private use of the business vehicle.

 

 

Posted by | Posted in My Accountant Qld |
8
Jan 2018

Business New Year’s Resolutions

New Year’s resolutions are easy to make; the hard part is sticking with them.  Business New Year’s resolutions are no different.

Here are our tips to freshen up your business and renew your enthusiasm for getting your business into shape.

Review your budget – have you stuck to it so far?

Of course you did your business budget back when the financial year started in July, but have you looked at it since? Usually a budget will have considered the changes you wish to make, the KPI’s you wanted to achieve, and targets which aid you in achieving the goal you’ve set.

Now is the time  to look at how you’re actually travelling, and make any adjustments to what you are doing so that you can build on wins or help turn around any losses.

Check health of cash flow – do you need to plan ahead?

December, January &  February are often the months that cause a heavy toll on business cash flow. Generally staff enjoy celebrations and time off so cash flow feels the extra pressure of holiday payments, bonuses, entertainment, as well as all the usual expenses like GST, PAYG, and superannuation outflows.

You may be lucky enough to be in an industry which is at it’s highest cash flow inflows at this time, and if not, you had to plan for it (and may still be doing so). Many of our clients have separate bank accounts where they park cash regularly to cover GST, PAYG, and superannuation so they’re not caught short when these payments are due.

Improve your understanding of your own numbers

We strongly recommend that you learn to understand your Balance Sheet as well as your Profit & Loss Statement (P&L).  Your business is much more than the money you have in your bank account, and ideally business decisions should not be based on cash flow alone.

All your assets, liabilities & equity play a part in making smart strategic decisions, and it’s so important you have the knowledge to check information on these pieces of paper is accurate before you commit yourself to a course of action.

Get your time back

You may have asked yourself “where did last year go?”.  We did too. Many businesses are now taking advantage of new technology and online solutions to make routine tasks quick & easy. The result is that transactions & decisions taking place in the world around you are speeding up, whether or not you join in. Your competitors probably already are.

Give yourself back the time to focus on what will let you achieve your budget & cash flow targets. Avoid the pressure cooker from being out of control.

You may have balked at the cost of an online solution in the past; however, the true cost of not automating is probably much higher. Now is the time to check in on whether you should look at an online accounting solution like Xero which links in to so many apps to make your life simpler, cash flow faster and reporting more accurate.

 

If you would like our help with budgeting (creation or review), cash flow or online accounting solutions, just give us a call on (07) 5446 1226.

 

 

Posted by | Posted in Inspiration, My Accountant Qld |
26
Sep 2017

Is time management important to my profitable productive business?

For service businesses it’s easy to answer with a resounding YES!

But what about businesses that sell products?

Proper time management implies people spend time on profitable productive tasks.

More time spent on profitable productive tasks means you’ll get close to your goal.

For service based businesses this means that the people with the expertise spend most of their time doing work that results in revenue and profit.  The same applies to businesses which mostly sell products.

How to determine where you’re at

  1. List all the “service” tasks that have to be done in the business that are not necessarily customer facing
  2. Check you’ve included as many as you can. Think about administrative tasks like bookkeeping or payroll, through to the supply chain & logistics of sourcing and delivering your product.
  3. Determine if these are being done efficiently by people with the appropriate level of expertise. Ask yourself “is this task profitable productive for my business”.

What to do next

It’s easy, especially if you take a lazy approach.  Do what gives you the least path of resistance.

  1. Choose one task you’ve identified as not being done well and/or by the wrong people.  Think of ways to do this differently & be creative. Just brainstorm. You might not be able to access all these options today, but might be able to later down the track.
  2. Then choose the easiest option to implement now & go implement.

Thoughts about your options

Outsource wisely

You can outsource tasks to your staff or to external consultants. Don’t make your Sales Manager print & bind the proposal; give this task to your receptionist. Your Sales Manager should be focusing on leads, prospects & customers. Equally as the business owner you should lead the critical areas of your business, not take time unjamming copiers or running payroll.

Use technology

Don’t get bogged down in your business; keep an eye on the outside world & see how things are changing. Use time saving technology to give back time to you and your staff for more profitable activities.

Analyse Cost vs Benefit – before you implement

Run the numbers to understand the cost and the potential profit drivers to get the most from the change.   Read more about this topic here.

We can certainly assist you in this area – just give us a ring.

Posted by | Posted in Business Planning |
26
Sep 2017

Getting the best return from your bottom line

Do you really know whether you’re getting the best return from your business?

You may be satisfied by the way your business operates as well as the money you earn from it.   But do you really know whether or not you are getting the best return from the investment you’re making?

Don’t just consider the money you’ve invested in the business when answering this question.  Or the money you are receiving from it.  Consider the time you and your family spend attending to business related tasks. As well as all the other “little” things that eat into your lifestyle.

Why is this important?

The investment you’ve made in your business (money, sweat and possibly tears) is an important part of your overall wealth strategy. It is up there with owning your own home, having money in super for retirement, and holding investments like shares or rental property.

If your business has the right amount of assets generating an appropriate return on those assets, then

  1. you’re earning the best money (profit) you’re able to earn on that investment
  2. you’ll have an asset that you can sell to fund another “thing”; like a different investment or to help put towards your retirement

You can have an opinion on whether or not you think the business is doing OK.  But to determine if you REALLY are doing well you need to do some analysis.

Optimise your return

You should understand whether or not you’re achieving the best return for all the capital you’ve invested in the business. This is what makes your business good, bad or so-so.

If the cost of running your business is eating into your profit (and cash) without you knowing, then it may be that simple tweaks will earn you more profit (and cash) without requiring you to make massive changes to the status quo.

How?

There are various ways to do this depending on your business. Yes, this step takes a bit of analysis & focussed thought.

It may be:

  • analysing “Return On Investment”
  • examining performance over time
  • bench marking to your industry

Then what?

Once you have done your analysis, you’ll be able to create options to improve your profitability.

An easy way to get started is to see where the “low hanging fruit” is; that is, what is the simplest, quickest, easiest thing to change which will yield a result that brings you one step closer to your goal.

If you do this process regularly,  and implement a simple change each time, then you can make massive improvements to your profitability.

Need help?

We can help you understand where your business stands.

We can help you compare your unique historical trends as well as comparing your result to the rest of the world.

This is a great basis for discussion around getting the best return for your business.

Posted by | Posted in Business Planning |
21
Sep 2017

Decisions you make in your business

Are your investment decisions working for you? The key to enlightenment is to look at your results. But first let’s get back to basics.

When you are a business owner you can make investment decisions whether you’re aware of making that decision or not.

Lifestyle   The amount of time you use in your day to attend to tasks in your business, as well as the amount of “bleed” you accept all impact your lifestyle, your contentment and your well being. By “bleed” we mean the little things that you do in your own time that somehow need to be done but not intended to do which impact your me time (such as returning that phone call just as the first guests arrive to your BBQ).

Capital   In very simple terms this is the investment you’ve made in the business where you’ve contributed to the business in some way. This might be money you’ve put in over time, the purchase price you paid for the business, the earnings you’ve forfeited to invest further into your business.

Financing   This is the method you’re using to put that Capital into the business. If you’ve not gone on holiday to use the funds for a gizmo for the business, then you’ve funded that transaction and contributed equity to your business (you sacrificed personal cash flows for the business). If your bank gave you the money for that gizmo, then you’ve increased debt in the business and not equity, probably to ease your cash flow. In this case you’re potentially building equity over time, and betting that your investment will yield greater returns than it costs.

Have you considered the investment decisions you’re making and the impact they are having?

What dice are you rolling each day? Better choices are made when you know and are OK with how they roll. Take time out to examine how things stand for you.

Lifestyle   Is your lifestyle satisfactory? Do you get time out from your business? Are you confident choices made while you’re not there are in line with your plans?

Capital   Are you satisfied that you are getting the returns from your capital investments?

Financing   Are in control of your cash flow and satisfied with what’s happening?

If you don’t answer these questions with a 100% positive YES! then you should take some time out to consider your options to improve things.

An interesting challenge is to determine how much money your business generates for you for each hour you invest. If you include all that “bleed” time you will get a clearer view of the real cost to you.

If you have decided you want to improve your situation you don’t have to go it alone. We can help you analyse what’s happening, help you identify options to help you find the best solution for you.

Posted by | Posted in Business Planning |
21
Sep 2017

Planning with purpose

If your business is your “retirement fund” or your key to a more passive income (that is, you don’t need to be there 100% of the time to make it work), then it’s essential you put some thought into how the business operates now and where it should head in the future.

If you want to take your business to the next level then proactively thinking about your plan will give you the key to taking advantage of opportunities that come your way.

We all know that plans don’t always work out the way you imagined they would; however the process of thinking through potential scenarios means that you are much more prepared to make the best decision for you in the moment that opportunities arise.

When you develop those scenarios and plans there are a few aspects you should consider.

Practicality. This is the actual execution of the plan. Do you have the people, skills, knowledge & resources you need?

Balance Sheet effect. How the plan impacts on your assets & liabilities. Does the plan build strength so that you achieve a return on your investment, get financier support and so on?

P&L effect. How the plan affects your business income, expenses, profitability and bottom line. What line items are affected by the plan and what might you need to do?

Cash flow effect. How the plan impacts your cash flow. Often there’s an upfront cost to recoup over time; how can you best manage that for you?

You’re the expert in the Practicality aspect. We’d love to be your sounding board in the other aspects so that you are clear on the ramifications & can plan your actions to get the best result for you.

Your “retirement fund” will love you for it!

Posted by | Posted in Business Planning |
Our best email
reception@myaccountantqld.com.au
Phone us on
(07) 5446 1226
Visit us at
Level 3, Suite 8A Matlow Place, 19 Birtwill Street Coolum Beach Qld 4573