"Make Small Changes, Plan for Big Success in 2018"

on Monday, 04 December 2017. Posted in General

Make Small Changes, Plan for Big Success in 2018

Wilson Teis innovative snail

In this blog, we invite you to celebrate the small successes and take a look at the outlook for 2018. We also explore how you can make a difference in 2018 to improve your profitability and build more value into your business. How? By thinking big and planning for success through small but smart changes.

Benefits during emergencies exempt from FBT

on Thursday, 11 April 2019. Posted in General

Benefits during emergencies exempt from FBT

If your business assists employees during an emergency, for example floods, bushfires etc., then fringe benefits tax is unlikely to apply to the assistance you provide. While we doubt anyone would be thinking about FBT during a crisis, it’s good to know that the tax system does not disadvantage your generosity.

The exemption applies in a range of scenarios including natural disasters, accidents, serious illness, armed conflict, or civil disturbances

 As an employer you might provide benefits such as meals, temporary accommodation, clothing or transport, etc.

 

A budget, an election, and the legislation that hasn't made it through.

on Thursday, 11 April 2019. Posted in General

A Budget, an election, and the legislation that hasn't made it through.

A budget, an election, and the legislation that hasnlt made it through.

The February 2019 Parliamentary sitting days were the last opportunity before the Federal Budget for the Government to introduce or push through new legislation. Next month, on 2 April, Parliament reconvenes for the Federal Budget and it’s likely that an election will be called very soon after that (18 May 2019 is the last possible date for the election of the House of Representatives). Any legislation that has not passed when the election is called basically goes back to the drawing board and may never be enacted. 

With the focus of politicians firmly on the impending election and the asylum seeker debate, and the Government now in an untenable position following the loss of its majority in the lower house, tidying up outstanding business legislation was not the priority in February, and as a result, several key pieces of legislation are in limbo.

Extension of the $20k instant asset write-off

Originally introduced in the 2015-16 Budget, the popular $20k instant asset write-off has been extended across consecutive years. At present, small businesses are able to immediately deduct purchases of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2019.

In a pre-election sweetener, the Government announced that the threshold for the small business instant asset write-off will increase to $25,000 and the timeframe to claim the increased write-off extended from 29 January 2019 until 30 June 2020. 

The Bill enabling the changes was rushed into Parliament in February. While the upcoming Budget will provision for the measure, the outcome of the next election may determine whether the change comes to fruition.

Removing the CGT main residence exemption for non-residents

Currently, individuals are generally not subject to capital gains tax (CGT) on the sale of the home they treat as their main residence. If the home was your main residence for only part of the ownership period or if the home is used to produce income (for example, you use part of the home as business premises or rent out part of the property), then a partial exemption may be available. In addition, if you move out of your home and you don’t claim any other residence as your main residence, then you can continue to treat the home as your main residence for up to six years if you rent it out or indefinitely if you don’t rent it out (the ‘absence rule’).

The main residence exemption is currently available to individuals who are residents, non-residents, and temporary residents for tax purposes.

In the 2017-18 Federal Budget, the Government announced that non-residents and temporary residents would no longer have access to the main residence exemption under the CGT rules. The Government later confirmed that the exemption would still be available to temporary residents as long as they were residents of Australia under the normal residency tests.

The proposed rules would prevent non-residents from claiming the main residence exemption even if they were a resident for some (or even most) of the ownership period. The proposed rules do not allow for partial exemptions. If, however, you are an Australian resident at the time you sell, then the normal main residence exemption rules apply, even if you were a non-resident for some or most of the ownership period.

The draft laws become even more complex when dealing with deceased estates.

Under the proposed new laws, the transitional period for non-residents to make arrangements to either sell their property or restructure their affairs, ends on 30 June 2019.

The transitional period applies if the property was held at 9 May 2017 and is sold under a contract entered into on or before 30 June 2019. If there is no contract of sale in place by 30 June 2019, then the main residence exemption will not apply if the individual is a non-resident when the sale takes place.

With the legislation stalled in the Senate, non-residents are in a precarious scenario. If the legislation is enacted with the current deadlines, it will now be difficult to sell any property in time to meet the transitional period requirements.

We expect that the timing of the main residence exemption amendments will be addressed in the upcoming Federal budget. We will keep you posted!

Employer Superannuation Guarantee amnesty

Back in May 2018, the Government announced an amnesty for employers who had fallen behind with their superannuation guarantee (SG) obligations. Under the amnesty, employers could catch up or “self correct” outstanding SG payments for any period from 1 July 1992 up to 31 March 2018. The intent was to reduce the estimated $2.85 billion owed by employers in late or missing SG payments.

Running from 24 May 2018 for 12 months, the amnesty was to provide relief from some of the punitive penalties that normally apply to late SG payments. To take advantage of the amnesty, employers were to make voluntary disclosures to the ATO about outstanding payments.

But, the legislation enabling the amnesty has stalled in the Senate. Up until recently, the ATO was encouraging employers to make voluntary disclosures with the view that when the legislation passed Parliament, the amnesty would be applied. However, any employer who made a voluntary disclosure to the ATO will not benefit from the reduced punitive penalties unless the legislation passes, which at this stage, is highly unlikely in its current form.

Further, the Tax Commissioner has no discretion under the law to reduce the penalties applied to employers in this scenario, so if the legislation doesn’t pass, then there isn’t much the ATO can do to soften the blow.

SMSF membership limit changes

Rushed into Parliament before the break was a bill enacting the Government’s 2018-19 Budget measure increasing the maximum number of allowable members in a Self Managed Superannuation Fund from four to six.  The measure is before the Parliament but unlikely to be addressed before the election.

Superannuation guarantee and salary sacrifice

The Bill amending how superannuation guarantee is calculated, to ensure that an individual’s salary sacrifice contributions cannot be used to reduce an employer’s minimum superannuation guarantee (SG) contributions, appears to have stalled. The Bill has not progressed since November 2017. At present, the minimum amount of SG an employer is required to pay is based on an employee’s ordinary time earnings. As entering into a salary sacrifice arrangement reduces the employee's ordinary time earnings, it reduces the amount of SG that an employer is required to pay.

Craft beer excise changes

Australia’s growing craft beer industry were promised changes to the way excise applies to their product. The amendments extend the concessional excise duty rates that currently applying to draught beer in kegs and other containers exceeding 48 litres to smaller containers of 8 litres or more if these containers are designed for dispensing from commercial premises. Once again, this measure made it into Parliament but is unlikely to be addressed before the next election.

Future Drought Fund

The Future Drought Fund is a dedicated investment vehicle to secure a revenue stream for “drought resilience, preparedness and response”. The fund uses $3.9 billion in uncommitted funds from the Building Australia Fund. The Bill to create the fund made it into Parliament in November 2018 and passed the lower house on the last sitting day in February. The future of the fund is in the hands of whoever wins the next election.

Curbing payday loans and rent-to-buy schemes

The Bill curbing payday lending is unusual because it was introduced in the last sitting period by the Labor Party who have in effect, introduced the Government’s own exposure draft reforms from 2017. The reforms amend the consumer credit code to impose caps on total payments made under a consumer lease, require small amount credit contracts to have equal repayments and interval periods, remove the ability for small loan providers to charge monthly fees if the loan is fully paid out before the term of the loan expires,  prevent door to door selling, and strengthen compliance. In the wake of the Royal Commission and the recent Senate enquiry into payday lending, there will be reform, it’s just a question of when.

 

 

 

 

Utes- An Urban Myth?

on Thursday, 11 April 2019. Posted in General

two dogs and a utes                                               

Tax Office changes to how motor vehicle deductions can be claimed for utes and other motor vehicles  in tax returns can affect many. The only ways to claim vehicle expenses now are either using the kilometre rate method which allows up to 5000km to be claimed or the log book method.

Gone are the days when ute expenses could be claimed as 100% deductible if there was only incidental personal use. The Tax Office is requiring log books now for ute claims.

If a vehicle has depreciation, a loan and has high business or work use, then the log book method most likely would be the better outcome. However, you should speak to your accountant for the best result for you.  Audit action we have seen has shown that the ATO to be very aggressive in even circumstances where it is clear that the ute was used for work purposes only. If there is no log book, only the kilometre rate, based on a reasonable estimate, would be able to be claimed.

As well, carting tools and equipment home each day does not make the journey a tax deduction. There has to be no safe place at work to leave the valuable goods, no insurance or replacement by the employer if stolen.

So… if there is no log book, grab one and start it now. It needs to be for a 12 week continuous period. It is no good just saying that the journey was for work purposes. Specific details need to be entered. We have seen the ATO refuse to accept log books without this detail.

Employers with poor super guarantee payment history outed

on Thursday, 11 April 2019. Posted in General

Employers with poor super guarantee payment history outed

Employers with poor super guarantee payment history outed

Underpayment or non-payment of superannuation guarantee (SG) is a big issue. New laws will enable the ATO to advise employees (or former employees) of their employer’s poor SG payment and reporting history.

If an employer makes a complaint to the ATO, then a taxation officer is able to make a record or advise the employee about a failure or suspected failure by their employer or former employer to comply with their SG obligations. They can also share the Tax Commissioner’s response to the complaint. So, if the Commissioner finds there is a problem with SG payments, they can disclose this information to the complainant.

If you have any concerns about how impending legislation may impact on you, please give the team a call and we would be happy to clarify your position.

 

 

 

Under 20 Employees? What you need to do.

on Thursday, 11 April 2019. Posted in General

Under 20 Employees? What you need to do.

Under 20 Employees? What you need to do.

1 July 2019 is not that far away. If your business does not already use STP compliant software, you may need to upgrade your systems or implement new ones.

STP requires PAYG withholding and superannuation contribution details to be reported to the ATO as payments are made to employees or superannuation funds.

When it comes to PAYG withholding, employers will report details of salary and wages paid to employees as well as the PAYG withholding amount at the time the payment is made to the employee. Employers have the option of paying the PAYG withholding liability at the same time, although this is not compulsory.

What needs to be reported:

  • Salary & wages
  • Director remuneration
  • Return to work payments to individuals
  • Employment termination payments (ETPs) – not compulsory if the employee has died
  • Unused leave payments
  • Parental leave pay
  • Payments to office holders
  • Payments to religious practitioners
  • Superannuation contributions (at the time the payment is made to the fund)
  • Salary sacrificed amounts (from 1 July 2019).

 

 

 

Single Touch Payroll Extended to all Employers

on Thursday, 11 April 2019. Posted in General

Single Touch Payroll extended to all employers

Payroll Man

Single touch payroll extended to all employers

From 1 July 2019, single touch payroll – the direct reporting of salary and wages, PAYG withholding and superannuation contribution information to the ATO – will apply to all employers. What employers need to report will also be extended to include certain salary sacrificed amounts.

Employers with 20 or more employees have been required to use single touch payroll since 1 July 2018. The new rules push all businesses with employees into the single touch payroll system. This includes the situation where payments are made to the owners of the business in the form of salary, wages or directors fees.

The ATO has asked software providers to provide new low- cost payroll options for micro employers (1-4 employees).  MYOB and Xero have announced new $10 per month offerings (limited to 4 employees) with other software houses following suit.

 

 

What is your business worth? Will it be enough to fund your retirement?

on Monday, 30 October 2017. Posted in General

What is your business worth? Will it be enough to fund your retirement?

You might dream of spending your retirement on luxury cruises or perfecting your golf swing, but without a plan to exit your business, your “dream” may be just that.

Knowing what you want to do with your business in the future can seem challenging, but it’s a challenge you shouldn’t put off if you want to see your dreams come to fruition.

Too many business owners fail to develop a plan for exiting or leaving their business, and they often end up with a lifestyle that doesn’t match their goals.

Getting your business ready for the future - whether that involves selling up and paying for your retirement or confidently handing it over to the next generation - means knowing what your business is worth today and creating an exit or succession plan.

Conquering business challenges. Part 1.

on Tuesday, 24 October 2017. Posted in General

Conquering Business Challenges. Part 1.

It’s not easy being a business owner. There are plenty of challenges that can keep you up at night, but none of them will make you toss and turn more than dealing with financial issues. And one of the most pressing is cash flow management.

Add to that collecting money, employing the right people and marketing and sales, and you have a few more reasons to stay awake staring at the ceiling. But did you know these challenges can also have an impact on your cash flow?

Too many business owners focus on cash flow but don’t necessarily understand the connection to these common hurdles. If your collections, employees and sales and marketing aren’t working like a fine-tuned machine, you could be staring down the barrel of cash flow issues.

In part one of a two-part blog, we take a look at the first two key business challenges and what you can do about them.

Issue 1: Cash flow

 When money is going out but not necessarily coming in at the same rate, you might worry there won’t be enough in the bank to pay wages, suppliers, loans, tax or even super. You might also feel frustrated that there isn’t any money left over to reward you for all your hard work.

Conquering business challenges. Part 2.

on Tuesday, 24 October 2017. Posted in General

Conquering Business Challenges. Part 2.

In our first blog about some of the biggest challenges facing business owners, we explored managing and improving your cash flow. We also offered tips when it comes to collections (getting paid) and how those challenges affect your business’ cash flow.

In this second edition, we’ll delve into how attracting and retaining good employees as well as sales and marketing can also affect your cash flow – one of the most critical components of a business’ success.

Issue 3:  Employees

Your employees are inextricably linked to your cash flow. One of the biggest employee problems many businesses face is finding good ones in the first place, and then motivating and retaining them.

There’s a real need to understand what employees want to ensure they are happy, productive and eager to stay, all of which helps your bottom line. 

"5 Ways to Protect your Assets Seminar"

on Friday, 29 September 2017. Posted in General

5 Ways to Protect your Assets

hands protecting asset small crop

 

Seminar: "5 Ways to Protect your Assets"

Today, its not enough to just operate a well-run and profitable business, you also need to protect your assets from a variety of risks. 

Coral and Mike, would like to extend a personal invitation for you to attend a seminar on "5 Ways to Protect your Assets" on the 24th October 2017.

Our guest speaker is Mark Lowis, a specialist lawyer, who helps manage risk and protect your assets.

Seminar topics:

  • Understanding common business risks better
  • Learn about strategies to protect your assets
  • See how to put an asset protection plan together
  • Learn about the risks that you can't insure
  • Hear about other ways to protect your assets

Come along, learn how to protect your assets better, have a chat and enjoy some food and drinks with Coral, Mike, Mark and the Wilson Teis team.

Event details

Date: Tuesday 24 October 2017 Time: 5:30pm for a 6:00pm start to 7:30 pm

Where: Unit 1, 2 Maynard Street, Woolloongabba QLD 4102

Light refreshments will be served.

Please RSVP before 17 October 2017 on 07 3255 1455 or This email address is being protected from spambots. You need JavaScript enabled to view it..


spacer.jpg

Coral, Mike and the Team

The Wilson Teis Group deliver a large range of services including accounting and business services through Wilson Teis, exit planning and business improvement services through WT Value, bookkeeping through WT Bookkeeping; WT Financial delivers financial planning and investment services; and operations management services are brought to you through WT Operations.
WT Financial: Corporate Authorised Representative of Risk and Investment Advisors Australia Pty Ltd AFSL No. 238141

Tel: 07 3255 1455
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Fax: 07 3255 1466

facebook logo.gif twitter logo.gif linkedin.png

Address:
2 Maynard Street
Woolloongabba Qld 4102

 cfp logo.jpg
newsletter bottom info (removed wording).jpg

 

"Budget Briefing 2017"

on Monday, 01 May 2017. Posted in General

Budget Briefing 2017

Budget 2017 paper blue2

"Budget Briefing 2017"

Now that the dust has settled on another Budget we’ve sifted through the detail and picked out some of the planned key changes we think you should be aware of. These measures are subject to parliamentary approval.

"Be Fearless this Financial Year End"

on Monday, 01 May 2017. Posted in General

Be Fearless this Financial Year End

bungy jump fearless

Be Fearless this Financial Year End

With the end of the financial year just around the corner now’s the time to get your records up to date, and plan your year-end spending to get the best result when you do your tax return.

"Get Strategic in the New Financial Year"

on Monday, 01 May 2017. Posted in General

Get Strategic in the New Year

blocks strategy2

Get Strategic in the New Financial Year

If the end of the financial year fills you with dread it could be a sign it’s time to tackle a few of those business issues you’ve always parked in the ‘too hard’ basket.

In Business Two Heads are Better than One

on Monday, 01 May 2017. Posted in General

In Business Two Heads are Better than One

two heads croppedWhen you’re tackling the daily challenges of running a small business it’s easy to think a spare pair of hands or a lottery win might be the answer to your problems. But for lasting solutions and not just a quick fix, you need more brainpower not more manpower.

Regularly meeting your accountant or financial advisor to review the performance of your business, and really understand what’s behind the issues you face as well as how to tackle them, will keep your business afloat long after the lottery win has been spent.

The benefits of a periodic business review with your accountant

Running a small business means being hands-on, but it’s easy to get so caught up in the day-to-day that you never see the big picture.

Business review meetings with your accountant are a great opportunity for a regular look at the big picture. They’re a chance to nut out issues with someone who knows your business goals and has the expertise to help you reach them.

People are creatures of habit, in how we think and what we do; it can be hard to change the way we tackle issues and problems. A trusted adviser can help you look at things differently and come up with new solutions.

Just having someone to talk to who will offer advice and guidance with no other agenda than the success of your business can really help.  

If your goal is business growth then regular reviews can help you manage that growth so it moves at your pace, and help you quickly spot and deal with any obstacles.

Regular business reviews lead to more sales, bigger profits, more cash in your pocket, satisfied customers, less waste, a happier team, better work life balance, and job satisfaction.

[12 3 4  >>  

Enthusiastic
Team

Collective
intelligence

Practical
Advice

Stay in touch with our e-newsletter


Brisbane Office

Phone: 07 3255 1455
Email: gabba@wilsonteis.com.au
Unit 2 212 Logan Road
Woolloongabba QLD 4102

logan road map

Lowood Office

Phone: 07 5426 3111
Email: lowood@wilsonteis.com.au
Shop 2, 1 Walters Street
Lowood QLD 4311