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Family-owned Businesses are the backbone of the Australian economy playing a vital role by providing 55% of private sector employment thus adding to the enterprise and fabric of our society (source Australian Family Business survey 2021).

Family Businesses come in an assortment of shapes and sizes covering a realm of industries, such as construction, retail, hospitality and tourism! You name it there will be a family-owned Business ready to provide quality goods and services!

Managing relationships is a crucial factor for the success of any business.  This is no exception to family-owned and run Businesses. It is crucial for the success and survival of these enterprises to have an understanding of the dynamics of human behaviours, such as emotions.

The very nature of family Business employing family members and 'outsiders' creates a mix of human dynamics, a mix, that if the unit is to function effectively requires balance, understanding and agreed 'rules' of behaviour.

Crossing boundaries, when we find the kitchen table becomes the boardroom mixing private and business life creates its own challenges. Family emotions and behaviours and the professional Business role if brought together can also cause tensions. Formal guidelines need to be in place to respond to these situations.

Positive emotions like love, affection and trust are the foundation of a strong unit. When negative emotions arise the workplace can quickly turn toxic. Conflicts can arise because of rivalry, resentment and jealousy. Conflicts that are left unresolved will erode and eat away at the health and success of your business. The answer lies in building strong harmonious working relationships, built on trust, respect, and common goals. Strong building blocks include the following.

9 Strategies for building harmonious working relationships

Read more …

Employers be aware!

The ATO is checking to ensure Employers are meeting their Super Guarantee Obligations

 The ATO has implemented measures as follows:

• The ATO may contact an employer if they are not meeting their SG obligations.
• Employers will be advised they need to lodge Superannuation Guarantee Charge (SGC) statements for the relevant periods. Regardless of whether the Employer has since paid the late or unpaid SG contributions to their employee’s fund, they still need to lodge an SGC statement and pay the SGC.
• With Superannuation funds now providing information to the ATO when they receive SG contributions for employees, the ATO is using this information, along with Single Touch Payroll (STP) reporting to identify employers who have paid some or all of their super contributions late or haven’t paid the correct amount by the due dates for their employees.

 Director Penalty Notices for Superannuation

• If a Company fails to pay Superannuation and also fails to lodge Superannuation Guarantee Charge Statements with the ATO within the required period, the Directors of the Company are automatically personally liable for unpaid superannuation.
• The ATO in these circumstances can issue a Director Penalty Notice to recover unpaid superannuation from the Directors and take recovery action to recover the superannuation owed from the Director(s). This type of Director Penalty Notice is commonly referred to as a Lockdown Director Penalty Notice.

Act now, and make sure your payments are in order and up to date.

Contact Blackburn Accounting if you have any questions or concerns, we are accredited accountants.

The ATO website provides full details on working-from-home eligibility. 

ATO has announced that from July 1 the short-cut method introduced during the COVID pandemic will no longer be available. 

The changes will see stricter record keeping requirements and change to the rate per hour. 

 Under the new system taxpayers working from home

• can claim a fixed rate of 67c an hour and includes expenses such as phone and internet, stationery and electricity use and computer consumables 
• those claiming that rate will need to keep records for costs included in the fixed rate
• records should be kept as they occur
• the start date for this more stringent record keeping is 1 March

 There are no changes for taxpayers who were claiming work-from-home deductions using the ‘actual cost’ method. 

 ‘Keeping records is vital the ATO spokesperson said. He also added 'to claim working from home expenses, you must be working from home to fulfil your employment duties and you must incur additional expenses as a result of working from home.’  He reminded taxpayers ‘they can’t claim for things like coffee, tea, milk and other general household items, even if your employer may provide these kinds of things for you at work.’ 

Small Business will need to act now if they are to beat the deadline!    

What does it mean?

From July 1, the current scheme ends and it will be a return to the previous more onerous depreciation rules.

Why the change? 

The Federal Government is not extending the relief measures it introduced during the pandemic. This offered temporary full expensing as part of its support package for all businesses regardless of size. The change means an end to both these popular initiatives, that encouraged owners to invest in their businesses.

What to do? 

Speak with Blackburn Accounting we will provide professional advice. Depreciation is complex with many variables, such as knowing what and when to depreciate, deduct this year to reduce your tax bill can depend on if you are doing it tough or not.  The scheme rules also require if you want to access the instant write-off you must have the asset installed and ready for use by 30th June to be eligible to claim it.