How to prepare your personal budget

A personal budget is a finance plan that allocates future personal income towards expenses, savings and debt repayments. In other words, it’s a plan that sets out how you’ll spend and save your money. Some people hear the words ‘Personal Budget’ and think restriction, limitation and confinement. They imagine having to cut all spending and live on bread and water. Instead, think of it as your spending plan. By planning…  Read more

JobKeeper 3.0: What you need to know

On 21 July 2020 the government announced that JobKeeper would be extended until 28 March 2021. But not in its current form and with new eligibility requirements. This was called JobKeeper 2.0. On 7 August JobKeeper 2.0 was replaced with JobKeeper 3.0 as a result of new restrictions on business’ in Victoria but will be applied to all business’ Australia wide See below for a summary of JobKeeper 3.0 and…  Read more

Xero’s short-term cashflow feature for businesses

Business cashflow is simply money coming in and money going out of the business. Your outgoings will include things like rent, payroll, taxes and supplies. Your income will be revenue from sales but might also include investment funds or the sale of assets. For most businesses, income and expenditure don’t always happen at the same time so focussing on strong cashflow management will help you prepare for the shortfalls and…  Read more

Finding the balance

Looking for a little more work-life balance? Sometimes it seems impossible when you are in the thick of it. The following ideas might help provide some light at the end of the tunnel. Prioritise – Work often dictates to us, rather than the other way around. Create a list of all the things that need doing and categorise them. For example, work out the tasks that are ‘important but not urgent’…  Read more

Tax Tips for Individuals

Are you capturing all your work-related deductible expenses to make the most of your tax return? Income The Australian Taxation Office (ATO) automatically receives information from your employers about salary and wages that you have been paid for the financial year. You need to declare all income from other sources on your tax return as well. Wages and salaries from employment Pensions, annuities or government payments such as JobSeeker or…  Read more

Payroll Updates: Minimum Wage, Award Changes and Parental Leave

Minimum Wage Staggered Increases and Award Changes The national minimum wage increased on 1 July by 1.75% to $19.84 per hour (or $753.80 per week). The minimum wage increase applies to employees on JobKeeper if their pay rate is defined by an award rate or the national minimum wage. This means the amount of JobKeeper top-up payment may reduce in alignment with the wage increase. This year, the Fair Work…  Read more

As low as it could go: is now the moment to fix your mortgage rate?

Australia’s cash rate is now the lowest it has been in 23 years, a reaction initially to stunted economic growth and now to the impact of COVID-19 on the local and global economic landscape. As the uncharted negative interest rate zone looms, is it worth fixing your rate? Here’s what to weigh up when making your decision. The RBA has stood by its promise to keep the current rate of…  Read more

RADS simplified in 4 points

One of the first things you come across when moving into residential care is the need to pay for your room. With quoted prices of up to $2 million, the numbers may send families into panic. However, they can be less frightening if you understand how these fees work and what choices you have. So, what are the four (4) key points that you need to know? The money will…  Read more

Choosing a new business bank account?

A business bank account is an essential requirement for any business. But with so many banking providers out there, how do you know which business account to choose? The key is to know what you require from a bank account, and to choose a bank that understands the banking, financial and funding needs of your business. Choosing an account that fits your business needs Whether you’re a new sole trader…  Read more

Review your expenses – and save yourself money

Running a business will always mean incurring certain expenses, or ‘spend’. There are always costs, overheads and supplier bills that mount up – and these expenses will gradually chip away at your cash position, making it more difficult to grow and make a profit. So, what can you do to reduce your spend levels? And what impact will this have on your overall margins, profits and ability to fund the…  Read more

New Super Carry Forward Rules – Maximise Your Contributions

If your superannuation fund balance is less than $500,000, a new rule means you are now able to carry forward any unused concessional contribution from prior years into following years. This allows you to maximise the tax benefits of contributing the upper limit concessional amount. It also gives you some flexibility with being able to contribute more in years that you have the cash flow to do so. This is…  Read more

Getting a Foot in the Door: What you need to know about the new HomeBuilder grant

As part of the economic response to the COVID-19 pandemic, the federal government’s HomeBuilder program provides eligible owner-occupiers – including first home buyers – with a grant of $25,000 to build a new home or substantially renovate an existing home before the end of 2020. It can pay to check if you’re eligible and what you’ll need to do to apply if you are. HomeBuilder is designed to complement existing…  Read more

Remember the banking royal commission? Changes are coming your way

Had it not been for COVID-19, a number of royal commission-led changes to the banking and finance industry would already have been in place – with more to come in December. Here’s what that means for brokers and for you. In May, Treasurer Josh Frydenberg made an important announcement to the country as we began to seriously batten down the hatches in the face of the growing COVID-19 pandemic. The…  Read more

Back in Action: How long-term low interest rates could benefit your business

In late June, during an online panel discussion hosted by ANU’s Crawford School of Public Policy, RBA Governor Philip Lowe said what many had already assumed: “I think it’s likely we’re going to see interest rates at their current level for years”. So it was no surprise that rates have been held at 0.25% for July – where it looks they’ll be staying for quite a while. Let’s look at…  Read more

Surround yourself with champions

It’s human nature to be influenced by the people in your inner circle. In fact, the odds of being successful are a lot higher if you’re surrounding yourself with people who are also successful. In a business context, consider very carefully the people and friends you associate with. Who plays a role in influencing your life? Who are your role models, mentors, and supporters? “You’re the average of the five…  Read more

6 Reasons To Look at Your Financial Reports

Making time to look over your financial reports each month is an important task for any business owner. If you are not taking the time to do this, either because you’re too busy, or perhaps you don’t really understand what you’re looking at and it doesn’t make sense to you, then here are 6 reasons we recommend that you should start to. But before we get our 6 reasons, let’s…  Read more

What to do if you get audited

No business owner looks forward to a letter from the taxman requesting a closer look at the books. If you’ve received an audit letter – an official request by the tax authority to review your accounts and confirm your taxes have been paid to date – don’t panic. Prepare. These four steps will help you get through the process with minimal stress and the best possible outcome. Respond promptly If…  Read more

Encouraging word of mouth

If you have any doubt that word of mouth referrals are important, consider these recent stats: According to Neilson, 92% of shoppers trust recommendations from friends and family more than traditional advertising 20% to 50% of consumer purchases are made because of a word of mouth recommendation 81% of buyers are influenced by their friends’ social media posts. So how can you encourage positive word of mouth for your small…  Read more

Eight Characteristics of successful small businesses

We now look at eight characteristics important to successful businesses. International researchers who have studied many small businesses have found that these characteristics consistently play a part in the success of small companies. The eight characteristics are: Owners leading by Example Having a simple business structure Information sharing among employees Staff are carefully chosen Staff commitment and loyalty A unique product or service A specific Customer focus Prompt follow up…  Read more

Documenting your sales process

Businesses that follow a documented sales process generate more revenue. Prospective customers should receive the same service no matter which member of your sales team they deal with. A documented sales process ensures your sales team knows the correct process to follow; providing prospective customers a consistent experience. It’s important to include your sales team in the development of your sales process to gain valuable insights and ensure they’re on…  Read more

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