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Author: Harris Black

Is A Staff Christmas Party Tax Deductible?

by Harris Black

It depends… Tax laws regarding gifts to employees and clients can be complex.

A gift and the Christmas party are viewed as separate benefits for the $300 minor benefits limit, which means employees can have twice the fun without FBT applying.

Non-entertainment gifts provided to employees are usually exempt from FBT where the total value is less than $300 inclusive of GST.  These include wine, flowers and hampers for example.  The business can also claim a tax deduction and any applicable GST credits.

Providing entertainment as a gift or Christmas party has different tax implications.  If the cost for each employee is less than $300 GST inclusive, FBT is not payable, but no tax deduction or GST credit can be claimed.  Examples of entertainment gifts include tickets to the theatre, a movie, sporting event, or gift cards.

If you provide an employee with a non-entertainment gift that is more than $300 GST inclusive, FBT may be payable at the rate of 49% on the grossed-up value however a tax deduction and GST credit can still be claimed.

Non-entertainment gifts given to clients and suppliers do not fall within the FBT rules.  Generally, a tax deduction and GST credit can be claimed for gifts to clients, provided they are not excessive.

The best tax outcome for your business this Christmas is keeping to the $300 rule and to give staff, customers and suppliers non-entertainment type gifts.

HB Business Leaders Forum – The Road Forward – Unlocking Opportunities For Your Business In 2022

by Harris Black

2022 will be a year of exciting opportunities for business leaders and owners as they chart a road forward in a new ‘covid normal’ environment. To succeed, leaders and owners will need to be more agile than ever, doing more with less, reacting to the changing local business environment, saying yes to the right growth opportunities while embracing emerging trends. What will be the biggest opportunity for you?

In our latest HB Business Leaders Forum, we looked at ‘The Road Forward – Unlocking Opportunities for your Business in 2022’.  

We focused on four key strategies critical to unlocking a wealth of opportunities for the attendees and their businesses in 2022. Full of practical strategies, insights and tools, the workshop provided ample opportunities for peers to discuss emerging trends and how they apply to their business and local market. 

Discussed on the day:

Emerging business trends for 2022

Practical agile principles critical in 2022 for any sized business to embrace

What you can change to make sure your current sales and marketing strategies cut through in 2022

3 most common areas of ‘hidden waste or poor profitability’ in business and how to address them

Attraction and retention strategies that work

Making the number one opportunity for 2022 a reality

Overall a terrific day with attendees walking away with a wealth of practical ideas and strategies to successfully navigate the road forward in 2022. 

To register your interest in our next HB Business Leaders Forum on the 17 February 2022 please click the Register Here button below.

Small Business CGT Concessions (Part 4)

by Harris Black


By Bjorn Kirberg


Once all of the conditions have been met, discussed in Part 1, Part 2 and Part 3 (see our previous newsletters), it is time to get to fun part – utilising the concessions.

These exemptions are as follows:

1) 15 Year Exemption

Provided conditions are met, full exemption of capital gain up to CGT cap ($1.615m for 2021-22).

Business must have been owned continuously for at least 15 years, significant individual is retiring and at least 55 years of age.

This is by far the most difficult exemption to pass.

Amount can be contributed to superannuation if choice is made.

2) 50% Active Asset Reduction

Capital gain reduced by 50%.  Can be used in addition to the general CGT discount making the discount effectively 75% (except companies).

This exemption is available to all entity types, however companies and unit trusts may not necessarily want to use this concession.

3) Small Business Retirement Exemption

Can disregard a capital gain up to a lifetime limit of $500,000 per significant individual.

If under 55, must contribute amount to a superannuation fund.  If 55 or over, no need to contribute to a superannuation fund however can voluntarily.

Despite the name, you do not actually need to retire.

Correct elections and timing is important.

4) Small Business Rollover

Allows deferral of capital gain by rolling over the gain to a replacement active asset.

Limitation of what replacement assets can be purchased.

Time limit of 2 years to purchase a replacement asset.

Summary

This 4-part series is only a snapshot of the Small Business CGT Concessions.

The rules are complex and a detailed review of each scenario is required. The ATO have advised that this is an area that they will keep focusing on, even years after the concessions have been claimed.

Australian Financial Review: Top 100 Accounting Firms 2021

by Harris Black

Harris Black is proud to be a founding member of the Brentnalls National Affiliation, which has just been ranked 31st in the Australian Financial Review Top 100 Accounting Firms of 2021.

The growth of Harris Black and all firms in the affiliation is a testament to the collaborative model and culture of the group, where the focus is on being better positioned to help our clients achieve their goals.

Brentnalls Conference – November 2021

by Harris Black

As many of you will already know, Harris Black is a member of the Brentnalls Affiliation.  The affiliation is a network of like-minded, independent Chartered Accounting firms across Australia and New Zealand. Member firms are in Brisbane, Sydney, Melbourne, Adelaide, Hamilton VIC, Perth and Auckland NZ. Harris Black has been part of this dynamic group of professionals for over 20 years. Each of the firms in the affiliation have a similar passion for improving client service and striving for best practice in all areas of business.

On Thursday 11 November 2021, the Directors and Practice Manager (Kimberley Ward) attended the second Brentnalls’ conference for 2021. Normally, this conference would be held over 2 days, however this was reduced to one day as it was again held virtually. 

The morning session allowed each firm to present their successes, challenges and goals for the past and upcoming 6-month period.  The afternoon session focused on benchmarking and comparing our financial and operational data. In between the sessions, we were able to join zoom rooms which allocates attendees to smaller groups and allows for the conversations we would normally have in a face to face setting.

The evening took us to Hellenika for a Harris Black dinner where conference attendees and their spouses enjoyed a beautiful meal and some well-deserved beverages. All in the Brentnalls Affiliation are looking forward to the first conference for 2022 which, fingers crossed, will be held in Adelaide, giving us the opportunity to return to the normal format and enjoy time with our colleagues.

Meet The Staff – Sashan Naiker

by Harris Black

Sashan moved up from Sydney to join the Harris Black team as an intermediate accountant in July of 2021. He has recently completed his CA studies and is excited to continue his accounting career at Harris Black.

Some interesting facts about Sash – He and his family grew up in South Africa and migrated to Australia in 2010 when he was 14 years old. Sash’s favourite sport to play is Football (Soccer) and he enjoys watching his favourite sporting team Arsenal. If Sash could only eat one meal for the rest of his life, he would choose Hot Chips with extra salt and tomato sauce. His dream car is a Mercedes C63 and his first ever job was packing shelves at a pharmacy after school. Sash loves traveling to Fiji, saying it is the most relaxing place he has ever been and if he could live anywhere it would be there.

An excerpt of the interview with Sash is below:

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