There is only 3 weeks and 3 days until Christmas – are you ready? This also leaves us with only 1 month of 2016 left, and then it is the start of a new year.
Launch into 2017 with a flying start
What are you doing now to ensure that 2017 is your best year yet? If you are already planning and thinking ahead, then you will find Cameron Brown’s The Thriving Year webinar a great help to set yourself up for 2017. I know how valuable Cameron’s work is in this space, so I’ve registered, and you can register yourself here:
Value Beyond Office Closure
Our office will be closed from Thursday 22 December 2016, and will reopen Monday 9 January 2017.
We wish you all a Merry Christmas and Happy New Year, and hope that you enjoy a break over this period.
Late News: Super Changes Receive Royal Assent
The changes announced in the May 2016 Budget, and subsequently changed by parliament when the Bill was introduced, have now received Royal Asset and are now law. Most of these changes take effect from 1 July 2017 so they won’t affect people immediately, however some planning may be required in order to take advantage of the existing rules as much as possible before 30 June 2017. An overview of the changes include:
- Reduction of concessional contributions cap to $25,000 (reduced from $30,000 and $35,000)
- Reduction of non-concessional contributions cap to $100,000 (reduced from $180,000)
- Reduction of Division 293 income threshold to $250,000
- Personal super contributions deduction will have the condition removed requiring salary and wages to be less than 10% of income
- Introduction of a transfer balance cap of $1.6 million for pension phase accounts
- Carry forward concessional contributions of unused caps over 5 years
- Removal of tax exempt status of earnings that support a transition to retirement income stream
If you are unsure of what the changes will mean for you, contact us at Value Beyond to discuss.
How Important is Intellectual Property To Your Business?
Intellectual property (IP) represents creations of the mind or intellect that can be legally owned. IP laws allow for protection through registrations such as
- patents
- trade marks
- copyright
- designs
- circuit layouts, and
- plant breeder’s rights.
Examples of common IP that can be found in most business include logos and other branding for a business. Almost every business has some form of IP that they need to protect. Ideas and unique creations can exist in every business. They’re important for long term financial success and can make you more competitive than your rivals. One common mistake that people make is to think that registering a business name protects that name from anyone else using it. The only true protection over a name is a registered trademark, registered with IP Australia.
How do I apply for a trade mark?
You can apply for a trade mark through the IP Australia website. Before you apply for a trade mark, you can search IP Australia’s Australian Trade Marks Online Search System (ATMOSS) to make sure the trade mark you want to use is available. This search will provide you with both currently registered trade marks and trade marks which are being applied for. You can also apply through TM Headstart (pre-application service) to help you assess the changes of your trade mark being successfully registered. If you are unsure of what or how to register, contact us at Value Beyond where we can assist, or put you in touch with a lawyer or trade mark attorney.
Patents
If you’ve developed a device, substance, method or process which is new, inventive and useful, a patent can be the best way to protect it. A patent is legally enforceable and gives you the exclusive right to commercially exploit your invention for the life of the patent. The only creations that can’t be patented are artistic creations, mathematical models, plans, schemes or mental processes. Once you’ve applied for a patent, the application is assesse against the necessary legal requirements. There are two types of patents in Australia:
- Standard patents – standard patents provide long term protection and control over an invention for up to 20 years from the day you file your complete application. Standard patens are normally processed within 14 months.
- Innovation patents – innovation patents are particularly useful for small to medium sized businesses seeking a first-to-market advantage over competitors. They’re designed to protect creations that are innovative ideas or creations, but may not necessarily be new inventions. This patent protects the idea for up to eight years and is generally granted within one month. innovation patents don’t allow you to legally stop others from copying your innovation unless you have your innovation patent examined.
More information on patents can be found on the IP Australia website.
Household Worker Insurance
Do you employ a household worker in Queensland, such as a nanny, cleaner, gardener or tradesperson?
If you do, it is compulsory for you to take out a Household Workers’ Insurance Policy to cover you against potential compensation costs if the worker is injured while working for you.
A householder worker you employ solely in and about, or in connection with your own private dwelling or the grounds of the dwelling. This may include individual sole trader contractors with ABN’s operating their own business.
The policy is $50 for 2 years, with all policies expiring 31 December 2016 for the current 2 year period. The definition of a worker is aligned with the ATO definition, and is defined as a person who works under a contract and, in relation to the work, is an employee for the purposes of assessment for PAYG withholding.
A worker must be an individual, so if you engage a company, trust or partnership the person will not be considered a worker. If you conduct business activities in a domestic residence, then the worker may be employed wholly or partly in connection with a business, in which case they will need to be insured under a WorkCover accident insurance policy (as is regularly the case for employees).
How do I cover my household workers?
You can apply online with WorkCover, which will cover you to 31 December 2016 for $25, or apply to commence from 1 January 2017 for 2 years at a cost of $50. If you have any further questions, please contact us at Value Beyond to discuss your situation.
Work Christmas Parties! And Tax….
Are you confused about when an expense is or isn’t entertainment, and whether it is subject to Fringe Benefits Tax (FBT)?
Leading into the Christmas season, hopefully this diagram can help you navigate the maze a little!
They key thing to consider is that if the purpose of the expense is entertainment, then there is no income tax deduction, regardless of the FBT outcome.
The main FBT exemption available is the minor and infrequent exemption – if the expense is for something that occurs irregularly, and is less than $300 per person, then it will be exempt from FBT. It doesn’t make the cost tax deductible, but it can reduce the tax burden when your are enjoying yourself with your staff.
If there is any doubt, give us a call to help you decipher the code!
Keys for Stronger Cyber Security
With more and more services and data moving online, it is more important than ever to ensure that you have adequate protection of your personal information to prevent issues such as fraud and theft. Some tips on keeping your business and personal information secure:
- Ensure your passwords are strong and secure – use multi-factor authentication where possible (email/sms codes), regularly change passwords and do not share them.
- Remove system access from people who no longer need it – Immediately remove access for people who no longer work for your business, or have changed positions and no longer require access.
- Ensure all devices have the latest available security updates – run weekly anti-virus and malware scans and have up to date security software.
- Be vigilant about what you share on social media – keep personal information private and be aware of who you are interacting with. Criminals can use certain combinations of your personal information to impersonate you to access money, apply for credit cards and bank loans, or commit crimes.
- Do not use USBs or external hard drives from an unfamiliar source – USBs and external hard drives may contain malware, which can infect your business computers without you noticing. Stolen information could be used to commit crimes, often in your or your business’ name.
- Use a spam filter on your email account – do not open any unsolicited messages. Be wary of downloading attachments or opening email links you receive, even if they are from a person or business you know.
- Secure your wireless network and be careful when using public wireless networks – avoid making online transactions while using public or complimentary wi-fi. Not all wi-fi points are secure, so by making online transactions on an unsecure network you can put your information and money at risk.
- Monitor your accounts for unusual activity or transactions – check your accounts, including bank account, digital portals and social media, for transactions or interactions you did not make, or content you did not post.
- Use a PO Box, or ensure your mail is secure – mail theft is a leading cause of information security breaches, so consider using a secure PO Box.
- Do not download programs or open attachments unless you know the program is legitimate – some programs contain malware that can infect your computer (including ransomware which locks your files until you pay a criminal), or be used to harvest your sensitive personal and business information.
Do not leave your information unattended and secure your electronic devices – secure your electronic devices where you are. Your information can be stolen in an instant and in some situations, you won’t even know it was stolen. Do not leave your information unattended, secure your electronic devise (such as phones and tablets) with passcodes, and securely store portable storage devices (such as thumb and hard drives) when not in use.
Upcoming Dates
1 December 2016
Payment of income tax for taxable large/medium taxpayers, companies and super funds – lodgement due 15 January 2017
21 December 2016
Lodgement and payment of monthly November 2016 activity statements
25 December 2016
Merry Christmas!
1 January 2017 Happy New Year!
28 January 2016
Deadline for making superannuation guarantee payments on behalf of employees for December 2016 quarter
21 February 2017
Lodgement and payment of monthly December 2016 activity statements
28 February 2017
Lodgement and payment of quarterly December 2016 activity statements whether lodged electronically by tax agent or by paper