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Building credibility is important for small businesses to build trust and encourage more customers to buy your product/service. Check out these five killer tactics to set yourself apart and establish your business as trustworthy.  

1. Show Your Achievements  

Showing your wins is super important to establish your credibility. You should recognise and celebrate your achievements, from helping clients achieve goals to winning an award.   

Post these achievements on social media, put in in an email blast, include in on your website. If you have a trophy or plaque, showcase that in your office/store.   

When you tell everyone that your business achieved something, they are likely to think positively about your business. It also encourages potential customers to make a buying decision as well.   

2. Publish detailed case studies  

A super easy way to build credibility is to publish case studies of some clients that you have worked with.   

A detailed case study will be effective to convince readers that you are skilled in what you do and have knowledge in the related industry. This will help boost your business’ credibility.  

You should go into details of what you have done for the client. Outline the problem, how you solved it and the achievements. Photos and videos are great to demonstrate this as well.  

And to let everyone read it, make sure you share it on social media and email campaigns. The case study section should be easily accessible from the home page of your website as well.  

3. Highlight your uniqueness  

What do you offer than stands out from your competitors? What sets you different? What is one thing that your customers need but no one offers it yet?  

If you highlight your uniqueness and make your business stand out, your audience will be likely to choose you rather than your competitors.   

You should also convince your customers why they should choose you; this can be done effectively with the use of case studies highlighted in (2).  

4. Share your knowledge  

When you share your knowledge on platforms such as social media, website and email campaigns, you will convince your audience that you have solid knowledge in the industry and is a thought leader.   

Give as much as you possibly can, whenever you can – within reason and within your limit of what is comfortable for you.   

You can simply share it on social platforms, or build a landing page on your website that provides an ebook or video series to customers who sign up to your newsletter. This way, you will get some leads and build credibility at the same time.  

5. Be a featured guest  

When you become a featured guest on podcasts, summits, interviews, and other websites as a guest poster, you are building credibility for yourself and business.   

Why? Because it shows that the host respect you, your business and what you have to say. It also helps reach more people and build brand awareness as well.  

What are some ways that you use to build credibility? Let us know in the comment below!  

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 

Tips to advertise your small business for free    

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!

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. 

Not only did we celebrate a new year a couple of weeks ago, but we welcomed a new decade.  It is at this time we find ourselves not only reflecting on the year that has just been, we are also reflecting on the decade that has just gone.

At the beginning of the last decade, our office operated quite differently. Looking back at 2010, we were just beginning to implement Xero and our processes were drastically changing into electronic form.  All our correspondence was via snail mail, email was used sporadically to converse with clients; and working away from our desk was next to impossible due to all our files & software being on a server which we could only use via ‘Remote Access’.

This last decade has drastically improved our processes.  So much so, that we would not want to return to where we used to be.  Now, we are very proud Gold Xero Partners, well and truly using and loving our beautiful accounting software, all our correspondence is via email allowing instantaneous contact between ourselves and our clients, and all our files and software are ‘in the clouds’ which allows us to work away from our desks easily, and in turn, improving our work/life balance.

Trying to imagine where we will be at the beginning of next decade is mind boggling, but exciting!

For many people a new decade brings with it an increased sense of ‘New Beginning’ and starting with a ‘Clean Slate’.  In small business, often the break between Christmas and New Year allows us time to evaluate the past and consider how we can tackle the coming year with improved efficiencies.  How can we make our business grow, be more successful and find a better work/life balance.  Perhaps, if you haven’t made the jump yet, this is your year to improve your data processing and bookkeeping by jumping onto Xero.  It will most definitely not be a change you regret!  For those of you who do use Xero, perhaps there is an add-on which you have been considering implementing – this is the time to jump on board.  While you are feeling refreshed to tackle the year ahead, get the ball rolling, it’s the best time to implement a change.

From all of us at RA Business Advisors, we wish you a very successful year ahead!!

Company Directors can be held personally liable for a company’s unpaid employee superannuation. 

Any unpaid superannuation is payable to the ATO after three months as a Superannuation Guarantee Charge (SGC). The ATO can issue a Director Penalty Notice for unpaid GSC and the Company Director’s personal assets can be sold to pay for the debts in the penalty notice. In other words, Company Directors can be held personally liable for the company’s unpaid superannuation. 

If a company fails to pay superannuation, but it lodges its SGC Statements by the SGC Statement due dates, the ATO can issue a Director Penalty Notice to the company’s directors. The Directors can become liable to the ATO for the amount of SGC claimed in the Director Penalty Notice. Directors can avoid personal liability if the SGC is paid by the company. 

If a company fails to pay superannuation and it also fails to lodge SGC statements by the SGC Statement due dates, the Directors are automatically personally liable for unpaid superannuation. In these circumstances:

• The ATO can estimate unpaid superannuation if it chooses 
• The ATO can and will issue a Director Penalty Notice to recover superannuation from the Directors 
• Placing the company in liquidation or voluntary administration will not avoid liability for the Directors 
• The ATO can and will issue Director Penalty Notice after a company is already in liquidation or voluntary administration 

In May 2019, new legislation was passed to change the date upon which company directors become automatically liable for SGC amounts. The new date is the date which SGC Statements are due, which are: 

If your company cannot pay superannuation, the best thing to do to avoid liability is to lodge SGC Statements within three months of them being due. If this is done, then you will be able to avoid liability under any Director Penalty Notice issued by placing your company in liquidation, if this is the best option available. The ATO will also not be able to issue you with a Director Penalty Notice after your company has been placed in liquidation. 

But if your company is unable to pay superannuation within three months of it being due, then it probably has some underlying financial problems and you should see advice regarding the company’s circumstances, strategies which may be put in place and risks to you as a Director personally. 

Contact our expert Accountants for assistance if you have any questions about this information or if you need help in working out what to do if you have unpaid superannuation in your company. Don’t leave this too late. If you do, then your personal assets will be at risk! 

‘Tis the season to be jolly!  

Fringe Benefits Tax (FBT) can be confusing, especially when there is no separate FBT category for Christmas parties. You may encounter different circumstances when providing these parties for your team and preparing gifts. We understand your struggles and have simplified things for you. 

1, Christmas Parties and Gifts for staffs 

If you are not a tax-exempt organisation and do not use the 50-50 split method for meal entertainment, the following explanations may help you determine whether there are FBT implications arising from a Christmas party. 

• Exempt Property Benefits:

  The costs associated with Christmas parties (such as food and drink) are exempt from FBT if they are provided on a working day, on your business premises and consumed by current employees. These costs are an “Exempt Property Benefit”. The property benefit exemption is only available for employees. 

• Exempt Benefits – Minor Benefits:

  The provision of a Christmas party to an employee may be a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met. The benefit provided to an associate of the employee may also be a minor benefit and exempt if the cost of the party for each associate of an employee is less than $300. The threshold of less than $300 applies to each benefit provided, not to the total value of all associated benefits. 

• Gifts provided to employees at a Christmas party:

  The giving of a gift to an employee at Christmas time may be a minor benefit that is an “exempt benefit” where the value of the gift is less than $300. 

Where a Christmas gift is provided to an employee at a Christmas party, the benefits are associated benefits, but each benefit needs to be considered separately to determine if they are less than $300 in value. If both the Christmas party and the gift are less than $300 in value each and the other conditions of a minor benefit are met, they will both be exempt benefits. 

2, How about Client gifts? 

As the gift is an expense to your business, it is generally considered to be a tax deduction. The ATO has considered the act of gift making to clients, and several cases exist where the tax treatment has been tested in the courts. If there is an expectation that the gift will either generate future business from the client or motivate them to refer your services to others, it is considered that the expense of the gift was business promotion and is a tax deduction. 

It should be noted that the gift does not constitute the provision of entertainment which is a non-taxable deduction. 

If you are unsure about the FBT implications of your Christmas party or gifts, please contact our expert Accountants today, and they can assist you!