Author: Adam_Admin

How to create an effective social media calendar

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Having a well-planned and engaging social media presence is nowadays a core aspect of marketing. With 77% of consumers more likely to buy from brands they follow on social media, it is important to plan your content ahead of posting to maintain a successful social media campaign, avoid any mistakes and ensure posts will help you achieve your business goals. Creating an effective social media calendar will often involve four key areas that can help you make the most out of your social media presence.

Key information:
This is normally presented in a table format that provides details of what is being posted, such as the date and time for posting, content type, hashtags, the image and text to be posted and what platforms it is being shared on. It is also useful to integrate an evaluation section you can fill in after each post has been made that provides information such as reach, engagement, shares, comments, reaction, follower increase/decrease. This can be done on apps like excel, or specialised social media calendar templates online.

Social media audit:
Before planning out the rest of your content, look back on your current social media pages and see which posts and platforms are working the best, how often you’re posting, what the goals of each network are, what should be changed or improved, and how people are responding to the content.

Plan content strategy:
It is a good idea to have a strategic content plan rather than just sharing whatever you feel like. This can involve determining which topics your content can cover and when, investigating the needs and wants of your audience and catering to them, and what order posts should be shared in.

Content check:
When planning future content, remember that posts that may be relevant now may not be so appropriate by the time you actually post them. Check if any of the content is out of date and whether it can be updated or should be deleted. For more variety, try planning posts around a special event or holiday that is coming up to make content more interesting.

Are you prone to emotional overspending? 

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Online shopping is available 24/7, making it easy to indulge in retail therapy whenever you’re feeling low. With many consumers using PayPal or saving their credit card details on Google, spending money is so easy that it may not feel like a big deal when clicking the ‘order’ button. While treating yourself every once in a while is normal, making poor and impulsive spending decisions often occurs when you’re in a bad frame of mind.

A 2019 comfort spending report by Mozo found that 81% of Australians are spending money as something to do when they are bored, or to make themselves feel better when they are stressed or anxious. Nationwide, comfort spending reaches $25.5 billion a year, which averages out to $1,430 a year.

The findings showed that 47% of people spent money when they were bored, and 45% of people spent money when they were stressed or anxious. Another study by MyState Bank found that 62% of Australians said that their emotional state was enough to drive them to make purchases.

Here are some ways you can deal with comfort spending:

  • Get into the habit of doing a different activity when you’re bored or stressed. There are many hobbies that would benefit your mental and physical health more than shopping, such as taking a walk or talking to a friend.
  • Give yourself some financial freedom. If you immediately implement an over-restrictive budget, you might be tempted to splurge after feeling deprived. Try to find a balance between treating yourself every now and comfort spending as a habit.
  • Recognise your comfort spending behaviour and set a budget for it, instead of eating into your savings
  • Avoid using a credit card, or if you do, make sure you pay the balance off in full each month.

The ATOs ABN cleanup 

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The ATO has announced that in October 2019, they will be focusing on the bulk Australian business number (ABN) cancellation program. This program will be cancelling ABNs that the ATO is confident are inactive in an attempt to create cohesion within the Australian Business Register (ABR).

There are a few areas the ATO looks into to find indications of inactive ABNs, such as;

  • Whether there are outstanding lodgements from the ABN holder.
  • Information from the ABN holder’s tax return and other lodgments.
  • Third party information.

In the event the ATO mistakenly cancels your ABN that is still in use, you can;

  • Reapply for the same ABN if your business structure remains the same, or;
  • Apply for a new ABN if the business structure has changed.

Last year, a Treasury consultation paper that examined a reform of the ABN system suggested periodic renewals for ABNs to ensure information is up-to-date, as well as renewal fees. This was suggested to remind ABN holders to review registrar rules and any changes that might be implemented.

As business data is used for various reasons, such as emergency services and government agencies during times of natural disaster to identify where financial disaster relief may be needed or other agencies when assessing potential receivers of grants, it is important for the ABR to be up to date with active ABNs.

Travels with my SMSF

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Travelling overseas for an extended period of time is an exciting adventure and a chance to have a break. However, SMSFs do not take a break when you do, which is why it is important to ensure everything remains in line while you are away.

Trustees that travel or relocate overseas for an extended period may find the residency status of the SMSF, compliance status and ability to receive tax concessions to be affected. SMSFs that breach the residency rules are taxed at the marginal rate of 49% rather than the concessionary rate of 15%. Before travelling, trustees must consider the implications to their SMSF.

Fund recognised as an Australian fund:
The SMSF will be recognised as an Australian super fund provided that the setup of and initial contributions have been made and accepted by the trustees in Australia, however, the trust deed does not have to be signed and executed in Australia. An SMSF that has been established outside Australia will also satisfy the test if at least one of the fund’s assets are located in Australia.

Management and control of the fund carried out in Australia:
The central management and control of the fund must usually be in Australia. This means the SMSF’s strategic decisions are regularly made, and high-level duties and activities are performed in Australia, such as formulating the investment strategy, reviewing the performance of the fund’s investments and determining how assets are to be used for member benefits. Generally, funds will meet this condition even if its central management and control is temporarily outside Australia for up to two years. If central management and control of the fund is permanently outside Australia for any period, it will not meet this requirement.

In the event that the “ordinarily” requirement cannot be satisfied, consider;

  • Appointing a legal personal representative with an enduring power of attorney.
  • Winding up the fund and roll benefits over into a retail/industry fund.
  • Converting the SMSF into an APRA fund.

Active member test:
An “active member” is a contributor to the fund or contributions to the fund have been made on their behalf. To satisfy this test, the fund will need to have active members who are Australian residents and hold at least 50% of the total market value of the fund’s assets attributable super interests, or the sum of the amounts that would be payable to active members if they decided to leave the fund.

Amendment to Housing Affordability Measures introduced

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The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019 was re-introduced to parliament on 23 October 2019. This comes after it was first announced in the 2017-18 Federal Budget.

The amendment introduces a new system where the government will provide up to an additional 10% capital gains tax (CGT) discount for resident individuals who invest in qualifying affordable housing from 1 January 2018. This increases the maximum CGT discount to 60%.

For the discount to be received, housing investments must meet qualifications and provide proof of eligibility. Tenants must have low to moderate incomes and landowners must charge rent at a discounted rate below the private market rental rate.

A registered community housing provider (CHP) must manage the properties and the investment is to be held for at least three years before the discount applies. The discounts will go through managed investment trusts (MITs). CHPs determine the tenant eligibility criteria, including the rent charged, consistent with state and territory affordable housing policies.

Investors who already have invested in affordable housing with the National Rental Affordability Scheme (NRAS) will not receive the additional 10% discount as they already get a yearly financial incentive.

Do you need to pay superannuation for contractors?

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A contractor can turn into an employee for legal and financial obligations, so when working with contractors, employers need to test whether they count as an employee or contractor for superannuation purposes according to the rules stated in the Superannuation Guarantee (SG).

The ATO states that even if contractors quote an Australian Business Number (ABN), they are identified as employees for superannuation guarantee purposes if they are paid mainly for their labour.

Employers must make superannuation contributions to these workers if they are being paid:

  • Under a verbal or written contract where more than 50% of the dollar value of the contract is for their labour.
  • For their personal labour and skills and not to achieve a result.
  • To personally perform the contract work and not delegate the work to someone else.

If any of the above criteria are not met, then employers may not have to pay superannuation. For example, if an employer makes a contract with a company, trust, or partnership who provides someone else to perform the labour, then they do not pay super to the labourer.

The minimum amount of super that needs to be paid is 9.5% of each worker’s ordinary time earnings (OTE), which is what employees earn for their ordinary hours of work such as commissions, allowances, bonuses, and shift loading. For contractor employees, employers calculate the minimum super amount on the labour component of the contract. If the labour portion of the contract cannot be calculated, a reasonable market value of the labour component can be used.

Ignorance of worker relationships and entitlements cannot be claimed as a defence by employers. Employers who attempt to avoid financial and legal obligations to workers by disguising an employment relationship as an independent contracting arrangement can be held liable for ‘sham contracting’ under the Fair Work Act 2009. This can incur fines up to $54 000.

Public speaking like a pro

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Public speaking can be intimidating and challenging, especially if it is in front of other business professionals. Chances are, if you work in a business environment you will be required to speak in public at some stage in your career, whether it’s for a presentation, meeting, or seminar. Here are three tips to help you improve your public speaking and deliver your message effectively.

Prepare and practice:
Spending enough time preparing your notes, pace, presentation visuals, and timeliness before the day is crucial; it can help tame your nerves and provide you with reassurance that you know what you’re going to talk about. Try preparing an opening line or run over a personal story you might want to use to engage the audience and show charisma.

As well as this, you should also prepare your material to run slightly under time, i.e, a 15 minute speech if you’re given a 20 minute time slot. This accounts for audience interruptions, comments and questions, and allows you to implement thought-provoking pauses. Prepping if you are going on a stage is also useful in preventing embarrassing blunders during your presentation, so make sure to test your microphone, presentation slides and lighting if possible.

Speak slowly:
A common mistake people make when they are nervous is to talk too quickly. Mumbling or talking at a fast pace to rush through the content and end the ordeal shows your nervousness and is one of the easiest ways to lose your audience’s attention. It is a good idea to speak slowly and use pauses throughout your presentation, and not just at the end of phrases or sentences. You’ll often find that if you go quiet for a moment, the audience will wait for you and anticipate what you will say next. This way you retain audience engagement while also getting a chance to take a full breath and slow down.

Be passionate:
Speakers that show passion exude confidence and engage with their audiences. If you focus on giving to your audience rather than appearing to speak for your own benefit, you can almost guarantee that your audience will respond positively. Showing that you want to benefit your audience and that you care can be done through tactics like explaining high-level topics thoroughly, asking questions to ensure they understand what you’re saying, or even sharing a funny, moving, or relatable anecdote. Don’t hold back when discussing subjects that evoke emotion in you; if you feel strongly about something then convey it. Passionate speakers are much more likely to be remembered, and even favoured, for their authenticity.

Contractor obligations for business owners

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Contractors bring with them different obligations that business owners need to comply with. Employers that incorrectly classify employees and contractors can face hefty penalties and charges as well as claims for entitlements and superannuation contributions. It must be established whether they are employees or contractors to get tax and super requirements right.

When hiring an individual contractor, the contractor may wish to enter a voluntary agreement for owners to deduct PAYG withholding amounts from their payments. This arrangement helps the contractor manage their tax by making contributions towards their expected income tax liability. Employers will need to check whether a contractor is eligible for super guarantee and if they can choose a super fund. If so, employers will need to;

  • Give the contractor a Standard choice form (or equivalent) within 28 days of them starting, so they can nominate their preferred super fund.
  • Check that the fund they’ve nominated is a complying fund.
  • Give their tax file number to their super fund the next time you make a payment for them, or within 14 days, whichever is the later.
  • Set up an electronic system to report and pay your super contributions using SuperStream.

Employers should also promptly start keeping records about the contractor as they will be needed to meet tax and super obligations.

Business owners will generally need to withhold 47% (from 1 July 2017) from payments to contractors that are a company, partnership or trust, and do not provide an ABN. Employers are also required to give a completed “PAYG payment summary – withholding where ABN not quoted” to the contractor with their net payment, include the payments in the “PAYG withholding where ABN not quoted – annual report” and lodge the report with the ATO by 31 October.

Business owners will need to meet other obligations when employing contractors such as preventing unlawful discrimination in the workplace as well as supporting working parents, people with a disability and those with carers responsibilities.

Being aware of copyright infringement  

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When sourcing content for your business, it can be tricky to determine what materials you can use without putting your business at risk of copyright infringement. With the internet providing a range of easily accessible sources, it can be easy to forget about the legalities of using material you did not produce yourself.

Just because material is published on the internet for anyone to see, doesn’t mean that its copyright is waived. Copyright guidelines can usually be found on a website’s ‘terms of use’ page.

In Australia, the Copyright Act 1968 (Cth) covers all sorts of sources including text, videos, images, audio, icons, artwork, maps, and computing programs. It protects the rights of an owner to profit from their content, prevents unauthorised use of their material and enables them to recover damages if their material has been used without permission.

Copyright protection is automatically applied, in Australia, to written and artistic works from the time it was originally created and generally exists from the publication date until 70 years after the owner’s death.

Infringement will occur if a substantial amount of the copyrighted material is used without the permission of the owner. A substantial amount isn’t necessarily just about how much of the material is copied. Even if only a small amount is reproduced, it can still constitute copyright infringement depending on the quality of the content copied. This includes how important the content is, how distinctive and recognisable it is to the original, and the level of skill and amount of time required to create it.

The owner’s permission must be obtained before using, reproducing, or disseminating copyrighted material. Unauthorised use of this material can result in penalties or remedies for the damage caused. This could include:

  • Financial penalties of up to $585 000 for corporations.
  • Financial penalties of up to $117 000 for individuals.
  • Imprisonment of up to 5 years for individuals.
  • Awarding damages for any losses suffered.
  • Accounting for any profits made.
  • Injunctions preventing any further use of the material.

It is useful to note that copyright does not protect ideas, but the way in which they are expressed. This means that you can work with the concepts of someone else’s material for your own individual creation, so long as you do not copy it outright.

What are the tax implications for different business structures?

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The structure of your business determines how you would pay tax and other business obligations you would need to consider. Whilst you are able to change your structure as your business develops, business owners must keep up with the changing tax responsibilities that may occur as a result. There are four major business structures in Australia that come with different tax implications.

Sole trader:
This is the cheapest and simplest business structure as it only involves a single individual running their business. They declare the business revenue as part of their personal income tax return and are taxed at the same rate as an individual. This means the more the income the business earns, the more tax the sole trader will have to pay. If their income is $18,200 or under for the 2018-19 financial year, then they are under the tax free threshold and do not have to pay tax. They can also receive a discount on Capital Gains Tax (CGT).

When more than 50% of a sole trader’s income from a contract is from their own personal labour, skills, or expertise, then they can earn personal services income (PSI). In this case, they need to complete specific questions in their tax return and the deductions they claim can be affected by this.

Partnership:
A partnership is when more than one person runs a business and distributes income or losses between themselves. Each partner must pay tax at the individual tax rate on their share of the business’ net income. They also need their own Australian Business Number (ABN) and Tax File Number (TFN) to use when lodging their annual business income tax return. An annual partnership return showing the income and deductions of the business must also be lodged. Similar to the sole trader, PSI can also be earned in which case deductions on this income may have to be treated differently.

Company:
A company is a separate legal entity with higher set-up and administration costs. They must apply for a company TFN and ABN if they are registered under the Corporations Act 2001. They must also be registered for GST if the annual GST turnover is $75,000 or more. There is no tax free threshold and no discount on CGT. Companies are responsible for paying income tax on their profits at the company tax rate, which is currently 30% under 2019-20 tax rates, or 27.5% for base rate entities. If PSI rules apply, the income earned from it will be treated as individual income for tax purposes. Deductions claimed may also be affected.

Trust:
If a business is run through a trust, they must also have their own TFN and ABN, and must register for GST if annual GST turnover is $75,000 or more. They are are not liable to pay tax because their beneficiaries who receive the trust net income are individually assessed for tax. If the trust generates net trust income and does not distribute it, they are assessed on this accumulated income at the highest individual tax rate. Each year, all the revenue earned by the trust and the income distributed to each beneficiary must be shown on their tax returns. Similar to a company structure, if a trust earns PSI, then the income from it is treated as individual income for tax purposes.