48 minute read
COLUMNIST ARTICLES
Have you purchased a motor vehicle recently, the ATO might be interested in your transaction.
ACCOUNTANT
By Warren Strybosch
The ATO has released a statement stating it will start to gather information pertaining to the purchase of motor vehicles from State and Territory motor vehicle registry authorities. The periods it will start to look at are the 2020 financial year and it is likely to continue beyond 2020.
The ATO will be collecting and data matching a lot of information. Some of the information they will be collecting are as follows:
• identification details – names; addresses; phone numbers; date of birth for individuals; Australian business number; Australian company number for purchaser(s), seller(s), licenced dealer, fleet manager, leasing company (or representative of any of these); the registering person for an unincorporated body
• transaction details – date of transaction; type of transaction; sale price of the vehicle; market value of the vehicle; vehicle’s garage address; type of intended vehicle use; vehicle make; vehicle model; vehicle body type; year of manufacture; engine capacity or number of cylinders; tare weight; gross weight; vehicle identification number; registration number; transaction receipt number; state stamp duty exemption; reason for stamp duty exemption; dealer’s licence number.
The objective will be to address any noncompliance that may have occurred as follows:
• identify and address taxpayers buying and selling motor vehicles who may not be meeting their obligations to register and lodgereturns (including activity statements) and ensure the correct reporting of income and entitlement to both deductions and input tax credits • to identify taxpayers that have purchased vehicles with values that are not commensurate with the income they have reported • to determine if the use of interposed proxy ownership is used to conceal the real accumulation of wealth, therefore representing a material threat to public revenue • identify and deal with those taxpayers who may not have met their obligations primarily with regards to GST, fringe benefits tax, luxury car tax, fuel schemes and income tax • promote voluntary compliance and strengthen community confidence in the integrity of the taxation and superannuation systems by publicising the running of this data matching program Already the ATO is data matching general insurance policies and now they are taking it a step further to data match the purchase and sale of motor vehicles.
Many business owners will usually purchase the vehicle in the business. They will claim the GST associated with the purchase and aim to depreciate the vehicle over the coming years to increase their deductions thus minimizing the amount of tax they pay. What often happens is that when the vehicle is sold, the owners seem to forget that the proceeds need to be placed back into the busines and the GST also accounted for. Obviously, the ATO is aware of this and this might be there way of putting a stop to it. It is likely costing the ATO a lot in missed revenue.
You can read more about the data matching program related to motor vehicles here.
Warren Strybosch
You can call them on 1300 88 38 30 or email info@findaccountant.com.au www.findaccountant.com.au
How to keep your house cool in summer
ARCHITECT
By Kathy Ismail
Those hot summer days just keep on coming. That’s great if you’re on the beach or lazing around on the decking, but what about indoors? Is your home as cool as you would like it to be?
It sounds obvious but if the sun is out, your home is getting hotter by the second. Heat comes in through the roof and walls but mainly through the windows. Apart from shutting all the curtains and living in a ‘cave’, how can you minimise the sun’s heating effect while still having a light, bright interior?
There are two main way to shade your windows: with eaves and with shading.
Eaves
If you look out the window at the top, you will see part of the roof jutting out – these are the eaves. They are specifically designed to protect windows from heat, rain and other weather events. If designed well, they will block the sun in summer (when the sun is higher in the sky) but allow the lower rays of winter light in. A bonus is if there are deep eaves and airflow from west- to east-facing windows across the whole building as this will save you heaps on air-conditioning bills!
Awnings
Some residences don’t have eaves, for instance apartments and some modern houses. The good news is the huge variety of shading options to suit your home, style and budget. Why not go for attractive awnings! These are now made from a wide variety of materials that include steel, timber, corrugated sheet metal, cement sheet and rigid polycarbonate sheeting. Lightcoloured ones will shade your home more effectively. Fixed awnings can be horizontal or angled. Retractable ones can be in place just for summer and be out of the way in the cooler months when you’ll want more light in your rooms. Fortunately, gone are the days when you had to go out in the blistering heat and lower them by hand. Now there are motorised versions available that can be lowered from indoors and some even monitor wind levels and retract when the wind strength is becoming too high! Awning will need to be cleaned and maintained regularly but they come at a moderate cost.
Sail shades and umbrellas
These can be bought off the shelf or custom-made to your requirements. They can be made of traditional canvas, but natural materials exposed to the weather have a greatly reduced lifespan compared to high-tech PVC, polyester and fibreglass fabrics now on the market. The new fabrics breathe better, let in light, have better visibility through them and shade better than canvas does. They come in a range of light blockout levels and can be waterproofed against rain. However, they are more fragile than other shading options and can be damaged in high winds. They can be fitted with sensors that close them automatically when bad weather arrives.
Pergolas
If you have the space, a ‘green’ shading is a lovely decorative way to keep your home cool. Install a pergola and cover it with deciduous vines. Not only will you have something beautiful to look at in the summer, the vine leaves will drop in autumn, leaving you with plenty of light during winter. However, any growing plant needs maintenance so if you’re not a gardener or don’t employ one, maybe this options isn’t for you! The pergola can also be covered with a translucent roof that allow light to come through. Many of these translucent polycarbonate roofs are now versatile and durable. Some of them even claimed to withstand hailstorms!
Which shading should I install?
Besides price, you will need to factor in such considerations as the amount of space you have, the amount of visibility and permeability, the ease of operation, whether it’s mechanised and whether it can serve a double purpose (for instance, keeping out insects). Many of these can be added to an existing home.
If you’re already undergoing a building project, it’s a good idea to talk to your architect as they will have some great and imaginative solutions to the heat versus light issue. There is a reason that our early European settlers style have those sweeping verandas around the house!
Contact Kir Architecture at contact@ kirarchitecture.com.au for help with planning your building projects. We are always happy to answer any inquiries.
Kathy Ismail
ARCHITECT KiR Architecture www.kirarchitecture.com 0422 026 962
Sole Traders Management Liability
GENERAL INSURANCE
By Craig Anderson
Often you hear sayings like “You don’t know what you don’t know” and whilst this is true, the part that is not spelled out, is that you do not know the extent of the consequences of acting without all of the facts at hand. If you are a Sole Trader, and consequently you have no incorporated entity through which you operate your business, then it is fair to say you are not a director. Taking out a policy that protects only the directors and officers of an incorporated body from liability for employment practices breaches, when this does not describe you, may lead to a failed claim and significant personal losses.
Remember that once you enter into a legal contract with the insurer that it is your duty to ensure all of the information provided to them is accurate, so if you are a Sole Trader with an ABN, the insured entity is you, not your “Trading As” name. Your broker will ensure this is all correct before submission, however if you are obtaining insurance directly on-line, the computer algorithm creating your quote will not know the difference. I have seen a fair few policies made out in the wrong name, and I can assure you the insurer is not obliged to pay when the entity name is missing. Now you know there may be a problem, the next step is looking at what policy will provide a trigger for a claim if you are a sole trader. Luckily, such a product exists, and it protects the sole trader from personal financial losses rather than offering reimbursement clauses to a company entity. Claims may range from unfair dismissal, harassment, discrimination and other wrongful employment related acts, to Employee Theft, Tax Audits and Investigations, Workplace Health and Safety Incidents, Pollution Costs, and Advancement of Costs and Emergency Defence Costs.
This cover is suited to Sole Traders who fall (loosely) into the following categories:
Bookkeepers, Individual Consultants, Tradespeople, IT Consultants, Freelance Writers, Landscapers and Gardeners, Direct Retailers, and Allied Health Consultants.
If your trade is not listed above, feel free to contact us and we can find out from the Insurer if your individual occupation can be accommodated.
Even before you take out cover, to ensure you avoid employment related claims, it is necessary to create the correct policies and procedures and implement them properly. Hiring an HR consultant to help write and roll-out the policies may help put you in a better position to eliminate the circumstances that may generate a claim in the first place. However if a claim occurs, it is then up to the insurer to take it from there.
When you “Don’t know what you don’t know” then ask the people who do, like your Insurance Broker. Any advice in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, before acting on the above advice, you should consider its appropriateness (having regard to your objectives, needs and financial situation).
Craig Anderson
General Insurance Small Business Insurance Brokers
www. heightsafetyinsurancebrokers.com.au 0418 300 096
Top Tips for Resolving Your Cash Flow Issues
BOOKKEEPER
By Neha Nayyar
Do you find yourself spending too much time invoicing or chasing up customers for payments? Many business owners find themselves constantly worrying that they aren’t receiving payments quickly enough for services they already provided.
Here are our top tips to resolving cash flow issues:
1. Invoice urgency - Sending invoices for your services immediately helps increase the chance of the invoice being paid more timely. It’s best to keep the service and invoice fresh in your clients memory and by sending them as soon as possible it expresses the urgency in which they should be paid. When you delay sending the invoice to your client you may be unintentionally giving them the impression that there’s no urgency to pay. We recommend you also use an automated invoicing system which will automatically send reminders to the clients when the invoice is overdue.
2. Making payments easy - By connecting your invoice system to a payment gateway it makes it easier for customers to pay your invoices. Rather than manually having to type in your bsb and account numbers every time a client wants to pay you, you can connect your invoices to a payment gateway so a “pay now” button appears on the invoices and they can pay directly through the link! Allowing both debit and credit card payments will make it easier for them and help make you cashflow happy.
2. Implement deposits - This is especially important for new customers to help you determine their authenticity and whether or not they are genuine. If a customer is not willing to pay a deposit, you are risking the chance that the invoices won’t get paid.
3. Implement deposits - This is especially important for new customers to help you determine their authenticity and whether or not they are genuine. If a customer is not willing to pay a deposit, you are risking the chance that the invoices won’t get paid.
4. Automatic reminders - Most automated accounting systems will allow you to enable automatic reminders. We highly recommend you set this up in your system. These reminders are especially important because number 1. They save you time from having to chase up your clients and number 2. It helps keep the invoice fresh in the customers mind. It will also help you keep track of the status of the invoices as well as increase the opportunities for a payment to be made.
We understand there are many accounting systems and payment gateways in the market and it’s about finding the right fit for you and your business. By following these 4 tips you are making payments easier for both the customer and yourself which will help keep you cash flow happy!
Here at Sum and Substance we are passionate about helping businesses resolve their cash flow issues. Please contact us if you would like any assistance managing your cashflow, setting up invoice reminders or connecting your systems to payment gateways. We can be reached at (03) 9424 9447 or info@ sumsubstance.com.au. You can directly book in a time to chat by clicking here.
Neha Nayyar
Bookkeeper | Sum and Subtance 0401 409 573 info@sumsubstance.com.au
Window & Wall Graphics
SIGNAGES
By Glenn Martin
Everything you need to make an informed decision on your next window or wall graphics project.
Window and wall graphics are an innovative signage option to create dynamic and visually striking spaces. Enhance your office and retail space, create private spaces, screen sunlight, or decorate your own home. with our cutting edge printers and high quality materials, we can apply any graphic to nearly any surface, from high resolution photographs that span entire walls, to decals of your logo on the office door.
Decals are an economical alternative to the traditional signwriting approach.
Apply logos, lettering, images, and elements individually onto the surface of your walls and windows. Our decals can be produced in any number, size and cut into just about any shape. They are digitally printed with special inks on a vinyl or clear polyester film that can be applied to virtually any surface.
Choose from gloss, matte, clear and frosted vinyl options, with permanent and non-permanent features also available. They can be waterproof and are durable. Generally, they last around 3 years if used outdoors (and if laminated).
Computer cut vinyl is available in a large range of colours. This is best for adding a business name, simple one or two colour logo, phone number or web address onto a window. We use high quality vinyl, and design and cut in-house on our plotting machine.
Turn your bare walls and windows into an advertising space.
Wall and window graphics will change the way people experience your premises. Maximise your branding, promote new products and sales, improve workplace productivity and morale, entertain, and inform customers, or enhance your home environment.
From large off-site jobs to interior office walls, we have a range of solutions to suit every space, style, and budget. Our team of experts will guide you through the process from initial concept, to graphic design and quality installation. We source only the best materials, industry standard printers and professional installers.
Now you are no longer limited to only wallpaper or paint. Print photographs, colours, patterns, or text to instantly transform your living space. Provide your own images or work closely with our team of qualified graphic designers to create the perfect design to suit your space. Our stock libraries have thousands of highresolution photos, illustrations, fonts and backgrounds to choose from.
Our cutting edge wall graphics are printed on a range of high-grade vinyl or non-PVC materials and overlaminate finishes and installed by professional applicators. Easily update and replace graphics without the time and cost of remodelling.
Our team of signage consultants, designers, and installers will work closely with you to gain a full understanding of your requirements, answer questions, suggest options, meet deadlines, and make sure you are satisfied with the finished product. Whether you have a brand new space or need a reboot, our high quality graphics will have your walls singing!
To learn more about wall and window graphics, call or visit Signarama Mitcham to discuss your ideas and visit us on Instagram to see our latest work @ signarama_mitcham
Managing Director | Signarama Signages 0411 835 668 mictham@signarama.com.au
Window Decals
Glenn Martin
Wall Decals
High Resolution Wall Photo Print
Wall Mural
Hoarding Signage
Wall Graphics
Managing Mastitis
LACTATION CONSULTANT
By Dr. Joanna Strybosh
Mastitis is a common inflammatory condition of the breast tissue. It is estimated that one in four breastfeeding women experience mastitis at some point in time, most commonly in their first 26 weeks postpartum.
It is a condition that presents with red, tender, hot and/or swollen areas of the breast and flu like symptoms such as fever, aches and chills. It can vary in severity from mild through to a more severe condition. It is possible to develop mastitis more than once in the same lactation as well as in subsequent lactations.
The most common form of mastitis is acute lactational mastitis (ALM). Sometimes there is an infectious agent - most frequently staphylococcus aureus. However often there is no clear infectious pathogen involved. In these cases, the most common cause is inflammation due to milk stasis. When there is inadequate milk removal from the breast, milk builds up within a lobe of the breast causing inflammation and the characteristic intense local pain of mastitis.
Acute lactational mastitis has a sudden onset of symptoms and usually runs a short course. The known risk factors for mastitis are the wearing of a tight bra, previous mastitis, no breastfeeding support, long times between feeds, hyperlactation, use of nipple shields and quick weaning. These situations lead to milk stasis and/or inadequate milk removal. In addition, nipple wounds are a risk factor for staph aureus infections.
The first step in the management of ALM is to keep the breasts as empty as possible. This means breastfeeding more often and making sure that baby is properly positioned and latched for effective milk removal. If baby is unwilling or unable to feed, milk removal must be done through hand expression or use of a breast pump. Mastitis can be an extremely painful condition. Mothers need to be cared for and supported to continue breastfeeding while recovering from mastitis so as to not prematurely wean. They need lots of rest, which is vital for a quick recovery. They also need to remain well hydrated and to eat well. The use of cold compresses on the affected breast can be soothing as well as short periods of warmth on the breast just before feeding in order to help the milk flow. Practically, mums need help with their baby and any other siblings as well as help around the home, in order to allow her to have adequate rest.
If symptoms do not resolve within 12 to 24 hours or if the mother is feeling very unwell she should continue with the above measures and seek medical treatment. In these cases, antibiotics will be required. After commencing antibiotic treatment usually the symptoms of fever and chills disappear within 12 hours. However the pain, redness and breast lump will take longer to resolve. If symptoms do not improve within 48 hours see your doctor again for further help. ALM can lead to a breast abscess if not managed correctly or treated adequately.
During mastitis, a mother’s milk will taste more salty but it is perfectly safe for her baby to drink. Putting her baby to the breast frequently is usually the most effective way to remove milk from the breast and resolve mastitis and should always be encouraged. Recent studies have shown that the risk of developing lactational mastitis is significantly reduced by the daily consumption of fermented foods and drinks, including kefir and boza, homemade and conventional yoghurts and pickles. Consuming a diversity of these foods was also found to be protective. In contrast, the consumption of probiotic supplements for the management of mastitis is unproven.
Mastitis is a common inflammatory condition of breast characterised by local pain and redness and flu-like symptoms. Management involves the effective removal of milk by frequent breastfeeding or expressing/pumping if required. The majority of cases will resolve with this management. Antibiotic treatment may be required in some cases.
See your lactation consultant for further advice.
Photo Credit to Kevin Liang
Dr. Joanna Strybosch
Osteopath B.App.Sc(Clin.Sc)/B.Osteo.Sc/Grad Dip Paeds Lactation Consultant www.childrensoteopathiccentre.com 9876 3011
Take the journey...Love is all you need!
PARENTING
By Lesley-Anne Banton
Over the last 5 years I have worked with men and women who have wanted to go on the journey of self-discovery and self-development. Some have started the journey because the have some emotional pain somewhere in their life. Some have started the journey because they knew there was more inside them, they had had not yet discovered or taped into. Some have taken the journey because they have felt like they do not fit in anywhere and or they are misunderstood and in fact do not fully understand themselves. There are those who have seen and experience trauma. There are those that have taken the journey because they want to enhance the life they have, expand, and enhance their thinking about themselves and the world around them. And there are those who have taken the journey because of their children wanting to be a better version of themselves for their children.
All have entered the journey because of LOVE, either the absence and wanting of self-love or because of the love they have for themselves and those around them. Their intention comes from a place of love, all have been motivated by love even when there’s extreme emotional pain.
Many opt to stay safe and in the emotional place they know so very well, and that’s ok. Others believe it’s all mumbo jumbo and pointless and some the pain of self-exploration and development is so confronting and traumatising that they choose to never take the journey. And this is ok.
It is a deeply personal choice and opinion to take the journey or not.
For those who have it is life changing, I am not just saying this as a coach but as a person who has taken the journey herself and is still on the journey. There are times in my journey I wanted to bail out, there are times when I have reflected on self, my thinking and events in my life that were so painful to revisit yet the lessons and the empowerment from allowing myself to go through and seek to change has been so worth it.
Taking the journey of self-discovery, exploration and development is the hardest, painful, uncomfortable yet incredible, empowering self-loving journey’s I have ever taken, it has turned into an adventure. I don’t know what I am going to find, see, acknowledge, embrace or feel deep gratitude for next.
What I know to be true is that no matter the adventure an individual has taken and no matter how much pain or challenge they encountered they also encounter growth, change, and ultimately love, self-love. They learn to fully love all aspects of themselves, they learn to breakthrough old and limiting thinking, they break old dysfunctional patterns that no longer serve them in the life they want to create for themselves. They learn that no matter what they have gone through they have gotten to this point in their lives and are succeeding (whatever that means or looks like to them). They get to see and reach the potential that was always within them and be reunited with incredible internal resources that they had forgotten they had or had lost sight of along the way. They get to be the whole loveable them that they were born to be, dropping any roles that they had picked up along the way that were never theirs to begin with. They get to find their voice, discover their boundaries, and stand in their own truth of who they are not what they think others want them to be. They discover they can create the life that they have always wanted without guild or shame and celebrate themselves for ALL of who they are and so much more.
Deciding to take the journey, challenge your thinking and what you know is open to everyone, there is no prerequisites and it’s not exclusive. It is simply a choice. There are so many inexpensive resources out there that can help start your journey, books, audiobooks, podcasts, social media, youtube, the internet and local libraries, anyone can start the journey and you get to choose how fast, how wide, and how deep you take your personal journey. There are coaches like me that can assist you and fast track your growth in a safe supportive manner and space, this is usually a lager and ongoing investment than buying a book or listening to a podcast.
The gift in the journey is love, self-love and so much more comes from that and can be achieved from that, I have been honoured and trusted to hold many in a safe place as they gave themselves the gift of being who they were born to be. I could make comment to the gift you give others as a ripple effect of to stepping out on the journey, however, this is a wonderful by-product yet the love and joy you find within is even more than that.
Give yourself the gift of love, take a small step on the journey, dip your toe in the water, expand the love and understanding you have for yourself. You are worth it.
Lesley-Anne Banton
Leadership and Parenting Disruptor & Coach THE PARENT WHISPERER www.theparentwhisperer.com.au 0432 848 418
Loving that Summer Coffee!
COMMERCIAL COFFEE MACHINE
By Ivana Smith
February is a lovely time but is often the hottest time of the year. Think of lazy days by the pool, on the beach, in the backyard playing cricket. What better way to relish daylight savings than making the most of all that sunshine – lay back on the deck, watch the tennis on TV in comfort, grab some friends and go for a leisurely walk…the choices are endless!
All these activities can enjoyed with a coffee in hand. Coffee is an ideal drink as the caffeine in it gives a boost to your energy levels, especially welcome when you just want to flake on the couch because of the heat. But you don’t have to reach for a cappuccino or a short black. The fact is that, for those long summer days, coffee doesn’t be served to be hot.
A refreshing summer drink
Coffee is just as versatile a drink when cold. Try a short black with ice blocks and no sugar. For something a little more decadent, make an amazing affogato; the Italian word means ‘drowned’, which is what happens to the ball of vanilla ice cream when fragrant hot coffee is poured over it. To spice it up a bit, why not add cinnamon on top, or almond flakes – and some amaretto or Fra Angelico liquor as well will turn it into a classy, cold, refreshing dessert.
There is also the perennial favourite, the iced coffee. This also comes in a number of variations: with milk and ice, with lashings of cream, without cream but oodles of ice cream, or the lot!
A newcomer on the culinary scene is the ‘cold brew’. For this, you will a coffee grinder. Grind the beans coarsely (ground too finely and the coffee tastes bitter). Put the grounds at the bottom of a large jug and add 8 times (compared to the coffee) the amount of cold filtered water. Stir and leave 12 to 24 hours. The next day, filter the brew by pouring through a finely meshed sieve. Dilute with more water, or try coconut milk for a chocolate-like flavour. You could experiment with different kinds of milk such as almond or macadamia. The concentrate will keep in your fridge for a week or so. Now you can really be creative! Be bold and add tonic or sparkling water for a fizzy revitaliser at 3 pm. Combine cold brew with gin to transform your usual gin and tonic. Create a coffee negroni by mixing cold brew, Campari and sweet vermouth; add a garnish of orange peel for a special ‘drink de resistance’. With a jug of cold brew, you can really enliven things up for summer entertaining.
Keep healthy while enjoying your drink
With all that coffee, you might be concerned about possible effects on your health. For instance, coffee is a diuretic drink, which means that it is inclined to cause fluid loss by making you urinate more often. (Tea is another diuretic.) So, if you drink coffee because you’re thirsty, this is actually counterproductive! However, a number of studies have disproved the notion that coffee is dehydrating. Like most beverages and foods, moderation is the key. No more than two cups of coffee a day is fine as part of a healthy lifestyle.
Compared to soft drinks, coffee is a much better bet as it has far fewer calories, and more so if you drink it without milk or sugar. How does it stack up against sports drinks? Sports drinks were designed for people doing heavy, sweat-producing activities but many people buy them as the healthiest-looking option in the milk bar fridge. If you are drinking them but not while exercising massively, you will be consuming more sugar than perhaps you realise. Although coffee has more caffeine than sports drinks, the latter is considered more harmful as it contains more sugar than your average sweetened cup of coffee.
So, the good news is, drink coffee throughout summer as a refreshing pickme-up but have fun trying all its delicious variations! Now, what better excuse to get fit – go for a long summer walk, and there could be a coffee shop at the end…!
For advice on coffee and how to supply it to office spaces and clubs, contact Ivana at ivana.smith@xpressodelight. com.au.
Ivana Smith
Commercial Coffee Machine Xpresso Delight 0418 393 085 www.xdcoffee.com.au
Deceptive and Misleading Conduct
SOLICITOR
By David Heasley
Everybody has at least once in their lives bought or looked at buying a product, that upon examination did not quite meet the description, or was different in some way from that advertised. With luck the discrepancies were noticed before the purchase was finalised, but it is irritating to the customer and more importantly the behaviour in question can lead to severe penalties if it comes to the attention of (or is brought to the attention of) the relevant regulator, as can be done by any consumer.
All businesses need to be very careful that any advertising material, or statements made by staff in the course of trade are not deceptive or misleading in content. Get this wrong and they risk breaching the Australian Consumer Law.
The Australian Consumer Law makes it illegal for a business to engage in conduct that misleads or deceives or is likely to mislead or deceive consumers or other businesses. Importantly, this law applies even if they did not intend to mislead or deceive anyone or no one has suffered any loss or damage as a result of the business conduct in question.
As an example, a customer is deciding whether to buy a new camera and seeks advice from staff in the electronics section of a department store. The customer mentions the brand of camera they have looked at, and buys the camera on the advice of the retailers staff. However, the camera purchased is in fact not capable of taking the type or quality of pictures required.
The retail assistant knew the camera in question was not capable (of taking the required type and quality of pictures) yet did not advise the customer about this. Their conduct might be considered misleading by silence or omission as they did not disclose information that would have significantly changed the customer’s mind about buying the product.
In another (real life) example, an internet service provider offered ‘unlimited’ download plans for users who signed up to their services. However, in reality the plans purchased were subject to major limitations including speed reductions when a certain amount of data was downloaded. The internet service provider was taken to court, where the court found that the use of the term ‘unlimited’ in relation to plans that were subject to major limitations that were not disclosed, was misleading and deceptive conduct. In this case the internet service provider was ordered to pay a penalty of $3.6 million dollars.
In order to avoid this type of conduct and possible penalties, it is important to ensure that that businesses and their staff: • Know what products (or services) can and just as importantly, cannot do; • Check advertising material for accuracy (as regards descriptions of good or services, limitations and price); • Educate themselves and their staff on the obligations under the Australian
Consumer Law (there is material available on-line); and • Do not use deceptive or misleading statements when selling products or services either in person or via advertising.
The list above is not meant to be comprehensive and is a guide. If you are unsure of your obligations in regards to the Australian Consumer Law you should seek advice from a commercial lawyer who has knowledge of the issues involved and of the relevant legislation. It may be a cheap investment.
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4 Tips on Best Writing Practice
ACCREDITED EDITOR
By Susan Pierotti
Are you a business owner wanting to launch a new product or service in 2021? Do you need new customers to make for Covid losses? Do your regular customers even know you’re still in business? Now, more than ever, is the time for marketing yourself!
Part of your marketing will be visual – websites, brochures, Facebook and Instagram images. These can convey a complex message in a simple photo; after all, a picture tells a thousand words. But you still need the words. So how do you increase your online presence and influence through written content?
Here are 4 tips to improve your writing so it has impact.
1 Find your voice
Did you know that everyone’s voice is unique? The sound waves that are generated when we speak are so individual that they can be used as evidence in a lawsuit. It is the same when you write. You can copy someone else’s style to a certain extent, but when you write from your soul, it sounds like you. That lets people into your mind and heart, which gives you influence. It makes your writing more powerful, giving it impact.
Remember why you went into business. People buy from people they relate to, and if they know your ‘why’, they will connect with you better. It will also filter out those who possibly would not become your most ideal customers.
2 Edit, edit, edit!
Hands up who never makes a typing error. Hands up those of you who are perfect spellers and have a grammatical grasp of the English language that would daunt an Oxford professor. We are human and therefore make mistakes.
However, the human brain is a marvellous organ. It can autocorrect whatever we read. Little things like writing ‘from’ instead of ‘form’ to gigantic errors can be seen with the eye but reinterpreted by our brains.
Curiously, the reader’s eye will pick up those things that our brain autocorrects. It won’t be a conscious noticing, but more of a lack of concentration while reading and disengagement with what you’ve written. The last thing you want is for potential customers to stop reading what you’ve written! There is even a direct correlation between spelling mistakes and downward sales trends, so we need not only to review our own work multiple times but to let others cast an eye over it as well, preferably a trained editor.
3 Avoid clichés and jargon
‘At the end of the day, we all need to drill down to the bottom line so this company can reach for the stars.’
This says nothing and is a waste of space. When writing something, it’s tempting to copy what others have written, especially if it resonates with you. If a phrase rolls off your tongue a little too easily, try writing it a different way. ‘Whatever it takes’, ‘in the fullness of time’ – avoid clichés! customers be able to understand what you’ve written? Ask someone not in your workplace to cast a quick eye over what you’ve written to see if it makes sense to them. Plain English, short sentences, and in your own style is also the best way to get the best results.
4 Hire a content writer
There’s no shame in hiring someone to do your content writing for you. No one can do every single task well in any one business, and the most successful business owners are ones who have learnt to delegate.
Outsourcing one’s content writing is common practice nowadays and there are many copywriters and marketing specialists who can assist you with this. It is an expense worth considering as it will free up your time for more business activities that you’re good at and prefer to do.
Confused about how to get good content for your business? Contact susan@creativetext.com.au for a free ¼ chat and further assistance.
Susan Pierotti
Another trap is to use industry jargon. That may sound impressive to other business owners in your particular line of work, but that’s not who you’re writing for. Will your
Accredited Editor Creative Text Solutions 0437 127 159 www.creativetext.com.au
Why Dealing with a broker is in your Best Interest
MORTGAGE BROKERING
By Reece Droscher
For anyone who is looking to obtain Home Loan finance for a new purchase, refinance their existing loan or complete some renovations to their home, there is a choice to be made on who you engage to arrange the loan for you. Do you go directly to the financial institution to obtain the finance, or do you engage a broker to arrange this for you? Since the Royal Commission into the banking sector was completed a number of recommendations have been implemented by the government regulators to address misconduct within the banking and financial services industry. Once such recommendation was implemented on January 1st this year – Best Interest Duty.
BEST INTEREST DUTY ONLY APPLIES TO MORTGAGE BROKERS, NOT TO BANKS
Best Interest Duty (BID) creates the obligation for mortgage brokers to act in the best interests of consumers and, where there is a conflict, to prioritise consumers’ interests when providing credit assistance. The majority of mortgage brokers have always acted in their client’s best interest when providing advice, the introduction of BID now legislates it. However, what has now been created is a clear difference in obligation when dealing with a broker as opposed to dealing directly with your Bank. Mortgage Brokers must act
in their client’s best interest, the Bank does not have this obligation.
This is because Mortgage Brokers have access to products and services from many providers, so understanding their client’s requirements and objectives in seeking advice is the basis for making a recommendation on a Home Loan. A Bank lender has one suite of products to offer, so they don’t have the same obligations as a broker and can act in their employer’s interests, not the interests of the customer.
It is another major reason to deal with a Mortgage Broker rather than going to a Bank directly. Mortgage Brokers have a
legal obligation to act in their client’s
best interests, providing them with comfort that the recommendation the broker has made is the most suitable to meet their requirements and objectives.
HOW DOES A BROKER APPLY BID WHEN RECOMMENDING A PRODUCT
There are a number of factors which may determine what product a broker will recommend to their clients as the most suitable to meet their particular circumstances, while acting in their best interests.
1. Price – this will always be a major factor in recommending a product to a client, however is not the only factor. Price includes the interest rate, any Establishment and on-going fees, and mortgage insurance costs if applicable. Recommending the cheapest product on the market may not be in the clients best interest as their circumstances may not meet the policy of the lender. Every client’s requirements are different.
2. Credit Policy – does the proposed transaction meet the policy of the lender? Lenders all have different criteria when considering a finance application, so the broker needs to be aware of each policy to ensure they do not recommend an unsuitable loan.
3. Response Times – is the transaction time-sensitive? Will the lender be able to approve and fund the loan in the time required by the client?
This needs to be considered to ensure the broker acts in the clients best interest.
4. Product Features – does the product have the features the client may require? Features like 100% offset, a secure rate, redraw. client and broker must be satisfied in the client’s favour. So when considering the best product to recommend the BID legislation states”the conflict priority rule means that you must not recommend a product or service of a related party that would create extra revenue for yourself, your credit licensee or another related party, unless doing so would also be in the consumer’s best interests”. In practice, if a broker has two products that would benefit their client, however lender A has an annual fee and offers the broker a higher commission payment, the broker must recommend lender B, even though lender A is still a great fit for their client. This satisfies the conflict priority rule.
Brokers must exercise judgement in the relevance of these factors when making reference to the client’s individual circumstances. So in satisfying BID the client can rest assured that their broker has spent a significant amount of time ensuring the product recommended is the most suitable and best to fit their requirements and objectives.
As a mortgage broker we act in your best interests. A lender has no obligation to do so. At SHL Finance we have always acted in our clients’ best interest and would love the opportunity to help you too. Please call Reece Droscher on 0478 021 757 should you want to discuss your finance requirements.
5. Conflict of Priority Rule – any conflicts of interest between the
Reece Droscher
Managing Director of SHL Finance Pty Ltd reece@shlfinance.com.au www.shlfinance.com.au
Latest snapshot of the coronavirus impact: Wednesday (Australian Associated Press)
LATEST COVID-19 DEVELOPMENTS:
* Another worker and former guest of Melbourne’s Holiday Inn quarantine hotel have tested positive for COVID-19, bringing the total number of cases linked to the outbreak to eight. Authorities believe a nebuliser medical device in the room of an infected family could be to blame for the cluster.
* The outbreak has forced the Holiday Inn’s closure, while plans to increase Victoria’s weekly cap on international arrivals from 1120 to 1310 from next week have been put on hold.
* South Australia will reimpose its hard border for Greater Melbourne residents from Thursday.
* The Northern Territory has now listed four Melbourne suburbs as COVID-19 hotspots – Sunbury, Maidstone, Sunshine and Taylors Lakes. * NSW will revert to the “two square metre” rule for venues from Friday and will remove the obligation to wear masks except on public transport or in taxi services. Only gyms will maintain the current “four square metre” rule.
* NSW’s chief health officer Kerry Chant says fears have eased about a returned traveller who tested positive to COVID-19 over the weekend, two days after completing their 14-day stint in hotel quarantine. Dr Chant said the person had remained asymptomatic and was “pretty non-infectious” during their time in the community.
* Western Australia will from next week ban hotel quarantine security guards and other staff from working second jobs.
* It could take six years for the world to be vaccinated against COVID-19 so jabs must be shared with developing countries, infectious diseases physician Sanjaya Senanayake told the National Press Club.
AUSTRALIAN CORONAVIRUS NUMBERS:
* Four new locally-acquired cases were reported in Australia on Wednesday, all in Victoria. Two were uncovered on Tuesday and form part of Wednesday’s tally, and the other two will form part of Thursday’s tally.
* The national death toll is 909: Victoria 820, NSW 56, Tasmania 13, WA 9, Queensland 6, SA 4, ACT 3. (Two Queensland residents who died in NSW have been included in the official tolls of both states).
GLOBAL CORONAVIRUS NUMBERS:
* Cases: at least 106,902,000.
* Deaths: at least 2,341,000.
* Recovered: at least 59,754,000.
Data current as of 1730 AEDT on February 10, taking in federal and state/territory government updates, Johns Hopkins Coronavirus Resource Centre figures.
Which jobs are tipped to prosper in 2021?
By Nick Gibbs (Australian Associated Press)
Workers looking for job security in 2021 should consider Australia’s “largest and fastest growing” industry, broadly known as the care economy.
As well as frontline healthcare, fields such as social work, counselling and child and aged care are tipped to be in demand this year, LinkedIn’s Jobs on the Rise report says.
The special edition of the emerging jobs report compares the roles experiencing the highest growth between April and October 2020 against the same period the year before.
With governments favouring stimulus measures centred on infrastructure, the report predicts careers in construction will have a solid foundation.
Site managers, estimators and heavy equipment operators are listed as among those employees likely to be sought after.
The report notes Australia’s property sector remained “remarkably upbeat” during last year’s downturn and rates mortgage brokers and real estate agents as having good prospects.
While traditional open homes were off the table during lockdowns, the disconnection from traditional offices means work no longer dictates where people live.
It’s still unclear which of the changes that made work possible during the pandemic will be permanent, and such uncertainty means there is demand for help by individuals making big life choices.
Qualifications likely to be required in the future include business and wellness coaching, personal development and mentoring.
E-commerce, social media management, cyber security and web development are also likely to remain good bets for career longevity.
The report recommends acquiring transferable skills desirable across a range of growth areas. or four-year degrees, meaning opportunities are open to a wide variety of backgrounds,” the report states.
Hospitality, tourism and the education of international students suffered “sectorwide” impact as businesses responded to the chief demand of managing the pandemic.
While there will always be demand for food and drink, when international travel will resume is among the biggest unknowns.
Of LinkedIn members surveyed during the pandemic (April – August), around 60 per cent of respondents were passive or closed to new jobs.
This figure has decreased since early September and is now at about half of the people surveyed, according to LinkedIn’s workforce confidence index.
Those most confident about their ability to progress are employed in business development and administration roles.
Human resources, finance, operations and media and communications employees are the least confident they’ll be making career progression this year, with little movement from April.
2020 TAX UPDATES
Temporary Full Expensing of Depreciation Assets
The majority of businesses are eligible to claim an outright deduction for the cost and installation of new assets. To qualify for full expensing, the asset must be first held and first used, or installed ready for use, between 7:30pm AEDT 6 October 2020 and 30 June 2022. Unlike prior rules on instant asset write-offs, no limit applies to the cost of an asset under the full expensing rules. That is, an asset of any value may be fully deducted in the appropriate income year. For a business to qualify for the outright deduction, the entity must have an aggregated turnover of less than $5 billion. Since the legislation has been enacted, further amendments will be made to the laws to allow businesses a choice in using full expensing or not. In certain situations, it may be beneficial to spread out tax deductions over multiple years. Also, certain large entities will have separate eligibility criteria.
Announcement (6-Oct-2020) Consultation (6-Oct-2020) Intoduced (7-Oct-2020) Passed (9-Oct-2020) Royal Assent (14-Oct-2020 Date of effect (6-Oct-2020)
Businesses with less than $500 million in aggregated turnover can accelerate depreciation deductions for new assets in the 2019-20 and 2020-21 income years. Accelerated depreciation rules for these entities have subsequently been superseded by new ‘temporary full expensing’ legislation in November 2020. However, the option to use accelerated depreciation continues. Accelerated depreciation is available for assets in the first year the asset would ordinarily claim a deduction. In the first year a deduction is allowable for 50% of the installed cost of the asset plus regular depreciation rates for the remainder. The Backing Business Investment measures are in concert with the extension of the instant asset write-off. However, it may only be relevant for some clients until 6 October 2020, when the full expensing regime commenced. Small businesses using pooling can use a 57.5% write-off for assets purchased after 12 March 2020 that do not qualify for immediate write-off in the 2019-20 income year. Small business entities are also covered by the new full expensing legislation.
Announced: 11-Mar-2020 Updated: 7-Dec-2020
Instant Asset Write-off - COVID-19 Tax Stimulus Package
The instant asset write-off will be available for the majority of businesses during some part of the 201920 and 2020-21 income years. For purchases between 12 March 2020 and 6 October 2020, businesses under $500 million in turnover can get an immediate tax deduction for assets costing less than $150,000. In the purchasing time frame, the asset needs to be first used or installed ready for use by 30 June 2021. In the legislation, the update also extends to the low value pool for the 2019-20 income year. An entity with a small business pool balance of less than $150,000 will be able to write off the entire balance (up from $30,000). For the 2020/21 income year, general small business depreciation pools may be written off in full in accordance with the full expensing rules. The government stimulus package, announced to prevent a large national economic downturn, includes this boost to instant asset write-offs. However, the stimulus will not be received until lodgment of the tax return. Subsequent legislation introduced into parliament will allow businesses an option of using the instant asset write-offs or to depreciate new assets over their effective life.
Announced: 11-Mar-2020 Updated: 7-Dec-2020
Payment Times Reporting Scheme
The Payment times reporting scheme is commencing 1 January 2021, providing small businesses with greater understanding of the corporate treasury management processes within large business. In the publicly available report, information about how quickly a big business pays a small business for goods and services is delivered. This can provide a small business a snapshot regarding how quickly they could expect payment for work with a big business, which may help decision making. Small businesses also will have the option of opting out from the reporting scheme. This will mean that their identify as a small business will remain unknown to a big business throughout the relationship.
Announcement (10-Oct-2020) Intoduced (13-May-2020) Passed (6-Oct-2020) Royal Assent (14-Oct-2020 Date of effect (1-Jan-2021)
2020 TAX UPDATES
Corporate Residency Test to Change for Foreign Companies
A ‘significant economic connection to Australia’ test is a rule proposed to be added to Australian tax residency for foreign incorporated companies. Announced in the 2020 federal budget, this measure draws on a key recommendation of a Board of Taxation report into corporate residency. The new test will be applied to foreign incorporated companies prior to determining the central management and control test. As part of the announcement, foreign incorporated companies will be required to pass both tests to have their worldwide income taxed in Australia.
Announcement (6-Oct-2020) Consultation (6-Oct-2020) Introduced Passed Royal Assent Date of effect
Small Business Entity Threshold to Increase
Many more businesses will be eligible to access income tax concessions with the passing of legislation which extends thresholds currently reserved for small businesses. These concessions include:
• immediate deduction of certain start-up and prepaid expenses • exemption from FBT for car parking and work-related portable devices provided to employees • access to simplified trading stock rules • access to PAYG instalments based on GDP-adjusted notional tax • settle excise and excise-equivalent customs duties monthly, and • businesses will have a two-year amendment period to apply to income tax assessments for income years starting from 1 July 2021, excluding entities that have significant international tax dealings or particularly complex affairs.
A business will be eligible to access these concessions if their aggregated turnover is less than $50 million. Mostly, the change in aggregated turnover threshold will take place from 1 July 2021, with different dates to line up with the FBT year. Also, the eligible entity can access the simplified accounting method determination for GST purposes from 1 July 2021.
WA COVID-19 Stimulus Package
A range of stimulus measures are being implemented in Western Australia to assist business with cash flow issues resulting from COVID-19. In particular, certain businesses in WA will receive grants, while others will be allowed a waiver of payroll tax for four months. A payroll tax exemption has been extended for new apprentices and trainees in the 2020-21 income year. Also, the future uplift of payroll tax thresholds will be brought forward to assist some businesses with their future obligations.
ACT COVID-19 Stimulus Package
Starting in March 2020, the ACT government has announced a series of measures which provide waivers or deferrals of payroll tax. These waivers and deferrals are an attempt to combat the economic fallout from the COVID-19 pandemic. Waivers of ACT payroll tax are available for businesses in hospitality, creative arts and entertainment industries. Deferrals are available for other small and medium-sized businesses. Initially lasting 6 months, some of these assistance measures have been extended into 2021.
Announcement (6-Oct-2020) Consultation Introduced (7-Oct-2020) Passed (9-Oct-2020) Royal Assent (14-Oct-2020) Date of effect
Announcement: 17-Mar-2020 Updated: 23-Dec-2020
Announcement: 22-Mar-2020 Updated: 23-Dec-2020
FBT Exemption for Retraining and Reskilling Proposed
An employer may receive a future exemption from fringe benefits tax when providing employees with retraining or reskilling opportunities. This 2020 federal budget announcement will take affect from 2 October 2020, subject to the passing of legislation. The government has also released a consultation paper with respect to possible changes to the self-education deduction section for individual taxpayers. These measures may provide a tax incentive for employees to change careers, in particular if they are about to be made redundant.
Announcement (6-Oct-2020) Consultation (22-Jan-2021) Introduced Passed Royal Assent Date of effect
