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When do you have to pay tax on shares?

Posted on February 21, 2020 by admin

Investing in shares is a popular method of growing your wealth, however, there are tax obligations you need to be aware of to get an accurate sense of how much you’ll need to put aside for your investments. When you own shares, you need to declare all your dividend income on your tax return. It is possible to claim tax deductions for certain expenses you pay to receive income from your shares. The deductions you are eligible for will depend on if you are carrying on a business of share trading or if you are an individual share investor, but they can include: Management fees: the payment of ongoing fees or retainers to investment advisers are tax-deductible. Borrowing expenses: the expenses of borrowing money for shares may be tax-deductible. This can include establishment fees, legal expenses and stamp duty on the loan. Interest: if you received a loan to buy shares, you can claim a deduction for the interest incurred on the loan if it is expected that assessable dividends will be derived from your shares. Travel expenses: if you need to travel for the sole purpose of working on your share investment, such as travelling to consult with a […]

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Improving your social media content

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Social media marketing is a powerful way to promote your business and establish a connection with your target market. Your content should closely relate to what you’re trying to sell or provide. A key to great content is that it must be consistent and regularly updated. This is important because it will keep the business relevant in people’s news feeds. Content does not have to be completely original work. It can be a combination of new content developed by the business, and content sourced from other platforms. Sharing other relevant social media posts through Retweeting or Reposting content can also be a great way to demonstrate your engagement with the community. However, do not forget to link back to the source that the content was taken from. Another good idea is to ask questions or share a quote or tip. This will entice the audience to respond, share and join in the conversation. Good content should be interesting, informative and engaging. It is a good idea to steer clear of technical jargon as the majority of people may not be able to understand. Remember who the target audience is and use language that will appeal to them. While short text […]

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Are you responsible for unfair dismissal of employees?

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If you are a small business employer wishing to dismiss employees, you must do so according to the Small Businesses Fair Dismissal Code, as a breach of the code could result in legal action taken against you. If your business has less than 15 employees, it counts as a small business. Employees can apply for unfair dismissal if they believe they have been unreasonably dismissed from their job. These cases could include when: The dismissal was harsh, unjust or unreasonable The dismissal was not a case of genuine redundancy The dismissal was not consistent with the Small Business Fair Trading Code. Employees working for small businesses can only apply for unfair dismissal when they have been employed for at least 12 months. If the business had a change of ownership during their employment, then their time with the first employer may still count as service with the second employer when calculating the minimum employment period. When dismissing an employee, there are three main valid dismissal reasons: Capacity (poor performance) Conduct Genuine redundancy. Employers must also adhere to employee entitlements upon dismissal, meaning they must pay: Accrued leave and annual leave loading Accrued or pro-rata long service leave Redundancy pay if […]

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You can now opt-out of super guarantee as a high income earner

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If you’ve unintentionally been going over your superannuation concessional contributions cap in past years, you may not have to worry about it from now on. As of 1 January 2020, eligible individuals with multiple jobs can apply to opt-out of receiving super guarantee (SG) from some of their employers. You may be eligible to apply if you: Have more than one employer. Expect that your employers’ mandatory concessional super contributions will exceed your concessional contributions cap for a financial year. Employees who are eligible can apply for the super guarantee shortfall exemption certificate when they complete the Super guarantee opt-out for high income earners with multiple employers form (NAT 75067). When you opt-out of SG contributions, you must still receive SGC from at least one employer. If other employers agree to use the SG exemption, then they may provide an alternative remuneration package instead, as to not be disadvantaged. However, the exemption certificate: Does not restrict the employer from making super contributions on behalf of the employee. Does not change the employer’s obligations or an employer’s agreement with their super fund. Cannot be varied or revoked once issued.

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Training a new employee

Posted on February 13, 2020 by admin

Hiring a new employee can interrupt the daily workplace routine while they need a little extra attention and help and learn how things work. Here are some ways you can make the training period more successful… Onboard before the start dateIt is likely that new employees will feel more comfortable and perform better if they are prepared for their first day on the job. New employees often worry about things like what they should wear or where they should go and are reluctant to already be asking trivial questions. To ease them into the workplace, you can send an email prior to their start date that outlines: The start time. Locations. Parking details. Dress code. A brief overview of what will be covered on the first day. Anything they need to bring and what will be provided. Offer mentorsEnlisting the help of senior employees to help train and mentor new employees can be a great way to efficiently train them. This can also help senior members of the team continue to feel valued and can promote friendly relations and coworker connections. Provide regular feedbackConstructive feedback can go a long way for new employees as you can correct any mistakes before […]

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Things to consider before rebranding your business

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Rebranding your business can seem like a daunting task, as it can involve a range of arduous tasks such as changing designs, updating clients, retraining staff and changing your marketing strategies. However, rebranding can be an option for many businesses if: Your business is too similar to competitors. Your designs and values are updated. You want to outgrow a poor reputation. Your business is growing and changing. You want to tap into a new demographic. The market is changing. To make the task of rebranding seem less daunting, consider these tips before starting to help you in your process. Evaluate your need for rebrandingMake sure that the reason for your rebranding is valid and don’t act on impulse decisions. Rebranding can take a lot of time and resources and can often decrease your business if not done successfully, so it is important that you evaluate if rebranding is right for your business and outline the reasons why. It can be helpful to talk to staff about it to get ideas from people who are also invested in the success of your business. Plan a budgetBefore you rush into rebranding your business, make sure you have the funds to do so. […]

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Taking a super pension

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Once you have met your preservation age (between 55 and 60 depending on when you were born), you can choose to take a super pension. There are six main types of super pension: Account-based pension: this is the most common type of pension. It is a regular income stream bought with money from your super when you retire. Transition to retirement pension (TTR): you can use this pension if you have reached your preservation age but are below 65 years old and still working, Defined benefit fund: with this pension, you are paid a guaranteed income stream for life, however, it is not commonly used. Annuities: this is a series of payments you receive at fixed intervals for a defined period or the remainder of your life. Annuity payments are purchased with a lump sum. Reversionary pension: this is an income stream you set up with your superannuation that automatically reverts to someone else (generally your partner) when you die. Death benefit pension: this is where your dependents receive your death benefits as a pension when you die. This is only available from some super funds. The standard conditions of release for super pension withdrawals are: Retirement. Turning 65 years […]

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Do you have to pay tax on super death benefits?

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When someone dies, their superannuation usually gets transferred to their beneficiary as superannuation death benefits. Depending on who the beneficiary is, the benefits may be taxed in some circumstances. If you are a beneficiary, the amount of tax you pay depends on factors such as: If the benefit is paid as a lump sum or pension. Your age and the age of the deceased at the time of their death (for income streams). Whether the benefit is paid from an untaxed superannuation scheme or a taxed scheme. Whether you’re a dependent for tax purposes. Someone who is tax-dependant will: A spouse of the deceased. An underage child of the deceased. Someone who was financially dependent on the deceased at the time of their death. Someone who was in an interdependency relationship of the deceased at the time of their death. Lump sum payments Lump sum super benefits paid to tax-dependant beneficiaries are not taxed, whereas those who are not tax-dependent will need to pay more tax and will only be able to receive the benefit as a lump sum. Not all super death benefits paid to a non-tax dependant are subject to tax. There are tax-free components that are made […]

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What to know about reverse mortgages

Posted on February 6, 2020 by admin

A financial dilemma that is becoming increasingly common is finding a way to fund a comfortable retirement lifestyle without having to sell the family home. One solution to this is a reverse mortgage; a loan that allows homeowners to convert part of the equity in their home into cash. Money from a reverse mortgage can then be received as a regular income stream, line of credit, lump sum, or a combination of these options. No income is required to qualify for a reverse mortgage, which makes them ideal for those who have retired from the workforce. Given the nature of this type of loan, it is important that homeowners understand the risks involved and consider how they can protect themselves as much as possible. Risks associated with reverse mortgages include: The interest rates are usually higher than average home loans. Variable interest rates mean that there will be changes to what you are charged over time. Debt can rise quickly since the interest compounds over the loan term. The loan can affect your pension eligibility. Drawing funds from your property can reduce what you could potentially access later on, leaving little left for aged care or other future needs. For […]

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Protecting your digital assets

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Cyber risk is one of the leading threats for small businesses in Australia, with the cost of a cyber incident averaging $276,000 for businesses. Whether it’s marketing material, legal documents or customer details, businesses nowadays depend on the digital for operation. This is why it’s so important to make sure your digital assets are protected and safe from hackers, viruses and malware. Keep track of all your digital assetsListing all of your digital assets will make it easier to ensure that you’ve got everything covered, as we often don’t realise how many digital assets we have. These could include your social media accounts, trademarks, customer information, contracts and websites. You can prioritise these assets by which ones you want to protect the most to ones that wouldn’t affect your business if they were stolen. Secure your servers You can physically protect your servers by keeping server rooms cool, monitoring and limiting access to server rooms and keeping servers, switches and hubs locked. Securing your servers digital can be done by restricting the number of administrator passwords, using updates anti-virus software, regularly backing up data, setting up a firewall and keeping track of server reports to monitor changes and irregularities. You […]

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