Last night saw treasurer Scott Morrison unveil the federal government’s budget for the 2017/18. There were some surprises and some announcements that were widely expected. Below we look at some of the measures that are likely to be of most interest to small business owners.
Employers are eligible to a tax deduction for contributions made for employees to a complying superannuation fund. The contributions are only deductible however in the year in which they are paid. To get the most from the deductions available, employers should make sure that the contributions are received by their employees superannuation funds before the 30th June. Continue reading
Last night saw the release of the 2015/2016 Federal Budget. Fair to say it was a bit of a tame affair compared to the year before where a lot of the measures were very unpopular and as such were not able to be brought into action. The good news that did come from last night was that there were a lot of measures in there aimed at small business.
Benefits for Small Business
It should be noted that most of the measures targeted at the business sector were either directed at the big end of town or small business with very little for those in-between. We will focus on the small business end of things which for the purposes of most government measures is generally defined as a business with turnover of under $2 million. Continue reading
Wondering what you can claim in relation to home office expenses? The video below gives a good outline on what you need to satisfy to be be able to claim these type of expenses.
Key things to note are the difference between occupancy and running expenses and the difference between a place of business and a home office.
Consider the following statement: “I love your product. It was delivered promptly and in perfect condition. I’ll be sure to let my friends know.”
Comments like that can boost sales as much as significantly. Better still, when you get a testimonial from a customer, that person is likely to become a more loyal customer and help spread the word about your business’s products. If your enterprise is small or medium-sized, it probably doesn’t have the perceived credibility of a national brand. But even on a small advertising budget, you can increase credibility with the help of happy customers.
Testimonials increase the comfort of potential buyers and help them overcome their concerns about trying new products. So consider initiating a campaign to collect positive statements from your customers. The benefits include: Continue reading
Super Guarantee Rate Increases
The super guarantee rate has increased from 9% to 9.25% from 1st July 2013. All payments made after this date need to reflect the new rate. It should also be remembered that the rate is going up by another 0.25% next year followed by 0.5% increases each year until it reaches 12%. Keep this in mind when negotiating employment conditions!
If you are in the building and construction industry and use subcontractors then you will shortly be required to complete the Taxable Payments Annual Report for these payments. Xero has produced a special report to facilitate this. To see how check out the following video.
Income Tax Changes for 2012/13
A large number of tax changes apply in the 2012/13 income year. A brief summary is provided to you below in this update. There may be some advantages in acting on some of these items before 30 June so if you think any of these changes may affect you, please contact us for more details.
General Year End Tax Planning Strategies
Business Income and Expenses
Subject to cash flow requirements, consider deferring income until after 30 June, especially if you expect lower income for 2013/14 compared to 2012/13. Continue reading
With an increasingly aging population there is going to be continued pressure to be able to fund your own retirement. The sooner you put into place practises to improve your worth when you retire, the more time you will have to get the maximum value from your retirement planning efforts.
At the end of the day we all desire a fulfilling retirement. The question is how is this best achieved? One popular option is the use of a Self-Managed Super Fund (SMSF).
While not everyone will want to set up one of these funds, it may be worth your while to take a look at some of the many benefits they offer, including: Continue reading
Cash is king or so the saying goes and any business person will tell you, this saying is as true today as ever. And managing it is like a high-wire balancing act. If your company’s cash reserves aren’t sufficient, you may wind up short of funds. If your business holds too much cash, the funds are idle and not being pumped back into the company or generating any return.
So what sort of cash flow policy is appropriate for your business?
Fundamentally, there are two opposing approaches to managing cash and other short-term assets: Continue reading