The year many would rather forget – and parts of it, I wholeheartedly agree.
But the festive season is a time to reflect, appreciate, and look for those silver linings.
For Price Perspective, we didn’t skip a beat during lockdown with our firm already set up as a virtual practice. I spent 9 weeks of the year in my caravan travelling NSW and SA with my family – business as usual, just a few more zoom meetings!
I met with Dubai-based clients from the mullock heaps of Broken Hill. I celebrated the end of financial year amongst the brilliant colours of the Painted Desert, SA. My caravan office ventured to the scrubby Grawin opal fields of Lightning Ridge, the lush green hills of the Barossa Valley, and the star-soaked mountains of the Flinders Ranges, to name a few. How marvellous is technology and the ability to work remotely!
We welcomed to the team our new employee, Kelsie, who beams her accounting skills in from Northern NSW. Along with Belinda, our senior accountant and Tassie representative, and my amazing admin (Dream Admin Services) and IT (Strategic Group) teams, we have ourselves a well-oiled business services machine.
While I missed the social interactions and visiting local clients, I relished the time spent at home with my husband and kids. Despite the craziness of home-schooling, I will look back fondly at the time spent teaching my 6 year old to read, helping my 9 year old practice piano, and watching my 11 year old handle zoom-therapy sessions like a boss.
2021 – it came, it hurt, but in some ways it was splendid.
Wishing everyone a happy and safe Christmas.
The Treasurer, Josh Frydenberg, has handed down the 2021/22 Federal Budget and it's a mixed bag.
Save yourself some time and read our concise summary for the bits most relevant to our business and personal clients.
Click below for our 2021-22 Federal Budget Summary.
2021/22 Federal Budget Summary (pdf)
DownloadIt's almost May and the end of financial year fast approaches - time for tax planning!
Tax planning is one of our most popular and valuable services, and will be particularly important in the wake of COVID and the uncertainty of the past 12 months.
Tax planning with Price Perspective involves reviewing your year-to-date results, projecting your results to June, accurately calculating your expected tax position, and discussing various strategies in order to:-
Please contact us to book in your 2021 tax planning. Don't leave it too late - our calendars are filling fast!
Read on for details of current incentives available for employers creating new jobs as we begin on the road to economic recovery.
JobMaker
As JobKeeper draws to a close, JobMaker is now open for enrolments.
Administered by the ATO, the scheme has been designed to create jobs for young employees by offering cash incentives to employers. The scheme will run for 12 months from 7 October 2020 with registrations now open via ATO online services and the Business Portal.
Eligible employers will be able to access a JobMaker Hiring Credit of between $100-$200 per week for each new job they create for eligible employees.
Eligible employees must be aged between 16 – 35, work a monthly average of 20 hours per week, and have previously been in receipt of income support payments such as JobSeeker, Youth Allowance or Parenting Payments for at least 3 months.
Claims will be made quarterly and will commence from February 2021. Contact us today for assistance with eligibility and enrolment in the scheme.
Boosting Apprenticeship Commencements
The Boosting Apprenticeship Commencements wage subsidy is aimed at supporting businesses and skilling up our workforce for sustained economic recovery.
Employers who engage an Australian Apprentice on or after 5 October 2020 may be eligible for a subsidy equivalent to 50% of wages paid between 5 October and 30 September 2021, up to a maximum of $7,000 per quarter.
The subsidy can be claimed from January 2021 and will be paid quarterly in arrears.
This is not available to employees in receipt of income support payments such as JobKeeper.
To claim, contact an Australian Apprenticeship Support Network provider – click HERE to find one.
Youth Bonus Wage Subsidy
The Australian Government is offering up to $10,000 to businesses hiring employees previously registered with employment agencies. Agencies are assessing eligibility and facilitating the subsidy which will be paid over a period of 6 months.
All new employment placements must average at least 20 hours per week.
Details of the various subsidies are detailed below:-
Restart – up to $10,000 for new employees aged 50 or over
Youth Bonus – up to $10,000 for new employees aged 15-24
Youth – up to $6,500 for new employees aged 25-29
Parents – up to $6,500 for any age
Long-term unemployed – up to $6,500 for any age.
For more information, contact the Department of Education, Skills and Employment HERE.
Please contact us for further information or assistance enrolling in any of the incentive schemes available.
P – 1800 778 776
Where did the first half of 2020 go? EOFY is upon us, and between isolating and keeping those businesses running, it is time to consider some practical tips to minimise your tax, maximise your wealth, and be prepared for 2021.
1. Are you Single Touch Payroll compliant?
For most businesses, STP reporting began 1 July 2019. Businesses with deferrals in place will need to comply by 1 July 2020. This is not optional and applies to ALL businesses that employ staff.
For those without a reporting solution in place, we now offer a STP reporting service at an affordable and flexible price – we know one size does not fit all. Get in touch to find out more.
2. Pay your June quarter employee superannuation by June 30
June quarter super is due to be paid by July 28. However, it is only tax deductible for the 2019/20 financial year if paid by June 30. If you pay by July 28, you get the tax deduction in the following year. So, pay it early and get that extra tax deduction!
3. PAYG Payment Summaries
Employers using Single Touch Payroll are not obliged to provide PAYG Payment Summaries to employees. However, they are obliged to finalise their employer declarations by 14 July for 20 or more employees, or 31 July for businesses with 19 or less employees. Once finalised, employees can view their “Income statement” on myGov.
Employers not yet using STP must provide employees with PAYG Payment Summaries by 14 July.
4. Small Business Instant Asset Write-off
If you are a small business, you can get an immediate tax deduction for business-related capital assets acquired for $150,000 or less (GST-exclusive). This limit was increased from $30,000 on 12 March and has recently been extended until 31 December 2020.
HOT TIP - If small businesses using asset pooling have an asset pool balance of less than $150,000 at 30 June 2020, they are required to write off the entire balance of the pool in the 2020 financial year. This will have important repercussions for small businesses using simplified depreciation.
5. Primary Producers
Primary Producers can claim an immediate deduction for expenditure incurred on water facilities, fencing, and fodder storage assets. This includes silos, hay sheds, water tanks, dams, and bores.
6. Working from home – get your expenses right
Amidst the global pandemic, more of you have been working from home. Calculating your home office expenses is tricky and people often get it wrong. To keep it simple, the ATO have released a temporary “short-cut” method to be used between 1 March and 30 June 2020, which essentially allows for a deduction of 80 cents per hour, with no requirement for a dedicated work space as previously required.
But is this the best way to calculate your deduction? Let us crunch the numbers for you.
7. JobKeeper
For any sole traders and business participants claiming JobKeeper payments, don’t forget to include this as assessable business income.
8. Pay your personal superannuation contributions
The annual concessional cap is currently $25,000, regardless of age. Depending on your personal circumstances and the advice of your financial planner, it may be worth checking how much you have paid and whether you should top this up before June 30. Employees can now claim deductions for personal contributions too.
If cashflow is tight, you can carry forward any unused concessional caps for 5 years – for example if you contribute $10,000 for 2020, you can carry forward the unused $15,000 to use in addition to the usual $25,000 for up to 5 years.
9. Get your tax structure right
Starting a new business? Looking to expand your sole trader operations? Paying too much tax? Let’s look at your business structure. Price Perspective offers expert business and tax planning advice.
10. Get in the Cloud
It’s time to throw out the cash books and excel spreadsheets and get your business onto a cloud-based accounting solution, such as Xero. Cloud-based programs and apps help small businesses keep track of receipts, bills and invoices, allowing business owners to get back to what they do best. July 1 is the optimal time to change over. Price Perspective are Certified Xero Advisors and offer comprehensive set-up and training packages, as well as expert advice and ongoing support.
For further information, more practical tips, or to book in your 2020 tax, contact us on 1800 778 776 or kate@priceperspective.com.au.
Contact us today for more information, or to book in a 30-minute online or phone meeting to discuss your business and ensure you are COVID-19 prepared.
P: 1800 778 776
When you’re employed, your employer makes compulsory contributions to your superannuation. When you work for yourself as a sole trader, or you’re in a partnership, making super payments isn’t mandatory. But, it’s still an important thing to consider.
Retirement savings contributions are there to set you up in retirement. Generally, investing money into super will give you better investment returns than just putting it into a bank account. Plus, because the money is effectively locked away until retirement, there’s no temptation to dig into it in the meantime.
Chances are you’ve worked for an employer at some point, and have an existing super fund to add to. If you’ve never worked for anyone, it’s probably time to set up a fund. You can make regular contributions or make lump sums less frequently, to suit your cash flow. Contributions that you make will still benefit from tax savings, and these can mount up.
Another thing that’s very handy for the self-employed and generally offered through your retirement fund is insurance. Your fund may offer you life insurance and income protection insurance. Make sure that you take the time to really understand these policies, as the payout amounts may not offer enough money to replace the income you earn through your business. You may want to source an additional policy as a top up.
If your business is a company and you employ staff, you are responsible for making super payments for eligible employees. There can be serious penalties for failing to do this, so take the time to fully understand your responsibilities.
Contact Price Perspective on 1800 778 776 for more information.
Price Perspective is the proud owner of a fancy new client portal.
What’s a portal? Something that will be quite useful for a virtual office like mine!
Security
The portal allows my team to very securely share documents with clients and for clients to share documents with us.
In a day and age where fraud and cyber-attacks are rife, the portal provides “bank grade” security over the data it stores.
TFNs, bank details, all that important and confidential information that clients provide can be easily and securely stored in the portal for that extra peace of mind.
Digital document signing
Sick of having to print, sign and send those pesky declarations back to us for tax returns and BAS statements? Now you won’t have to.
The Price Perspective portal allows each client to set up a digital signature that can be used to sign documents as required. And even better – my team get an automatic notification when a client has signed a document, so a three-step process has now been reduced to one.
Digital signatures on the portal meet the legislated guidelines in Australia, as well as more stringent overseas standards.
The nerd in me is very excited!
At Price Perspective, we keep at the forefront of technology and use it to continually improve and enhance our services.
Contact us at kate@priceperspective.com.au
Do you have one of those big old paper cashbooks? Do you avoid using email or telephone to correspond with people? Do you prefer paper to computers?
If you answered yes to any of these, stop reading. I’m not the accountant for you.
If not, keep reading. I’m about to make your life easier.
In the good old days, businesses would drop in and see their accountant with a briefcase full of paperwork. The accountant would take the briefcase, and in around 4 weeks would return it along with a copy of their BAS or tax return, and a big fat bill.
Times are changing. Out with the paper, the briefcases, and the big, expensive set of financials. In with the apps, the cloud-based software, and real-time reporting.
Progressive accountants are embracing technology to provide better value to their clients. Many are using Xero, arguably the most dynamic and powerful cloud-based accounting software on the market. The software, apps and online tools available today are mind-boggling, and, as business resources, are widely undiscovered. Tapping into them can save you time, money, and compliance fees.
Wait. Why is an accountant giving you tips to reduce your accounting fees?
Because if I make your job easier, I make my job easier. If I can spend less time preparing your tax return, I can spend more time helping you grow your business and providing you with real value.
I work from a home office. My clients are all over the state. Having a virtual office using cloud-based technology allows me to provide them with real-time information and advice wherever they are, and wherever I am. They could be sitting in caravan in Broome. I could be sitting in a caravan in Broome. The geographical barriers are gone.
If they want to see me, I go to them. However, usually a phone call, email, a zoom meeting or a skype is all we need. It saves us both time, and as the saying goes – “time is money”.
I have replaced my plethora of books and research publications with online content subscriptions. I have replaced my shelves of thick paper files with electronic files. I have replaced my huge computer server with iPads and apps and cloud-based software. I don't need a big sterile office. Everything that an accountant does can be done online using cloud-based technology. Time is saved, lag and waste are reduced, systems are more accurate and efficient, and subsequently, fees are lower.
You don’t need to be in the same town as your accountant. Or the same state. Or the same country! I’m travelling to Canada in August, and I’ll be lodging all my June BAS statements from somewhere in the Rocky Mountains. All I need is wifi and a comfy chair. I’m happy to do yours too.
If you’re headed to Broome, or you just want a reliable accountant to modernise your accounting systems, flick me an email to kate@priceperspective.com.au.
Let’s chat. Or skype. Anytime, anywhere.
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