December 2024 E News
As we approach the end of the year, this edition of our newsletter provides a timely overview of critical tax considerations and valuable resources for your business. We begin with a recap of 2024's economic shifts, including the Federal Reserve's latest move and Australia's economic performance. We address a recent tax avoidance scheme identified by the ATO, followed by a reminder regarding the claiming of GST and fuel tax credits. Furthermore, you can register for a complimentary webinar focused on enhancing small business sustainability through break-even analysis. Finally, we provide a summary of upcoming community events in the Northern Rivers region. We encourage you to read on to stay informed and optimise your business strategies for the year ahead. We wish you and your loved ones a very safe, peaceful and happy Christmas and New Year.
As 2024 draws to a close, we find ourselves reflecting on a year of dynamic shifts in the global economic landscape. From fluctuating interest rates in the US to a softening private sector in Australia, this final month has brought further developments that warrant our attention. In this newsletter, we'll delve into the Federal Reserve's latest interest rate decision and its potential implications, examine Australia's economic performance, and touch on the recent weakening of the Australian dollar.
The ATO has issued a warning about a new tax avoidance scheme involving the early stage investor tax offset. This scheme targets individuals interested in investing in start-up companies, falsely claiming they qualify for the offset. Promoters lend money to individuals for shares, then manipulate funds between the investor, start-up, and themselves to exploit the tax offset. The ATO is actively investigating these arrangements, as the start-ups often don't meet the criteria for ESICs. Participating in such schemes, even unknowingly, can lead to severe penalties.
As the holidays approach, it's the perfect time to express gratitude to your dedicated team with a thoughtful gift. However, before you dive into a sea of festive hampers and gift cards, it's essential to be aware of the tax implications associated with staff gifts. The Australian Taxation Office (ATO) provides clear guidelines on this matter, and understanding them can help you maximise tax benefits while staying compliant.
Did you know you could be missing out on valuable GST and fuel tax credits? As a GST-registered business, you can claim credits for the tax included in your business purchases, potentially reducing your BAS payments or even leading to a refund. However, there's a catch - you only have 4 years from the due date of the relevant BAS to claim these credits! Don't let these valuable entitlements slip away. This newsletter will guide you through the claiming process, highlight recent fuel tax credit rate changes, and provide essential tips to ensure you receive every dollar you're owed.
Ready to unlock the secrets to small business sustainability? Join a FREE webinar on Tuesday 14 January 2025, from 1:00 pm to 3:00 pm AEDT with experienced financial counsellor, Court Sayer-Roberts. This session will demystify the break-even point, a critical metric for understanding your business's financial health. Court will guide you through calculating and interpreting this vital figure, empowering you to make informed decisions that align with both your business and personal goals. Don't miss this opportunity to gain valuable insights and optimise your return on investment!
The Northern Rivers holds regular Community Events. See what's on and keep up to date on all the fantastic opportunities available and help to support local. There is plenty to do.
A reminder, there are some important lodgement dates to note this month and Christmas Office Closure dates.
The WD Nicholls Team
In November I listed out all the current political and economic events which have been in play (and I would say the majority are still current today). What has happened in the final month of 2024?
Well the big announcement was this week (Wednesday night 18 December). The federal reserve in the US dropped interest rates again by 0.25%. This is the third rate drop this year and was expected! However, it was what Mr Powell said after the announcement which pricked the markets ears up. The governor indicated to markets that he would only be looking to reduce rates next year 2 more times. Though this probably makes sense to me, given the economy is in a very good position, markets were pricing interest rates falling at least 4 more times next year. We will all be watching this more closely over the coming months.
In Australia we are still at the other end, we still have low unemployment (fell last month) and inflation is still elevated. The only recent negative economic data was GDP growth. It indicated the Private sector of Australia is doing it tough. However, as the government is spending, spending and spending the GDP result was slightly positive for the quarter at 0.30%. Our annual growth rate is now at 0.80% which is the lowest since COVID. However, the reserve bank has indicated they have no intention on dropping rates at the moment.
Given all of the above the Australian dollar has been sold off by approximately 10% since September. If you are a international investor you will not be be complaining as this is 10% additional return.
Well as another year flies by, I would like to wish you all Merry Christmas and all the best for 2025. If we could have another year like 2024 in 2025 I think we will all be very happy people, however I am not getting ahead of myself!
The returns up until the 20 December are:
The ATO have released Taxpayer alert – TA 2024/1 Early stage investor tax offset claimed using circular financing arrangements in response to a new tax avoidance scheme being promoted in the community.
Under the scheme, an investment opportunity in a start-up company is promoted to individuals by the scheme's operators. The operators assure the interested individuals the start-up qualifies as an Early stage innovation company (ESIC) and they can claim the early stage investor tax offset (tax offset).
The operators lend the individual money to buy shares in the start-up and then funds are moved around between the start-up, the individual investor, and the operator to access the tax offset.
The ATO are concerned these start-ups don’t qualify as ESICs.
These type of circular financing arrangements where participants inappropriately claim a tax offset and interest deductions can result in honest people being caught in a tax avoidance scheme. Participants and promoters of these types of arrangement may face serious penalties.
If an offer seems too good to be true, get advice from a registered tax professional (or an adviser who has no connection to the arrangement) before entering or committing to anything.
The ATO may examine the activities of a company if they have concerns it doesn't qualify as an ESIC, particularly if it has participated in the scheme or has carried on minimal or no activity.
For more information on identifying and reporting schemes visit tax schemes.
Source and credit: ATO.gov.au
The holidays are upon us, and it's time to show your amazing team some appreciation! But before you rush off to buy those festive hampers and gift cards, it's crucial to understand the tax implications of staff gifts. Don't worry, we're here to help you navigate the festive season without any unwanted surprises from the ATO.
What the ATO Wants You to Know
The Australian Taxation Office (ATO) has clear guidelines on staff gifts, and understanding them can save you money and hassle. Here's a breakdown:
1. Non-Entertainment Gifts Under $300:
Good news! These gifts are generally exempt from Fringe Benefits Tax (FBT), meaning you don't pay extra tax on them.
Even better news! You can usually claim a tax deduction for the cost of these gifts, reducing your business's taxable income.
And the cherry on top: You can also claim a GST credit for the GST included in the price.
Examples: Gift vouchers, hampers, flowers, books, technology items.
2. Non-Entertainment Gifts Over $300:
FBT may apply: You'll likely need to pay FBT on the grossed-up value of the gift. This calculation can be tricky, so it's best to chat with your accountant.
Tax deduction still applies: You can still claim a tax deduction for the cost of the gift itself.
GST credit remains: You can also still claim a GST credit.
3. Entertainment Gifts:
Not usually tax deductible: Gifts considered entertainment, like tickets to concerts or sporting events, are generally not tax deductible.
FBT likely applies: You'll usually have to pay FBT on these gifts, no matter their value.
Important Considerations:
Minor benefits exemption: The $300 threshold is per employee and is subject to the ATO's "minor benefits" exemption. This means the gift should be infrequent and not a reward for services.
Keep good records: Maintain detailed records of all staff gifts, including the date, cost, and recipient. This is crucial for supporting your tax claims.
Seek professional advice: If you're unsure about the tax implications of your chosen gifts, it's always best to speak with a qualified accountant. They can provide personalised advice and ensure you're maximizing your deductions while staying compliant.
Gifting Ideas Your Team Will Love (and the ATO Will Approve!)
Need some inspiration? Here are a few gift ideas that fit the bill:
Experiences: Consider gifting a voucher for a massage, cooking class, or weekend getaway.
Personalised gifts: Show you care with a gift that reflects their interests, like a book by their favourite author or a subscription box tailored to their hobbies.
Charity donations: Make a donation in your employee's name to a cause they support.
Food and drinks: A gourmet hamper or a selection of fine wines is always appreciated.
Technology: Gadgets like wireless headphones or portable speakers are popular choices.
Spread the Cheer Responsibly
This holiday season, show your employees how much you value their hard work with a thoughtful gift. By understanding the ATO's guidelines, you can ensure your generosity benefits both your team and your business. Happy gifting!
Source and credit: ATO.gov.au
If you’re registered for GST and you make a business purchase, you may be eligible to claim the GST you paid in the purchase price as a credit.
GST credits offset the GST you need to pay when you lodge your business activity statement (BAS). This will reduce the amount of GST you owe and may result in a refund.
If you’re also eligible for fuel tax credits, you can claim credits for the tax included in the price of fuel you use in your business.
The best way to ensure you don't miss out on any credits is to lodge your BAS on time.
How long do you have to claim?
You need to claim your GST and fuel tax credits within 4 years of the due date of the earliest BAS in which you could have made your claim for the relevant credit. If you don't claim the credits within that time, you'll no longer be eligible to claim them.
The credits must be included in your assessment within the 4-year credit time limit. Lodging an amendment to your original assessment or a private ruling request does not mean you have claimed your GST credits and fuel tax credits.
There are a number of options for claiming a credit other than requesting the ATO to amend your original assessment to include the credits. You can:
Claim the credits yourself by including them in your next BAS, provided that BAS is lodged within the 4-year credit time limit.
Lodge a Revised BAS (RBAS) for the original period via Online Services during the 4-year credit time limit (however, this is treated the same as an amendment request and so the credits will not be included in your assessment until the RBAS is processed by the ATO.
Lodge a valid objection during the 4-year credit time limit to preserve your entitlement to those credits.
The ATO recommends you consider your options early and do not leave your credit claims to the last minute because you risk your credit expiring.
Remember to keep accurate records to support your claims and get help from your registered tax or BAS agent if you need it.
To learn more about the 4-year credit time limit, visit Time limit on GST credits.
Fuel tax credit rates changed on 1 July 2024 and 5 August 2024. Read the ATO's tips for claiming fuel tax credits on your BAS.
Source and credit: ATO.gov.au
FREE WEBINAR Tuesday 14 January 2025 1:00 PM - 3:00 PM AEDT
Where
Online.
When
Tuesday, 14 January 2025, 1:00 pm - 3:00 pm AEDT.
The Presenter
Court Sayer-Roberts - Court, a qualified small business financial counsellor, brings over 20 years management experience in New Zealand and Australia. Court also codeveloped a federally funded small business support program for small businesses experiencing financial hardship. Specialising in team building and coaching, he simplifies business processes through a deep understanding of finances. Court’s goal is to empower business owners to make informed decisions in challenging environments
About
In this webinar you will focus on the importance of why understanding and calculating the break-even point is pivotal for small business owners, especially when approached holistically. This involves considering all aspects of their business to determine the point at which their revenue covers their costs and ultimately aligns business efforts with their goals for both business and personal life.
This webinar is aimed at small businesses throughout Illawarra, South East & Tablelands and Riverina Murray who have just started or have an established business and they have the capacity to host up to 50 people.
Learning Objectives
Comprehend the break-even point as a crucial metric for small business sustainability.
Utilise financial reports and tools to calculate and interpret break-even point.
Apply break-even analysis for better gains.
Learning Outcomes
Attendees will comprehend the break-even point's importance in determining the minimum sales needed for a sustainable business model.
Attendees will learn how to use financial reports and tools to calculate and interpret the break-even point, aiding informed decision-making.
Small business owners will gain the knowledge to apply break-even analysis, optimising their personal return on investment in alignment with business and lifestyle goals.
This Webinar will take place on Zoom. Click BOOK EVENT to register. You will receive the Zoom link and the one-time passcode in an email once registered and a text message reminder on the day of the webinar.
To register your interest click the link below.
Source and credit: Business.gov.au
We always like to support our locals! Here are some community events happening this month (in date order).
Mullumbimby Farmers Market dates on Friday's 20 and 27 December, 2024, 3,10,17, 24, 31 January 2025| 7:00 AM to 11:00 AM
The Mullumbimby Farmers Market is held on the third Saturday of each month from 8:00 am to 2:00 pm.
Established in 1989, the Mullumbimby market is more than just a place to shop. It's a vibrant community gathering with live music, delicious food, and a diverse range of local stalls. From artisan goods to eco-products, there's something for everyone. Enjoy the friendly atmosphere and unique finds at this market.
Location: The Mullum Showgrounds, Main Arm Road, Mullumbimby
Mullumbimby Community Market dates on Saturday's, 21 December 2024 and 20 January 2025 | 8:00 AM to 2:00 PM
The Mullumbimby Community Market is held on the third Saturday of each month from 8:00 am to 2:00 pm.
Established in 1989, the Mullumbimby market is more than just a place to shop. It's a vibrant community gathering with live music, delicious food, and a diverse range of local stalls. From artisan goods to eco-products, there's something for everyone. Enjoy the friendly atmosphere and unique finds at this market.
Location: Corner of Stuarts and Myocum Streets, Mullumbimby
Bangalow Farmers Market dates on Saturday's, 21 and 24 December 2024 and 4, 11, 18 and 25 January 2025 | 7:00 AM to 11:00 AM
Discover the Heart of Local Food at Bangalow Farmers Market Every Saturday morning from 7:00 am - 11:00 am, the Bangalow Hotel carpark transforms into a vibrant hub of local food. Our farmers offer a bountiful harvest of fresh produce, artisan goods, and more. Meet the farmers, learn about sustainable practices, and support your local community. Visit Bangalow Farmers Market and experience the true essence of local food.
Location: Behind Bangalow Hotel, 1 Byron Street, Bangalow
Byron Bay Soul Street New Year's Eve 2024 date is Tuesday, 31 December 2024 | 4:00 PM to 12.30 AM
Soul Street New Year's Eve is back in 2024! This is a free, family-friendly, community New Year's Eve event in central Byron Bay.
There will be two main areas of entertainment in town:
Jonson Street - live music on the sound stage, street dining and roving performers and children's activities from 4pm to 9pm.
Dening Park - lighting installations and entertainment on the main stage 6pm to 12.30am.
Soul Street is a zero-waste event. BYO cups, plates, cutlery etc.
The Byron Bay town centre is an alcohol-free zone. No alcohol will be allowed on the streets. On-the-spot fines apply.
Artists and food vendors!
Are you a performing artist? Do you run a food stall or food truck and would like to book a spot? Visit the Soul Street website for more information and an expression of interest form.
Traffic and parking changes
Jonson Street will be closed to traffic, as well as some surrounding streets and carparks.
Roads will be closed from 6am on 31 December. This includes:
Main Beach Carpark
Jonson Street between Byron Street and Lawson Street
Lawson Street Carpark
Detours will be in place and the town bypass will be open. All roads will reopen by 8am 1 January 2025.
Parking and Taxis
Taxi Rank - Jonson Street near Marvell Street intersection.
Pay Parking - in Byron Bay town centre from 9am to 6pm.
Location: Jonson Street and Dening Park, Dening Park, Byron Bay
Brunswick Heads Market next date on Saturday 4 January 2025 | 8:00 AM to 2:00 PM
The Brunswick Heads Monthly Market is held in the Memorial Park on the first Saturday of each month 8:00 am - 2:00 pm. The market is located on the riverbank, and is within easy walking distance of the cafes and shops.
The Brunswick Heads Markets offer a mix of locally made and imported goods, delicious hot food, and you can also pick up a few fresh groceries. The Bruns markets are a perfect excuse to spend the day exploring the town and the picturesque river and beaches.
Location: Memorial Park, 11 Fawcett Street, Brunswick Heads
Cane Toad Bust date is Thursday, 16-18 January 2025 | 5:30 PM to 8:30 PM
Bring your friends and family to a community Cane Toad Bust event at Waterlily Park, Ocean Shores. Learn how to identify cane toads and humanely reduce cane toad and tadpole numbers. You'll have the opportunity to practice collecting toads in preparation for our upcoming Online Toad Bust Challenge, where you can compete for exciting prizes!
Event details
As summer is cane toad breeding season, this is the ideal time to join our Community Toad Bust Event and Cane Toad Information Session and work together to control cane toads.
This family-friendly event will include:
5:30pm - 6:00pm: A talk by Watergum staff on the impacts of cane toads.
6:00pm - 6:30pm: A hands-on workshop about trapping cane toad tadpoles.
6:30pm - 7:00pm: Food break (light food provided!).
7:00pm - 8:00pm: Toad busting! We'll split into groups and work together to clear Waterlily Park of as many cane toads as we can.
8:00pm - 8:30pm: Counting the toads and crowning our winning "toad buster!"
What to bring
Covered walking shoes
Insect protection
Drinking water
Wear appropriate clothing for outdoors at night
If you have a toad bust kit, please bring it along. If not, Watergum will have gear you can use.
Toad busting kit equipment:
bucket with a lid
rubber of garden gloves
torch
pick up stick optional.
Register
Get your free ticket from Eventbrite to register your attendance.
Location: Waterlily Park, 1 Yamble Drive, Ocean Shores
Source and credit: Byron.nsw.gov.au/Recreation-Culture/Events-Venues/Whats-On
Our office will be closed for Christmas from;
5.00 pm Friday 20th December 2024
and
reopening 8.30 am Monday 6th January 2025 (AEDT)
We will also be closed for the Australia Day Holiday, Monday 27 January 2025
If you wish to arrange a telephone appointment or zoom meeting with one of our team please contact our office either by telephone or email.
Key lodgment and payment dates for business
21 December
Activity statements
November monthly activity statements – final date for lodgment and payment
.15 January 2025
TFN reportQuarter 2 (October–December)
TFN report for closely held trusts for TFNs quoted to a trustee by beneficiaries – final date for lodgment.
Income tax
Due date for lodgment of income tax returns for companies and trusts that were taxable medium to large taxpayers in the prior year and are not required to lodge earlier.
If you fail to lodge your current return on time your income tax return for the next financial year will be due by 31 October.21 January 2025Activity statementsDecember monthly activity statements – final date for lodgment and payment.Quarter 2 (October–December) PAYG instalment activity statement for head companies of consolidated groups – final date for lodgment and payment.
28 January 2025
Superannuation
Due date for super guarantee (SG) contributions, for quarter 2, (October–December).
Quarter 2 SG contributions are to be received by the superfund by this date – you need to allow sufficient time for SG payments to reach and be processed by your superfund, especially if using a SG clearing house.
If you don't pay the SG contributions for quarter 2 in full and by this date, you must pay the super guarantee charge (SGC) and lodge a SGC statement with us by 28 February.
It's important to note, SGC is more than the SG you would have normally paid and is not tax deductible.
Source and credit: ATO.gov.au
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