Blackburn Accounting

Tax
Business

If you are one of the many Taxpayers hoping for a tax refund it is crucial to submit your return ‘right’!

That is, submit it with all the necessary supporting documentation. This step can save you and the ATO time and effort.

And with Tax Time fast approaching,

it is a timely reminder to start now and get your ‘paperwork in order’.
Also, make sure you have all the ‘evidence’, such as receipts, to substantiate your claims for deductions. This applies to all claims.
Be aware, the ATO recently announced it is putting the microscope on tax deductions. Remote workers, landlords and workers taking a liberal approach when claiming travel expenses can expect scrutiny as part of a compliance crackdown.
Have a job second that generates income remember to declare it! Freelancers, Influencers are also on the ATO's radar.
Taxpayers, those ‘work-from-homers' are reminded of the changes to the generous tax concessions offered during the pandemic. Changes, effective from March 1 this year. Anyone making these claims must now prove how much time they spent working from home and what were actual work expenses, not to be confused with household expenses.

To claim or not to claim!

It’s important to know what a legitimate claim is and isn’t and that can be confusing. Avoid mistakes, if you need advice contact Blackburn Accounting, we are experienced and available to help you maximise your return within the ATO guidelines.

With costs of living spiraling what better way to add to your cashflow than with a tax refund cheque!

Although not announced as part of this year’s Federal Budget, it’s important for employers to note that the superannuation guarantee (SG) rate will increase from the current 10.5% to 11% on 1 July 2023.

Employers will need to remember to update your payroll system to comply with this increase. The new SG rate applies to payments made to workers on or after 1 July 2023.

Super guarantee percentage

PERIOD GENERAL SUPER GUARANTEE (%)

1 July 2022 – 30 June 2023	10.5%
1 July 2023 – 30 June 2024	11%
1 July 2024 – 30 June 2025	11.5%
1 July 2025 – 30 June 2026	12%

Details can be found on the Australian Taxation Office website.
Contact Blackburn Accounting if you need help or advice with this or other accounting matters.

Most importantly How is this Relationship affecting you!

Inflation, Wages and Productivity, it’s a push-pull relationship!

Inflation has surged, prices are rising faster than wages and the measures to counter inflation is hurting many, including Morgagees and Small Business owners.

Households sinking under the pressure of inflationary cost of living expenses are looking for answers and solutions. What to do, who to turn to!

Small Businesses too are seeking answers on how to survive and thrive during this period. They are under pressure on many fronts, including;

With increased cost of goods and supplies how to maintain a profit margin
Staffing, Wage-price dynamics - responding to demands

Inflation affects every area of Small Business, your Business, from the rising price of goods and services to how much your overheads cost, such as rent., to how much customers will pay for your products.

But, don’t be disheartened, there are answers, ways to meeting these inflationary challenges. Create your healthier relationship with the following!

4 Ways to Survive and Thrive during inflation:

Get your pricing right: Be fair when setting your prices. Customers don’t want to be ripped off. Pricing should reflect the value and quality of products. Adapt your prices as needed to reflect the changed economic conditions. Avoid over or under-pricing. You need to maintain a reasonable profit margin to survive.

Reward your Employees: Reward your staff with fair wages and incentives. Be creative. Staff will show appreciation with their contribution and extra effort. Encourage upskilling as growth opportunities if ‘monetary’ bonuses aren't an option.

Keep on top of your cashflow: Cashflow is the lifeline of your Business. It’s critical to stay on top of what’s going out and coming in. Adopt processes and systems to issue invoices quickly and offer automated payment options. Closely monitor and manage your debtors ledger to get timely payments.

Rework your Business Strategy: With changed circumstances now is the time to review, rethink and rework your Business Strategy. Be creative, look at what has changed and what opportunities it brings. Be progressive, consider what technological improvements may be possible and rethink, and look at new ways of doing Business. Going forward, adapt your Business model to the current economic environment.

What created this situation!

The high inflation we are experiencing is the fallout of the COVID pandemic and Ukraine conflict. These events interrupted supply in the global economy pushing up prices and costs. Along with this the fiscal and monetary policy responses to the pandemic underpinned a strong recovery in demand that also pushed up prices. In essence the ‘push pull’ of supply and demand!

How do we bring inflation down?