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1. Keep records: It is critical to keep accurate ongoing records of all transactions. To claim you must have evidence of your income and expenses and maintain records throughout the life of the property ownership.  
2. Know your tax responsibilities: Your obligations and entitlements. Owner, joint tenants or tenants in common its essential you know your position and the associated reporting requirements.   
3. Take advantage of rental property tax deductions: Know what you can and can’t claim and the intricacies of each. 
4. Capital gains: When selling, understand the difference and tax implications of a gain or loss. 
5. Timing:  Understand when the best time to do property repairs
6. Contact Blackburn Accounting: We are professional accounting and taxation experts. We can help you get the best results for your investment.

There are key areas when preparing your tax return, and having an understanding of your tax obligations, and knowing what are legitimate deductions will help you avoid some common errors. The most common errors we see are in relation to: 

1. Apportioning expenses and income for co-owned properties 

2. Making sure the property is genuinely available for rent 

3. Getting initial repairs and capital improvements categorised correctly 

4. Claiming borrowing expenses over the correct period of time

5. Claiming the purchase capital costs components as an expense. 

6. Claiming the interest on your loan and issues with the refinancing of loans

7. Contact Blackburn Accounting, we are professional accounting and taxation experts. We can help you get the best results for your investment. 

Family-owned Businesses are the backbone of the Australian economy playing a vital role by providing 55% of private sector employment thus adding to the enterprise and fabric of our society (source Australian Family Business survey 2021).

Family Businesses come in an assortment of shapes and sizes covering a realm of industries, such as construction, retail, hospitality and tourism! You name it there will be a family-owned Business ready to provide quality goods and services!

Managing relationships is a crucial factor for the success of any business.  This is no exception to family-owned and run Businesses. It is crucial for the success and survival of these enterprises to have an understanding of the dynamics of human behaviours, such as emotions.

The very nature of family Business employing family members and 'outsiders' creates a mix of human dynamics, a mix, that if the unit is to function effectively requires balance, understanding and agreed 'rules' of behaviour.

Crossing boundaries, when we find the kitchen table becomes the boardroom mixing private and business life creates its own challenges. Family emotions and behaviours and the professional Business role if brought together can also cause tensions. Formal guidelines need to be in place to respond to these situations.

Positive emotions like love, affection and trust are the foundation of a strong unit. When negative emotions arise the workplace can quickly turn toxic. Conflicts can arise because of rivalry, resentment and jealousy. Conflicts that are left unresolved will erode and eat away at the health and success of your business. The answer lies in building strong harmonious working relationships, built on trust, respect, and common goals. Strong building blocks include the following.

9 Strategies for building harmonious working relationships

Read more …

Employers be aware!

The ATO is checking to ensure Employers are meeting their Super Guarantee Obligations

 The ATO has implemented measures as follows:

• The ATO may contact an employer if they are not meeting their SG obligations.
• Employers will be advised they need to lodge Superannuation Guarantee Charge (SGC) statements for the relevant periods. Regardless of whether the Employer has since paid the late or unpaid SG contributions to their employee’s fund, they still need to lodge an SGC statement and pay the SGC.
• With Superannuation funds now providing information to the ATO when they receive SG contributions for employees, the ATO is using this information, along with Single Touch Payroll (STP) reporting to identify employers who have paid some or all of their super contributions late or haven’t paid the correct amount by the due dates for their employees.

 Director Penalty Notices for Superannuation

• If a Company fails to pay Superannuation and also fails to lodge Superannuation Guarantee Charge Statements with the ATO within the required period, the Directors of the Company are automatically personally liable for unpaid superannuation.
• The ATO in these circumstances can issue a Director Penalty Notice to recover unpaid superannuation from the Directors and take recovery action to recover the superannuation owed from the Director(s). This type of Director Penalty Notice is commonly referred to as a Lockdown Director Penalty Notice.

Act now, and make sure your payments are in order and up to date.

Contact Blackburn Accounting if you have any questions or concerns, we are accredited accountants.