Update 1 March 2023

In our February news edition, we share some interesting market insights, free webinars and grant opportunities and highlight changes to work-from-home deductions.

Tony's market update includes interest rates forecast versus expectations. Reporting season has finished in the US and is near to completion in Australia. This is where companies announce to the market revenue/earnings and profits for the past 6 months. A summary of earning results is listed along with the current ASX rate.

There are changes to Work from Home Deductions. Taxpayers 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. The revised fixed rate method can be used from the 2022–23 income year onwards.

The Regional Job Creation Fund (RJCF) Round 3 provides an opportunity for existing businesses to diversify into new markets and innovate in regional NSW. Funded projects will create and maintain regional jobs, diversify regional economies, and provide skills, and training opportunities, including for young people, Aboriginal and/or Torres Strait Islander individuals and people with disability. Applications close 6 March 2023.

A free 60-minute webinar for small businesses will assist in understanding which deductions you can claim and when you can claim them. The session also covers what records you need to keep. Register now for the session 3:00 pm (AEDT) Tuesday 15 March 2023.

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.

The WD Nicholls Team

Over the past few months, sharemarkets globally are grappling with where interest rates will stop (as I have continued to write every month). In December, markets anticipated rates were going to still rise higher, however, in January they flipped and reduced their forecast. Now again in February, they are forecasting December’s view.

In addition to the interest rate debate, it is reporting season in the US (finished) and in Australia (nearly finished). What is reporting season? This is where companies announce to the market revenue/earnings and profits for the past 6 months. They will also usually provide guidance on earnings for the next 6 months. This allows investors to determine whether the current share price is in line with their valuations or not. The ASX is down 2.3% at the time of writing this article and earnings results have been partially responsible for this fall.

So, I thought today I would provide a summary of the earnings results so far:

• 38% of companies have beaten their half-year revenue expectations

• 49% have missed their net profit due to increasing costs having a large impact on their business (this is higher than the historical average)

• Companies are finding it difficult to pass on these costs

• Earnings expectations for the next 6 months are expected to slow but looks like they are in line with historical trends

• The ASX is down 2.3% since the start of February

Taxpayers 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.

The revised fixed rate method can be used from the 2022–23 income year onwards. The changes are:

Rate The cents per work hour has increased from 52 cents to 67 cents.

What’s covered by the rate The revised fixed rate of 67 cents per work hour covers energy expenses (electricity and gas), phone usage (mobile and home), internet, stationery, and computer consumables. No additional deduction for any expenses covered by the rate can be claimed if you use this method.

What can be claimed separately?

• The decline in value of assets used while working from home, such as computers and office furniture.

• The repairs and maintenance of these assets.

• The costs associated with cleaning a dedicated home office.

Home office The revised fixed rate method doesn’t require taxpayers to have a dedicated home office space to claim working-from-home expenses.

Record keeping Taxpayers need to keep a record of all the hours worked from home for the entire income year – the ATO won’t accept estimates, or a 4-week representative diary or similar document under this method from 1 March 2023.

Records of hours worked from home can be in any form provided they are kept as they occur, for example, timesheets, rosters, logs of time spent accessing employer or business systems, or a diary for the full year.

Records must be kept for each expense taxpayers have incurred which is covered by the fixed rate per hour (for example, if taxpayers use their phone and electricity when working from home, they must keep one bill for each of these expenses).

Actual cost method The actual cost method hasn’t changed. Taxpayers can claim the actual work-related portion of all running expenses.

This includes keeping detailed records for all the working-from-home expenses being claimed, including:

• all receipts, bills and other similar documents to show taxpayers have incurred the expenses, a record of the number of hours worked from home during the income year (either the actual hours or a diary or similar document kept for a representative 4-week period to show the usual pattern of working at home).

• a record of how taxpayers have calculated the work-related and private portion of their expenses (for example, a diary or similar document kept for a representative 4-week period to show the usual pattern of work-related use of a depreciating asset such as a laptop).

Source and credit: Mybusiness.com.au

APPLICATIONS CLOSE 6 MARCH 2023 AT 5.00 PM

The $100 million Regional Job Creation Fund (RJCF) Round 3 will support existing regional NSW businesses, or those seeking to relocate to regional NSW as they adapt to technological change, meet evolving supply chain distribution demands and leverage their strengths to drive ongoing productivity and regional economic development.

Funded projects will create and maintain regional jobs, diversify regional economies, and provide skills, and training opportunities, including for young people, Aboriginal and/or Torres Strait Islander individuals and people with disability.

This investment will lead to more sustainable employment and stronger and more resilient regional economies.

Under Round 3, grants will range from $100,000 to $10,000,000 to help businesses create and retain jobs, including for young people and Aboriginal and/or Torres Strait Islander individuals and people with disability, to support ongoing economic prosperity in regional NSW.

This round will involve a two-stage application process. The first, an Expression of Interest (EOI) which is to be completed using the SmartyGrants Portallaunch. All EOIs will be assessed against the Eligibility and Assessment criteria and suitable projects will be invited to progress to Stage 2.

Stage 2 of the application process is the completion of a Detailed Application where further project information is required. Only Eligible applicants will be invited to submit a Detailed Application.

Unsuccessful Applicants will be informed in writing from 8 May 2023.

Who can apply

To be eligible to apply for funding, applicants must:

• have an Australian Business Number (ABN)

• be one of the following:

  • a company incorporated in Australia

  • a company incorporated by guarantee

  • an incorporated trustee on behalf of a trust

  • an incorporated association or co-operative

  • a partnership

  • a sole trader

  • an Aboriginal and/or Torres Strait Islander Corporation registered under the Corporations (Aboriginal and /or Torres Strait Islander) Act 2006.

• be registered for GST

• be financially viable and able to demonstrate that they are likely to remain so over the duration of the project

• have at least $20 million public liability insurance or be able to secure before entering into a Funding Deed if successful.

Applicants can be based internationally, interstate or in metropolitan or regional NSW. International businesses will need to have an ABN, to be registered for GST, have at least $20 million in public liability insurance and be an eligible entity (as listed above), to enter into a Funding Deed if they are successful.

To apply click the link below.

Source and credit: NSW.gov.au

Small businesses can claim tax deductions for most business expenses.

This 60-minute session will help you know which deductions you can claim and when you can claim them. The session also covers what records you need to keep.

Places fill quickly. Register now for the session 3:00 pm (AEDT) Tuesday 15 March 2023 below. Click the link below to register.

Source and credit: ATO.gov.au

We always like to support our locals! Here are some community events happening this month

Byron Farmers Market next date is Thursday, 02 March 2023 | 07:00 AM to 11:00 AM

The Byron Farmers Market is one of the longest-running farmers’ markets in Australia.

It was started in 2002 by a handful of local farmers who wanted to be able to sell their produce directly to the public, in the process reducing food miles and ensuring their small farms remained viable

Location: Cavanbah Centre, Ewingsdale Road, West Byron Bay

Free one-day family-friendly community festival next date is Saturday, 04 March 2023 | 09:00 AM to 05:00 PM

There will be:

• Short gardening workshops

• Activities for the kids

• Singing

• Dancing

• Music

Location: 156 Stuart Street, Mullumbimby

Reflect and Connect date is Sunday, 5 March 2023 | 10:00 AM to 2:00 PM

Reflect and Connect Days are an opportunity to come together one year on from the 2022 floods.

Activities include:

• Community BBQ

• Weaving workshops

• Art activities

• Red Cross DROPS (Disaster Recovery of People’s Stories)

• Plus much more.

Safe Haven support staff will be available on the day.

Location: Stan Robinson Park, Mullumbimby

Mullumbimby Farmers Market next date is Saturday, 18 March 2023 | 08:00 AM to 2:00 PM

The Mullumbimby Farmers Market is held every Friday from 07:00 AM – 11:00 AM at Mullum Showgrounds, Main Arm Road, Mullumbimby 2482.

The Mullumbimby Farmers Market is a not-for-profit organisation, which means every dollar you spend goes toward supporting local farmers, the community and a more sustainable future.

Location: 10 Myocum Street, Mullumbimby

If you want to know more about what is going on in your local community, click the link below.

Source and credit: Byron.nsw.gov.au

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.

• 21 March 2023 February monthly BAS due