As a contractor, you’ll often find yourself busy with client work as you head towards the end of the financial year. That’s because your clients want to get their projects completed and paid for so that they can maximise their tax deductions on business expenses.
News
Are You Ready For Single Touch Payroll on 1 July?
Important changes that will affect the way you manage your business’ payroll come into effect on 1 July, 2018.
From that date, if you employ 20 or more employees, you will need to report to the Australian Taxation Office (ATO) every time you pay your employees.
How To Build Your Business Finance
There’s been plenty of media attention placed on Australia’s big banks lately, with the spotlight on loose lending practices that have seen some consumers lose big money. As a consequence, there’s talk about access to credit tightening up.
Taking Your Place In The Gig Economy: Where Do You Stand?
Australia’s gig economy is growing, infiltrating the arts and design; media and communications; computer and information technology; construction and extraction; hospitality; and transportation and material moving. This unprecedented growth is being driven by a growing supply of independent contractors and freelancers, alongside businesses that are demanding more flexible access to expertise and resources when and as needed.
How Happy Employees Can Lead to a Happy Company
“Pleasure in the job puts perfection in the work.”
-Aristotle
What do workers want? This is an essential question all employers should ask themselves regularly to ensure that they are fully considering the needs of their employees in how they run their business. What employees crave more than anything in a workplace is to feel valued and appreciated. If they feel happy in what they do, they are much more likely to do it well.
Study after study has revealed the significant impact workplace morale can have on the performance of both the individual and the overall company. Research has proven that if employees feel valued they will be more engaged in their work, leading to improved productivity, higher staff retention and a more positive work environment overall. Goodwill is often reciprocal and if you work to keep your employees happy they will repay you with a greater work ethic which usually means greater profitability. It’s a win-win for all.
In many cases however, employers prioritise succeeding in the company’s mission as their sole target, and staff morale is deemed secondary. Demoralised staff are more inclined to take a disproportionately high number of sick days, dispute with management or flee to another workplace at the first opportunity. As Interactive Home founder Pete Pedone says: “Once you stop showing the love, you lose employees.”
Employees are the lifeblood of any organisation, and it is clear that the impact of employee morale on companies’ performance cannot be underestimated.
Find out how to ensure your worker bees are happy, motivated and productive by checking out our infographic below. Our latest infographic outlines the importance of workplace morale and lists out the indicators of a good and bad workplace environment. It also offers practical tips on how employers or HR managers can ensure a positive, motivated work environment.
Are Your International Workers Legal?
In America, the Trump administration is following through on a promised crackdown on illegal immigration.
It’s happening in Australia too. Last year, over 500 illegal foreign workers were either removed from the country, or detained or stopped at the border following a nationwide crackdown on illegal labour-hire syndicates. Two hundred and twenty nine of them were caught working illegally on holiday visas.
Do You Have Your Finances Under Control?
Keeping a close eye on your finances, being disciplined about the amount of money you draw down and the amount you put aside to cover expenses, superannuation and tax obligations is a challenge. That’s especially true when as a contractor, your income can ebb and flow… and then there’s the challenges of keeping your records in order.
Is Your Payroll Data Secure And Compliant?
Recently, we heard that the Commonwealth Bank ‘lost’ almost 20 million account records from 2000-2016. Last year, the personal financial information of almost 50,000 Australians and 5,000 federal public servants – among them employees of the Department of Finance, the Australian Electoral Commission and the National Disability Insurance Agency – was leaked online by an undisclosed company.
Find the Power in Your Logo
Have you ever considered the power behind your logo and its capacity to build your business…
Your logo is much more than a clever piece of type or an attractive visual. When well thought out and designed, it is the visual representation of your brand. It communicates and reinforces your business’ core values and principles and it provides a vital connection between your business and your customers.
2018 Budget Delivers Good News for Tax and Superannuation
The Federal budget has been announced with positive changes for income tax rates and superannuation that will see low and middle income tax offsets introduced and tax brackets rise.
Income Tax Changes
Income tax changes will be phased in over seven years as follows:
Stage 1: 1 July 2018 to 30 June 2022
- A new non-refundable Low and Middle Income Tax Offset (LMITO) will provide tax relief of up to $530 for taxpayers earning up to $90,000, in addition to the existing Low Income Tax Offset (LITO).
- The upper threshold of the 32.5% tax bracket will increase from $87,000 to $90,000.
Stage 2: 1 July 2022 to 30 June 2024
- The LITO will increase from $445 to $645, raising the upper threshold of the 19% tax bracket from $37,000 to $41,000
- The upper threshold of the 32.5 % tax bracket will increase from $90,000 to $120,000.
Stage 3: From 1 July 2024
- The 32.5% tax bracket will rise to $200,000
- The 37% tax bracket removed completely. Taxpayers on taxable incomes exceeding $200,000 will pay top marginal tax rate of 45% (excluding the 2% Medicare Levy).
Superannuation Changes
Several changes have been made to superannuation legislation. If you have a self managed superannuation fund (SMSF) you may be pleased to know the maximum number of fund members you can have will increase from four to six. This means families can now pool their wealth and invest in opportunities otherwise inaccessible.
Additionally, audits for SMSF’s with a good compliance record, as defined by the ATO, will only be required every three years instead of annually, reducing regulatory requirements and compliance costs.
Other important changes include the ability for individuals who work for multiple employers to exclude earnings from the superannuation guarantee regime once their contributions have exceeded the $25,000 concessional contribution cap; the government will introduce measures aimed at improving the integrity of the personal contribution deduction process; and measures to limit the unnecessary inadvertent erosion of member superannuation balances, including a 3% annual cap on passive fees on low balance accounts; a ban on exit fees; changes to insurance arrangements for low balance accounts and members under 25 as well as accounts that have been inactive for 13 months; and the requirement for low balances of inactive superannuation accounts to be transferred to the ATO.
For more information about how these income tax and superannuation changes will impact your wealth management, contact Ayers.
