Businesses that fail to keep accurate records may struggle to remain compliant at tax time and incur financial penalties from the ATO.
Follow the ATO’s record keeping guidelines to stay organised.
Basic organisation tips:
Keep records electronically (if possible)
Keep evidence of all transactions
Take photos of paper receipts to avoid faded records
Keep all business records including income, expenses and bank records- you generally need to keep them for five years
Keep your business records separate from your personal records
Financial tips:
Make sure business records include cash, online, EFTPOS, bank statements, credit and debit card transactions
Records should be kept of sales and other business income and business expenses which can be claimed as a deduction
Keep records showing when you use business purchases for private purposes, which will help you work out the business portion you can claim as a deduction
Use the ATO record keeping evaluation tool to review your record-keeping practices from time to time and see if you’re still on the right track
Whether you are a newcomer to the workforce or have been working full time for 30 years, you must have come across the concept of superannuation. Chances are, you’ve already been steadily building your retirement funds in one of the 500 Australian superannuation funds but are still unfamiliar with how exactly your super is being managed and where your super fund is investing your money in.
With the beginning of a new decade and social issues on the rise, it is time to take a more conscious stance on what you are doing with your super and what causes you are supporting through the employment of your money through your super fund.
A recent investigation into Australian super funds by the Australian Centre for Corporate Responsibility (ACCR), released in February 2020, found that 50 of the largest super funds in Australia are proxy voting against local climate-change initiatives. These organisations are instead approaching climate change from a global perspective, whilst ignoring more pressing domestic challenges to reduce carbon emissions..
The lack of support from Australian super funds for localised climate action is growing problematic, as Australia fails to address its appalling record on carbon emissions and is falling behind new-age global goals to fight against environmental degradation and climate change.
In contrast, some of Australia’s most environmentally and socially conscious super funds lack the reputation to attract long-term users. To look for more environmentally friendly Australian super funds, the Responsible Investment Association Australasia (RIAA) grades supers based on their ethical contributions and makes this information available to the public.
Instead of mindlessly joining Australian super funds that are neglecting growingly problematic domestic climate change issues, Australians need to become more conscious of our indirect actions and super investments. Rather than investing in an unethical super fund, looking into self-managed super funds may be another good option. We need to learn to take matters into our own hands and become more socially conscious of where exactly our money goes.
