Advice Business

Payday Superannuation Reforms: What Employers Need to Know

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.

Advice Business Strategy Tax

Your 2025 Tax Strategy: Planning Ahead for Smarter Decisions

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:

  1. Take a thorough look at your current position
  2. Create reliable projections for the year-end
  3. Identify potential areas for tax-effective decisions
  4. 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

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

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

  1. 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
  2. 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
  3. 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

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:

  1. Be working from home to undertake your employment or business duties, not just completing minimal tasks
  2. Incur additional running expenses as a result of working from home
  3. 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:

  1. Running expenses
  2. Occupancy expenses (for business owners, not employees)
  3. 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.

Advice Personal Tax

Maximising Tax Benefits: Utilising Additional Superannuation Contributions for Tax Deductions

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.

Business Education Personal

Using Tech for Smarter Accounts Management

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.

Budgeting

Budgeting for Success: BAS Advice for Small Businesses

Whether you’re a seasoned business owner or growing your business, understanding your obligations when it comes to Business Activity Statement (BAS) is critical. GST codes and tracking your BAS obligations can seem overwhelming at first, but it doesn’t have to be as painful a process as many business owners find it to be.

In this article, we’ll explore how BAS works, when you need to start collecting and paying it, and considerations to help you budget for BAS payments.

How BAS Works

A BAS is a form submitted to the Australian Taxation Office (ATO) by businesses to report their tax obligations. It includes details on Goods and Services Tax (GST), Pay-As-You-Go (PAYG) instalments, PAYG withholding tax, and other tax obligations. Essentially, BAS helps you report and pay the taxes you owe based on your business transactions.

To complete a BAS, you will need to provide:

  • Details of your sales and purchases
  • GST collected and paid
  • PAYG withholding amounts
  • Any other taxes applicable to your business

When to Start Collecting and Paying BAS

If your business has a turnover of $75,000 or more, you must register for GST and start lodging BAS. Freelancers and smaller businesses need to be aware of this threshold, as once you cross this threshold it’s time to register and comply with BAS regulations.

When you do start lodging your BAS, doing it at the right time can save you a lot of headaches later down the track. Late submissions can lead to penalties and interest charges, so it is important to be organised and stick to deadlines.

Reporting Obligations and Deadlines

Once registered, you need to report your BAS either monthly, quarterly, or annually, depending on your business size and turnover. Understanding these obligations and keeping track of deadlines will help you stay compliant.

If you have a registered accountant (like us) or a registered BAS agent to submit your BAS on your behalf, the ATO allows additional time to lodge your statements.

Tips for Budgeting to Make Your Payments Manageable

It is important to be aware that paying GST can affect your cash flow, pricing strategies, and financial planning. Ensuring you have systems in place to accurately track GST, collected and paid, will help you manage these impacts effectively. If you don’t have a system in place yet, reach out for a chat and we can help you set up a system to make it easier for you to accurately track and code your transactions.
Accurate financial records are the backbone of effective budgeting and correct reporting to the ATO! Using accounting software can automate much of this process, ensuring that your records are always up-to-date and reliable.

Strategies to Manage Cash Flow

Many small businesses lodge their BAS quarterly, and the combination of super, PAYG and GST can compound and be a surprise if you are not prepared. Three easy things to do to make sure you are prepared is budget, forecast and monitor:

  • Set Aside Funds Regularly: Allocate a percentage of your income to cover GST and other tax obligations.
  • Forecasting: Use financial forecasting to anticipate your tax liabilities and plan your finances accordingly.
  • Monitor Expenses: Regularly review your expenses to identify cost-saving opportunities.

ATO Instalment Plans Explained

For businesses struggling to meet their BAS obligations, the ATO offers instalment plans. These plans allow you to spread your payments over a longer period, making them more manageable. However, it should be noted that it is at the discretion of the ATO to approve a payment plan, and you shouldn’t assume you will be eligible. ATO payment plans are a safety net or last resort for businesses struggling to meet their obligations.

Making Sure BAS is in Your Budget

We recommend incorporating BAS into your overall budgeting process. This means regularly reviewing your financial plan to ensure that funds are allocated for your tax obligations. Periodically review and adjust how much you are setting aside to reflect changes in your business operations or financial circumstances.

Budgeting for BAS doesn’t have to be a daunting task. If you need assistance, we are here to help. Feel free to book a chat with Amanda and keep your business on track.

Book a Chat

Business

Small Business Financing: Your Options Explained

As a small business owner, securing the right financing is crucial for your company’s growth and success. If you are ready to expand, understanding your financing requirements and options is important to acquire funding to grow your business. In this blog post, we’ll explore the world of small business financing, helping you make informed decisions to take your business to the next level.

Understanding Small Business Funding

Access to sufficient capital is often the difference between a thriving business and one that struggles to stay afloat. However, it is crucial to ensure that you have a well-crafted business plan and that your financial projections are sound before committing to any financing options. As a business owner looking for funds to grow your business, you might have questions like:

  • What financing options are available for my business?
  • How can I effectively manage working capital?
  • Are there any new platforms for finding business financing that I should consider?

Types of Business Financing

There are several types of financing options available for small businesses, each with its own advantages and considerations. Let’s take a look at some of the most common:

  • Business Loans – Traditional bank loans and online lenders provide loans similar to a personal loan where you do not need to give away any of your equity but you will need to make regular repayments at the agreed interest rate.
  • Lines of Credit – This is flexible financing that allows you to borrow funds as needed, up to a predetermined limit. It is often used where there is a cashflow shortfall between incoming and outgoing funds. For example, you need to pay your employees but your client is late in paying their invoice.
  • Government Grants – Government entities often provide grants that do not require repayment, making them a highly advantageous option for qualifying small businesses.
  • Angel Investors – These are individuals who provide capital, usually in exchange for equity or ‘convertible debt’ – a loan that can turn into equity.
  • Crowdfunding – Raising funds through online platforms, often in exchange for rewards or equity.
  • Investor Funding – Obtaining funding from investors, such as venture capitalists (VCs), is another viable option for small businesses with high growth potential.

Choosing the Right Financing for Your Business

With so many financing options available, how do you choose the right one for your small business? Consider factors such as:

  • Prepare a Solid Business Plan – Have a clear understanding of your business’s viability, growth potential, and repayment ability.
  • Funding Amount – How much capital do you need, and which options provide that level of funding?
  • Repayment Terms – Look for financing with repayment terms that align with your business’s cash flow and growth projections.
  • Interest Rates and Fees – Compare interest rates and fees among different options to ensure you’re getting a fair deal.

Additional Aspects to Consider

If you are new to business financing, two areas that often cause confusion are investor funding and government grants. Venture capitalists (VCs) are entities or individuals who invest in emerging companies in return for shares of equity. Their contribution goes beyond mere capital infusion; they bring invaluable business acumen, industry networks, and strategic guidance that can propel a business’s growth. However, it’s imperative to understand that although VC investments can inject substantial financial backing and mentorship into your business, achieving this requires a compelling pitch, a visionary business plan, and the willingness to relinquish a significant portion of your company’s equity.

Government grants, on the other hand, are funds allocated for specific objectives like research and development, innovation, or market expansion. It’s essential to acknowledge the high level of competition for such grants and the rigorous standards and reporting obligations involved. Nevertheless, receiving a grant provides your business with financial support without necessitating equity concessions or incurring debt, offering a substantial advantage for your company’s financial well-being.

Understanding Your Options

It’s crucial to understand that every business is unique, and what works for one may not work for another. Conducting thorough research is essential. Accountants often collaborate with financial planners and brokers as part of a team, supporting businesses in finding a financing structure that best suits their individual needs and circumstances.

If you are still wondering about how each funding structure works, let’s consider a few different scenarios:

  • A local restaurant expanded operations by securing a business loan to renovate and increase seating capacity, working with a commercial lender for tailored advice.
  • An e-commerce startup launching a new product line might explore a mix of a business line of credit and small business grants, showing the varied funding avenues available.
  • A small manufacturing company invested in new machinery using a traditional bank loan, using the equipment as collateral. This strategy’s fixed payments were aligned with their revenue projections for a manageable repayment schedule.
  • A tech company initiated a crowdfunding campaign to raise funds for developing and launching an innovative software product, building a supportive community in the process.

Financing for Growth

Securing funding is a critical aspect of running your business, but equally important is ensuring that your business structure and liability considerations are adequately addressed before making any substantial financial commitments. This is particularly crucial if you anticipate rapid growth for your business. It’s essential to have the appropriate structure in place, to fully understand your cash flow projections, and to be aware of any tax or other legal obligations that may arise as your business expands.

Should you have any questions or require assistance in crafting forecasts and budgets for your business plan, please feel free to reach out for a chat.

NDIS Tax

Cracking the FBT Code: A Guide for NDIS Professionals

Navigating the complexities of taxation can be daunting. For those of you navigating the National Disability Insurance Scheme (NDIS) sector, dealing with the nitty-gritty of Fringe Benefits Tax (FBT) can be quite confusing. Fringe Benefits Tax (FBT) is a topic that often brings about more questions than answers for support workers and coordinators.

What Exactly is Fringe Benefits Tax?

You may have heard the term FBT thrown around, but what is it really about? Well, simply put, it is a tax that employers pays on certain benefits they provide to their employees or their employees’ families on top of wages.

These perks or benefits could include meal vouchers, a company car, or even a gym membership. It’s completely separate from the income tax that we are all familiar with.

Essentially, if your job rewards you with some additional perks, the tax man calls this a ‘fringe benefit’ and expects the employer to pay up.

The Why Factor

If it is such a hassle, why would you, or your employer offer perks under FBT? It’s all about attracting and keeping top talent in the NDIS arena.

Now, we all like a good perk or two, don’t we? In the NDIS sector, your employers often reward employees with fringe benefits such as a car to can use when they are off-duty, meals, gym memberships, or skill-enhancing training sessions.

In a sense, these perks serve as non-monetary payment for employees. Therefore, FBT regulations are in place to calculate the deductions or taxes that the government receives from such payments.

Doing it by the Book: FBT Obligations for Employers

If you’re on the giving end of these benefits, you have to:

  • Make it Official: Register for FBT
  • Crunch the Numbers: Work out how much tax is due, which is a calculated between the value of benefits and tax rates.
  • Document Everything: Keep track of expenses and calculations – every little detail about the benefits and your tax calculations needs to be recorded.
  • File and Pay Up: Lodge a return and settle your FBT dues with the Australian Taxation Office (ATO).
  • Don’t Forget the Paper Trail: Report fringe benefits on your employees’ payment summaries or through Single Touch Payroll (STP) income statements.

What This Means in the Real-World: Common FBT Use Examples in NDIS

Fringe benefits range from the straightforward, like a company car, to things like financial assistance for education, which can be a lifeline for personal growth and remaining compliant.

Accommodation fringe benefits are sometimes used for those who need to travel to undergo specialised in-person training or conferences. Or accommodation could be required to accompany a client for medical or personal reasons; or perhaps you employ specialists such as a physio who visits regional areas on rotation? These might be regular occurrences in your business, or out of the ordinary.

Most common benefits are the essential tech tools of the trade. Phones, ipads, laptops and other tools needed to help your team do their job that you provide for personal use as well can be considered Fringe Benefits.

You may also purchase Gym memberships so your team can train with your clients, or perhaps other activities like the theatre, museum, or other activities that a membership is required for in order to facilitate a clients NDIS plan.

Final Thoughts

Whether you’re giving the benefit or receiving it, understanding the FBT landscape is crucial. While FBT might seem taxing (pun intended), it’s all about investing in people—ultimately, fostering a workforce that’s both fulfilled and more productive. Investing in your workforce means a better quality of service for your clients – and that’s something we can all get behind.

Whether you’re an individual support worker, a coordinator, or a business in the NDIS framework, professional advice can help you correctly navigate these tax-law headaches. If you would like to know more, reach out for a chat with me today.

With the right tools and knowledge, you can confidently navigate the world of FBT in the NDIS sector.