GST and using or receiving digital currency

What to do when you receive and use digital currency as payment for goods and services

Digital currency as payment for goods and services

Receiving or using digital currency to pay for goods and services in your GST-registered enterprise is the same as using money, but it is different to trading digital currency.

Receiving digital currency

If you make a taxable supply and you receive digital currency as payment, the GST amount for that payment included in your business activity statement must be in Australian dollars.

Your tax invoice must meet the normal tax invoice requirements and include either:

  • the GST payable in Australian dollars
  • sufficient information to work out the GST payable in Australian dollars.

Examples of sufficient information includes the:

  • price expressed in Australian dollars
  • value expressed in Australian dollars, or
  • conversion rate used by the supplier, or a statement, to work out the GST payable if it is not in Australian dollars.

Using digital currency

If you use digital currency to make a purchase for your GST-registered enterprise and claim a GST credit, the GST amount of the credit in your business activity statement must be in Australian dollars.

To work out your GST credits, your tax invoice will include either:

  • the GST amount in Australian dollars
  • sufficient information to determine the GST amount in Australian dollars.

How to convert digital currency

To work out the value of your digital currency for your business activity statement, you must use the exchange rate on the conversion day that applies to you.

Exchange rate

If the exchange rate is in Australian dollars, you may choose to use the exchange rate:

  • from a digital currency exchange or website, or
  • agreed on between the supplier and the recipient.

If the exchange rate is in a foreign currency, you must convert the amount expressed in foreign currency to Australian dollars.

Conversion day

The conversion day is the date you use to convert your digital currency into Australian dollars.

If you account for GST on a non-cash basis, your conversion day is determined by whichever happens first of either the:

  • day you receive any of the payment
  • transaction date or invoice date.

If you account for GST on a cash basis, your conversion day can be the transaction date, invoice date or the day you receive any of the payment.



The 120% technology and skills ‘boost’ deduction

The legislation granting small and medium businesses (SMBs) the opportunity to claim a 120% tax deduction for technology expenses, skills training and training costs has finally passed Parliament, nearly a year after the announcement in the 2022-23 Federal Budget.

However, there are a few timing complexities involved. To benefit from the technology investment boost, you needed to have purchased and installed the technology by 30 June 2023, which was just seven days after the legislation was passed.

Key points

  • Under both the technology and Skills and Training Boost, eligible expenses will be available for the 120% deduction if they were incurred between 29 March 2022 and 30 June 2024
  • The bonus deduction for the technology boost is capped at 20% of the eligible expenditure, up to a limit of $20,000 ($100,000 of eligible expenditure)
  • There is no limit for the skills and training boost.

Who is eligible for the boosts?

Small business entities (including individual sole traders, partnerships, companies or trading trusts) with an aggregated annual turnover of less than $50 million can access the 120% skills and training boost, as well as the technology boost. Aggregated turnover includes the turnover of your business, affiliates and connected entities.

The technology investment Boost

Expenses that may qualify for the technology boost include:

  • Digital enabling items like computer hardware, telecommunications equipment, software, internet costs, computer network systems and services that facilitate their usage.
  • Digital media and marketing expenses including audio and visual content that can be accessed, stored or viewed on digital devices, as well as web page design.
  • E-commerce goods or services that support digitally ordered or platform-enabled online transactions, portable payment devices, digital inventory management, subscriptions to cloud-based services and advice on digital operations or digitisation such as guidance on digital tools for business continuity and growth.
  • Cybersecurity systems, backup management and monitoring services.

The technology must be primarily or substantially used for a business’s digital operations or digitisation. There must be a direct connection to how the business generates income, particularly through its digital operations.

There are several costs that the technology boost does not cover, such as expenses related to staff employment, capital raising, construction of business premises and the cost of goods and services sold by the business. The boost does not apply to:

  • Assets purchased and sold within the relevant period (on or before 30 June 2023)
  • Capital works costs, including improvements to business premises
  • Financing costs like interest expenses
  • Salary or wage costs
  • Training or education costs, meaning that training staff on software or technology does not qualify (refer to Skills and Training Boost below)
  • Trading stock or the cost of trading stock.

The Skills and Training Boost

The Skills and Training Boost is a program that provides SMBs with a 120% tax deduction for external training courses offered to their employees. The primary objective of this boost is to facilitate the growth of SMBs’ workforce by enabling them to hire and upskill less-experienced employees through external training. This initiative aims to enhance their skills and increase overall productivity.

Please note that sole traders, partners in a partnership, independent contractors and other non-employees are not eligible for the boost as it is specifically designed for employees. Similarly, associates such as spouses or partners, as well as trustees of a trust, are not qualified to participate.

To ensure compliance, there are a few rules to be aware of:

  • Registration for the training course must have occurred between 7:30 PM (AEST) on 29 March 2022 and 30 June 2024. If an employee is already enrolled in an eligible training course, enrolments in subsequent courses or classes after 29 March 2022 are considered eligible.
  • The training must be deductible to your business according to ordinary rules, meaning it should be directly related to how your business generates income.
  • The training needs to be provided by a registered training provider who charges your business (either directly or indirectly) for the training. (Please refer to the section on “What organisations can provide training for the boost?” below)
  • The training must be intended for employees of your business and should be delivered either in-person within Australia or through online platforms.
  • The training provider cannot be your business or an associate of your business.

Training expenditure can include costs associated with the training, such as resources or equipment necessary for the course, provided that the training provider charges your business for these expenses.

What organisations can provide training for the boost?

Please note that not all courses offered by training companies will qualify for the boost. Only courses offered by registered training providers within their registration will be eligible. Typically, these providers offer vocational training to acquire a trade or courses that contribute to a formal qualification, rather than purely professional development.

Qualifying training providers will be registered by:

While some desired training may not be delivered by registered training organisations, there is still a wide range of options available. Short courses offered by universities or flexible courses designed for upskilling, rather than obtaining a degree qualification, can still be explored, especially if they align with the development pathway identified through recent performance reviews for your staff.


Moving to new Xero Reports

Moving to new Xero Reports

Xero is retiring older versions of their reports on 31 July 2023

In coming weeks, Xero will be transitioning some favourite ‘starred’ reports from the old version to the new version.

When users click on these reports in their favourites list, they will be automatically redirected to the new version of that report. This change is being made because Xero is retiring older versions of their reports on 31 July 2023 and they want to ensure that Xero users are prepared.

The new versions offer more flexibility and customisation, quicker access to insights and deeper analysis of business performance. Xero is aware that this change may take some time to get used to and is giving users plenty of time to make the switch.

Using new Xero Reports

Xero is urging users who haven’t yet switched to new reports to start moving their work across now. This way, there is time to adjust before older versions are retired:

  • Users can take a product tour of some of Xero’s most popular reports, such as the new Profit & Loss or Balance Sheet reports, and find a tips and tricks panel on the right-hand side showing links to support articles and how-to videos
  • Check out Xero’s reporting playlist on YouTube for help on tailoring reports in Xero
  • Start using Xero’s layout importer tool in the Profit & Loss, Balance Sheet and Budget Variance reports to bring saved layouts across to new versions
  • If needed, users can return to the older versions via the overflow menu in the Report Centre until 31 July 2023.

At Allan Hall, we have extensive experience using a wide variety of accounting software packages and can provide advice on which software is right for you.



Support to help businesses go digital

Digital Solutions — Australian Small Business Advisory Services

Round 1 of the Digital Solutions program will end on 31 March 2023.

What do you get?

The Digital Solutions – Australian Small Business Advisory Services program works with small businesses to make the most of digital tools and offers broader advice specific to your business needs such as:

  • how digital tools can help your small business
  • websites and selling online
  • social media and digital marketing
  • using small business software
  • online security and data privacy.

Digital Solutions is a 7-hour packaged service that offers 3 hours of one-on-one tailored support as well as group workshops or webinars.

Who is this for?

Small businesses with fewer than 20 full-time (or equivalent) employees, as well as sole traders, can access services at the subsidised rate. The service is available across all metropolitan and regional areas in Australia. 

How much does it cost?

The Digital Solutions program is $44 for 7 hours of support and your first interaction with the service is free. 

About the Digital Solutions advisers

Digital Solutions advisers hold formal qualifications in business or information technology-related disciplines and have at least 2 years’ experience providing digital advice to small or medium-sized businesses.

Contact your local Digital Solutions provider

There are Digital Solutions providers in each state and territory across Australia. Complete a short form to connect with your local provider.

Support for businesses affected by COVID-19

Digital Solutions providers are also offering general business advice to support you through this difficult time, including: 

  • business crisis management and business continuity planning
  • finance management and boosting cashflow
  • staff management and creating a safe work environment
  • retaining and staying connected to customers
  • resilience and wellbeing
  • COVID-19 stimulus packages for small business.

Find more at coronavirus information and support for businesses.



Understanding eInvoicing

Change can be hard, particularly when things seem to be working and the need to do things differently isn’t obvious.

Perhaps you’ve found this when it comes to invoicing for your business.

You may be used to sending PDF invoices via email and manually entering the invoices you receive into your accounting software. You may even be used to dealing with regular problems with invoicing, like late, lost or compromised invoices or mistakes.

If you think this is all the normal cost of running a business — it doesn’t have to be!

Switching to eInvoicing will help you reduce manual data entry, because eInvoices automatically appear in your business software, ready to be checked and paid.

While getting started with eInvoicing can seem daunting, it’s probably much easier than you think.

Deputy Commissioner for Small Business Deb Jenkins presents a new series of short videos about eInvoicing to help you out. They help explain how eInvoicing can benefit your business by helping you save time and money.

eInvoicing doesn’t give the ATO access to your invoice data. It’s not a compliance measure; it aims to reduce your admin, boost your cash flow and give you more time to focus on what matters most.

eInvoicing products and services are becoming more available over time. More than 16,500 Australian businesses are adopting it, including well-known and large Australian companies and federal and state governments.

There has never been a better time to get started. Talk to your adviser or business software provider today to find out about making the change.


business recovery

Where Opportunity Lies small business report

Australia’s new small business boom

A Xero study shows Australia’s small business boom is expected to continue over the next ten years.

Research into Australia’s small business sector reveals that our small business boom is expected to continue over the next ten years, with an additional 3.5 million new small businesses expected to be established.

While the pandemic disrupted thousands of businesses, it also created opportunities for new businesses in a variety of industries. For example, while brick-and-mortar stores were bleeding, e-commerce reached new heights. Similarly, Fintech and Edtech companies saw a significant increase in their consumer base.

Prior to the pandemic, small businesses accounted for 99.8% of total businesses, 66% of employment, and 55% of value added in Australia. This rapid growth in response to an economic crisis is unprecedented, and it is the polar opposite of what happened after previous periods of economic uncertainty, such as the 2007-09 Global Financial Crisis.

According to the study, the following external factors are likely to have contributed to the increase in new business registrations:

  • Job uncertainty: reduced hours, redundancies, limited opportunities for pay rises 
  • Great resignation: Australians re-evaluated their job satisfaction and sought greater enrichment, control, and flexibility in their work. 
  • Digitalisation: increased use of technology and digitalisation has decentralised many workplaces creating opportunities for business owners to work in regional areas. 
  • New opportunities: the rise of the gig economy, digital ways of working, and favourable business lending have created the conditions for more budding entrepreneurs to take the plunge.

Australia’s small businesses are investing in their recovery, with an uptick in financing for equipment and machinery financing among small businesses.

The Federal Budget included provisions that allow small businesses to receive a $120 tax deduction for every $100 spent on employee training or technology investment, up to a maximum of $100,000 per year.

According to Xero, the landmark report arrives at a hopeful chapter in our nation’s pandemic journey: one that sees a surge in small business creation as Australians adapt to uncertainty.


Four ways to teach children healthy money habits

Four Ways to Teach Children Healthy Money Habits

Set a good example in doing a healthy money habits for your children with just a few simple changes.

As a parent, you try to ensure your children have the skills to make smart financial decisions. For example, you tell them about the importance of saving or the power of compound interest.

But did you know that you could be sending them negative money messages without meaning to?

Here are four common ways you could teach your children healthy money habits.

1. Revealing the magic behind digital money

Your children have likely seen you pay for hundreds of transactions without glimpsing cash changing hands. For small children, it can seem like money problems are solved with magic – just wave or tap a plastic card. This makes it important to discuss the value of money with them. A good way to start is to explain how your earnings get deposited into your bank account and how you use this account to pay bills. For older children, consider showing them how taxes are deducted from your salary.

2. Spending wisely

Frequently buying things on an impulse could send the message that it’s fine to spend without planning. Sticking to a budget is key to avoiding impulse-buying. To set an effective budget, consider working with a professional financial adviser. Your adviser can develop a budget that factors in your income, expenses and financial obligations.

3. Teaching them independence

It’s convenient to do everything for your children. But by giving them a chance to have their own money and decide how and where to spend it, they could learn powerful lessons about budgeting. For adult children, always offering them financial help can create a cycle of dependency. Letting them make their own money decisions could help them develop financial responsibility.

4. Including them in budgeting

Many parents keep household financial planning and budgeting to themselves. While you don’t have to fully involve your children in managing your family’s finances, giving them a role to play, such as getting them to do grocery shopping using a set budget, can teach them lessons about money. If your children are old enough to earn some income, why not help them set their own long-term financial goal?

Using your influence positively

You can strongly influence your children in relation to money, so it’s important to pass on smart money management skills. If you don’t know where to start, consider reaching out to your financial adviser to help you stay on top of your finances through proper planning and budgeting.


General Advice Warning

The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Mark O’Connell, Robin Bell and Allan Hall Financial Planning Pty Ltd are Authorised Representatives of Consultum Financial Advisers Pty Ltd ABN 65 006 373 995 AFSL 230323.

NSW Small Business Recovery Grant

NSW Small Business Fees and Charges Rebate Upgrade

NSW Small Business Fees and Charges Rebate

As part of the Economic Recovery Strategy, the NSW Government has:

  • announced that the small business fees and charges rebate will increase from $1,500 to $2,000
  • added road user tolls for business vehicles as an eligible fee for businesses to claim as part of the rebate

The rebate is provided in the form of a digital credit, which businesses can draw down on to offset the cost of eligible NSW and local government fees and charges.

Small businesses will be able to claim road user tolls under the Small Business Fees and Charges Rebate, which is being increased from $1,500 to $2,000 from November 2021.

The digital credit for businesses that have already signed up to the rebate will be automatically increased from $1,500 to $2,000.

The rebate will be available until 30 June 2022. Businesses can claim the rebate against invoices that were due and paid from 1 March 2021. Check what fees and charges are available on the Service NSW website. 


Please be aware that there is a high level of scamming activity around COVID-19 rules and regulations and, in particular, grants and relief. These scams are increasingly sophisticated and many involve impersonation such that they may appear to come from legitimate advisors (such as Allan Hall).

At Allan Hall, we will never request money upfront, deposits, transfers to personal accounts, payments via gift cards or other unexpected or unusual payment methods. If in any doubt, contact us via phone before taking actions that appear to be at the request of Allan Hall.

Parliament House

2021-2022 Federal Budget

Taxation and Accounting Overview

The Budget lists increased support for unemployed Australians as the single largest item of new spending, with $697.4 million in new spending in 2020-1 and $9.46 billion over five years, including the four years of the Forward Estimates.

However the Budget splits Aged Care spending into two separate items – residential care and home care. Together these account for $18.25 billion in new spending over five years. The Budget also includes $13.2 billion over four years for the NDIS.

The Budget deficit will reach $161 billion in 2020-21, before falling to $57 billion in 2024-25. Net debt will increase to $617.5 billion or 30.0 per cent of GDP this year and peak at $980.6 billion or 40.9 per cent of GDP in June 2025.

The Budget includes a further $1.9 billion for the roll out of vaccines. It provides another $1.5 billion for COVID-related health services, including for testing and tracing, respiratory clinics and telehealth.

To read our comprehensive Budget report outlining the changes to taxation and accounting, please click here. For all other Budget documents, including an overview from the Australian Government, please visit the Budget website:

We have provided an overview for tax, superannuation and other key areas as follows.

Personal tax

The Budget provides $7.8 billion in tax cuts by retaining the low and middle income tax offset (LMITO) in 2021-22. LMITO, which was introduced as a coronavirus measure was due to expire in June 2021.

An additional $25.1 billion in tax cuts announced in previous Budgets are expected to flow to households in 2021-22.

Around 10.2 million individuals will benefit from retaining the offset in 2021-22, which is worth up to $1,080 for individuals or $2,160 for dual income couples.

Business tax concessions

The Budget extends by one year two business tax concessions announced in the 2020-21 Budget — temporary full expensing and temporary loss carry-back. Together, temporary full expensing and temporary loss carry-back provide an incentive for businesses to bring forward investment to access the tax benefits before they expire.

Combined, the extension of the temporary full expensing and temporary loss carry-back measures is estimated to deliver a further $20.7 billion in tax relief to businesses over the forward estimates.

Small business tax disputes

The Budget confirmed a pre-Budget announcement allowing small businesses to litigate tax disputes with the Australian Tax Office before Administrative Appeals Tribunal, rather than the slower and more expensive litigation before the Federal Court, as at present.

Skills and training

The Budget provides $2.7 billion for more than 170,000 new apprenticeships and traineeships including 2,700 places in Indigenous girls academies to help them finish school and enter the workforce, and more STEM scholarships for women, in partnership with industry.

Manufacturing innovation

The Government has established a new “patent box” starting on 1 July 2022. Under the patent box, income earned from new patents that have been developed in Australia will be taxed at a concessional 17 per cent rate. The patent box will apply to the medical and biotech sectors and the Government said will consult on expanding it to the clean energy sector.


  • The Budget Increases the amount that can be released under the First Home Super Saver Scheme from $30,000 to $50,000.
  • It also removes the $450 per month minimum income threshold for the superannuation guarantee. The Treasurer said, “This will improve economic security in retirement for around 200,000 women.”
  • The Government has removed the work test on voluntary superannuation contributions to superannuation by people aged 67 to 74.
  • It will also allow those aged over 60 to contribute up to $300,000 into their superannuation if they downsize their home, freeing up more housing stock for younger families.
  • The Pension Loan Scheme has been expanded, providing immediate access to lump sums of around $12,000 for singles, and $18,000 for couples.

Higher education

The Budget provides an extra 5,000 places in higher education short courses.


The Budget confirms the pre-Budget announcement of $1.7 billion investment in childcare.

Digital infrastructure

The Budget contains $1.2 billion for a Digital Economy Strategy. It will

  • Establish a new national network of Artificial Intelligence Centres to drive business adoption of these new technologies.
  • Expand the Cyber Security Innovation Fund to train the next generation of cybersecurity experts.
  • A digital skills cadetship trial which combines workplace and vocational training.

Need help?

If you would like assistance to interpret these changes and how they may affect your individual circumstances or your business, please contact your Allan Hall Advisor on 02 9981 2300.