Online services for business has been co-designed with business and makes it easier for you to interact with the ATO online to manage your tax and super obligations.

It offers a range of new features such as:

• making a payment plan
• obtaining copies of income tax returns
• quickly navigating between the ABNs you manage using Switch ABN
• viewing your communication history with us.

Online services for business can be accessed on multiple devices, including a smart device like your phone or tablet.

The new service is in ‘public beta testing’, which means you can provide feedback on it. Complete the ‘Give us your feedback’ form located at the bottom of every page within the service.

To log in to Online services for business, use myGovID. If you are new to online services, you will need to set up your myGovID and link it to your business using Relationship Authorisation Manager.

The Business Portal will be available until later in the year to give you time to change over to Online services for business.

Carrick Aland is Australian Multiservice Firm of the Year which recognises the stand out firm in the Australian accounting industry that most effectively diversifies its offerings with services complementary to accounting and we are thrilled to be recipients of this highly prestigious award. Contact us in Dalby, Toowoomba or Chinchilla on 07 4669 9800 for help if you need it.

Source: ATO

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Carrick Aland Managing Partner and rural Succession Specialist, Wayne Turner, will be speaking at a free Rural Financial Counselling Service event in March.

Following up on enquiries from growers and graziers in the Toowoomba region, the Rural Financial Counselling Service Southern Queensland has invited Wayne to be part of an impressive lineup presenting a two-hour free succession planning workshop on 3 March 3 2021 in Clifton with MC Lloyd Russell, Toowoomba lawyer Sheelagh Gray, Kate Dunk (QRIDA) and Craig Turner (RIC).

PASSING on the family primary production business is not just the transfer of assets and ownership when people think the time is right. It’s a never-ending journey.

And Wayne said that there’s more to succession planning than just the financials.

“For those who think they’re going to have trouble extracting themselves from the farm, but conscious of providing more responsibility and autonomy to the next generation and wondering ‘what’s left for me’, the secret is about thinking smarter and finding a new role for yourself.”

“Advising and facilitating succession conversations has evolved as part of my own succession plan. The topics I cover in Clifton will draw upon all the different facets of financial experience I’ve gained during a career lifetime. No doubt older generation farmers will be able to draw upon such broad experience as well.”

“It’s thinking laterally about how you can apply it in a different way.”

Viewed as a critical component of family business continuity, succession planning is the process of passing the finances, assets and operations of a business over to the future generation.

The Rural Financial Counselling Service Southern Queensland offers free, confidential, impartial financial counselling for primary producers and associated small businesses that are facing financial challenges. To register for the Clifton event, visit www.rfcssq.org.au or call 07 46 22 5500.

• Read more about Carrick Aland’s succession planning process here »
• Read more about Wayne Turner here »

EVENT DETAILS

10AM Wednesday, 3 March 2021

Clifton Senior Citizens Centre

Register for free at www.rfcssq.org.au

The post Rural Succession Planning Workshop appeared first on Carrick Aland.

The continued global roll-out of COVID-19 vaccines in various countries continues to underpin the expected rebound of markets in 2021. The smooth transition of Brexit and the beginning of Biden’s presidency provides an outlook for a less volatile geopolitical environment.

Hedged Developed Markets Overseas Shares provided marginally negative returns, returning -0.8% for the month, as western economies faced new lockdown restrictions. In addition, there was an increase in volatility during the month of January as a result of rising concern over the valuation of shares and a short squeeze administered by retail investors. However, growth stocks continue to outperform value stocks, and Developed Markets Overseas Small Caps continue to rally.

Emerging markets have remained top performers, as negative returns for Brazil, Russia and India were snubbed by returns for China, which resulted in 3.7% return for Unhedged Emerging Market Shares over the month.

Over January, government bond yields rose for the US, UK and Australia as rising inflation expectations put upward pressure on nominal yields, causing negative returns. The US dollar began to strengthen again and gold experienced a decline of 2.1%. The expectation of market recovery lead to an increase of 7.8% in Oil prices. The REITs market, both globally and domestically, continued to provide negative returns following last year’s sell-offs.

Australian shares provided marginally positive returns over January, with the S&P/ASX300 returning 0.3%. The S&P/ASX300 was one of the few regional equity indices that was able to provide positive performance over the month.

Unlike Developed Markets Overseas Small Caps, the S&P/ASX Small Ordinaries Index fell 0.3%, as investors displayed a risk-off sentiment. Consumer Discretionary (+4.8%) and Communication Services (+2.6%) were the best performing sectors, while the weakest performing sectors were Real Estate (-4.3%) and Industrials (-3.1%).

Significant Developments

• During its early February 2021 meeting, the Reserve Bank of Australia (RBA) decided to maintain its current policy settings, including the target cash rate at 0.10% per annum and the targeted yield on 3-year Australian Government bonds at 0.10%. The RBA also decided to purchase an additional $100bn of bonds issued by Australian Government and states and territories, the current bond purchase program ends in April. Governor Philip Lowe noted that in Australia, the economic recovery is well under way and has been stronger than previously expected, particularly in employment with a decline in the unemployment rate to 6.6%. Retail spending has also been strong and households and businesses have now recommenced loan payments that were previously deferred. In the RBA’s central scenario, it will not be until the middle of this year that the level of GDP reaches the level attained at the end of 2019. In the central scenario, GDP is expected to grow by around 3.5% over both 2021 and 2022. Whilst the unemployment rate is expected to decline, the central scenario is for unemployment to be around 6.0% at the end of this year and 5.5% at the end of 2022. In underlying terms, inflation is forecast to be 1.25% over 2021 and 1.5% over 2022.The Board has noted that it will not increase the cash rate until inflation sits sustainably within the 2-3% target range. For this to occur, wage growth will have to be materially higher than it is at present. This will require significant gains in employment and a return to a tight labour market. The Board has noted that it does not expect these conditions to be met until 2024 at the earliest.
• Australian seasonally adjusted employment increased by 50,000 in December, in line with expectations, while the November figure remained at an increase of 90,000. The unemployment rate decreased to 6.6% for December, below expectations for 6.7%. The participation rate increased to 66.2%, in line with expectations. Part time jobs increased by 14,300 and full time jobs increased by 35,700.
• Australian building approvals increased 10.9% month-on-month to December, compared to the previous level of 3.4% (revised) for period ending November.
• The Institute for Supply Management (ISM) Manufacturing Index recorded 58.7 in January, below consensus for 60.0, and below the 60.5 recorded in December. Of the 18 manufacturing industries, Electrical Equipment, Appliances and Components and Machinery were the two industries that reported the highest growth. Printing & Related Support Activities and Petroleum and Coal Products were the two industries that reported a contraction in January. The ISM Services Index recorded 58.7 in January, above consensus for 56.7 and above the 57.7 recorded in December. Of the 18 services industries, the top performers in January were Real Estate, Rental and Leasing and Construction. Arts, Entertainment & Recreation and Educational Services were the two industries that reported the highest contractions over the month.
• US Non-Farm Payrolls increased by 49,000 in January, above the 227,000 decrease (revised) recorded for December. The unemployment rate decreased to 6.3% over January, below expectations for 6.7%.
• US GDP advanced estimate for Q4 2020 is 4.0% quarter on quarter (QoQ) annualised, below expectations for 4.2%
• The Caixin Manufacturing PMI in China recorded 51.5 in January, below expectations for 52.6, signalling the slowest improvement in operating conditions in seven months.
• The preliminary estimate of the European Core CPI recorded 1.4% over the year to January, above expectations for 0.9%.
• The Eurozone composite PMI decreased to 47.8 in January, above expectations for 47.5.
• The advanced estimate recorded for Q4 2020 Eurozone seasonally adjusted GDP is -0.7% QoQ and -5.1% YoY.

Australian Equities

The Australian share market outperformed its hedged overseas counterpart over the month, as the S&P/ ASX 300 Index returned 0.3%. The S&P/ASX 50 was the strongest relative performer, increasing 0.7%, while the S&P/ASX Mid 50 was the weakest, returning -1.1% over the month.

The best performing sectors were Consumer Discretionary (+4.8%) and Communication Services (+2.6%), while the weakest performing sectors were Real Estate (-4.3%) and Industrials (-3.1%).

The largest positive stock contributors to the index return were Westpac Banking, Wesfarmers and Afterpay with absolute returns of 9.2%, 8.6% and 14.5% respectively. In contrast, the most significant detractors were CSL, Fortescue Metals and Macquarie Group with absolute returns of -4.0%, -6.5% and -4.9%, respectively.

Global Equities

The broad MSCI World ex Australia (NR) Index returned -0.4% in unhedged terms and -0.8% in hedged terms over the month, as new restrictions hit the western countries due to rising COVID-19 infections. In AUD terms, the strongest performing sectors were Energy (+3.5%) and Health Care (+1.7%), while Consumer Staples (-3.8%) and Industrials (-2.2%) were the weakest performers. In AUD terms, the MSCI Small Caps (TR) Index was up 2.7% and MSCI Emerging Markets (NR) Index was also up 3.7% over January.

Over January, the NASDAQ increased 1.4%, the S&P 500 Composite Index decreased 1.0% and the Dow Jones Industrial Average decreased 2.0%, all in USD terms. In local currency terms, major European share markets experienced negative returns as the CAC 40 (France) decreased 2.6%, FTSE 100 decreased 0.8% and the DAX 30 (Germany) decreased 2.1%. In Asia, the Indian S&P BSE 500 decreased (-1.8%), whilst the Hong Kong Hang Seng (+3.9%), Chinese SSE Composite (+0.3%) and Japanese TOPIX (+0.2%) all increased, all in local currency terms.

Real Assets

The Real Assets sector achieved broadly negative returns over January. The Global Real Estate Investment Trusts (REITs) Index decrease by -0.5% over the month and the FTSE Global Core Infrastructure 50/50 Index returned -1.6% (both in AUD hedged terms). Domestic REITs decreased -4.1% over January, whilst the Australian Direct Property (NAV) returned 1.6% on a one-month lagged basis.

Fixed Interest

Global bond markets were broadly negative over January, with the Barclays Capital Global Aggregate Bond Index (Hedged) returning -0.6% and the FTSE World Government Bond (ex-Australia) Index (Hedged) returning -0.8%. Ten-year bond yields increased in most markets including the UK (+11bps to 0.35%), Germany (+3bps to -0.55%), Japan (+2bps to 0.04%) and the US (+18bps to 1.09%). Two-year bond yields were mixed over the month, decreasing in the US (-1bp to 0.12%) and Germany (-2bps to -0.73%), whilst increasing in the UK (+5bps to -0.11%) and remaining flat in Japan (-0.13%).

Returns for Australian bondholders were negative over January, with 10-year (+12bps to 1.09%), five-year (+4bps to 0.38%) and two-year (+4bps to 0.12%) bond yields increasing. Of the Bloomberg Ausbond indices, the Bloomberg Ausbond Inflation Index produced the lowest return, decreasing -0.9% over the month.

Currency Markets

The AUD Trade Weighted Index decreased to 63.0 over January, down by 0.6% from December. The AUD depreciated against the Pound Sterling (-1.4%) and US Dollar (-0.6%). However, the AUD appreciated against the Japanese Yen (+0.6%) and Euro (+0.8%).

Commodities

Iron Ore fell 0.3%, finishing the month at US$158.0 per metric tonne. The S&P GSCI Commodity Total Return Index increased 5.5% over the month. Gold prices decreased by 2.1% and the oil price increased 7.8% during January

Source: MercerIS

The post Economic Update as at January 2021 appeared first on Carrick Aland.

There are a lot of government grants available. To keep up with all of them and knowing what each will cover is a vast and time-consuming task if you do it properly.

Here we cover the Queensland state government grants and incentives for small and medium enterprises which are currently open.

For help determining your eligibility or for assistance with an application, please contact the Carrick Aland team on 07 4669 9800.

• On-Farm Emergency Water Infrastructure Rebate Scheme: Eligible farmers can claim up to 25% of expenses associated with new purchases and installation of on-farm water infrastructure up to a maximum of $25,000 https://www.agriculture.gov.au/water/national/on-farm-infrastructure-rebate

• Special Disaster Assistance Recovery Grants Scheme (Small Business): Funding of up to $10,000 (excluding GST) may be provided to eligible businesses to engage business consultants, mentors, coaches or advisory services to assist with business recovery following the monsoonal trough https://www.business.qld.gov.au/starting-business/advice-support/grants/disaster-recovery

• Rural Economic Development Grants Scheme: The Rural Economic Development (RED) Grants offered up to $250,000 in co-contribution grants to agribusiness projects to strengthen primary production sectors and bolster rural communities https://www.qrida.qld.gov.au/program/rural-economic-development-grants

• Back to Work Regional Employment Package: Support payments of up to $20,000 are available for regional QLD employers who hire eligible unemployed Queenslanders. https://backtowork.initiatives.qld.gov.au/for-employers/

• Back to Work South East Queensland: Support payments of up to $20,000 are available for SEQ employers who hire eligible unemployed Queenslanders https://backtowork.initiatives.qld.gov.au/for-employers/

Grant information is current and correct at the time of publishing. Please always check program details for application closing dates and other deadlines in the source information provided.

Carrick Aland is Australian Multiservice Firm of the Year which recognises the stand out firm in the Australian accounting industry that most effectively diversifies its offerings with services complementary to accounting and we are thrilled to be recipients of this highly prestigious award. Call us in Dalby, Toowoomba or Chinchilla on 07 4669 9800.

The post Queensland Government Grants appeared first on Carrick Aland.

It may seem daunting and overwhelming but like anything, if you have a professional guiding you along the way, small steps can lead to something great.

Step 1 | Seek advice

It’s hard to achieve great success without a team of experts behind you and your wealth is no different. Getting professional financial advice means your adviser can work through a myriad of options with you and implement a strategy aligned closely to your financial goals. Retirement planning, tax-effective super strategies, investments and estate planning? Your financial adviser can help.

Step 2 | Understand what role risk plays

One of the first things your financial adviser will do is work out your risk profile, which they will check at regular review meetings. Why? Because risk is related to return, and this will help drive the recommendations they make to you in terms of your financial plan. Generally, the higher the risk, the higher the return. While some people like higher risk investments because they have the potential to deliver higher returns, others prefer less risky investments. It’s important to remember that markets are cyclical and shares are a long-term investment so if the market wobbles, your financial adviser is best placed to keep an eye on your investments and determine if they remain aligned to your overall financial strategy.

Step 3 | Check your super

Your superannuation could be your largest asset, other than your own home. Given it’s such a large sum that you have been contributing to for years and years, and you are relying on it to sustain you in your retirement, isn’t it something you want to get right? Sure, it’s a long-term investment, but it’s important that it is invested in-line with your risk profile and financial goals. And you DO have options. As well as your employer contribution, you can kick in a bit extra through salary sacrificing. Contributing more to super will not only boost your account balance, it could reduce the amount of tax you pay.

Step 4 | Stick to a budget

Sounds boring, right? But a budget is not boring, it’s empowering!! Setting a realistic budget helps you understand where your money is going, what can be trimmed and where you can invest to save for your future. Understanding your overall financial health and having a budget aligned to your financial goals gives you a real understanding of the benefits of working with a financial adviser. You can start to see a real change in your circumstances. Having a budget doesn’t mean giving up things you want, it just means you plan for them and you make sure you can afford them BEFORE you spend the money. Setting and sticking to a budget is really the simplest way to help you get ahead.

Want to know more? Contact us.

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Eligible employers will receive payments of up to:

• $200 a week – for each eligible employee aged 16 to 29 years old
• $100 a week – for each eligible employee aged 30 to 35 years old.

To be eligible, your business must meet criteria including:

• holding an Australian Business Number (ABN)
• being registered for pay as you go (PAYG) withholding
• reporting through Single Touch Payroll
• being up to date with income tax and GST lodgment obligations
• not falling into any of the exclusion categories.

The new positions must increase both your employee headcount and payroll.

• The total employee headcount must increase by a minimum of one additional employee from the date of 30 September 2020.
• The payroll for the reporting period must increase compared to the three months to 6 October 2020.

There are specific dates relevant to both eligibility and payment.

You can register for the JobMaker Hiring Credit using ATO online services or the Business portal at any time until the program closes. As your registered tax or BAS agent, Carrick Aland can help you with your application so contact us on 07 4669 9800.

Related reading

New JobMaker Hiring Credit

Source: ATO

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In 2019, over 60% of dog and cat owners considered their pet as a member of their family – which means we want to treat them well and keep them in good health for a long and happy life, but at what cost?

In this article we take a look at the benefits of pets and the costs involved with keeping them – which should be considered in your household budget!

The benefits of pets

Many people boast the benefits of a pet – love, affection, happiness, joy, improved mental wellbeing, improved physical fitness and the chance to teach children about gentleness and responsibility. The Baker Medical Research Institution in Melbourne studied seniors with pets over a three-year period and found that a benefit of pets within the study group was lower blood pressure and cholesterol levels.

Early in 2020, during the height of the COVID-19 pandemic reports mentioned a spike in animal adoption as people sought to lockdown with a household pet for company. Animal shelters were pleased with increased adoption numbers, but hoped pets would not be a fad and be surrendered as people struggled with the economic downturn and loss of income – or could not care for their pet when they returned to an office environment.

Studies into the benefits of pets are clear, and we also know they are for keeps so we want to look after our furry friends and know we can continue to afford to do so.

The true cost of a pet

Research by Animal Medicines Australia (Pet Ownership in Australia 2019) discovered that a staggering $13 billion was spent on pet services and products in that year. Dog owners spent, on average, $1,627 per year on food, veterinary services, healthcare products and accessories.

ASIC’s Money Smart website predicts that vet care is the second-highest annual cost for dog and cat owners in their study with the Pet Ownership in Australia Report and they have developed a simple calculator on their website to help you understand, and budget for, the cost of a pet.

Pet insurance

Just as we protect our own income and lifestyle from a life event through a personal insurance plan, pet insurance can give you peace of mind knowing you will be financially protected in the event your pet suffers an unexpected illness or injury as it can lower the cost of surgery and medication significantly.

For dog owners, the right pet insurance policy can protect your dog against a portion of the costs associated with vet bills due to injury from accidents like dog attacks and car accidents. You can also choose a policy that includes illness coverage. Some policies can be paid either upfront, or in installments, which may help you to better manage your cashflow.

Talk to your adviser about including the cost of a pet in your budget

If you’re smart about your finances and upfront with yourself about the cost of a pet, you can keep your budget in-check and remain financially secure – even if unexpected pet expenses crop up if your furry friend becomes ill or injured.

Contact us to have a chat to a financial adviser about your household budget.

Sources:

[1] How many pets are there in Australia? – RSPCA
[2] https://moneysmart.gov.au/getting-a-pet
Additional source: https://www.rspcapetinsurance.org.au/why-pet-insurance-important

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It covers the JobKeeper fortnights between Monday 4 January and Sunday 28 March 2021.

You might be eligible for JobKeeper extension 2 even if you weren’t eligible for extension 1.

If you are eligible, you can enrol for the second JobKeeper extension until the end of the program.

To be eligible you need to show that your actual GST turnover declined in the December 2020 quarter relative to a ‘comparable period’. This is generally the December 2019 quarter.

There are different payment rates for eligible employees in the second JobKeeper extension. These are:

• Tier 1: $1,000 per fortnight (before tax)
• Tier 2: $650 per fortnight (before tax).

To support you over December and January some reporting dates have been extended:

• The December business monthly declaration is now due by 28 January 2021.
• For JobKeeper fortnights 21 and 22 (starting Monday 4 January 2021 and Monday 18 January 2021) you have until Sunday 31 January 2021 to meet the wage condition for your eligible employees.

Contact the team at Carrick Aland in Dalby, Toowoomba or Chinchilla on 07 4669 9800 or read more JobKeeper updates here.

Source: ATO

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Financial stress can be a major trigger for a lot of people, it is a big burden to carry around, but not one you need to carry alone. Speaking to a professional Financial Adviser can set your mind at ease once you have a plan in place and a financial goal to build towards.

Financial stress

In a report conducted by ME Bank in 2018, they found that many Australian households struggled to afford the basics:

• 17 per cent of households could not pay utilities on time
• 19 per cent surveyed had turned to family or friends for help
• 15 per cent surveyed had resorted to selling items to buy necessities
• 45 per cent of households were digging into more than 30 per cent of their disposable income to pay off the mortgage.

This can take a toll on physical and mental wellbeing.

The value of advice

The value of financial advice can take many forms. It could be the knowledge a professional is looking at your situation objectively, the peace of mind you get when you have a plan in place, or it could be the financial benefits you gain.

A study by CoreData for Fidelity in 2019 revealed that 88.5% of Australians receiving advice believe it gave them greater peace of mind, financially, and 86.2% of Australians receiving advice believe it gave them greater control over their financial situation.

Research by the Financial Services Council showed that people who received financial advice were almost $100,000 better off at retirement. That’s a big financial gain achieved by working with someone who provided advice and guidance around a retirement goal.

Financial advisers are required to complete 40 hours of Continuing Professional Development each year to remain qualified and compliant – ongoing learning and development is a huge part of a Financial Advisers’ value to clients!

Many Financial Advisers will often tell you that it is not their clients with the highest income that are the wealthiest. The clients who get advice early in their life, work at it, and take a sensible approach are usually the wealthy – and happy – ones.

Don’t let a past mistake deter you from a future goal

You don’t need to be wealthy or privileged to receive financial advice. It is accessible to every day Australians who are motivated to get ahead. You can book an introductory meeting with an adviser to better understand what they do and how they can help you – and this first meeting is at no cost. You also don’t need to feel that any financial mistakes you have made in the past mean that you won’t ever get ahead. Leave your mistake in the past, and talk to an adviser about your future.

Talk to us

Contact us to arrange a discussion with one of our financial planners.

Sources

• The ‘Better off with savings advice’, 16 February 2011, research shows that a 30 year old would save an additional $91,000, a 45 year old would save an additional $80,000 and a 60 year old would save $29,000 more than those without a financial adviser.
• https://www.fidelity.com.au/insights/investment-articles/the-value-of-advice/
• https://www.fasea.gov.au/continuing-professional-development
• https://www.abc.net.au/news/2018-08-06/tipping-point-as-more-households-dip-into-savings/10078724

The post What financial mistakes have you made? Could they have been avoided? appeared first on Carrick Aland.

Business viability, alignment and a sense of family equity must be able to be achieved

By Wayne Turner

The post Capital Gains Tax and succession appeared first on Carrick Aland.