It’s challenging times for employers, with record-high levels of employee turnover, shortages of skilled staff in a tight labour market, low unemployment, and wages rising to keep pace with surging inflation.

Small and medium-sized enterprises (SMEs) may find it harder to compete with the deep pockets of large corporations, but there are plenty of advantages SMEs have in being able to attract and retain talent by tailoring creative, meaningful remuneration packages for each employee.

Here are some key tips:

• Look beyond the pay packet – while you want to keep salaries in line with market rates, if possible, there are many other things that are just as, or more important, to people. Can you offer a better work-life balance, career progression, or a vibrant, inclusive workplace culture?
• Personalise your offerings – everyone is different, so the benefits and support you offer should be valuable to each employee, whether that’s extra training opportunities, more leave, equity via a profit-sharing scheme, or perks like gym memberships.
• Support and trust your staff – establish a solid basis for each employment relationship and match expectations with action. This builds trust and confidence, which flows into higher motivation and employee retention.
• Flexibility is key – research shows that flexible work arrangements are now expected by many employees, so explore options with your people. Can people work remotely some of the time or work flexible hours so they can meet family commitments or miss rush hours?
• Build your mission and culture – small businesses are often run by passionate people, so provide clarity and purpose for employees by articulating your vision and building a dynamic team culture that supports people and celebrates success.

Ara Jo from Fiskl Advisory has been named as a finalist in the Women in Finance Awards for Accountant of the Year.

The highly anticipated Women in Finance Awards 2022 shines a light on every highly skilled and talented woman propelling the finance industry forward.

Considered the pinnacle of innovation and excellence, the awards program was created to highlight the impressive achievements of top leading women in the sector, recognising them for their remarkable contribution and expertise.

The finalist list, which was announced on Friday, 7 October, features over 249 high-achieving professionals across 29 submission-based categories.

During a year of constant challenges and numerous changes, it is crucial to celebrate the leading women who are exceeding expectations and providing ongoing customer satisfaction.

Maja Garaca Djurdjevic, editor of Wealth at Momentum Media, commented: “This year we have been absolutely inundated by submissions and we’re just so excited to see so many of you take time out of your busy schedules to nominate your friends, colleagues, and peers for this coveted accolade.

As usual, we would like to congratulate all the finalists of the sixth annual Women in Finance Awards and extend our congratulations to everyone who lodged a submission. We thank you for the support you’ve shown women in this space — support that is key for growing women’s presence in our financial services sector.

We look forward to recognising the outstanding achievements of women in the sector — achievements that have helped so many better their businesses and personal finances.”

Ara said that she was humbled to be recognised and proud to be named as a finalist in the Women in Finance Awards 2022.

“Fiskl Advisory’s recognition for our excellent contribution to the Accounting industry reinforces the strength of our service and dedication to connecting with the community and engaging with clients,” she added.

The ATO has increased its activity around recovering unpaid business debts. During the pandemic, it paused debt recovery, but has now resumed its pursuit of debts.

Since April 2022, the ATO has sent tens of thousands of letters to directors notifying them about impending action. Director penalty notices (DPNs) have been issued to directors who have not replied to the ATO letters and have not otherwise engaged with the ATO about their debts.

DPN law means that if a company did not pay ATO obligations on time, company directors could become personally liable for the amount owing, in addition to penalties.

DPNs can be issued for unpaid PAYG withholding, superannuation guarantee, GST, WET and LCT.

If you received a letter about ATO debt recovery, talk to us so we can look at the available options with you.

Talk to Us About Your Business Liabilities

• Are you clear about what you owe the ATO?
• Are you aware of the extent and financial implications of your personal liability?
• Have you given director guarantees to any suppliers that might increase your individual liability?
• Are your ASIC details correct? If a notice is issued to an incorrect address listed on ASIC, legal recovery will go ahead whether the director receives the notice or not, if contact is not made within 21 days of the letter’s date.

If you are considering taking on a new position for an existing company, check the status of the financial obligations of that company before accepting the position, as new directors may become liable for existing debts. Equally, if you resigned from the position of directorship don’t ignore it as the notice may relate to the time you were a director.

Contact us to learn more about managing business finances so you can continue running the business you love.

Annualised salary arrangements in restaurant and hospitality awards are changing in September 2022.

After a review of the annualised arrangements in these awards, the Fair Work Commission has introduced changes that will make payments for salaried workers fairer.

Employers have been able to pay 25% on top of the base wage to allow for overtime and penalties. This meant they could do an annual reconciliation of actual hours worked to ensure the salary covered the overtime and penalties there were entitled to had they been paid by the hour. Any shortfall in wages could be paid with a single top-up payment each year.

The new arrangements bring in weekly outer limits to overtime and penalty hours. Employees who work more than 18 hours on weekends and public holidays within a week will need to be paid the hourly or penalty rate in addition to the regular wage.

If you’re paying staff an annual salary, the new rules mean you will need to review hours each week to check staff are not working more than the prescribed outer limits for extra hours. If they are, you will need to calculate the amount owing and pay it each week.

While an annual reconciliation of hours worked against the wages paid is still required, you can no longer wait until the end of the year to calculate and pay any shortfall.

The new system should make it fairer for salaried employees who will receive payment in the week that extra hours over the limits were worked. It should also assist with your business’s cash flow, as you’ll be paying wages during busy times, and the annual top-up payment should be smaller.

Review Your Annualised Salary Agreements

If you’re paying staff a salary, there are certain obligations you have to meet. We can help get systems in place to manage your employer obligations and make it as easy as possible to track time and perform the annual reconciliations of hours against wages paid. Book a time to talk to us about the new provisions for restaurant and hospitality workers and how to implement them in your business.

In a challenging business landscape, if you are considering a major change, your head is no doubt filled with questions.

I’ve decided to restructure. What’s the best way to do this?

Restructuring is never easy but if it’s necessary to keep your business afloat, there’s a process you can follow to keep stress to a minimum.

• Write a proposal outlining why roles need to change for the business to succeed.
• Email employees to let them know you’re proposing a restructure and invite them to a meeting (at least 2-3 days later) to learn more.
• At the meeting talk through your proposal on how the restructure should be implemented. It’s really important for staff to feel part of the process, so invite them to give feedback via email or book to see you after the meeting. Particularly if redundancies are a possibility, it is vital that you show an open mind as to what should be done to promote your business’s objectives.
• Proposed changes to an employee’s terms and conditions must be committed to writing and provided to the employee with notification that they are entitled to seek independent advice. They must be given a reasonable opportunity to seek that advice.

I want to sell my business. How do I get it ready for sale?

Selling your business involves a lot of homework. You need to get it looking as “shiny” as possible before getting it valued by an accountant.

Here’s how:

• Sell assets you’re not using, stop investing in long-term projects and put together a realistic financial forecast.
• Prepare a business plan that includes how well the business is running and your plans for growth.
• Sort out any legal issues or staffing problems.
• Bring health and safety, cloud solutions, and bookkeeping software up to date.
• How are your website and social media looking? Could a buyer hit the ground running with them?
• Talk to us about ways to boost your sales revenue and pre-sale profit margin. Remember it’s the last two or three years’ profit, and future maintainable profit, that determine the value.

Workplace values are changing. We’re seeing first-hand the impact of a multi-generational workforce across the business world. And as Baby Boomer and Gen X workers have begun to retire, we’ve seen a shift in company cultures that reflects the large number of Millennials now in senior roles – with Millennials now making up 35% of the workforce.

But Generation Z employees – those born in the late 90s and early 00s – are now thought to make up 24% of the workforce. And that means you need to review and evaluate your current workplace culture to reflect the changing values of your Gen Z workforce.

So, what elements of your business should you focus on? And what exactly are Gen Z employees looking for from your company?

Key ways to attract Gen Z talent

If you want to attract Gen Z talent to your business, you’re going to need to offer a culture, mission and company values that reflect their ethics.

As a business owner, It’s very easy to think that your own values are static and unchanging. But the reality is that our social norms, our ethics and our worldview change over time. And each generation brings with it a new outlook on society, and on the world of work.

Gen Z are more interested in equality, diversity, sustainability and enhanced career paths. So these elements need to be factored into your culture and talent strategy.

For example:

• Flexible and hybrid working – the old, pre-pandemic ways of working are gone. Gen Z employees don’t want to be stuck with a 9-to-5 commute to the office five days per week. They want the flexibility of working from home on some days, but the social and team benefits of working from the office on other days. If you don’t offer hybrid working, you’re unlikely to attract young, ambitious talent to the business.
• Non-financial perks – Gen Z are sensible about money and want salaries that reflect their skills and hard work. But they want more than an annual bonus when it comes to perks and staff benefits. Everyday, non-financial perks such as free coffee in the office, gym memberships, mindfulness sessions, team social events and annual leave on your birthday all serve to broaden your culture and create a work environment that’s not just focused on profit above all else.
• Green, eco-friendly policies – climate change is the key worry of most Gen Z employees, so they want to see your company doing it’s bit when it comes to greening the business. Reducing unnecessary travel, cutting out single-use plastics, using sustainable, green suppliers and focusing on real change will be key areas to focus on. Gen Z workers will want to see you doing your utmost to cut your company’s carbon footprint, invest in green technologies and support a climate-change strategy.
• A positive community to be part of – Gen Z employees may be on board with growing your business and achieving your business mission, but they also want to feel like they are part of a wider community. A company that takes an interest in its staff, its local stakeholders and it’s wider network will create a far greater sense of community, purpose and belonging. Make your employees feel that they’re part of a bigger family, and allow them time to take part in team-building and community-based activities. This creates a community feel that’s a far more attractive proposition to younger talent.
• Greater responsibility and autonomy – the career outlook of the average Gen Z is very different to, say, an older Gen Z employee. Gen Z employees want to learn, grow and move quickly up the corporate ladder, with a desire for extra responsibility and greater autonomy in how they work. The ‘job for life’ is no longer an option for most, so Gen Z talent will see their future career path as including multiple employers, where they stay for only short periods. And they want the space and flexibility to work in their own way – without micro-management and inflexible traditional structures holding them back.

Review and update your company culture

If your current company culture is not attracting Gen Z talent, it might be time to make a change. Your people strategy is an important part of your main business model, so it’s important to stay current and to build a culture that’s geared for success across all generations.

It’s tough going for business owners this winter. Illness is rampaging through the community – it’s hitting staff, suppliers, clients and schools, creating disruption throughout the economy.

With the labour market tight, businesses are already understaffed. Add high rates of absenteeism, and remaining workers and business owners are under incredible pressure. When you love your job and always want to do the best for your clients, it’s easy to start overworking yourself and run the risk of burnout.

It’s vital that you take care of yourself this winter, so here are three ways to help prevent burnout:

1. Start saying ‘No’– Small business owners are experts in saying ‘Yes!’ and then figuring out the details later. It’s how you grow a small business and build your reputation for being able to solve problems for your clients. Unfortunately, if you’re overworked and stressed out, it’s time to start saying ‘No’. Begin by turning down work from difficult clients, or work that’s outside your core business, so you’re focused on where you add the most value.
2. Identify at least one area you can outsource – You can’t do everything yourself, particularly if you’re understaffed. Look at your processes and try to identify an area that’s not part of your core business which you can outsource. It might be social media posts, or office cleaning, or even just subscribing to a meal kit service to take the stress out of cooking. Usually, the cost of these initiatives will quickly pay for themselves: once you feel less stressed, you’ll be more productive.
3. Hold onto your interests outside work – Running a business can be all-consuming, but hang onto your friends, sports and hobbies even when it gets busy. Letting your relationships, health, and pastimes dwindle away will undermine your emotional, physical, and mental health.

We can help

Not sure if outsourcing tasks will pay for itself? We can work with you to analyse the costs and benefits of any business investment. Get in touch, we’d love to hear from you.

Do you have a property or block of land in Queensland? You might want to read this article further! Even though you are not currently paying land tax in QLD now, you might be required to pay from 30 June 2023.

Interstate properties and land tax

From 30 June 2023, the QLD government will use the total value of your Australian land. This includes your taxable land in Queensland and your relevant interstate land – Land located in another state or territory that is valued under interstate valuation legislation and is not excluded interstate land.

The total value of your Australian land will be used to determine:

• whether the tax-free threshold has been exceeded
• the rate of land tax that will be applied to the Queensland proportion of the value of your landholdings.

The current tax-free thresholds are $600,000 for individuals (other than absentees) and $350,000 for companies, trustees and absentees.

Queensland land only

If you only own land in Queensland, you will not be affected by this change.

You will continue to be able to access all available exemptions, such as the home (principal place of residence) and primary production exemptions.

Queensland and interstate land

If you own land in Queensland and in another state or territory, you will need to declare your interstate landholdings. You’ll need to set up a QRO Online account and complete the declaration, including land description, value and percentage of ownership.

From 30 June 2023, you will need to complete this declaration by the earlier of the following:

• within 30 days of receiving a land tax assessment notice
• on or before 31 October.

Interstate land value

If you own land in Queensland and interstate,  land tax will be calculated on:

• the total of your taxable land located in Queensland;
  and
• the statutory value of your interstate land.

The ‘statutory value’ of interstate land is determined by valuation legislation in that state or territory. It does not include excluded land.

When you complete an interstate land declaration online, you’ll enter the value of each parcel of interstate land. For an interstate property you owned on 30 June 2023, you would enter the statutory value for that parcel of land as at 30 June 2023. If you don’t know the value of a parcel at the relevant 30 June, use the most recent value you can ascertain. If you get an updated value for your interstate land, you can notify us to have your land tax liability reassessed.

Averaging and the subdivider discount will not apply to interstate land.

Surcharge

If you are an absentee or a foreign company or trust, a surcharge of 2% is added when calculating land tax. This applies to the total value of your Australian land.

Calculating land tax with interstate land

The land tax rate that applies depends on what type of owner you are and the value of your land. This rate (and surcharge, if applicable) is applied to the total value of your Australian land. Then this figure is applied to the Queensland portion to get the annual land tax liability.

Example

On 30 June 2022, Trevor owns land in Queensland with a taxable value of $745,000. His land tax is calculated using the rates for individuals.

Taxable value of land: $745,000

Calculation
= $500 + (1 cent × $145,000)
= $500 + $1,450
= $1,950

Land tax will be $1,950 for the 2022–23 financial year.

On 30 June 2023, the value of Trevor’s land in Queensland has not changed. But he now also owns land in Victoria valued at $1,565,000. The total value of Australian land owned by him is $2,310,000, which means the land tax is calculated using a higher rate for individuals.

This is how Trevor’s land tax will be calculated:

Taxable value of Australian land: $2,310,000

Calculation
= $4,500 + (1.65 cents × $1,310,000)
= $4,500 + $21,615
= $26,115

This amount is applied to the Queensland portion of Trevor’s land (i.e. ($745,000 ÷ $2,310,000) × $26,115)).

Land tax will be $8,422.37.