皮特马丁会计师事务所 Pitt Martin Group是一家提供税务，会计，生意咨询, 自管养老金及审计的贷款等综合性服务的经澳洲会计师公会认证的注册会计师事务所。我们每年会花上几百个小时去研究新的税法，以保证我们的客户可以最大化合理避税。我们的中文联系方式是 Robert Liu +61292213345 或邮件 info@pittmartingroup.com.au。皮特马丁会计师事务所Pitt Martin Group坐落在交通便利的悉尼市市中心，是一家拥有可以说中文合伙人的会计师事务所。我们的荣誉包括2018年CPA新州首席优秀奖， 2020年澳大利亚小生意年度冠军入围奖, 2021年澳洲知名媒体《每日会计师》年度最佳会计师事务所冠军入围奖，2022年最佳会计师事务所新人入围奖和2023香港澳大利亚商业协会最佳积极生意入围奖。
皮特马丁会计师事务所 Pitt Martin Group资质包括超过十五年的从业经验，澳大利亚注册会计师协会（CPA）执业认证会员，澳大利亚税务注册代理，新州、维州和西澳律师协会信托账户 (Trust Account) 认证审计师，澳大利亚金融贷款经纪人协会（FBAA）执业认证会员，澳大利亚证券及投资委员会注册代理，XERO, QUICKBOOKS, MYOB等会计软件授权单位及认证顾问。
As of 1 July 2024, personal income tax cuts are now active. Additionally, the superannuation guarantee (SG) rate has increased by 0.5% to 11.5%. Employers need to update their payroll systems, including salary sacrifice agreements, to accommodate these changes. PAYG withholding will also be affected.
The ATO has reminded employers to ensure they are meeting their super guarantee obligations. The definition of an employee for SG purposes is broad, including temporary residents, backpackers, certain company directors, family members working in the business, and some contractors. Make sure your classifications are accurate.
Employers must verify that the correct fund details and tax file numbers are provided to the super fund for their employees. SG payments must be made into the employee’s fund by the quarterly due date, with the next payments due by 28 July. Missing the deadline incurs the super guarantee charge (SGC), which includes the outstanding SG, 10% annual interest from the start of the quarter, and an administration fee. SGC amounts are not tax-deductible.
Wage Increases
From 1 July 2024, the national minimum wage has increased by 3.75% to $24.10 per hour, or $915.90 per week. This increase applies from the first full pay period on or after 1 July 2024. Typically, there is no direct link between minimum wage increases and inflation.
Private sector annual wage growth slightly decreased to 4.1% in the March quarter of 2024 from 4.2% in December 2023, indicating that wage growth may be stabilizing.
Interest Rates and Cost of Living
RBA Governor Michelle Bullock has highlighted that inflation is the main cause of cost of living pressures, not interest rates. Interest rates are used by the RBA to control inflation. Since inflation is easing more slowly than expected, the RBA may make further adjustments. Inflation dropped from 7.8% in December 2022 to 3.6% in the March quarter but rose again to 4% in May, affecting hopes for stable interest rates.
Business Confidence
The latest NAB business survey shows a decline in business confidence, which fell into negative territory in May as conditions continued to soften. Businesses have faced eight consecutive months of declining forward orders, leading to a cautious outlook. GDP saw marginal growth in the March quarter, while per capita consumption continued to decline. However, the labor market remains strong, with unemployment at 4% in May.
Treasury forecasts a slight improvement in economic growth (GDP) to 2% in 2024-25, a modest but credible outlook.
Migration and Labor
Post-pandemic, Australia saw a surge in migration with the return of international students, working holiday makers, and temporary skilled labor to address shortages. In the year ending 30 June 2023, overseas migration added a net gain of 518,000 people to Australia’s population, the highest on record.
The 2024-25 Federal Budget estimates a drop in net migration to 260,000. While migration pressures on housing have been well-publicized, the positive impact on labor supply was significant. Post-COVID, Australia faced severe labor shortages that hindered supply chain recovery.
From 1 January 2025, student visa numbers will be capped. Student visa grants were already down 34% in March 2024 compared to the same period in 2023. The government’s focus is shifting towards skilled migration, with an increase of 7,175 employer-sponsored places, although skilled independent visas will decrease by 13,475. The minimum salary requirement for sponsoring an employee (Temporary Skilled Migration Income Threshold) will rise to $73,150 from 1 July 2024.
Strategic Business Management
Businesses often fail because they don’t understand or monitor their operations effectively. Managers need to stay on top of their numbers to identify and address issues early. Profitability issues can weaken a business, but cash flow problems can be fatal. It’s crucial to plan, track, and measure cash flow, including managing debtor collections and inventory and maintaining a rolling three-month cash flow position to provide early warnings of potential problems.
Effective business management also involves overseeing cash flows, operating budgets, cost control, and debt management. By maintaining control over these areas, businesses can reduce their risk exposure.
Small businesses often absorb increasing costs. Raising prices during challenging times is not a betrayal; it’s a necessity. If the cost of doing business rises, this should be reflected in pricing unless the business can afford to make less for the same effort or is in a highly price-sensitive industry following the lead of larger competitors.
Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.
Pitt Martin Groupqualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.
This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.
当澳洲福利署(Centrelink)或退伍军人事务部(Department of Veterans Affairs)计算付款时，他们不是根据您的投资（如银行账户、定期存款、股票和管理基金）的实际收入，而是根据这些投资的总价值假定一个固定的回报率。政府计划将这些固定利率（如下所示）保持不变，直到2025年7月1日。
皮特马丁会计师事务所 Pitt Martin Group是一家提供税务，会计，生意咨询, 自管养老金及审计的贷款等综合性服务的经澳洲会计师公会认证的注册会计师事务所。我们每年会花上几百个小时去研究新的税法，以保证我们的客户可以最大化合理避税。我们的中文联系方式是 Robert Liu +61292213345 或邮件 info@pittmartingroup.com.au。皮特马丁会计师事务所Pitt Martin Group坐落在交通便利的悉尼市市中心，是一家拥有可以说中文合伙人的会计师事务所。我们的荣誉包括2018年CPA新州首席优秀奖， 2020年澳大利亚小生意年度冠军入围奖, 2021年澳洲知名媒体《每日会计师》年度最佳会计师事务所冠军入围奖，2022年最佳会计师事务所新人入围奖和2023香港澳大利亚商业协会最佳积极生意入围奖。
皮特马丁会计师事务所 Pitt Martin Group资质包括超过十五年的从业经验，澳大利亚注册会计师协会（CPA）执业认证会员，澳大利亚税务注册代理，新州、维州和西澳律师协会信托账户 (Trust Account) 认证审计师，澳大利亚金融贷款经纪人协会（FBAA）执业认证会员，澳大利亚证券及投资委员会注册代理，XERO, QUICKBOOKS, MYOB等会计软件授权单位及认证顾问。
皮特马丁会计师事务所 Pitt Martin Group是一家提供税务，会计，生意咨询, 自管养老金及审计的贷款等综合性服务的经澳洲会计师公会认证的注册会计师事务所。我们每年会花上几百个小时去研究新的税法，以保证我们的客户可以最大化合理避税。我们的中文联系方式是 Robert Liu +61292213345 或邮件 info@pittmartingroup.com.au。皮特马丁会计师事务所Pitt Martin Group坐落在交通便利的悉尼市市中心，是一家拥有可以说中文合伙人的会计师事务所。我们的荣誉包括2018年CPA新州首席优秀奖， 2020年澳大利亚小生意年度冠军入围奖, 2021年澳洲知名媒体《每日会计师》年度最佳会计师事务所冠军入围奖，2022年最佳会计师事务所新人入围奖和2023香港澳大利亚商业协会最佳积极生意入围奖。
皮特马丁会计师事务所 Pitt Martin Group资质包括超过十五年的从业经验，澳大利亚注册会计师协会（CPA）执业认证会员，澳大利亚税务注册代理，新州、维州和西澳律师协会信托账户 (Trust Account) 认证审计师，澳大利亚金融贷款经纪人协会（FBAA）执业认证会员，澳大利亚证券及投资委员会注册代理，XERO, QUICKBOOKS, MYOB等会计软件授权单位及认证顾问。
Utilizing company resources for personal gain is a common practice among business owners, often blurring the line between their business and personal life. However, the Australian Taxation Office (ATO) is intensifying its efforts to curb such practices, citing violations of tax laws.
In response to the prevalent misuse of company assets, the ATO has initiated an educational campaign to highlight the grave tax implications associated with these actions. Under Division 7A of the tax law, regulations target scenarios where private companies extend benefits to shareholders or their associates through loans, payments, or debt forgiveness. This provision aims to prevent shareholders from accessing company profits or assets without paying the appropriate taxes.
According to Division 7A, if a benefit is conferred, the recipient is deemed to have received an unfranked dividend for tax purposes, subject to taxation at their marginal tax rate. However, this adverse tax consequence can be mitigated by either repaying the amount before the company tax return deadline or establishing a compliant loan agreement with prescribed annual repayments at the benchmark interest rate.
Despite Division 7A being in effect since 1997, common compliance issues persist, including inaccurate accounting for the use of company assets, non-compliant loans, refinancing to cover Division 7A liabilities, and incorrect interest rate application. Managing the tax implications of benefits provided to shareholders and associates can quickly become complex. However, adhering to a few fundamental practices can help prevent complications:
Avoid using company funds for personal expenses.
Maintain comprehensive records documenting all company transactions, including those involving associated trusts, shareholders, and their associates.
Ensure that any loans extended to shareholders or their associates are supported by written agreements with terms that meet compliance standards, thereby preventing the entire loan amount from being treated as an unfranked dividend.
It is crucial to adhere to strict deadlines when addressing Division 7A issues. For instance, repayment of loans or implementation of compliant loan agreements must be completed before the due or lodgment date of the company’s tax return for the relevant year whichever is earlier.
In conclusion, the ATO’s crackdown on the misuse of company funds underscores the importance of adhering to tax regulations and maintaining transparency in financial dealings. By following prescribed guidelines and adopting best practices, business owners can avoid potential tax liabilities and ensure compliance with Division 7A requirements.
Pitt Martin Group is a CPA accounting firm, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.
Pitt Martin Groupqualifications include over fifteen years of professional experience in accounting industry, membership certification of the Australian Society of Certified Practising Accountants (CPA), Australian Taxation Registered Agents, certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.
This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.
皮特马丁会计师事务所 Pitt Martin Group 是一家提供税务，会计，生意咨询, 自管养老金及审计等综合性服务的经澳洲会计师公会认证的注册会计师事务所。我们每年会花上几百个小时去研究新的税法，以保证我们的客户可以最大化合理避税。我们的中文联系方式是 Robert Liu +61292213345 或邮件 robert@pittmartingroup.com.au。皮特马丁会计师事务所Pitt Martin Group坐落在交通便利的悉尼市市中心，是一家拥有可以说中文合伙人的会计师事务所。我们的荣誉包括2018年CPA新州首席优秀奖，2019年澳洲知名媒体《每日会计师》年度最佳会计师奖，2020年澳洲知名媒体《每日会计师》年度最佳咨询师奖及澳大利亚小生意年度冠军入围奖, 2022年澳洲知名媒体《每日会计师》年度最佳新人入围奖。
皮特马丁会计师事务所 Pitt Martin Group资质包括超过十五年的从业经验，澳大利亚注册会计师协会（CPA）执业认证会员，澳大利亚税务注册代理，新州和维州律师协会信托账户 (Trust Account) 认证审计师，澳大利亚证券及投资委员会注册代理，XERO， QUICKBOOKS, MYOB等会计软件授权单位及认证顾问。
For many small business owners, their business isn’t just a source of income; it’s their biggest investment, often meant to support their retirement. But figuring out exactly how much your business is worth and what makes it more valuable than others can be pretty tricky.
When it comes time to sell your business, the first thing you need to know is what exactly you’re selling. Typically, it’s your physical assets like equipment and inventory, along with the goodwill your business has built up. Buyers usually aren’t interested in taking on your debts or your company structure, so most sales end up being just for the assets.
The value of your assets is usually pretty straightforward to figure out, except for goodwill. Goodwill is the value of the future profits your business is expected to make. It’s essentially how much a buyer is willing to pay based on the business’s potential to make money down the road.
When someone buying a business can predict future profits and cash flow, that’s a good sign. But startups are riskier because they might not make profits right away. It often takes them years to start making money. “Goodwill” is the extra money paid to reduce risk and the time it takes to build up the business.
So, what makes a business valuable, and why would someone want to buy it?
Making consistent profits and showing potential for even more
Offering a high return on investment, ideally over 30%
Showing strong growth and having good prospects for more growth
Having a recognizable brand name that adds value
Being able to run without relying too heavily on the owner
Having a solid base of loyal customers
Having a sort of monopoly in your market, where you’re the only game in town
Having a competitive edge that’s hard for others to copy
Having good systems and processes in place to keep things running smoothly
While these factors play a big role, the actual price of a business can vary a lot. Sometimes, unique businesses or special circumstances can lead to higher prices. If your business does something really special, you might be able to get a price that’s higher than usual. But ultimately, it’s the market that decides what your business is worth. Even if you’re not thinking about selling your business right now, it’s still important to think about its value. Someday, you’ll probably want to sell, so it’s smart to do things that increase its value over time. And if you do decide to sell, think about who might want to buy it. You might find a buyer who’s willing to pay top dollar because your business would be a great addition to their plans for growth.
Should you please have any question in regards to above, please feel free to contact our friendly team in Pitt Martin Tax at 0292213345 or info@pittmartingroup.com.au.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
