November 2024 E News
As we head into the holiday season, there are a few key updates to keep in mind. The ATO is increasing its scrutiny of Medium and Emerging Private Groups, focusing on trusts, business loans, capital gains tax, and income reporting. Be mindful of FBT implications when planning employee celebrations. Additionally, stay informed about the ATO's upcoming office closure and SBSCH payment deadlines. To boost your business's online presence, join a free social media webinar on December 5th. And don't forget to check out the exciting community events happening in the Northern Rivers.
November was a month of significant market volatility and economic developments. Nvidia's strong earnings initially boosted sentiment, but concerns over future guidance tempered optimism. Gold prices rose as geopolitical tensions increased, while oil prices surged due to the ongoing Russia-Ukraine conflict. In the banking sector, ANZ Bank reported a decline in profits, while Commonwealth Bank's results were mixed. BHP's shares gained following a legal settlement. Australian inflation data showed a slight easing, and the RBA maintained the cash rate, citing underlying inflation and labor market conditions as key factors. The global economic landscape was further influenced by news from the US, including the presidential election and a reduction in interest rates.
The ATO is increasing its scrutiny of Medium and Emerging Private Groups. If your business fits this category, it's crucial to ensure compliance with tax regulations to avoid potential penalties. In this newsletter, we'll delve into the key areas the ATO is targeting: trusts, business loans, capital gains tax, and income reporting. Stay informed and protect your business by understanding these important tax implications.
As we kick off the holiday season, you may be gearing up to organise a celebration with your team. Before securing a restaurant or event venue, it's essential to determine if the benefits you offer your employees are classified as entertainment-related and could incur fringe benefits tax (FBT). Factors influencing this include: the amount spent per employee, the location and timing of your event, who will be in attendance - solely employees or also partners, clients, and suppliers, as well as the value and type of gifts provided. If entertainment-related fringe benefits are provided, ensure proper record-keeping to calculate their taxable value accurately. Understanding how FBT operates before offering additional perks is crucial to avoid unexpected FBT obligations. Follow the steps below to assess FBT on food, beverages, and recreational activities provided to employees.
As the ATO prepares for its annual office shutdown, it's essential to note key dates for Small Business Superannuation Clearing House (SBSCH) payments. All super payments with instructions received after 5:30 PM AEDT on December 10, 2024, will be processed from January 2, 2025. Additionally, super guarantee quarterly payments are due on January 28, 2025. The ATO's offices and contact centers will be closed from December 24, 2024, to January 2, 2025. For the latest information on SBSCH system status and maintenance schedules, please visit the ATO's website.
Want to boost your business's social media presence? Join a FREE webinar on Thursday, 5 December, from 1:00 PM to 3:00 PM AEDT. Learn about the latest trends, platform-specific strategies, and algorithm updates from social media expert Edwin John Smith. This webinar is perfect for small businesses looking to increase engagement and grow their online audience. Register now to secure your spot!
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
November was quite an eventful month with plenty happening on the economic, political and the markets! Here is a summary of some of the key events/announcements:
Nvidia, the single stock that has become the barometer of US economic activity and the tide that lifts the entire equity market, posted US$35.1 billion in third quarter revenue, coming in above expectations. The share price fell on the announcement as their guidance underwhelmed lofty expectations, before a strong finish to the week.
The gold price rose this week as geopolitical tensions pushed the safe-haven asset higher, arresting some price weakness over the last few weeks.
Oil prices also rose as the Russia-Ukraine conflict continues to impact global energy markets.
ANZ bank announced an 8% drop in cash profit to $6.7 billion with fierce competition for home loan customers weighing on margins at the big banks. Commonwealth Bank of Australia reported first quarter earnings slightly ahead of market consensus, helped by improved volumes in its home lending and household deposits. Cash profit was $2.5 billion for the quarter, the same as the corresponding period last year, whilst costs were up 3%. This continues to add to the confusion on why the bank share prices have risen so much this year.
BHP shares gained as the company reached a settlement with authorities in Brazil over the Samarco dam failure in 2015, agreeing to pay $45 billion in reparations for the disaster. The outcome was in line with the money BHP had set aside to meet their potential obligations.
Australian headline inflation rose by 0.2% in the September quarter with the annual rate dipping to 2.8%. The critical trimmed mean measure increased by 0.8% in the quarter which saw the annual rate ease to 3.5%, still above the RBA’s target band.
The Reserve Bank of Australia (RBA) Board has decided to leave the cash rate unchanged at 4.35%, as expected. Subtle call outs were made in the following areas:
Underlying versus headline inflation - this was needed given recent falls in headline inflation (as expected) versus underlying inflation (3.5%) which remains firmly above the mid-point (2.5%) of the RBA's target band. The RBA sets their policy based on underlying inflation.
Further detail on labour market conditions as they pertain to full employment and implications for inflation - i.e. even though the unemployment rate has ticked up, labour market conditions remain tight with a very high participation rate, and with both underemployment and youth unemployment improving of late.
Recent Chinese stimulus - which was large, but short on some specific details.
Donald Trump was elected as the President and the markets were very happy with the result. The US sharemarket is up 5.72% this month.
The US announced another reduction in their interest rates to 4.5% to 4.75%.
The returns up until the end of November are:
If you’re a growing business you could be included in the ATO's Medium and Emerging private groups tax performance program. This will affect how you manage your tax and other obligations.
Over the next month, the ATO will be contacting selected businesses and entities who now meet their criteria for Medium and Emerging private groups, such as:
private groups linked to Australian resident individuals who, together with their associates, control wealth between $5 million and $50 million
businesses with an annual turnover of more than $10 million that are not public or foreign owned and are not linked to a high wealth private group.
From speaking with medium and emerging private groups, the ATO have identified 4 key areas where they see errors being made. These are areas you should focus on to avoid the kinds of mistakes that can lead to penalties.
Trusts
If you've got a trust or trusts in your business structure, revisit your governance and learn which trust activities attract the ATO's attention.
Business loans and Division 7A
If you've got Division 7A arrangements in place, complete annual checks to make sure you are compliant. Look out for:
incorrect accounting
loans that don’t comply with Division 7A agreements
incorrect benchmark interest rates
reborrowing from a private company to make repayments on Division 7A loans.
Capital gains tax (CGT) concessions
If you’re restructuring and looking to access CGT concessions, check your eligibility each year before you apply for those concessions.
Omitted or incorrect reporting of income
If you haven’t reported all of your income or if you’ve made a mistake, you should correct the mistake or amend your return.
If the ATO contacts your business, you can contact your registered tax professional to discuss your obligations and check that you’re not making these errors in your records.
Source and credit: Business.gov.au
With the holiday season kicking off, you may be planning a celebration with your staff.
Before you hire a restaurant or book an event, make sure you work out if the benefits you provide your employees are considered entertainment related and if they’ll attract fringe benefits tax (FBT).
This will depend on:
the amount you spend on each employee
when and where your celebration is held
who attends - is it just employees? Or are partners, clients and suppliers also invited?
the value and type of gifts you provide.
If you do provide entertainment-related fringe benefits, keep the right records to support this so you can calculate their taxable value.
It's important to get on top of how FBT works before you provide perks and extras. Otherwise, you may end up with an unexpected FBT liability.
Use these steps to work out the FBT on food, drink and recreation you provide to employees.
Step 1: Determine if the food, drink or recreation is considered entertainment
Whether you're in business, a not-for-profit organisation or government, you first need to work out if food, drink or recreation you provide is considered entertainment.
Step 2: Determine if the entertainment is a tax-exempt body entertainment fringe benefit
This only affects not-for-profit and government organisations.
A tax-exempt body entertainment fringe benefit is a non-deductible entertainment benefit provided to employees (or their associates) by an income tax exempt organisation.
Step 3: Check if the benefit is exempt from FBT
Check the exemptions and concessions for:
Step 4: Check if you can reduce your FBT liability
There are several ways you can reduce your FBT. For example, you can provide a cash bonus instead of a benefit, or your employee might contribute to the cost of the entertainment.
Step 5: Calculate the taxable value of the entertainment
Before you can work out any FBT liability, you need to calculate the taxable value of entertainment-related benefits.
Step 6: Lodge, report and pay FBT
If you have an FBT liability, you will need to:
check if you should report the fringe benefit in your employee's payment information through Single Touch Payroll (or on your employee’s payment summary).
Claiming tax deductions and GST credits
You can generally claim an income tax deduction and GST credits for the cost of providing entertainment that is a fringe benefit. This does not apply to exempt benefits because they are not fringe benefits.
If you can claim GST credits, you claim the GST-exclusive fringe benefit amount as an income tax deduction.
If you can't claim GST credits, you claim the whole fringe benefit amount as an income tax deduction.
Income tax exempt organisations do not claim income tax deductions.
Entertainment benefits provided to people other than employees or their associates (to clients for example) are not subject to FBT and are generally not income tax deductible for employers.
For more information see FBT guide: 14.15 Income tax deductibility.
Source and credit: ATO.gov.au
As we approach the ATO's annual office shutdown period, there are key dates you need to be aware of for the Small Business Superannuation Clearing House (SBSCH):
5:30 pm AEDT on 10 December 2024 – all super payments with instructions received after close of business on this date will be processed from 2 January 2025
28 January 2025 – super guarantee quarterly payments are due.
The ATO's office and contact centres will close at noon Tuesday 24 December 2024 and re-open at 8:00 am Thursday 2 January 2025, local time.
For more information:
check out SBSCH page
ATO Online system maintenance schedule
SBSCH system status on the ATO's website for the latest timings.
Source and credit: ATO.gov.au
FREE WEBINAR Thursday 5 December 1:00 PM - 3:00 PM AEDT
Where
Online.
When
Thursday, 5 December 2024, 1:00 pm - 3:00 pm AEDT.
The Presenter
Edwin John Smith - Edwin's worked in social media for 11 years, and in a previous life ran the Facebook, Instagram, Twitter and TikTok accounts for some of the biggest shows on TV, including Survivor, The Voice, I'm A Celebrity Get Me Out of Here, Love Island, 10 Sport and more. Edwin has an intricate knowledge of what makes each social platform tick. In the last 3 years, Edwin has worked with over 500 small business owners to increase their organic social media footprint and is looking forward to helping yours.
About
Social media is always changing, and staying updated on the latest trends is essential for small businesses. In this webinar, we’ll cover the key behaviours and topics shaping social media today and how your business can adapt to stay relevant. With people spending an average of 30 minutes daily on social platforms, it's a great time to engage new audiences. Join us as we explore strategies to boost engagement, grow your business, and stay ahead.
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 we have the capacity to host up to 50 people.
Learning Objectives:
Understand the latest social media trends: Gain insight into the most recent trends across key social media platforms, helping businesses to capitalise on what's currently popular and effective in digital engagement.
Explore platform-specific features and best practices: Learn how to leverage the unique tools, algorithms, and features offered by various platforms to optimise audience reach and engagement.
Stay informed on social media algorithm changes and updates: Understand recent updates and changes to social media algorithms and features, enabling businesses to adjust their strategies for improved visibility and connection with their audience.
Learning Outcomes:
Business stays relevant in a fast-changing digital landscape: Understand how to apply emerging trends and updates to keep your business aligned with modern digital marketing practices.
Enhanced social media engagement and growth: Learn techniques to grow your social media presence and foster deeper connections with your target audience through effective strategies.
Maintain a competitive edge: By staying informed and adapting to new trends and updates, your business will remain ahead of the curve, positioning it for sustained success in a competitive market.
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).
Byron Bay Community Market next date is Sunday, 1 December 2024 | 8:00 AM to 3:00 PM
The Byron Bay Community Market hosts an eclectic collection of market stalls that showcase what Byron has to offer.
The market is held from 8:00 am to 3:00 pm on the 1st Sunday of every month.
Road closures and traffic changes on market day
Jonson Street is closed to traffic at the corner of Byron and Marvel Streets from 5am to 5pm.
Traffic is diverted via Fletcher Street.
The Lawson Street South carpark is closed from 5am to 5pm.
There may be traffic delays are on Lawson Street between the Shirley Street and Jonson Street roundabouts between 6am to 8am and 3pm to 5.30pm.
The railway carpark is open under traffic control via the laneway on Jonson Street.
Traffic controllers will be in place on market day.
Location: Byron Bay CBD, Railway Park, Jonson Street, Byron Bay
Council Planning Meeting next date is Thursday, 5 December 2024 | 9:00 AM to 6:00 PM
Council meetings are held in the Chambers.
Go to How to join the meeting for ways you can participate in the meeting.
A livestream is available to watch online.
Questions about the meeting?
Phone: 02 6626 7051
Location: Council Chambers, 70 Station Street, Mullumbimby
Brunswick Heads Market next date on Saturday 7 December 2024 | 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
Chemical-free Camphor Laurel Management Workshop date is Saturday, 7 December 2024 | 8:30 AM to 1:30 PM
Register today to attend this workshop. Learn to manage Camphor Laurel using chemical-free techniques. You will also learn about using these trees to grow food such as edible mushrooms. You will also visit some chemical-free camphor sites and do hands-on activities!
Details about the workshop
Nadia from Organic Landcare Inc. and Pierre from Rainbow Regen are local experts in bush regeneration. They have successfully improved our ecosystems by focusing on managing camphor trees instead of trying to remove them completely, which can cause other problems down the track.
In this workshop, Nadia and Pierre will show their different methods for managing camphor, including using fungi.
This is a great chance to learn a way to manage camphor without harmful chemicals and:
enhance soil health
increase biodiversity
boost food production.
The day will include visits to sites using these methods. It will also have demos to help you learn to apply them on your own land.
Catering
Morning tea will be provided.
What to bring
Appropriate walking closed shoes.
Sun protection.
Water bottle.
You will also need a vehicle/carpool to get yourself between the 2 sites (5 minute drive).
Get tickets
Get your free ticket from the humanitix event listing to register your attendance. Spaces are limited. If your plans change and you can no longer make it, please let us know so that we can open your ticket up to someone else on the waitlist.
Location: Mullumbimby Community Garden + Private Property, 156 Stuart St, Mullumbimby
Mullumbimby Community Market next date is Saturday, 21 December 2024 | 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
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
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)
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
1 December
Income tax
Payment due date for companies that were taxable medium to large clients in the immediate prior yearPayment due date for companies that were required to lodge by 31 October
Lodgment date for non-full assessment company entities – payment date is as per the notice of assessment.
21 December
Activity statements
November monthly activity statements – final date for lodgment and payment.
Source and credit: ATO.gov.au
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