I read an article from author Andrew Griffiths on the weekend, in discussing the crazy ways that small businesses throw away a fortune each year, he said “I am continually surprised by the number of small businesses that I encounter that have little to no idea about their financial position at any given time.  They don’t know if they are making money or losing money, they don’t know how much they owe or how much they are owed – the absolute basics of any business.  From my experience, ignorance about your financial position almost always works against the business and that is when the money slips through the cracks”

I wanted to raise this quote with you all and ask, if you are one of these businesses that has little to no idea about your financial position – will you please reach out to me?

With the right tools and a bit of training, The Tax Chic can have you set up and operating your own accounting system in no time – yes it will take a commitment on your part, and yes there will be cost to implement…but the benefits into the future will allow you to take greater control over your business – and that is priceless!

Contact me to find out more!

Regards

We always need to be on the lookout for scams…but this time of the year, also known as “tax time”, usually sees an increase in the number of scams around – so it’s extremely important that everyone takes care!

The reputation of the Australian Taxation Office (ATO) is not so great in the eyes of many…but I’ve always found them to be generally reasonable to deal with, and I know there are some things they would never do…such as:

• The ATO will never cold call you about a tax debt. If you have a tax debt you will receive a letter or SMS to remind you that a payment is due, so that if/when they do phone you, you’ll be prepared.
• The ATO will never threaten jail or arrest – they simply can’t!

If you do receive a call from the ATO, and you’re unsure of its legitimacy, you are well within your rights to ask for the caller’s name so you can call them back through the ATO switchboard on 13 28 69.

For more information on scams, please visit Scamwatch.

Regards

Can we take a moment to think back to the 2015 federal budget released in May…do you recall there was a lot of media regarding the “sharing economy”?

The “sharing economy” relates to activities which are quite commonly managed by a website or mobile app and include renting out a room, property or a car park; providing odd jobs, errands, deliveries or more skilled services on an ad hoc basis or using a car to transport passengers for a fare (known as ride-sourcing) – two common providers are Airbnb and Uber.

It is important for you to know that if you engage in these operations, even if you think it’s “on the side”…the Australian Taxation Office (ATO) are catching on!  They warn that “the same tax laws that apply to activities conducted in a conventional manner apply to activities in the sharing economy.”

Essentially this means you need to report any income received (of course you can also claim your relevant deductions)…but there may be other implications such as capital gains tax and reporting requirements.

Each circumstance is different, and may depend on the type of business you are operating – so if you think you might be affected, please get in contact so we can make sure you are meeting your obligations!

Regards

Social media and news bulletins all over the weekend have largely centred on the plight of travellers between Australia and Bali.

On one hand I know I would appreciate an extended stay in a tropical paradise…but on the other I can also appreciate the stress that accompanies delays such as this – particularly the financial stress and the associated worry about business and work.

If you are a business owner stranded in Bali, I hope you have found a way to communicate with your staff, clients and suppliers – apart from normal business operations, there are some statutory requirements (namely issuing PAYG Payment Summaries to staff) that need your attention – if you need an extension on any of your obligations, I suggest you contact the Australian Taxation (ATO) as soon as possible.

If you are an employee stranded in Bali, my recommendations are to contact your employer as soon as possible, and attempt to implement the following:

1. Arrange to extend your leave and utilise any leave you have available (ie: annual leave, personal leave or long service leave)
2. If no leave is available, request to take leave in advance
3. As a last resort, request to take leave without pay

If you are an employer in Australia with employees stranded in Bali, I’m sure you will do everything you can do accommodate your staff – the key is communication and understanding.

To those of you stranded in Australia – I know how frustrated you must be as I imagine you were all looking forward to a much needed holiday – you too should discuss your options with your employer as you may be able to change your holiday dates in line with amended travel plans.

Best of luck to you all, and remember to breathe…

Regards