RA Business Advisors

Small Business

Key Super Changes 2022

By

Recently legalisation has been passed that aims to make it easier for senior Australian citizens to contribute to their superannuation.  

Head of Superannuation at TSA, Natasha Panagis said that this is welcome news for many older Australians wanting to top up their superannuation savings for retirement. 

The legislation will allow individuals aged 67 to 74 to use the three year bring-forward rules to make a non-concessional contribution to superannuation in the same way someone under the age of 67 can.  

The eligibility age for downsizer contributions has also been reduced from 65 to 60 from 1 July 2022. “The downsizer contribution rules have been a popular strategy for individuals who are 65 or over and this change will allow more people to downsize and contribute their sale proceeds to their superannuation earlier”. 

New legislation has also removed the $450 per month minimum superannuation guarantee (SG) from 1 July 2022. This change will mean many young and/or lower income and part time works will start receiving SG contributions from their employer, regardless of how much they earn per month.  

For more information about these measures, click here.  

Beyond Blue – New Access for Small Business Owners

By

NewAccess is a free and confidential mental health coaching program for small business owners. This program was developed by Beyond Blue to give small business owners the support they need.  

The program uses Low-intensity Cognitive Behavioural Therapy that encourages participants to recognise the way they think, act and feel and break unhelpful thoughts.  

The program goes for 6 sessions, coaches with small business backgrounds will work with you to overcome difficult issues, providing you with practical skills to manage stress and get you back to feeling like yourself. 

Why try NewAccess?

  • It is a free and confidential mental health program, developed by Beyond Blue. 
  • It is designed to support small business owners like you, manage life pressures.
  • You will be working with a coach who will help you through tailored programs.  
  • Structured six session programs 
  • No doctor or medical certificate required 
  • It’s available via phone, video call from Monday to Friday 8am until 8pm.  

What to expect 

In your initial assessment you can expect: 

  1. Talk through your challenges 
  1. Develop a problem statement  
  1. Create a plan based on your needs 

In the remaining 5 sessions with your NewAccess Small Business Owners Coach you can expect to: 

  1. Walk through your plan  
  1. Learn practical skills 
  1. Review your progress 

About the Coaches  

All coaches of the NewAceess for small business owners’ program have a background in small businesses, giving them a relevant understanding of challenges small business owners may face.  

Coaches are trained by the CBT institute to help develop and guide participants through their tailored program.  

Coaches undertake twelve months of training, starting with a six-week intensive that moves to practical learning. 

 

You can register for the program here.

If you wish to find out more information on how the program might help you, click here. 

 

Rewarding Staff for Covid-19 Vaccine

By

It is important to understand your tax and super obligations as an employer, if you have provided rewards to employees for getting the COVID-19 vaccine.  

 

Examples of incentives and rewards include: 

  • Cash payment  
  • Paid leave  
  • Transport to and from the vaccinations
  • Vouchers and gift cards  

 

If you have provided employees with cash payment, you must: 

  • Withhold tax from the payment amount under pay as you go withholding 
  • Include the payment in your employee’s salary/ wages 
  • Include the amount in your employee’s ordinary time earnings (This is to help determine super contributions by employer) 

 

If you have provided paid leave, it will be treated like any other if the leave is granted to:  

  • Get a vaccination 
  • Recover from side effects  

The payments received while on leave are treated as salary/ wages.  

 

Non-cash benefits (vouchers or gift cards) may be reportable fringe benefits. These benefits will need to be included in your tax return. These may be used for: 

  • Determining your eligibility for certain government benefits and concessions, such as certain family assistance payments and tax offsets 
  • Determining your liabilities, such as Medicare levy

 

For any further information visit the Australian Taxation Offices website here.  

You may also like some of our other blogs. 

Notice of Intention (NOI) Due Dates  

New Stapled Superannuation Fund  

How to improve wellbeing in the workplace 

 

New Stapled Superannuation Fund Rules

By

New stapled superannuation fund rules have been implemented from the 1st November 2020. Superannuation stapling is a new measure which was introduced to reform the superannuation system announced by the federal budget 2020/21. 

The imposed measures mean that an individual/ employees superannuation account is stapled to them when they change jobs.  This removes the need to create new superannuation accounts each time a person changes their employment.  

It is important to consider that the new rules require employers to use the “stapled super fund” details for new employees who do not choose a fund. These rules will only apply to new employees who commence after 1st November 2021.  

Typically, an employer must provide an employee with a superannuation standard choice form within 28 days of commencing work. Now, if a new employee does not choose a fund, the employer will be able to check if the employee has an existing stapled fund. As an employer you will be able to do this by logging into ATO online services an accessing the ’stapled superfund request service’.  

If the employee has a stapled fund, the employer will be required to contribute to that specific stapled fund. If an employer contributes funds into their default fund and not the employees stapled fund, they may be subject to the choice shortfall penalty.  

There is no need to request stapled super fund details from the ATO for any existing employees.  

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

For other important updates for small businesses, you can check out some of our other articles: 

 

Director ID Implementation

By

As a part of the recently imposed director ID requirements, company directors are expected to verify their identity by applying for a 15-digit identification number.

This has been implemented by the Australian Business Registry Services (ABRS) to prevent the use of false or fraudulent director identities.

Why do you need a director ID?

Stakeholders are entitled to know the name and certain details of the directors of a company.

It is required by law that directors verify their identity with the Australian government before receiving a director ID. This helps to:

  • Identify and eliminate director involvement in illegal activity.
  • Prevent the use of false or fraudulent director identities.
  • Make it easier to trace directors’ relationships with company’s overtime.

 

How director ID works?

A director ID is a 15-digit identification number given to a director who has verified their identity with the ABRS.

Directors need to apply for their own director ID. It is free to apply.

Directors will only need to apply for one ID. This won’t change even if they change companies, change their name or stop being a director.

 

Who needs to apply for a director ID?

You will require a director ID if you are an eligible officer of a registered Australian body or a company under the Corporations Act 2001 (Corporations Act).

An eligible officer can be classified as a director or someone who conducts a similar role.

If you plan to become a director, you can apply before your appointment.

To be a director under the Corporations Act you must be at least 18 years old.

 

How to apply?

The easiest way to apply for a director ID is through the myGovID app.

Step 1 – Set up myGovID

It is required that you have a myGov ID with a standard or strong identity strength.

If you don’t have a myGovID, download the app here.

Step 2 – Submit documents

You will need information the ATO knows about you in order to apply for your ID. This can include:

  • Tax file number
  • Residential address
  • Bank account details
  • Dividend statement
  • Super account details

Step 3 – Complete application

Once you have completed the first two steps you can login and apply for your director ID.

The application process should not take any more than five minutes.

ATO Debts Worrying You?

By

Debts with the ATO can be daunting and something that many of us prefer not to think about.  We also know that no matter how hard we try to avoid thinking about these debts they never go away.   

Believe it or not, the ATO are extremely supportive of small to medium sized businesses.  They are such a crucial part of our community that assisting them is a priority.  If the debt has come about due to a genuine mistake or through cash flow difficulties or the like, the ATO can assist by setting up Payment Plans in order to help reduce and eliminate the debt.   

When entering a payment plan, the first requirement is that all returns and activity statements are lodged up to the current date.  The payment plan will cover the outstanding amount payable at the time the plan was initiated.  The repayment amount is suggested by you, the business owner, and should be a reasonable amount which fits within your business’s budget at the time.   

Going forward, you should note, the payment plan will not cover any future activity statements or returns.  The new statements or returns will be expected to be paid on or before the due date.   

Whilst the unfavourable cost of business, taxes, will never go away – it is reassuring to know that when we become a little stuck for cash flow, there are options to carry us through.  It is crucial to stay on top of our lodgements though – always keep your activity statements and tax returns lodged, up to date! 

Tips to outsource work for small businesses

By

As a small business owner, you already have so much work. Trying to do everything on your own can be overwhelming. It also prevents you from spending your precious time doing more valuable work that can better grow your business.  

To solve this problem, you can consider outsourcing, or giving your work to someone else outside of your main business. Outsourcing can bring many benefits to your business: cut costs, increase efficiency, reduce risks, speed up processes, etc. Read on for some tips to outsource work while keeping quality work.  

First, understand why you want to outsource work  

Why do you want to outsource work? To save money, add value for clients, gain expertise, help your business grow or simply convenience?  

Having a clear motivation and a goal is helpful to keep track of the quality and measure success.  

Second, identify tasks you’re not good at  

If you spend too much time doing something that you do not excel at, finding an expert to do it would save you a lot of time.   

Additionally, an expert would do the job well, so they will likely bring positive results. In other words, you don’t have to do it or allocate it to an employee and worrying about messing up.  

You will also be able to do the tasks with an economy of scale. For example, if you need help with building a website, you can hire a web agency to help design, build and optimise the website. This will be much more cost-efficient than hiring a new full-time employee or a team on a part-time basis that have all the skills you need to build a website.  

Third, choose the right service provider  

Whether you are looking for someone to complete one job or for a long period, you should handle the hiring process the same way you do for a permanent employee.  

To ensure you get a good quality of work, look for companies or contractors that are highly rated. You should look at their previous experience and achievements, work portfolio/samples, case studies and ratings.   

You should require a paid test project from at least three people/companies. It can be expensive to pay people just for a test, but you will be able to know if they can handle your project before trusting them with real, important work.  

Finally, interview them. If you can, do a face-to-face meeting with them, or conduct a video chat if you can’t. This will help you get to know them individually, make sure you get along and help with a better working relationship.  

Communicate, communicate, communicate  

Now that you’ve chosen the right contractor, you will need to make sure they are aligned with your goals. Communicating regularly is super important to make sure that the contractor is on the right track.   

When the contractor starts the job, you should communicate your expectations and the steps included in the job.   

You should also ask them to update you frequently about the work process. If they don’t do this, follow up.  

Providing detailed feedback would also be effective to ensure that the work is going in the right direction.  

What about data security?  

You will have to give the contractor access to the data that they need. This means that they may need to access to your IT system and confidential data.   

To prevent data theft, you should put necessary security measures and review their compliance certificates in handling client data if they have any.   

You should only provide the contractor with the absolute minimum data necessary for the provider to do the work.  

Conclusion  

Outsourcing work is a good solution to help you get more done in less time. If you prepare well, do research and use the right techniques, outsourcing work will be beneficial for you and your company.  

NEXT STEPS:  

If you need help, don’t hesitate to contact us! Give us a call or book a consultation on 07 3367 0852.   

You can also check out some of our articles:         

What the 2020 Federal Budget means for you

How to improve wellbeing in the workplace 

Xero Document Packs are here for easy, quick and secure e-signing  

Tips to advertise your small business for free    

 

What the 2020 Federal Budget means for you

By

To kickstart the economy after Australia’s massive COVID-19 outbreak, the Federal Government has released a huge spending and tax cuts Budget for 2020. 

Here is our summary of the 2020 Federal Budget and what it means for you. 

  • This appears to be a great Budget for the young, anyone still working and business owners.  
  •  The massive Government spending, tax cuts and wages subsidies will lead to higher spending throughout the economy and ideally greater business investment.  
  • This pushes up confidence and job creation so hopefully more economic growth.  

There are a few key areas we would like to make you aware of. 

I, Business Owners 

Tax Loss “Carry Back” 

If your business is making losses now because of the COVID-19 recession, you can get a tax refund out of the taxes you have paid on profits going back to the 2019 year. And you can use the “carry back loss” trick for the 2021 and 2022 financial years. 

Specifically, a company can carry back losses from the 2020, 2021 and 2022 financial years to offset previously taxed profits in the 2019, 2020 and 2021 financial years. 

However, this only applies to companies. Sole traders, partnerships and trusts won’t be able to access this benefit. 

This tax refund will be available as a choice to be made when a company lodges its 2021 and 2022 Tax Returns. 

Immediate Asset Write Off 

The Government wants businesses to spend big. This measure allows businesses with a turnover of less than $5 billion to claim a full up-front tax deduction for the cost of new business assets. There is no cost cap with this measure – it is not limited like the previous $150,000 instant asset write off that is in place until 31 December 2020. 

This applies to the purchase of capital assets from 6 October 2020 and first used or installed by 30 June 2022. 

This means that if you buy a new truck for $250,000, then you get a 100% tax deduction in year one. 

*Important: Remember, this does NOT mean that you get $250,000 in tax back. You effectively save tax at your marginal tax rate. So, a company with a 27.5% tax rate will save $68,750 in tax if they buy a $250,000 truck. 

For businesses with a turnover under $50 million, this also applies to secondhand assets. 

Small Business Pooling – Immediate Write Off 

Small business entities that have a turnover of less than $10 million using the simplified depreciation rules can claim as an expense the balance of their simplified depreciation pool at the end of the 2021 year. 

This is great because it gives business owners a tax deduction for the full amount of non-depreciated assets they have purchased in prior years. 

JobMaker Hiring Credit 

The JobMaker hiring credit will be available to eligible employers over 12 months from 7 October 2020 for each additional new job they create for an eligible employee. 

Employers will receive $200 a week for hiring someone aged 16 to 29 and $100 a week for taking on someone aged 30 to 35. 

The JobMaker hiring credit will be paid quarterly in arrears and will be available for 12 months from the date of employment with a maximum amount of $10,400 per additional new position created. 

To be eligible, the employee will need to have worked for a minimum of 20 hours per week averaged over a quarter, and have received the JobSeeker Payment, Youth Allowance or Parenting Payment for at least one month out of the three months prior to when they are employed. 

Employers will need to prove that the new employee will increase overall employee headcount and payroll. 

Boosting Apprenticeship Commencements 

A business that takes on a new or recommencing Australian apprentice will be eligible for a 50% wage subsidy. The subsidy is paid in arrears and is available for wages paid from 5 October 2020 to 30 September 2020, up to a maximum amount of $7,000 per quarter. 

FBT Changes

A few FBT changes have been announced, including removal of FBT on car parking and portable electronic devices from 1 April 2021, and on retraining and reskilling costs for employees from 2 October 2020. 

R&D Tax Incentive Changes 

The Government has backflipped on previously proposed cuts to research and development tax incentives.  

For small companies (turnover less than $20 million) the refundable R&D tax offset will be set at 18.5% above the company tax rate and there won’t be any cap on annual cash refunds. 

The R&D laws are quite complex, so please feel free to contact us for further information if R&D is something that your business would like to claim. 

II, Individuals 

Personal Tax Cuts 

To kick start the economy, the Government is introducing tax cuts totaling $50 billion backdated to 1 July 2020. 

There are 2 key parts to it. An offset which will get paid in a lump sum after July next year when you lodge your 2021 Tax Return, and an immediate reduction in the tax taken from your wages as soon as this legislation passes Parliament. 

In both cases there is nothing you need to do and no extra forms to fill out at tax time – the adjustments will happen automatically. 

Here’s what tax cuts you’ll get: 

The average teacher’s wage is around $90,000, so a couple who both teach can expect a tax cut of up to $3,060. That’s massive! The big question is if people will spend these tax cuts or reduce their home mortgages and save them. 

$250 Economic Support Payments 

A payment of $250 in December 2020 and another payment of $250 in March 2021 will be made to individuals receiving Age or other pensions and health care card holders. These payments will be exempt from tax and will not count as income support for any income support payments. 

Superannuation – “Stapling” of Accounts 

This is something that really makes sense. Under this measure, an individual’s super account will be “stapled” to them as they change jobs. New super accounts will no longer be automatically created every time someone starts a new job. 

Capital Gains Tax removed from “Granny Flats” 

Currently, there is a risk of capital gains tax (CGT) applying if you sell your family home and if you have entered a formal granny flat arrangement with an elderly parent or relative. The Budget has now included a measure where CGT will not apply to this. 

NEXT STEPS: If you have any questions about how the 2020 Federal Budget affects you – please contact us and one of our expert accountants will help you!

How to improve wellbeing in the workplace

By

Let’s face it, most people spend the majority of their waking time at work. Stress, long hours of staring at the screen, tough targets, and a poor work-life balance can have a huge effect on people’s physical and mental health. Thus, it’s crucial for companies to take staff wellbeing seriously. Furthermore, research has shown that happy and healthy employees improve overall team productivity. So how can businesses promote wellbeing in the workplace effectively?   

Here are some ideas for you to get started:  

1, Create a productive environment  

Design an area with seating and tables where staff can gather and collaborate with each other is a good idea. You should also install some good lighting, colors, and plants to prevent fatigue and make the office more inspiring.  

2, Encourage staff to exercise  

You can encourage staff to walk or bike to work. Encouraging them to take walks around the building during breaks is also a good idea. Another way to motivate employees to exercise is to give them discounts to a local gym. This will also let people socialize outside of work as well.  

3, Provide healthy office snacks  

Instead of having soft drinks and sugar-loaded snacks in the office fridge and pantry, you can offer baskets of fresh fruit and healthy snacks. This will encourage employees to eat healthier and improve their productivity.  

4, Share healthy meals photos, and recipes  

You can share healthy meal photos and recipe ideas to your team through the company group chat or emails to encourage staff to eat healthily. This will also build team spirit and give them inspirations to diversify their meals.  

5, Encourage communication  

The communication of wellbeing needs at work is important but often overlooked. Many people feel uncomfortable about talking about how they feel about work and ashamed to show that they need support.   

Communication is the key to receiving help and solving the problem. Employers are responsible for supporting staff wellbeing, but they need to know the situation to do it. Therefore, if you encourage these conversations (e.g. offer one-to-one sessions), you can be more aware of what employees go through and how to improve it. This will also improve openness in the workplace and cultivate a company culture of acceptance. 

 

NEXT STEPS:     

 If you need help, don’t hesitate to contact us! Give us a call or book a consultation on 07 3367 0852.  

 You can also check out some of our articles:        

Xero Document Packs are here for easy, quick and secure e-signing 

Tips to advertise your small business for free   

Unhealthy remote work habits to avoid   

Effective ways to increase your market share   

Opportunities are opening up during Coronavirus crisis

By

While many Australians are losing their jobs due to the coronavirus outbreak, some businesses and industries are looking for new workers. Although hospitality and retail industries are facing a huge risk of collapse because of social distancing policies to stop the virus from spreading, many jobs are being created. 

For example, North Queensland’s resources sector is creating many jobs because companies are expanding during the pandemic. Sun Metals in Townsville is expecting to create 350 construction jobs by about October, and 100 ongoing positions as construction finishes in the second quarter of 2021. Ravenswood Gold started hiring contractors and 150 permanent employees it needs by mid-2021 because it is looking to extend the mine’s life with a large-scale open pit at Ravenswood, south-west of Townsville. Similarly, in Central Queensland, BHP has recently put on over 100 apprentices in Mackay and Pembroke has received conditional approval to build a new coking-coal mine in the Bowen Basin, which promises to create new jobs soon.  

The central Queensland town of Emerald has a shortage of important migrant workers because of COVID-19 travel restrictions. The return workers who would have arrived in April could not come back, so 2PH Farms in Emerald, one of the largest privately-owned mandarin orchards in the Southern Hemisphere, hired 100 people from within Australia to fill the essential jobs.  

Health care and social assistance could be some of the most stable job sectors ahead. Researchers believe healthcare and social assistance are sectors likely to remain stable after coronavirus. The reason why jobs are stable in this field is that the government provides funding and support to keep these jobs going. Furthermore, data from the federal government shows that health care and social assistance were predicted to grow by 250,000 jobs by 2023. With an aging population and a reduced number of the migrant workforce due to the coronavirus outbreak, new jobs are very likely to be created in this field.  

The pandemic could be an opportunity for rural economies to develop, as regional areas generally have problems attracting skilled labor and as a result, employ backpackers or migrant workers. But these sources of labor are not widely available at the moment due to travel restrictions, so some opportunities are opening in regional areas and are attracting people from other parts of Australia. The new ways for people to work remotely from the CBD office towers may also enable a population shift to the regions. 

We also expect to see small business opportunities pop up as the whole economy undergoes massive change. Be on the lookout for new ways of working, new products/services or other opportunities that could maybe just turn the pandemic into an opportunity for you and your business to prosper and grow. 

Helping you and your business reach your goals and provide you the lifestyle you desire is what we do.  So make sure you talk to us when you do find that great opportunity.