By Paul Whimp
For any organization to excel in their chosen market, you need to know how you rank and where to focus your time and energy on the areas to improve that ranking. One way to do this is to carry out a competitor analysis.
This activity allows you to understand the key areas where you lag behind your competitors so that you can develop strategies and actions to close those gaps and become a leader in your market.
Month: August 2021
Small Business CGT Concessions (Multi Part Series)
By Bjorn Kirberg
Small business owners who sell business assets may be eligible for tax concessions on capital gains and may be able to contribute an amount into superannuation to help fund their retirement.
Eligibility requirements include:
Net value of assets owned by your business and related entities is below $6 million or aggregated turnover of your business is less than $2 million.
The business/asset being sold must be an active asset (not passive).
Additional rules apply if the asset being sold are shares in a company or an interest in a trust.
Once the eligibility requirements are met, the following concessions may be available:
15-year exemption – 100% tax free is owned more than 15 years and the owner is over 55 and retiring
Small business 50% active asset reduction – provides a 50% reduction on the capital gain (in addition to the general 50% discount).
Retirement exemption – Up to $500,000 (lifetime limit) can reduce the capital gain. If under 55, this amount must be contributed into superannuation.
Small business rollover relief – Allows a replacement business to be purchased in order to defer the capital gain until that business is sold in the future.
These rules appear simple in concept however are extremely complex. If the eligibility conditions aren’t met, the tax consequences could be disastrous.
In the next several episodes, we will delve deeper and explore each of the aspects in more detail.
Taxation of Bitcoin and Cryptocurrency
In the last 52 weeks Bitcoin has been trading anywhere between USD$9,916 and USD$64,863. No wonder it has gained immense popularity.
Tax law refuses to classify crypto as a foreign currency for income tax purposes, despite it being classified as money for GST purposes.
For income tax purposes crypto is treated like property and taxed as a CGT asset.
The only exception to this is if it is acquired and then used within a short amount of time to purchase goods or services.
With El Salvador making Bitcoin an official currency in September 2021, it will be interesting to see how Australian tax law reacts to this with it potentially becoming taxed under Foreign Exchange rules as more countries adopt it.
2021 COVID-19 Business Support Grants For Lockdown-Impacted Businesses In Queensland
You may be eligible to receive a grant, based on the payroll size of your eligible business in Queensland. This grant may be used for business expenses.
Initially the grant was $5,000 however this has been increased to $10,000 for businesses with payroll below $1.3 million and $15,000 for businesses with payroll between $1.3 million and $10 million.
To be eligible, your business must:
employ staff (employees must be on your payroll and does not include any business owners)
have an ABN continuously held from 30 June 2021
be registered for GST
have Queensland headquarters
not be insolvent, or have owners or directors that are insolvent or an undischarged bankrupt
have an annual turnover of over $75,000 during any of the 2018–19, 2019–20 or 2020–21 financial years
demonstrate the business was directly or indirectly impacted by a lockdown event in July/August 2021
demonstrate or declare a reduction in turnover of 30% or more during a nominated 7-day period. NOTE: This must include at least 1 full day of a lockdown event when comparing against turnover achieved during the same 7-day period in July or August 2019
Harris Black Staff Day 2021
On the 30th July 2021 the Harris Black Team got together for their annual staff day. This was the first year the function has been held outside of our Ann street premises with the team migrating to the Stamford Plaza for a day full of vision and fun.
The day started off bright and early with a light breakfast while admiring the views which the river room had to offer. Our day then continued with an insightful presentation on the firm’s journey through the ages, our last year’s achievements, and the further strengthening of our Harris Black strategy.
Unfortunately, due to COVID-19 travel restrictions our first guest presenter, James Mason, had to dial in via Zoom. Despite this James gave a modern presentation on the topic of Innovation. James showed us how and when to innovate effectively and what innovating with in our firm can do to help Harris Black achieve our goals. After Morning Tea, a good friend of Harris Black, Mandy Holloway, dialled in and presented ‘The Trusted Advisor’. Mandy focused on the aspect of trust and exhibited how developing this aspect of ourselves can significantly help our relationships both inside and outside the office. This was followed by a beautiful barbeque lunch provided by the Pav Bar adjacent to the Stamford Plaza.
The day was then handed off to our managers who led the rest of the team to the Botanic Gardens for ‘The Amazing Race’ style team building activities. Teams competed against each other to gain points by completing set challenges around the gardens. After a sprint finish and a lot of fun, the day wound down with drinks and a magic show back at the Stamford Plaza, followed by a well-deserved EOFY dinner at Kabuki Teppanyaki Restaurant.
After a very busy and uncertain year it was great to get the Harris Black Team together for an entertaining and productive day enjoyed by all!
Harris Black News
Olivia emigrated to Australia from England in 2008 with her immediate family and after a road trip up the eastern coast, they decided to call Brisbane home. Being a teenager Olivia was determined not to be thrilled with the move to another country however it only took a few years for her to settle down and admit Australia had won her heart.
With a Bachelor of Commerce, 7 years’ experience and her Chartered Accountancy qualifications, Olivia joined Harris Black in October 2020 as a Supervisor. Olivia shone from day one and proudly we announce her recent promotion to the position of Manager. Olivia loves being a part of the Harris Black team. She energetically embraces her position in the firm, assisting both her peers and clients, particularly in what is currently a very challenging environment.
Olivia has recently married and loves to spend time with her husband and double trouble American Staffordshire Terriers at home. Travel to visit Grandparents and extended family back in England is on the cards once we’re again able to travel internationally. She is an avid baker and loves to keep friends and work colleagues in good supply of sugar cookies!
Olivia is passionate about assisting clients in a timely manner with advice or annual compliance work. She loves to deliver positive outcomes to her clients and works hard to help them achieve their goals.