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Author: Harris Black

Warning To Watch Out For MyGov And ATO Tax Scams

by Harris Black

In June 2019, the ATO received 6,444 reports of tax-time scams impersonating the ATO. Emails with links to fake myGov login pages were the most widespread email scam.

The myGov system will never send texts, emails or attachments with links or web addresses that ask for your login or personal details. Never click on links in emails or text messages claiming to be from myGov.

Always log into your official myGov account to lodge your return and check if you owe a debt or are due a refund. You can do this by typing https://my.gov.au/ into your internet browser’s address bar.

Unfortunately, ATO and other scams continue well beyond the 30 October deadline for tax returns, as scammers know many people are waiting for a refund or information about debts. It’s important to watch out for scams throughout the year.

Disclosing Business Tax Debt Information

by Harris Black

The ATO has said it “recognises the important role businesses play in the Australian economy [but] when an entity avoids paying its tax debts it can have a significant impact on other businesses, employees, contractors and the wider community.

Proposed legislation will allow the ATO to disclose information about business tax debts when certain conditions are met. A business would need to have debts of at least $100,000 overdue by more than 90 days and have not effectively engaged with the ATO to manage that debt.

ATO Contacting Small Employers About Single Touch Payroll

by Harris Black

From 1 July 2018, employers with more than 20 employees have been required to provide real-time reports to the ATO of salary and wage payments, super guarantee contributions, ordinary time earnings of employees and PAYG withholding amounts.
From 1 July 2019, this Single Touch Payroll (STP) reporting system has extended to all employers.

The ATO is now writing to small employers who haven’t yet started reporting or applied for a deferral, to remind them of their STP obligations.

There will be no penalties for mistakes, or missed or late reports, for the first year, and employers experiencing hardship or who are in areas with intermittent or no internet connection will be able to access exemptions.

Being A Director – Managing The Risks

by Harris Black

With the soon to be enacted Director Penalty Regime to be extended to GST, directors need to take steps to manage the risks of being a director.

Directors face a myriad of potential risks including:

Breach of directors’ duties
Insolvent trading
Director Penalty Notices for unpaid PAYG(W), Superannuation Guarantee Contributions and soon to be enacted GST liabilities
Personal guarantees being called in
Breach of duties when acting as a director of a trustee company
Breach of other laws (workplace health & safety, environmental, competition and consumer etc.)

Asset Protection for Directors

There are a number of steps that can be taken to mitigate these risks, including:

Directors’ Insurance and Indemnities
Careful consideration of who is a director of the company (e.g. both husband and wife should not necessarily both be directors
Consideration of personal assets of directors
Various strategies to protect personal assets

Other Obligations

Directors owe a duty to the company, creditors, employees and shareholders.

It is ultimately the director’s responsibility to act in good faith and be aware of their obligations.

Guidance and advice from a good accountant and lawyer is also important.

What Advertising Avenue Is Best For You?

by Harris Black

Without exposure, businesses would come and go very quickly. Advertising requires you to know your target audience and what form of media they would consume the most.

In this new digital age, there are even more advertising options for your business. There are a variety of different advertising resources that are all priced differently so you can choose to pay as much as you want or nothing at all.

Traditional Media

Traditional media most commonly refers to television, radio or print media such as newspapers or magazines. This form of advertising is how you would appeal to an older audience. To optimise this medium, having your ads displayed prominently or played at peak times will increase visibility. Traditional media is a paid service so businesses who don’t want to spend too much time or money on advertising should look into other options.

New Media

New media refers to the internet and its various avenues on which you can advertise. Like traditional media, you can buy ad space to appear on prominent sites such as Google or YouTube. If you are looking for a little to no fee advertising option, social media has the largest reach. Many services, such as Facebook, Twitter and Instagram, offer free business models that highlight all your relevant information for public consumption. Their algorithms favour those who post regularly so constant monitoring is needed to ensure your advertising is being reached by as many people as possible. This form of advertising is how you would appeal to a younger audience.

Local Advertising

On a smaller scale, physical advertising in your immediate area can boost visibility. Flyers or business cards are a good way to get locals to be aware of your presence in the community and can be fairly inexpensive. This form of advertising lets you reach a large variety of people as well as helping to establish yourself in your local area. If you have more money to spend, you could consider renting a billboard or a bus stop space for larger scale advertising.

Analyse Your Business With The Debtors Days Method

by Harris Black

Ratio analysis is a method of gaining insight into a company’s liquidity, efficiency and profitability by comparing the information contained in its financial statements.

Debtor days is one key measure of ratio analysis. It shows the average number of days that a business takes to collect invoices from their customers. The longer it takes to collect, the greater the number of debtor days.

The formula for working out debtor days is:

(Trade receivables / Annual credit sales) x 365 days

When debtor days increase beyond normal trading terms, it indicates that the business is not collecting debts from customers as efficiently as it should be. If you aren’t getting paid, you won’t be able to upkeep your resources to continue servicing clients.

There are a number of small strategies you can implement to reduce your debtor days. These include:

    • Starting the collection process as soon as the debt falls due, don’t wait until after the terms are exceeded to collect from customers.
    • Creating easy ways of payment, such as PayPal or other online methods.
    • Considering online software that provides options for automated follow-ups on due debts.
    • Offering small discounts on current or future purchases as an incentive for clients to pay on time.

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