Prior to the election, the Australian Government announced a relatively small raft of legislative proposals as part of the Federal Budget, and will look to implement these when parliament resumes later in the year.
The most popular announcements were the proposed tax cuts for individuals and the extension of the instant asset write-off for businesses. The later change here (which has already been legislated) was twofold, with assets costing $30,000 or less being instantly deducted and the concession being extended to businesses earning up to $50 million. This concession will run to 30 June 2020, representing an opportunity to bring forward asset acquisitions.
Less popular will be the introduction of Single Touch Payroll (STP) from 1 July 2019, which will require all employers to digitally report their employees’ pay details to the ATO each pay run. While the ATO is looking to provide some affordable options, this change represents a perfect opportunity to consider updating your accounting software to take advantage of the greater efficiencies available through cloudbased technology.
As we approach 30 June, it’s also a perfect time for business owners to review their finances, and consider what worked well and what could have been improved.
We recommend that business owners, in conjunction with their accountant, start planning for the year ahead and create forecasts and budgets for their business.
When coupled with real-time reporting, having a budget allows you to identify what is and isn’t working and adapt quickly. This can allow you to make changes such as updating your pricing strategy, delaying purchases to preserve cash, or even just helping you pass the ‘sleep at night test’ by giving you confidence that everything is on track.
We wish you continued business success for the new financial year and welcome you to contact our office should you require any assistance.
DFK Hirn Newey | 1143 Sandgate Road, Nundah | 3266 1488 | www.dfkhn.com.au