News & Information

Federal Budget Update

2021-22 Federal Budget Update

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The Government has decided not to go down the austerity path, which will be a relief for many taxpayers and businesses.

Click here to download the Federal Budget update

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

May 2021 Newsletter

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  • It’s getting very close to the business end of the financial year, so we have gathered some tax planning tips that could set you up for a better tax outcome. And as that outcome can be ruined by having to deal with an excess super contribution charge, we look at how best to avoid it.
  • The ATO has tightened the evidence requirements for real property valuations for SMSFs, so we look at how to keep your fund compliant, and also bring some good news with the recently launched SME Recovery Loan Scheme, plus an expansion of the ATO’s independent review service.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

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What Does The End Of Job Keeper Mean For Small Business?

What Does The End Of Job Keeper Mean For Small Business? Lanteri Partners

written by Michael Lanteri .

As much of the world continues to struggle with the impact of lingering second waves and third waves of the COVID-19 pandemic, there’s a few things we can be thankful for here in Australia. 

  1. Being an island has allowed us to remain largely isolated from the rest of the population, and aside from a few quarantine missteps, this has worked well. 
  2. Our government stepped in with various stimulus schemes designed to minimise the impact the pandemic would have on the large-scale economy. 
  3. These first two points has allowed consumer confidence to remain, and people have continued to spend money, thus keeping the liquidity essential for a functional economy to remain intact. 

The initial uncertainty that rolled through in March and April of 2020 as lockdowns came into force and revenue plummeted, stabilised somewhat, for the most part, under the support of the Job Keeper scheme. 

It is a fact that many companies did not qualify for the benefits post September, and some even prospered, opting to give the money back such was their revenue increase. 

Unfortunately, if you were in the retail, hospitality or travel industries, Job Keeper was most likely the respirator that did all the breathing for you. So, now that it’s gone what does this mean for business and the Australian economy? 

  1. 1Unfortunately, there will be casualties by way of insolvencies – estimated to be into the thousands – as companies cannot pay off their debts, or their staff or make any revenue because their industry has been decimated. 
  2. It is likely these insolvencies will become more and more evident in the next 3 months and beyond as the cash dries up. 
  3. The actual “insolvency” rate fell, as in decreased, by 37% in 2020 because of the government benefits. With these benefits gone, it is anticipated that the 2021 figures will be far higher. 
  4. Ultimately, it was predicted a year ago that up to 200,000 business’ could go under as a result of the COVID pandemic – those figures are now estimated to be between the 5,000-10,000 mark – not great, but a far cry from the worst-case scenario. 
  5. There’s no hiding from the knock-on effect of such an outcome. Unemployment. Estimates vary, but it has been cited that up to 150,000 people could find themselves out of work in the coming months as these floundering businesses topple over. 

The unpredictability of spontaneous lockdowns, such as Melbourne’s five day valentines-day hibernation and the most recent events in Queensland are bound to occur, and we can do nothing but weather those storms as they roll in, but in terms of “coming” out of COVID, there’s a few things businesses can do to stay afloat. 

1. Get the correct financial advice! 

You might find that restructuring certain parts of the business is not only necessary to keep things running, but actually makes good business sense moving forward. 

2. Avoid Making Decisions Based on ‘Here Say’ 

Avoid making big decisions based on news articles, or from someone else’s “personal experience”. Even if they are in your industry, the circumstances are not the same and should not be treated as such. Make an informed decision based on your own circumstances and with trusted advisors that understand your situation. 

3. Build a War Chest 

Where you can, save. Save. And then save some more. It is easy to say, but hard to do, but ultimately, it is cash flow that is the life blood of any business. 

4. Know Your Numbers 

Again, a conversation to have with an accountant or financial planner that knows what they’re talking about. Numbers don’t lie. So, use them to navigate the choppy waters that may linger around for a while yet. 

5. Consider Acquisition(s) or Consolidating 

Again, talk to a trusted and experienced financial advisor, – about acquiring a business or selling / consolidating a business can be a sound strategy to ensure things remain on target. Provided the numbers stack-up. 

To state the obvious, no-one knows what’s coming up over the hill, whatever it is, some business’ will not survive, others will thrive, but whatever the case, which such levels of uncertainty, seeking out the correct financial guidance will put you in the best possible position to make the best decision for your situation. 

April Newsletter 2021

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  • It is possible to receive amounts that are not expected by the ATO to be included as income in your tax return. However some of these amounts may be used in other calculations, and may therefore need to be included elsewhere in your tax return.
  • The Australian Government has made changes to the ATO’s insolvency framework to help more small businesses restructure and survive the economic impact of COVID-19.
  • Most people think of retirement as a time to put your feet up and relax, but it can also be a time when pre-retirees and retirees alike actually need to flex the grey matter.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

Click here to download the latest newsletter

March Newsletter 2021

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Government agencies sometimes use ABN registration to contact businesses for emergency help or even grants of support, so it’s important to keep your business’s ABN details current. And the perennial problem of dealing with cash flow gets some advisory help from the ATO.

A new Director Identification Number regime is something companies may need to get familiar with very soon, and we re-visit the changes that COVID-19 has made to FBT. There’s also details about the unstoppable SMSF sector, and the tax treatment of unexpected lump sums.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

Click here to download the latest newsletter

February Newsletter 2021

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The JobMaker Hiring Credit scheme was passed into law in mid-November 2020. JobMaker was part of the 2020-21 Federal Budget, and will operate until 6 October 2021. It is designed to improve the prospects of young individuals getting employment, by incentivising employers to hire them, following the devastating impact of COVID-19 on the labour market.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

Click here to download the latest newsletter

December Newsletter 2020

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The loss carry back measure introduced in the 2020 Federal Budget can be a very helpful COVID-recovery option. We run over the details. But if the COVID wash-up means you need to call time-out on your business, there are some important facts to know here as well.

We also look at interest deductions available for rental properties, a development in the CGT rules around active assets and vacant land, and a tightening of compliance in regard to SMSF audits.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

Click here to download the latest newsletter

November Newsletter 2020

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Introduced with the Federal Budget, the “full expensing” 100% write-off of eligible business assets is a welcome measure that many business owners may want to take advantage of. Also, with the extension to the JobKeeper scheme, a set of alternative decline in turnover tests are now available, should a business not fit the general patterns of business activity.

We also look at property transactions and the payment of GST on settlement and remind taxpayers that although the ATO’s auditing activity had taken a back seat during the worst of the COVID-19 crisis, there is reason to expect that this will be taken up again very soon.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

Click here to download the latest newsletter

2020 Federal Budget

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We all understand that budgets are an exercise in predicting the future. Given what has happened in 2020, gazing into the crystal ball and extracting something reliable is fraught with difficulty.

Extensions to the tax rate thresholds will give millions of taxpayers on lower incomes a much-needed boost after a very challenging year. The temporary full expensing of capital assets sets a new mark. Yet this benefit will be limited to those businesses that are back operating at a good capacity and do have enough capital to buy these assets. The willingness of banks to lend for this purpose will be critical.

Many businesses will seek to use the temporary loss carry-back measures that allow companies with turnover of up to $5 billion to offset losses against previous profits on which tax has been paid. Meanwhile, increasing the small business entity threshold from $10 million to $50 million is a significant and unexpected measure that will be beneficial to about 20,000 businesses.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

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October Newsletter 2020

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The JobKeeper scheme has been extended, and there are some important changes that participants will need to know. In good news, the treatment of JobKeeper income has been clarified.

We also look at two further data matching programs that have been launched, smooth concerns some may have had over the easing of loan repayment demands due to COVID-19, and check on the state-by-state treatment of the electronic signing of official documents.

Please contact us for clarification, or further advice, regarding any of the topics covered in this newsletter.

Click here to download the latest newsletter

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