Cashflow Management – Outline and Benefits

Dianne KennedyBlog, Management

“The fact is that one of the earliest lessons I learned in business was that balance sheets and income statements are fiction, cashflow is reality.” Chris Chocola, President of Club for Growth 2009 to 2014. Keeping the cash flowing – five principles Without cash your business will not survive You need to understand your key cashflow drivers Managing cashflow is … Read More

Payroll – What You Wish You’d Known

Dianne KennedyAccounting, Blog

Let’s face it – sometimes you just don’t know what you don’t know. You would think that employing staff would be a simple thing, but often times no. In my work as an accountant who also does bookkeeping and payroll for my full-service clients, I often find that my new clients are not paying their staff correctly. This is generally … Read More

Selling up your business? Don’t forget the “going concern” GST exemption

Dianne KennedyBlog, Tax

The concept of a “going concern” exemption for the purposes of the goods and services tax (GST) can still cause confusion when businesses are sold. The sale of a business may be GST exempt if the enterprise is deemed to be a “going concern” — which refers to an enterprise’s ability to continue trading. The ATO (and the GST legislation … Read More

The CGT implications of subdividing and building on the family property

Dianne KennedyAccounting and Tax, Asset Protection, Blog, Tax

Given the state of the property market in Australia these days, a not-uncommon situation can arise where a residential property owner seeks to demolish and subdivide the block containing the family home and build residential units. If you have the available land of course, the above is a solid strategy. However it can cause headaches from a tax perspective — … Read More

What is your “total superannuation balance” and why does it matter?

Dianne KennedyBlog, Strategic Planning, Tax

Superannuation

Recent superannuation reforms introduced a concept of “total superannuation balance”, which on the surface may give the simple impression that it is the sum of the balances of a person’s superannuation interests. However, this is not the case. What is the total balance relevant for? The total superannuation balance is relevant in determining a super fund member’s eligibility for: making … Read More

Simplified depreciation and the small business pool

Dianne KennedyAccounting, Accounting and Tax, Blog, Expenses and Claims, Tax

The simplified depreciation rules are attractive for small businesses as they allow an immediate write-off for assets costing less than $20,000. In contrast, tax paying entities that do not qualify as a small business must use the general depreciation rules (also known as the uniform capital allowance rules), where assets costing more than $100 need to be depreciated over their … Read More

Getting deductions for clothing and laundry expenses right

Dianne KennedyAccounting and Tax, Blog, Expenses and Claims

The ATO allows certain taxpayers to claim a deduction for the cost of buying and cleaning occupation-specific clothing, items of protective wear and for certain unique, and usually distinctive, uniforms. To claim a deduction it is generally expected that you will be able to provide evidence that you purchased the clothing concerned, and will have diary records or other evidence … Read More

Gumtree or Facebook group sourced assets, and the realities of making a claim

Dianne KennedyAccounting and Tax, Blog, Expenses and Claims, Tax

A recent case before the Administrative Appeals Tribunal (AAT) brought into focus a growing phenomenon that you should keep in mind for work-related or business expense deduction claims, especially where the acquisition of claimable assets is made in a certain way. The engineer and his “invoice” The case involved a taxpayer’s attempt to make a claim for the cost of … Read More

Tax and the sharing economy

Dianne KennedyAccounting and Tax, Blog, Tax

The concept of a “sharing economy” has been around for long enough now to have had a very real impact on how we transact.  Think Uber, think Airbnb. By now, most people will have realised that the “sharing” part of the concept does not refer to an absence of any monetary exchange, but rather to the use and access of … Read More

PAYG Instalments: A beginner’s guide

Dianne KennedyBlog, Tax

Pay as you go (PAYG) instalments is a system for making regular payments towards your expected annual income tax liability. It only applies to you if you earn business and/or investment income over a certain amount. The Tax Office will notify you, or us on your behalf, if you need to start paying by instalments under the PAYG instalment system. … Read More