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December 16, 2016
Fringe Benfits Tax (FBT) and Christmas parties

IT’S THAT FESTIVE TIME OF YEAR WHEN BUSINESS OWNERS ARE PLANNING THEIR CHRISTMAS CELEBRATIONS FOR THEIR STAFF. WHILE IT IS IMPORTANT TO TAKE THE TIME TO CELEBRATE THIS SEASON, IT PAYS TO BE AWARE OF THE TAX IMPLICATIONS OF SUCH CELEBRATIONS.

IT IS LIKELY THAT YOU ARE CELEBRATING WITH YOUR CLIENTS AND EMPLOYEES AND THAT YOUR BUSINESS IS FOOTING THE BILL FOR THESE EXPENSES IN THE FORM OF GIFTS AND CHRISTMAS PARTIES.

Many business owners believe that these expenses are tax deductible.Unfortunately they aren’t and more importantly they could actually cost you more if you get caught by fringe benefits tax.

Fringe Benefits Tax (FBT) applies where an employer provides a benefit to an employee other than their regular salary or wage.

At first instance a Christmas party could be considered such a benefit, depending on the circumstances of the party. However, the Christmas party could be exempt from FBT if its value is less than $300 per employee.

These tables provide general information regarding the different types of Christmas parties that may be held and the FBT implications for such parties.
Should you have specific questions regarding your circumstances or require further clarification around anything to do with FBT feel free to contact your Momentum Financial Group advisor.

CHRISTMAS PARTY HELD ON THE BUSINESS PREMISES, EXAMPLE

Your business decides to have a party on its premises on a working day before Christmas and youprovide food, beer and wine.The implications would be as follows:

If Then
Current employees only attend

For employees – there is no FBT implications as it is an exempt property benefit. There is no tax deduction and no GST claimable

Current employees and their family attend at a cost of less than $300 per head (GST inclusive)

For family – there will be no FBT implications as the benefit is considered minor and infrequent. There is no tax deduction and no GST claimable.

Current employees, their family and clients attend at a cost of $300 or more per head (GST inclusive)

For employees – there is no FBT implications as it is an exempt property benefit. There is no tax deduction and no GST claimable.

For family – a taxable fringe benefit ariseswhere the value is $300 or more.

For clients – considered entertainment however no FBT implications but no income tax deduction either and no GST claimable.

   

CHRISTMAS PARTY HELD OFF THE BUSINESS PREMISES, EXAMPLE

You decide to hold your Christmas function at a restaurant on a working day before Christmas and provide meals, drinks and entertainment.

The implications would be as follows:

If Then

Current employees only attend at a cost of less than $300 per head (GST inclusive)

There will be no FBT implications as the benefit is considered minor and infrequent. There is no tax deduction and no GST claimable.

Current employees and their family attend at a cost of less than $300 per head (GST inclusive)

For employees – there will be no FBT implications as it is an exempt property benefit. There is no tax deduction and no GST claimable.

For family – there will be no FBT implications as the benefit is considered minor and infrequent. There is no tax deduction and no GST claimable.

For clients – considered entertainment however no FBT implications but no income tax deduction either and no GST claimable.

Current employees, their family and clients attend at a cost of $300 or more per head (GST inclusive)

For employees – a taxable fringe benefit arises where the value is $300 or more.

For family – a taxable fringe benefit arises where the value is $300 or more.

For clients – considered entertainment however no FBT implications but no income tax deduction either and no GST claimable.


August 30, 2013
Geelong Accountants

Governance in Business

As experienced Geelong Accountants we have seen many clients run their business is many different ways.

In the wake of the Essendon failings in ‘organizational governance’ we thought it would be appropriate to spend a moment exploring the meaning of governance in business. What is concerning and common is for a business owner to employ key people to run divisions in the business i.e. bookkeeper, sales team, manager etc. The benefit of doing this is that you, as the owner, can spend more time focusing on the areas of your business that you like and see as most critical to sustained success. The problem in heavy delegation is that you lose touch with what is happening at the core of your business.

As the owner and Director, you are fully responsible so do not place 100% trust in others to do your job for you.

There is a balance that needs to be carefully found and our business advisers can help you create and elite performing culture with strong governance to minimise the chance of ever having unforeseen problem.

Momentum Financial Group is a leading Accountant in Geelong specializing on Accounting and Advisory services for Geelong Small Business.

 


May 30, 2013
Minimise Tax

Tax Minimisation the SAFE way

Being a proactive Accountant in Geelong our client expect us to provide leading edge strategies in relation to tax minimisation and wealth creation

The importance of tax planning is paramount, but it is not the underlying driver of strategy and wealth creation.

Our message to all clients is to develop a strategy to create and protect wealth firstly, and then engage tax strategy to make the most of that transaction. Everyone wanting a tax deduction to dictate the validity of a decision should tread very carefully. Remember ‘donations’ are tax deduction with a good cause, never get caught in the ‘sales spin’ of a product manufacturer or sales based planner. Never allow yourself to be ‘bedazzled’ by a tax effective product.

As June is now upon us, stay disciplined and seek great leading edge advice because the value and additional wealth over time will reward you.

For expect tax and accounting advice in Geelong, please call the team at Momentum Financial Group (Chartered Accountants) on 5221 9133.

Scott Kitchin
Director
Momentum Financial Group

Leading Geelong Accountant


May 15, 2013
Business Advisor Geelong

2013 Federal Budget - what's in it for small to medium business?

The 2013 Federal Australian budget was delivered on May 14 and whilst on the whole it delivers little to help business in general in Australia, there are some rare highlights that will affect small to medium businesses:

  • SMEs to get $29.4 million boost to aid bids for government contracts;
  • Small and medium businesses vying for government services and tenders will receive $29.4 million in assistance;
  • In a budget which is mainly full of cuts, the assistance – dubbed the Enterprise Solutions Program – is aimed at helping “innovative” small and medium businesses;
  • The funding will be provided over five years with $2.3 million available next year 2013-2014;
  • Under the program, small to medium enterprises will be able to apply for grants of up to $100,000 for feasibility studies and up to $1 million for proof of concept; and
  • The cash is targeted at helping small to medium businesses overcome barriers and become more competitive in bids for government contracts.

It will be interesting to see how these initiatives roll out, especially in an election year.

Ultimately, you can't change the external factors so focus on what you can change or improve in your own business - short and long term.

Contact us in our Horsham (5381 1122) or Geelong (5221 9133) offices if there is anything you want to discuss about superannuation changes, tax planning requirements, how the budget might impact you or general business advice.


February 17, 2013
Business Advisory

Using a Business Advisor to help you with your business 

Evaluating your own value as a business operator can be a challenge.  Basically there are three things, no matter what business or profession you are in, that you need to be aware of. They are objectives, measures and value.

If you’re a consultant it’s about self belief and intellectual fire power. That means you have to understand clearly what your value is. It means you have to realise what it is you are bringing to the client. Your value has to be stated in client outcomes; not what you do.

Most people cite what they do; they cite tasks rather than results. You have to be clear on the value you deliver.  For example, if you are helping someone to become better organised, that’s not really the result you are providing. The result you are providing them with is more discretionary time.  This is the outcome, the value.   There is a huge difference between those two things. If you are coaching someone to make better presentations, that’s not the value of what you are doing . The value is to be able to influence people to sell more or influence people to support the corporate strategy or influence the media to report favourably on your company.

So what you really need to do here is start with the client’s objectives and work backwards. You don’t start with what you do to the client; you start with how the client will be better off.

How do you do it?

1. What are the objectives to be accomplished?
That is, how is the client’s condition to be improved? It’s never improved by a deliverable. It’s never improved by technology. It’s not improved by methodology. How will the condition be improved? What is the condition to be improved? That should be something you arrive at jointly with the client. This should be a partnership. This is not something you are doing to the client, this is a partnership. The client is determining whether you are appropriate; you are determining whether the clientis appropriate. But by getting the client to speak, you can make decisions as to whether this business makes sense. So the first thing you want from the client are the objectives: what is to be accomplished.

2. What are the clients' measures of success.
How will we know we – not I, we – how will we know we are successful? By what indicator? By what metric? Will it be increased sales? Will it be less stress? If so how will we know that?

3. What value is being delivered to the client?
“If we do this what does that mean to your organisation?”  This is a powerful tool as the client is stipulating what it’s worth to him or her. If the client states what it’s worth, then your fees for your value are academic. But it has to be the client's statement. You do this through intelligent questioning.

It’s all about objectives, measures, value.  Before pricing any project you need to think about the value that the client will receive as a result of your intellectual property.  From there you can price accordingly and articulate the job value to your client.

Could your business benefit from some business coaching or advice?  Contact us at Momentum Financial Group or call Geelong on 5221 9133 or Horsham on 5381 1122.

Mark Ainsworth
Director

Email Mark or connect with Mark on Linkedin


April 17, 2013
Tax Planning Geelong

April is no time for fools..!

Being a Geelong Accountant is sometimes the most rewarding job I could think of.

In April, our clients have finalized their 2012 compliance work and are now in the middle of tax planning and wealth creation discussions.

As a proactive adviser, our value is not telling our clients what happened last year, it is ensuring that we create certainty about tomorrow and the years to come. We can learn from the past but not change it. We can significantly impact the financial wellbeing of our clients' future and that is what we focus on.

If you are a business owner or investor and have not got a clearly articulated plan that provides clarity, certainty and direction then perhaps your adviser is not as proactive as they should be. April is a time for serious planning and is not a month for the ‘fool'.

To speak with the leading Geelong Accountants call Momentum Financial Group on 03 5221 9133.

Scott Kitchin
Director


December 20, 2012
Financial Planning and Investing in Geelong

Investment and Financial Planning....

Investing and money decisions are difficult to focus on in December as a general rule.

Many of our Financial Planning clients in Geelong have just had their bi-annual portfolio re-balance which has been a good experience for most. The recent buoyancy in asset classes has seen a nice appreciation in the portfolio balance - always nice to see.

The point of this blog is to remind you that volatility exists and diversification matters. Never fall into the trap of assuming that one asset class (i.e. Australian Shares) is always the safe haven. True, it may be the most appropriate but always remember that diversification matters.

What does this mean? Put simply, consistent reliable results compound to a greater sum in many cases. My warning is not to become overly confident in one asset class and never assume you know more than the collective wisdom of the market.

Many investors learnt the hard way since 2007 - don't be that stupid again...!

As the leading Geelong Financial Planner and Investment Adviser to Geelong residents, we encourage you to be the skeptic and not the optimist. Your conservatism may reward you.

Scott Kitchin
Director
Momentum Financial Group


December 17, 2012
Accounting Firm Geelong

Celebrate the Achievements....

Being one the few Geelong Accountants that has a dedicated Business Advisory and Business Coaching division, we see many businesses achieve some great moments.

Whilst the continual pursuit for more locks the focus on what is not yet achieved it is important to reflect. We like the hunger and dedication of our business owner clients; however reflection brings a calming balance and perspective.

For a moment, perhaps a few days, write on you whiteboard the achievements of 2012. Do not list the goals that you are still working towards. Tell the team (staff) of these achievements and make them proud to be part of your business. You need them and you should include them in your celebration.

As a business owner you are a winner. You have been brave enough to venture into the unknown and put your own finances, reputation and pride on the line....well done.

At Momentum Financial Group, we are striving to be the leading Geelong Accountant that delivers more profit, more cash flow and more fun to the lives of business owners.

Scott Kitchin
Director
Momentum Financial Group

November 13, 2012
Business Valuation

Where is the Value?

When a business owner thinks of retirement they quite often make the comment "this business is my super". What a frightening thought.

The reason I am writing about this common situation is because a business owner rarely can estimate the value of their own business. Too often they have their rose colored glasses on.

Getting a specialist business valuation firm like Momentum Financial Group to determine the real value of your business should take place no less than 5 years before retirement (at least). You need to keep it real and get specialist advice.

Once you have received the business valuation, you have two choices;

  1. Increase the Value (because your original estimate was too high)
  2. Preserve the Value (make sure you hold market share and keep relevant with your consumers)

Momentum Financial Group uses the valuation as step 1. Being the proactive accountants we are, we then move into a Value Growth program that is designed to dramatically increase the value of your business.

To all readers of this blog, you are entitled to a FREE BUSINESS VALUE GAP ASSESSMENT normally valued at $440...call 03 5221 9133. Momentum Financial Group is the leading Business Valuation experts in Geelong and Horsham.

Scott Kitchin - Director


October 4, 2012
Business Advice in Tough Times

How do Geelong Businesses thrive in difficult times?

Many clients tell us how tough business is at the moment. It is true, for many SME's the economic environment is really tough. 

What sets great businesses apart is their ability to take advantage of these times and not let it distract them and say "it's all too hard". Sure enough, there are many owners that just don't have the desire to be great and there is nothing wrong with that. These people are not clients of our business though.

A great business owner confronts the challenge and looks for the opportunity, for example:

  1. What products are in demand - focus and anticipate
  2. Where are your margins best achieved - focus on the 'low hanging fruit'
  3. Where is cash locked up in your business - set a 14 day plan to unlock your cash flow
  4. Motivate Staff - put in place incentives and educate them about the areas in the business to focus on. Get them engaged.
  5. Strategy - where can you maximise opportunity and out position your competition. Business is tough, get focused.

To understand how the best Accountants drive their clients to GREAT SUCCESS, call the team at Momentum Financial Group on 03 5221 9133. Our firm has been the leading Geelong Business Adviser & Geelong Business Coach driving local business to new levels!

Momentum Financial Group
Scott Kitchin
Director


September 4, 2012
Valuations Geelong

Family Law Valuations and Business Valuations Geelong

Many family law disputes require a Business Valuation .

Our firm has been the specialist business valuation advisor to family law matters for some time.

Our highly qualified valuation team gladly assist in complex family law financial matters:

  • We deliver the valuation
  • We deliver financial options to both parties
  • We deliver advice to reduce legal costs
  • We deliver results are sensible

For all matters, contact the Geelong Office on 03 5221 9133.

Momentum Financial Group
Scott Kitchin
Director


August 29, 2012
Accountant or Advisor?

The Role of “The Accountant”

What many business owners don’t get is that “the Accountant” is far more than that. My personal view is that this is not the fault of the client, the Accountant quite simply has not made them aware of the incredible value they can add.

Accountants need to pick up their game.

“The Accountant” as they are often referred to, should be referred to as “My Advisor”. The value that can be delivered to clients is enormous, unfortunately the Accountants bogged down in the muck of compliance work are not able to provide it fully. You need a proactive Advisor more than “the Accountant”.

For all Business Coaching and Business Advisory matters, call your Geelong specialist on 03 5221 9133.

Regards
Momentum Financial Group
Chartered Accountants
Scott Kitchin
Director


August 15, 2012
Accountant Geelong

Get your Sh$t together…

As the leading Chartered Accountant in Geelong we come across all types of businesses.

When we analyse why the great businesses are great and why the average businesses are average – we conclude these 5 key points: 

  1. The owner of the business is a business person NOT a business operator. He/she makes strong and decisive business decisions.
  2. The owner is focused on making a sustainable profit without reliance on one person. Many people think they have a business but when we ask “what profit would the business make if you were not there for 12 months” – many would fail. 
  3. Get a grip on your numbers. You need to know your weekly KPI’s and have a monthly Profit & Loss, Balance Sheet. The more you understand your business the better you will become at making key and critical decisions.
  4. Trust great people. Whether it is your Manager, Accountant or Key staff member you need to train, empower and trust them to deliver. Strong businesses have a great culture and have high performing people. Success breeds success.
  5. Value and Growth. You need to understand what actions will drive revenue by 20% p.a. and what outcomes will drive Value by > 20% p.a.

Momentum Financial Group is the leading Geelong Accountant in the SME sector.

Call the team on 03 5221 9133 for a complimentary discussion about your potential.

Regards
Scott Kitchin
Momentum Financial Group


July 31, 2012
Geelong Accountant

Make 2013 the best year ever!

Leading Geelong Accountant Scott Kitchin provides the following tips to help you have the best year in business ever:
  1. Be clear on what you want to achieve - get the Vision clarified
  2. Understand what drives profit and business value. It is important that you know there is a difference.
  3. Align your Vision to your operations - have a working plan that makes it easy to implement the Vision. You must get traction.
  4. Get input from a proactive Accountant, Coach and Advisor
  5. Review your results every month and set small weekly targets
Like many Accountants we are fortunate to represent the Geelong SME community in many ways. What sets Momentum Financial Group apart is that we are the proactive in driving better performance and a better life for business owners.
 
We would be delighted to take your call no matter what the size of your business - 03 5221 9133

Regards
Scott Kitchin
Momentum Financial Group
Director

June 26, 2012
Geelong Business Coaching

Geelong Business Coaching and Business Valuations


All businesses owners need to know the value of their business. Momentum Financial Group is the leading provider of Business Valuations in Geelong but that's not all.

Knowing the value of your business is one thing, but knowing how to impact and dramatically increase the value of your business is another.

Momentum Financial Group has a team of experienced, qualified high performance business coaches ready to help. Momentum have been the leading Geelong Business Coach and Business Advisor for some time, in fact, we are proud of being the best performed businesses in the region and providing our clients with top quality service and advice.

To experience the most dynamic and results driven business coach in Geelong, contact our leading team on 03 5221 9133 for a confidential and free assessment (valued at $385).



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