Question:
October 2011 - A day in the tax life of... A modern day soap (tax) opera
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
… previously on tax life …
Sam had been successful in her bid to win the big order but that was now a couple of months ago and times were a lot leaner now.
Uncertainty
The End is Near screamed the newspaper headline. There had been a catastrophic run of losses on world share markets and it seemed that the whole world was jittery. The global crisis was now two years old and Sam had bravely ventured into her new business right slap bang in the middle of it. Despite the difficulties with getting bank finance the business had begun well with a gradual build up in the client base.
It seemed different at the moment though. Sam had noticed a decline in demand. People were being that much more cautious. Buying decisions were being deferred and in some cases cancelled. Consumers and businesses alike were concerned to save whatever money they could.
Sam was starting to get a little worried about her business as revenues in the last two months had declined and the order book wasn’t anywhere near where it had been a six months ago.
What were the right steps to take?
Should she continue to invest in growing the business or was it now time to cut back on costs.T
here were still plenty of things that Sam knew that she could do to bring in some work... it wasn’t big jobs; rather a series of smaller ones. It was tougher to get the revenue but she needed to capitalise on every opportunity.
Sam had recently implemented a customer relationship management (CRM) package that was already showing its worth. She could capture all her business’ customer relationships, leads, opportunities and make sure that were followed through to conclusion. Even after only a fewmonths she estimated that it had helped her to bring in about 15% of her current work. Work that might haveotherwise slipped through the cracks between her fingers.
Worries still got to her sometimes but she knew that worrying didn’t actually achieve anything. She simply needed to follow up on each opportunity and at the same time watch her expenses like a hawk. Continue to do her marketing but only pursue those things that quickly produced new opportunities and leads.
Wisely, her father had once said to her in a similar circumstance that it was time to batten down the hatches and wait out the storm. Use this opportunity to learn everything that there is to know about your business then later on, when the storm clears, you will be able to use that knowledge to really leverage the benefits of the recovery... the recovery that does always come.…
Stay tuned …
