Questions to ask before applying for a bank loan
Posted on October 2, 2015 by admin
The majority of businesses, whether they are only just starting up or have been in the market for a number of years, will need a bank loan at one time or another. However, actually applying for a bank loan requires more than just filling out the paperwork. Here are some questions business owners should ask themselves before beginning their bank loan application: Is it probable that I will qualify for the loan?If you believe that your business won’t qualify for a bank loan, then you will only hurt your credit rating if you apply for a loan you won’t get. Being rejected for a loan can also make it more difficult for a business to borrow in the future. Will the loan help the business grow?Instead of using the loan for aspects like routine operating expenses that don’t generate much revenue, owners should consider putting the borrowed money into parts of the business that will generate more revenue and help reduce future borrowing needs. Are my personal finances in order?Until a business reaches a substantial size, many banks will rely heavily on the owner’s personal financial statements and credit scores to determine the business’s creditworthiness. This may involve bankers looking […]
Making the most of business meetings
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It is safe to assume that every business, no matter how big or small, will conduct meetings as a way of getting things done around the office. When organised properly, business meetings can be incredibly effective and efficient. However, more often than not, many meetings can be a waste of time for both the employer and employees if the meeting lacks focus, direction, or takes place when attendees are unprepared. Luckily, there are solutions available to counteract problems regarding these unproductive meetings. Employers simply need to be open to changing the way meetings are conducted in their business. Here are a few ideas to get that ball rolling: Set the agendaMeetings need purpose. Therefore, any issues that need discussing should be listed as items on the agenda. Itemising each issue also gives everyone a firm guideline of what is expected to be discussed. While sticking to the agenda may be boring for some, at least employers will be able to rest easy afterward knowing that the issues worrying them have been addressed. Know who is presentHaving an attendance sheet for everyone to sign upon entering the meeting can help set the scene that the meeting is serious. If anyone has […]
SMSFs: Getting SuperStream right
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Although the new SuperStream standard for superannuation payments can provide SMSF trustees with a number of benefits, around five per cent of SMSFs fail to comply with the SuperStream requirements. Under the new SuperStream system, a non-related employer must send superannuation contributions to an SMSF electronically, using an electronic service address (ESA). For this to happen, an SMSF must first be registered with a messaging provider to obtain an ESA. One an SMSF has been registered, the messaging provider will link the SMSF to an ESA. The employer cannot send SuperStream contributions electronically to the SMSF until this is done. It is important that SMSF trustees check with the service provider that their ESA is active and is linked to their SMSF. If the ESA is inactive, the super contributions submitted by the employer will be rejected. SMSF trustees must also ensure that their employer has their Australian Business Number and bank account details. Employers who do not have this mandatory information may accidentally direct the employee’s super contributions to a default super fund, instead of to the employee’s SMSF. The new SuperStream system helps ensure that employer contributions are paid in a consistent, timely and efficient manner to member […]
Tax implications for overseas workers
Posted on September 30, 2015 by admin
Australians who work overseas for an extended period of time should be wary of the tax implications that can arise from taking up such offshore opportunities. The tax residency status of an Australian who move overseas for employment plays a key role in determining how much tax that person is required to pay in Australia. Individuals who are “residents” of Australia for Australian tax purposes are taxed on both their Australian sourced and worldwide income. Individuals who are classified as “non-residents” are taxed only on their Australian-sourced income. Non-residential individuals are also ineligible for the $18,200 tax-free threshold, and therefore, all of their assessable income is taxed from the very first dollar. Foreign employment income is any income that an individual receives from working outside Australia. It includes any salary, wages, commissions, bonuses or allowances. For Australian tax residents, this foreign employment income is taxable in Australia and must be included in an Australian tax return. However, individuals who pay tax on that employment income overseas can claim the foreign tax as ‘credit’ against their Australian tax obligations. To make this claim, an individual must pay (or be believed to have paid) the foreign income tax, and the foreign income […]
Salary sacrificing
Posted on September 27, 2015 by admin
While many employees can sacrifice salary in exchange for most work-related purchases, it is essential that employers are aware of FBT when working out the expense that will replace the income in a salary sacrifice arrangement. Employees should also be wary that if their employer has to pay FBT, that cost will most likely be passed on to them under a salary sacrifice arrangement. If an employee needs to purchase equipment for their work, they can work out a salary sacrifice with their boss to buy the equipment and reduce their personal tax bill if: the piece of equipment is considered to be ‘a tool of trade’ the piece of equipment is used primarily for work purposes the piece of equipment is the only tool received during the year with that function, and; if both the employee and employer have agreed to undertake the salary sacrifice arrangement beforehand. There are particular types of benefits an employer can provide to their employee that may trigger an FBT liability if provided under a salary sacrifice arrangement. These include cars, property and expense payments. However, there are certain fringe benefits that are specifically exempt from FBT under the law. These work-related FBT exemptions […]