Tag: reporting

meeting

ATO issues ‘good governance’ checklist for NFPs

Posted on | by Allan Hall

The Tax Office has reminded not-for-profit organisations to check that tax and super obligations are being met effectively to uphold good governance.

Background

It’s important that your NFP organisation has good governance and you are meeting your tax and super obligations. You need to check that you continue to be entitled to:

  • deductible gift recipient (DGR) endorsement
  • income tax exemption
  • other tax concessions.

To do this, you should complete a self-review of your NFP every 12 months and when your organisation makes changes to its governing rules or structure and activities.

The checklist and worksheets below will help you complete your self-review. You may need to complete more than one worksheet depending on the entitlements you are claiming.

You must also:

If you don’t notify the ATO of changes to your eligibility or registration details, penalties or a referral to prosecution may apply.

Not-for-profit good governance checklist

All NFPs should complete the self-governance checklist. This will help you:

Eligibility to income tax exemption

From 1 July 2023, non-charitable NFPs with an active ABN need to lodge an annual self-review return to confirm their eligibility to self-assess as income tax exempt.

NFPs that self-assess as income tax exempt, can use the questions in the ATO’s self-review guide to conduct an early review. This can be done before the NFP-self-review return is available on 1 July.

Charitable NFPs endorsed as a tax concession charity (TCC), must self-review TCC endorsement annually, and whenever there is a change in the charity’s structure, purposes or operations.

Charities are not required to lodge the NFP self-review return with the Tax office.

The following worksheet will help charities review their TCC endorsement:

Deductible gift recipient (DGR) endorsement worksheets

The following worksheets will help you to work out whether your NFP organisation is still entitled to endorsement as a DGR.

Select the worksheet that applies to your organisation:

CONTACT ALLAN HALL BUSINESS ADVISORS

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small business owner

ATO focus areas for small business

Posted on | by Allan Hall

The ATO reveals what they’re focusing on for small business and how to get it right.

The ATO has published their focus areas for small business. It shows small business owners the current risks and behaviours attracting the ATO’s attention.

The ATO actively detects, treats and addresses concerning behaviours to ensure all small businesses can operate on a level playing field. Their 3 key focus areas include:

  • business income is not personal income
  • deductions and concessions
  • operating outside the system.

The ATO will continue to publish new focus areas quarterly. By being transparent about what attracts their attention, they want to ensure small businesses get it right from the start.

Use the ATO’s focus areas for small business as a guide for conversations to help get your tax right.

Business owners are also encouraged to visit good business habits and Essentials to strengthen your small business, the ATO’s online learning site that offers over 30 free, self-paced courses.

CONTACT ALLAN HALL BUSINESS ADVISORS

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running a business

Running an SMSF publication now available

Posted on | by Allan Hall

Managing Your SMSF: A Comprehensive Guide for Every Stage

From contributions to reporting, this guide offers essential insights for those running their SMSF.

If you are thinking of starting an SMSF or already have an SMSF you should refer to this publication. It provides guidance on:

  1. contributions and rollovers
  2. managing investments
  3. paying benefits
  4. administering and reporting.

This ATO publication completes the suite of lifecycle publications and complements two existing publications Starting a self-managed super fund and Winding up a self-managed super fund.

SMSF EDUCATION PRODUCTS

Looking for the latest news for SMSFs? 

You can stay up to date by visiting our SMSF News or by speaking with our specialist SMSF Team.

CONTACT ALLAN HALL SUPERANNUATION

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managing debt

Tax Office toughens stance on tax debts

Posted on | by Allan Hall

ATO toughening its stance on tax debts 

The ATO is becoming increasingly difficult with penalty remissions and approving payment plans for outstanding debts. 

When requesting the ATO team for a payment plan, we now need to prove the capacity to pay (profit reports and assets/liabilities) when:

  • There is a default on the account ie you have missed making scheduled payments on prior payment plans
  • There has been a cancellation of a payment plan, ATO counts that as a default 
  • Multiple payment plans in the past year and constantly rolling new debt into old debt 
  • Debt over $200k.

Remissions

The ATO has created a remission template and now expect it to be used for GIC (interest charge) remissions. If satisfactory answers cannot be provided, the ATO will deny remission. 

In summary, we are entering a tougher phase in relation to ATO client tax debts and related penalties. The volume of information that the ATO requires is also increasing.  

Please contact your AHBA advisor promptly should you have a tax debt that needs addressing — early action is key.   

CONTACT ALLAN HALL BUSINESS ADVISORS

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national minimum wage review

Workplace Gender Equality Agency Reporting

Posted on | by Allan Hall

WGEA Reporting or Pay Secrecy

Workplace Gender Equality Agency (WGEA) has published the 2022-2023 median gender pay gaps for private sector businesses with 100 or more employees, encompassing both base salary and total remuneration.

Some notable findings include:

  • 30% of employers have a median gender pay gap between the target range of -5% and +5%
  • 62% of median employer gender pay gaps are over 5% and in favour of men
  • The remaining (8%) are less than -5% and in favour of women
  • Across all employers, 50% have a gender pay gap of over 9.1%. 

The above findings suggest that there is still a large gap between gender pay equality with only 30% of businesses within the target range. This is largely demonstrated by the statistic that 62% of employers are currently paying men over 5% more than women across the business. 

Who needs to complete an annual WGEA report?

All private sector businesses with 100 or more employees are required to complete their WGEA report between 1 April and 31 May of each year. The report must provide data from the previous year for the date ranges of 1 April through to 31 March. 

For more information about who needs to report and how to complete the WGEA report, please click:

WGEA EMPLOYER PORTAL

Even if your company has fewer than 100 employees, it is important to be proactive in identifying potential inequalities within the workplace. Conducting a payroll audit and internal salary benchmarking are important steps to take. 

How does pay secrecy impact gender pay inequality? 

Pay secrecy can play a big part when it comes to gender inequality in the workplace. Pay secrecy, where employees are prohibited from discussing their pay, hampers transparency and can conceal gender-based pay disparities. For this reason, changes have been made from 7 December 2022 to remove the permittance of pay secrecy clauses within contractual agreements. This change aims to advocate for transparency in pay practices to ensure that all employees, regardless of gender, are fairly compensated for their work. 

MORE INFORMATION ON PAY SECRECY

Need HR Assistance?

At Allan Hall HR, we have a team of experienced HR consultants. To learn more about our services, please click here. Alternatively, please feel free to call us on 1300 916 764 or contact us to discuss any questions you may have in regard to WGEA Reporting or Pay Secrecy.

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AHBA Xero Platinum Partners against AH office sign

Allan Hall attains Xero Platinum status

Posted on | by Allan Hall

Allan Hall Business Advisors is delighted to be formally recognised as Xero Platinum Partners

What does going Platinum mean for our clients?

Our primary goal is to build a successful accounting and business advisory firm that provides a high-quality, tailored service to business owners and individuals on Sydney’s Northern Beaches.

We didn’t set out with the goal of becoming a Platinum Partner but, looking back, becoming Platinum with Xero is something we’re really proud of. It’s recognition of our hard work and all that our team has done to help our clients and subsequently grow their businesses.

It’s also a great stepping-stone as we continue to work in collaboration with our Alliott Global Alliance colleagues worldwide to extend our capabilities beyond Sydney.

Being a Platinum Partner means a lot to our team.

Going Platinum boosts our capabilities in really unique ways. We’ve worked hard to achieve this goal, and the status shows our efforts have paid off.

As accountants, becoming a Xero Platinum Partner offers several benefits to our clients. Xero is a popular cloud-based accounting software platform, and achieving Platinum Partner status indicates a high level of expertise using the platform as part of our tech stack. Here are some of the benefits:

  • Expertise and Training: Platinum Partners have a deep understanding of Xero’s features and capabilities. We have undergone extensive training and certification, which means we can provide expert guidance and support to our clients.
  • Efficiency Improvements: Accountants who are Xero Platinum Partners are naturally more efficient in using and optimising the platform. This translates into skills we can pass on to our clients.
  • Enhanced Reporting: Platinum Partners can often provide more advanced reporting and analysis capabilities within Xero, helping our business clients gain better insights into their financial data.
  • Customised Solutions: Platinum Partners are better equipped to tailor Xero to the specific needs of our clients. We can create customised solutions and workflows that align with the unique requirements of different businesses.

At Allan Hall, we’re experts in Xero cloud accounting software that’s easy to love. Find out more about using Xero in your business here or drop us a line to get started.

CONTACT ALLAN HALL BUSINESS ADVISORS

calculator on AUD$

Using business money for private purposes

Posted on | by Allan Hall

2 steps to take

If you use money or assets from your company or trust for private purposes and don’t account for the transactions correctly, there can be tax consequences.

That’s why it’s important to get it right.

Business money and assets you take or use for private purposes can include:

  • salary and wages
  • director fees
  • fringe benefits, such as an employee using the company car
  • dividends paid by the company to you as a shareholder (that is, distribution of the company’s profits)
  • trust distributions if your business operates under a trust and pays you as a beneficiary
  • loans from a trust or company
  • ad hoc drawings or takings
  • allowances or reimbursements of expenses you receive from a trust or company.

If you’ve used business money or assets from a company or trust for private purposes, follow these steps to avoid unintended tax consequences:

  1. Keep accurate records of the transactions, and
  2. Account for the transactions in the company or trust tax return and your individual tax return, if applicable.

Remember, there are different reporting and record-keeping requirements for each type of transaction, so make sure you know how to keep accurate records to suit your circumstances.

You can also practise good record-keeping habits by regularly cross-checking your records against the original documents so you can fix mistakes earlier and monitor your business’s cash flow.

Taxpayers are ultimately responsible for keeping business records and what you claim in your tax returns, however Registered Tax or BAS Agents like Allan Hall on the Northern Beaches can help and advise on your tax.

CONTACT ALLAN HALL BUSINESS ADVISORS

team training session

Respect@Work Legislation

Posted on | by Allan Hall

Practical Steps for Small Businesses to comply with the new Respect@Work Legislation

As previously advised to our clients, a significant shift will occur in the Australian employment landscape on 13th December 2023. There are a number of legislative changes which employers are required to comply with under the Respect at Work reforms.

These amendments place a ‘positive duty’ on employers to take reasonable and proportionate measures to eliminate, as far as possible, unlawful sexual discrimination in their workplaces.

How to Comply – To comply with these laws, you need to take proactive steps and implement preventative actions against discrimination based on sex, harassment, hostile work environments and victimisation related to complaints or allegations.

Here are some practical steps for small businesses to prepare and comply with these changes:

1. Educate Your Team: The first step towards compliance is understanding the changes.

Educate and formally train your managers and employees about the updated legislation, emphasising the importance of respect, dignity, and equality in the workplace. This training should focus on ensuring everyone is aware of their rights and responsibilities and understands what is and isn’t appropriate workplace behaviour.

2. Review and Update Policies: Formalise your company expectations.

Review your existing workplace policies, especially those related to discrimination, harassment, or bullying. Ensure they align with the legislative changes. Take this opportunity to check that your Work Health and Safety policies place equal emphasis on psychosocial hazards as well as physical hazards, to ensure you comply with applicable Work Health and Safety legislation. Ensure your Compassionate Leave Policy specifies that employees and their partners can access miscarriage leave.

Once these changes are made, ensure you clearly communicate these changes to your employees. Having clear and legally compliant policies in place not only ensures compliance but also sets the tone for a respectful work environment.

3. Foster a Respectful Culture: Proactively promote a culture of respect, inclusivity and diversity.

Encourage open communication, active listening, and empathy among employees. Lead by example, demonstrating respectful behaviour at all levels. Demonstrate your positive steps to avoiding sexual harassment and sex-based incidents by clearly communicating what is and isn’t appropriate. If you have a client-facing business, ensure that your clients also act respectfully with your team members by communicating your expectations. By fostering a positive workplace culture, you create an environment where everyone feels valued and supported.

4. Seek Feedback: Give your team a chance to share their experiences.

Seek feedback from employees through anonymous surveys or focus groups to gauge their experiences within the work environment. Regularly review your workplace practices and culture to identify areas for improvement. Use this information to make necessary changes, ensuring your workplace remains respectful and inclusive.

5. Establish Reporting Procedures: Create effective reporting channels

Create clear and confidential reporting procedures for incidents of harassment, discrimination, or bullying. Ensure employees know how to report such incidents and that they can do so without fear of retaliation. Having a well-defined reporting process demonstrates your commitment to addressing workplace misconduct promptly and effectively.

6. Provide Ongoing Training and Support: Keep everyone up to date.

Equip your employees with the knowledge and skills to identify and address disrespectful behaviour. Offer regular and ongoing refresher training on topics such as conflict resolution and unconscious bias. Provide support such as confidential access to counselling services for employees who may have experienced harassment or discrimination.

7. Consult Experts: Don’t get caught short.

The legislation applies to every business, regardless of type, size and scope. If you would like assistance in actioning these steps, our HR Team is assisting many of our clients with tailoring the above steps to suit their business. The HR Team can provide guidance, training, advice and essential templates to assist you in meeting the minimum requirements for your business. If you are uncertain about how the new legislation applies to your business and what you need to do to comply, please contact Allan Hall HR at [email protected] or call us on 1300 675 393.

taxation & accounting

Business income: it’s not just cash

Posted on | by Allan Hall

Clothing, jewellery, gaming products, flights and crypto assets are just some of the things you might have to account for in your tax return as part of your business income.

If you received these or any other non-cash benefits instead of money for your goods or services, or as a tip or gift – you must record them as income at their market value.

This means you record the cash price that you would normally have to pay for those goods or services.

You may be able to reduce the assessable amount of a non-cash benefit you’ve received, by the amount you would have been able to claim as a deduction if you had purchased the item to be used in carrying on your business.

It’s important to report your regular forms of income

Such as:

  • cash and digital payments
  • vouchers or coupons
  • business investments
  • online and overseas business activities
  • services you provide using your personal effort and skills (personal services income)
  • the sharing economy, such as ride-sourcing
  • assessable government grants and payments
  • the value of trading stock you take for your own use
  • payments from insurance claims.

There are some payments that aren’t assessable income, so you don’t need to include them on your return, such as:

  • non-assessable non-exempt (NANE) government grants
  • bona fide gifts or inheritance
  • GST you’ve collected
  • money you’ve borrowed or contributed as the business owner.

Always keep accurate and complete records to prove the income you report and the expenses you claim as deductions.

Remember, registered tax professionals like Allan Hall in Brookvale can help and advise on your tax.

CONTACT ALLAN HALL BUSINESS ADVISORS