A payment plan allows businesses to pay off their tax debt in instalments when they are not
able to make a complete payment by the due date. Businesses with a debt of $100,000 or less can propose a payment plan through the ATO’s online Business Portal or through
their tax agent or BAS agent. For debts over $100,000, businesses must contact the ATO directly to discuss their options. Businesses wishing to go on a payment plan are still
required to lodge their activity statements and tax returns on time to avoid penalties.

Interest will generally continue to accrue on unpaid debts even when a business has
made a payment plan. However, a 12-month payment plan free of interest may be
available for small businesses with an activity statement debt. This will require businesses
to pay their debt through direct debit within 12 months. To be eligible, businesses must:

• Have an annual turnover of less than $2 million.
• Have a recent activity statement debt of $50,000 or under that was paid within 12 months of it being due.
• Have no overdue activity statement lodgements.
• Have had a maximum of one payment plan default within the last 12 months.
• Be unable to obtain finance, such as a loan.
• Meet all of their other tax payment and lodgement obligations.

The ATO may require businesses to demonstrate their viability for a payment plan. This assesses the business’ ability to meet their ongoing financial commitments by considering factors such as gross margin,

You can claim car deductions using the cents per kilometre method if you are a sole trader or partnership. The cents per kilometre method is calculated using a set rate for each kilometre
travelled for business purposes. This rate takes all of your vehicle running expenses (including registration, fuel, serving and insurance) and depreciation into account, and currently sits at 72 cents per kilometre for 2020-21.

To make sure your claim is eligible, records you need to keep include:

• Details of the kilometres travelled for business and private use.
• Receipts for fuel, oil, repairs, servicing and insurance over.
• Loan or lease documents.
• Tax invoices.
• Registration papers.
• Details of how you calculated your claim.

Keep in mind that the cents per kilometre method is only applicable when using a car. According to the ATO, a car is a motor vehicle designed to carry both a load less than one
tonne and a maximum of nine passengers.

products to improve visibility.

of your business. When customers search for a particular service on Google, results
include contact details, photos and reviews of nearby businesses that offer that service. By claiming this listing, the accuracy of this information is improved and local customers are more likely to engage with your business.

business procedures, it is important to address your upcoming business changes with your
employees. Sudden and major company changes can lead to uncertainty and distrust amongst your employees. To keep employee morale up,
here are some strategies to implement when
introducing changes to your business.

Give your employees a break from their usual work routine and plan some fun and
relaxing team-bonding exercises to improve the atmosphere. Reinforcing a supportive
workplace community will help your employees adapt to any changes you are implementing into your business.

feelings of uncertainty and stress. To avoid the rumour mill and keep employees focused, inform your staff members about the changes taking place as quickly as possible. Include details such as how and when changes will be implemented or addressed to ensure employees are ready for the changes. Communicating openly with your employees will build long-term trust as they will appreciate your efforts to keep them involved and alleviate their concerns. Employees will also feel valued, boosting company loyalty.

and have open discussions between management and employees to better connect with your employees’ concerns and desires.

The ATO has introduced a new ‘shortcut method,’ which applies from 1 March 2020 to 30 September 2020. Under this new method, employees working from home as a result of COVID-19 can claim expenses incurred at a rate of 80 cents for each hour worked from home. Employees must keep a record of the hours they worked from home as evidence to support their claim.

• Utilities such as heating, cooling and lighting.
• Cleaning costs for your work area.
• Mobile or landline phone expenses for work calls.
• Internet connection.
• Computer consumables and stationery.
• Repair costs for home office equipment and furniture.
• Depreciation of home office equipment, computers, furniture and fittings.

Small capital items such as a computer (purchased for the purpose of working from home) can also be claimed if they cost under $300. If the cost exceeds $300, the decline in value can be deducted.

Employees under the scheme will have their JobKeeper payments automatically filled out
in their tax return, and will not have to do anything differently. The payments will be
included as salary and wages, or an allowance that appears on the regular income statement
or payment summary provided by employers.

flow for employers scheme is tax-free as it is considered non-assessable non-exempt (NANE) income. Cash flow boost amounts should be included in tax returns in the same manner as other NANE income. Employers under the scheme will still be entitled to a deduction for the PAYG withholding paid.

Businesses may also be able to accelerate their depreciation deductions on the purchase
of certain new depreciable assets if they have an aggregated turnover of less than $500
million. This applies to eligible assets that were held and first used, or installed and ready to
use from 12 March 2020 to 30 June 2021.

that business owners need to keep in mind before deciding to open up a new branch.

potential locations and consider how selected areas could affect your new branch due to factors such as busyness, competition, demographics, transport accessibility, rent
prices, and attractiveness to employees.

Assess whether the differences between your current and potential new locations will
require you to make any changes to your business – perhaps you will have to adjust
your marketing strategy, prices, or products/ services depending on your new demographic.

more inventory and equipment, employees, insurance, and extra advertising. While your
income may increase with your new location, it may take months to make the returns required for expansion. Financial security is important when opening up a new store to avoid overextending your funds and putting your business at risk. If you don’t have the assets required, a business loan is an option, provided that you can prove your financial ability to repay the loan.

Opening up a new location also means that you will have to manage your time between the two branches. This may require delegating business responsibilities, hiring managers, or promoting current employees to management positions. To keep your new business on track and identify early risks, you may also have to initially spend more time at your new location.

of less than $5 million (from 2016-17 financial year onwards) and is capped at $1,000.

The ATO will work out your offset based on your income tax return and uses your:

• net small business income you earned as a sole trader, or
• share of net small business income from a partnership or trust.

sum of your assessable income from carrying on your business, minus any deductions). Sole
traders are not entitled to the offset in the event that their net small business income is a loss.

Income and deductions that you need to include in your net small business income include:

• farm management deposits claimed as a deduction,
• repayments of farm management deposits included as income,
• net foreign business income related to your sole trading business, and
• other income or deductions such as interest or dividends derived in the course of conducting your business.

• you have a share of net small business income distributed from a partnership or trust that is a small business entity,
• you were a partner or beneficiary of that small business partnership or trust,
• the business income was derived by the small business partnership or trust from carrying on its own business activities, or
• your assessable income includes a distribution or share of net income from that partnership or trust.

However, partnerships are not without their disadvantages. Disagreements are bound to happen over time so it is important to formally structure the relationship. To ensure business
success and the longevity of your relationship, there are a few important steps to take when
laying out the groundwork for your partnership.

• Business ownership division. Who owns what per cent?
• Decision-making processes. How are business decisions made? Who has final authority? How are disagreements settled?
• Partnership responsibilities. What are each partner’s responsibilities? How much time and money will each partner contribute? Can partners work in other positions at the same time?
• Partnership breakdowns. What happens when a partner wants to sell? What happens when a partner dies or becomes disabled? What happens if you want to bring on an additional partner?