2020 will be a year to remember for, in many cases, all the wrong reasons. Like all crises however, there are valuable lessons and many bright spots that will shape business and leadership positively for decades to come.
On 6 October, the Government released the Federal Budget for 2020/21.
It was a budget designed to stimulate the economy and create new jobs. Below is a summary of the key takeaways and some planning opportunities all business owners should consider taking advantage of.
The Federal Government has announced that the JobKeeper scheme will be extended to 28 March 2021. It was previously scheduled to end on 27 September 2020. There will be changes to both the eligibility requirements and payment amounts.
The eligibility rules for employees remain unchanged. Particularly noting that the employees must have been employed as full-time, part-time or long-term casual (employed on a regular and systematic basis for at least 12 months) as at 1 March 2020.
By Chris Smith
For businesses to maximise their cash position, they should consider the following tax planning opportunities before 30 June.
By Chris Mandzufas
A realistic and detailed budget is crucial for guiding your business to tackle unexpected challenges and to ensure you stay on track to grow.
It may seem obvious that business growth can only occur when there is money available for reinvestment, but it is surprising how many businesses do not budget and do not track their performance against a budget.
In the current environment, a realistic and detailed budget is a very important tool for providing valuable information, guiding your business to tackle unexpected challenges and most importantly to ensure you stay on track to grow.
By Tony Monisse
Learn why it is important to forecast the profit & loss, cashflow and balance sheet.
As I see it, a budget is merely a forecast prepared at a point in time. This point in time is usually tied to the end of the financial year and the business’ planning cycle.
In contrast, a forecast is frequently updated based on the changes in the operating environment e.g. winning a new contract, losing a key customer or a change in the staffing situation.
On 21 July the government announced proposed changes to JobKeeper including an extension through to 28 March 2021. Read our summary of these updates here, or visit the ATO’s website for further details.
From 20 April 2020, you can enrol with the ATO for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of May to claim JobKeeper payments for April. Payments will start being made to businesses in May.
On 31 March 2020, the WA State Government announced economic relief measures for West Australians.
Key details of the package are:
Small and medium businesses:
Household assistance:
Should you have any questions regarding this relief package, please do not hesitate to contact this office on (08) 6212 7200 to discuss.
On 22 March 2020, the Federal Government announced further economic stimulus measures for individuals, businesses and the banking sector, to support Australia through the unprecedented impact of COVID-19.
This economic plan will provide significant benefits to small and medium-sized businesses and households in addition to the stimulus package announced on 12 March.
The key announcements relate to:
More details below:
The Federal Government last week unveiled their $17.6 billion stimulus package — which includes grants of up to $25,000 for small business, support for those employing apprentices and accelerated depreciation amongst other measures.
On 2 April, the Government released the Federal Budget for 19/20.
Below are the key takeaways that may be relevant to you and your group:
Focus on Your Cashflow in the Lead up to the Christmas & New Year Holiday
Brentnalls Affiliation National Conference 2018
My Learnings from China – What Makes a Success Business & Do You Measure Your Competitive Advantage?
Proposed Changes to Division 7A
Practical Advice on Agile Leadership
Brentnalls Affiliation in the Top 100 Accounting Firms for 2018
Every Bit Counts
Did You Know We’re on LinkedIn?
The release of this paper is significant as it is the first detail provided by the Government on how the new proposed rules are intended to apply.
Prior to today’s release, the Board of Taxation’s report outlining recommendations to Government (finalised in 2014) was all we had available as a guide on how the new rules may be applied. Treasury has made substantial changes from those original recommendations.
The notable points that may affect your group are:
We will continue to keep you informed of the changes as further updates come to hand.
The latest edition of our Newsletter is on its way to your Inboxes! In it, you will find our Director’s reflection on the current financial market situation, Levi’s take on the importance of understanding the numbers, GrowthCon update & more.
Follow the link to access the Newsletter Download PDF of our August newsletter.
Business owners/farmers should recognise that the need for a fully discussed succession plan is paramount in any business/farming situation. A natural progression from one generation to the next (or in case of unexpected or premature death) through the deceased’s Will. Poor succession planning is the cause of much “hurt in business/rural Australia.” Read more
A Self Managed Superannuation Fund (SMSF) is a type of super fund set up for those who wish to manage their own superannuation assets privately, rather than be a part of a larger fund where members pool their super funds and these are managed by professional fund managers. It gives the members much greater control over the investment decisions, but also require far greater input by the members of the fund. All super funds are required to comply with their relevant regulatory bodies and with SMSF‘s, trustees are required to oversee these compliance requirements. Read more
The key areas of any Business that require ongoing maintenance to ensure the Health and Wealth of your business are: Read more
It has often been said that an average strategy well executed will always outperform a superior business strategy which is poorly executed. In fact in terms of effort, the development of thebusiness strategy is 10% of the effort and the execution of the business strategy is 90% of the effort. Read more
There are many ways to value a business, however the most commonly used valuation methodology for a profitable trading business is the Capitalisation of Profits Methodology.
This methodology is based on the average earnings of the business (before interest and tax – EBIT) multiplied by a capitalisation rate.
Therefore to increase the value of your business, a business owner should focus on: Read more
• You need to go yearly but you delay it for as long as you can
• Your past sins are obvious as soon as you open your mouth. They can be even worse when the dentist digs a little deeper and does an x-ray!
• The feeling of an unknown outcome – will you get the all clear?
• Feeling like you can’t get your point of view across even when they ask you questions
• The expensive bill at the end of the visit
• The ongoing maintenance and review so you don’t lose all of your teeth. Read more
The 2011 Federal budget signaled significant changes to the way Fringe Benefits Tax will be calculated on the use of motor vehicles. Traditionally, motor vehicles have formed an essential part of many remuneration packages and it was initially feared that the changes to the legislation would make it prohibitive for employers to use this carrot to entice and retain employees. However, closer analysis suggests that there continues to be scope to tax effectively package motor vehicles into employee’s salary under the new regime. Read more
Many exceptional companies have bonus plans to reward employees.
Advantages include:
Why Consider the Contractor issue now?
The contractor issue is not at all new, nor has it been subject to any dramatic recent change. However there are a number of diverse factors that have brought this issue back to the spotlight.
