Business Growth Network round 3, 2019: Discovering what every leader needs to know to keep their business innovative.
Australian financial markets are constantly changing and with these changes comes a new lending environment.
It is important to stay on top of and to understand these changes when approaching financial institutions (banks/lenders), to ensure your business receives a positive outcome.
We spoke to Ledge Finance Ltd, one of the markets leading finance facilitators, about their thoughts on the debt market as they currently see it, with a primary focus on the small-medium enterprises (SME) market and how it is being impacted. Further focus is on how this impacts the equipment finance market over the short to medium term – the lifeline of capital intensive balance sheet businesses.
Taking control of growth
How to address the challenges of sustainable growth in 2019 was under the spotlight at the recent BGN breakfast workshop. Using the idea of ‘learning in the flow of work’ we linked insights about business growth directly to day-to-day challenges of attendees.
Looking at taking control of growth we discussed:
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:
The Government has passed legislation that requires real time reporting of payroll data to the ATO at each pay period, making it mandatory for all employers to use Single Touch Payroll from 1 July 2019.Read more
Snapshot of the ALP Key Tax Policies
Snapshot Of The ALP Key Tax Policies (Compared To Coalition Tax Policies)
The table below outlines some of the key ALP tax policies of interest.
Our recent Business Growth Network (BGN) event focused on the important topic of leadership resilience.
Attendees discovered emerging leadership trends for 2019 and discussed boosting their probability of personal change success.
Interesting highlights included the idea of being more contrarian as a leader, why we think less is going to be more in 2019 and identifying (and dealing with) that one third of your team holding you back.
Attendees challenged each other on strategies to 100% guarantee success, including initiating 90-day accountability cycles then discussed ‘putting some rubber on the road’ with practical tips and tricks to put ideas into effect back in the office.
Please contact us if you’d like to discuss the thought-provoking leadership strategies and/or would like to learn more about our quarterly BGN breakfast events.
With Christmas fast approaching, it is usually the time of year where employers provide gifts or throw parties for their employees.
Follow this link to our article, which includes examples of how Fringe Benefits Tax (FBT) rules are applied and in some cases minimised, while also considering the other tax and GST rules to be aware of.
Please contact our office if you have any questions about FBT.
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?
In this article we explore what exactly crowdfunding is and the implications of crowdfunding for both the entity receiving funding and the entities that contribute or pledge money.
In this blog, we continue to explore the topic of agile leadership, which we covered in a recent breakfast we facilitated with business owners and CEOs.
The focus of our recent Business Growth Network (BGN) event was agile leadership and what exactly this means for individuals and businesses as a whole.
According to the simplest definition, the word “agile” means having the ability to move quickly and easily and being able to think and understand quickly.
Given the huge number of publications on the concept, it may seem like it is just another buzzword in today’s world of business. However, this is not the case when it comes to agile leadership. In its recent report, the World Economic Forum published a list of top skills required to be successful as leaders in 2020, many of them related to being more agile.
The Agile Business Consortium (the UK based not-for-profit body) released their first white paper on the topic in late 2017. To this day, this document remains to be an extremely relevant guide on how to be agile as a business leader. According to it, the keys to agile leadership lie in the concepts of Communication, Commitment and Collaboration. Much of our discussion during the BGN centred around these three words and in particular, the following nine principles:
Today, Treasury has released a consultation paper relating to the proposed amendments to the Div 7A rules that are due to apply from 1 July 2019.
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:
- New Div 7A loans will be straight line 10 year – principal and interest paid each year (previously 7 years)
- Interest rate will increase from current ATO benchmark rates, and will be the “Small business; Variable; Other; Overdraft – Indicator Lending rate most recently published by the Reserve Bank of Australia prior to the start of each income year”. This will result in substantially higher interest and repayments over the term of the loan
- Existing Div 7A loans will transition to new rules, however loan terms will not be extended
- 25 year loans WILL NOT be grandfathered. Transitional rules will allow for 2 years to transfer the loan to a new 10 year loan. Failure to convert these loans will result in a deemed dividend
- The concept of “distributable surplus” is being removed – this will result in previously exempt loans and payments being captured by the Div 7A rules and triggering tax that previously would not be payable
- Self-correction mechanism will apply to rectify Div 7A breaches – make good catch up payments will be allowed
- Amendment period relating to Div 7A loans, payments and forgiveness will extend to 14 years as an integrity measure (up from 5 year amendment period)
- Post December 2009 Unpaid Present Entitlements (UPE’s) will be captured by the new Div 7A rules (this includes Sub Trust arrangements set up under the Practice Statement 2010/4)
- IMPORTANTLY, IT IS STILL NOT YET CLEAR whether Pre December 2009 Unpaid Present Entitlements (UPE’s) will be included in the new rules. The consultation paper is specifically asking feedback asking “Should UPEs arising prior to 16 December 2009 be brought within Division 7A?”
The proposed changes will affect a large number of taxpayers and in some instances will require proactive tax planning to ensure tax effective structures are maintained during the transition.
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.
Fringe Benefit Tax Update
The ATO has this week finalised the guideline relating to the “minor, infrequent and irregular” use of Fringe Benefit Tax (FBT) exempt motor vehicles, and there are some notable changes from the previously released draft guideline.
These updates can affect any business that provides utes, vans and similar exempt vehicles to their employees and Directors.
Employers can rely on the exemption from FBT provided under this guideline, if:
We are pleased to announce the promotion of Chris Smith to the position of Director.
Chris Smith has over 14 years of experience in tax, superannuation funds and business advisory to various companies in Western Australia. He holds a Bachelor of Commerce, Accounting & Finance degree from the University of Western Australia.
“We are delighted to welcome Chris as a new Director,” said Tony Monisse, Brentnalls WA Managing Director. “Chris has been with us for over 4 years and his expertise in taxation, asset protection and estate planning have been invaluable to our growth in recent years.”
Chris Smith added, “It’s a great privilege to be able to join Tony and Chris Mandzufas, the other Brentnalls WA director, in this exciting and challenging role. I look forward to further strengthening our position as a key advisor in the matters of tax planning and transaction advice to Western Australian businesses.”
We are pleased to announce that our Director, Tony Monisse, will be co-presenting at GrowthCon Perth 2018.
We are pleased to announce that our Director, Tony Monisse, will be co-presenting at GrowthCon Perth 2018. The event will take place on Friday, July 27th from 8.30am to 12.30pm at Bendat Centre in Wembley, WA.
GrowthCon is a conference that will give entrepreneurs an opportunity to learn about growing a business from the top experts in finance, marketing, sales and technology.
The key topics the presenters will address are as follows:
There is a common understanding that the tax consolidation regime is for the “big end of town” only.
Whilst tax consolidation does feature in the tax structuring of larger corporations, the tax consolidation regime is not only for the big end of town, but can be effectively used by Small to Medium Enterprise Groups (“SME”), the minimum requirement to form a tax consolidated group being a resident company with at least one wholly owned subsidiary company (or unit trust).
The tax consolidation regime treats the members of a consolidated group as a single entity for income tax purposes. This means that intra-group transactions are ignored for income tax purposes and the group lodges only one income tax return for each income year. Therefore, whilst tax consolidation is a choice, for many SME corporate groups it will be a practical necessity.
Brentnalls WA Associate Chris Smith discussing tax planning and the opportunities you can take advantage of before June 30th.