Tag: reporting

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

cyber security

ATO deadline reminder for contractor reporting

Posted on | by Allan Hall

Taxable payments annual report (TPAR) lodgements due 28 August 2023

The ATO is reminding businesses required to lodge a Taxable payments annual report (TPAR) to do so by 28 August 2023.

This deadline is crucial for businesses falling under the TPRS regime to fulfil their reporting obligations.

Entities operating within the construction, cleaning, courier, road freight, information technology, security, as well as investigation or surveillance sectors, and that have engaged contractors in these domains, are mandated to comply with TPAR requirements.

Tony Goding, ATO Assistant Commissioner, stresses the TPRS’s pivotal role in levelling the playing field by ensuring all enterprises contribute their fair share of taxes. Not reporting payments to contractors and deliberately under-reporting income raises red flags, potentially triggering closer inspections by the ATO.

The TPRS serves as an instrument in the ATO’s arsenal, helping in the discovery of unreported income. The TPAR equips the ATO with an array of data points to uncover discrepancies, such as unreported earnings, non-submission of tax returns or activity statements, unjustified GST claims or misuse of Australian Business Numbers.

Recent ATO actions serve as a reminder of compliance expectations. Over 16,000 penalties were issued to businesses failing to lodge TPARs for prior years. With an average fine of around $1,110, these underscore the growing difficulty of evading ATO scrutiny, especially when utilising cash transactions to evade tax.

A recent example exemplifies the efficacy of the TPAR data. An investigation into a cleaning company unveiled a mismatch between declared income and actual earnings. Despite reporting $6,892 in income, the cleaning service provider was found to have received over $80,000 from multiple companies. An audit confirmed the non-submission of activity statements and concealed payments. This resulted in adjustments to the tax return and the imposition of penalties.

CONTACT ALLAN HALL BUSINESS ADVISORS

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Moving to new Xero Reports

Moving to new Xero Reports

Posted on | by Allan Hall

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.

CONTACT ALLAN HALL BOOKKEEPING