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Work from home expenses under scrutiny and the perils of browsing Facebook If you worked from home during lockdown and spent money on work related items that were not reimbursed by your business, you might be able to claim some of these expenses as a deduction – but not everything you purchase can be claimed. The ATO has stated that it is looking very closely at work related deductions that are being claimed. If you are claiming your expenses, there are three methods you can use: An 80 cents per hour short cut method (you will need to have evidence of hours worked like a timesheet or diary) The 52 cents per hour method (which excludes phone, internet, or the decline in value of equipment which are all claimed separately), or The actual expenses method. The ATO is particularly interested in those using the 'actual expenses' method. To be able to claim a work related expense, it needs to be directly related to the work you do and how you earn your income. The ATO has highlighted four ineligible expenses that are being claimed: Personal expenses such as coffee, tea and toilet paper Expenses related to a child's education, such as online learning courses or laptops Claiming large expenses up-front (instead of claiming depreciation for assets), and Occupancy expenses such as rent, mortgage interest, property insurance, and land taxes and rates, that cannot generally be claimed by employees working from home. A recent case before the AAT shows how determined the ATO is to crackdown on work related deductions being claimed where there is not a satisfactory nexus between the expense being claimed and the taxpayer's work. In this case, the taxpayer had claimed car and clothing expenses, and home internet and mobile phone costs. The ATO conceded the car costs but on a reduced deduction. When it came to clothing expenses the ATO conceded that a deduction could be claimed for gloves and a beanie on the basis that the taxpayer worked in cold conditions and that these were protective clothing needed for the job. However, the AAT refused to allow a deduction for the cost of a pair of socks on the basis that they were not protective in nature in their own right – yes, it really does get this detailed. The taxpayer had also claimed 100% of his home internet expenses but the ATO reviewed this claim and reduced the deductible amount to $50 - a record of the family's home internet usage demonstrated the internet was used to browse Facebook amongst other non-work related sites. One of the other issues to come out of this case was the importance of record keeping. If you are going to claim work related expenses, then ensure you have the records to prove your claim. If anything in this update is a priority for you, please feel free to contact Collins Hume in Ballina or Byron Bay immediately for assistance.

Collins Hume celebrates John Collins' retirement Collins Hume team, alumni, clients and friends gathered at Ballina RSL on 16 June to wish Founding Partner John Collins a happy retirement. John, an accounting and fishing stalwart in Ballina, officially retires from the Partnership on 30 June 2021. Collins Hume CEO, and MC, Christopher Atkinson started proceedings by saluting John's incredible public practice career. He said that John had always been ahead of his time, having initiated tax planning, flexible working arrangements and client nurturing well before the accounting profession today. From rubber snakes in files to a fox whistle in the car exhaust, no one was safe from John. The room was regaled with numerous tales about his practical jokes over the years. In her tribute, John's current PA, Carol Holton, mentioned a hidden cracker gag that he thwarted before it went bang. Being a master of practical jokes, John had detected what was going on and told Carol that she had set it up to fail, only after she had sweated long enough first! John then enjoyed seeing a video collage of well wishers and reminiscences from clients, friends and retired Collins Hume Partner, John Hume. As a parting gift, John received two portraits from local award-winning caricaturist, Ron Atkinson. "When I left the ATO and started Collins Hume in 1980 I had one client and a part-time typist," said John. "Today Collins Hume has five Partners, some 20 staff and clients all around Australia and the world. I am so proud of the legacy I have helped create in Ballina." John also thanked his wife, Lynn, for her enduring support throughout his career. He looks forward to continuing his association with Ballina Angling Club, caravanning and racking up some serious pinball scores in his retirement. Partners Christopher Atkinson, Kelly Crethar, Jamie Doyle and Peter Fowler look forward to steering Collins Hume ahead in the future, with teams in Ballina and Byron Bay. Read more about John at Our Team. Special thanks goes to Selina Atkinson and Carol Holton for organising such a wonderful celebration of John's career! Copyright 2021. Collins Hume Accountants & Business Advisers Ballina & Byron Bay

EOFY planning tips with Christopher Atkinson from Collins Hume. The next two articles that follow this post pertain to end of financial year changes, reminders and actions for business owners.

Chris Atkinson explains what tax planning is and the benefits.

Now's the time to review what strategies you can use to minimise your tax before 30 June 2021. Imagine what you could do with tax saved? Reduce your home loan Top up your super Save for a holiday (when we can travel again) Deposit for an Investment Property Pay for your children’s education Upgrade your Car The most important thing to remember is that there is no point in spending money to get a tax deduction unless it’s going to result in something useful for you.

Imagine what you could do with tax saved? Reduce your home loan Top up your super Save for a holiday (when we can travel again!) Deposit for an Investment Property Pay for your children’s education Upgrade your Car Here’s a guide to the strategies you can use to minimise your business tax.

Collins Hume's teams in Ballina and Byron Bay raised more than $4,000 in last weekend's Byron Coast 2021 Charity Walk. With the Westpac Rescue Helicopter providing vital 24-7 aeromedical search and rescue services across the Northern NSW region, Collins Hume was able to raise $4,833 thanks to the support and generosity of our families, clients and the wider community. Donning t-shirts specially designed for the day and with bags of enthusiasm, Collins Hume set out early in three teams covering 12km, 24km and 36km courses. Collins Hume Accountant and fundraising organiser Kim Roy has since crunched the numbers. "On the weekend we walked a combined total of 322km which equates to approximately 467,500 steps," says Kim. "Thus far we have raised $4,833 which, if we were all in one team, would make us the second-highest fundraiser." Make no mistake, the Byron Coast 2021 Charity Walk was no cakewalk, but the effort put in by all the Collins Hume team paid off so was certainly well worth it. "There are a lot of blisters and a few tired legs but overall the atmosphere on the weekend was on a real high," Kim added. "Everyone was so proud of themselves and that we were able to push past what we thought we could do." "I'm really proud to be part of a team of 'out there' individuals who are willing to get up from behind the desk and have some fun while raising money for a great cause." Every dollar raised helps to keep the Rescue Helicopter flying 24-7 for those in need. You can still support Collins Hume's fundraising efforts to keep helicopters and crews ready to respond when needed by following the sponsorship page links here. To find out more about how Collins Hume's gets involved and gives back to our community, please read more at Our Giving Impact.

Chris Atkinson, our CEO, talks about the Collins Hume mission.

My name is Chris Atkinson, and I’m the CEO here at Collins Hume. Our core values aren't just typing on a website. These really are what we are. We documented these core values; it was easy. Collins Hume’s core values are: Lifestyle. Fun and enjoyment. Balance your business with your life. Inspiring. Today, every day, we will inspire others to achieve their best. Caring. We care for our team, we care for our clients, and everyone we connect with. Giving. We always give more than we receive. See us in the Ballina or Byron Bay office, or reach out over the phone.

The uncertainty of last year is in the rearview, but a bumpy road still lies ahead More than ever, businesses need to understand and manage their finances to navigate the new terrain of 2021, not just to survive but thrive. 2020 lost some great companies, and the years to come will take more. So how can you begin protecting yourself and your investments when the landscape is still shifting below your feet? Here are some essential tips to consider: Know your tolerance for financial risk According to Yelp.com's Local Economic Impact Report, for more than 97,966 businesses, 2020 caught them off guard, causing them to close their doors permanently. Though traffic is picking up for some, there is no promise that revenue will get better for all businesses. Are you ready to put it all on the line? If you are, there is success out there. If you're not, you may need to consider a strategic pivot seriously. OK, now that we have gotten that out of the way. Let's move on to some positive action steps. Build a budget We know we can not predict what lies ahead. However, we can learn from the past, make educated assumptions, and create a budget for the possibility of a tumultuous 2021. To help plan a tentative budget, here are a few questions you should ask: What was revenue like in January and February of 2020? How did it compare to profits in April of 2020? What do you experience as the pandemic restrictions ease/tighten? Do seasonal changes affect your revenue? Do you have revenue streams that continue to grow? Have you increased or decreased expenses during the pandemic? No one knows what's in store for business owners in 2021, but we do know that to survive 2021, business owners need to understand the financial basics for their business. Utilising powerful apps to build a budget will help you do just that. Know your goals For some businesses, making goals for 2021 might seem elusive, especially coming out of a year like 2020. However, by taking the time to define your goals, you will find the grit you need to stay in the fight. Success isn't by chance. Simply dreaming and hoping for growth in 2021 will not cut it. Tips to setting achievable goals: It's still OK to dream big Write your goals down Set achievable milestones Share your goals Work on your goals daily Be SMART (Specific, Measurable, Achievable, Relevant, Time-bound) Actively analyse finances By consistently running a balance sheet and updating your financial statements, you'll always have your thumb on the pulse of your business. There are excellent apps available on the Xero App Marketplace to do just this. If you are uncomfortable building various reports, get help from a trusted advisor like an accountant or bookkeeper who will help you understand your economic landscape. Understand your cash flow Businesses are showing a steady improvement in their spending outlook as 2021 gets underway. As a business owner, you need to know where to spend your money and where to pull it back. Though a business can look successful on paper, businesses fail at an alarming rate due to cash flow. It is essential to shorten the days between spend and collection from sales. The fewer days between the two means more cash on hand and less you will need to borrow. Developing a cash flow projection will ensure you have the money to pay vendors, staff, lenders, and yourself. Here are some apps that can help. Separate business and personal It's more important to separate business from personal finances in 2021. Making the separation will ensure you treat your business like an independent entity while protecting your financial circumstances with a 'corporate veil'. This type of protection makes the company accountable for any debts or legal responsibilities rather than holding the owner personally accountable. Save for emergencies For businesses that have made it through the COVID-19 pandemic, this might be hard. But you got this. Understand you need to count every dollar and make every dollar count. Here are a few cost-saving ideas to help free up money to save: Go paperless Don't pay for landlines Stick to your budget Time management is vital Cut production costs Hire freelancers Travel less Create partnerships for co-marketing Buy from the 'little guy' – for example, your local suppliers and other small businesses Listen to your customers For lots of companies, during economic downturns, they stop serving their current customers and start desperately looking for new customers. A better approach is to produce new products and services for customers who already know and love you. Your customers will let you know how to stay in business. Consider taking the necessary steps to listen to your customers by giving them a way to connect with you 24/7. Don't stop there. Listen to them with the intent to act. Your customers are letting you know how you can serve them better. Remember, other companies are looking for new customers, and if you are not tending to yours, your competition will. Focus on the future, not the past 2020 was devastating for the world in many regards, but there is still a bright future ahead. We must learn from our past, but we mustn't stay in our past. The future is in our imagination, so why not imagine a future of possibilities. When you set your goals, budget, or strategies, be realistic but still shoot for the stars. Be agile Be prepared for anything; you have got to be able to think on your toes. 2021 will not give you the time to cut through red tape. If you're too slow to open the door when opportunity knocks, it will head over to your competitor's open door. Become more efficient by automating redundant tasks to free-up management from routine, time-consuming tasks and allow them to engage in business strategies to increase profits and customer service. Be adaptable Success comes to those that can roll with the punches. Many businesses failed due to their inability to be adaptable. You should be able to pivot at a moment's notice in good times or bad. This past year we saw restaurants close in droves while others seemed to thrive. The difference was the quick adjustment to delivery and curb-side service. Showcase your differentiation In 2021 brand connections are becoming more critical for consumers. Customers are now looking for brands they can trust and support during these challenging times. Companies need to step up and show they are willing to provide superior customer service, operational excellence, clear and transparent communication, and affordable products. Especially in times of struggle, people are looking for assurance that good is out there. Now is the time to shine and show others you care. Remember your 'why' Most important, you have got to remember why you went into business in the first place. Do you have clarity around the 'why' of your business? No? That's OK, but it's time to figure it out. It is not about making money; that is the result. Your why should be the purpose, cause, or belief behind the reason your organisation exists. Knowing why you are in business can help you make hard choices, stay focused on your goals, and take the necessary risks needed to succeed. The landscape is uncertain for 2021, but there is reason to be optimistic. Businesses that stimulate growth with new products and services create jobs and infuse the economy with the money it needs to recover. Collins Hume Accountants and Business Advisers | Ballina & Byron Bay NSW | Ph 02 6686 3000 Source: Xero

Collins Hume fundraising for the Westpac Rescue Helicopter Service Key fundraising points It costs about $40 million a year to keep helicopters and crews on call, ready to respond About $12 million of that cost is raised through sponsorships, volunteer, support groups, events and community partnerships The remainder is funded through contracts with NSW Health and NSW Ambulance. On 22 May, Collins Hume is putting up a team to raise much-needed funds for the Westpac Rescue Helicopter Service. Every dollar raised contributes to keeping the Rescue Helicopter Service available 24/7, 365 days a year. Each of our team has a personal goal to individually raise $250 per person. Adding to that, Collins Hume has kicked in for registration fees and team uniforms, but we need more help. This year, we'll be setting out in three teams covering three courses – 12 kms, 24 kms or 36kms. We're asking for as many people as possible to choose a course and back us to finish: Sponsor our 12 km course https://events.rescuehelicopter.com.au/fundraisers/collinshume12 Sponsor our 24 km course https://events.rescuehelicopter.com.au/fundraisers/collinshume24 Sponsor our 36 km course https://events.rescuehelicopter.com.au/fundraisers/collinshume36 Current fundraising leader Chris Priester said, "I volunteer with a rescue organisation and have seen first-hand the very good work that the Rescue Helicopter pilots and crew do to support the community." "Whether it is transporting casualties who require urgent medical care or extricating people from areas that would otherwise be too dangerous to reach the Rescue Helicopter has proven to be an essential life-saving tool. "This is my fifth walk to help raise funds for this valuable service. Only last year our grandson was flown from Lismore to Gold Coast University Hospital for emergency treatment which saved his life," added Val Anderson. Collins Hume fundraising organiser Kim Roy said, "I'm really proud to be part of a team of out there individuals who are willing to get up from behind the desk and have some fun while raising money for a great cause." Every dollar we raise helps to keep the Rescue Helicopter flying 24-7 for those in need. Please support our team's fundraising efforts to keep helicopters and crews ready to respond when needed. Background The Community's Own Westpac Rescue Helicopter proudly provides a vital 24-7 aeromedical search and rescue service for the people of Northern NSW. The service is on call 24 hours per day, seven days per week. Approaching 2,000 missions each year these include: Primary – attend accident site, treat and transfer patients to hospital Secondary – transfer patients between hospitals for specialist treatment Search and rescue – help to locate missing people, rescue and return to safety The Service delivers world class care for 1.5 million people from three bases in Lismore, Belmont and Tamworth. In 2017 the Service added AgustaWestland AW139 helicopters to the fleet. These state of the art Italian-built aircraft enable the Rescue Helicopter crew to fly further and faster, saving valuable time and precious lives. Along the Pilot and Aircrew Officer, every primary response mission today leaves with a dedicated NSW Ambulance Paramedic and Local Health District Doctor and depending on the needs of each patient the team may include specialist nursing professionals. Together, the highly trained Rescue Helicopter team is working to ensure the highest standard of care is provided for every patient at the scene of their accident.

In the name of shopping locally and supporting our community, this year's prizes will be purchased from Collins Hume business clients. To join: Go to https://www.iTipFooty.com.au Click the 'REGISTER' button if you don't already have an account with iTipFooty.com.au Once you have successfully registered login and, click the JOIN COMP button Enter Comp # 103098 and Comp Password CH1234 Click join comp.....DONE! Competition details Comp Name: Collins Hume 2021 NRL Comp#: 103098 Comp Password: CH1234 Comp Type: FREE Comp Starts: 12 March 2020 Manager's Name: Tim McOmish Manager's Email: tim.mcomish@collinshume.com.au TIP CUT-OFF TIME for our comp is 5-minutes before the match each week. Prize information First prize: $300 in gift vouchers sourced by Collins Hume from local businesses Second prize: $100 in gift vouchers sourced by Collins Hume from local businesses Third prize: $50 in gift vouchers sourced by Collins Hume from local businesses Knockout Comp Winner: $100 in gift vouchers sourced by Collins Hume from local businesses Good luck! We look forward to announcing winners at the end of the season. REGISTER HERE Huge thanks to the business owners who have provided these amazing prizes for this year's competition.