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.
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
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!
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
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
The main reason people go into business for themselves is quite simple – to have more control. For others, wealth creation is the main focus, although small business also brings with it the higher chance of failure and loss. Is the hard work and extra risk worth it?
If you are a small business owner or have dreams of becoming one, consider the following and how it might apply to you.
Earn less now to create future wealth
Research suggests that the average Australian small business owner works in excess of 35 hours per week – much more than their employed counterparts of similar age – but despite these hours, small business owners have lower levels of income. Continue reading
Here are ten business management tips to help make the new financial year a successful and profitable one for you.
- Watch trends in your industry. Compare your business performance with your competitors and to performance in previous years.
- Review your financial management. Timely accurate reporting is vital to the success of any business. Continue reading
The end of the tax year is edging closer. If you haven’t planned how you will maximise your income and save some tax, take note! The most effective strategies are often the simplest and can be applied before 30 June this year whilst others should be considered for next year. Here are both categories to consider:
Pre 30 June
- Defer non-essential income until the new financial year.
- Review your investment portfolio prior to 30 June to determine whether investments should be sold to offset any capital gains or losses made throughout the year. Continue reading
The federal budget was released last week. Generally there was a lot of belt tightening with the government supposedly determined to return the budget to surplus. Whilst there wasn’t a lot of upside for most of us there are some important changes that you may have missed. These include:
- Introduction of the ability to claim back tax paid in prior years against current year losses for companies from the 1st July 2012. One of the few wins for small business but as it only applies to companies and only 20% of small business are operated through companies it is expected to have limited application.
- Proposed reduction of company tax rate has been abandoned. Rate to stay at 30% for the foreseeable future.
- Living Away From Home Allowance (LAFHA) has been overhauled and is now more limited in its application. Continue reading
On a recent trip to Tasmania I found myself at Melbourne airport, in a hurry as usual, trying to grab a quick bite before my flight. It was a particularly busy time and there were lengthy queues at all the various outlets. I lined up at one of the fast food outlets (yes my healthy eating campaign was also on holidays!) where after a short wait I was greeted by a young woman who according to her name badge was a team leader at the store.
She was clearly disinterested in her role and going through the motions, only just! She incorrectly took my order, a fellow customer’s complaint was met with a blank stare and forced smile and the card facilities were working intermittently depending it seemed on who the customer was. What this lead to was a completely unsatisfying experience for all the customers she served. Continue reading