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Brentnalls Leadership Hub Program Summary

by Michael Scott

In the accounting profession, we are always learning and undertaking training as there are always changes to the tax legislation that we need to be across; however, this training is always focused on improving our technical abilities only. This is why when invited to take part, I eagerly accepted the offer to undertake some leadership training to help round out my leadership capabilities. Over the past 8 months myself, and 14 other team members from throughout the Brentnalls network have undertaken the Brentnalls Leadership Hub Program. This Program has been run by Courageous Leaders and facilitated by Kevin Holloway who has been a knowledgeable and insightful instructor and coach.

The Program comprised of 8 monthly group face to face (via teams) presentations and discussions with a new topic each month. Each session stood alone but by the 3rd or 4th session we could see how each new topic was building on the previous learnings. The most helpful part of the course though was the habit builder, which ran for 21 days after each presentation and required us to check in daily to make sure that we were putting into practice what we had learnt. I found it to be very valuable in keeping what I had learnt in the forefront of my mind. We also had a buddy from the program (new buddy each month) which kept us accountable to completing our required check-ins.

The program covered the following topics:

  • Leadership is not a title, it’s a mindset
  • Self-Management;
  • Developing your delegator talent;
  • Supporting high performance;
  • Feedback conversations that empower change;
  • Deepening trust; and
  • Taming the advice monster in coaching

There were a few concepts which were harder to grasp and a few difficult conversations, but there were also some real breakthroughs. I think for me personally, I’ve found the confidence to delegate the jobs I need to, which will allow me to do my own job effectively and to trust other staff that with the right training and support they will be able to perform to the same level (if not better!) I’ve also learnt the importance of growing trust not only with you clients, but also within your own team, which will empower them to develop their skills much quicker than they otherwise would.

The program culminated with the Brentnalls national network conference on the Gold Coast in March. This was where the success of the program really shone – as several of the participants had only been to a few conferences (if any) and now suddenly there was an immediate group of friends from across all the firms which meant that rather than trying to meet a few people for the first time, there were already strong connections which could be further built upon.

I’d like to publicly thank the Brentnalls Executive Committee and the directors of Harris Black for running this course and for my invitation to attend.

Farewell Temporary Full Expensing (TFE)

Businesses have been able to elect to use TFE to write off the cost of new assets, reducing their taxable income and bringing forward depreciation deductions that would have otherwise been required to be taken over the useful life of an asset.

From 1 July 2023 onwards:

  • Businesses with a turnover below $10m, this reduces to $1,000 per asset
  • Businesses with a turnover above $10m, this reduces to $100 per asset

In order to still utilise the TFE rules, assets must be purchased and installed ready for use prior to 30 June 2023.

Seven Wastes

By Paul Whimp

Where there is a process, there is waste.

Toyota spent decades studying and eliminating wastes from all aspects of their businesses.  The result of their focus was the identification of seven wastes which are the most prevalent types of waste that exist in any business or process. 

By understanding these wastes and investigating their existence in your business you are able to then identify those high priority wastes that are causing unnecessary costs.

Estate Planning

By Brendan Power

At Harris Black, we have noticed a growing trend with clients taking an ever increasing interest in their personal wealth position, including how they will retire, and what will happen when they have passed away.

In the last dozen years there have been 2 major events, being the GFC and more recently the Covid19 pandemic. These have made people look past their business affairs, and more inwardly at their own personal future retirement and estate planning situation.

Nearly all our clients focus a large amount of their time and energy on their plans for business growth and business success and this often overshadows their consideration and management of personal affairs – eg reducing debt, accumulating and protecting their wealth, and planning for retirement and (sadly) their eventual death.

When completing clients’ personal work or during tax planning, we discuss what estate planning has been documented in the past.  Often this is just a simple Will (or worse, no Will).  Ultimately, many things may have occurred since the making of an initial or simple Will which can render it relatively ineffective, such as:

  • marriage
  • minor children,
  • adult children,
  • family trusts,
  • life insurance policies,
  • superannuation and the possibility of reducing the tax burden upon your death,
  • corporate beneficiaries (bucket company’s),
  • large beneficiary loans,
  • debts between entities,
  • debts with bans,
  • unequal loans or gifts to family members,
  • inheritances already received, or potentially receivable that will change your wealth position dramatically, and
  • concerns about your children’s current and future marriages (bloodline)

We have been able to assist clients in their initial selection of a suitable family planner lawyer (we have several we can recommend), and are generally involved in the initial discussions around their current structure, supply of key documents and often are part of discussions and raising questions on behalf of our clients. We effectively help project manage the estate planning process, as we want to ensure it suits our clients’ needs and that new (more effective) Wills actually get signed.

Other important aspects often get raised as part of this process, including:

  • Gifting to adult children (ie providing some assistance along the way, not just when you pass away)
  • Letter of wishes – this accompanies your Will, and whilst not legally binding it can provide guidance on how you would like things to be managed in the future
  • The use of a Testamentary Trust
  • Who is suitable Executor and/or Trustee of your Testamentary Trust – both now and in the future (eg when children become older)

Please give these points some thought, and we would be happy to have an initial chat around any concerns you may have.

2023 FBT Tax Time

by Taylor Dicken

We’re coming up to the end of the 2023 Fringe Benefits Tax (FBT) year which runs from 1 April 2022 to 31 March 2023.

If you are getting assistance from Harris Black (your tax agent) with your 2023 FBT return, the due date for lodgement is 26 June 2023.

What is FBT?

FBT is a tax on non-cash benefits provided to employees or their associates. This also includes non-salary directors/trustees. The tax is paid by the employer and is separate from income tax. Below are some common examples of non-cash benefits provided to employees where FBT may apply:

  • Allowing a vehicle owned by the employer to be used by an employee for private purposes.
  • Payment of expenses on behalf of an employee.
  • Providing entertainment to employees such as Christmas parties, meals, drinks, or recreational activities.
  • Providing loans to employees or forgiving debts owed by the employee to the employer.
  • Payments to an employee to compensate for living expenses incurred due to having to live away from their normal place of residence for work purposes.

What to do next

In preparation for the 2023 FBT year ended 31 March 2023, please be sure to:

  • Consider if you have provided non-cash benefits to employees that may be relevant for FBT.
  • Consider keeping a logbook for a period of 12 weeks detailing the business/private use of any vehicles used by employees. This allows for calculation of the FBT using the operating cost method which can often yield a more favourable result.
  • Make note of the closing odometer reading at 31 March 2023 for any vehicles used by employees.
  • Provide explanations for transactions in your online accounting software for any transactions coded to ‘Entertainment expenses’ or ‘Staff amenities’ to allow your Harris Black team member to differentiate between FBT-applicable and FBT-exempt transactions.

Harris Black will be sending a FBT checklist to clients in the coming weeks to assist with identifying FBT reportable benefits. If you do not receive a checklist but believe you may have provided applicable non-cash benefits, please let your Harris Black team member know.

If you have any questions, or would like to discuss your specific situation, please do not hesitate to contact us.

Harris Black Business Leaders Forum – March 2023

2023 Leadership And Business High Performance Trends: Discover What Will Be Critical To Your Success In The Year Ahead

In our recent Harris Black Business Leader Forum, we looked at ‘2023 leadership and business high performance trends: Discover what will be critical to your success in the year ahead’.   

We covered off the major themes of: What critical business and leadership trends do you need to embrace for higher performance in 2023? What strategies will you implement to successfully navigate continued market turbulence?   

In addition to those themes we did a deeper dive into the following areas: what’s working and what’s not for leaders around key areas of growth/profit, attraction/retention, staying agile, managing a hybrid workforce, implementing strategy, resilience, and personal productivity.  

Overall, it was a terrific workshop with the attending business leaders and also provided opportunities to problem solve key challenges and opportunities for 2023 with experienced peers. 

If you are interested in joining our practical and high-value learning sessions, we would like top invite you to join us at our next Business Leaders forum coming in May 2023.  Please refer to our Harris Black Team Member for details.   

How can we help you?

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