What changed on 1 July & Tax Time Targets?

A reminder of what changed on 1 July 2022

Business

• Superannuation guarantee increased to 10.5%
• $450 super guarantee threshold removed for employees aged 18 and over
• Small business GST and PAYG tax instalments lowered (the total tax liability remains the same, just the amount the business needs to pay through the year is lowered)
• ATO guidance on how profits of professional firms are structured comes into effect introducing new risk criteria
• New guidance on unpaid trust distributions to corporate beneficiaries comes into effect that may treat some unpaid distributions as loans and trigger tax consequences

Individuals

• Superannuation guarantee increased to 10.5%
• Work-test repealed for those under 75 to make or receive non-concessional or salary sacrifice super contributions (the work test still applies to personal deductible contributions)
• Age for downsizer super contributions reduced to 60 years and older
• Value of voluntary super contributions that can be withdrawn under the First Home Saver Scheme increased to a total of $50,000
• New ATO guidelines on trust distributions come into effect primarily impacting distributions to adult children
• Home loan guarantee scheme extended to 35,000 per year for first home buyers and 5,000 per year for single parents
• Australia’s minimum wage increased

Tax Time Targets

The ATO has flagged four priority areas this tax season where people are making mistakes.

With tax season almost upon us the Australian Taxation Office (ATO) has revealed its four areas of focus this tax season.

1. Record-keeping
2. Work-related expenses
3. Rental property income and deductions, and
4. Capital gains from crypto assets, property, and shares.

In general, there are three ‘golden rules’ when claiming tax deductions:

• You must have spent the money and not been reimbursed.
• If the expense is for a mix of work related (income producing) and private use, you can only claim the portion that relates to how you earn your income.
• You need to have a record to prove it.

1. Record keeping

101 of working with the ATO is that you can’t claim it if you can’t prove it. If you are audited, the ATO will disallow deductions for unsubstantiated or unreasonable expenses. Even if the expense is below the substantiation threshold of $300 ($150 for laundry), the ATO might ask how you came up with that number. For example, if you claim $300 in work related expenses (that is, make a claim right up to the substantiation threshold), how did you come up with that number and not something else?

In addition to the obvious records of salary, wages, allowances, government payments or pensions and annuities, you need to keep records of:

• Interest or managed funds.
• Records of expenses for any deductions claimed including a record of how that expense relates to the way you earn your income. That is, the expense must be related to how you earn your income. For example, if you claim the cost of RAT tests, you need to be able to prove that the RAT test was necessary to enable you to work. If you were working from home and not required to leave home, it will be harder to claim the cost of the test.
• Assets such as shares or units in a trust, rental properties or holiday homes, if you purchased a home or inherited a property, or disposed of an asset (including cryptocurrency).

You need to keep your records for five years. These can be digital copies of the records as long as they are clear and legible copies of the original. If your records are digital, keep a backup.

Records can be tax invoices, receipts, diary entries or something else that proves you incurred the expense and how it related to how you earn your income.

2. Work-related expenses

To claim a deduction, you need to have incurred the expense yourself and not been reimbursed by your employer or business, and the expense needs to be directly related to your work.

What expenses are related to work?

You can claim a deduction for all losses and outgoings “to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.” That is, there must be a nexus between the expenses you are claiming and how you earn your income.

It all sounds simple enough until you start applying this rule. Take the example of an actor. To land the acting job she needs to attend auditions. She wants to claim the cost of having her hair and make-up done for the audition. But, because she is not generating income at the stage of the audition, she cannot claim her expenses. The expense must be related to how you are currently earning your income, not future potential income. The same issue applies to upskilling. If you attend investment seminars with the intention of building your investment portfolio the seminar is not deductible as a self-education expense unless it relates to managing your existing investment portfolio – not a future one. Or, a nurse’s aide who attendees university to qualify as a nurse. The university degree and the expenses associated with this are not deductible as the nursing degree is not required to fulfil the role of a nurse’s aide.

The second area of confusion is over what can be claimed for work. If the item is “conventional” it’s unlikely to be deductible. For example, you can’t claim conventional clothing (including footwear) as a work-related expense, even if your employer requires you to wear it and you only wear the items of clothing at work. To be deductible clothing must be protective, occupation specific such as a chef’s chequered pants, a compulsory uniform, or a registered non-compulsory uniform.

Work related or private?

Another area of confusion is where expenses are incurred for work purposes but used privately. Internet access or mobile phone services are typical. A lot of people take the view that the expense had to be incurred for work so what does it matter if it’s used for private purposes? But, if you use the service on more than an ad-hoc basis for any purpose other than work, then the expense needs to be apportioned and only the work-related percentage claimed as a deduction. And yes, the ATO does check usage in an audit.

Claims for COVID-19 tests will be a test of this rule. COVID-19 tests are deductible from 1 July 2021 if the purpose was to determine whether you may attend or remain at work. The tax deduction does not apply if you worked from home and didn’t intend to attend your workplace, or the test was used for private purposes (for example, to tests the kids before school).

Claiming work from home expenses

Last financial year, one in three Australians claimed working from home expenses. Now we’re out of the pandemic, the ATO will be focussing specifically on what is being claimed. If you claimed work from home expenses last year and returned to the office this year, then there should be a reduction in your work from home claim. The ATO will be looking for discrepancies.

If you are claiming your expenses, there are three methods you can use:

• The ATO’s simplified 80 cents per hour short-cut method – you can claim 80 cents for every hour you worked from home from 1 March 2020 to 30 June 2022. You will need to have evidence of hours worked like a timesheet or diary. The rate covers all of your expenses and you cannot claim individual items separately, such as office furniture or a computer.
• Fixed rate 52 cents per hour method – applies if you have set up a home office but are not running a business from home. You can claim 52 cents for every hour and this covers the running expenses of your home. You can claim your phone, internet, or the decline in value of equipment separately.
• Actual expenses method – you can claim the actual expenses you incur (and reduce the claim by any personal use and use by other family members). You will need to ensure you have kept records such as receipts to use this method.

It’s this last method, the actual method, the ATO is scrutinising because people using this method tend to lodge much higher claims in their tax return. Ineligible expenses include:

• Personal expenses such as coffee, tea and toilet paper
• Expenses related to a child’s education, such as online learning courses or laptops
• Claiming large expenses up-front (instead of claiming depreciation for assets), and
• Occupancy expenses such as rent, mortgage interest, property insurance, and land taxes and rates, that cannot generally be claimed by employees working from home (especially by those who are working from home solely due to a lockdown).

3. Rental property income and deductions

For landlords, the focus is on ensuring that all income received, whether long-term, short-term, rental bonds, back payments, or insurance pay-outs, are recognised in your tax return.

If your rental property is outside of Australia, and you are an Australian resident for tax purposes, you must recognise the rental income you received in your tax return (excluding any tax you have paid overseas), unless you are classified as a temporary resident for tax purposes. You can claim expenses related to the property, although there are some special rules that need to be considered when it comes to interest deductions. For example, if you have borrowed money from an overseas lender you might be subject to withholding tax obligations.

Co-owned properties

For tax purposes, rental income and expenses need to be recognised in line with the legal ownership of the property, except in very limited circumstances where it can be shown that the equitable interest in the property is different from the legal title. The ATO will assume that where the taxpayers are related, the equitable right is the same as the legal title (unless there is evidence to suggest otherwise such as a deed of trust etc.,).

This means that if you hold a 25% legal interest in a property then you should recognise 25% of the rental income and rental expenses in your tax returns even if you pay most or all of the rental property expenses (the ATO would treat this as a private arrangement between the owners).

The main exception is where the parties have separately borrowed money to acquire their interest in the property, then they would claim their own interest deductions.

4. Capital gains from crypto, property or other assets

If you dispose of an asset – property, shares, crypto or NFTs, collectables (costing $500 or more) – you will need to calculate the capital gain or loss and record this in your tax return. Capital gains tax (CGT) does not apply to personal use assets such as a boat if you bought it for less than $10,000.

Crypto and capital gains tax

A question that often comes up is when do I pay tax on cryptocurrency?

If you acquire the cryptocurrency to make a private purchase and you don’t hold onto it, the crypto might qualify as a personal use asset. But in most cases, that is not the case and people acquire crypto as an investment, even if they do sometimes use it to buy things.

Generally, a CGT event occurs when disposing of cryptocurrency. This can include selling cryptocurrency for a fiat currency (e.g., $AUD), exchanging one cryptocurrency for another, gifting it, trading it, or using it to pay for goods or services.

Each cryptocurrency is a separate asset for CGT purposes. When you dispose of one cryptocurrency to acquire another, you are disposing of one CGT asset and acquiring another CGT asset. This triggers a taxing event.

Transferring cryptocurrency from one wallet to another is not a CGT disposal if you maintain ownership of the coin.

Record keeping is extremely important – you need receipts and details of the type of coin, purchase price, date and time of transactions in Australian dollars, records for any exchanges, digital wallet and keys, and what has been paid in commissions or brokerage fees, and records of tax agent, accountant and legal costs. The ATO regularly runs data matching projects, and has access to the data from many crypto platforms and banks.

If you make a loss on cryptocurrency, you can generally only claim the loss as a deduction if you are in the business of trading.

Gifting an asset might still incur tax

Donating or gifting an asset does not avoid capital gains tax. If you receive nothing or less than the market value of the asset, the market value substitution rules might come into play. The market value substitution rule can treat you as having received the market value of the asset you donated or gifted for the purpose of your CGT calculations.

For example, if Mum & Dad buy a block of land then eventually gift the block of land to their daughter, the ATO will look at the value of the land at the point they gifted it. If the market value of the land is higher than the amount that Mum & Dad paid for it, then this would normally trigger a capital gains tax liability. It does not matter that Mum & Dad did not receive any money for the land.

Donations of cryptocurrency might also trigger capital gains tax. If you donate cryptocurrency to a charity, you are likely to be assessed on the market value of the crypto at the point you donated it. You can only claim a tax deduction for the donation if the charity is a deductible gift recipient and the charity is set up to accept cryptocurrency.

If you have any questions about any of the above, please contact us.

Contact us to find out more.

Everyone knows you don’t pay tax on your family home when you sell it…right? We take a closer look at the main residence exemption that excludes your home from capital gains tax and the triggers that reduce or exclude that exemption.

Capital gains tax (CGT) applies to gains you have made on the sale of capital assets (assets you make money from). Unless an exemption or reduction applies, or you can offset the tax against a capital loss, any gain you made on an asset is taxed at your marginal tax rate.

What is the main residence exemption?

Your main residence is the home you live in. In general, CGT applies to the sale of your home unless you have an exemption, partial exemption, or you are able to offset the tax against a capital loss.

If you are an Australian resident for tax purposes, you can access the full main residence exemption when you sell your home if your home was your main residence for the whole time you owned it, the land your home is on is or is under 2 hectares, and you did not use your home to produce an income – for example running a business from your home or renting it out.

If the home is on more than 2 hectares, if eligible, you can treat the home and up to 2 hectares of the land it is on as one asset and claim the main residence exemption on this asset.

However, if you use your home to produce an income by running a business from home or renting it out, CGT can apply to the portion of the home used to produce income from that time onwards.

What’s a main residence?

For CGT purposes, your home normally qualifies as your main residence from the point you move in and start living there. However, if you move in as soon as practicable after the settlement date of the contract, that home is considered your main residence from the time you acquired it.

If you cannot move in straight away because you are in the process of selling your old home, you can treat both homes as your main residence for up to six months without impacting your eligibility to the main residence exemption. For example, where you have moved into your new home while finalising the sale of your old home. This applies if you were living in your old home for a continuous period of 3 months in the 12 months before you disposed of it, you did not use your old home to produce an income (rented it out or used it as a place of business) in any part of that 12 months when it was not your main residence, and your new property becomes your main residence.

If the sale takes more than six months and if eligible, the main residence exemption could apply to both homes only for the last six months prior to selling the old home. For any period before this it might be possible to choose which home is treated as your main residence (the other becomes subject to CGT).

If your new home is being rented to someone else when you purchase it and you cannot move in, the home is not your main residence until you move in.

If you cannot move in for some unforeseen reason, for example you end up in hospital or are posted overseas for a few months for work, then you still might be able to access the main residence exemption from the time you acquired the home if you move in as soon as practicable once the issue has been resolved. Inconvenience is not a valid reason and you will need to ensure that you have documentation to support your position.

Proof that your property is first established or continues to be your main residence is subjective and if the issue is ever queried, some of the factors the ATO will look at include:

• The length of time you have lived in the dwelling
• Where your family live
• Whether you moved your personal belongings into the dwelling
• The address you have your mail delivered
• Your address on the Electoral Roll
• Your connection to services such as telephone, gas and electricity, and
• Your intention.

Foreign resident or resident?

The main residence rules changed in 2017 to exclude non-residents from accessing the main residence exemption.

The rules focus on your tax residency status at the time of the CGT event (normally the time the contract of sale is entered into). That is, in most cases if you are a non-resident at the time you enter into the contract of sale, you will be unable to access the main residence exemption. This is the case even if you were a resident for part of the ownership period.

Conversely, if you are a resident at the time of the sale, and you meet the other eligibility criteria, the rules should apply as normal even if you were a non-resident for some of the ownership period. For example, an expat who maintains their main residence in Australia could return to Australia, become a resident for tax purposes again, then sell the property and if eligible, access the main residence exemption.

It’s important to recognise that the residency test is your tax residency not your visa status.

Australia’s tax residency rules can be complex. If you are uncertain, please contact us and we will work through the rules with you.

The tax rules also contain integrity provisions that can deny the main residence exemption where someone circumvents the rules by deliberately structuring their affairs to access the exemption – for example, transferring the property to a related party prior to becoming a foreign resident to access the main residence exemption.

Can I treat my home as my main residence even if I don’t live there?

Once you have established your home as your main residence, in certain circumstances, you can treat it as your main residence even if you have stopped living there. The absence rule allows you to treat your home as your main residence for tax purposes:

• For up to 6 years if it’s used to produce income, for example you rent it out while you are away; or
• Indefinitely if it is not used to produce income.

By applying the absence rule to your home, this normally prevents you from applying the main residence exemption to any other property you own over the same period. Apart from limited exceptions, the other property is exposed to CGT.

Let’s say you moved overseas in 2019 and rented out your home while you were away. Then, you came back to Australia in 2021 and moved back into your house. Then in early 2022, you decided it is not your forever home and sold it. You elected to apply the absence rule to your home and didn’t treat any other property as your main residence during that same period. In this case, you should be able to access the full main residence exemption assuming you are a resident for tax purposes at the time of sale.

The 6 year period also resets if you re-establish the property as your main residence and subsequently stop living there but rent it out in between. So, if the time the home was income producing is limited to six years for each absence, it is likely the full main residence exemption will be available if the other eligibility criteria are met.

What happens if I have been running my business from home?

If your home is also set aside as a dedicated place of business (i.e., you do not have another office or workshop), then you might only be able to claim a partial main residence exemption. This is because income producing assets are excluded from the main residence exemption.

If you are running a business from home, you can usually claim a tax deduction for occupancy expenses such as interest on the mortgage, council rates, and insurance. If you claimed or were eligible to claim these expenses, then you will only be able to access a partial main residence exemption. These rules apply even if you have not claimed these expenses as a deduction; the fact that you are eligible to make a claim is enough to impact your access to the main residence exemption.

In many cases, if your home would have qualified for a full main residence exemption before it is used as a dedicated place of business, the cost base of your home for CGT purposes should also be reset to its market value at that time.

Also, if only a partial main residence exemption is available, you will need to check whether you can access the small business CGT concessions on any remaining capital gain. As these rules are complex, please contact us and we will work through the rules with you.

However, if you have only been working from home out of convenience and there is another office that you normally work from, then your eligibility to access the main residence exemption should be unaffected. The ATO has confirmed that all that time working from home temporarily during the pandemic should not impact your ability to access the main residence exemption.

If I rent out a room on AirBnB, can I still claim the exemption?

If your home has been used to produce income while you are living in it, the portion used to produce income will be excluded from the main residence exemption. The rules might apply differently if you move out of the home completely – see Can I treat my home as my main residence even if I don’t live there?

Before you start renting out a portion of your home, it is a good idea to have it valued. If you would have qualified for the main residence exemption just before it was rented out, there are some rules that can apply in most cases and for CGT purposes, you are taken to have re-acquired your home for its market value at that time. So, if your home has increased in value over and above its cost base, this should reduce any gain when you eventually sell.

Can I have a different main residence to my spouse?

Let’s say you and your spouse each own homes that you have separately established as your main residences for the same period. The rules do not allow you to claim the full CGT exemption on both homes. Instead, you can:

• Choose one of the dwellings as the main residence for both of you during the period; or
• Nominate different dwellings as your main residence for the period.

If you and your spouse nominate different dwellings, the exemption is split between you:

• If you own 50% or less of the residence chosen as your main residence, the dwelling is taken to be your main residence for that period and you will qualify for the main residence exemption for your ownership interest;
• If you own greater than 50% of the residence chosen as your main residence, the dwelling is taken to be your main residence for half of the period that you and your spouse had different homes.

The same rule applies to the spouse.

The rule applies to each home that the spouses own regardless of how the homes are held legally, i.e., sole ownership, tenants in common or joint tenants.

Divorce and the main residence rules

The last two years have seen the highest divorce rate in Australia for a decade. When a property settlement occurs between spouses and if the conditions are met, the marriage breakdown rollover rules apply to ignore any CGT gain on the property settlement.

Assuming the home is transferred to one of the spouses (and not to or from a trust or company), both individuals used the home solely as their main residence over their ownership period, and the other eligibility conditions are met, then a full main residence exemption should be available when the property is eventually sold.

If the home qualified for the main residence exemption for only part of the ownership period for either individual, then a partial exemption might be available. That is, the spouse receiving the property may need to pay CGT on the gain on their share of the property received as part of the property settlement when they eventually sell the property.

I have inherited a property, if I sell it, do I have to pay CGT?

Special rules exist that enable some beneficiaries or estates to access a full or partial main residence exemption on the inherited property. Assuming the house was the main residence of the deceased just before they died, they did not then use the home to produce an income, and the other eligibility criteria are met, a full exemption might be available to the executor or beneficiary if either (or both) of the following conditions are met:

• The dwelling is disposed of within two years of the deceased’s death; or
• The dwelling was the main residence of one or more of the following people from the date of death until the dwelling has been disposed of:
  • The spouse of the deceased (unless they were separated);
  • An individual who had a right to occupy the dwelling under the deceased’s will; or
  • The beneficiary who is disposing of the dwelling.

An extension to the two year period can apply in limited certain circumstances, for example when the will is contested or complex.

If the deceased did not actually live in the property prior to their death and other eligibility criteria are satisfied, it still might be possible to apply the full exemption where the home was treated as their main residence under the absence rule.

If the full exemption is not available, a partial exemption might apply.

If you have any questions about how the main residence rules might apply to you, please drop us a line and we will be happy to work though it with you.

Contact us to find out more.

Register before 30 June and Get a Massive Tax Break (Bring Forward your Tax Deduction)

GLOBAL BUSINESS CAMP-  How it can help push your business forward

A great way to work ON your business is to attend the 2022 Global Business Camp on the Gold Coast. Now is the time to be focusing on your business and driving it forward.

The event will be held at the Hilton, Surfers Paradise on the 17th -19th October 2022. It will be a great way to supercharge you, your team, your business and also have a break on the Gold Coast. The other really great thing is that you receive a 100% Tax Deduction for everything you spend in relation to the event – delegate fees, flights, accommodation, transfers, food and any days you add on the back end to work on your business etc etc.

Please be aware there is absolutely no risk for you in booking and joining us at the 2022 event.

Hurry – seats are limited!

Register and pay now and you bring your tax deduction forward to this year, now that is neat! Yes, that is correct! Register and pay now and you can claim the event in the 2022 tax year. Also, speak to us about how we can accrue for the accommodation and other costs to bring your deduction forward to this year. 

The 2022 Global Business Camp is On!

Here’s just some of the takeaways you’ll enjoy:

HOW to “systemise” your business, so it runs smoothly WITHOUT your 24/7 involvement.

HOW to then “position” your systemised business for nice big PAY DAY when you decide to sell.

HOW a modest increase in “customer loyalty” can result in up to 80% increase in profitability.

HOW to retain employees & enthuse them to work smarter.

HOW to find more “A Grade” clients or customers & HOW to keep them longer.

HOW to be “the disruptor” & grab more market-share, no matter what your business is.

HOW to avoid “price-discounting” forever & alternatively use “value-add incentives” as a massive customer drawcard.

HOW to introduce “wow factor marketing” into your sales pitches.

HOW to use LinkedIn & other social media as wildly cost-effective “lead generators”.

HOW business strategy is critical in this post Covid era and understand how to implement your strategies.

HOW to measure and manage everything that is important in your business.

HOW to know the difference between leading, managing & selling.

CALL US TO REGISTER on 08 8212 8585 and speak to Kathy (our event coordinator) or email kathy@globalbusinesscamps.com.au

Find Out More at www.globalbusinesscamps.com.au

Current investment for registration is $3,300 per person however… as you are clients, friends of clients, friends, friends of friends and associates of Global Business Camps you can attend at a massively reduced rate.

For our clients, friends and relatives etc the special VIP rate is massively reduced to $1,980 per person. That is a saving of $1,320 per person! Call us on 08 8212 8585 to find out more about why you must be there in 2022. Call and speak to Kathy our Event Coordinator or to Nathan or John.

We have 76 people already registered, which is fantastic. Come along and join us, you will be glad you did, we guarantee it.

We have a great list of expert speakers. Find out more at https://globalbusinesscamps.com.au/event/key-note-speakers/. We have the experts in (marketing, motivation, sales, social media, leadership, impact of small changes to the numbers, technology and more) all the key fields that you need to know more of now with the changing landscape.

Some Key Points for you to Consider:

• The event is 100% Tax Deductible and is a great way to work on your business for a few days away.
• There is also an 100% Money Back Guarantee – if you do not get at least one idea that pays for the course investment 10 times over we will refund your course investment in full. So there is ABSOLUTELY NO RISK TO YOU.
• Due to COVID we are not only offering VIP rates to attend, we are also offering to all of our valued clients and friends a very special gift. See below:

As a thank you we are offering a gift of $200 per person that registers and attends the event from your referral. All they have to do is mention your name. This is just a small way of us saying thank you.

Once again please contact us if you would like to speak about the event. Call us on 08 8212 8585 and ask for Kathy Cotsios (Event Coordinator), John Tsoulos (Lead Presenter) or Nathan Kentish.

Find Out More at www.globalbusinesscamps.com.au

Take care and we look forward to hearing from you.

John & Nathan and the Indigo Financial Team

Register before 30 June and Get a Massive Tax Break (Bring Forward your Tax Deduction)

GLOBAL BUSINESS CAMP-  How it can help push your business forward

A great way to work ON your business is to attend the 2022 Global Business Camp on the Gold Coast. Now is the time to be focusing on your business and driving it forward.

The event will be held at the Hilton, Surfers Paradise on the 17th -19th October 2022. It will be a great way to supercharge you, your team, your business and also have a break on the Gold Coast. The other really great thing is that you receive a 100% Tax Deduction for everything you spend in relation to the event – delegate fees, flights, accommodation, transfers, food and any days you add on the back end to work on your business etc etc.

Please be aware there is absolutely no risk for you in booking and joining us at the 2022 event.

Hurry – seats are limited!

Register and pay now and you bring your tax deduction forward to this year, now that is neat! Yes, that is correct! Register and pay now and you can claim the event in the 2022 tax year. Also, speak to us about how we can accrue for the accommodation and other costs to bring your deduction forward to this year. 

The 2022 Global Business Camp is On!

Here’s just some of the takeaways you’ll enjoy:

HOW to “systemise” your business, so it runs smoothly WITHOUT your 24/7 involvement.

HOW to then “position” your systemised business for nice big PAY DAY when you decide to sell.

HOW a modest increase in “customer loyalty” can result in up to 80% increase in profitability.

HOW to retain employees & enthuse them to work smarter.

HOW to find more “A Grade” clients or customers & HOW to keep them longer.

HOW to be “the disruptor” & grab more market-share, no matter what your business is.

HOW to avoid “price-discounting” forever & alternatively use “value-add incentives” as a massive customer drawcard.

HOW to introduce “wow factor marketing” into your sales pitches.

HOW to use LinkedIn & other social media as wildly cost-effective “lead generators”.

HOW business strategy is critical in this post Covid era and understand how to implement your strategies.

HOW to measure and manage everything that is important in your business.

HOW to know the difference between leading, managing & selling.

CALL US TO REGISTER on 08 8212 8585 and speak to Kathy (our event coordinator) or email kathy@globalbusinesscamps.com.au

Find Out More at www.globalbusinesscamps.com.au

Current investment for registration is $3,300 per person however… as you are clients, friends of clients, friends, friends of friends and associates of Global Business Camps you can attend at a massively reduced rate.

For our clients, friends and relatives etc the special VIP rate is massively reduced to $1,980 per person. That is a saving of $1,320 per person! Call us on 08 8212 8585 to find out more about why you must be there in 2022. Call and speak to Kathy our Event Coordinator or to Nathan or John.

We have 76 people already registered, which is fantastic. Come along and join us, you will be glad you did, we guarantee it.

We have a great list of expert speakers. Find out more at https://globalbusinesscamps.com.au/event/key-note-speakers/. We have the experts in (marketing, motivation, sales, social media, leadership, impact of small changes to the numbers, technology and more) all the key fields that you need to know more of now with the changing landscape.

Some Key Points for you to Consider:

• The event is 100% Tax Deductible and is a great way to work on your business for a few days away.
• There is also an 100% Money Back Guarantee – if you do not get at least one idea that pays for the course investment 10 times over we will refund your course investment in full. So there is ABSOLUTELY NO RISK TO YOU.
• Due to COVID we are not only offering VIP rates to attend, we are also offering to all of our valued clients and friends a very special gift. See below:

As a thank you we are offering a gift of $200 per person that registers and attends the event from your referral. All they have to do is mention your name. This is just a small way of us saying thank you.

Once again please contact us if you would like to speak about the event. Call us on 08 8212 8585 and ask for Kathy Cotsios (Event Coordinator), John Tsoulos (Lead Presenter) or Nathan Kentish.

Find Out More at www.globalbusinesscamps.com.au

Take care and we look forward to hearing from you.

John & The Global Business Camp Team

A great way to work ON your business is to attend the Global Business Camp on the Gold Coast.

The next event will be held at the Hilton, Surfers Paradise on the 17^th to the 19th of October 2022. It will be a great way to supercharge you, your team, your business and also have a break on the Gold Coast.

Please be aware there is absolutely no risk for you in booking and joining us at the 2022 event. We wear all the risk so join us.

The World’s Greatest Global Business Camp is On!

Here’s just some of the takeaways you’ll enjoy:

HOW to “systemise” your business, so it runs smoothly WITHOUT your 24/7 involvement.

HOW to then “position” your systemised business for nice big PAY DAY when you decide to sell.

HOW a modest increase in “customer loyalty” can result in up to 80% increase in profitability.

HOW to retain employees & enthuse them to work smarter.

HOW to find more “A Grade” clients or customers & HOW to keep them longer.

HOW to be “the disruptor” & grab more market-share, no matter what your business is.

HOW to avoid “price-discounting” forever & alternatively use “value-add incentives” as a massive customer drawcard.

HOW to introduce “wow factor marketing” into your sales pitches.

HOW to use LinkedIn & other social media as wildly cost-effective “lead generators”.

HOW business strategy is critical in this post Covid era and understand how to implement your strategies.

HOW to measure and manage everything that is important in your business.

HOW to know the difference between leading, managing & selling.

A series of reforms and changes will commence on 1 July 2022. Here’s what is coming up:

For business

Superannuation guarantee increase to 10.5%

The Superannuation Guarantee (SG) rate will rise from 10% to 10.5% on 1 July 2022 and will continue to increase by 0.5% each year until it reaches 12% on 1 July 2025.

If you have employees, what this will mean depends on your employment agreements. If the employment agreement states the employee is paid on a ‘total remuneration’ basis (base plus SG and any other allowances), then their take home pay might be reduced by 0.5%. That is, a greater percentage of their total remuneration will be directed to their superannuation fund. For employees paid a rate plus superannuation, then their take home pay will remain the same and the 0.5% increase will be added to their SG payments.

$450 super guarantee threshold removed

From 1 July 2022, the $450 threshold test will be removed and all employees aged 18 or over will need to be paid superannuation guarantee regardless of how much they earn. It is important to ensure that your payroll system accommodates this change so you do not inadvertently underpay superannuation.

For employees under the age of 18, super guarantee is only paid if the employee works more than 30 hours per week.

Profits of professional services firms

The ATO has been concerned for some time about how many professional services firms are structured – specifically, professional practices such as lawyers, accountants, architects, medical practices, engineers, architects etc., operating through trusts, companies and partnerships of discretionary trusts and how the profits from these practices are being taxed.

New ATO guidance that comes into effect from 1 July 2022, takes a strong stance on structures designed to divert income in a way that results in principal practitioners receiving relatively small amounts of income personally for their work and reducing their taxable income. Where these structures appear to be in place to divert income to create a tax benefit for the professional, Part IVA may apply. Part IVA is an integrity rule which allows the Tax Commissioner to remove any tax benefit received by a taxpayer where they entered into an arrangement in a contrived manner in order to obtain a tax benefit. Significant penalties can also apply when Part IVA is triggered.

A new method of assessing the level of risk associated with profits generated by a professional services firm and how they flow through to individual practitioners and their related parties, will come into effect from 1 July 2022. Professional firms will need to assess their structures to understand their risk rating, and if necessary, either make changes to reduce their risks level or ensure appropriate documentation is in place to justify their position.

Lowering tax instalments for small business – PAYG

PAYG instalments are regular prepayments made during the year of the tax on business and investment income. The actual amount owing is then reconciled at the end of the income year when the tax return is lodged.

Normally, GST and PAYG instalment amounts are adjusted using a GDP adjustment or uplift. For the 2022-23 income year, the Government has set this uplift factor at 2% instead of the 10% that would have applied. The 2% uplift rate will apply to small to medium enterprises eligible to use the relevant instalment methods for instalments for the 2022-23 income year:

• Up to $10 million annual aggregated turnover for GST instalments, and
• $50 million annual aggregated turnover for PAYG instalments

The effect of the change is that small businesses using this PAYG instalment method will have more cash during the year to utilise. However, the actual amount of tax owing on the tax return will not change, just the amount you need to contribute during the year.

Trust distributions to companies

The ATO recently released a draft tax determination dealing specifically with unpaid distributions owed by trusts to corporate beneficiaries. If the amount owed by the trust is deemed to be a loan then it can potentially fall within the scope of the integrity provisions in Division 7A. If certain steps are not taken, such as placing the unpaid amount under a complying loan agreement, these amounts can be treated as deemed unfranked dividends for tax purposes and taxable at the taxpayer’s marginal tax rate. The ATO guidance deals specifically with, and potentially changes, when an unpaid entitlement to trust income will start being treated as a loan depending on the wording of the resolution to pay a distribution. The new guidance applies to trust entitlements arising on or after 1 July 2022.

For you

Home loan guarantee scheme extended

The Home Guarantee Scheme guarantees part of an eligible buyer’s home loan, enabling people to buy a home with a smaller deposit and without the need for lenders mortgage insurance. An additional 25,000 guarantees will be available for eligible first home owners (35,000 per year), and 2,500 additional single parent family home guarantees (5,000 per year).

Your superannuation

Work-test repeal – enabling those under 75 to contribute to super

Currently, a work test applies to superannuation contributions made by people aged 67 or over. In general, the work test requires that you are gainfully employed for at least 40 hours over a 30 day period in the financial year.

From 1 July 2022, the work-test has been scrapped and individuals aged younger than 75 years will be able to make or receive non-concessional (including under the bring-forward rule) or salary sacrifice superannuation contributions without meeting the work test, subject to existing contribution caps.

The work test will still apply to personal deductible contributions.

This change will also see those aged under 75 be able to access the ‘bring forward rule’ if your total superannuation balance allows. The bring forward rule enables you to contribute up to three years’ worth of non-concessional contributions to your super in one year.

Downsizer contributions from age 60

From 1 July 2022, eligible individuals aged 60 years or older can choose to make a ‘downsizer contribution’ into their superannuation of up to $300,000 per person ($600,000 per couple) from the proceeds of selling their home.

Currently, you need to be 65 years or older to utilise downsizer contributions.

Downsizer contributions can be made from the sale of your principal residence that you have owned for the past ten or more years. These contributions are excluded from the age test, work test and your total superannuation balance (but not exempt from your transfer balance cap).

First home saver scheme – using super to save for a first home

The First Home Super Saver Scheme enables first home buyers to withdraw voluntary contributions they have made to superannuation and any associated earnings, to put toward the cost of a first home. At present, the maximum amount of voluntary contributions you can make and withdraw is $30,000. From 1 July 2022, the maximum amount will increase to $50,000. The benefit of this scheme is the concessional tax treatment of superannuation.

Also, speak to us about how we can help you with the above and any other business assistance you may need.

It’s a great headline isn’t it? Spend $100 and get a $120 tax deduction. Days after the Federal Budget announcement that businesses will be able to claim a 120% deduction for expenditure on training and technology costs, we started receiving marketing emails encouraging us to spend now to access the deduction.

But, there are a few problems. Firstly, the announcement is just that, it is not yet law. And, given the Government is in caretaker mode for the Federal election, we do not know the position of the incoming Government on this measure. And, even if the incoming Government is supportive, we are yet to see draft legislation or detail to determine the practical application of the measure.

What was announced?

The 2022-23 Federal Budget announced two ‘Investment Boosts’ available to small businesses with an aggregated annual turnover of less than $50 million.

The Skills and Training Boost is intended to apply to expenditure from Budget night, 29 March 2022 until 30 June 2024. The business, however, will not be able to claim the deduction until the 2023 tax return. That is, for expenditure between 29 March 2022 and 30 June 2022, the boost, the additional 20%, will not be claimable until the 2022-23 tax return, assuming the announced start dates are maintained if and when the legislation passes Parliament.

The Technology Investment Boost is intended to apply to expenditure from Budget night, 29 March 2022 until 30 June 2023.

As with the Skills and Training Boost, the additional 20% deduction for eligible expenditure incurred by 30 June 2022 will be claimed in the 2023 tax return.

The boost for eligible expenditure incurred on or after 1 July 2022 will be included in the income year in which the expenditure is incurred.

Technology Investment Boost

A 120% tax deduction for expenditure incurred by small businesses on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems, or subscriptions to cloud-based services, capped at $100,000 per annum.

We have received a lot of questions about the specific expenditure the boost might apply to, for example does it cover website development or SEO services? But until we see the legislation, nothing is certain.

Skills and Training Boost

A 120% tax deduction for expenditure incurred by small businesses on external training courses provided to employees. External training courses will need to be provided to employees in Australia or online, and delivered by entities registered in Australia.

Some exclusions will apply, such as for in-house or on-the-job training and expenditure on external training courses for persons other than employees.

We are waiting on further details of this initiative to be released to confirm whether there will need to be a nexus between the training program and the current employment activities of the employees undertaking the course. So once again, until we have something more than the announcement, we cannot confirm how the measure will apply in practice or how broad (or otherwise) the definition of skills training is.

What happens if I have already spent money on training and technology in anticipation of the bolstered deduction?

If the measure becomes law, and the start date of the measure remains the same, we expect that any qualifying expenditure incurred in the 2021-22 financial year will be claimed in your tax return. But, the ‘boost’, the extra 20% will not be claimable until the 2022-23 financial year.

If the measure does not come to fruition, you should be able to claim a deduction under normal rules for the actual business expense.

Also, speak to us about how we can help you with the above and any other business assistance you may need.

Story by ALLISON WORRALL| with our thoughts added

Fancy new hiking gear? Why not see how they fit while walking on a hiking test trail? Or perhaps you’d like to try your hand at fly fishing on a paddle lake?

These are some of the adventurous experiences that sporting and outdoor retailer Anaconda has in the pipeline at its proposed adventure park in Brendale, Queensland.

Welcome to the reincarnation of retail, where shopping in-store is about “doing stuff” rather than just “buying stuff”.

In Nike’s flagship store in New York, shoppers can trial run shoes on either a downsized basketball court, soccer field or dedicated treadmills.

Canada Goose has opened multiple “cold rooms” across the globe, where customers can test out their parkas by stepping into a below-freezing room.

And back home in Australia, beauty giant MECCA has promised its new flagship in Melbourne will offer “never-seen-before experiences” alongside edutainment, masterclasses, pop-ups and product launches.

The beauty and cosmetics retailer’s new flagship Melbourne store will focus on providing a best-in-class retail experience.

Experiential retail has been around for a few years, but it’s never been more critical.

The pandemic exponentially accelerated the shift into online shopping, prompting retailers to rethink the in-store experience.

“Consumer shopping behaviour has changed since the start of the pandemic,” said Stuart Taylor, senior director of retail investments at JLL. “The shift towards offering more experiential retail is likely to be a key tactic to increase customer engagement.”

Brands are getting creative, finding ways to use their retail space to provide unique experiences that can’t be replicated online. It is all about the experience. We are in the experience economy and we need to really resonate with our customers. It is always the little things that make a huge difference to the business and in turn profit. There is no silver bullet.

The more we can interact with our customers the better off will be the experience and therefore the better off will be the customer and in turn the business.

Mr Taylor said the rise of e-commerce could have a big impact on some retailers if they didn’t evolve. This is a huge issue and if businesses do not adapt they can become extinct.

Ask your customers what else you could be doing for them. You will be amazed at the gems they can provide you. We can help you with Customer Advisory Boards that will help in your planning.

“Equally, it’s creating new opportunities,” he said. “On the fashion side, integrating online and physical experiences continues to be critical. In my view, there is still a preference to visiting stores to trial new products.”

While younger consumers are undoubtedly confident and comfortable browsing the internet, they still want to go shopping away from a screen.

According to consulting firm Kearney, up to 81 per cent of Gen Z consumers like to purchase in-store, and most of them also prefer visiting stores to trial and discover new products.

Malls are also jumping on the bandwagon, revitalising their facilities to appeal to a broader audience.

Karrinyup shopping centre in Perth features a piazza and a main street with leisure, lifestyle and entertainment offerings as well as traditional retail stores.

“COVID has shown that physical connection remains important and that people still want to socialise,” said Marco Ettorre, AMP Capital’s head of retail and investment. “Centres are also prioritising experiential elements, so the centre is not just a place to buy stuff but to actually do stuff.”

AMP Capital is funding a new automotive precinct at its Indooroopilly Shopping Centre, including showrooms for eight car manufacturers. In an Australian-first for automotive retail, consumers will be able to “buy a new car or service their existing vehicle without leaving the shopping centre”, Mr Ettorre said.

Shopping malls are diversifying their offerings to create a “one-stop experience” in their efforts to attract new customers and keep existing customers in the store for longer.

“Everything under one roof is key to delivering the best experience,” Mr Ettorre said. “Consumers want typical retail shops, entertainment, dining, food and beverage but there has been growth in service offerings to include everything from gyms to nail bars and beauty salons, from libraries to medical centres and wellness precincts.

Shoppers also expect technology to be used to enhance their experience, Mr Ettorre said, pointing to improved centre mapping or targeted in-centre promotions and discounts.

Consumers also want technology and innovation to enhance their experience, which could be improved centre mapping on their phones or targeted in-centre promotions and discounts.

Anthony Khoury, the managing director of Khoury & Partners, said the bricks-and-mortar retail landscape had fundamentally changed since the pandemic. “It’s still alive and a lot of people want to get involved but people know it’s a challenge,” Mr Khoury said.

This meant landlords and investors, particularly those in city centres where foot traffic is yet to fully recover, were seeking retailers with good reputations.

“We target experienced operators; people who have been there, done that,” Mr Khoury said.

What are you doing to be different and to offer your customers the experience they are searching for? There are so many opportunities and we can help you explore them. Contact us to find out how a ‘Thinkforce’ session (brainstorming) can be a great way to come up with ideas. Also, we have our signature Global Business Camp event coming up on the 17^th to the 19^th of October, 2022. This is something that you cannot afford to miss with great speakers (forward thinking) and many other like- minded business people being there.

Find out more at www.globalbusinesscamps.com.au

We found this awesome article that we had to share with you. It is all about making sure you have control of what is going on. These tips are great and very powerful, enjoy.

Article written by Sarah Barkley.

If you don’t regain control of your life, it’ll always feel like other people and external circumstances control it. Regaining control of your life requires controlling your mind and regulating your thoughts. Choose to focus on things that play a massive role in how your life works out.

No matter the circumstances, you can stay in control of your life. It all starts with controlling your thoughts and then your actions. As you regain control, you’ll begin to live the life of your dreams, helping improve all areas.

However, it’s sometimes hard to regain control when you aren’t thinking about beneficial things. When you struggle to take control of your thoughts and life, reading inspirational quotes can help. The words of wisdom from others who have been in your situation can make all the difference.

These phrases are ones you should never forget as they’ll help you regain and maintain control. The life lessons can help you shift your mindset and refocus on the essential things in your life. Then, you can regain control and focus on living the life of your dreams.

Fifteen Phrases Never to Forget to Regain Control of Your Life

1. “If you hear a voice within you say “you cannot paint,” then by all means paint and that voice will be silenced.” – Vincent Van Gogh

Whether other people tell you that you can’t do something or your inner thoughts, you must persevere. Don’t give in to the voices telling you that you can’t do something or you won’t have control of your life.

Instead, when someone tells you that you can’t do something, show everyone that you can. Once you prove the voices wrong, you won’t hear them anymore, allowing you to do whatever you desire.

2. “I found that every single successful person I’ve ever spoken to had a turning point, and the turning point was where they made a clear, specific, unequivocal decision that they were not going to live like this anymore. Some people make that decision at 15, and some people make it at 50, and most never make it at all.” – Brian Tracy

As Tracy explains, you must have a turning point in your life where you decide to make a change. If you want to become successful and achieve your dreams, regaining control of your life is essential. The turning point is when you decide to take back control and live by your own rules.

Everyone reaches this point in their life at different ages, so don’t assume it’s too late for you. You can start making the most of your life at any given moment.

3. “The most common way people give up their power is by thinking they don’t have any.” – Alice Walker

When you think you have no power, you aren’t likely to regain control. You must believe that you are powerful and can manage any situation in your life. If you can remember this quote, you’re sure to maintain control of your life.

4. “Every time you are tempted to react in the same old way, ask yourself if you want to be a prisoner of the past or a pioneer of the future.” – Deepak Chopra

Reacting the same way every time something happens shows that you aren’t in control. Instead, it indicates that you are trapped in the past, repeating the same detrimental habits. Ruminating causes you to lose control, and you can’t get it back until you learn to let go.

Remember this quote so that you can make positive life changes. When you do, you’re sure to switch your mindset, take back control of your life, and move forward.

5. “Opportunity does not knock. It presents itself when you beat down the door.” – Kyle Chandler

If you want to control your life, you must go after what you want. You can’t sit at home, wondering why everyone else receives opportunity and you don’t. Being in control requires you to get out into the world and work hard for what you want.

When you chase your goals, you’ll experience many opportunities you wouldn’t have otherwise. The opportunities will allow you to continue growing and becoming a better version of yourself.

6. “Don’t let someone else control what you do in life. It’s your decisions, your outcomes, your life.” – Unknown

When you let others control what you do, you no longer hold power in your life. You must take the control back and start making decisions for yourself. Then, each outcome in your life will result from your hard work, determination, and desires.

7. “You can’t just hope for happy endings. You have to believe in them. Then do the work, take the risks.” – Nora Roberts

While it’s good to be hopeful, you must go beyond that. When you hope for happy endings, it is essential that you also believe in happy endings. As Roberts explains, you also must be willing to put in the work and take risks along the way.

8. “Incredible change happens in your life when you decide to take control of what you do have power over instead of craving control over what you don’t.” – Steve Maraboli

When you focus all of your energy on wanting to control things you can’t, it causes you to lose control of your life right now. If you find that this is a problem for you, make a conscious decision to change your mindset and regain control. Take a moment to consider what you have power over before putting in any time or energy, and you’ll notice a quick improvement.

9. “You’ve got a lot of choices. If getting out of bed in the morning is a chore and you’re not smiling on a regular basis, try another choice.” – Steven D. Woodhull

There are an endless number of choices you can make in your life. If you feel like you have no joy or reason to wake up in the morning, you must make a change.

Remember this phrase and make a conscious effort to make better choices. You have control over everything you do, and when you do what makes you happy, your life will improve.

10. “Don’t settle. Don’t finish crappy books. If you don’t like the menu, leave the restaurant. If you’re not on the right path, get off it.” – Chris Brogan

Do you want to regain control of your life? Then don’t settle for anything less than you deserve and desire. There’s no reason to waste your time or energy doing things that don’t make you happy.

As Brogan explains, you don’t have to finish things you don’t enjoy. You also don’t have to stay somewhere you don’t want to be. Additionally, you can change your life path anytime if you decide you want something different.

11. “No one has power over you unless you give it to them, you are in control of your life, and your choices decide your own fate.” – Unknown

When you feel like someone else controls your life, it’s because you gave them the power to do it. It’s time for you to take back the control and start making decisions for yourself. Remember that every decision you make determines your future, so don’t let anyone take power.

12. “You get older, and you learn there is one sentence, just four words long, and if you can say it to yourself, it offers more comfort than almost any other. It goes like this: At least I tried.” – Ann Brashares

Sometimes you feel like your life is out of your control because things didn’t turn out the way you’d hoped. However, as long as you try, you are in control and hold the power over your life. It’s only when you let your fear, worry, or lack of motivation stop you from trying that you have a problem.

13. “Respect yourself enough to walk away from anything that no longer serves you, grows you, or makes you happy.” – Robert Tew

Part of regaining control requires that you respect yourself. You can’t stay in detrimental situations if you want power over your life. Instead, assess everyone and everything in your life and determine what serves you, helps you grow, or makes you happy.

14. “Success is hastened or delayed by one’s habits. It is not your passing inspirations or brilliant ideas so much as your everyday mental habits that control your life.” – Paramahansa Yogananda

Your daily habits determine your chance of success in life. You can have many great ideas and moments of inspiration, but it won’t help if you don’t make hard work a habit. Continually working toward what you want and need are the only ways to regain control of your life.

15. “You only have control over three things in your life – the thoughts you think, the images you visualize, and the actions your take.” – Jack Canfield

If you can remember this quote from Canfield, you’re sure to take control of your life. All you need to know is that you can control your thoughts and actions.

Final Thoughts on How to Take Back Your Power: 15 Phrases Never to Forget

Everyone experiences times in their lives when they feel like things are out of their control. These phrases can help you regain control and start living for yourself again. If you can remember these words of wisdom, you’ll stay focused on the essential parts of your life.

Putting these life lessons in an area, you’ll see often can help you remember. You could put your favorite phrase in your workspace, bedroom, bathroom, or anywhere else you’ll notice it.