Amanda Palmer, Author at ASAP Solutions

From Scramble to Strategy: EOFY Planning To Help Your Business Thrive

25/04/2025 Amanda Palmer

Let’s be honest, the EOFY (End of Financial Year) has a bit of a reputation. Words like stressful and scrambled come to mind for a lot of business owners. But what if EOFY could actually work in your favour?

In this article we’ll show you how to adopt strategic tax planning to do more than just keep the Australian Taxation Office (ATO) happy. It can lay the groundwork for smoother operations, smarter financial decisions, and serious business growth.

So, let’s dive into how to make EOFY work for you.

1. EOFY Is Not Just About the Past, It’s About the Future Too

Sure, we need to tidy up the past 12 months, but EOFY should also be a checkpoint to ask: How do I want the next year to look?

Use this time to not just tick compliance boxes, but to make strategic forward-thinking decisions to shape your tax position for the entire upcoming year.

For example, activities such as these can drastically shift your tax planning from reactive to proactive:

Reviewing your business structure,
Evaluating income strategies,
Mapping business growth plans, and
Forecasting expenses.

2. Planning a Big Purchase? Timing Is Everything

Should you buy that new piece of equipment now or wait until July?

EOFY is the time to get strategic about the timing of major investments. Bringing forward big ticket deductible expenses (like fit-outs, vehicles, or tech upgrades) before June 30 can reduce your taxable income. On the flip side, deferring income or expenses into the new financial year might be the smarter play, especially if your business is expecting a lower income year ahead or wants to maximise cash flow.

It’s not a one-size-fits-all, so this is where tailored advice matters. For example, what works for your mate’s brand new biz might not work for your established practice. But an experienced accountant (hey, that’s me!) can help you out.

3. Keep Up To Date With Tax Changes

Keeping abreast of changes to tax laws and concessions can help you plan ahead, stay compliant and budget appropriately. Here’s a heads up for some tax law changes expected from 1 July 2025:

Instant asset write-off thresholds will change, so don’t assume what worked last year still applies. The latest 2025-26 Federal Budget did not include a renewal of the instant asset write-off measure. That means you’ll only be able to write-off up to $1,000 of next financial year’s expenses, unlike the $20,000 limit last year.
Superannuation guarantee (SG) rate will increase to 12%. This impacts your payroll planning.

Coming up with a plan now gives you a buffer, rather than a surprise bill. Confused about what changes are coming up? We can clue you in on what will affect your business.

4. Let’s Talk Records Management: The Boring Bit That Can Make EOFY A Breeze

If EOFY feels stressful, it’s probably because your record-keeping system needs a glow up.

Here’s the truth: better records = better decisions = better outcomes. Setting up a solid record keeping foundation now means:

You can make real-time decisions instead of playing catch-up.
You’ll have less stress come June 30.
You’ll spot opportunities and risks way earlier.

You’ll also earn undying appreciation from your accountant. Because accurate record keeping makes it easier for your accountant to help you to make the most of deductions, and put strategies in place specifically tailored to your business.

One of the best ways to make record keeping easier is by investing in accounting software like Xero or MYOB. You’ll get access to helpful features like automation for streamlined processes, reporting and payroll management features to help you plan ahead and stay compliant.

5. Create an EOFY Action Plan (That Isn’t Just a Checklist)

EOFY shouldn’t be a tick-and-flick affair. It’s an opportunity to build an action plan that combines immediate compliance tasks (lodging, reconciling, reviewing payroll) with big-picture planning. Let’s look at an example:

Case Study: Strategic EOFY Planning in Action

Last EOFY, a medium-sized NDIS provider with 30 staff across two clinics didn’t just send us their numbers. They booked a strategy session well before the June rush. Here’s what happened:

Structure review: We restructured their business from a sole director model into a trust arrangement with a corporate trustee. This gave them better asset protection and flexibility for income distribution.
Strategic purchases: They brought forward the purchase of high-value therapy equipment (claimable under the instant asset write-off) and deferred a non-essential office refit until the next year, resulting in a healthier tax position.
Payroll adjustments: We preemptively adjusted wages and SG payments in line with a rate change to avoid last-minute chaos.
Forecasting: With their business growth plans worked out, we built a 12-month cash flow plan that allowed for scalable expansion of clinics without blowing the budget.

The result? A lower tax bill, ATO compliance, and a stronger foundation for growth.

Final Thoughts

EOFY isn’t just a compliance deadline, it’s an opportunity to be intentional. But you don’t have to do it alone. Because when you’ve got the right accountant in your corner EOFY becomes a tool, not a trauma.

So, let’s make this EOFY your most strategic one yet! Get in touch today to book a planning session.

Business Strategy Tax

Tax-Time Myths Busted: What Business Owners Need to Know

30/03/2025 Amanda Palmer

Tax… It can strike fear in the hearts of many business owners. And it doesn’t help that tax time generates more myths than an ancient Grecian odyssey.

As the owner of a growing business, you’ve got enough on your plate without worrying about incorrect tax advice. Not to mention having to ensure you’ve got reliable systems, efficient processes, and expert support to make informed decisions with confidence. As your operations scale, you need to be able to trust that your numbers are accurate, up-to-date, and your business is compliant to avoid nasty surprises.

Not to brag, but we’re business tax professionals, so you’re in the right place! Let’s bust some of the most common tax-time myths, set the record straight, and make tax time a breeze as your business expands.

Myth #1: “I Only Need to Think About Tax at the End of the Financial Year”

Ah, the classic “see-you-next-June” approach. But a good tax system doesn’t just tick off compliance, it’s about strategy. If you’re only looking at your tax situation once a year, you could be doing your business (and your bank account) a disservice.

The tax landscape is constantly evolving. Government incentives, tax rate adjustments, and sector-specific regulations can impact your position. Staying informed (or working with an accountant who is) means you can take advantage of opportunities you may be completely unaware of, such as:

Instant Asset Write-Offs: Depending on the latest government updates, you may be able to write off assets immediately rather than depreciating them over years.
Superannuation Contributions: Strategic contributions before June 30 may be used for tax deductions and help future-proof your finances.

Regular check-ins with your accountant can help you take advantage of incentives sooner, structure your finances efficiently, and quickly troubleshoot issues.

Scaling up? Your Strategies Should Too

Also, as your business expands, engaging regularly with an accountant can ensure continued compliance, minimised tax liability, and support sustainable growth.

A growing business has a whole host of new things to consider that a qualified accountant can help you with, such as:

Structuring for growth: Changing your business structure to accommodate growth, which can affect your tax, registration and legal requirements.
Hiring staff: Covering all the compliancies that this entails, such as pay as you go (PAYG) withholding, payday super compliance, and worker classifications, to name a few.
Managing tax liabilities: As revenue increases, so does your tax liability. Planning quarterly PAYG instalments can mitigate large tax bills.
Registering for GST: Doing so at the right time can unlock strategic benefits and avoid penalties… but more on that next.

Myth #2: “Only Big Businesses Need to Register for GST”

The truth is, goods and services tax (GST) applies to more businesses than you think! Many small and medium business owners assume registering for GST is only for the big players. But if your business turns over $75,000 or more annually, you’ve met the GST threshold and are legally required to register.

Even if you’re not quite at the $75,000 mark, registering for GST early could be a strategic move. It allows you to claim GST credits on your business purchases and make your business look more established to clients and suppliers.

Plus, avoiding a last-minute scramble to register once you hit the threshold saves you from unnecessary stress. While you can register within 21 days of exceeding the GST threshold, failing to register on time can incur penalties and interest.

Myth #3: “Every Expense is Tax-Deductible!”

Wouldn’t that be nice? While plenty of business expenses are deductible, not everything qualifies. A coffee machine for the office may be deductible. Your daily latte habit from the local cafe? Sadly, not so much.

The Australian Taxation Office (ATO) keeps an eye on deductions, and claiming personal expenses as business ones can land you in hot water. A good accountant will help you navigate this to ensure you maximise your deductions without overstepping the bounds of what’s acceptable.

Myth #4: “I Don’t Need to Worry About Record-Keeping — I Have an Accountant for That”

Your accountant might be a total numbers wizard and tax virtuoso… But without accurate and up-to-date data? Well, there’s only so much they can do.

While a shoebox full of crumpled, faded receipts or an end-of-year data dump is better than nothing, it isn’t ideal. Accurate and consistent bookkeeping helps your accountant help you claim the right deductions, manage your cash flow, and avoid penalties.

If you haven’t already, you may want to think about investing in reliable accounting software as your business scales. It can make keeping on top of the books easier and allow for more efficiency. And should you ever be hand-picked for an ATO audit, you’ll have an easier time with rock-solid records at your fingertips.

Be sure to keep your receipts for business expenses. Or even better, upload them into accounting software too. While the ATO allows for a total claim of work expenses up to $300 with no receipts, you’ll still be expected to show how you calculated the claim amount and how the money was spent. It’s best practice to keep receipts where you can and it makes the claims process easier. Not to mention the potential to claim more if you’ve spent over $300 in business expenses!

The Bottom Line

Tax doesn’t have to be painful. Proactive planning, the right strategies, and ongoing support can ensure your business is in the best possible position and forego the headache that tax time can bring on.

A solid foundation can help set your business up for long-term success. As your business grows your financial systems need to scale with you. Having regular financial reviews, accurate data on hand, and a knowledgeable accountant gives you the confidence to make sound decisions for the future.

So, don’t wait until June. Get in touch today!

Advice Business Strategy

End-of-Quarter Checklist: Stay Compliant and Cash-Flow Ready

25/02/2025 Amanda Palmer

Keeping on top of quarterly reporting and financials helps keep the ATO from knocking and gives you the clarity to plan your next business move with confidence.

That’s why we’ve put together an end-of-quarter checklist to help set you up for a smooth ride into the next quarter without the jargon, headaches, or existential crises!

1. Reconcile Your Accounts – Regularly!

Think of account reconciliation as tidying up your business finances before the new quarter kicks off.

This means:

Matching transactions in your accounting software to your bank statements;
Checking for any missing invoices or payments; and
Identifying and addressing any discrepancies.

A clean set of books provides fewer surprises when tax time rolls around. Plus, it keeps your cash flow healthy, because nothing ruins a good quarter like missing money!

Doing this regularly – either weekly or daily depending on the number of transactions going through your business, is a good habit to get into to make sure your bookkeeping doesn’t become overwhelming.

2. Review Your BAS

If your business is registered for goods and services tax (GST), end of the quarter probably means that it’s BAS time. For most businesses, your Business Activity Statement is due every quarter, and lodging it late can incur penalties to the tune of hundreds of dollars for each month you’re late.

Make sure to include:

All invoices and expenses;
Details of GST payments and collections;
Payroll and superannuation obligations;
PAYG withholding; and
Any other applicable taxes.

Not sure if your BAS is in good shape? That’s where having an accountant (like me!) on your side comes in handy.

3. Chase Up Overdue Invoices

Outstanding invoices can squash your cash flow. And you deserve to get paid for all your hard work.

Now’s the perfect time to:

Follow up with clients who still haven’t paid (send those polite but firm reminders);
Review your payment terms to see if they need tightening up; and
Consider automation and helpful tools to streamline invoicing and reminders.

Pro tip: Consistently following up on invoices every month helps prevent a last-minute, end-of-quarter scramble.

4. Check Your Superannuation and Payroll Compliance

If you’ve got employees, keeping up with payroll and super isn’t optional, it’s essential. Ensure that:

All super contributions for the quarter have been paid;
PAYG withholding is accurate and reported correctly; and
Employee entitlements (leave, overtime, allowances) are up to date.

If you draw a salary from the business, don’t forget to pay yourself super. Not doing so will cheat you out of that sweet compound interest for your retirement.

5. Assess Your Cash Flow, Budget and Performance

Healthy cash flow keeps your business thriving. Take some time to:

Compare actual earnings vs. projected revenue;
Assess if you’re setting aside enough for your tax obligations;
Identify any upcoming expenses; and
Adjust your budget and financial goals for the next quarter.

If your cash flow looks tighter than expected, now is the time to take proactive steps, whether that’s revising expenses, pricing, or streamlining invoicing.

Numbers don’t lie, and reviewing your business performance each quarter helps you make informed decisions. Ask yourself:

Did we hit our revenue and profit targets?
What worked well, and what needs improvement?
Are we on track with our strategic goals?

And most importantly, take a moment to celebrate your wins. Running a business isn’t easy, so acknowledge the progress you’ve made.

6. Plan for Future Growth

Quarterly reviews aren’t just about compliance, they’re also a great opportunity to strategise for growth. Consider:

Whether you should invest in new resources, staff, or technology to accommodate growth; and
Any government grants or incentives you could take advantage of to help your expanding business.

If your business is growing (or struggling), don’t wait until the end of the financial year to chat with your accountant. Ongoing support can make all the difference, and doing a quarterly review of your accounts means that we can be proactive and strategic about any concerns as they come up.

Wrap Up

Running a business can be a lot. You have to juggle the work at hand and the administrative tasks to keep compliant and thriving.

However, having a system in place to keep on top of your quarterly financial admin can avoid headaches in the future.

As always, we’re here to provide hands-on support tailored to your business to take the stress out of your finances. Get in touch today!

Advice Business

Payday Superannuation Reforms: What Employers Need to Know

25/01/2025 Amanda Palmer

Upcoming super payment reforms will change the way payday operates for your business. But having all the info at hand can have you ready to (pay)roll by 1 July 2026.

What to Expect from Payday Super

The Australian Government is making some significant changes to the way employers pay superannuation. From 1 July 2026, employers will need to pay super guarantee (SG) contributions at the same time as wages.

Dubbed “payday super,” this change is being implemented to help Aussies retire with more, by quickly getting those funds into their super fund.

Payday super changes mean that employers will pay super contributions with employees’ ordinary time earnings (OTE), eliminating the traditional quarterly payment cycle.

Here are the key details at a glance:

New due date: Employers must make SG contributions within 7 days of payday.
Penalties for delays: Failing to meet this deadline will result in an updated Super Guarantee Charge (SGC) being applied.
Reporting changes: Through Single Touch Payroll (STP), employers must report both OTE and total super liability.

Penalties for Missing Deadlines

Penalties for missing super contribution deadlines are set to be tougher than before. The updated SGC is designed to encourage compliance while compensating employees for late payments.

Here’s a breakdown of what the SGC includes:

Outstanding SG shortfall: This covers any unpaid super contributions, calculated based on OTE.
Notional earnings: An interest component ensures employees aren’t financially disadvantaged by delayed payments.
Administrative uplift: An extra fee to cover the cost of enforcement.

Additional penalties can apply, once SGC is assessed:

A General Interest Charge continues to accrue daily on outstanding SGC shortfall and notional earnings, at the ‘general interest rate’.
A SGC payment penalty totalling up to 50% of the unpaid SGC amount can apply if employees don’t pay within 28 days.

The silver lining? SGC payments will now be tax-deductible, except for interest and penalties accrued after the SGC assessment.

But avoiding having to pay fees and penalties in the first place is the better option. That’s why it’s a good idea to be prepared before the changes kick in.

How to Prepare for Payday Super

Payday super marks a significant shift in the way superannuation is managed and will most likely require changes to your employee payment process. By preparing now, you can create a smooth transition for the 1 July 2026 deadline.

1. Update Payroll Systems:

Ensure your payroll software can handle the increased frequency of super payments. Many modern solutions integrate seamlessly with STP.

2. Transition from the Small Business Clearing House:

For small businesses relying on the Small Business Superannuation Clearing House (SBSCH), note that it will be decommissioned from 1 July 2026. So it’s a good idea to start exploring commercial alternatives that fit your needs.

3. Understand SuperStream Changes:

The deadline for super funds to allocate or return contributions will shrink from 20 business days to 3 business days, streamlining the process for all parties.

4. Train Your Team:

Make sure you and your payroll team understand the new requirements, including reporting changes under STP and the 7-day payment window.

5. Stay Informed:

More information and reminders around payday super legislation will most likely be released by the Australian Government leading up to July 2026. Keep an eye out to stay ahead of any changes. For more information, check out the Treasury Fact Sheet.

Need a hand navigating payday super? Get in touch with Amanda.

tax planning on a desk with a notebook, calculator and cup of coffee

Advice Business Strategy Tax

Your 2025 Tax Strategy: Planning Ahead for Smarter Decisions

16/12/2024 Amanda Palmer

Let’s start with the urgent bit – if you haven’t lodged your tax return yet, pop it to the top of your to-do list. Nobody enjoys those late lodgement penalties!

Once that is off your plate, let’s talk Tax Planning.

Why Talk About Tax Planning now?

By March or April, we’ll have nine months of data for the current financial year – and that’s where things get interesting. This substantial chunk of financial information gives us a brilliant opportunity to make smart decisions about your tax position before the year ends. So let’s clean up any loose ends, get your books in order and understand what your business goals are for this year. Are you looking to buy some equipment or make other investments in your business?

Planning vs Avoidance

Tax planning isn’t about finding clever loopholes or aggressive schemes – those approaches often fall into tax avoidance territory, which can result in substantial penalties and a world of trouble with the ATO.

True tax planning is about making informed, strategic decisions about your business while working within the tax system. When we understand your expected tax position and align it with your business goals, we can look at legitimate ways to manage your tax obligations. For instance, this might involve timing of expenses, structuring business decisions efficiently, or taking advantage of available deductions and concessions that you’re entitled to.

Think of tax planning as part of your broader business strategy. Just as you plan for growth, cash flow, and staffing, your tax position needs the same strategic attention. By looking at your business plans alongside your projected tax position, we can work together to make decisions that benefit your business while ensuring you meet your tax obligations appropriately.

Why Nine Months of Data Makes a Difference

Having three-quarters of your yearly figures gives us solid ground to stand on. We can:

Project your likely income for the full year with real confidence
Spot any concerning trends before they become problems
Calculate your potential tax liability with reasonable accuracy
Put in place legitimate strategies to optimise your position

With nine months of data under our belt, we can look at several opportunities:

Review Your Business Structure

Is your current setup still the best fit? Whether you’re operating as a sole trader, partnership, or company, it’s worth reviewing if your structure aligns with your current situation and future plans. This also gives us time to make any changes you may require before the end of the financial year.

Timing is Everything

Understanding your position helps you make savvy decisions about:

When to make major purchases
The best time to raise invoices
Maximising your super contributions
Investing in new equipment or technology

Making the Most of Available Deductions

Now’s the perfect time to ensure you’re taking advantage of every legitimate deduction. This might include:

Immediate asset write-offs for eligible purchases
Research and development incentives
Work-related expense claims
Investment property deductions

Taking Action: Your Next Steps

The next few months will go quickly, but if you do the work now, by March/April we can:

Take a thorough look at your current position
Create reliable projections for the year-end
Identify potential areas for tax-effective decisions
Put strategies in place while there’s still time to make a difference

Book a Planning Session

Every business is unique, and what works brilliantly for one might not suit another. That’s why it’s worth booking a proper tax planning meeting. We can sit down together, look at your specific situation, and develop strategies that work for your business.

Good tax planning isn’t about finding loopholes – it’s about making informed decisions based on real data to ensure you’re in the best possible position come tax time. By starting now, we can ensure everything is in place to use the nine months of data effectively when the time comes, and make any necessary adjustments before the end of the financial year.

This article provides general guidance only. For advice specific to your situation, please get in touch to arrange a consultation.

Advice Business Strategy

Making Your Business Resolutions: Tips by An Experienced Accountant

23/11/2024 Amanda Palmer

Whether you’re dreaming of hiring your first employee or opening a second location, 2025 could your breakthrough year – with some careful planning of course. After 15 years of helping businesses grow, I’ve identified a few key habits that set the most successful ones apart:

Getting Your Financial House in Order

I’ve seen too many passionate business owners dive into expansion before getting their financial foundations solid. Let’s start by taking an honest look at your numbers.

How’s your cash flow looking?
Are your margins strong enough to support growth?

If you need some help to understand your numbers, it’s a good time to reach out and have a chat and we can run through your books together.

Smart Ways to Bring on New Talent

Hiring your first employee feels like a massive leap. But you don’t have to dive straight into full-time employees. Many businesses start with part-time or casual support for their busiest periods, or even try a virtual assistant for those administrative tasks that keep piling up.

This approach lets you test the waters, develop your management style, and grow your team organically. Whether you’re thinking about your first hire or your fiftieth, it’s important to have a staffing plan that aligns with your cash flow – because timing really is everything when it comes to growing your team.

Finding Money for Growth

Traditional bank loans are just one piece of the funding puzzle. From equipment finance to overdraft accounts, different funding solutions fit different business types, budgets and needs. It’s worth sitting down and modelling different financing scenarios using your actual cash flow numbers. This way, you’ll see exactly how each option impacts your bottom line before making any commitments.

I often partner with finance brokers to understand different scenarios and the impact of these financial decisions on their business day-to-day operations.

Making Technology Work for You

Can we talk about those spreadsheets for a minute? Spending Sunday afternoon manually inputting invoices is precious time you could have spent with family or planning your business growth. Modern accounting platforms like Xero can transform those Sunday afternoons into a quick daily task. Yes, there’s a monthly subscription fee, but think about this: what’s the real cost of a missed invoice, a compliance issue, or those hours you could spend growing your business? I’ve seen businesses completely transform their operations with the right tech solutions. It’s not just about saving time – it’s about creating space for opportunity while protecting what you’ve built.

Protect What You’ve Built

Growth without adequate protection is like building a house without insurance. Think of risk management as their business’s safety net. As you plan for next year, review your insurance coverage, update your contracts, and make sure you’ve got the right structures and protections in place as you scale. Small investments now can save you from major headaches later.

Know Your Numbers

You don’t need to become a financial expert – that’s what I am here for! However, understanding key metrics and having the data at your fingertips can transform how you make decisions. I love seeing the confidence my clients develop when they truly understand their numbers. We’ll focus on the metrics that matter most for your business, making them simple to track and even easier to act on.

Building Your Support Team

You don’t have to figure everything out alone. Being a business owner can be lonely and stressful at times. Your decisions not only impact you and your family, but also your employees. And that can be a lot to shoulder. So, whether it’s a bookkeeper or a business mentor, having the right support so that you are confident in the decisions you make can make growth so much easier.

Taking the First Step

A simple but effective piece of advice is starting with one change that could make a big difference in your business. What’s the first change you’d like to make in your business this coming year? Maybe it’s cleaning up your bookkeeping, or perhaps it’s creating a hiring budget. It is true that small, focused actions today can create opportunities or put you in a position to easily tap into opportunities that come your way.

The Path Forward

Every business I work with has unique challenges and opportunities. When planning for next year, remember that growth isn’t just about getting bigger – it’s about getting better. When we strengthen your business foundations, expansion becomes much less stressful and much more exciting and streamlined.

I’d love to hear about your growth plans. What’s the biggest opportunity you see for your business in 2025? Or maybe you have concerns about taking that next step? Let’s talk about it – after all, the best growth strategies come from honest conversations about where you want to go and how to get there.

Advice Business

Understanding FBT for Your Business Christmas Celebrations

04/11/2024 Amanda Palmer

Planning your end-of-year celebrations? While it’s the season to be jolly, business owners need to be savvy about the tax implications of Christmas parties and gifts. Let’s break down what you need to know about Fringe Benefits Tax (FBT) to keep both your team and the tax office happy.

Christmas Parties: Location Matters

Your choice of party venue can significantly impact your FBT obligations:

Parties at Your Business Premises

If you host the party at your workplace on a working day, you’re in luck! The cost of food and drinks for current employees is exempt from FBT.
However, if you invite employees’ partners or family members, their portion may be subject to FBT if the cost per head exceeds $300.

Off-site Celebrations

Holding your party at a restaurant or venue? The $300 per head threshold becomes crucial.
If you keep the cost under $300 per person (including GST), you can usually avoid FBT under the minor benefits exemption.
Go over $300 per head, and you’ll need to pay FBT on the full amount for both employees and their guests.

Christmas Gifts: Choose Wisely

The type of gift you choose affects your tax position:

Non-Entertainment Gifts (Best Option)

Items like hampers, wine, gift cards, or promotional items under $300 are:
- Exempt from FBT
- Tax deductible for your business
- Eligible for GST credits
These represent the best value from a tax perspective

Entertainment Gifts

Things like movie tickets, sporting events, or concert tickets:
- Under $300: No FBT applies, but you can’t claim tax deductions or GST
- Over $300: FBT applies, and you still can’t claim deductions or GST

Practical Tips for Business Owners

Track Costs Carefully
- Keep detailed records of per-person costs for both parties and gifts
- Remember to include all elements: food, drinks, entertainment, and venue hire
Consider Timing and Location
- A workplace party during business hours can be more tax-effective
- If going off-site, carefully monitor per-head costs to stay under the $300 threshold
Plan Gift Strategy
- Consider giving non-entertainment gifts to maximise tax benefits
- Keep gift values under $300 to avoid FBT

Contractors and Clients

Good news! When you invite contractors, clients, or suppliers:

No FBT applies to their portion of the party
However, you can’t claim these costs as a tax deduction
The same applies to gifts for clients and contractors

Making the Most of Your Christmas Celebrations

From a purely tax perspective, the most cost-effective approach would be to:

Host your party on business premises during work hours
Keep off-site celebrations under $300 per head
Choose non-entertainment gifts under $300
Keep accurate records of all costs and attendees

However, the most tax-effective option isn’t always the best choice for your business. Christmas celebrations are a valuable opportunity to show genuine appreciation to your team, partners, and clients. A well-planned event can boost morale, strengthen relationships – benefits that often outweigh the tax implications.

Different types of celebrations offer different advantages. An elegant restaurant dinner might be perfect for impressing clients, while a casual office party might encourage more team bonding. The key is planning ahead and keeping track of your expenses to avoid any surprises come tax time.

If you’re unsure about how FBT applies to your planned celebrations, don’t hesitate to reach out for advice. Most importantly, after a year of hard work, take this opportunity to relax, celebrate your achievements, and enjoy some well-deserved fun with your team!

Business Tax

Maximising Tax Deductions for Your Home-Based Business: A Comprehensive Guide for Tax Time

25/09/2024 Amanda Palmer

Running a home-based business offers numerous advantages, including the potential for significant tax deductions. Understanding what you can claim and how to calculate your deductions is crucial for maximising your tax benefits. This guide will walk you through the key aspects of claiming deductions for your home-based business in Australia, with updated information for tax time.

Eligibility for Working from Home Deductions

To be eligible to claim a deduction for working from home expenses, you must:

Be working from home to undertake your employment or business duties, not just completing minimal tasks
Incur additional running expenses as a result of working from home
Have records to show you incurred these expenses and the hours that you worked from home during the income year

It’s important to note that as an employee working from home, you generally can’t claim occupancy expenses like rent, insurance, or mortgage interest. However, if you run a business from home, you may be able to deduct a portion of these expenses, which can significantly impact your overall tax liability.

Types of Deductible Expenses

Home-based businesses can generally claim deductions in three main categories:

Running expenses
Occupancy expenses (for business owners, not employees)
Motor vehicle expenses

Let’s explore the running expenses in detail, as these are most relevant for employees working from home.

Running Expenses

Running expenses are the increased costs of using your home’s facilities for business activities. These can be claimed even if your home doesn’t have the character of a ‘place of business’.

Common running expenses include:

Electricity and gas charges for heating, cooling, and lighting
Internet and phone expenses
Cleaning costs (if you have a dedicated home office)
Stationery and computer consumables
Depreciation of equipment, furniture, and furnishings used for work

Remember, you can only claim the portion of these expenses that relate to your business use.

Methods for Calculating Deductions

There are two methods you can use to calculate your working from home deductions: the fixed rate method and the actual cost method.

1. Fixed Rate Method

The fixed rate method allows you to claim a set rate per hour you work from home. This method covers expenses that are often difficult to apportion, including:

Data and internet
Mobile and home phone usage
Electricity and gas
Computer consumables (e.g., printer ink)
Stationery

You don’t need a dedicated home office to use this method. However, you can’t claim a separate deduction for any of the expenses the fixed rate includes.

You can claim a separate deduction for:

The decline in value of assets used while working from home, such as computers and office furniture
The repairs and maintenance of these assets
Cleaning (if you have a dedicated home office)

2. Actual Cost Method

The actual cost method allows you to claim a deduction for the actual expenses you incur as a result of working from home. This may include:

Data and internet
Mobile and home phone usage
Electricity and gas
Computer consumables
Stationery
The decline in value of assets used while working from home
Cleaning (if you have a dedicated home office)

This method requires detailed calculations and records. For example, you will need to know and have records of the cost per unit of electricity and average units used per hour.

Record Keeping Requirements

Proper record-keeping is crucial for claiming working from home deductions. Here’s a checklist of records you need to keep:

For Both Methods:

Records for any depreciating assets you claim, including:
- When and where you bought the item and its cost
- When you started using the item for work-related purposes
- How you calculate your percentage of work-related use
- The method you chose to work out the decline in value

For the Fixed Rate Method:

A record of all the hours you work from home for the entire year (e.g., timesheets, rosters, or a diary)
Evidence you paid for the expenses covered by the fixed rate method (e.g., one bill each for phone and electricity)

For the Actual Cost Method:

A record that represents the hours you work from home (e.g., timesheets, rosters, or diary showing at least a 4-week regular pattern of work)
Evidence for every expense you claim, including receipts, bills, or invoices which show the supplier, amount of the expense, nature of the goods, date it was paid, and date of the document
Evidence of your personal and work-related use of the items or services you buy and use

Note: In most cases, a bank or credit card statement alone isn’t enough evidence of a work-related expense.

Final thoughts

Claiming deductions for your home-based business or work-from-home arrangement can significantly reduce your tax liability, but it’s essential to understand the rules and keep accurate records. Always consult with a tax professional to ensure you’re claiming correctly and maximising your deductions within the bounds of the law.

Remember, the key to successful tax management for your home-based work is meticulous record-keeping and a clear understanding of what constitutes business use versus personal use of your home resources. The myDeductions tool in the ATO app can be a helpful resource for keeping track of your expenses and receipts throughout the year.

For more detailed information, visit ato.gov.au/home or book in a chat with Amanda.

A person putting coins in a piggy bank with paper family

Advice Personal Tax

Maximising Tax Benefits: Utilising Additional Superannuation Contributions for Tax Deductions

16/08/2024 Amanda Palmer

At ASAP Solutions, we’re consistently seeking out legitimate methods to assist our clients in reducing their tax liabilities. One effective technique is making extra contributions to superannuation funds. This strategy not only boosts retirement savings but can also offer significant tax benefits.

Understanding Concessional Contributions

Concessional contributions are pre-tax superannuation payments. These include:

Employer contributions (including super guarantee)
Salary sacrifice arrangements
Personal contributions claimed as a tax deduction

The Tax Advantage

Concessional contributions are taxed at 15% within the super fund, which is often lower than an individual’s marginal tax rate. This differential creates a potential tax saving opportunity.

Making Personal Contributions

You can make personal contributions to your super fund and claim a tax deduction. The process is as follows:

Contribute: Put forth a contribution to a complying super fund.
Notify: Send a “Notice of intent to claim” form to the super fund.
Receive Acknowledgement: Secure written acknowledgement from the fund.
Claim: Include the deduction in the tax return.

Contribution Caps

There is a concessional contributions cap to bear in mind:

$27,500 per financial year (effective from 2023-24)
This cap includes all types of concessional contributions (employer, salary sacrifice, personal)

Carry-Forward Rule

If your total super balance is less than $500,000, they may have the option to “carry forward” unused concessional cap amounts from previous years (up to five years).

Key Considerations

Age Limits: Personal contributions can be made by people under 75. Those aged 67-74 must meet the work test or fulfil the work test exemption.
Timing: Contributions must be received by the fund prior to 30 June to be deducted in that financial year.
High-income earners: Those with a salary over $250,000 might be subjected to an additional 15% tax on concessional contributions.

Benefits for You

Reduced Taxable Income: Personal contributions can decrease your assessable income.
Boost Retirement Savings: Additional contributions increase in a concessionally taxed environment.
Flexibility: You can decide how much to contribute, based on your financial situation.

Making extra super contributions can be a win-win strategy, increasing your retirement savings whilst providing immediate tax benefits. But you should always seek advice before making these financial decisions. As your accountant, we can help you navigate contribution rules and caps, to optimise these benefits. Remember, individual circumstances differ and we recommend chatting with a professional to make a strategic decision that suits you.

If you would like to discuss how making additional contributions will impact your tax, please reach out to Amanda for a chat.

Bookkeeper looking at an invoice on a desktop computer.

Business Education Personal

Using Tech for Smarter Accounts Management

02/07/2024 Amanda Palmer

We now live in a connected, digital world, and emerging technologies are transforming how businesses manage their finances—from automation and artificial intelligence (AI) to blockchain technology. In fact, technology is transforming every aspect of how we operate, including the way we manage our business finances. For small business owners, the right tech can be the key to bringing certainty to your business decisions.

This transformation is not just a trend; the reality is that it is affecting all aspects of your business including how you manage your accounts.

Automation

Automating your processes, even as simple as sending recurring invoices, allows you to be more efficient in how you operate, and more accurate in your financial record-keeping. Automated bookkeeping tools can streamline data entry processes, reduce human errors, and provide real-time insights into financial health. Tools as simple as HubDoc which reads key information from bills and receipts and turns that information into usable data, can save hours by replacing tedious manual processes.

Time Tracking

For small businesses, every minute counts, and effective time management can make a significant difference. Time trackers like Toggl or Time Doctor provide a clear picture of how time for you and your team is distributed across various tasks and projects, which is essential for effective planning and resource allocation. These tools also offer insights that can lead to more informed decision-making about where to focus efforts for maximum impact. Time trackers help business owners set realistic timelines for projects and foster accountability and focus among the team, ensuring that everyone contributes effectively to the business’s goals.

Artificial Intelligence

AI can analyse vast amounts of data at lightning speed, offering insights and predictions using your historical financial data. For example, AI-powered tools can provide cash flow forecasting to help with budgeting and decision-making. This technology is making financial management more sophisticated, accurate and efficient for businesses of all sizes.

Blockchain Technology

Blockchain technology is bringing transparency and security to financial transactions. By creating a ledger that records transactions in a secure and tamper-proof way, blockchain ensures the integrity and traceability of financial information. For businesses, blockchain offers a secure way to manage transactions, reduce fraud, and enhance transparency with suppliers, customers, and regulators.

Embracing Technology

The technology we use in our businesses is rapidly changing and brings with it a fundamental shift in the financial management of your business. For small businesses, leaning into these advancements is not just about staying current; it’s about unlocking new opportunities for growth and efficiency. Businesses can transform their financial management by integrating technology into the day-to-day running of their business to enable efficiency, clarity and strategic decision-making.

Final Comments

The journey of adopting technology to run your small business is as much about embracing change as it is about operational efficiency and customer engagement. It paves the way for smarter work processes, deeper insights into market trends, and stronger connections with customers. For small businesses, the future is digital. Having the right technologies at your disposal is key to building a business that’s ready for today’s challenges and prepared for tomorrow’s opportunities.

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