Introducing Borro Borro is an award-winning brokerage specialising in Home Loans, Commercial Lending, SMSF Lending and Asset Finance. They work closely with families, professionals and business owners across Australia to structure lending that supports long-term wealth creation, not just short-term transactions. With an active presence in New South Wales, Victoria and Queensland, Borro now assists Collins Hume clients to ensure lending strategies align with broader tax, asset protection and investment objectives. Borro's philosophy is simple. Finance should be strategic, proactive and regularly reviewed. Borro acts as a long-term lending partner. That means structuring facilities correctly from day one, negotiating with lenders on clients’ behalf, and continually reviewing arrangements to ensure they remain competitive and aligned to evolving financial goals. Access to lenders is expected. Strategy, structure and ongoing advocacy are what set Borro apart. Meet Cara Giovinazzo Cara Giovinazzo is the Founder and Managing Director of Borro. With more than 15 years’ experience across Home Loans, Commercial Lending and SMSF Lending, she has built Borro into a recognised and awarded brokerage. Cara has extensive expertise in Residential, Commercial and SMSF Lending structures, working closely with accountants and financial advisers to ensure facilities are aligned with tax strategy, asset protection and long-term wealth objectives. Under her leadership, Borro has received significant industry recognition, including the MFAA Finance Broker Business Award and National finalist placements for Customer Service and Brokerage excellence just last year alone. Despite this growth, Cara remains actively involved in client strategy and professional collaboration, maintaining the high-touch, strategic approach Borro is known for. Borro's Areas of Expertise Home Loans Purchases, refinances, bridging and portfolio expansion structured with long-term flexibility and tax effectiveness in mind. Commercial Lending Commercial property acquisitions, development funding and business facilities aligned with growth objectives. SMSF Lending Specialist lending solutions for Self-Managed Super Funds, including Residential and Commercial property acquisitions structured in collaboration with accountants and advisers. Asset Finance Vehicle and equipment funding for business and personal use, structured to suit cash flow and accounting considerations. Refinancing and Strategic Reviews Ongoing assessment of lending facilities to ensure competitiveness and appropriate structure as market conditions evolve. Lending in the Current Environment Interest rates, credit policy and servicing models continue to evolve. In this environment, loan structure is as important as rate. Many borrowers remain on facilities that no longer suit their circumstances. Others may have opportunities to optimise their lending position through restructuring or review. Borro's role is to provide clarity by assessing lending holistically, considering income structure, entity arrangements, SMSF considerations, future investment plans and long-term objectives. For clients of Collins Hume, Borro welcomes a collaborative discussion to ensure your lending decisions align with broader tax, superannuation and financial planning strategies.

Against a backdrop of cost-of-living pressures and economic uncertainty, not-for-profits (NFPs) are operating in an increasingly complex environment. Funding pathways are under strain, compliance expectations are rising and operating costs continue to climb. While these pressures are real, they also present an opportunity for organisations to strengthen governance, rethink collaboration and build long-term financial resilience. Key considerations NFPs are navigating rising costs, funding uncertainty and higher public expectations, prompting a rethink of financial models, governance and internal capability Sector-wide insights highlight the importance of diversified income, stronger financial oversight and smarter use of tools such as cost analysis, scenario planning and technology A mission-led approach to financial planning – investing in people, systems and innovation – is critical to delivering sustainable impact. Insights from the recently released Not-for-Profit Sector Development Blueprint  underscore the scale of change facing the sector. The Blueprint outlines structural and regulatory shifts and sets out a vision for building capability and sustainability. What matters most, however, is how individual organisations respond through purposeful decisions about funding diversity, workforce strategy and financial systems that enable agility without losing sight of mission. Creating an environment where NFPs can thrive Regulatory and operational settings play a critical role in long-term financial health. Recent developments, including income tax exemption reporting for non-charitable NFPs  and proposed liquidity and financial management reforms in aged care, reflect a broader push for transparency and accountability. When approached strategically, compliance and reporting can become powerful tools to demonstrate impact, build trust and engage stakeholders. Many of the challenges highlighted in sector commentary – cost recovery, fair indexation and contract design – are not simply operational issues. They go to the heart of sustainability. Strengthening financial foundations often means actively diversifying income through a mix of grants, philanthropy, social enterprise, corporate partnerships and long-term giving strategies. Reviewing commercial activities through a mission-aligned lens, and making full use of available tax concessions, is equally important. Strong governance and forward planning underpin NFP efforts. A clear understanding of cost structures and pricing enables better decisions about service viability and impact. Tools such as cost allocation models, scenario analysis and investment planning give boards and executives greater confidence to act early, adapt quickly and maintain focus on outcomes. Building internal capability for sustainable impact Financial sustainability is closely linked to internal capability. Investment in governance, financial management and technology, particularly in payroll, automation and reporting, can significantly reduce administrative burden and free teams to focus on service delivery. Many NFPs are also streamlining operations, renegotiating supplier arrangements and exploring shared services to manage rising costs more effectively. Just as important is maintaining a people-led, purpose-driven culture. Mission drift can occur when short-term funding pressures or poorly aligned contracts push organisations into reactive decision-making. Strong governance helps keep purpose front and centre, supporting accountability to communities, funders and other stakeholders. Engaging boards, staff, volunteers and communities in shaping strategy strengthens relevance and trust. A skilled, supported workforce backed by appropriate systems, technology and capital investment is essential. Reviewing payroll processes, strengthening attraction and retention strategies and designing roles that align individual aspirations with organisational goals all contribute to long-term sustainability. Fostering an adaptive and resilient NFP sector With the operating environment continuing to evolve, resilience depends on adaptability. Expanding income streams through innovation in social enterprise, corporate engagement or philanthropy can help smooth funding volatility and future-proof operations. Rethinking how resources are used – from shared assets to technology-enabled service delivery – can also unlock efficiencies. Automation and emerging technologies, including AI, are increasingly being used to reduce manual work in finance and payroll, improve reporting and support better decision-making. This allows teams to spend more time on mission-critical activities. True resilience is not just about surviving change, but being prepared for it. Solid risk frameworks, adaptable strategies and a culture of continuous improvement position organisations to learn, evolve and thrive. Where to from here? Achieving financial sustainability today requires a proactive, mission-aligned approach to planning, funding and delivery. Understanding your cost base, strengthening governance, supporting your workforce and embracing smarter ways of operating are all part of the equation. If your NFP organisation is reassessing funding models, navigating regulatory change or exploring how technology can reduce pressure on your team, specialist NFP advisory support can make a meaningful difference. From financial modelling and payroll assurance to governance, systems and strategic reviews, the right advice helps NFPs build resilience and stay focused on impact, even during uncertain times. Collins Hume’s Not-for-Profit Advisory Services Collins Hume provides practical, sector-focused advisory services to help not-for-profits strengthen governance, improve financial sustainability and build organisational capability. Working closely with boards and leadership teams, we support strategy, risk and performance through tailored planning, financial modelling and governance support. Our collaborative, impact-driven approach helps NFPs navigate complexity, make confident decisions and deliver sustainable outcomes for the communities we serve. Take our NFP Risk Survey now and start making more informed, confident decisions for your NFP organisation’s future at https://www.collinshume.com/nfp  or contact Nathan McGrath on 02 6686 3000. Practical Strategies for NFP Growth, Governance and Sustainability Further reading Australian Taxation Office. (n.d.). NFP self-review return reporting requirement . https://www.ato.gov.au/businesses-and-organisations/not-for-profit-organisations/statements-and-returns/nfp-self-review-return-reporting-requirement Department of Social Services. (November 2024). Not-for-Profit Sector Development Blueprint.   https://www.dss.gov.au/panels-and-other-groups/resource/not-profit-sector-development-blueprint Grant Thornton Australia. (May 2025). Navigating financial sustainability in a complex not-for-profit landscape . Grant Thornton Insights. https://www.grantthornton.com.au/insights/blogs/navigating-financial-sustainability-in-a-complex-not-for-profit-landscape/

Aged Care Update by Shane Hayes at Family Aged Care Advocates We are now 4 months into the Government’s new (improved?) aged care reforms. There are opinions and numbers flying every which way.  I thought I’d try to collate where things are at with aged care here in Australia.  So here goes … Home care About 290,000 people are currently in receipt of a home care package … AND … 835,000 people are in receipt of Commonwealth Home Support Programme (CHSP) services Currently around 350,000 people are waiting for some help at home Wait times from initial My Aged Care Call to assessment to actually receiving funds / getting any help at home is around 12 + months 4,800 people have died in hospital (2024/2025) waiting for help in their home … CHSP far larger program than home care packages – not part of the recent aged care reforms There are over 1,000 home care providers to choose from Currently just over $15,000 per person in unspent home care package funds Fees paid to providers has decreased from around 30 to 35% … to 10% as part of the recent aged care reforms Hourly service rates have increased to compensate Cleaning, allied health, transport, home maintenance and social support are the top 5 home care services provided / wanted by people Average client hours per week is 5 to 6 hours Medium-sized (1,000 to 2,500 clients) home care providers are the most profitable. Residential care About 200,000 people in residential care now – demand will double over next 20 years About 740 residential care providers in Australia – all at almost full occupancy 1 in 2 providers are operating at a loss – especially those facilities under 120 beds Recent aged care changes designed to improve provider financials by increasing resident paid fees and room prices Average residential care room prices approx. ¾ the median house price Need 10,000 new beds per year over the next 20 years to meet demand … that’s 1 x 100 bed facility every 3 to 4 days (currently 1,000 new beds a year are actually being built). A concluding statement from me Many people simply don’t want to think … or talk about getting older and maybe needing some help. But if / when you need things to move fast … the aged care system moves slow and that can be a real problem. But there are things you can easily do now … just in case. How can Family Aged Care Advocates help you Family Aged Care Advocates can help you with the thinking and start the conversation.  Give us a call on 0411 264 002 or email Shane Hayes to organise a day and time for a discussion … at your home. Caring personally and challenging directly … it’s ALL about YOU

The impact of COVID-19 has been felt very differently from region to region. Fortunes vary wildly between business operators subject to ongoing lockdowns and trading impediments to those benefiting from the "new normal". For those severely impacted by COVID-19, JobKeeper might be available. The third and final phase of JobKeeper started on 4 January and runs through until 28 March 2021. To receive JobKeeper, employers need to have experienced a sufficient downturn (a 30% threshold applies to most entities) in their actual GST turnover in the December 2020 quarter compared to the same period in 2019 – although alternative tests exist. The payment rate for employers is $1,000 per fortnight per employee or business participant who worked 80 hours or more over a specific 28 day period, or $650 per fortnight per employee or business participant for those who worked less than 80 hours in the relevant period – a reduction from previous JobKeeper payment periods. Assessing eligibility, managing the decline in turnover test, calculating GST turnover for the decline in turnover test, and managing the 80 working hours requirement for the differential payment rates can all be complex. We've outlined a few of the key issues for employers in need of relief: My business did not previously qualify for JobKeeper. Can I access it now? Your business can potentially access JobKeeper for the period between 4 January 2021 and 28 March 2021 even if it didn't qualify for JobKeeper for the period between 28 September 2020 and 3 January 2021 or for the original JobKeeper scheme period that ended on 27 September 2020. The fact that you have not previously enrolled in JobKeeper or met the eligibility conditions prior to the start of the latest phase of the JobKeeper scheme should not prevent you from accessing JobKeeper from 4 January 2021. For example, if you could not pass the decline in turnover test for the September 2020 quarter this does not automatically prevent you from being able to access JobKeeper for the period between 4 January 2021 and 28 March 2021 as long as your business can pass the decline in turnover test for the December 2020 quarter. We have been in JobKeeper previously. Do my employees need to complete a new nomination form for JobKeeper from 4 January 2021? Employees should not need to provide you with a new enrolment form if they have previously provided a valid nomination to you. You should ensure that you have a copy of the original form on file and a copy of the notification that you sent to the employee confirming that their details were provided to the ATO and advising them of the payment rate that applies to them. What's included in GST Turnover for the decline in turnover test? To access JobKeeper, employers need to satisfy a decline in turnover test. The decline in turnover test for JobKeeper from 4 January 2021 compares actual GST turnover in the December 2020 quarter (October 2020, November 2020 and December 2020) to the same period in 2019 (alternative tests are available in some instances where this comparison is not appropriate). Understandably, we're receiving lots of questions about what is included in GST turnover and how it is calculated. In general, if your business is registered for GST you must use the same method that is used for GST reporting purposes. For example, if your business is registered for GST on a cash basis then a cash basis needs to be used to calculate current GST turnover for the purpose of the JobKeeper decline in turnover test for the December 2020 quarter. Your GST turnover includes proceeds from the sale of capital assets, such as property, equipment or licenses, unless the sale is input taxed. Current GST turnover includes taxable and GST-free supplies, but should exclude input taxed supplies such as residential rental income and financial supplies like dividends, interest etc. JobKeeper and ATO cash flow boost payments should be excluded from the calculation along with other payments that don't represent consideration for a supply made by the business such as certain State based grants. If your business has received payments in advance, then you will normally need to recognise these payments as part of the GST turnover calculation, even if the goods or services have not been provided to the customer yet. For example, if your business accounts for GST on a cash basis then you need to recognise the payment for GST purposes as it is received and include it in your GST turnover calculation, even if the services haven't been provided. There are some special rules where security deposits apply to defer the GST liability but these rules are reasonably limited in their application. And, if your business is part of a GST group, each entity needs to calculate its GST turnover as if it were not part of the group. That is, supplies made by another group member should not be included in GST turnover for the purposes of the decline in turnover test. When I stood down my employees, they started working for someone else to get by. Can they still receive JobKeeper? To access JobKeeper, employees need to have been either full-time, part-time or long terms casuals of your business on either 1 March 2020 or 1 July 2020. If the employment relationship remains intact (their employment has not been terminated and they haven't accessed JobKeeper from another business), then the fact that the employee is performing some work for another entity doesn't necessarily prevent ongoing access to JobKeeper with you, their original employer. Of course, the employee can only receive JobKeeper from one employer and there are a number of eligibility conditions that need to be satisfied.

Super Retail Group - owner of the Supercheap Auto, Rebel, BCF and Macpac brands - handed back $1.7 million in JobKeeper payments in January after releasing a trading update showing sales growth of 23% to December 2020. Toyota announced that it will return $18 million in JobKeeper payments after a record fourth quarter. And, Domino's Pizza has also handed back $792,000 of JobKeeper payments. Toyota, Super Retail Group, and Domino's were not obliged to hand back JobKeeper. Under the rules at the time, the companies qualified to access the payment. However, Toyota CEO Matthew Callachor said, "Like most businesses, Toyota faced an extremely uncertain future when the COVID-19 health crisis developed into an economic crisis …We claimed JobKeeper payments to help support the job security of almost 1,400 Toyota employees around Australia ….In the end, we were very fortunate to weather the storm better than most, so our management and board decided that returning JobKeeper payments was the right thing to do as a responsible corporate citizen." Domino's Group CEO and Managing Director, Don Meij said, "We appreciate the availability and support of JobKeeper during a period of significant uncertainty. That period has passed, the assistance package has served its purpose, and we return it to Australian taxpayers with our thanks." Companies that received JobKeeper and subsequently paid dividends to shareholders and executive bonuses have come under particular scrutiny, not just by the regulators but by public opinion. The first phase of JobKeeper did not require business to prove that they had actually suffered a downturn in revenue, just have evidence turnover was likely to drop in a particular month or quarter. For many businesses, early trends indicated that the pandemic would have a devastating impact on revenue. Many also took action and prevented the trend entrenching by actioning plans to protect their workforce and revenue. The fact that business improved, does not impact on initial JobKeeper eligibility. In the first phase of JobKeeper, employers were not obliged to stop JobKeeper payments if trends improved. Speaking at the Senate Select Committee on COVID-19, ATO Deputy Commissioner Jeremey Hirschhorn stated that the ATO rejected some $180 million in JobKeeper claims pre-issuance. Approximately, $340 million in overpayments have been identified. Of these, $50 million were honest mistakes and will not be clawed back where the payment had been passed on to the employee. Where the ATO determines that JobKeeper overpayments need to be repaid, they will contact you and let you know the amount and how the repayment should be made. Administrative penalties generally will not apply unless there is evidence of a deliberate attempt to manipulate the circumstances to gain the payment.

A recent article published in the Harvard Business Review by Bain & Co suggests that the pandemic has widened the productivity gap between top-performing companies. The article stated, "Some have remained remarkably productive during the Covid-era, capitalising on the latest technology to collaborate effectively and efficiently. Most, however, are less productive now than they were 12 months ago. The key difference between the best and the rest is how successful they were at managing the scarce time, talent, and energy of their workforces before Covid-19." Atlassian data scientists also crunched the numbers on the intensity and length of work days of software users during the pandemic. The results found that workdays were longer with a general inability to separate work and home life, and workers were working longer hours (predominantly because during lockdowns, there is no set start and end of the workday routine). Interestingly, the average length of a day for Australian workers is shorter than our international peers by up to an hour pre pandemic. Australia's average working day is around 6.8 active hours whereas the US is close to 7.2. However, working longer does not mean working more productively. Atlassian's research shows that while the length of the working day increased and the intensity of work increased earlier and later in the day, intensity during "normal" hours generally decreased. So, how do we measure productivity? Bain & Co suggests: The best companies have minimised wasted time and kept employees focused; the rest have not. Those that were able to collaborate effectively with team members and customers pre pandemic fared the best. Poor collaboration and inefficient work practices reduce productivity. The best have capitalised on changing work patterns to access difference-making talent (they acquire, develop, team, and lead scarce, difference-making talent). The best have found ways to engage and inspire their employees. Research shows an engaged employee is 45% more productive than one that is merely a satisfied worker. The productivity gap was always there. The pandemic merely brought the gap into stark contrast. Collins Hume Accountants and Business Advisers | Ballina & Byron Bay NSW | Ph 02 6686 3000

We're often asked the best way to sell a business There are two key components at play in the sale of a business; structuring the transaction and positioning the business to the market. Both elements are important and can significantly impact your result. Structuring the transaction covers things such as pricing the business, the terms and conditions attaching to the sale, key terms in the contract, and ensuring the transaction structure is as tax effective as possible. Much of the structuring is about ensuring the vendors secure the most efficient and effective outcome from the sale. It is about maximising vendor position. Positioning the business for sale is all about ensuring that you achieve a sale and that maximises your price. It covers areas such as ensuring there are no hurdles within the business that will limit its saleability, identifying the competitive position of the business within its market segment, ensuring that operating performance is as good as it can be and that the business benchmarks well in its market. Positioning also includes identifying the best time to take the business to the market, how to take it to the market, and who the most likely buyers will be. Positioning is about doing everything needed to maximise the probability of a sale occurring, whereas structuring is about getting the best outcome from a transaction once it has occurred. A lot of people make the mistake of spending most of their energy on the structuring of the transaction. It is important but it only becomes important if the sale is achieved. To do this, you need to get an objective assessment of how the business compares in its market, its competitive position, and what, if any, impediments to sale exist – all the things a buyer will look at and look for when they assess your business. Most buyers believe that we are currently in a buyer's market and will try to drive down price expectations. Whether or not you are in a buyer's market depends on your industry segment but regardless of this, you are in a competitive market. Buyers may be comparing your business with similar businesses but also opportunities in other industry segments. Securing a sale at the best possible price is about having your business positioned for sale. Preparation time is needed to achieve this so talk to us well in advance of putting your business on the market. Many business owners believe it will be easy to sell their business for the price they want. However, with many more businesses for sale and fewer buyers, smart business owners do not wait and see; they take control of their own future by checking the value of their business on a regular basis as part of their family wealth creation strategy and reduce any chance of what we call 'value gap' risk occurring. Working closely with you as your Value Improvement Business Advisers, we look at your whole business (not just the numbers). We also cross-check our assessment against the largest and most accurate valuation benchmark data to validate our calculation. Call our team in Ballina or Byron Bay on 02 6686 3000.

The first COVID-19 vaccination in Australia rolled out on 21 February 2021. With the rollout, comes a thorny question for employers about individual rights, workplace health and safety, and vaccination enforcement. The rollout, managed in phases, is expected to complete by the end of 2021 (you can check your eligibility here). While the Australian Government's COVID-19 vaccination policy states that vaccination "is not mandatory and individuals may choose not to vaccinate", this does not mean that there will not be punitive initiatives for those failing to vaccinate including proof of vaccination to move across borders. Australia for example already has a precedent with "No Jab, No Play" policies in place to access child care payments (the ability to object to vaccination on non-medical grounds was removed from 1 January 2016). There are currently no laws or public health orders in Australia that specifically enable employers to require their employees to be vaccinated against coronavirus. However, it is likely that in some circumstances an employer may require an employee to be vaccinated. Can an employer require an employee to be vaccinated? For most employers, probably not. The Fair Work Ombudsman, however, states that there are "limited circumstances where an employer may require their employees to be vaccinated." These are: The State or Territory Government enacts a public health order requiring the vaccination of workers (for example, in identified high-risk workplaces or industries). An agreement or contract requires it – some employment agreements already require employees to be vaccinated and where these clauses exist, they will need to be reviewed to determine if they also apply to the COVID-19 vaccine. A lawful and reasonable direction – employers are able to issue a direction for employees to be vaccinated but whether that direction is lawful and reasonable will be assessed on a case by case basis. It's more likely a direction will be "reasonable" where, for example, there is an elevated risk such as border control and quarantine facilities, or where employees have contact with vulnerable people such as those working in health care or aged care. If an employee refuses to be vaccinated on non-medical grounds in a workplace that requires it, standard protocols apply. That is, the employer will need to follow through with disciplinary action - there are no special provisions that enable suspensions or stand-downs for employees who refuse to be vaccinated against COVID-19. Can an employer require evidence of vaccination? In general, an employer can only require evidence of vaccination if they have a lawful and reasonable reason to do so. Requesting access to medical records and storing data of an individual's medical information will also have privacy implications (see the Office of the Information Commissioner for more details). Your immunisation history is already accessible through your myGov account when it is linked to Medicare. The Express Plus Medicare app enables you to access this information on your phone. More details are expected shortly on Australia's "vaccine passport" that will enable the quick identification of an individual's vaccination status. Israel's "Green Pass" for example uses a simple QR code but there are already concerns that it is easily forged. Can we require customers to be vaccinated? Some high-risk industries are likely to require customers to be vaccinated or where they cannot be vaccinated, subject to heightened measures such as quarantine and/or testing. Qantas CEO Alan Joyce recently told A Current Affair, "We are looking at changing our terms and conditions to say, for international travellers, that we will ask people to have a vaccination before they can get on the aircraft." Qantas is expected to release its position middle-to-end 2021 on domestic and international travel. For employers in high-risk industries, it's important to maintain a conversation with employees and consult an industrial relations specialist if your workplace intends to require vaccinations for employees and/or customers. The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

The full company tax rate is 30% and the lower company tax rate is 27.5%. This information shows when to apply the lower rate and how to work out franking credits. Company tax rates apply to: companies corporate unit trusts public trading trusts. The full company tax rate of 30% applies to all companies that are not eligible for the lower company tax rate. Eligibility for the lower company tax rate depends on whether you are a: base rate entity from the 2017–18 to 2021–22 income years small business entity for the 2015–16 and 2016–17 income years. Base rate entity company tax rate From the 2017–18 to 2019–20 income years, companies that are base rate entities must apply the lower 27.5% company tax rate. The rate will then reduce to 26% in the 2020–21 income year and 25% in the 2021–22 income year. A base rate entity is a company that both: has an aggregated turnover less than the aggregated turnover threshold – which is $25 million for the 2017–18 income year and $50 million from the 2018–19 income year 80% or less of their assessable income is base rate entity passive income – this replaces the requirement to be carrying on a business. Base rate entity passive income is: corporate distributions and franking credits on these distributions royalties and rent interest income (some exceptions apply) gains on qualifying securities a net capital gain an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income. Small business entity company tax rate You need to be a small business entity to be eligible for the lower company tax rate in the 2015–16 and 2016–17 income years. For the 2016–17 income year, the lower company tax rate is 27.5%. This lower rate applies to small businesses that both: have an aggregated turnover less than $10 million are carrying on a business for all or part of the year. For the 2015–16 income year, the lower company tax rate was 28.5% for small business entities with an aggregated turnover less than $2 million and carrying on a business for all or part of the year. For the 2017–18 income year and onwards, you need to be a base rate entity, rather than a small business entity to be eligible for the lower tax rate. Not-for-profit companies If you are a not-for-profit company, you don't pay tax on the first $416 of your taxable income. Tax is then shaded in at a rate of 55% of the excess over $416 until the tax on your taxable income effectively equals the company tax rate. You are then taxed at the company tax rate. As the lower company tax rate is 27.5% from 2016–17 to 2019–20, the shade in limit for not-for-profit companies has been reduced to $831 if they are: base rate entities from the 2017–18 to 2019–20 income years small business entities for the 2016–17 income year. Maximum franking credits To work out the company tax rate for franking your distributions, otherwise referred to as 'corporate tax rate for imputation purposes', you need to assume your aggregated turnover, assessable income, and base rate entity passive income will be the same as the previous income year. For the 2019–20 income year, your corporate tax rate for imputation purposes is 27.5% if either: your aggregated turnover in the 2018–19 income year was less than $50 million, and 80% or less of your assessable income was base rate entity passive income the entity didn't exist in the previous income year. Otherwise, your corporate tax rate for imputation purposes is 30%. Our proactive approach ensures we build solid relationships and deliver a consistent service all year round, not just at tax time. Contact Collins Hume in Ballina or Byron Bay on 02 6686 3000, or read more at Services for Business . Source: ATO

Directors will be required to register for a unique identification number that they will keep for life, much like a tax file number under a rewrite of Australia's business registers. ASIC does not currently verify the identity of directors and Elvis Presley and Bob Marley could "quite possibly" be registered. Or at least that was the view of former ASIC Commissioner John Price at a 2020 Parliamentary inquiry. The introduction of the Director Identification Number (DIN) regime is part of the Government's Modernisation of Business Registers (MBR) Program creating greater transparency and tracking the movements of individuals over time. The MBR will unify the Australian Business Register and 31 ASIC business registers, including the register of companies. In effect, the system will create one source of truth across Government agencies for individuals and entities and will be managed by the Australian Taxation Office (ATO). Why a director ID? Under the new regime, all directors will need to have their identity confirmed when they consent to being a director, so no more Elvis Presley unless your name really is Elvis Presley. You will then keep this number permanently, even if you cease to be a director – the number will not be issued to another person. The result is an ID system that traces a director's relationships across companies, enabling better tracking of directors of failed companies and prevents the use of fictitious identities. The target is illegal phoenixing. Phoenixing is when directors transfer the assets of an existing company to a new company without paying full value, leaving the debts with the old company. Once the assets have been transferred, the old company is liquidated leaving creditors out of pocket. Phoenixing has a ripple effect in the community and is estimated to cost between $2.9 billion and $5.1 billion annually. The real face of the impact is to the unpaid creditors – mostly customers and contractors, unpaid employee entitlements, and the broader cost through unpaid taxes. Once the assets are transferred to a new company, the directors then continue to operate the business in a new entity. They just set aside the problems and start again with the benefit of the good parts of their old company as a foundation. Who will need a director ID? The DIN is very broad and introduces the concept of an 'eligible officer'. An eligible officer is a director who: is appointed to the position of director, or is appointed to the position of an alternate director and is acting in that capacity (regardless of the name that is given to that position); or any other officer of the registered body who is an officer of a kind prescribed by the regulations. The definition picks up the concept of 'shadow directors' who act in the capacity of directors through influence and control but are not directors by title. That is, its feasible that someone who is not a director but is seen to be making decisions on behalf of the company can be held to account. An eligible officer is a director of a: company registered foreign company registered Australian body under the Corporations Act such as an association or a charity, or an Aboriginal and Torres Strait Islander corporation (which are registered under the CATSI Act). When the system opens, directors will need to apply for an ID through the Australian Business Register system through their myGov account. If you do not have a myGov account, it would be a good idea to create an account and become familiar with how it works. Your myGov account creates your digital credentials to verify who you are. When you register, you will need to declare that the information you have provided is true and correct, you are or will be an eligible officer within 12 months, and you do not have an existing ID (or applied for one). Existing directors will have until 30 November 2022 to acquire a DIN (30 November 2023 for directors of corporations under CATSI). For the first year of the program, new directors will have 28 days to apply for a DIN from the time of their appointment. From the first year onwards, you will need to have a DIN prior to being appointed as a director. Unlike the existing system that merely registers information, the new regime will verify a director's information and may utilise other sources of information such as your driver's license and/or link to your client record held by the ATO. The problem of directors in name only The new regime will not overcome one problem area – where naive participants are encouraged to become directors in name only such as elderly parents, or a spouse. That is, the identity of that person is legitimate but their role as a director is merely window dressing and they do not fulfil the role as active participants - a situation that is not uncommon in family groups. It's important that anyone agreeing to be a director understands the implications. Being a director is not just a title; it is a responsibility. At a financial level, directors are responsible for ensuring that the company does not trade while insolvent. The by-product of this is that the directors may be held personally liable for the debt incurred. The director penalty regime has also been tightened up in recent years to ensure that directors are personally liable for PAYG withholding, net GST and superannuation guarantee charge liability if the company fails to meet its obligations by the due date. For many small businesses, the directors are also often personally responsible for company loans secured against property such as the family home. Failing to perform your duties as a director is a criminal offence with fines of up to $200,000 and five years in prison. Ignorance is not a legal defence. Don't sign anything unless you understand the consequences. Better monitoring and bigger teeth for ASIC The introduction of a structured director verification system comes with greater controls and influence by the regulators to enforce the law with civil penalties of up to $200,000 in situations which include: Failure to register within the relevant timeframes Applying for multiple DINs Misrepresenting a DIN, and Accessorial liability where someone seeks to pervert the system The failure to register when required is a strict liability and the regulator does not have to prove fault, they will simply issue an infringement notice. Related article: What's the all the din about DINs To have a discussion with us on any aspect of the proposed introduction of the director identification numbers, please contact Collins Hume in Ballina or Byron Bay on 02 6686 3000.

The 2021-22 Federal Budget is a balancing act between a better than anticipated deficit ($106 bn), an impending election, and the need to invest in the long term. It is also a human budget (cynics would say voter-focussed), with $17.7 billion dedicated to aged care, more money in the pockets of low-income earners, the COVID vaccine rollout, $2 billion for mental health, a women's economic package including a child care subsidy increase and funding to prevent violence, and a Royal Commission into defence and veteran suicide. Key initiatives include: Extension of temporary full expensing and loss-carry back providing immediate deductions for business investment in capital assets Introduction of a 'patent box' offering tax concessions on income derived from medical and biotech patents Tax and investment incentives for the digital economy Extension of the low and middle-income tax offset Child care subsidy increase for families with multiple children $17.7 billion over 5 years to reform aged care $2.3 billion on mental health infrastructure and programs New and extended homeownership programs for first homeowners and single parents The Collins Hume team are available to assist you to capitalise on any of the Budget measures or minimise your risk. As always, the detail is important so please let us know if we can assist. We'll keep you up to date as the detail of these measures comes to hand.

Action Required – Reduce Your 2021 Tax With the end of the financial year approaching quickly, NOW is the time to discuss with us the actions you can take before 30 June 2021 to reduce your tax and grow your wealth. Many business owners have reduced their 2021 PAYG instalments to Nil during the COVID-19 period, but with JobKeeper payments you may find that you have generated profits this year and you may have tax to plan. For 2021, key priorities are likely to include: Maximising superannuation contributions without exceeding the relevant limits Bringing forward deductible expenses Deferring taxable income Managing capital gains Using a Family Trust or a "bucket company" to cap your tax at 26% or 30% Imagine what you could do with your tax saved: Reduce your home loan Top up your Super Save for a holiday (when we can all travel again!) Deposit for an Investment Property Pay for your children's education Upgrade your Car Act now Contact us now on 02 6686 3000 to book your tax planning meeting with us! The sooner we get started, the sooner we can help you save tax - well before 30 June 2021 allowing enough time to implement tax saving strategies. For more information, check out our free tax minimisation guides: Minimise Your 2021 Business Tax Minimise Your 2021 Personal Tax We look forward to hearing from you soon!