Newsletter - September Edition
Cents & Sensibility | Tax News | Views | Clues
Assessing Software for Your Business
By Sean Myles
The explosion of cloud software in recent years can make it daunting to choose the best new software for your business. So how can you cut through to make the most appropriate choice of program?
Some areas to consider:
Clarify your needs
Invest the necessary time to clearly identify what you want to achieve. A helpful question might be: “What problems are you trying to solve?”
Software vendors only have a limited amount of time to demonstrate their product. With so much ground to cover, try to identify how specific features can work in your business. Think carefully about whether all the features being presented are relevant or useful to you. Don’t be afraid to ask questions of the company trying to pitch its software to you.
Involve the team
Get a wider perspective by involving the team that will regularly use the software program. They are the people who know and experience the current problems. Their involvement will also create “buy in” and ownership of the project, helping with the successful implementation of the new software. Additionally, think about who in the business can help you to succeed. You may want to nominate them as champions to implement and drive this change.
Inviting the team to imagine future use in the business can help to address any potential problems with the vendor - prior to signing any binding contracts.
After the decision on which software program to buy is made, the smooth implementation is so important. Try to find a time of year when introducing a new software program will be least disruptive whilst still having adequate resources available to help with implementation.
Finally, be prepared to invest enough time to thoroughly examine all aspects of this important change to your organisation. Good technology is hard to live without, whilst poor technology is hard to live with.
Digital Adaptation Program
If you are thinking of investing in new digital management tools the Victorian government are providing a $1,200 rebate under their small business digital adaptation program for a range of digital business tools. They have partnered with 14 suppliers to help you improve your business.
For more information on the eligibility of the program refer to the following link:
The Significance of Estate Planning
By Ali Roshan
Having an updated estate plan will ensure your loved ones are in the best position to deal with your incapacity or death. Additionally, it will reduce the risk of family disputes or potential, expensive legal actions.
Current restrictions can make the process of updating your estate planning seem confusing and time consuming. However, with the help of experts in the legal and accounting industry, this process can run smoothly and allow you to have your estate preferences efficiently updated. Some legal practitioners have amended the way they provide services traditionally, using online platforms to allow for meetings and certain documents to be witnessed. Regardless of your age or financial situation, at a minimum you should have:
- An Up to Date Will that reflects your wishes and any limitations you would like to impose on your estate. It is important to remember that your Will only comes into effect when you pass away.
- An Enduring Power of Attorney. This is in effect during your lifetime and relates to your financial and legal affairs. It allows you to appoint a person/s to assist with financial affairs if you were to be incapable of managing those affairs.
- An Advance Health Directive. This is also in effect during your lifetime and relates to your medical needs. It allows you to appoint a person/s to decide matters, including what medical services you should, or refuse to receive.
- A Valid Death Benefit Nomination in Super. First, you should contact your financial adviser or superannuation provider to check your nomination, ensuring it reflects your wishes. This is important because super does not automatically form part of the Estate unless you made a nomination to your legal personal representative. Without a valid nomination in super, your Will (even if up to date) may not be able to deal with superannuation assets. This is a big issue as superannuation is often a large portion of your financial wealth, particularly if you have life insurance held in super.
Ali Roshan is an Authorised Representative (ASIC No. 000378611) of Lifespan Financial Planning
ABN 23 005 921 735 AFSL Number 229892
No Advice Warning / General Advice
The purpose of this article is to provide general information only and the contents of this website do not purport to provide personal financial advice. knp Solutions strongly recommends that investors consult a financial adviser prior to making any investment decision.
The contents of this knp Solutions article does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making any financial or other decisions.
The information is selective and may not be complete or accurate for your purposes and should not be construed as a recommendation to invest in any particular product, investment or security. The information provided on this website is given in good faith and is believed to be accurate at the time of compilation.
The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional.
We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.
Extending administrative relief for companies to use technology
The Government has passed legislation renewing the temporary relief that allows companies to use technology to meet regulatory requirements under the Corporations Act 2001.
These temporary relief measures will allow companies to hold virtual meetings and use electronic communications to send meeting-materials and execute documents until 31 March 2022. This should ensure that companies can meet their obligations as they continue to deal with the uncertainty of the COVID-19 pandemic.
With the extension of this temporary relief, the Government will now seek to introduce permanent reforms later this year to give companies the flexibility to use technology to hold meetings, such as hybrid meetings, and sign and send documents.
Expansion of support for SMEs to access funding
The Government is providing additional support to small and medium sized businesses ('SMEs') by expanding eligibility for the SME Recovery Loan Scheme.
Specifically, in recognition of the continued economic impacts of COVID‑19, the Government will remove requirements for SMEs to have received JobKeeper during the March quarter of 2021, or to have been a flood affected business, in order to be eligible under the SME Recovery Loan Scheme.
As with the existing scheme, SMEs who are dealing with the economic impacts of the coronavirus with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years.
Other key features include:
- The Government guarantee will be 80% of the loan amount.
- Lenders are allowed to offer borrowers a repayment holiday of up to 24 months.
- Loans can be used for a broad range of business purposes, including to support investment, as well as to refinance any pre-existing debt of an eligible borrower.
- Loans can be either unsecured or secured (excluding residential property).
- The loans will be available through participating lenders until 31 December 2021.
ATO warns property investors about common tax traps
In 2019/20, over 1.8 million Australians owned rental properties and claimed $38 billion in deductions, so the ATO is reminding property investors to beware of common tax traps that can delay refunds or lead to an audit costing taxpayers time and money.
The most common mistake rental property and holiday homeowners make is neglecting to declare all their income, including failing to declare any capital gains from selling an investment property.
Assistant Commissioner Tim Loh said: “To put it simply, you should expect tax consequences for any property that you earn income from that isn’t your main residence.”
“We are expanding the rental income data we receive directly from third-party sources such as sharing economy platforms, rental bond authorities, and property managers. We will contact taxpayers about income they’ve received but haven’t included in their tax return. This will mean they need to repay some of their refund,” Mr Loh said.
So far, the ATO has adjusted more than 70% of the 2019/20 returns selected for a review of rental information.
“Most people we contact about their rental deductions are able to justify their claims. However, there are instances where we have to knock back claims where taxpayers didn’t keep receipts, claimed for personal use, or claimed for ineligible deductions,” Mr Loh said.
Editor: We can help make sure you get your rental income and deductions right, including where rental income has been affected by COVID-19.
Within the last month, Norman, Mei, Andrew and Snehal rewarded the staff for their hard work during these difficult times with some delicious meals from celebrity chef, Tobie Puttock.
The meals were enjoyed so much that Tobie received positive reviews and feedback immediately. Tobie ran a knp exclusive master cooking class over Zoom last week, giving us all the opportunity to follow his steps and prepare these amazing meals ourselves! Have a look at what we prepared below.