With tax time just around the corner, the Australian Taxation Office (ATO) is reminding small businesses about three things to be aware of ahead of the end of financial year:

1. the new small business boost is now available
2. temporary full expensing ends 30 June 2023
3. deduction rate changes: running a business from home and car expense rates have changed.

ATO Assistant Commissioner Emma Tobias said ‘with only a few days left till the end financial year, now is the time to talk to your tax professional if you think these things may be relevant for your business.’

1. Small business boosts now available

The boosts are available for small businesses investing in digital operations, or skills and training – for example, new equipment like technology, cloud-computing, e-invoicing or cyber security.

‘Small businesses will receive a bonus 20% tax deduction for eligible expenses in their tax return, so for every $100 spent, you’ll get a $120 tax deduction – but there are caps on the total amount that can be claimed,’ Ms Tobias said.

‘If you’re a small business who invested in technology or digital operations between 29 March 2022 and 30 June 2023, then this boost is for you.

‘It’s important to remember, any item you purchase must be first used or installed ready for use by 30 June 2023 in order to be eligible,’ Ms Tobias said.

Likewise, the Small business skills and training boost allows businesses to claim an additional 20% tax deduction to train new and existing employees between 29 March 2022 and 30 June 2024.

The training must be through a registered external training provider in Australia.

2. Temporary full expensing (TFE) ending 30 June 2023

TFE ends end of financial year 30 June 2023

Small businesses can still claim an immediate deduction for the cost of eligible assets first used or installed ready for use by 30 June 2023 in this year’s tax returns.

However, the end of TFE on 30 June 2023 means that the cost of assets that are not already being used or installed ready to use by 30 June 2023 are not eligible for an immediate deduction under TFE in small business tax returns this year.

TFE supports small businesses making capital purchases by allowing an immediate deduction for assets, rather than claiming the depreciation over a number of years.

‘Even if you’ve paid a deposit or received an invoice, the asset must be installed ready to use by 30 June 2023. If the asset is not installed ready for use by the deadline, you may still be able to claim deductions under the general or simplified depreciation rules,’ Ms Tobias said

3. Deduction rate changes

Both the running a business from home deductions and car expense deductions have changed for this tax time.

The key change a small business claiming car expenses needs to know is:

• The new cents per kilometer rate is 78 cents for 2022-23, but remember to keep written evidence to show how you worked out the work-related kilometers. This is method is available to sole traders and partnerships.
• The car limit has increased to $64,741 for the 2022-23 income year.

The working from home deduction methods have also changed for this year. Small businesses can choose one of two methods to claim working from home deductions: either the actual cost or fixed rate method. Only the fixed rate method is changing. However, your business structure can affect the method you can use and the expenses you can claim, especially if your business is a company or trust.

Ms Tobias said ‘if you are claiming car or working from home deductions, make sure to keep good records. This will give you more flexibility to choose the approach that gives you the best deduction at tax time.’

The ATO recommends small businesses seek advice from a registered tax professional or read about the changes on the ATO website before making investment decisions.

More information on completing your tax return can be found here.

An online store’s primary purpose is to transact. For it to succeed, the website must provide a simple, easy and safe consumer journey via a payment gateway. Implementing the right payment solutions can ensure the final step, the purchase, is hassle-free, which can avoid last-minute hesitancy and even increase a customer’s basket size, thereby increasing the business’s sales. With digital wallets increasingly overtaking credit cards for online payments (Global Payments Report FIS), it is more important than ever for businesses to adopt an assortment of payment methods for consumers.

While the ability to process payments on a website may seem straightforward, elements like security, compliance, transaction fees and platform regulations can be quite complex. Getting something wrong could result in significant costs due to increased development time, additional processing fees, or even legal penalties. Not only this, but the time spent troubleshooting and fixing technical issues limits business workflow and may cause website downtime, thus impacting the website’s user experience and potentially losing custom.

It is therefore, imperative that organisations invest in reliable payment gateways to bolster security, efficiency and consumer trust.

Retailers can easily utilise innovative and secure payment gateway on their websites by investing in a reliable web-hosting platform. With the website being managed by a hosting platform or partner agency, the time previously spent on monitoring, mitigating and fixing complex tech and security vulnerabilities can be better spent optimising business profits through marketing and further innovating a product or service.

Working with a website management platform like WP Engine can reduce the burden on businesses by offering easy access to best-of-breed eCommerce capabilities, including Stripe Connect, optimised  WooCommerce hosting, and headless blueprints for connecting with Shopify and BigCommerce. By offering the right payment solutions to customers, businesses can ensure seamless online transactions, enabling them to increase basket size, consumer conversions, and, with a better user experience, repeat customers.

Content from Ricky Blacker, Senior Sales Engineer and WordPress Evangelist, WP Engine

The end of the financial year (EOFY) is a crucial time for Australian small businesses. It provides an opportunity to review financial performance, make necessary adjustments, and plan for the future. As this season approaches, small business owners should consider taking advantage of technology tax deductions and optimising their financial processes. To help Australian small businesses make the most of the EOFY season, here are three essential tips.

Embrace Technology and Maximise Tax Deductions

Technology plays a vital role in enhancing business operations and financial management. Embracing technologies like AI may feel intimidating, but with the right technology partner, small businesses can take a considered and tailored approach to technology adoption.

• Upgrade Business Equipment: Take advantage of the instant asset write-off scheme to deduct the cost of eligible assets. Invest in technology such as computers, software, or machinery to streamline operations, enhance productivity, improve customer experience, and reduce costs. For example, a construction company could potentially save up to AUD 34,100 per year if just one of its workers used technology to conduct two site visits virtually per day, instead of travelling one-hour to do it in person, Nearmap estimates.

• Embrace Cloud-Based Accounting: Transition to cloud-based accounting software like QuickBooks. It simplifies record-keeping, streamlines invoicing and expense management, and offers real-time insights into your financial health.

• Automate Processes: Automation not only boosts efficiency but also provides accurate data for financial analysis, resource management and decision-making. Explore options like receipt scanning apps, payroll software, and expense management tools to simplify your financial workflow — or use automated customer, project, and environmental insights to identify cost-saving and business-building opportunities and remove the risk of costly human error.

Review and Reconcile Financial Records

Reviewing and reconciling financial records is essential for accuracy and compliance. Consider the following steps:

1. Conduct a Financial Audit: Review income and expenses, ensuring proper categorisation and recording. Identify any discrepancies or missing information.
2. Reconcile Bank Statements: Compare bank statements with accounting records to ensure accuracy. Identify outstanding payments, uncategorised expenses, or errors.
3. Update Inventory: Conduct a comprehensive stocktake to assess inventory value accurately. Identify slow-moving items, potential write-offs, and ensure accurate financial statements.

Seek Professional Guidance

Navigating the complexities of EOFY can be overwhelming for small business owners. Seeking professional guidance from an accountant, bookkeeper, or technology provider can provide valuable insights and ensure compliance with tax regulations.

1. Engage with an Accountant: Collaborate with a qualified accountant specialising in small business taxation. Maximise deductions, identify cost-saving opportunities and ensure accurate reporting.
2. Schedule a Business Review Meeting: Discuss financial performance, tax planning, and strategies for the coming year. Gain a deeper understanding of your business’s financial health and identify areas for improvement.
3. Stay Informed: Keep up to date with regulatory changes and new initiatives that impact tax regulations and incentives.
4. Find the right technology partner for you: Technology adoption is not just for big corporations. The right provider will offer solutions designed specifically to meet the needs of small businesses — your perfect technology partner is out there!

The end of the financial year is an ideal time for Australian small businesses to optimise their financial processes. By embracing technologies, leveraging government incentives, reviewing financial records, and seeking professional guidance, businesses can maximise their benefits and set themselves up for success in the new financial year.

Please note: the advice provided is general in nature, and it is recommended that small businesses seek professional advice based on their individual circumstances.

Written by Gafar Fadl, General Manager SMB, Nearmap, and Tish Bhagwandeen, Intuit QuickBooks Trainer Writer Network, Chartered Accountant

Customer loyalty can be a brand’s most affordable and effective ambassadors by creating word-of-mouth referrals and purchasing time and again. With retail sales falling – a 0.6 per cent drop in the March quarter after a 0.3 per cent in the December quarter – loyalty is waning, and a top priority for brands next financial year will be finding ways to reclaim and retain customers. A major survey offers the answers: transparency, being community-minded, thanking them, and offering a high-quality at good value are some of the things customers say brands can do to win their loyalty. 

The insights were derived from a survey of an independent panel of 2500 Australians, analysed by Customology, Australia’s leading specialist in customer lifecycle management. Collated in a new report, ‘The Unspoken Customer’, Customology offers insights into the attitudes about brands among consumers who don’t normally review online, provide feedback or participate in brand surveys. Customology’s ‘The Unspoken Customer’ report can be found here.

Customology founder and CEO Mark James says: “Customer loyalty is intrinsically linked to a brand’s success, and loyalty can be scuppered if customers are not rewarded appropriately. Rewards, however, must be genuine and add tangible value. A coffee wholesaler, for instance, will need to offer customers incentivised value to ensure they shop with them for their next order. They key is to recognise and appreciate the customer’s loyalty and reward the behaviour you want to influence.

Conversely, it is extremely difficult to win back once-loyal customers after you have lost them.”

Six things brands can do to win customer loyalty.

1. Don’t rely on marketing emails. Too many brands use the spray-and-pray approach, relying on marketing emails to create loyal customers, rather than creating genuine value. Customology’s study found that 46 per cent of customers hardly read these emails and almost two-thirds (61 per cent) said they rarely influence their purchase decisions. Brands could use a mix of communication channels, such as SMS, direct mail, push notifications, social media and advertising. And while customers provide plenty of information about themselves to help brands create personalised messages, most brands continue to spam their customers with the same messages at the same time. 
2. Thank customers. A simple thank you goes a long way for customers who have chosen to spend their hard-earned cash with you. One in 5 customers (19 per cent) reported not receiving any form of communication after their first visit, despite sharing their contact details. A follow-up email or a push notification with a personalised note on what their purchase means to the business is a good place to start. 

3. Give back to the community. Customer expectations of brands have grown. They want a holistic view of the brands they’re purchasing from, and this knowledge makes a direct impact on where they spend their money. Customology’s data shows 82 per cent of customers think it’s important for brands to give back to the community, and 50 per cent believe it would directly influence their brand loyalty. It’s worthwhile for brands to promote their corporate social responsibility – whether that’s supporting a local community project, reducing their environmental footprint, or donating a portion of profits to charity. 
4. Be honest and transparent. Honesty is the best policy, and brands need to walk the talk to earn their customers’ trust. The reality is, however, that 48 per cent of consumers don’t believe brands are honest in their communications, and 50 per cent don’t believe online reviews are genuine. When what brands say about themselves don’t match what customers hear from elsewhere, the brand is perceived as out of touch or, at worst, deceptive. Brands could focus on developing a more human relationship with their customers: own up when things don’t go right and be clear on how they will fix them. 
5. Loyalty programs must provide strong value. It might come as a surprise that a whopping 68 per cent of customers are loyal to brands that don’t have a loyalty scheme. However, 82 per cent of customers believe they should still be rewarded for their loyalty. Brands could assess whether existing loyalty or reward programs are still relevant and providing value. Customers should be recognised and rewarded based on their unique position in the lifecycle, their specific purchase behaviour and preferences.
6. Quality, value and customer experience are key. There is less reason to provide a loyalty program if you maintain these three values. More than half (55 per cent) of customers would be tempted to go to a competitor if the quality of a brand’s products or services declined, 50 per cent would leave if they found better prices elsewhere, and 42 per cent would leave a brand if they had a poor experience. Ultimately, customers will remain loyal to a brand if they consistently receive quality products and services, at a competitive value rate.

Customology’s ‘The Unspoken Customer’ report can be found here: https://www.customology.com.au/the-unspoken-customer-download/

Local services marketplace Airtasker has seen a 30 percent increase in demand for Accountants in the past month as many finalise late tax returns while others prepare for the end of this financial year. 

“In the current climate people are trying to cut down on costs with some moving away from big accounting firms. They prefer to utilise people with the same skill set, who are sole traders or small businesses, and are able to provide a competitive price because they don’t have the large overheads,” said Tim Fung, Founder and CEO of Airtasker. 

“Accountants and bookkeepers on Airtasker cost anything from $50 to $1,000 to complete a tax return which are competitive rates with both the Tasker and Customer knowing upfront how much money will change hands so there are no surprises,” said Mr Fung. 

“Over the past few years the number of people with a side hustle has increased and it’s important all those working in the flex economy remember to declare all earned income in their tax returns.” 

“The ATO’s data matching analysis and forensic capabilities are very sophisticated so nothing will go unnoticed but also it’s important to deduct any costs associated with being able to provide the service.” 

The average tax refund in financial year 2022 was about $3,100 according to the Australian Taxation Office but is expected to be smaller this year because the low- and middle-income tax offset ended in June last year.

Sydney accountant Paul Gallo who uses Airtasker says deductions everyone working in flex economy should look at claiming include:

• Phone, internet and laptop: If these are used directly to earn an income, for example for responding to posted tasks, you may be eligible to claim a percentage of these items to the extent they are used for business purposes. You can check your screen time as a good indicator of the extent to which you use the technology for business. 
• Tools and equipment: Keep receipts for tools and equipment used in your side hustle. For example if you are a painter then you may be able to deduct the cost of paint brushes, sanding equipment, masking tape  and sheets used to protect areas from paint.
• Receipts: Tax receipts needs to be dated 1/07/2022 to 30 June 2023 for all current year tax lodgements. 
• Work from home expenses: If your work is completed in the home, The ATO allows the at-home office ‘fixed rate method’ of 67 cents per hour.

“One important tip to remember is to set aside money for tax since payments received through Airtasker are to be included in your tax return, consider setting aside a portion of the amounts received to cover your taxes. In regards to how much you should put aside will depend upon your marginal tax rate,” said Ms Ngan. 

Airtasker Tax Accountants price guide 

The building and construction industry has launched a campaign to defend the right of hundreds of thousands of independent contractors and self-employed tradies to be their own boss.

More than half of Australian voters agree the proposed one size fits all ‘employee-like’ industrial relations reforms will increase costs and red tape for small businesses who use independent contractors and harm independent contractors, subbies and freelancers outside of the gig economy.

Research by independent firm Insightfully shows this concern is even higher in the building and construction industry with 72 per cent of the workforce agreeing these reforms will negatively impact small business.

Master Builders Australia CEO Denita Wawn said the proposed ‘employee-like’ policy goes beyond the government’s purported original scope of supporting gig workers and leaves the door open to swallow industries across the economy including independent contractors and self-employed tradies.

“The Government has failed to ease the concerns of the 440,000 businesses in the building and construction industry; 98 per cent of them being a small business.

“The dynamic nature and array of specialist contractors required on a project mean it is simply not feasible for businesses to have to permanently employ independent contractors.

“Independent contractors and subbies have worked hard to establish their businesses, build strong relationships, and enjoy the freedom to choose how they operate.

“The government is threatening to strip contractors of their hard-earned independence, and they deserve better.

“These laws are completely inconsistent with the long-held concepts that underpin the workplace relations system.

“Tradies are taking action to stand up for their rights. These reforms represent one of the most significant and real attacks on the rights of self-employed and independent contractors.

“We all know Aussies including in the building and construction industry are doing it tough and these changes introduce uncertainty, commercial risk, and negative consequences for the community and consumers.

“Why are we proposing even more costs for small business that will ultimately end up hurting workers?

“We don’t use subcontracting because we’re trying to drive down wages or avoid employing people. We use subcontracting because that’s the way that building work is performed.

“We should be addressing the productivity challenges in the sector not bulldozing the industry,” said Ms Wawn.

For more information visit: www.defendyourrights.com.au

With tax time on the horizon, Norton, a leading Cyber Safety brand of Gen, is warning Australians to remain cautious over the coming months as various tax time scams begin to emerge.

Tax time can bring stress and confusion for both individuals and businesses as they prepare to file their returns with the ATO. Unfortunately, this breeds the perfect environment for cybercriminals who seek to prey on these vulnerable emotions and obtain sensitive information and cause both financial and personal harm to unsuspecting victims.

In 2022, Australians lost over $3 billion to scammers according to the ACCC, and the numbers are only expected to continue to increase unless people remain more vigilant and stay one step ahead of savvy fraudsters.

Mark Gorrie, APAC managing director at Norton says, “There are certain times each year that pique cybercriminals’ interest and tax time is one of them. With the amount of personal and financial information that is being stored and shared at this time, coupled with the stress that comes with filing tax returns, it is the perfect storm for scammers to target Australians.”

“Tax time can be difficult to navigate, and it can be easy to fall into the palm of a scammer offering to ease this burden. But it is important to understand that practising online security should never be sacrificed in exchange for convenience.

“In the wake of greater sophistication and a rise in AI that is aiding cybercriminals in evolving and developing their devious tactics, it is more important than ever that Australians are continuing to educate themselves on the warning signs.”

Three examples of prevalent tax time scams to look out for, plus ways to avoid them.

1. Tax-related identity theft. This scam occurs when cybercriminals access a victim’s account, impersonate them, and fraudulently lodge refunds from the ATO using your stolen personal information, including your tax file number (TFN). This can be dangerous, as in this instance, the cybercriminal who filed a return with your information may still have your data – leaving you vulnerable to other identity-related crimes.

How to avoid this scam:

• Keep your tax file number safe. Shred any documents that contain personal information before you throw them away, and ensure that your online accounts containing sensitive information, like myGov, are protected with strong passwords and two factor authentication.
• If you suspect your TFN and identity has been compromised, immediately report the incident to the Australian Taxation Office (ATO).
• Consider using a robust security software, like Norton 360. This will help protect your personal devices and information, and act as a first line of defense against attempts by criminals to steal or compromise your personal information.   

2. Be cautious of Australian Taxation Office (ATO) impersonation scams. Cybercriminals will pose as ATO representatives to convince victims to provide their bank details, Tax File Number, or other personal information via SMS, email, or social media accounts.

Additionally, in January this year, the ATO issued a warning about scammers posing as ATO workers on Twitter, Facebook, TikTok and other popular social media platforms. These phony accounts prey on social media users who have made public comments addressing the ATO with a question or complaint. The scammer sends their victim a direct message, offering to assist in resolving the issue. After gaining trust, the scammer attempts to obtain personal information.

How to avoid this scam:

• Look out for tell-tale signs of a scam. The ATO won’t use urgent threats, such as arrest, payment, or suspension of your TFN. If contacted via social media by a newly created unverified account with a small follower account, delete the message. The ATO only has official accounts on Facebook, Twitter, and LinkedIn – legitimised with verification ticks and over 10 years of activity.
• If you receive a suspected scam email or SMS, do not click on any links, provide any payments, account log in information, or other personal information.
• Occasionally, the ATO will contact you by phone, email, SMS, and post. If you are not sure about the validity of any communication, the best thing to do is to call the ATO directly. You can obtain a phone number from their official website, or a previous letter you have received, and validate the request.

3. Dodgy tax preparers offering to complete your tax refund. Scammers capitalising on the desire for maximum tax refunds will promise substantial returns and a speedier process, which can appear to be an enticing offer in an otherwise confusing and stressful time. The fraudsters will ask for access to the myGov accounts of their victims and lodge tax returns through the ATO’s myTax web portal or take personal details and payment before disappearing.

How to avoid this scam:

• If someone approaches you claiming to be a tax preparer, you can check that they are registered on the Tax Practitioners Board (TPB) by visiting their website to verify the legitimacy of their claims. (https://www.tpb.gov.au/registrations_search)
• Never share your myGov password with anyone. Sharing your information (such as your myGov password) with an unregistered practitioner puts your personal and financial affairs at risk.
• Enable two factor authentication on myGov. You can use either the myGov Code Generator app or receive a code by SMS when logging in. This will further protect you from unauthorised access to your myGov account.

Mark Zuckerberg announced this morning that Instagram is expanding its broadcast channels globally – including to Australia. This will give millions of creators a new way to directly engage with their followers at scale in real-time.

Broadcast channels are a public, one-to-many messaging tool creators can use to help followers stay in-the-know with the latest updates and behind-the-scenes moments using text, photo, video, voice notes and polls. Followers can then react to content in real-time and participate in polls, with more features coming soon.

Everyone from Taylor Swift via Taylor Nation’s broadcast channel to local creators like Adele Maree are creating Instagram Broadcast channels, with unique and behind-the-scenes content which are engaging their followers in personable ways that involve them the most. Other Aussie Creators with Broadcast Channels include:

• Kat Clark – gives her followers a glimpse into her day to day, from finding the perfect birthday outfit, to asking followers for their opinion on daily vlog content.
• Ozzy Man Reviews – shares latest video releases with followers and insights into his fave TV shows (Succession fans unite)

Here’s how to join broadcast channels:

• Access the link to the broadcast channel on a mobile device via a creator’s Story sticker, the link pinned to their profile or, as an existing follower, a one-time notification sent when a creator starts a new channel.
• Tap “Join broadcast channel.” People not yet following the creator will be prompted to do so.
• After joining the channel, it will appear in the Instagram inbox next to other message threads.
• Followers can react to content and vote in polls but cannot send messages. They can also share links to their favourite creators’ broadcast channels so friends can follow and join.
• Anyone can discover the broadcast channel and view the content. All followers will receive the first notification inviting them to join the broadcast channel; however, only followers who have joined will receive subsequent notifications for new updates. Followers can leave or mute broadcast channels at any time, or turn off a creator’s broadcast channel notifications entirely.

As businesses across Australia continue to face fierce competition for talent with unemployment rates hovering at a low 3.6 per cent^[1], a surprising new study has revealed that more than 20 per cent of Australians have experienced a shift in their work attitudes and behaviours. While the pandemic has brought about popular hybrid working arrangements, this study suggests that some workers may be struggling to adapt to the new normal, and simply slacking off at work.

Immigration assistance and information platform Immigration to Australia commissioned a survey of an independent panel of 1002 Australians to assess the post-pandemic productivity of Australian employees. The survey also investigated whether the return of 195,000 immigrants returning to our shores will motivate Australians to work harder as a result of increased job competition.

Almost four in five (77%) of Australians surveyed had no intention of increasing their work ethic in their current role, despite the heightened competition due to increased immigration numbers.

Younger generations are slacking off at work and don’t plan on changing.

Immigration to Australia’s research revealed that 32 per cent of respondents aged 18-30 admitted to developing a more relaxed work attitude during times of low unemployment. While 15 per cent of the same age group is determined to maintain a relaxed work attitude, irrespective of heightened job competition arising from the return of overseas workers to the country.

Older Australians are putting in the hard yards.

By contrast, Australian workers aged over 55 exhibit unwavering dedication to their jobs, with 89 per cent of respondents maintaining their commitment to their roles without succumbing to a more relaxed work attitude.

Of the over 55 respondents 77 per cent strongly believe they have maintained a high work ethic in the past year only 3 per cent admitted to putting less effort into their work and only 2 per cent admitted to taking an hour off here and there when working from home.

Alon Rajic, Founder and Managing Director of Immigration to Australia, says: “It is interesting to see the number of young Australians unconcerned about the job competition, particularly when faced with the challenges of rising living costs. However, to enhance productivity, invigorate Australian businesses, and foster healthy competition, it is essential for everyone to strive towards pre-pandemic production levels. This becomes increasingly important as competition for roles is increasing in line with increased migrant worker numbers.”

West Australians are most prepared to do what it takes to keep their jobs.

Although the survey showed the majority of West Australians are most prepared to work harder (30%) in the face of increased competition for roles returning to Australia, followed by 25 per cent of Victorians and 23 per cent of NSW residents.

While 62 per cent of respondents nationally believe they have maintained a solid work ethic, Queenslanders were most likely to continue with their relaxed attitude to work, no matter the outcome (17%), followed closely by South Australia (16%), NSW (15%), Victoria (14%) and Western Australia (12%).

“The shift in work arrangements could be a catalyst to consider a four-day work week, which could potentially help address the productivity challenges arising from reduced motivation and potentially enhance work-life balance for individuals in Australia,” says Alon.

The full results, with age and State breakdowns, can be found here: https://immigration2australia.com/will-higher-immigration-numbers-increase-competitiveness-in-the-workforce/