‘Payday super’ will overhaul the way in which superannuation guarantee is administered. We look at the first details and the impending obligations on employers.  From 1 July 2026, employers will be obligated to pay superannuation guarantee (SG) on behalf of their employees on the same day as salary and wages instead of the current quarterly payment sequence.  The rationale is that speeding up the payment sequence for SG will not only help reduce the estimated $3.4 billion gap between what is owed to employees and what has been paid, but will also improve outcomes for employees – the Government estimates that a 25‑year‑old median income earner currently receiving super quarterly and wages fortnightly could be around 1.5% better off at retirement.  Announced in the 2023-24 Federal Budget, payday super is not yet law. However, given the structural changes required to administer the new law, Treasury has released a fact sheet to help employers better understand the implications of the impending change.  How will payday super work?  Under payday super, the due date for SG payments will be seven days from when an ordinary times earning* payment is made. That is, employers have seven days from an employee’s payday for their SG to be received by their super fund. The only exceptions are for new employees whose due date will be after their first two weeks of employment, and for small and irregular payments that occur outside the employee’s ordinary pay cycle.  Over the last few years, employers have moved to single touch payroll (STP) reporting for employee salary and wages. It is expected that payday super will fold into the existing electronic systems and some changes will be made to STP to collect ordinary times earning data.  The impact for some employers however will not be the compliance cost of administering the regular SG payments, but the cashflow. Employers will not be holding what will be 12% of their payroll until 28 days after the end of the quarter, but instead paying this amount out on the employee’s payday. The upside is that where an employer has either fallen behind or not paying SG, particularly when the business is insolvent, the damage is contained.   What happens if SG is paid late?  The penalties for underpaying or not paying SG are deliberately punitive and this approach will continue under payday super.  Currently, a super guarantee charge (SGC) applies to late SG payments - comprised of the employee’s superannuation guarantee shortfall amount, interest of 10% per annum from the start of the quarter the SG payment was due, and an administration fee of $20 for each employee with a shortfall per quarter. And, unlike normal superannuation guarantee contributions, SGC amounts are not deductible to the employer, even when the liability has been satisfied.  Under payday super, employees are fully compensated for delays in receiving SG amounts and larger penalties apply for employers that repeatedly fail to comply with their obligations. If you make a payment late, the SGC is made up of:  Outstanding SG shortfall   Calculated based on OTE, rather than total salaries and wages as it is currently.  Notional earnings   Daily interest on the shortfall amount from the day after the due date, calculated at the general interest charge rate on a compounding basis.  Administrative uplift   An additional charge levied to reflect the cost of enforcement and calculated as an uplift of the SG shortfall component of up to 60%, subject to reduction where employers voluntarily disclose their failure to comply.  General interest charge  Interest will accrue on any outstanding SG shortfall and notional earnings amounts, as well as any outstanding administrative uplift penalty.  SG charge penalty   Additional penalties of up to 50% of the outstanding unpaid SG charge, that apply where amounts are not paid in full within 28 days of the notice of assessment.  As you can see, if the proposed SGC becomes law, late SG payments can spiral out of control quickly. This will be a particular issue for employers that pay employees less than their entitlements over time, or have misclassified employees as contractors and have an outstanding SG obligation.  But, unlike the current SGC, the new SGC will be tax deductible (excluding penalties and interest that accrue if the SG charge amount is not paid within 28 days).  Payday super is not yet law. We will keep you up to date as change occurs and work with you to get it right once the details have been confirmed.   *Ordinary time earnings are the gross amount your employees earn for their ordinary hours of work including over-award payments, commissions, shift loading, annual leave loading and some allowances and bonuses.

Investment NSW exporting programs NSW Export Capability Building Program The NSW Export Capability Building Program empowers businesses with essential knowledge and the skills required to pursue opportunities in international markets. Through a series of online and in-person workshops, the program offers foundational sessions that cover the basics of exporting, as well as specialised workshops focused on specific sectors or markets. These targeted workshops are designed to help businesses enhance their performance or successfully enter new export markets, ensuring that NSW businesses are well-equipped to compete and grow on the global stage.  Going Global Export Program The NSW Going Global Export Program is designed to help businesses expand into international markets with confidence and ease. Whether you're new to exporting or looking to deepen your global presence, the program provides the essential tools, resources, and support needed to thrive in the international marketplace.  Over the course of 4-6 months, participants will engage in online workshops, market intelligence briefings and cultural training, ensuring they’re well-prepared for the complexities of global trade. The program also includes potential partner introductions and business matching services, as well as market visit programs, in-market assistance, and logistical support to help you establish a foothold in your target markets.  Applicants need to meet eligibility criteria and be selected to participate in their nominated stream. Selected participants need to agree to the terms and conditions of program participation.    More Austrade information, tools and support to grow your business globally: Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you tailor a program to suit your requirements.

Future-proof your business  Mentorship isn’t just a perk; it’s a strategic investment in your team’s growth and your company’s future.   An effective mentoring program signals that your business is committed to developing and retaining talent rather than leaving their success to chance.   By fostering mentorship, you’re actively equipping your team with tools to excel and contribute more meaningfully to your organisation.  A good mentor provides a neutral space where team members can navigate workplace challenges and gain insights into the company’s operations. While not a direct supervisor, a mentor helps mentees understand the broader picture—offering advice on career advancement, navigating office dynamics, and achieving personal growth. Effective mentorship builds trust and offers support beyond day-to-day tasks, cultivating stronger leaders and more engaged employees.  Gone are the days of expecting staff to “figure it out” on their own.  In today’s competitive market, mentorship is essential for retaining talent. High-performing employees now have more career options, and companies can’t afford a passive, wait-and-see approach. By guiding them through meaningful work, offering growth opportunities, and showing them the rewarding aspects of their roles, mentors help make your organisation a place they want to stay.  A successful mentoring program relies on intentional planning and accountability.   The best mentors are experienced, credible, and genuinely invested in their mentees’ success. To create a lasting impact, ensure that mentors and mentees meet regularly and set clear, measurable goals. The program should be flexible yet structured, with evaluations to assess its effectiveness and room for adjustments based on feedback.  For business owners and executives, this investment in mentorship goes beyond individual growth. As your employees become more effective through mentorship, they’re better equipped to deliver exceptional service to customers and collaborate effectively with peers, ultimately enhancing your business performance.   If you’re looking to future-proof your business with a culture that promotes growth, start with a dedicated mentorship initiative. Assign a program champion, select credible mentors, and nurture a collaborative environment where your team feels supported. The return on this investment is a workforce that’s committed, capable, and inspired to help drive your business forward.  Elevate your business to new heights. Contact Nathan McGrath  on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you tailor a mentoring program to suit your specific requirements.

4 Essentials for Business Exit Planning  Do you have a clear succession plan for your own business? Do you know how you will ensure that customers and employees are looked after when you've moved on from the business?  Exit planning is not merely a matter of “leaving the business” but a proactive approach to maximising the business’s value, safeguarding financial security and ensuring a smooth transition for all stakeholders.   The ideal exit plan is initiated years before the anticipated sale or transfer, allowing business owners to strengthen their position and prepare for an optimal outcome.  The Exit Planning Process: What Steps Should Business Owners Take?  Business owners are encouraged to adopt a structured approach using these key steps in the exit planning process:  Define Personal and Business Goals:  Setting clear objectives for both the business’s future and personal financial needs is crucial. A well-thought-out exit plan starts with identifying goals that guide decision-making throughout the process.  Assess Business Value:  Understanding the current market value of the business allows owners to set realistic expectations and identify areas that can increase its attractiveness to potential buyers.  Enhance Business Value:  By optimising operations, reducing dependencies and addressing potential risks, owners can enhance value, making the business more appealing to prospective buyers.  Consider Exit Options:  Explore various options, including selling to a third party, transferring ownership to family members or considering employee buyouts. Each option has implications for business continuity and financial security.  How Does Collins Hume Create a Successful Exit Strategy?  Working with business owners day in and day out, we know better than anyone that the necessity of planning and documenting their plans is often overlooked.  Do you have a clear succession plan for your own business? Do you know how you will ensure that your customers and employees are looked after when you've moved on from the business?  The strategy you begin with, or planned to use 10 years ago, does not have to be the strategy you use when the time comes to transition. Your exit strategy can be a flexible, moving process that can be updated and reworked as your business grows.  The best exit strategy is the one that works for your current situation and that you've clearly thought out and written down.  If you’d like to chat about your exit strategy, please don't hesitate to reach out, and we can organise to grab a coffee. With these essential steps, we equip business owners with the knowledge to navigate the complex exit planning process confidently.

The last few years have been a rollercoaster ride of instability. Next year, 2025 holds hope but not a guarantee of greater stability or certainty. We explore some of the key changes and challenges.  An election  Welcome to political advertising slipping into your social media, voicemail, and television viewing - most likely with messages from the opposition asking if you are better off, and from the incumbents telling you all the reasons why you are.  The 2025-26 Federal Budget has been brought forward to 25 March 2025. This suggests an election will be held in either March or May 2025 but no later than 17 May 2025.   Legislation in limbo  The Senate pushed through 32 Bills on the final sitting day of parliament for 2024 including seven of direct relevance to business and to the financial interests of some Australians. However, two key announcements remain in limbo:  $3m tax on earnings in a superannuation fund  The proposed Division 296 tax, which imposes a 30% tax rate on future earnings for superannuation balances above $3 million, is proposed to commence from 1 July 2025. The Bill enabling the new tax is stalled in the Senate. It’s unlikely that this tax will pass parliament prior to the election; at which point, the Bill lapses. It then becomes a question of whether the elected Government chooses to rectify the concept or let it fade into oblivion as a bad idea.  $20,000 instant asset write-off for small business  In the 2024-25 Federal Budget, the government announced the extension of the $20,000 instant asset write-off threshold for small business for a further year to 2024-25. The concession enables businesses with an aggregated turnover of less than $10 million to immediately deduct the full cost of eligible depreciating assets costing less than $20,000. Without this measure, the threshold returns to $1,000. This concession was removed by amendment from the enabling legislation at the last minute in the final sitting of Parliament of 2024. The removal of this measure is unfortunate, as once again, SMEs now have no confidence about the tax treatment of investments in assets that they might be looking to make, or have made, in the current financial year.  Tax and super changes  Foreign resident capital gains withholding changes on sale of property  One of the Bills pushed through Parliament at the end of 2024 changes how capital gains withholding applies to foreign residents from 1 January 2025.   Currently, residents selling taxable Australian property must provide a clearance certificate to the purchaser at or before settlement to avoid having 12.5% withheld from a property sale where the value of the property is $750,000 or more. If applicable, the withholding is then made available as a credit against any tax liability. The vendor only receives any refund due after their next income tax return is processed at tax time.  From 1 January 2025 however, the threshold will be removed and the withholding rate increased so that:   The withholding is increased from 12.5% to 15%; and   The withholding applies to the sale of all Australian land and buildings by foreign residents, regardless of the value of the assets.  The reforms apply to acquisitions made on or after 1 January 2025.  Superannuation rate increases to 12%  The Superannuation Guarantee (SG) rate will rise from 11.5% to 12% on 1 July 2025 - the final legislated increase.  Super on Paid Parental Leave  From 1 July 2025, superannuation will be paid on Paid Parental Leave payments. Eligible parents will receive an additional payment based on the superannuation guarantee (i.e. 12% of their PPL payments), as a contribution to their superannuation fund.  Interest rates  At the last Reserve Bank Board (RBA) meeting, RBA governor Michele Bullock recognised the easing of headline inflation from 5.4% to 2.8% over the year to September 2024 but suggested that the economy still has some way to go before inflation is sustainably  within the 2% to 3% target range. The RBA appears wary of volatility and wants to see inflation sustainably trending down before making any move. Commbank is predicting a February 2025 rate cut, ANZ and Westpac May 2025, and NAB June 2025.  Cost of living pressures  The National Accounts released in early December took economists by surprise with living standards growing by a mere 0.2% in the September quarter – the expectation was much higher. Discretionary spending only increased by 0.1%.   The personal income tax cuts that came into effect from 1 July 2024 helped households, as did energy subsidies, but the impact is still working its way through the system. At the same time, mortgage costs continue to rise as past increases continue to impact.  Through the year, Australia’s economy grew 0.8%, the lowest rate since the COVID-19 affected December quarter 2020. Economic activity in the Australian economy right now is heavily dependent on Government spending.  Slow and steady is the expectation for 2025.  The ‘Trump effect’  President-elect Trump will recite his oath of office on 20 January 2025. The Trump administration will hold the presidency, Senate and the House.   For Australia, the question is the likely impact of some of President-elect Trump’s stated policy objectives including the imposition of tariffs. On social media, Trump has said:  “…as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders.”  “…we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America.” This in response to claims that China is responsible for massive amounts of drugs, in particular Fentanyl being sent into the US.  The issue for Australia is the secondary impact of a trade war. China is Australia's largest two-way trading partner, accounting for 26% of our goods and services trade with the world in 2023. A slowdown in the Chinese economy impacts Australia and the region generally.   An immediate impact of the idea of a trade war has been the decline of the AUD/USD, currently sitting at around 64c.   Fuel efficient cars  New standards for vehicle manufacturers come into effect from 1 January 2025. Vehicle manufacturers will have a set average CO2 target for all new cars they produce, which they must meet or beat. The target will be reduced over time and car companies must provide more choices of fuel-efficient, low or zero emissions vehicles.   Suppliers can still sell any type of vehicle they choose but with more fuel-efficient models offsetting any less efficient models. If suppliers meet or beat their target, they'll receive credits. If they don’t, they will have two years to either trade credits with a different supplier, or generate credits themselves, before a penalty becomes payable.  Wage theft criminalised  As of 1 January 2025, the intentional underpayment of workers will be criminalised.   Employers will commit an offence if:  they’re required to pay an amount to an employee (such as wages), or on behalf of or for the benefit of an employee (such as superannuation) under the Fair Work Act, or an industrial instrument; and  they intentionally engage in conduct that results in their failure to pay those amounts to or for the employee on or before the day they’re due to be paid.  Employers convicted of wage theft face fines of up to 3 times the amount of the underpayment and $7.825 million. Happy Christmas! From all of the team, we want to take this opportunity to wish you a safe and happy Christmas. The year has gone quickly and has no doubt had some challenges. The Christmas holidays are an opportunity to take stock and revel in the spirit of the season.  We look forward to working with you again in 2025 making it the best possible year for you and wish you and your family the warmest of Christmas wishes.

Extension of ‘classic’ invoicing to 27 feb 2025 Xero has announced an update to its invoicing system: the classic invoicing product, initially set to retire, will now remain available until 27 February 2025 to allow a smoother transition to the new invoicing platform. Registering for e-invoicing does not mean you automatically have to send e-invoices. Sending e-invoices is a choice you make for each invoice. Useful points for Xero users:  Tip:  If you have Dext  connected to your Xero file, it's worth holding off  on registering for e-invoicing as the two are currently incompatible (if you get stuck, contact our Bookkeeping team on 02 6686 3000 and we can help you) Bug:  If you're not registered for e-invoicing but another Xero user else is and sends you an e-invoice, you won’t receive it and there is currently no way to locate or recover it from the interweb Transition Support:  A dedicated education hub is available to guide users through the new workflows, ensuring an easier adjustment to the updated system Resources & Updates:  The new invoicing hub on Xero Central  provides the latest information and tools to help users stay updated. To date, over 30 updates have been delivered to the new invoicing system, integrating many features from the classic version and incorporating user feedback. Related Xero resources ·       General overview of e-invoicing, and some info around e-invoicing in Xero ·       Register to receive e-invoices (also instructions for how to deregister) ·       How to send an e-invoice in Xero Books360 by Collins Hume – Simplifying Small Business Bookkeeping Managing the books can be overwhelming and time-consuming for businesses owners. Books360 by Collins Hume takes the stress out of staying on top of your ATO obligations. Whether it’s BAS lodgement, payroll or one-off bookkeeping expertise, our specialist team ensures accuracy and compliance, allowing you to focus on growing your business. Work with us today to streamline your bookkeeping and ensure you keep up with the ATO’s relentless deadlines. We help simplify your operations and provide real-time financial insights. Being efficient and adopting technology not only saves you time but also reduces costly errors and improves cash flow, directly benefiting your bottom line. With the expertise of our experienced bookkeepers, including Certified Xero Professionals, you’ll have peace of mind knowing your books are in order. Let Books360 by Collins Hume keep your business running smoothly.

Can you avoid giving the Australian Tax Office a gift this Christmas?  The top Christmas party questions  What can I do to make the staff Christmas party tax deductible or tax-free?  Not have one? Ok, seriously, it’s likely that you will pay tax one way or another; it’s just a question of how. If you structure your celebrations to avoid fringe benefits tax (FBT), then you normally can’t claim a tax deduction for the expense or goods and services tax (GST) credits.  No FBT   If you host your Christmas party in the office on a working day, then FBT is unlikely to apply to the food and drink. Taxi travel that starts or finishes at an employee’s place of work is also exempt from FBT - helpful if you have a few team members that need to be loaded into a taxi after overindulging in Christmas cheer.  If you host your Christmas party outside of the office and keep the cost per head under $300 (the FBT minor benefit limit) then FBT often won’t apply to the cost of entertaining your employees.   But, if you do not incur FBT, you cannot claim GST credits or a tax deduction for the Christmas party expense.   Tax deductible  If your business hosts slightly more extravagant parties away from the business premises and the cost goes above the $300 per person minor benefit limit, you will pay FBT but you can also claim a tax deduction and GST credits for the cost of the event.   Are the costs of client gifts deductible?  It depends on the gift and why you’re giving it. If you send a client a gift, the gift is tax deductible if you have an expectation that the business will benefit; it’s marketing. While this seems like a mercenary way to look at Christmas giving, it is the business giving the gift, not you personally. This assumes that the gift is not a gift of entertainment like golf, or restaurants, which would not be deductible.  What about gifts for staff? Are they tax deductible?  The key to Christmas presents for your team is to keep the gift spontaneous, ad hoc, and from a tax perspective, below the $300 FBT minor benefit limit. So, no ongoing gym memberships or giving the same person several of the same gift that adds up to $300 or more unless you want to give a gift to the ATO at the same time. But, you can give gifts at different times throughout the year without triggering FBT as these are counted separately for the minor benefit limit.  A cash bonus will be treated as income in much the same way as salary and wages.   I like to catch up with clients for lunch or a drink (or two) at Christmas. These expenses are deductible, right?  Regardless of whether it’s for Christmas or at any other time of the year, the cost of entertaining your clients – food, drink or other entertainment – is not deductible. The ATO is keen to ensure that taxpayers are not picking up part of the cost of your long lunches or special events while you’re bonding with clients.  Happy Christmas! From all of the team, we want to take this opportunity to wish you a safe and happy Christmas. The year has gone quickly and has no doubt had some challenges. The Christmas holidays are an opportunity to take stock and revel in the spirit of the season.  We look forward to working with you again in 2025 making it the best possible year for you and wish you and your family the warmest of Christmas wishes.

A look at the tax consequences of inheriting property.  Beyond the difficult task of dividing up your assets and determining who should get what, it’s essential to look at the tax consequences of how your assets will flow through to your beneficiaries.   When assets pass from a deceased individual to a beneficiary of the estate, the tax impact will generally depend on the nature of the asset and the tax characteristics of the beneficiary, such as their residency status.  Inheriting cash  When cash passes from a deceased individual to their estate and then to a beneficiary, generally, there should not be any direct tax issues to deal with, assuming that the cash is denominated in AUD.  Inheriting assets  Death is a taxing event. When a change of ownership of an asset occurs, generally, a capital gains tax event (CGT) is triggered. However, the tax rules provide some relief from CGT when someone dies. The basic rule is that a capital gain or loss triggered by a death is disregarded unless the asset is transferred to one of the following:  An exempt entity (although there are some exceptions to this where the entity is a charity with deductible gift recipient status);  The trustee of a complying superannuation fund; or  A foreign entity and the asset is not classified as taxable Australian property.  The exemption applies if the asset passes to the deceased’s legal personal representative (i.e., executor) or to a beneficiary of the estate, which is not one of the entities listed above.   Once the asset has been transferred to the beneficiary, the beneficiary will need to manage the tax impact when they sell the asset.   Inheriting shares  Let’s assume you inherit an ASX listed share portfolio under your mother’s will. The tax outcome will depend on whether your mother was an Australian resident for tax purposes when she died, and whether the shares were acquired by your mother before or after 20 September 1985 (i.e., pre-CGT or post-CGT).   If your mother was an Australian resident for tax purposes when she died, and the shares were acquired post-CGT, then the cost base of the shares is normally based on the original purchase price. That is, the tax rules treat the inherited shares as if you purchased them. For example, if your mother purchased BHP shares for $17.82 on 2 January 1997, when you sell the shares, the gain is calculated based on your mother’s purchase price of $17.82.  If your mother was a resident of Australia when she died, and the shares were acquired pre-CGT, then the cost base of the shares is normally reset to their market value at the date of death. That is, if your mother passed away on 1 October 2024, the share price at close was $45.96. If you subsequently sold the shares in three years, the gain or loss is calculated using this value.  If your mother was a non-resident when she died, then the cost base of the shares is normally based on their market value at the date of death.  But it’s not all about the tax. Managing shares in your will can be difficult as prices and allocations change over time, and the companies you are invested in evolve. A portfolio that was once worth a small amount 20 years ago, might be worth significantly more when you die.   Inheriting property  Let’s assume you inherit an Australian residential property from your father under his will. For certain tax purposes, you are taken to have acquired the property at the date of his death.  The general rule is that the executor and/or beneficiaries of the estate inherit the cost base and reduced cost base of the CGT assets (the house) owned by the deceased just before their death, but this isn’t always the case, especially when it comes to pre-CGT properties and a property that was the main residence of the deceased individual just before they died.   Special rules exist that enable some beneficiaries or estates to access a full or partial main residence exemption on the inherited property. If the house was your father’s main residence before he died, he did not use the home to produce income (did not rent it out or use it as a place of business) and he was a resident of Australia for tax purposes, then a full CGT exemption might be available to the executor or beneficiary if either (or both) of the following conditions are met:  The house is disposed of within two years of the date of death; or  The dwelling was the main residence of one or more of the following people from the date of death until the dwelling has been disposed of:  The spouse of the deceased (unless they were separated);  An individual who had a right to occupy the dwelling under the deceased’s will; or  The beneficiary who is disposing of the dwelling.  For example, if the house was your father’s main residence and was eligible for the full main residence exemption when he died, if you sell the house within the 2 year period, no CGT will apply. However, if you sell the house 10 years later, the CGT impact will depend on how the property has been used since the date of your father’s death.  An extension to the two year period can apply in limited certain circumstances, for example when the will is contested or is complex.  If your father did not live in the property just before he died, it still might be possible to apply the full exemption if your father chose to continue treating the home as his main residence under the ‘absence rule’. For example, if he was living in a retirement village for a few years but maintained the property as his main residence for CGT purposes (even if it was rented out).  If your father was not an Australian resident for tax purposes when he died, the cost base for CGT purposes will normally be based on the purchase price paid by your father if he acquired it post-CGT.  Inheriting foreign property  If you are an Australian resident who has inherited a foreign property or asset from an individual who was a non-resident just before they died, the cost base is normally taken to be the market value at the time of death. For example, if you inherited a house from your uncle in the UK, the cost base is likely to be the value of the house at the date of his death.  If a taxable gain arises on sale, then it is necessary to consider whether the CGT discount can apply, but the discount will sometimes be less than 50%. If the gain is also taxed overseas, then a tax offset can sometimes apply to reduce the amount of tax payable in Australia.   Managing an inheritance can become complex. For assistance with estate planning, or to understand the tax implications of an inheritance, please contact Collins Hume in Ballina on 02 6686 3000.

A blueprint for success  We believe that as business owners, we’re clear on what success means to us. But does the team share our vision?   Establishing clear daily targets is vital for success, helping every member understand their role and stay aligned with our business goals.   By setting and monitoring daily metrics, we create a motivated, focused, and competitive environment where everyone strives for excellence.  Why Daily Targets Matter  Daily targets bridge individual efforts with broader business goals, fostering accountability and consistent performance. Clear targets set expectations, drive productivity and keep everyone focused on measurable outcomes that fuel our success.  Lining Up Targets with Long-Term Goals  Breaking down big goals into daily, actionable steps lets us see how today’s work supports tomorrow’s achievements. Regular reviews ensure we’re always on track and aligned, ready to adjust as needed.  TIP: Make sure everyone understands each goal, from individual to team to business-wide. This shared clarity drives cohesion and success.  Implementing Accountability  Accountability is a cornerstone of productivity. Tracking performance regularly at all levels—individual, team, and business—keeps us focused and identifies issues early. Metrics aren’t a threat; they’re tools to celebrate success and stay aligned with our objectives.  Motivating Through Healthy Competition  Encouraging friendly competition within the team boosts motivation and efficiency. Managed well, it drives high performance and fosters a positive workplace where everyone thrives.  TIP: Don’t fear competition. Managed well, it’s a driver for success. Celebrate achievements and keep communication open to maintain a balance between rivalry and teamwork.  Addressing Performance Issues  Consistent monitoring lets us quickly spot and tackle performance issues. Real-time feedback allows for swift adjustments, supporting continuous improvement and accountability.   TIP: Regular check-ins and updates are essential. Don’t shy away from tough conversations—they’re often what keeps us moving forward.  Top takeaways  Our path to success is built on clarity, accountability and a shared vision that everyone can rally around. We aim to make it happen, one day at a time:  Setting and tracking clear daily targets aligned with our long-term goals fuels our business growth  Breaking down big objectives into daily actions fosters motivation, accountability, and improvement. Embrace the competition it brings!  Regular monitoring and real-time feedback keep everyone aligned, creating an engaged, productive team that drives our success forward.  Elevate your business to new heights. Contact Nathan McGrath  on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you achieve a better performing business and lifestyle.

Family Aged Care Advocates (FACA), a specialised independent business guiding families through the complex and often overwhelming aged care process, has found a valuable partnership with Collins Hume to ensure the business remains both operationally sound and scalable.  Founded by Shane Hayes, FACA was built on the premise that navigating aged care shouldn’t be confusing or stressful. Shane’s previous background in financial planning combined with his aged care focus since 2018 allowed him to create a range of services that specialises in helping families manage the challenges of caring for elderly loved ones.  The Challenges  As a startup in a niche market, FACA faced the typical struggles of new businesses: maintaining operational efficiency while growing its client base. Shane highlighted how critical it is for small businesses to have a solid structure beneath them.   He explained, “Anything needs a good structure underneath it to develop further, and I think that’s what Collins Hume has really enabled FACA to do — to bed in a good structure, a good understanding of the accounting and financial side of it, which is critical for any business.”  The Solution  Collins Hume, a trusted partner of FACA, provided essential business support through their Business Advisory Program, led by Nathan McGrath, Collins Hume’s Senior Business Adviser. Shane expressed how beneficial the program was, noting, “Having a team with specialised knowledge and regular meetings has been profoundly beneficial from his perspective.”  The structured monthly meetings with Collins Hume allowed FACA to focus on often-overlooked aspects of business growth, ensuring that the financial and operational aspects didn’t get lost in the day-to-day running of the business.   Shane emphasised, “I’d get feedback about things that we’d tried, what worked, what didn’t and what we could tweak a little differently. It’s been a great experience.”  Results and Outcomes  The partnership has led to several significant outcomes for FACA:  Operational Confidence: Shane underscored the peace of mind that came with Collins Hume’s support, “It’s peace of mind knowing that the other stuff is right so I can focus on what we do.”  Business Scalability: With Collins Hume’s guidance, FACA was able to grow with confidence, securing its financial stability and expanding its services. “Collins Hume has enabled us to bed in a good structure, and that’s critical for any business, especially a small one where you don’t necessarily have all the experts on hand,” Shane said.  Responsive Support: FACA appreciated the hands-on, responsive nature of Collins Hume’s support.   For FACA, Collins Hume’s expertise went beyond financial support  Collins Hume provided a pathway for sustainable business growth. Shane now has the tools and confidence to manage his operations effectively, allowing him to focus on what he does best: helping families navigate the aged care maze.   Shane wholeheartedly recommends Collins Hume for any startup looking to solidify their foundation: “It’s a really powerful experience from just being confident that you are, in fact, setting up those back-of-house things to enable you to do the service delivery.”  By partnering with Collins Hume, FACA has built a robust foundation that supports its mission to guide families through one of life’s most challenging journeys — aged care. Read more on the website at https://www.familyagedcareadvocates.com.au/ .  Elevate your business to new heights. Contact Nathan McGrath  on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you achieve a better performing business, better lifestyle and a true sense of purpose.

The cost of living has eased over the past year but consumers are still under pressure. For business, planning is the key to managing Christmas volatility.  The countdown to Christmas is on and we’re in the midst of a headlong rush to maximise any remaining opportunities before the Christmas lull. Busy period or not, Christmas causes a period of dislocation and volatility for most businesses. The result is that it is not ‘business as usual’ and for many, volatility can create problems.   Added to this dislocation are cost of living pressures impacting consumers. Employee households are the hardest hit experiencing mortgage cost fuelled increases – spiked by the rollover of fixed rate loans to higher variable rate loans. While there has been some relief from energy subsidies and a reduction in fuel prices, underlying inflation remains persistently above the RBA’s target rate. Services inflation - the cost of your rent, insurance, your hairdresser, etc – is sitting at around 5%. With the Reserve Bank of Australia (RBA) Board keeping rates on hold for now and hinting that it will be some time yet before they are comfortable reducing rates, consumers want a reason to spend based on value for money. The irony is that if we all spend up big, which a recent Roy Morgan poll  suggests we are, there is a risk this elevated spending will further delay rate cuts. But, while we might spend more, some of this increase is simply to compensate for inflation - we need to spend more to buy at the same level as previous years.  The discounting trend  Consumers expect a bargain and can generally find one. If you choose to discount stock (or the market forces you to), it’s essential to know your profit margins to determine what you can afford to give away. A business with a 20% gross profit margin that offers a 15% discount, needs a 300% increase in sales volume simply to maintain the same position. Worst case scenario is that a business trades below its breakeven point and generates losses.   Increased sales from discounting can be great if you know your numbers, have excess or older stock that needs to be moved, generates demand, or drives new customers to you.  Also think about how you create value; it does not always have to be a direct discount on a product. Packaging might be a better option than a straight discount where you can increase sales of multiple items, even better if you can combine higher demand with lower demand stock. Quantity discounts, value added are also options.  The Christmas cost hangover  Costs tend to go up over Christmas. More staff, lower efficiency, downtime from non-trading days, increased promotional costs, all mean that the cost of doing business increases. It’s great to get into the Christmas spirit as long as you don’t end up with a New Year hangover. Cost control is important.  Many businesses also bring in casual staff. It’s essential that you pay staff at the correct rates and meet your Superannuation Guarantee obligations. Check the  pay calculator  to make sure you have it right.  New Year cash flow crunch  The New Year often leads into a quieter trading and tighter cash flow period. The March quarter is often the toughest cashflow quarter of the year. You will need a cash buffer. Don’t over commit yourself in the run up to the end of the year and start the new Year with a problem.  Take a lesson from Scrooge  If you work with account customers, start your debtor follow up early. If your customers are under cash flow pressure, the Christmas period will only exacerbate it. The creditors that chase debt hard and early will get paid first. Don’t be the last supplier on the list; the bucket might be empty by then.  Trading stock headaches  If business activity spikes over the Christmas period and you sell goods, then there is a temptation to increase stock levels. That makes sense as long as you don’t go too far. Too much stock post the Christmas period and you will either be carrying product that is out of season, or you will have too much cash tied up in trading stock. Try to work with suppliers that can supply on short notice.   Managing your trading stock is not just about managing cost. If your customers are in your store but can’t find what they need, have an online option available in store to take the sale. Christmas is a great time of year. Just don’t get caught up in the rush and remember your business basics. Call Collins Hume in Ballina on 02 6686 3000 for any help you might need in your business before Christmas to see you through the festive season.

Helpful and holistic support for business owners  As a business owner, you know that staying on top of your finances is essential, but what if you had a partner who could do more than just look at the past? At Collins Hume, we’re here to guide your business into the future, offering tailored advisory services that go beyond traditional accounting.  In the current challenging environment, business owners need more than just an annual set of accounts or a tax return. They need an ongoing partner who understands the intricacies of their business and can provide real-time insights and strategic advice. That's where our Strategy360 services come in, providing hands on practical guidance, not just reports.  Guiding Your Business Future — What Does That Look Like?  1. Tailored Business Performance Solutions: we simplify the complexities of your business. By collaborating closely with you, we focus on achieving meaningful outcomes that align with your unique objectives. Our customised solutions aim to enhance your business performance, boost profits and improve cash flow, ensuring long-term sustainability and growth.  2. Enhancing Business Value: Our approach is centred on increasing the value of your business. Through our expertise and strategic resources, we help you optimise ongoing earnings, drive business growth and ensure that your business valuation increases, providing you with a more secure financial future.  3. Reducing Risks and Improving Stability: We leverage robust technology and diverse industry experience to reduce the risks and uncertainties that many businesses face. By strengthening your business’s resilience, we help you navigate through market volatility and ensure ongoing success.  4. Supporting Your Lifestyle and Legacy: Our approach focuses on more than just numbers . We aim to improve the lifestyle outcomes you gain from owning a business and help you build a lasting legacy. By providing dedicated, ongoing support, we give you peace of mind, so you can rest easy knowing your business is in good hands.  Why use a Business Adviser?  Working with Collins Hume offers numerous benefits. We tailor our solutions to your precise needs, designed to improve business performance, minimise risks, boost business value, advance strategic initiatives, and execute plans effectively.   Our approach ensures that your business receives targeted support and guidance, ultimately leading to enhanced success and growth.  We understand that many business owners are great at what they do, but may not necessarily have the financial expertise or confidence to manage certain aspects on their own, and that’s where we step in to provide the ongoing support you need. Our goal is to help your business thrive, not just survive, by providing the tools and insights that make a difference all year long.  Elevate your business to new heights. Contact Nathan McGrath  on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you achieve a better performing business and lifestyle.