Author: Adam_Admin

Boost employee productivity

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All businesses need to look at ways to increase the productivity of their staff. When your employees get more work done, it will ultimately lead to the business making a bigger profit. As well as increasing productivity, employers should also aim to improve the happiness and wellbeing of their workers. Here are some ways to boost employee productivity without losing staff engagement.

Use feedback:
Collect as much data as you can from your employees. This can inform how you create the workplace to best suit their needs. Data you might collect could include information on their performance levels by installing productivity tracking software on their devices. You could also regularly survey your staff to gain more qualitative data on their personal insights and happiness levels at work. When your employees can communicate openly and honestly, they will feel more comfortable and supported in the workplace.

Provide good tools:
A business can only foster a productive environment when employees have access to the best tools. Provide your staff with excellent hardware, software and office supplies. This includes laptops, office furniture, and amenities. The more comfortable that your employees feel at work, the more work they will get done. High-quality software will also help your business to achieve work more efficiently.

Allow flexibility:
Having an employee schedule in place may be one way for you to ensure your workers stay on task and produce a consistently high standard of work. However, rigid schedules do not always suit all employees. Allowing your employees to make minor changes, such as swapping shifts, flexible start or finish times and remote working arrangements can actually improve productivity and loyalty to the business. It can also benefit employee communication, dependance and engagement. As a manager or employer, you should still have to approve all requests to ensure that the flexible work environment does not get taken advantage of.

Encourage healthy competition:
Productivity can be further increased through the encouragement of healthy competition between employees. You may consider using incentives, such as short term coupons or long-term awards like an ‘Employee of the Year’ initiative. However, making a workplace too competitive can potentially have a harmful effect, so take caution to ensure you are striking a fine balance.

Illegal early release of super on ATO watch-list

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Illegal early release of super (IER) is one of the risk areas that the ATO has identified as being of most concern and in need of action.

Each year, the ATO analyses its data to identify the areas of high risk that will form part of its compliance program. Aside from illegal early release, another key risk area is non-lodgement. In the last year, the ATO has targeted individuals and promoters who register self-managed super funds with the intention of using the fund to illegally access super benefits.

In the 2019 financial year, the ATO cancelled the registration of 609 newly registered SMSFs who intended to use the funds for IER. They also withheld the details of 352 funds from the Super Fund Lookup, meaning they couldn’t receive payments and rollovers.

Some of the most common reasons for IER are:

  • Financial stress.
  • A desire to spend funds on a current-day benefit.
  • Individuals having limited knowledge of setting up an SMSF and are therefore targeted by scrupulous promoters.

The ATO has warned of severe consequences for you and your fund if super is accessed before you are legally entitled to it. These include disqualification of trustees, administrative penalties, the fund deemed as non-complying, or even prosecution.

Fund trustees or members who have knowingly been involved in a scheme or been approached by anyone claiming that they can withdraw their super early should contact the ATO immediately to advise of the situation and avoid further penalties.

Creating a positive work environment

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The workplace can be where you spend the majority of your time. Maintaining a positive and healthy environment while at work is therefore critical to your happiness and mental wellbeing. One of the key ways to ensure your workplace is healthy is by having strong relationships with your colleagues. Here are some simple ways you can develop a team-oriented atmosphere and make your time at work more productive and enjoyable.

Social events:
While you may spend a lot of time with your team at work, it would further improve the morale of your workplace to incorporate social events outside of work. Great working teams are those that spend a lot of time together and enjoy each other’s company. When people are engaging together in an activity that isn’t work-related, it can create a more personal and friendly work environment.

You may consider something simple, such as going out for group lunches or coffee dates rather than eating or taking breaks alone. If the logistics of this are difficult, you could book in a shared weekly or fortnightly meal with your colleagues in the same way you would a meeting.

Team rituals:
Similar to team social events, incorporating team rituals into the working day can help to create a sense of collaboration and comradery. Having daily or weekly rituals can help people to feel more deeply involved in the working experience. Rituals to celebrate success may include rewarding milestone achievements like the end of a project or a quota reached or implementing an ‘Employee of the Month’ program. Rituals to build relationships may also benefit your workplace, such as welcoming new employees in a special way or recognising birthdays and other celebrations.

One of the most important motivators for employees is having a sense of fun in the working environment. The best jobs are those that are enjoyable, as the work is motivation in itself. Where there is a positive and collaborative team environment, this will reflect in the quality of work and productivity of the staff.

Supporting mental health in the workplace

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Business owners have a responsibility to look after their staff and ensure they have a healthy working environment. This extends to mental health as well as physical. With one in five people experiencing a mental health issue at some stage in their life, there is a greater need to have mental health support specifically within the workplace environment of small businesses.

While most workers can successfully manage their illness without it impacting on their work, some may require support for a short period of time and others may require ongoing workplace strategies. Employers should be aware of mental health issues they can encounter and how best to approach them. Research is key in helping to understand what your employee is going through, how to recognise the illness and ways to successfully manage it.

Employers need to recognise the role in which work can play in an individual’s mental health. An ‘unhealthy’ work environment or a workplace incident can cause considerable stress and possibly contribute to or worsen a mental illness. Under the Disability Discrimination Act 1992, employers must make changes to the workplace to enable someone with anxiety and/or depression to remain at or return to work, provided they can continue to meet the core requirements of their role. These changes can be temporary or permanent.

There are many ways to support individuals in the workplace who are experiencing a mental health condition. Listening and offering support can make a huge difference to an individual who is experiencing mental health problems. Whilst some conditions may require time off, others may feel better continuing to work. Developing a work plan is a great way to maintain a routine whilst helping ensure they are not pushing themselves. Continually check in on progress, both work and health-related, and make adjustments where necessary. Informing other team members of changes without disclosing details is a good practice so no one feels that certain staff are being given special privileges.

Further ways to promote mental health initiatives within your business include encouraging members of your workplace to seek help, reducing the stigma surrounding mental illness, and fostering connectivity and communication. Managing mental health within your business by avoiding conditions that lead to excessive stress and encouraging awareness and support can have many positive outcomes and cultivate a mentally safe and healthy workplace. Employers should also familiarise themselves with the work health and safety regulatory body in their state or territory.

Tax requirements for capped defined benefit income streams 

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Members who receive income from one or more capped defined benefit income streams may have additional tax liabilities. They would then need to calculate their entitlement to the 10% tax offset if the income from all their capped defined benefit income streams exceeds their defined benefit income cap. SMSF trustees should be checking whether they are meeting withholding obligations for capped defined benefit income streams paid to their members.

SMSFs who pay a capped defined benefit income stream to members with a cap will need to provide the ATO with a PAYG withholding payment summary annual report, due by 14 August 2019. Members will have a cap if they have income from a capped defined benefit income stream and are 60 and above or under 60 and receiving a death benefit income stream from a person who died aged 60 or over.

When preparing their individual tax return, members need to:

  • Consider all income they receive from capped defined benefit income streams.
  • At label 7M, include half of the income from the tax-free component and taxed elements of all their capped defined benefit income streams which exceeds their defined benefit cap.
  • At label 7N, include any untaxed element.
  • At label T2, calculate and include their entitlement to the 10% tax offset (the amount may be nil).

The defined benefit income cap will be $100,000 for most individuals. It may be less in some circumstances, such as if they turned 60 during the year or were over 60 and then started receiving income from a capped defined benefit income stream for the first time part way through the year. Capped defined benefit income streams include life expectancy and market-linked pensions which were payable before 1 July 2017 and reversionary income streams paid to beneficiaries.

SMSFs must ensure they meet all obligations. These include registering for PAYG, providing members and the ATO with payment summary information, and making sure to comply with withholding obligations of their activity statement.

Legal issues raised by social media

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Social media is an established part of our everyday lives, as well as a key platform for many businesses. The rise of social media creates a number of legal issues that business owners must be aware of when utilising platforms such as Facebook, Instagram and LinkedIn. Businesses should consider a proactive approach in implementing both preventative and reactive ways of mitigating potential risks.

Confidentiality:
Legal issues arise when confidential information is disclosed on social media. In accordance with privacy regulations, individuals must be notified when personal information is being collected and the disclosure of such information is prohibited unless it is for certain purposes. A current privacy policy, that is accessible to consumers, should clearly outline the business’ practices when it comes to the collection, use and disclosure of personal information on social media. To mitigate the risk of an unwanted privacy breach, you should constantly revisit the strength of your online security by updating software, creating strong passwords, and backing up data.

Misleading conduct:
Under the Australian Consumer Law (ACL), an individual acting in trade or commerce must not make any false or misleading statements about the goods or services that they are providing. The ACL applies this to advertising on social media platforms. Claims made on social media, as well as any comparisons with competitors, must be substantiated. The Australian Competition and Consumer Commission (ACCC) provides guidance to businesses to ensure their social media pages are not breaching the misleading conduct provisions of the ACL. Steps that businesses can take to minimise risk include constantly monitoring their social media pages and responding to or removing any misleading content.

Defamation:
Defamation occurs where content is published or broadcast that injures a third party’s reputation. Defamation on social media platforms can have far-reaching implications, as a slanderous comment can be distributed online instantaneously to numerous jurisdictions, causing severe damage to a person’s reputation. While there are defences on grounds such as the content being true or it is an honest opinion, a business may still potentially defame an individual or other organisation. Social media creates a further risk for defamation, as it could even occur by ‘liking’ or ‘sharing’ a defamatory comment made by someone else.

New tax toolkit for rental property owners

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The ATO has developed a new rental property owners toolkit for property investors to ensure that mistakes are avoided in their tax returns.

Each year, the tax office identifies fairly common mistakes being made with tax claims made in regard to investment properties. In a recent review of individual tax returns, nine out of 10 taxpayers with a rental property were found to have made a mistake in their tax return.

The newly developed toolkit focuses on areas were mistakes are most commonly being made. These include:

  • Renting out a room, a unit, or a whole house on an occasional basis through the sharing economy (such as Airbnb).
  • Repairs, maintenance and capital expenditure.
  • Any borrowing expenses incurred when taking out a rental property loan.
  • Interest on a loan that is taken out to purchase a rental property.

One of the six fact sheets identifies the most common tax mistakes that will cost you time and money, and how you can avoid them. Some of the tips outlined in the toolkit include:

  • Keeping the right records.
  • Getting your capital gains right when selling.
  • Getting construction costs right.
  • Getting initial repairs and capital improvements right.
  • Apportioning expenses and income for co-owned properties.

Each fact sheet within the toolkit is also available to be downloaded individually. The toolkit is designed to assist rental property owners to get the information they need in order to lodge correctly and to avoid any lodgement mistakes in the future.

Protecting your business from online scams

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Protecting your business from any kind of threat is a priority. When it comes to online security, however, many owners are not practising secure measures to properly protect their business.

Online scamming and fraud is a lucrative industry, with large amounts of money being transferred to scammers under false pretences. Small businesses are unfortunately too often the target of online scamming and should practice a number of strategies to ensure their online security.

Keep personal details secure:
Protecting your personal details is important because scammers can use your information to target a specific scam towards your business, making it more believable or realistic. Be mindful of how much personal information is accessible on your website and social media profiles. Back up your content and avoid using public computers or hotspots where possible.

Ensure you are using password protection and that you choose your passwords carefully. An organisation-wide password policy can also go a long way in protecting businesses from online fraud. Passwords should not be shared between colleagues or used across multiple sites.

Practice caution:
Keep your wits about you when online. It is common for small businesses to receive fake invoices which can easily be paid if not enough attention is being paid. Keep records of everything and check the credibility of people who are contacting you online expecting some kind of financial transaction.

Take the time to educate your employees about the importance of not clicking on links in emails or messages, or opening attachments from people or organisations they don’t know. Often scams will threaten immediate action, it is important that you and your employees stay calm and not overreact if a scam is intimidating.

Install appropriate anti-virus software:
Ensuring all technologies used for your business are protected from vicious spyware or malware is a necessary step when preventing online scamming from occurring. Do your research to find the best software for your business and your business needs. Be sure to read reviews before deciding on the software you will install.

Strategies for achieving your financial goals

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Setting financial goals can be a great way to ensure that you’re always in control of your money. However, we all have frivolous spending habits that can derail us from achieving these goals. With perseverance and dedication, many of these habits can be changed over time. Whether you are saving for a house, that big overseas holiday or setting up your retirement savings, here are some strategies that you can implement to set your plans in place and help to achieve these financial goals.

Use your budget:
Building a basic budget can provide you with a snapshot of your current financial situation, your financial health and your spending habits. It’s difficult to know how you will reach your financial goals if you don’t understand where you stand financially. By using a budget, you can work out how much is required to save each month for your goal. It can allow you to monitor your spending habits and have a better picture of whether your goal is attainable.

Sacrifice:
By gaining an understanding of where you stand financially through the help of a budget, you can then identify areas where you may spend more than you’d like to. Incorporate some frugal spending habits by avoiding that daily takeaway coffee, cutting back on your paid subscriptions or any other unnecessary expenses. You may challenge yourself to stop spending money in specific categories for a small period to work out where it will be feasible to cut costs.

Reduce your debt:
Debt can be one of the major obstacles when it comes to your savings. Your debt can come from credit card payments, car loans, student loans, or other monthly repayments. Don’t let your debt overwhelm you, but identify where it is and implement strategies to help pay it off faster. These tactics may be to cut expenses or to shift higher-interest loans to a single lower-interest loan if possible. You may also look for ways to boost your income to get out of debt faster, such as taking up a second job or asking for more hours.

What SMSF records should you keep?

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A key responsibility for trustees of self-managed super funds (SMSFs) is to ensure proper and accurate tax and superannuation records are kept for the fund. When you have been running your fund for a long period of time and have amassed a large amount of information, it can be difficult to know exactly what records to keep, how long for and how to store them.

The ATO requires SMSF trustees to keep the following records for a minimum of five years:

  • Accurate accounting records that explain the transactions and financial position of the SMSF.
  • An annual operating statement and statement of the SMSF’s financial position.
  • Copies of all annual returns and transfer balance account reports lodged.
  • Copies of any other statements the fund trustee is required to lodge with the ATO or other super funds.

The following records are required to be kept for a minimum of 10 years:

  • Minutes of trustee meetings and decisions if matters affecting the fund were discussed, such as the fund’s investment strategy.
  • Records of all changes of trustees, and members’ written consent to be appointed as trustees.
  • Trustee declarations that recognise the obligations and responsibility of any trustee or director of a corporate trustee, appointed after 30 June 2007.
  • Copies of all reports given to members.

Your SMSF’s records must be kept in Australia, in writing and in English. The ATO allows electronic records to be kept, but they must be in a format that is easy to access and verify. If your SMSF does not keep the records for the minimum time required, you may be subject to penalties and fines. With the new tax year just beginning, now is the time to review your fund’s records and ensure you are retaining all that is required in the correct format.