Business Services, Specialist Services , Tax, West Currie Consultants, Edenhope, Nhill, Australia

COVID-19 Lockdown Support for Victorians

Sat, 24 Jul 2021 23:00:00 GMT

Lockdown Support For Victorians

The Victorian Government understands the impact the current lockdown has had and will continue to have on all Victorians. The Government has announced numerous payments that are available not only for businesses but also for individuals that have been affected.

To help you understand what payments are available we have provided a breakdown of each payment below.

Support For Businesses

Cash grants will be paid directly to businesses that have previously received grants from the Business Costs Assistance Program Round Two or the Licensed Hospitality Venue Fund 2021. This does include Regional businesses.

Businesses whom have previously received the grant from the Licensed Hospitality Venue Fund will receive a top-up amount of $3,000 and business that have received the grant from the Business Costs Assistance Program will receive a top-up amount of $2,000.

If a Business has not received any of the grants listed above they will not be eligible to receive a top-up amount.

Support For Individuals

COVID-19 Disaster Payments

Individuals whom are unable to attend work, lost income and/or are unable to access paid leave entitlements may be eligible to receive the Disaster Payment. If you and your partner have both been affected by the lockdown you can both claim for the Disaster Payment.

Sole traders may also be eligible for the Disaster payments if they are unable to operate from their home and if they have not received the state business grant.

The Disaster payment will not be accessible until the 23 ^rd July 2021.

Depending on how many hours the individual has lost per week and if the payment if on or after the third period of lockdown will decide how much the disaster payment amount is. If the individual has lost between 8 and 20 hours per week they will receive $375. If the individual has lost 20 or more hours they will receive $600.

The disaster payment is available for individuals if they:

And you:

Pandemic Leave Disaster Payment

Individuals that have been advised by health authorities to self-isolate or quarantine may be eligible for the Pandemic Leave Disaster Payment due to:

If you are eligible you will receive $1,500 for each 14 day period they are required to self-isolate or quarantine. If you and your partner have both been affected by the lockdown you can both claim for the Disaster Payment.

The Pandemic Leave Disaster Payment is available for individuals that:

The payment is taxable and you will need to declare it in your income tax return.

The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information. If expert assistance is required, professional advice should be obtained.

Superannuation Guarantee Obligations

Tue, 18 Aug 2020 23:00:00 GMT

This blog will focus on the Superannuation Guarantee Obligations - something every employer should understand.

The Super Guarantee is money you pay to a complying super fund for your workers to provide for their retirement. Generally, if you pay an employee $450 or more (before tax) in a calendar month, you have to pay super, on top of their wages. The minimum you must pay is called Super Guarantee (SG).

Did you know…

Default Superannuation Fund

Before you offer your employees the option to choose a super fund, you must have a fund that you will pay their super into if they can't or don't choose their own fund. This fund is referred to as your default fund.

Your Default Fund must:

To nominate a super default fund simply contact the fund and complete an application form (this is available to complete online with most funds).

Employers MUST provide employees with a super fund Standard Choice Form (available from West Currie Consultants or the Tax Office) unless they give you the details of their chosen super fund first.

When providing the employee with the Standard Choice form you must complete Section B with your default fund details.

You need to keep a copy of the completed Standard choice form for your own records for five years. You don't need to send a copy to the ATO or your employee's chosen super fund.

PLEASE REMEMBER THAT EMPLOYEE SUPERANNUATION IS NOT A CHOICE BUT A MANDATORY OBLIGATION AS AN EMPLOYER

If you require any assistance or advice don't hesitate to contact one of our team members at West Currie Consultants.

Economic Response to Coronavirus

Sun, 22 Mar 2020 22:00:00 GMT

Well what an ever-changing time we live in. Regulations, laws, business lives and stimulus packages all changing daily that complicate and confuse information in relation to the impact of Coronavirus (COVID19)

Business shutdowns

From midday on Monday 23 March, 2020, Stage 1 restrictions are in place for places of social gathering. Please note: Victorians will still be able to go to the supermarket, the bank, the pharmacy and access other essential stores, like petrol stations and convenience stores.

The following facilities will be restricted from opening:

· Pubs, registered and licenced clubs (excluding bottle shops attached to these venues), hotels (excluding accommodation)

· Gyms and indoor sporting venues

· Cinemas, entertainment venues, casinos, and night clubs

· Restaurants and cafes will be restricted to takeaway and/or home delivery

· Religious gatherings, places of worship or funerals (in enclosed spaces and other than very small groups and where the 1 person per 4 square metre rule applies).

Victoria announcements

Business Support Fund

A $500 million Business Support Fund will be set up to assist small to medium businesses most impacted by the Covid-19 virus.

Federal Government Announcements

Tax-Free Cashflow

Between the March 2020 and June 2020 BAS/IAS lodgements, employers will receive a minimum of $20,000 and up to a maximum of $100,000 towards their BAS payments where they had employees. Payment will only be available to employers active before 12th March 2020.

There will be a further round of refunds in the July 2020 to October 2020 period for an additional minimum of $20,000 and maximum of $100,000.

The ATO will take the additional payment into account when lodging your return for you. In the event the additional payment puts the BAS/IASs into a refund position this will be refunded back to the business.

Please see this factsheet FACT SHEET (please note this will download as a PDF) for more information or contact us for any queries

IMPORTANT – No change to employee superannuation guarantee payment due date

Please note, there is no change to the due date for payment of employee superannuation guarantee. The March quarter payment will still be due to employee funds by 28 April 2020. No concessions are available for this.

Apprentice & Trainees

No changes have been made to this initiative which provides employers a 50% reimbursement of employee apprentice/trainee wages for nine months, to a maximum of $21,000 per apprentice/trainee ($7,000 per quarter).

This can be applied after undertaking an eligibility assessment provided by an Australian Apprenticeship Support Network (AASN).

For more information refer to www.dese.gov.au or www.australianapprenticeships.gov.au

FACT SHEET (please note this will download as a PDF)

Asset Write-Off

The government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million).

This proposal applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used, or installed ready for use in this timeframe.

Accelerated Depreciation

The government is introducing a time limited 15-month investment incentive to support business investment and economic growth over the short-term, by accelerating depreciation deductions. A deduction of 50% of the cost of an eligible asset on installation will apply, with existing depreciation rules applying to the balance of the asset's cost.

Eligible businesses are businesses with aggregated turnover below $500 million.

Eligible assets are new assets that can be depreciated under Division 40 of the Income Tax Assessment Act 1997 (that is, plant, equipment and specified intangible assets, such as patents). This does not apply to second-hand Division 40 assets, or buildings and other capital works depreciable under Division 43.

This applies to assets acquired after announcement and first used or installed by 30 June 2021.

Other Federal Government Measures

Early Release of Superannuation

The government is allowing individuals affected by the coronavirus to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans' Affairs payments.

From mid-April 2020, eligible individuals will be able to apply online through MyGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months. The exact timing will depend on the passage of the relevant legislation.

Eligibility for early release of Superannuation

To apply for early release, you must satisfy any one or more of the following requirements:

· You are unemployed.

· You are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.

· On or after 1 January 2020, either

· you were made redundant

· your working hours were reduced by 20% or more

· if you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.

ATO Help

If you are experiencing financial difficulties with your tax and super obligations because of COVID-19 the ATO will be assisting employers with deferral of payments and extensions for lodgements. Please contact us for any assistance on these matters.

West Currie Consultants Assistance

If you have friends, family or neighbours that you think could use this information please feel free to pass these articles on.

We are here to help, if you any queries or concerns please do not hesitate to contact us on 03 55851522 or via email.

2019 Federal Budget - Budget or Election Promise?

Mon, 01 Apr 2019 22:00:00 GMT

The Federal Budget - budget or election promise?

The 2019 Federal budget was rolled out last night with the Treasurer handing down the first budget surplus in 12 years. The budget is once again overshadowed by the Federal Election looming in May. If Bill Shorten and the labour party are to take the seat in government, many of these budget announcements may not be implemented. It is important to remember that the budget is merely a proposal put forth by the government of the day, it is not actually law until these policies get passed by the newly elected party

However, with that being said we now have a look at the budget measures that affect us as individual or business tax payers:

1. Personal Income Tax – new rates are proposed, but not to take effect until 1 July 2022. So as it stands at the moment tax rates are seeing no change.

2. Low and Middle Income Tax Offset (LMITO)– will mean a reduction in tax for taxpayers.

· Taxable income of $37,000 or less – LMITO of up to $255,

· Taxable incomes between $37,000-$48,000 – LMITO set will increase at a rate of 7.5c per dollar with maximum offset of $1,080

· Taxable incomes between $48,001-$90,000 - LMITO of $1,080 is proposed

· Taxable income of $90,000-$126,000 – LMITO will phase out at a rate of 3c per dollar

A small amount, but we will take whatever we can get, every little bit counts.

3. Increase in the Medicare levy low-income thresholds – this means a small reduction in the Medicare levy payable.

4. Small Business – the immediate write-off for small business has increased to $ 30,000 from 7.30pm 2 April 2019 this has increased from the $20,000 in previous years. A proposal of an increase to $25,000 enacted on 29 January 2019, if legislated the measures will be as follows in the table below. The $30,000 instant asset write off also now applies to medium businesses with a turnover of less than $50 million, it has not in the past.

Proposed changes to the instant write-off thresholds

· Please note : If you are looking to purchase an asset and take advantage of these measures please contact the office so we can clarify the timing and the write off amount available.

· Reminder of accelerated depreciation rules:

i. Immediate deduction for Water Facilities – dams, tanks ,bores, irrigation channels, pumps, water towers and windmills

ii. Immediate deduction for Fencing Assets – a repair of a capital nature, addition or extension

iii. Immediate deduction for Fodder Storage Assets – silos and tanks used to store grain and other animal feed first used or installed ready for own use on or after 19 August 2018

5. Luxury car tax refunds – for vehicles acquired on or after 1 July 2019, eligible primary producers will be able to apply for a refund of any luxury car tax paid, up to $10000, was previously $3000.

6. Superannuation –

· Removal of Work Test - from 1 July 2020 people aged 65 and 66 years of age can make voluntary contributions without meeting the work test. Currently people aged 65-74 can voluntarily contribute to super without meeting this test. Removal of the work test for people aged 65 and 66 enables these taxpayer's to contribute to super and get the concessional tax deduction, which for the 2018 – 19 financial year is $25,000. This is a great initiative for the super space!

· Bring forward rule – it will allow those aged 65 and 66 to make up three years of non-concessional contributions under the bring forward rule, currently those aged 65 and over cannot access these arrangements

· Spouse Contributions – currently those aged 70 and over cannot receive spouse contributions. The proposal is that individuals up and including the age of 74 will be able to receive spouse contributions.

7. Rural areas – there is a commitment to major spending in rural areas to expand water infrastructure and provide drought relief.

As always given our rapid changing governments, ' watch this space' , the budget proposals can change with a change of government.

Some links to some good articles summarising the 2019 Federal Budget -

ATO - https://www.ato.gov.au/General/New-legislation/Latest-news-on-tax-law-and-policy/?fbclid=IwAR21Mv6dmOoWN7IqvO1PqFyvOThxmQoETOcOkLuU8sOgfvWxpBDCSGFrCNs

Grant Thornton - https://www.grantthornton.com.au/globalassets/1.-member-firms/australian-website/mid-size-business/pdfs/gtal_2019_federal-budget-2019-20.pdf

CPA Australia - https://www.cpaaustralia.com.au/~/media/corporate/allfiles/document/media/federal-budget-report-2019-20.pdf

ABC - https://www.abc.net.au/news/2019-04-02/federal-budget-2019-winners-and-losers/10939098

NTAA - Budget 2019.pdf

Record Keeping & Substantiation for Small Business

Wed, 04 Jul 2018 23:00:00 GMT

It's never too late to start a good record keeping system for your business. It's an important part of being a small business owner, keeping good records of your transactions and tax invoices will help you monitor the performance of your business as well as comply with your tax obligations.

Benefits of record keeping

While it can be tedious, there are many benefits to keeping good records.

It can help you to:

The legal requirements for keeping business records

By law your records must:

You can incur penalties if you do not keep the right tax records.

Storing records electronically

You're able to store your records electronically, but you must make sure they are:

The records must also be on a computer or device that:

The tax records you have to keep

You will need to keep records to help you prepare your business activity statement (BAS), and annual income tax return. Depending on your tax obligations you may need to keep other records as well. If you have any concerns or questions please feel free to contact our office for more information.

Here's a list of some of the tax records that small business owners have to keep:

Income and sales records

Records of all income and sales transactions, including tax invoices, receipts books, cash register tapes and records of cash sales

Expenses or purchase records

Records of all business expenses, including cash purchases. Records could include receipts, tax invoices, cheque book receipts, credit card vouchers and diaries to record small cash expenses. If you bought something for your business, but sometimes use it for private use, you also need to keep records showing how you worked out how much of its use is private.

Year-end records

These may include lists of creditors (people you owe money to) or debtors (people that owe you money). It also includes expenses you incur buying, maintaining, repairing and selling business assets or stock. You should keep worksheets to calculate the decreasing value of your assets (also called 'depreciating assets'), stocktake sheets and capital gains tax records.

Bank records

Your banking records can include things like deposit slips, cheque butts or payment records, bank and credit card statements, and loan or lease agreements.

Your business and personal expenses should be kept separate. Separate business bank accounts are mandatory for partnerships, companies and trusts. If you're a sole trader, a separate business bank account can also make your records easier to manage.

Goods and services tax (GST) records

If you are registered for GST, keep all tax invoices from your suppliers, which will help you claim GST credits. You must keep any other document that records adjustments, or a calculation made for GST purposes. You report GST amounts and claim GST credits for purchases on your business activity statements (BAS).

Fuel tax records

To claim fuel tax credits for your business, your records must show you:

Employee and contractor records

If you have workers, you will need to keep records of any:

Your tax and super obligations will change depending on whether your worker is an employee or a contractor, so it's important you determine what your worker is.

If you would like to know more information in relation to record keeping and substantiation, call us today on 03 55851 522 or call into one of our offices.

Tax Planning - Have you done all you can to minimise your tax liability?

Tue, 08 May 2018 23:00:00 GMT

As part of good business management and governance it is important to plan and minimise, where possible, taxation liabilities.

The compliance requirements of quarterly BAS preparation means that business owners are usually in a position to look at actual figures for 9 months and then make predictions for the remaining section of the financial period.

The estimates can be based on historical data or could be based on what the business owners anticipates will happen. That is for both income and expenses.

Armed with all this information, tax liabilities are able to be calculated for the individuals or the business depending on where the taxing point is.

After the tax liabilities have been calculated, it is necessary to examine potential strategies to minimise this tax liability.

Deferring income to a later year or accelerating planned expenditure, assist in reducing your current year's tax.

However, it is important that a tax minimisation strategy is examined with the overall tax savings and also the cash available.

For example
When considering putting money into a FMD with borrowed money you need to look at the best usage of your money:
                         Overdraft interest rate 8%
                   FMD Interest Rate 2%
                         Primary Production Average Tax Rate 12%

Under these circumstances there is no advantage in tying money up in an FMD for 12 months to save 12 cents in the dollar tax and only receive 2% on the money that is invested.
Likewise to put money into superannuation in these circumstances would also not be a wise use of money unless you are closer to retirement. Any superannuation contribution that you claim as a tax deduction attracts 15 cents contributions tax.

As you can see tax planning is not just spending all the available funds that you have, rather it is looking critically at you position and then planning a strategy which utilises available resources in the best possible way and to limit cents in the $ tax obligations.

If you would like to know more information in relation to your current position and potential strategies, call us today on 55 851 522 or call into one of our offices.

Immediate Superannuation Reporting Changes

Thu, 15 Feb 2018 22:00:00 GMT

IMPORTANT CHANGES TO SMALL BUSINESS SUPER CLEARING HOUSE

If you currently use the Small Business Superannuation Clearing House (SBSCH) to lodge your employee's supera nnuation guarantee amounts please note they will join ATO online services on 26 February 2018 and will no longer be accessible with the current user ID and password authentication after 19 ^th February 2018.

To enable the ATO to effectively transfer your data across to the new system payments via BPAY or EF T must be completed prior to 3pm AEDT on 19 February 2018. You can still review and update other information within the system. If you pay employer superannuation contributions mon thly, we suggest you complete your payments prior to this time.

There will be no access to the SBSCH from Tuesday 20 February to Sunday 25 February inclusive.

As a result of integrating with online services, the new SBSCH will have functionality including the ability to sort employee listings and payment by credit card.

If West Currie Consultants currently lodge superannuation on your behalf, we will continue to manage your super obligations through our online channel.

However, if you lodge your own super online via SBSCH you can contact us at West Currie Consultants for assistance in the transition or alternatively you can go to www.ato.gov.au and search SBSCH joining ATO for all your transition information.

What is Cloud Accounting?

Tue, 07 Nov 2017 22:00:00 GMT

It's simply using the internet to access software, data and storage. Cloud accounting uses the internet, via a web browser, as the means of accessing the accounting software. Accounting packages can be purely internet based like Xero, or the software is able to be accessed in the cloud and at a desktop level, like Reckon and MYOB Account Right. Cloud-based accounting software does rely on good home or business internet connection speeds and unfortunately using a satellite internet connection doesn't quite "cut the mustard", constant improvements are being made to improve the internet access and reliability daily.

Cloud-based accounting software offers a number of benefits for businesses including:

· Ease of access is the biggest advance. Online accounting means just that – it is online! You can access your businesses financial data from anywhere worldwide and at any time, from any compatible device.

· Price is always important. A monthly access fee is generally paid which usually works out less than the cost of buying the software and paying your annual subscriptions.

· The ability for business owners to interact with West Currie Consultants in real time instead of having to send the data file to us.

· The software is automatically kept up-to-date by the software provider. This stops you continually having to update software as previous version become obsolete.

· Backups are made frequently and automatic in online accounting packages, and in case of a hard drive crash, data recovery can be done easily. Therefore, less chance of losing data.

Nothing is perfect, so what are the disadvantages of online accounting?

· If your internet is down, you lose the ability to access your data.

· Customer Support can sometimes be restricted to emails only – no human contact.

· You have to depend on third-party services to keep your data secure.

· Antivirus software and firewall protection must be kept up to date

· You will have to keep your subscription current to maintain access to your online data,

If you're thinking of moving to a cloud based accounting software package like Xero, Reckon, Intuit or Myob, here at West Currie Consultants we invest considerable resources into ongoing staff training to ensure we can recommend the best accounting solutions for your business. Choosing the right package for your business can be difficult, as there are over sixty accounting packages available in Australia.

If you enjoyed this post, I'd be very grateful if you'd help it spread by emailing it to a friend, or sharing it on Twitter or Facebook. Thank you! - Kerry Pretlove

Super Changes 1 July 2017

Thu, 01 Jun 2017 23:00:00 GMT

Review your plans and stay on track

As the 1 July 2017 is fast approaching and there have been numerous changes to superannuation. These changes will have an impact on your retirement strategy and possibly the contributions that you make. Care needs to be taken to avoid contributing in excess to the levels – which will result in tax penalties.

West Currie Consultants has set aside a day for Robert Goudie – Financial Adviser to attend our Edenhope Office.

As you have expressed concerns or raised issues regarding superannuation in the past, I thought it was an opportune time for you to attend a no obligation free service to review your situation and ask any questions or concerns regarding your superannuation, your retirement or transition to retirement.

See above, a flyer outlining when he is attending - Please contact the Office as soon as possible to secure your appointment.

If you have any queries please do not hesitate to contact this Office.

Financial Wellness in 30 Days

Wed, 03 May 2017 23:00:00 GMT

As New Year's Eve has come and gone but the beginning of the financial year is fast approaching, I thought it might be a good opportunity to introduce a Financial Wellness Program over the next couple of months.

Similar to when making a News Years resolution, we all should aim to do an annual financial health check to see whether there are fundamental improvements to be made which would assist with achieving your goals. Like all resolutions this program requires commitment, if you are to jump out anywhere along the way the end financial goal or reward may not be as great.

Over the next couple of months, I am going to provide you with a 30 day program which requires you to examine one financial aspect of your life each day. Remember that some of the days may not be applicable to you at this stage, however, remember that is it always good to have knowledge and/or the positives or negatives about a financial product prior to jumping in head first.

The following ten dot points correspond with the first ten days of the Financial Health check -

1. Before getting too far into the wellness check it is important to have an idea of the big picture . When you are working towards an ultimate goal it makes the day to day decisions easier. Set yourself a goal of where you would like to be in 12 months, 2 years, 5 years and even 15 years. We are all at different stages of the life cycle – for me at the moment I am wanting to save for overseas travel and need to plan my retirement. Your goals also need to be measurable, being measurable means they can be managed. For example, my goal is to travel overseas, put more specifically - I want to go to China in July 2018 and I want to have $12,000 available for tickets, tours and spending money.

2. Do a mini audit on your wallet - you need to know where you spend your money. Before setting up a budget to achieve your long term goals you need to work out where you are spending your money at the moment. To be able to achieve goals and save some money you need to spend less than you earn.

3. Planning and setting a budget - there is no point setting a budget which is just not workable or is not based on reality but is a figment of your imagination? If you buy a coffee daily as part of your normal routine - then there is no point depriving yourself of that . If you make the budget too hard and difficult to achieve – then you want stick to it and therefore it will be like that News Year resolution that you make at 12 midnight and you have broken it by 12 midday on the 1 ^st of January.

4. Change of attitude to finances - being financially fit needs to be considered as important as physically fit and healthy. Our attitude to money, savings credit and finances is learnt behaviour mainly form our parents and sometimes our grand parents. Sometimes this can be good or really bad. It may be that you need to modify your attitude to finances in order to feel confident that you are able to achieve your financial goals.

5. Talk - feel confident to talk about money with partner, family, friends and work colleagues. Talk about your goals and where you see yourself in the future. Remember always be open and honest and always ask for opinions especially from your partner. Remember that you are both in this together and you need to have a level of understanding and agreement on financial goals and future directions.

6. Insurance – This is a topic that people are either comfortable talking about or they hate the topic and think that the whole concept is silly. However, you need to re-assess you and your families insurance needs - Assess whether you and your family can continue to pay your accounts if something untoward was to happen. Look at your Life insurance, total and permanent disabilities, income protection insurance and perhaps mortgage protection insurance. Insurance is a means of reducing risks associated with life – compensating for the bad things that can happen – but it will not stop the bad from happening.

7. Be a better saver - Easier said than done! However, sometimes the setting up a direct debit so that money is less available is the easiest way to compulsory save, especially if you are an impulsive purchaser of items that you really want without questioning whether you actually need the item. From your salaries you should budget on allocating at least 20% to savings, 50% on essentials in life, and 30% to lifestyle. Sometimes the amounts allocated to lifestyle can be trimmed and a greater amount put to savings. Compare the amount that you are spending on lifestyle choices into the amount that you earn on an hourly basis. For example, if you earn $25 per hour after tax in your employment and then you go and buy takeaway food one night - pay $60 for all your friends to eat. You need to stand back and think wow I just worked 2.4 hours to shout tea. This puts earnings and lifestyle choices into perspective.

8. Understand the difference between good and bad debt - Bad debt is getting a loan for a depreciating asset like a private car, a boat, a gadget, a toy or a credit card that you are unable to clear at the end of the month. Good debt is when we borrow for an asset that is going to increase in value like property or shares. Used wisely good debt increases your wealth. You should have a look at your bad debt to see whether there is a better financing choice that will enable a better use of your money or try to clear that bad debt as soon as possible.

9. Make sure that you always maintain good records - A fundamental aspect of financial wellbeing is knowing what money comes in and where that money is going. You cannot do this unless you have good records. Take the time weekly to check what is leaving your account in line with the receipts that you have in your wallets. Your need to make sure that your partner is also involved in this process so that you can really assess where money is going and what it is being used for.

10. Know your credit rating - this will be the first thing that a bank or financial institution will look at when you apply for a loan, making sure that you pay accounts on time and when they are due will help your credit rating. You can review your credit rating at the ASIC Money Smart Website, follow the link below - https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics/credit-scores .

This is a starting list of things to do over the next 10 days. I want you to analyse these areas before I introduce the next steps. If you have any concerns, want to discuss any of these measures or want help with working out a spending and savings budget – just call, email or drop into to West Currie Consultants and the team will assist you in achieving financial wellness and your financial goals.

Keep your eye out for the next 10 steps to financial wellness in the coming weeks.

Motor Vehicle Claims

Sun, 16 Oct 2016 22:00:00 GMT

For many years we have had four methods for claiming the use of a motor vehicle in our business or for employment purposes. These methods have been:

· Log Book

· Cents per km – depending on the engine capacity of the vehicle and up to 5000 business kms

· 12% of Original Cost of the Vehicle

· One third of all expenses

The Australian Taxation Office as part of its simplification program have reduced the methods to just (2) two –

(1) Log book method

(2) Cents per Km – up to 5000 business Km's – this is now at one flat rate of 66 cents per km

This took effect from 1 July 2015, however, it appears that some business owners have not quite understood the impact that the removal of these methods have had on their ability to claim motor vehicles expenses and also the GST on these business expenses. For example. if you previously claimed 12% of cost of your motor vehicle, which provided you the best claim, this method has been removed and unless a logbook has been kept you are limited to the 5000 business km's which doesn't always provide the best claim.

During the 2015/2016 financial period information was detailed in our West Currie Consultant newsletter, promoted through our Facebook page, website and direct communication with clients to ensure that they acknowledged that they needed to reassess their motor vehicle methods and that if a client was not comfortable with limiting your claim to 5000 business Km's then you were compelled to complete a log book.

If there is no log book maintained during this period, then the total deduction is limited to $3300.00 – 66 cents per Km. The simplification for the cents per/km method was altered to a flat rate regardless of what engine capacity the vehicle is. This method also restricts the amount GST credits claimable on motor vehicle expenses to only 20%.

As you can see this budget measure for simplification of motor vehicles has actually left some business owners cornered on their motor vehicle claims.

Please note that these simplification rules apply to motor vehicles which are defined as –

· Designed to carry less than one tonne

· And less than 9 passengers

· Motor powered road vehicle – including 4 wheel drive vehicles

Any motor vehicle outside of these parameters are considered commercial vehicles and as such are 100% business claimable.

If you are uncertain about the treatment of your motor vehicles or are wanting to maximise your claim please contact the professional staff at West Currie Consultants.

On another important issue – are you Superstream Compliant? If not, you must be immediately, please contact the office if you need any assistance with registering under the Superannuation Clearing House.

Post Election 2016

Tue, 05 Jul 2016 23:00:00 GMT

Uncertainty is not just something that we as Australians are faced with, whilst Australia is currently staring down the barrel of a gun at a Hung Parliament; on a global scale 'Brexit' has resulted in the UK voting to move out of the EU and the ongoing saga of the American Presidency campaign with Donald Trump on the rise. They all share a very common theme, that there is an ongoing political shift away from the status quo; there is a consequential amount of our society that does not feel as though the political agendas of the major political parties represent their desires for the future.

Whilst attending public practice seminars and tax school conferences, we were told time and time again to 'watch this space' until after the Election; regarding the budget and legislative changes. However, here we stand, four days from the Election on 2 July, and whilst the counting of the votes has resumed we are no closer to knowing the fate of the Australian Government. We are still in, for lack of a better term 'Government Limbo'. If the actual process of voting, with those long white Senate papers squeezed into the undersized voting booths wasn't enough to unsettle you, or was it the difficulty with choosing 'at least 6' parties for the Senate with a pencil and the ambiguity of the parties, we are now faced with the possibility of a hung parliament.

Whilst not really following the Election Campaign myself, as eight weeks was far too long to go around and around, I found myself refreshing the website on Saturday night, watching both parties sneaking forwarding and taking a seat each. People are really not convinced either way, especially with the words Hung Parliament being continuously thrown around. Keep in mind that since 1940 there have only been two hung parliaments, with the most recent being in 2010. In my reading what has resonated with me the most is that a hung parliament can produce instability, delays, stagnant or untimely policies and the possibility of the flipping between governments. Instability is all too common in our Australian Government in recent years.

What we should take from all of this. The uncertainty that lies ahead of us tends to have an impact on business and consumer spending habits, Siobhan Blewitt from Morgan Stanley says they are concerned that the election results could undermine business confidence, leading to weaker volume growth for the banks in the 2017 Financial Year. The implementation of policy will stagnate with the election outcome diminishing any hope of smooth legislative agenda in our parliament. Julie spoke with Siobhan Blewitt, who is a stoke broker, this morning and she indicated that this is the most volatile and uncertain that she has seen the stock market in the last 10 years, this is attributable to both domestic and international events.

The budget paper has all but been forgotten, and with no result from the Election to date, we are no further advanced to know which policies will and will not be brought in. The politics within the Parliament itself will create a large hurdle for anything at all to pass. However, we can only continue as normal and be as informed as we can be if an when the bills are passed and legislation is created.

For West Currie Consultants however, business is as usual. The end of the financial year has come and gone and we are well underway in the 2017 financial year, with some returns having already been done. While once upon a time July was a quiet gave all staff the time to reboot and recharge before the onslaught of a new tax year. However, with the increase in technology we have clients knocking on our doors as early as 1 July. As always we thank our loyal clients for their trust and look forward to working with you into the future.

2016 Federal Budget

Tue, 21 Jun 2016 23:00:00 GMT

The 2016 Federal Budget has all but been forgotten in the wake of the Election set for 2 July 2016. It is important to remember that the budget is merely a proposal put forth by the government of the day, it is not actually law until these policies get passed by the newly elected party. Whilst there has been plenty of negativity surrounding the budget, there are also some advantageous measures coming out of the budget.

The relevant policies to take from the budget, holding the assumption everything comes in as proposed:

Superannuation:

-Positives

· Removal of the work test for people aged over 65, as such everyone up to 75 can contribute to super and get the concessional tax deduction, which from 1 July 2017 is $25000. This is a great initiative for the super space!

· Removal of 10% Test: Even if you are earning wages and employer paying super you can contribute and get a tax deduction up to an aggregate $28K per year.

- This paves the way for a greater range of options and flexibility in tax planning.

· Allowance of catch-up concessional super contributions, for example, if you have only contributed 5K of the available concessional contribution each year for past 5 years, you can catch up using $25K annual deduction. The catch (as always) – an individual must have less than $500K in super to do so.

-Negatives

· Removal of tax exemption on earning of assets supporting (TRIS). Whilst the option is still available, any income earned on fund will be taxed at 15%. Will be best to look at stopping your Transition to Retirement or conversely, convert them to a normal pension, if this option is available to make use of the tax free income threshold.

· Limit of $500K on amounts that can be put into super on a non-concessional basis: this includes anything put in since 2007. However, I would suggest that you watch this space as the retrospectivity of this policy has caused quite the stir.

· Introduction of $1.6Mil superannuation transfer balance cap, this cap is on the total amount of super you can transfer into pension phase. However, the majority of pensions will still be tax free within the superfund, up to $1.6Mil.

Regardless of the Government, Super is always a changing vehicle, make the most of the good policies while you can! Most of the measures are not proposed to change from 1 July 2017, so still plenty of time to make use of the current measures.

Other proposals relevant to our client base:

· From 1 July 2016, 32.5% personal income tax threshold from $80000 to $87000. A slight tax saving for those creeping up a tax bracket.

· Small business income tax offset (SBITO) from 1 July 2016 will increase from 5% to 8%, however the $1000 cap per individual will remain – thus negating any benefit from such a proposal!

· Reduction in company tax rate, 1 July 2016 will be 27.5%

· Reminder of the $20000 Plant & Equipment Immediate Write off and the Primary Producer Accelerated measures :

o Immediate deduction for Water Facilities – dams, tanks ,bores, irrigation channels, pumps, water towers and windmills

o Immediate deduction for Fencing Assets – a repair of a capital capture, addition or extension

o Three year Depreciation for Fodder Storage Asses – silos and tanks used to store grain and other animal feed.

I can't stress enough to 'watch this space', having attended two conferences post budget those three words were the most important piece of information given!

EOFY

Mon, 02 May 2016 23:00:00 GMT

EOFY, for those of us that are not up to speed with this acronym it stands for End of Financial Year . The EOFY is fast approaching Easter Bunny has been, we have reverted to normal time (if there is such a time), we are well and truly into the football season, it is Federal Budget Day and we are now into the final quarter of the 15/16 financial period – we have some planning to do!

Planning might be in the form of the cropping program or your shearing and lambing programs. It might be planning and budgeting to ensure that you have enough cash to get you through until the lambs and wool are sold or until harvest time. Doing preliminaries figures, with the aim to minimise tax liabilities is also a great means of planning, it puts you in the informed position to make clear and concise decisions which are beneficial to you, your business, your family, and your future wealth.

Knowing your situation prior to year-end enables you to make constructive decisions about the following:

· The redemption of or in putting in of Farm Managed Deposits

· Superannuation contributions, using maximum levels may be extremely beneficial depending on your age

· Cashflow

· Tax circumstances

· Revisiting of Loans – in these times of low interest rates

All of the above points made are connected to each other, which is why it is so important to ensure you have as much knowledge of your circumstances as you possibly can.

Planning must be done at many stages of our lives; there are times when we can just wing it. However, for important things including finances and wealth generation it is in your best interest to make a plan, or at the least advert your mind to a plan.

The majority of us use a diary to keep track and write down important notes and dates, some more religiously than others. My Dad recently commented a couple of weeks ago that his diary nowadays has more medical appointments than social engagements – this shows how our lives can quickly evolve as we move from one stage to the next in the "Circle of Life".

Perhaps I have got a bit off track, but with the speed at which the days months and years are going past, planning is of extreme importance, and whilst tax planning is never easy or necessarily exciting, it is beneficial. It helps us to ensure that we have covered and thought of all issues that are affecting our lives, businesses and families.

Planning needs to be dynamic and adaptable to changes in any circumstances. We all know in the primary production industry especially, that a plan is effective, until it doesn't rain or the livestock prices drop. Unfortunately we cannot plan for the weather or the conditions. Planning is not preparing a budget for the Bank Manager and then filing it in the bottom draw of the desk never to be referred to again. It needs to change when circumstances change. Variances need to be implemented and reflected in the plans or the budget.

We all need to start thinking about the big picture, into the future – the next 10 years. For some of us that will be business succession and retirement, for others this will be children's educations and university fees and for the younger generation it will be buying a house and having babies. From all stages of life planning is important.

Now for some more important changes for the 2015/2016 financial year

· Reduction to Company tax rate for small business – Rate drops to 28.5%

· Tax Discount for unincorporated small businesses – this is a tax offset to a maximum of $1000 on net small business income.

· Small Business – Capital Allowance – Immediate deduction for depreciating assets acquired and first used or installed ready for use on or before the 30 June 2017.

· Primary Producers Capital Allowance – Fodder storage assets purchased during this period can be deducted over three years. Fences and water facilities are outright deductions.

Important planning considerations that may need to be taken into account prior to year end

Making money is hard work, holding that cash and making it work for you is even harder. We need to be vigilant planners, spend wisely and make every decision a winning goal for your business.

Superstream - Your Time Is Almost Up!

Wed, 23 Mar 2016 22:00:00 GMT

SuperStream is a Government reform requiring employers to pay their employees superannuation contributions using the government's new data standards. In layman's terms, it means all superannuation contributions need to be made and recorded electronically – no more cheque writing. Cheque payments will not be accepted after 30 June 2016 and super funds will return any payments made by cheque. This will also result in you being non-compliant and may result in ATO imposed interest and fees.

Employers will have to comply with following two things under SuperStream:

1. The payment must be made electronically to the nominated superfund.

2. Details of the payment transactions, such as employee name, Tax File Number and Super Fund member number are also sent to the superfund.

What does this mean for you?

Small employers (19 or fewer employees) must meet the SuperStream standard by 30 June 2016. Here's what you need to do:

1. Choose an option

· Super clearing house

A clearing house pays super to your employee's funds for you. You send a single electronic payment to the clearing house, together with the contribution data for all your employees, and the clearing house does the rest. If you have 19 or few employees, or a turnover of less than $2 million a year, you can use the ATO's free Small Business Super Clearing House. Julie uses the ATO's free Small Business Super Clearing house, she has found if effective and efficient. The team at WCC have also assisted clients to register for this clearing house.

· Your super fund's online system

Large super funds have online payment services you can use. Check with your fund.

· Payroll System that meets SuperStream standards

If you use a payroll system, check with the system provider that it is SuperStream ready. You may need to update your system.

2. Collect information and update your records

To use SuperStream you'll need to collect some new information from your employees, see below, in addition to the information you already use to pay super.

Once you have this information, enter it into your system, along with the other details you use to pay super, and you're ready to use SuperStream.

You only need to collect this information for current employees. New employees who choose their super fund will fil out a standard choice form, which will have all the information you need.

Ask your employees for the following information, if you don't have it already:

· Employee tax file number

· Fund ABN

· Fund unique superannuation identifier (USI)

If your employee has a self-managed super fund (SMSF), they need to give you slightly different information:

· Employee tax file number

· Fund ABN

· Fund bank account details

· Fund electronic service address

3. Use SuperStream

Start using SuperStream ASAP, with only just over three months left, this will enable you time to get used to the system prior to 30 June 2016.

As employer, it is still up to you to meet your super guarantee obligations by the due dates.

Handy Tip - * If you're using a clearing house, check how long they will take to send the money and information to the super fund. Generally an employee's super contribution is counted as being paid on the date the fund receives it. Not the date a clearing house receives it from you.

Now is the time to finalise your plan for SuperStream and start processing your first employer contributions using SuperStream.

We understand moving electronic can be overwhelming and confronting, and the information out there can be wordy and confusing. Just remember everyone is in the same position as you, the steps are really quite easy, and once the initial work of getting your SuperStream up and running is completed, the paying of superannuation process may seem easier.

The team at West Currie Consultants are here to assist you in any way you may need to ensure you are comfortable with SuperStream and continue to be Super Compliant.

Call us today on 55 851 522 or email reception@westcurrie.com for information or further assistance on being SuperStream compliant.

Dry....Drier....Driest

Thu, 10 Mar 2016 22:00:00 GMT

2016 marks 20 years that West Currie Consultants have been attending Nhill. During my first year working in Nhill a client told me that the water tap turned off when I hit town and today we are still praying for that tap to be turned back on. Throughout these 20 years there have been many ups and downs within the primary production industry, from wool prices to fat lamb prices. Unfortunately getting the right amount of rain flow at the right time seems to be the hardest variable to keep constant and is made harder because it is out of any one person's control.

It seems that every couple of years, we talk, read and watch releases about DROUGHT -the consequences of a lack of rain on our industry, our towns, our communities and our mental health and wellbeing.

We google the weather maps daily to see when the rain might be coming and what the 12 month forecast is, to enable us to start planning for the pending growing season. With the seasons usually starting well there is optimism in the air and then, out of the blue, we are dealt a curve ball . There is either a week of blistering heat that shrivels the grain in the filling heads or an untimely downpour which may cease harvest or kick in the summer weed problem causing an earlier than normal chemical bill - one that we really cannot afford.

Feeding stock and examining stock holding ratios start causing sleepless nights, we assess the fodder levels we have against what we need to get us through until the rain comes to give a green pick to the ewes and lambs. Additional fodder expenses are again something that was not in the budget and something that we cannot afford.

It is really hard to continue to pick yourself up, dust off your trousers and forge forward - especially when no matter how efficiently and effectively you run your farming operation there is a reliance on moisture, which given the past 20 years is uncertain and inconsistent.

Banks have traditionally been happy and content to lend against the value of the farming property. The farmer has been able to obtain additional operating funds to put in crops after bad seasons due to the value of the land being high enough to satisfy the financial institutions requirements. However, as the length of dryness continues and we are on the back of two ordinary seasons - banks are sure to start questioning serviceability for the debt.

Serviceability of debt forces business owners to examine whether they are in a position to repay debt if another bad year transpires. One must assess whether the cash flow and income generation will enable them to repay all debts as and when they fall due, or do they need to go to the bank again with a heavy heart and ask for some faith in their business history - as time goes by business history may become a thing of the past.

Recently the interest rate has been extremely kind, with it reducing or flat lining and is providing some breathing room and making it comfortable for businesses which carry any debt. However, any increase in interest rates will have an untimely and significant impact on businesses which are just surviving and will be catastrophic to those that are relying on household support to meet day to day living costs.

Business owners need to look at their debt levels and ascertain whether, if interest rates were to increase to 8-10% would the business be able to sustain this increase. Farmers need to look at their situations in three categories: worst case, average and above average scenario.

There are programs released by State and Federal Government on how to drought proof our properties with water storage facilities and fodder storage and there are programs and opportunities to reassess how to continue moving forward under these relenting conditions. Please see our December newsletter or follow the link posted below for further information:

http://www.agriculture.gov.au/ag-farm-food/drought/assistance

Crunch time has arrived. Although the rain, or lack thereof, directly affects farmers and primary producers, it has an overall effect on our economy. All our businesses rely heavily on the season the farmers are having, when money is tight for the farmers this passes down the line to luxury items, cafes, pubs, hairdressers, clothing stores and other business which are not needed for basic survival.

We all need to actively seek assistance and help from the many programs and drought packages which are available.

It is not the time to be too proud to accept help.

You are not alone; your neighbour over the paddock or the small business in your town is in a similar situation to you.

Cash Flow is King

Tue, 22 Sep 2015 23:00:00 GMT

Money makes the world go and as we are all aware it is the only way that a business can survive. Success or failure of a business relies on the management of cash. This is why it is so important from the very beginning of a business to monitor and have a really good handle on cash reserves.

Maintaining a healthy cash flow is important for every small business, regardless of the industry that the business operates in or type of business structure that the business operates through. Once your business first experiences a cash shortage or timing flows which cause you to miss bill payments or render you unable to cover expenses, it can be difficult to consistently keep your business in the black or to keep it afloat. Sometimes the proprietor propping up a business when cash shortages are experienced can only be a short term measure for a long term shortcoming if not addressed immediately.

Seasonal businesses such as wool growing, sheep grazing and Broad acre farming and beef cattle grazing create an added complexity. Meaning that the cash flow is not regular and the amount is unknown. These variables make budgeting and cash flow challenging but not impossible. It just means you have to monitor markets, exchange rates and the elusive weather.

The following points will help you improve the day-to-day flow of money in your business so you have cash on hand when needed:

1. Stay on Top of Your Books

One of the quickest ways to lose control of your business finances is by failing to track money coming in and going out. Record both the cash receipts and payments regularly, and make a habit of checking what money is owed to you and who and how much you owe on a weekly basis. If you employ staff, then looking at your staff obligations as well will provide a snapshot of what your short-term cash flow needs will be. If you don't have time or staff available to manage your books, enlist the help of a bookkeeper who can make sure your books are reconciled every month. There is no point putting off jobs for your business because you have to do the books. It is important that new business proprietors look at the most efficient and effective use of money and time. Sometimes we should all stick to what we are good at and get assistance for those that we are not so good at.

2. Send Invoices Promptly – Email can speed this up

It is difficult to get paid if your customers are not being invoiced in a timely manner. Make invoicing one of the first things you do at the completion of a project or when goods/services have been delivered to your customer. With today's technology tax invoices should be able to be emailed through as soon as the job is completed. This tax invoice should have account details so that payment can be transferred there and then. It is also common place to have credit terms of 7 days. This is not realistic terms because when you look at the time frame for payment for your suppliers you will see that they are probably 7 days as well. As noted above review all open sales orders or jobs at least twice a month to make sure that a completed job has not been overlooked.

3. Create a strict Accounts Receivable Process

How do you track money owed to your business? It is important to keep on top of this area because in essence this is your lifeline. At the commencement of your business or NOW if you have not addressed this area of concern, you need to formulate a credit policy. This will include your terms of trade and what are the steps taken if the client does not pay on time. These steps may involve advising the client that you are going to impose an administration fee on accounts which remain outstanding beyond your terms of trade. Create a timeline for your accounts owing process so you know when you may need to call in outside reinforcements, such as a collections agency.

4. Get Rid of Unnecessary Expenses

It is important that you actively conduct a review of your business costs on a regular basis to see what can be cut or adjusted. Sometimes expenses can just go haywire and you need to look at them – expenses like sponsorship and advertising in small country towns can get out of hand especially when all the clubs approach you at varying times. Without actively looking at this cost you would not be aware of how much is being spent in this area. Even if there aren't many expenses you can eliminate completely, you may be able to work with vendors to change due dates so bills coordinate better with money coming into the business.

5. Offer Your Customers Multiple Payment Options

One way to help your customers pay on time is by offering several different options when it comes to paying invoices. At a minimum, consider taking payment by cheque and credit card or debit card. You can also make it easier for customers to pay you by providing an online payment option. When deciding whether to have an eftpos machine available at your business please weigh up the usage to the cost of convenience of having the machine. Again with technology and most people having a smart phone providing online bank account details might be an easy solution.

6 . Payment in Advance for Project Work or large engagements

If you work on a project basis or for large engagements, it is always a good idea to require a portion of the total cost in advance. This means that you will have the money available for the initial costs and will avoid you having to fund the project from your own cash reserves. On large engagements or projects you should agree to terms in a written contract so that additional payments are due during specific milestones of the project. This helps you avoid having the bulk of the payment due at the end of the project.

7. Limit Inventory

If your business has inventory, you should look at the products you have in stock on a regular basis. To more effectively manage inventory determine which products do not sell quickly and only carry enough of those products to meet current customer demand. Inventory consumes cash and requires storage which costs money in the form of floor or shelf space. For slow moving stock perhaps consider having a sale or a special discount day on those products. You cannot possibly hold every product that your customer may need but if you can get it within 24 hours I am sure that is acceptable.

8. Use Payment Terms That Give You Breathing Room

One way to improve cash flow is to negotiate terms that shorten the collections cycle while extending the payment cycle. For example, ask your customers to pay you in 14 days or less while getting your suppliers to accept payment in 21 days or longer. The more effectively that you can employ this strategy, the greater likelihood of having sustainable positive cash flow.

9. Consider a Business Overdraft or Line of Credit

Another source of cash can be a business overdraft or a line of credit (LOC) with your financial institution. In addition to business credit cards, financial institutions will often provide a LOC that is secured by the assets of the business (i.e., equipment, inventory, receivables). It is important that you have the right funding needs and bank account to meet the needs of your business. However please note that a start-up business is not going to be given the benefit of an overdraft and therefore needs to develop good business practises and a strong working relationship with their financial institution. Having both these elements will only enhance the business. Although everyone is in business to make a living, sometimes you need to lean on the services that are available to you to help your business go from strength to strength.

10. Anticipate and Plan

Sometimes life throws you a curve ball that you just were not prepared for and this causes your business undue stress but most times you are aware that things might need replacing or that you are going to incur a large cost. You may not be able to anticipate all business needs, but you can make assumptions on some major expenditure. For example, if you know you are going to need to replace equipment in the near future, make sure you are setting aside funds to cover that expense well in advance. If you are putting money aside then make sure that your money is working for you. That is put the money into an account that is at least getting some interest. Remember that there is no point having money sitting in a savings account earning 0.05% interest whilst your business account is constantly incurring bank overdrawn fees. This would not be a wise use of your money.

With a little forethought and planning you can keep your cash flow healthy so your financials stay strong for the life of your business.