First Home Owners Super Saver Scheme

Because the thought of trying to save up for your first home is daunting.

So often these days we see kids heading off to study at University, which is GREAT! However….. it means that they are living at home longer as it puts off their ability to work full time, from anywhere between 3 to 10 years.

So how hard is it for our kids to save to buy their first house?

(and yes, all of those $4.50 coffees and smashed avo brunches probably aren’t helping them get into their own home any sooner [shout out to the $10 ‘Retirement Plan’ smashed avo dish!] , but can we all agree, how good do they taste! Well that and I don’t know how you expect anybody to live in Melbourne and NOT drink coffee)

So the government has decided to lend them a helping hand to reduce pressure on housing affordability, in their usual over complicated and maximum effort sort of way.

They have introduced the First Home Super Saver Scheme (let’s call it FHSSS because that is a mouthful and a half)

This scheme now allows people to save for their first home through their Superannuation funds.

Why is this a good thing?

Because it will help first home buyers save faster with the concessional tax treatment of super.

So now you are looking at getting an interest rate of around 7-8%, as opposed to the current 1.5% cash rate (aka. Rate of interest).

You can make contributions at any stage, however can only apply for its release once (and you have to be at least 18). There is also a cap of $30,000 on the voluntary contributions that you can withdraw under this scheme, (but you also get to withdraw all of the interest that comes with it – Cha-Ching!).

It’s a good start to helping our kids get into their own home (and out of ours) faster!

The median house price in Melbourne it currently sitting at somewhere around $900,000.

Now if they were looking at a house valued around $700,000, their 20% deposit is sitting around $140,000 (or 8,000 smashed avos).

And whilst this is a big number, there’s a few things out there to help them achieve it.

We want to teach our kids healthy financial habits, and help them to make one of the biggest investments of their life.

 

 

If you’re a little intrigued (or a little confused) about how it all works, give us a call and we’ll be more than happy to talk about it with you, and have a look at the best steps for implementing an effective savings scheme.

 

 

What Credit Cards do you need?

As children we are forever warned off of using credit cards. Why? Because of the astronomical interest rates where we get sucked into the habit of just spending and spending and spending, however it’s when we start spending money we don’t have do we fall down the rabbit hole.

 

 

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Well here’s the key:

X2 American Express cards

&

X2 Visa/MasterCard cards.

 

 

 

 

 

 

 

 

Why do I need so many cards you ask? Well. Let me explain.

You need two cards (well two of EACH type really).

One for everyday transactions, and one for direct debit accounts.

This means that your direct debit accounts are consistent and function by themselves. If you don’t use these cards for anything except for the purpose of paying bills, rates, etc then there’s a much less likely chance that they will need to be cancelled.

On the other hand your everyday transaction card is used for just that. It will follow you around on your daily routine and be used for any online purchases.

So the bonus of having your cards structured this way?

If you lose your everyday transaction card or it gets hacked you don’t have to cancel and re-fill out all of your information for your direct debit accounts again.

Now why you have two American Express and two Visa/MasterCard cards is because American Express is often very generous with their rewards schemes, so it’s best to use them when you can as you will most likely get more back for your purchases. On the other hand a lot of retailers don’t accept American Express as they have to pay a higher transaction fee to allow you to use it, and you don’t want to be stuck without a card do you?

So by having two of each it allows you to have security, flexibility and benefit from the reward schemes that all of the credit cards offer.

 

And don’t forget to renew them every two years. A little bit of hassle will leave you with a lot of reward.
Not only are more cards often introduced with other benefits and fees, but by changing credit cards you can often encounter other specials and offers such as no fees for the first 6-12 months or a sign up bonus of points.

 

Research!

Also do your research and find out just what your credit card will allow you to do, and just what you can use your points on. Some credit cards allow you to pay certain things with your points.
This can include ATO fees and some insurances.

 

Determine your spending pattern, and what is going to be most advantageous to you.

There are so many options for credit cards, all with differentiating fees, benefits and limits. Comparison is a necessity when weighing up which credit card to go with, and remember, just because you sign up with them does not mean you have to stay with them for eternity!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Why do you need a credit card for your business?

A credit card can be very beneficial, especially to those of you who run a business. Credit cards often offer flexibility and offer numerous incentives and rewards for using their services.

This can often be what entices people in to begin with. The promise of extra cash, of overseas trips, of no interest. But there is no such thing as free money, everything comes at a cost.

 

So here’s your ToDo list:

  1. Establish how much money your income provides you with.
  2. Establish your budget. Just how much do you spend weekly?
  3. Establish what kind of benefits you want to receive.

 

 

 

 

 

 

 

 

Your Need ‘ToDo’ list:

  • Have an accessible account to withdraw from.
  • Have sufficient funds to repay your credit card balance
  • Don’t miss deadlines
  • Don’t over spend or spend outside of your means.

Why is it beneficial for a business?

Credit cards keep and track all transactions. Come tax time this is going to be your best friend! See just what you spent money on and where, and check it off your deductibles list!

And here are what credit cards are good for:

– Track records for your bookkeeper.

  • Your bookkeeper will be LOVINGGGGG you! No more chasing up receipts for this or that, they’re all in one spot.

They’re safe.

  • They are hard to hack and often it’s easier to get your money back from the bank.

They provide insurance.

  • Different credit cards may offer a variety of different insurance types to protect you.

Now lets find your credit card

Comparison websites have just become your new best friend.

They allow you to filter the cards by rewards and type of reward, annual fee and interest rate. This helps to you to determine what your priority is and what you most want to get out of your card, and find the card that best works for you!

 

 

 

 

 

 

Now a credit card can often be beneficial for a business owner? Why? Because your expenditure is usually taken out from your income. The expenditure has to be less in order to run a successful business. This means that you can reliably pay off your credit balance, and henceforth not pay the high interest rates whilst reaping the rewards that a credit card has to offer, for one annual fee.

The bonus to having a credit card as a business owner?

Every time you renew your cards you will granted more rewards points or discounted fees. So yes, there’s that round the world trip in Business Class for you, flights completely covered. When people look at frequent flyer points, the number rarely equates to a financial figure to a lot of people. But I tell you, pay attention, because they can add up, and be worth thousands of dollars. And all this for buying things for your business that you already would!

Tax Myths BUSTED!

 

We bust the 10 most common tax myths and mistakes that businesses are most likely to fall trap to this Financial Year.

 

Rental Deductions

Myth: You can claim deductions for your rental property the whole year round and for maintenance and renovations.

Reality: You can only claim deductions for the periods of time where your property is actively being rented out or is available to rent. Whilst you can claim an amount back on maintenance and renovations, it is not applicable prior to the first time the property was leased.

Our Advice?

Get your documentation sorted, and make sure you can easily put your hand on it if the ATO come knocking. Have your evidence, receipts and contracts and have them there ready and waiting.

 

Cryptocurrencies

Myth: You don’t have to pay tax on cryptocurrency.

Reality: Cryptocurrency is considered an asset which therefore may require you to pay Capital Gains Tax. In addition, if you have dealt with a foreign exchange and/or cryptocurrency there may also be taxation consequences for your transactions in the foreign country.

Our Advice?

Contact your accountant or financial advisor to understand if you have made any gains through your cryptocurrency and what tax you’re expected to pay on it. We also recommend that you maintain up to date records of all your transactions to supply as evidence of the exchanges.

 

Home Internet and Phone Bills

Myth: You can claim large percentages of your internet and phone bills if you conduct work from home.

Reality: You can claim deductions for your home internet and phone bills, but only for the proportion you have used for work.

Our Advice?

Have documents and evidence of business phone calls, and periods of time in which you may be using the internet for work related purposes. Access work from home log book resources to assist you.

 

Car Travel Expenses

Myth: You can claim up to 5,000 kilometres.

Reality: You can claim up to 5,000 kilometres for work related trips. These are trips that are for the sole purpose of business relations. It does not include work related trips that are done on the way to or from home or other personal trips.

Our Advice?

Log your trips and keep a record. This includes time, destination, purpose and odometer readings. This means that if the ATO come knocking you have evidence to back up your claim.

 

Business Travel Expenses

Myth: You can claim all of your travel expenses back for a business related trip

Reality: You can claim majority of your travel expenses inclusive of airfares, taxi fares etc. However you cannot claim any personal expenses that you may incur on your business trip.

Our Advice?

Log your trip with times, meetings/functions/events etc and the nature of it. Include with whom it took place. Also remember to keep receipts to show the ATO for accurate deductions. Contact your accountant for a travel expenses log book.

 

Receipt Free Threshold

Myth: You can automatically claim deductions for purchases under $300.

Reality: Once the total cost of items exceeds $300 then proof of purchase is required. The ATO also requires you to show evidence of how you worked out your claim.

Our Advice?

Keep your records and receipts of payments and speak to your accountant about the best ways to reduce tax on work related purchases to receive the largest deduction.

 

Meals and Entertainment

Myth: You can claim large deductions for meals you have at work.

Reality: When business owners start to rack up their entertainment and expenses, and as such attempt to claim them it tends to catch the eye of the ATO. Businesses can only claim the cost for legible business meeting and functions and to the amount of 50%.

Our Advice?

Log it. Include information such as who you’re meeting with, the nature of the event, the location and of course, the receipt!

 

Directors Loans

Myth: You can borrow from your own business.

Reality: Many business owners try this tactic in an attempt to reduce tax by paying a lower wage and simply borrowing from the business, however there are strict rules regarding this type of action. If this isn’t managed it can get you into a tricky spot with the ATO and can result in some nasty fines.

Our advice?

Speak to your accountant before you withdraw money, to get the right advice to how to go about it to reduce your tax.

 

Deadlines

Myth: It doesn’t matter if you don’t lodge your tax return by the deadline.

Reality: If your business’s tax lodgement is late it’s not going to be pretty. It can result in fines, interest and even an earlier deadline for the following tax year. Whilst there is quite a bit of time to get it all organised and lodged many businesses still fail to meet the deadline and are open to receiving penalties.

Our advice?

Get ready and get organised. Have a process that is followed every year and maintain your books throughout the year in preparation for tax time. This will streamline the process and make sure you’re ready come lodgement time.

 

Super Payments

Myth: You don’t have to pay super for subcontractors.

Reality: Most people are aware of their super obligations as an employer of casual, part time and full time employees, however they may also be liable to make a super contribution to contractors upon meeting specific requirements. Failing to pay said super means that you are then open to receiving penalties such as fines, fees and interest, as well as a loss of the tax deduction.

Our Advice?

Contact your accountant. They have the most up to date knowledge and understanding of business requirements. They can assist you to establish if this is a requirement you have to pay depending on the hours worked by the contractor and their pay rate.

 

 

Need more advise?

Get in contact with us today!

 

 

You’re Business Credit Card “To Do” List!

A credit card can be very beneficial, especially to those of you who run a business. Credit cards often offer flexibility and offer numerous incentives and rewards for using their services.

This can often be what entices people in to begin with. The promise of extra cash, of overseas trips, of no interest. But there is no such thing as free money, everything comes at a cost.

 

So here’s your ‘To Do’ list:

  1. Establish how much money your income provides you with.
  2. Establish your budget. Just how much do you spend weekly?
  3. Establish what kind of benefits you want to receive.

 

Your Need ‘To Do’ list:

  • Have an accessible account to withdraw from.
  • Have sufficient funds to repay your credit card balance
  • Don’t miss deadlines
  • Don’t over spend or spend outside of your means.

 

Why is it beneficial for a business?

Credit cards keep and track all transactions. Come tax time this is going to be your best friend! See just what you spent money on and where, and check it off your deductibles list!

 

And here are what credit cards are good for:

  • Track records for your bookkeeper.

Your bookkeeper will be LOVINGGGGG you! No more chasing up receipts for this or that, they’re all in one spot.

  • They’re safe.

They are hard to hack and often it’s easier to get your money back from the bank.

  • They provide insurance.

Different credit cards may offer a variety of different insurance types to protect you.

 

Now lets find your credit card

Comparison websites have just become your new best friend.

They allow you to filter the cards by rewards and type of reward, annual fee and interest rate. This helps to you to determine what your priority is and what you most want to get out of your card, and find the card that best works for you!

 

Now a credit card can often be beneficial for a business owner? Why? Because your expenditure is usually taken out from your income. The expenditure has to be less in order to run a successful business. This means that you can reliably pay off your credit balance, and henceforth not pay the high interest rates whilst reaping the rewards that a credit card has to offer, for one annual fee.

 

The bonus to having a credit card as a business owner?

Every time you renew your cards you will receive more rewards points or discounted fees. So yes, there’s that round the world trip in Business Class for you, flights completely covered. When people look at frequent flyer points, the number rarely equates to a financial figure to a lot of people. But I tell you, pay attention, because they can add up, and be worth thousands of dollars. And all this for buying things for your business that you already would!

 

Advantages and Disadvantages of Credit Cards

Credit cards can often be a tricky thing.

Do I get one?

Do I need one?

What can I get out of it?

How much is it going to cost me?

We’ve tried to simplify the whole concept that is the credit card.

Below we have listed the advantages and disadvantages of owning a credit card, to help you establish if it’s the right move for you.

 

Advantages:

Free travel insurance

This is an incentive that a lot of people are looking for when applying for a credit card. Many companies offer this on condition, such as holding a gold or platinum credit card.

Frequent flyer points

A lot of credit cards offer this as an incentive. It may be a lump sum for signing up for a credit card, or per purchase. Be aware that these can add up, and they do hold financial value.

Cash back

Some credit cards are cash back credit cards. This means that for every purchase you make (inclusive of other limitations and conditions, such as number of purchases, to a particular spending amount or time restraint) they may offer a percentage of the amount for those purchases back.

Discounts on products

Some credit cards have associations with other businesses. This means they can offer discounts on particular goods and services.

Reward points

Similar to frequent flyer points, however rewards points may be used to purchase limited items or attain discounts.

Convenient

For daily purchases and online shopping it also allows you to have access to another stream of income. If there is something that needs to be paid, eg. Bills or an important purchase and you don’t have sufficient funds, than a credit card is an option that will allow you to pay these necessities without receiving insufficient funds fees from your bank on your debit card.

Safe

Credit cards are a safer option than cash. They also come with several levels of protection. They often provide insurance for the purchase of some goods and have fraud protection for stolen cards. It is also very easy to cancel a card.

Good credit rating

It can help improve your credit rating or establish a good one if you continuously make your payments and not miss them.

Pay off monthly balance in full = no interest

 

 

Disadvantages:

High interest rates

Credit cards often have the highest interest rates on loans. The average in Australia can often range from 15-22%. This means that if you can’t repay your credit card balance in full by the end of the month than you are open to these high interest rates. This often means that you are going to be paying more for your product or service than what you originally would have.

Overspending

Spending money that you don’t have gets you into deep water. If you have a regular and stable income, and budget right, then paying off your credit card balance won’t prove to be too much of an issue. However, when your debt is larger than your income after expenses, then it can lead into a slippery slope.

Impacting credit score

If you miss a repayment or cannot meet the minimum repayment requirements then this can negatively impact your credit rating. This can therefore effect your ability to apply for a loan in the future.

Credit card surcharge

This is a fee that business have to pay to their banks for the benefit of allowing customers to pay with their credit cards. Many business these days are choosing to pass this surcharge onto customers. This means that you may end up paying anywhere from 1-3% of the purchase price.

Annual fees

Many credit cards will offer a ‘no annual fee for the first year’ as an incentive, however these prices can often increase quite rapidly. Some credit cards may offer a lower annual fee for a higher interest rate and vice versa. This annual fee however means that you can end up paying an additional $500+ per annum just for the convenience of owning and using a credit card.

 

So now the decision is up to you! And don’t forget to do your homework and shop around first.

 

Note: This is only advice, for specific information please contact your bank or financial adviser.

 

How to create a Business Budget (and why it’s so important!)

A budget compares your expected revenue to your expenses, and breaks it down to see where your expenses are coming from.

A successful budget will allow you to plan, forecast, measure your success and take control of your money with no surprises.

It can also help you to:

  • Work towards your goals.
  • Assist you when asking for a loan
  • Minimise risk when making large purchases by knowing the financial ability and stability of your business

 

You can also use your budget to:

  • To establish the costs of labour and materials
  • Understand your cost of operations
  • Set goals
  • Know where your profit margin is

 

A budget begins to give you an understanding of the profitability of your business, and obviously the bigger the number the better right?

It gives a numerical value to your expenses and gives you an understanding of where these expenses are going, and when positioned with your expected income, then you can understand why you are/are not meeting your targets.

It shows you just where that line is between the red, the black and the blue. This includes how many sales are required to cover your costs to get back in the black, and from which point on you can begin to see a profit (cha-ching!).

From there it can help you create a plan, create a goal, and find out your potential for expansion and growth of your business. It can also assist you in establishing just how much you can re-invest into your business.

 

Now let’s have a look at how to create a successful budget.

 

  1. Establish a time frame

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Our suggestion is to make it either quarterly or annually.

 

  1. Create a profit and Loss Report

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How to create a Profit and Loss Report:

a) Calculate expected income

i. Sales of product and services

 

b) Calculate expected expenses

i. Fixed costs:

  • Rent
  • Insurance
  • Payroll

ii. Variable costs:

  • Bills
  • Office supplies
  • Upgrades
  • Client entertainment
  • Fees

iii. Depreciation

  • Business assets
  • Equipment
  • Technology
  • Furnishings

 

*Tip

Record your actual income and expenses during your budget period to help keep you on track and measure the accuracy of your budget for future purposes. It will also help you to assess where costs may be too high.

 

  1. Create a Balance Sheet

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This measures the value of your business and helps establish the difference between what you own and what you owe.

 

 

By doing the above it sets you up in a position to know exactly where your business is at. Because at the end of that day, a lot of it comes down to that bottom line. And we need to make sure we’re making a profit, and we need to know and find out how to boost and improve that. Budgeting allows you to see exactly where your finances are coming and going from and where the best places are in your business are to re-invest them.

 

So if you haven’t already, get on the bandwagon! Because if not its going to be one bumpy ride!

And if have a budget already in place, make sure you revisit it, because this little baby loves [needs] constant attention!

 

 

Business Goal Setting

Set Goals, and write them down!

Without a goal or objective, you’re just running through the motions day to day, which works fine, but we’re looking at the big picture here.

To achieve, to grow, to expand, you need a goal. And this may be the goal, but there’s other steps that go into that process. This includes:

 

How are you going to get there?

What do you need to achieve first to get there?

How are you going to achieve it?

Who and what is going to help you achieve it?

 

When we speak about goals, and when we plan for goals, it’s best to look at it this way.

You need a short, medium and long term goal.

(Short term = weeks/months, medium = end of year, long term = 5-10 years)

It’s the little wins (or the short term goals) that keep you on track and keep your motivation going.

 

How to achieve it?

Make people aware of it. You can’t do it alone, so make sure your employees are working towards the same goal as you, if they don’t know about it, then it’s going to make it a lot harder.

Your goals should be aligned with you mission statement. Your mission statement is the overall purpose of the company, so henceforth your goals should be set in accordance with this.

 

Before you start goal setting here are some steps to undertake.

 

SWOT Analysis.

  • This will help you to identify your businesses Strengths, Weaknesses, Opportunities and Threats.

Strengths and Weaknesses tend to be internal factors, whilst Opportunities and Threats are external factors.

 

Bench marking

  • By researching similar business in your industry and area, it will give you an idea of what to expect, and a way in which to measure your performance

 

Goal Setting:

  1. Reflect
  • What worked well in the past year?
  • What improvements would you like to make?
  • What could be made more effective?
  1. Pick a theme
  • Organisation
  • Productivity
  • Profit margins
  • Work life balance
  • Employee satisfaction
  • Work place culture
  1. Create an action list
  • These are the actions required for you to achieve your goal, in regards to both your long term, and short terms goals.
  • What needs to get done in order for you to achieve you goal?
  1. Commit
  • Write it down
  • Check items off a list.
  • Make yourself and your employees accountable to the development and progress of your goal.

 

Don’t forget to break your goal down to more achievable steps, and celebrate the wins.

 

Let’s be SMART about it

 

Specific

What EXACTLY is it that you want to achieve? It’s great to have a topic or a theme, but that then needs to be broken down into exactly what it is and what part of that are you going to achieve.

Eg. To become more organised is a theme, not a specific goal

A specific goal would be to have all of your meetings scheduled in your diary and calendar at least a week in advance.

 

Measurable

In order to see progress, we need to be able to measure it. This could be in amount of hours, weeks, costs, complaints, reviews etc. Otherwise one person’s definition of achieving it can be different to that of another’s.

 

Attainable

Now let’s get some perspective. Let’s make sure that we can actually achieve the goals we set. I mean let’s be real, if my goal was to be Iron Man, welllllllll, the probability of me being able to attain that goal probably isn’t going to be all that high.

 

Relevant

Again, why would I make my goal wanting to be Iron Man when I work in finance? Whilst it would be pretty damn cool, is it relevant to me, my business and improving it? Maybe not.

 

Time-Based`

Have a date. Make yourself accountable. Stay on track to achieving your goal and achieving it by the set date. Are the steps to your goal being met by the specified time? If not either your efficiency or dates need to be re-assed. Understand why you’re not reaching these short terms goals in time and how to fix it.

 

To set an effective goal takes time. And it takes effort to monitor it, however monitoring it allows you to continuously asses the productivity of your business, and at the end of the day to reach your long term goal you need to be meeting and smashing out these short term ones.

 

Re-asses, re-evaluate, reveal in the reward.

 

TAKE THE FIRST STEP AND ACCESS A FREE BUSINESS GOAL SETTING TEMPLATE, CLICK HERE!

 

KICK-START the New Financial Year!

KICKSTART the New Financial Year!

Our top 10 steps to make the most of this financial year, and how to start off on the right foot.

 

For a lot of businesses, the end of the financial year means they’ve handed over all of their financials (or about to) to their accountant and have left them to it.

Well I hate to be the bearer of bad news, but your job doesn’t end there. Take advantage of the new financial year, and get on top of your business. By starting to plan for the end of the financial year, at the start, you can ensure that you are going to be taking advantage of all the opportunities this year has to offer! Make your business flourish, and make improvements from the previous year. It may sound long and boring, but it’s totally worth it. Now let’s get this stuff done!

 

  1. Review your business strategy

This will allow you to identify areas for improvement. An overall look at the business to see what can be made more efficient, or if processes need to be changed. Is this strategy going to lead you and your business to where you want to be? Is it still effective? Decide and then move forward.

 

  1. Review your business plan

Did you achieve the previous year’s goals? This can be financially related, customer or employee satisfaction related, product quality or efficiency, brand management and reputation etc. By analysing these goals you can establish whether or not they were met, and if not, why not? This can then put you on a path to discovering what needs to change, and implementing this change.

 

  1. Goal setting

The answers to the above questions become the basis for your goal setting. You need to understand what it is you would like to achieve this coming year. And this means writing it down! This allows you to develop a new business strategy that will work towards achieving these goals and objectives.

 

  1. Review your business structure

Does your current structure meet the requirements of your businesses present or foreseeable needs? Is expansion a possibility? Why we ask these questions and why you need to come up with an answer, is because if a re-structure is required, then different compliance and taxation regulations may be applied.

 

  1. Review your finances

Establish if you are meeting your targets, and if not understand why. Is it through material/manufacturing costs, labour costs, efficiency, not meeting sales targets or does the price point needs to be adjusted? Find out what room you have to move and where, and then proceed accordingly.

 

  1. Review your insurance

It’s such an important part of running a business, from small to large and everywhere in between. Whilst there are legal obligations, it’s also important to do a risk assessment and look at other potential risks to the safety of your employees and your business. This review should be taken out not only to protect yourself, but to also make sure you are fulfilling your legal requirements.

 

  1. Asset protection

Speaking of legalities, your assets are what you’ve acquired with all your hard earned time and money, so make sure you look after them, and making sure their value is registered. If you’re unsure about how to go about it, the best thing is to speak to a professional. They know what they’re talking about.

 

  1. Establish a budget

Now that you know what you want to achieve, what improvements you would like to make, and how to go about it, you need to budget. I know it’s the scary B word, but it’s important and if you stick to it, it works! By knowing just how much you are going to commit to which areas of your business, you can put both you and your business in a much more stable financial position for the future.

 

  1. Use financial management tools

Trust me, they will make your life a lot easier, and make your finances a lot easier to manage as well. Cloud accounting software such as Xero keeps everything in one place. By starting to use these systems from the beginning of the financial year, come tax time for the following year, it will make both yours and your accountants lives a lot easier. Xero stores your documents and receipts meaning that everything is there for you when you want it, no wasting your time searching for it all. Time which you could spend any other way you would like (early knock off to the pub anyone?). It also allows you to create and send quotes and invoices and keep track of debtor payments. It also has all traditional payroll functions, such as the ability to file new employee details directly with the ATO, automatically pay Superannuation and allow employees to enter their timesheets.

 

  1. Manage and review your superannuation

Because after all, we’re not all going to work forever right? Knowing what kind of condition your super is in can allow you to take action, and get advice to improve the situation. Even if it’s already in great condition, it can always be better right? I mean think of the size of the caravan you can get to travel across Australia in. Talking to professionals will also help you to establish as a business owner what kind of opportunities this may present you with. It’s worth a look isn’t it?

 

 

And here’s a bonus tip (mainly because the list looks so much better finishing at 10 rather then 11), back it on up! Get all those important files backed up, and store it off site. We talk about insurance as a precaution, well here’s another one for you. If you have insurance as a ‘just in case’, then why not back up your files for the same ‘just in case’ as well. Because if that ‘just in case’ became a, ‘thank god I did’ then you are going to be very thankful indeed that you chose to backup, because imagine the paperwork then!

 

 

So follow all or even at least some of these steps, to get in shape for the new financial year! Financial stability gives you the ability to plan and execute, and grow and improve. It allows you to know the direction that your business is heading in, and make sure it’s the right one!

You don’t want to be another year behind, so get sorted and get started!

 

July 1st Changes

With the New Financial Year upon us, it’s time to have a look at just what it is that’s happening.

With quite a few tax breaks for business, it’s a great time to find out what you can take advantage of!

 

Tax cuts

For those of you earning more than $87,000 per annum, then you’ll be happy as the government have increased the threshold of the 32.5 per cent tax bracket to $90,000. There are also rebates that will come in for people earning up to $125,000 a year.

There are also tax breaks for the low to middle incomes earners, who can receive tax back for the 2018/19 financial year between $200 and $530 depending on their earnings.

There’s also a little something in there for big business. Companies with an annual turnover between $25 million and $50 million will pay a lower corporate tax to the amount of 27.5%, down from 30%.

Regional Victorian businesses will also find they will receive a payroll tax cut bringing their rate down to 2.425%, from 3.65% to help encourage and boost the regional industries.

 

Wage changes

The Fair Work commission have announced a 3.5% increase to the minimum wage. This will make the weekly minimum wage $719.20 and the minimum hourly rate $18.93. This equates to a rise of $24.30 a week for minimum wage workers.

Alongside this however we see cuts to Sunday penalty rates for the fast food, hospitality, retail and pharmaceutical industries. It is the part time and full time employees that will get hit the hardest from this, with cuts between 10%-15% occurring. Casual employees remain almost unaffected, except in the retail sector where their penalty rates drop by an extra 5%.

 

GST

Overseas retailers that are selling goods under the price of $1,000 are now subject to GST.

This means at this stage we say goodbye to ordering off the U.S Amazon site, as they no longer deliver to Australian addresses, and instead will re-direct you to their newly founded Australian version.

In regards to housing and real estate, the purchasers of newly constructed residential property, land or subdivisions must now withhold the amount of the GST from the contract price. Whilst the amount of GST will not change they will now have to pay the amount directly to the ATO.

 

Child Care Subsidy

The Child Care Subsidy will replace the current Child Care Benefit and Child Care Rebate.

The lowest income families (under $66,958) will be paid the most, with 85% of their child care costs being covered. This then tappers down as the income increases. If a family earns more than $351,248 they will not receive a subsidy, with the lowest rate being 20%.

The cap that was previously in place has now been removed for families earning less than $186,000, and lifted from a $7,600 cap to $10,000 for families earning between $186,000 and $351,000 a year.

Eligibility requirements still remain.

 

Plastic Bags

Whilst Victoria have only just began to see the plastic bag ban introduced into major shops such as Woolworths and Coles, across the nation more bans are being seen to be put in place. Queensland and Western Australia will ban the use of single use, light weight plastic bags from major retailers, following in the steps of the ACT and Tasmania.

 

So welcome to the new year and best of luck!

For advice on how to make the most of it, stay tuned to our next blog!