New Financial Year – now’s the time to get your small business into shape

End of financial year, Small business

Home Online legal guides New Financial Year – get your small business into shape

The end of another financial year is looming, so we think it’s the perfect time to help you take stock and give you some advice to spring into the new year.

Here are a few financial developments you should consider to get your business on the right track.

1. Company tax cut

The 1.5% company tax cut for incorporated small businesses has been in place since 1 July 2015 and is limited to businesses with a turnover of less than $2million per annum. Factor the tax cut in now and ensure you put the right amount away each quarter for PAYG.

2. The start of SuperStream

1 July marks the start of SuperStream for small business employers with 19 or fewer employees.

It’s a new system that requires all employers to make superannuation contributions electronically in a specified format. The system will save small business owners time and money and cut red tape.

The Australian Tax Office has extended its usual deadline of 28 July to 31 October to give small businesses time to make sure they are compliant.

3. Minimum wage increase

From 1 July the minimum wage will increased by 2.5% to $17.70, or $672.70 a week. If an award impacts your small business, you’ll need to treat this increase as a floor and make sure you review all awards you have in place with your employees.

4. $20,000 asset write off

As mentioned in our May e-news, the Coalition government passed legislation last financial year that allows for accelerated depreciation for all asset purchases up to the value of $20,000 – for businesses with an annual revenue of up to $2million. The scheme means small businesses can immediately write off the full value of their asset – reducing the amount of tax a business will pay on an asset faster.

 

5. Does your current structure suit your business needs?

As times and circumstances change, it’s important to make sure you have the right business structure. Does your current structure still suit the nature of your business? Have any directors exited or entered, or changed their roles in any way? We can help you update and streamline.

6. Are your internal documents up to date?

Are your shareholder and partnership agreements up to date? How about your trust deeds? Has anything changed in the past 12 months?

It’s also important to make sure your employee information is current. As you undertake performance reviews, ensure all wage and salary information is current and correct in your system. Do all your employees have written contracts clearly stating their remuneration and award rates? Do you engage independent contractors?

Again, we can help you simplify and streamline all these areas.

Now’s the time to set your business up for the new financial year. Arro lawyers take a preventative law approach: working with our clients to give the appropriate and correct advice to prepare for an eventuality.

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