From all of the team, we want to take this opportunity to wish you a safe and happy Christmas.
The year has gone quickly and has no doubt had its challenges. The holidays are an opportunity to take stock and revel in the spirit of the season.
We will look forward to working with you again in 2024 and making it the best possible year for you.
We wish you and your family the warmest of Christmas wishes.
Our office will be closed for Christmas from Wednesday 20 December 2023 and will reopen on Monday 15 January 2024.
See you soon!
Holiday Cash Flow for Your Business
Are you heading away for a break from the business this year?
This time of year can be hard on small business. Your expenses continue and your cashflow can suffer when your debtors go on holiday.
Leading up to the holiday period, is your business cash flow in good health to carry you through? With a bit of pre-planning and being proactive, you can set yourself up for a financially stress-free holiday.
Planning your cash flow over the holiday period
Invoice early – Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.
Chase payment – Use this opportunity to chase up any outstanding payments. Strong communication and relationships matter – talk to clients and chase invoices.
Talk to suppliers – A little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.
Review your costs – Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for. It’s also a good idea to do a general review of expenses. Business costs can creep up, and it’s a great idea to make a time to check on your expenses regularly, no matter what your financial situation. Review all of your regular payments and subscriptions as well as upcoming costs. There may be travel, functions or purchases which you can decide on an alternative approach to.
Talk to the bank or tax department – If cashflow is tight, make sure you have conversations early so you have everything in place to see you through.
We can help you navigate the holiday period and help you alleviate cashflow worries. So you get a well deserved break.
Rules & Entitlements During EOY Holiday Season
As we head into the summer holiday period, is your business up to speed with your rights and obligations? It can be confusing to employers and employees alike – public holidays worked or taken as annual leave, business shutdowns, annual leave provisions… there are many rules employers need to understand.
Employees are entitled to annual leave and public holidays under the National Employment Standards minimum entitlements.
Employers can ask employees to work on public holidays within reason. For example, if the business is open every day of the year, and the employment agreement states that public holidays may be required, the employer can reasonably ask an employee to work a public holiday.
An employee can refuse to work on a public holiday if the request is unreasonable or there are reasonable personal grounds for refusing.
Christmas and New Year Public Holidays 2022-23
The following link has the Christmas and New Year Public Holidays that apply to employers in all states for the Christmas period and beyond – 2023 Public Holidays
Public holidays are paid at ordinary rates for employees who take the day off. Employees who work on a public holiday must either be paid penalty rates according to the relevant award or be given an extra day off in lieu of the public holiday. Some awards have specific provisions or additional benefits for public holidays, so it’s important to check.
If an employee has booked annual leave for the Christmas and New Year periods, the public holidays are not counted as annual leave.
Some other key points to remember:
- Public holidays are counted as service, so annual and personal leave continues to accrue as usual.
- Overtime worked on a public holiday may be paid at a different rate than regular overtime – check the relevant award or agreement.
- Check the award or agreement for shutdown provisions. Most awards have guidance for directing employees to take leave during annual shutdowns.
- If employees don’t have enough annual leave, employers can agree to pay them in advance for leave not yet accrued, or the employee can take unpaid leave.
The FWO has further advice on rules and entitlements during the end-of-year holiday season.
You might also need to think about cash flow planning for the holiday period, particularly if the business shuts down but still has obligations for payroll and other expenses.
We can advise you about your employer responsibilities and help plan holiday period payments so you can make the most of your summer holiday!
The Key Influences of 2024
Uncertainty has reigned over the last few years, but can we expect more consistency as we head into 2024? We explore some of the key issues and influences.
Inflation and labour supply
RBA Governor Michelle Bullock stated, “Inflation is past its peak and heading in the right direction, but it is likely to return to target a bit more slowly than we previously thought.” While there have been encouraging signs, uncertainty remains. Domestically, inflation is persistent, growth has slowed but the labour market remains tight. And, the Australian economy remains at risk with uncertainty over the Chinese economy and ongoing international conflicts. At this stage, the RBA have not ruled out further interest rate increases.
The unemployment rate remains at 3.7% and the labour market tight. Wages grew 1.3% for the September 2023 quarter and 4.0% over the year, pushing wages to a 14 year high. High-skilled workers are particularly difficult to source, and we appear to have reached a point now where employers are unwilling to pay inflated salaries to acquire those willing to move.
Income tax cuts and the end of some concessions
From 1 July 2024,the stage 3 tax cuts that radically simplify the personal income tax brackets come into effect. The tax cuts collapse the 32.5% and 37% tax brackets into a single 30% rate for those earning between $45,001 and $200,000 – this is assuming the May Federal Budget does not postpone or scrap them!
The superannuation guarantee rate will rise again on 1 July 2024 to 11.5%.
For small and medium businesses with group turnover of less than $50m, a series of concessions are set to end or reduce back to conventional levels:
- The Skills and Training Boost ends on 30 June 2024. The boost provides a bonus deduction equal to 20% of eligible expenditure for external training provided to your workers for costs incurred between 29 March 2022 and 30 June 2024.
- The Small Business Energy Incentive is scheduled to end on 30 June 2024, although legislation to introduce this concession still hasn’t passed through Parliament. The incentive is intended to provide an additional 20% deduction on the cost of eligible depreciating assets that support electrification and more efficient use of energy.
The instant asset write-off for businesses with group turnover of less than $10m is due to reduce back to $1,000 from 1 July 2024. The cost threshold is meant to be $20,000 for the 2024 financial year, but legislation relating to this measure hasn’t passed through Parliament yet.
Worker rights and rewards
There have been a myriad of changes and enhancements to workplace laws across 2023 and employers can expect greater scrutiny in 2024:
- A 5.75% increase in the minimum wage to $23.23 per hour from 1 July 2023.
- New rules and a 2 year limit to some fixed term employment contracts (no renewing).
- A landmark case that defined how to determine whether a worker is a contractor or employee. The ATO has followed through with new rulings to ensure employers are paying the correct entitlements. It’s essential that employers have assessed contractors to ensure that they are classified correctly.
- Greater flexibility for unpaid parental leave.
If you have further questions, please don’t hesitate to call us or book an appointment with us for next year.
