MENU

Month: August 2024

New Financial Year Reminder

by Harris Black

The new financial year has started, and we are still having conversations with business owners regarding some of these changes.  As a reminder, we have included the following changes to ensure you have not overlooked any:

Single Touch Payroll Finalisation

• Ensure your Single Touch Payroll (STP) finalisation declaration for 2023-24 is correct and has been submitted to the ATO.

• STP finalisation declarations should be made immediately if not already done (extensions can apply for closely held employees).

• Include Reportable Fringe Benefits Amounts (RFBA) for employees of more than $2,000 in STP finalisation.

• Employees will be able to access their Income Statement through their MyGov Account after STP finalisation is complete.

Superannuation Guarantee Rate Increase from 11% to 11.5% effective 1 July 2024

• If any wages were paid on or after 1 July 2024 (even if pay period related to pre-30 June 2024) – 11.5% rate applies

• June 2024 Quarter Superannuation – due 28 July 2024.

Taxable Payments Annual Report (TPAR) – due 28 August 2024

• Ensure you have correctly classified your employee or contractor employment relationships.

Annual Payroll Tax Reconciliation

• NSW due 28 July 2024

• VIC/QLD/WA/TAS due 22 July 2024

• SA due 29 July 2024

If you have any questions, please contact your Harris Black team member.

Section 109R – What Counts And Doesn’t Count Towards Minimum Repayments For Division 7A

by Harris Black

Division 7A, is a measure that prevents tax-free distribution of profits to shareholders or associates of shareholders of a company.  This could be in the form of loans or debts that get “forgiven” or won’t be paid back in the foreseeable future.  Since loans do not meet the definition of a “dividend” – these would essentially be tax-free distributions.

Division 7A does not let this happen by stipulating that such amounts transferred to shareholders or their associates will be treated as dividends.  Alternatively, these payments can be classified as loans as long as they are bound by genuine commercial terms (s109N).  For such a payment to be treated as a loan and not a dividend, there must be a loan agreement in writing.  The loan interest must be in line to a “statutory” interest rate (aka benchmark interest rate) that the ATO updates for each year; the loan must also last for no longer than 7 or 25 years – depending on whether it is secured or unsecured.

Other conditions that must be met for such a loan to be a “Division 7A complying loan” is the condition of an annual minimum repayment.  If say, your minimum repayment amount for the financial year is $30,000 but you only pay back $25,000, the shortfall ($5,000) would be deemed as an unfranked dividend for the financial year.

One may creatively argue that it is okay to repay the loan very conveniently just before the end of the financial year – only to take the same or greater amount of money out of the company at the beginning of the next financial year.  This is where s109R of Div7A comes in.

s109R discredits such schemes and makes sure only certain repayments count towards the annual repayment of a Div7A loan.  In a nutshell, it says that the following scenarios do not count towards a repayment when it is clear for a reasonable person to establish that

• payments were made only to be redrawn in the form of a similar or larger loan later on

OR

• when a new loan is drawn which is in value similar to or larger than the minimum repayment that is due.

If a new loan undertaken is significantly lower than the minimum repayment, it should not result in the implementation of s109R.

RECAP: Harris Black Business Leaders Forum – May 2024

by Harris Black

Reimagining Leadership: Practical Shifts to Accelerate Your Success Beyond 2024

Another successful Harris Black Business Leaders Forum, we looked at ‘Reimagining Leadership: Practical shifts to accelerate your success beyond 2024.’

The workshop focused on what’s working, what’s not and important leadership shifts to embrace in 2024 and beyond. How to discover and leverage your own personal brand as well as practical approaches to boost your effectiveness as a leader across areas of strategy, people management, operational cadence and mindset.

We had opportunities throughout the day to collaborate with peers and tackle day-to-day leadership challenges and concluded with a problem solving round table.

You’re Invited….

We’re excited to invite you to our next HB Business Leaders Forum on 12 September 2024 focusing on “Working Smarter: How to Succeed in An Ever-Changing Landscape Beyond 2024”.  For more information on this workshop and to purchase your ticket please click the button below.

Harris Black’s Success With iManage

by Harris Black

Harris Black achieved remarkable efficiency and collaboration with the implementation of iManage. Faced with the challenges of managing vast amounts of client information and ensuring seamless internal communication, Harris Black turned to iManage for a comprehensive solution.

The results were transformative—improved document management, enhanced team productivity, and fortified data security. This success story highlights how iManage empowered Harris Black to streamline operations, reduce manual tasks, and provide even better service to our clients.

Click the link below to read more of HB’s success story with iManage featuring our very own Kimberley Ward (Practice Manager).

READ: Harris Black | Customer Stories | iManage

Mindshop Australasian Annual Conference – Gold Coast

by Harris Black

Renee Bettenay (Director) and Keziah Sedgwick (Principal) attended the 2024 Mindshop Australasian Annual Conference on the Gold Coast on 24 and 25 May 2024.

It was a great experience, filled with insightful sessions and quality networking opportunities with other business advisory facilitators. Learning how other advisors help and look after their clients was incredibly inspiring.

Impactful sessions on data analytics, networking, generational trends, and personal brand journeys were presented with fantastic energy and generous sharing of knowledge.

Powering the world’s leading advisors through the philosophy of value to others, Mindshop (Home – Mindshop) provides all the tools, training, support, technologies and networking needed to build and grow a successful advisory business to any sized customer, anywhere in the world.

Meet the Staff – Bhavya Sadhwani

by Harris Black

Allow us to introduce Bhavya, the newest member of the Harris Black team, joining us as an intermediate accountant. Bhavya brings a diverse array of interests and experiences that we are excited to share with you.

If Bhavya could only eat one meal for the rest of his life, it would be an Indian flatbread called “lal mirch paratha.” Among Bhavya’s favourite dishes to cook are Biscoff toasty, “bhindi aloo” (okra and potato stir fry), and croissant with honey. His preferred drink is regular Coke.

Given the opportunity to share a meal with any four individuals, Bhavya would choose his parents, brother, and grandma. His hobbies include playing baseball, playing chess, and watching anime. If he could do anything for a day, it would be to play a pro league baseball match. While he enjoys watching chess, especially matches involving Magnus Carlsen, his favourite sport to play is baseball.

If Bhavya could travel back in time to witness any historical event, it would be India’s victory in the 1983 Cricket World Cup finals. He has a unique connection to fame, as a friend’s uncle was the screen director of “The Amazing Spider-Man.”

When it comes to TV shows and movies, Bhavya refuses to watch “Game of Thrones.” If stranded on a deserted island, he would take a hydrated camel, a Swiss army knife, and a bag of fifty apples. Bhavya wishes for the return of wearing a full suit of armour into fashion, and his dream car is a Tesla Model S.

In the coming months, Bhavya is looking forward to going back to India in August. He is confident in giving a 40-minute presentation on chess or climate change without any preparation. Besides English, Bhavya speaks Hindi and Japanese and is learning Chinese.

On the weekend, Bhavya enjoyed visiting the Sunshine Coast, exploring Australia Zoo (particularly the otters), and visiting Noosa Farmers Market. If he could live anywhere, it would be on a large plot of land near Brisbane. His desired superpower is super strength, which he would use for intimidation.

A favourite quote of Bhavya’s is, “You’re only one gamble away from winning a million dollars,” which has influenced his perspective on taking chances in life.

We are excited to welcome Bhavya to the Harris Black team and look forward to the contributions he will bring with his remarkable qualities and experiences. Welcome aboard!

How can we help you?

Today’s financial environment demands a regular review of strategy and a focus on execution.

Contact Us