If you are a Director of a Company, you now need a Director ID

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Recent legislation requires directors to obtain a personal director identification number (‘Director ID’).  The legislation is designed to : Prevent the appointment of fictitious directors and Better identify directors and Their relationships with companies over time Though existing directors (at 31 Oct 21) have a year to comply, you may as well get your passport and drivers licence out and do the necessary ASAP.  A business opportunity may mean you need your Director ID sooner than you think. And it’s too easy to forget if you put it off.  Failure to comply with these new Director ID requirements may result…

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Are Staff Gifts Tax Deductible?

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Don’t let tax dampen your Christmas spirit!  Find Out What You Need To Know To Claim Staff Gifts And Christmas Celebrations In 2021 After the stresses of COVID and a chain of lockdowns, we are all looking forward to enjoying our staff Christmas party and giving and maybe even receiving thank you gifts. At this time of year, many employers would like to know - are staff gifts tax deductible? Unfortunately, as a party is “entertainment”, there are no tax-exempt parties – some tax must be paid.  But you can minimise tax by avoiding Fringe Benefits Tax (FBT) at 47%…

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Reduce Your Tax by Salary Packaging

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Salary packaging must be put in place in advance so October is a good time to plan to save tax that you can spend over the summer. Our team of in-house financial advisers have curated 4 popular ways of saving tax by salary packaging and conclude with a simple example of how much tax you may be able to save every financial year. Packaging Your Salary “Packaging” as it is commonly called, means sacrificing some of your cash salary to pay specified personal costs. The most common examples are: A car owned by you for personal use. A car owned by…

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Simple Checks for Safeguarding Your Payroll

In recent times, some prominent business owners have paid the penalty for shortcomings in their payroll. As a small business, your business and payroll will be smaller and simpler. We look at 5 ways you can keep ahead of the changes, support your employees and perform a payroll audit on your payrates and payroll processes. 1. The Timing of Paying Your Super Contributions has Changed Your Future, Your Super (YFYS) is a set of reforms designed to improve the superannuation industry.  From 1 November, 2021, super choice will change. Where a new employee does not choose a super fund, you…

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Cloud Accounting – Part 2 – Security of Data – Technical Aspects

This section covers some technical aspects of security related to your email, computers and cloud services such as Dropbox and OneDrive. Today nearly all security threats are driven by the motivation to obtain money by fraud. The threats are constantly evolving as fraudsters evolve their methods as older threats become less effective. Common threats are : Ransomware Phishing Dark Web Ransomware, although on the decline remains a common threat. Ransomware starts with an email that tricks the receiver into clicking a link and then it starts downloading and installing software onto the computer. The ransomware software then proceeds to encrypt files on…

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Cloud Accounting – Part 1 – Security of Data – Access

Most businesses today opt for cloud accounting. The benefit is clear – access by anyone, anywhere, anytime. However, that benefit brings with it, the greatest risk – the security of your data. Normally, access to your data involves one or more of : User name Password Security questions Two factor authentication 2FA – also called One Time Code OTC Invitations The user name is usually your email address. It’s fairly easy to get hold of or guess. You can increase your security by using an alias email – so instead of smithj@abc.com.au use 4ls9&e@abc.com.au or create a new gmail account…

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Business Acquisition

We have helped many clients acquire businesses. Acquiring a business is a process of due diligence. Due diligence is a process of establishing that a fair value is being paid for the business. Some examples of things to consider are : Adjustments needed to the reported results Best structure for the acquired business Contingent consideration and contingent plans There are numerous reasons why “adjustments” need to be made to the reported results of a business to obtain the base upon which the value is calculated eg proprietor and family wages and non operating costs such as interest. Part of the…

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