Businesses should start reviewing whether their accounting systems are keeping track of all revenue and expenses, together with any private use of business assets.
Planning ahead can save significant tax penalties, which start at 25 per cent of the unpaid tax to as high as 75 per cent.
There are a few key areas business owners should focus on.
– Go through each employee and check whether contractors are actually employees, as the ATO has flagged this as an issue they will be cracking down on.
– Look at whether any new business equipment needs to be bought in order to take advantage of the new $6,500 instant write off.
– Review quarterly PAYG instalments. If profit is down considerably from last year businesses may wish to reduce their instalments.
– Businesses may also wish to review personal loan agreements and trust deeds to make sure they comply with the law and that company distributions to owners are properly treated for tax purposes.
Business owners might be required to select a default fund for employees when they do not want to nominate their own superannuation funds. Funds should meet specific requirements that are stated as per super law, so it is important to select a complying fund. However, there are other factors that you may have to think about before selecting a default fund to make sure that you and your employees get the most out of it.
Pricing Naturally, one of the main considerations while selecting a super fund should be pricing. Funds that have a lower fee may not cover extras, and this requires careful analysis to see what extras have been left out. Coverage for extras like being able to track down missing super is a key feature that employees will prefer your default fund has.
Employee preferences Employees are likely to prefer funds that allow flexibility with their investment options and have essential features like insurance policies covering death, total and permanent disability (TPD), and income protection. You may want to consider options that give your employees a comprehensive cover while keeping an eye out for any exclusions that might affect you.
Industry fund Checking industry funds may help reveal awards that are particularly applicable to employees from your industry. It is a requirement that your default fund is a MySuper product. All listings under Industry SuperFunds are MySuper products, so this can simplify the process of finding an affordable super fund for your employees.
Fund management Finally, consider taking a closer look at the fund’s insurance offerings. Past performance of the fund doesn’t guarantee high returns in the future. But it is important to be aware of the returns on the fund’s investments to compare how their options have performed against their return objectives. This can increase the chances that the selected super fund will be beneficial to you and your employees.
