Month: January 2022

 

The Intuit’s Back to Business findings that were recently made available for us all have found that we are largely confident about business health moving forward and out of the pandemic.

With continued measures such as vaccination mandates, border control and financial support from the government, 81% of businesses are comfortable with the prediction that they will return to pre-pandemic levels in some 6 months.

According to the research, accountants and bookkeepers play an integral part in sustaining that kind of confidence, with 70% of those surveyed commenting on the valuable support of one or both of these professionals throughout the pandemic.

Whether it was advising businesses on the support packages available and guiding them through the timely application process, providing financial advice on where to cut expenses whilst maintaining jobs and supporting communities or simply being a stable support system, we have continued to provide valuable and up-to-date information designed to keep businesses not only surviving, but even thriving.

A further 1 in 5 businesses reported that they would not have survived if it wasn’t for their accountant or bookkeeper.

But our support doesn’t end now that measures are in place allowing us to see the light at the end of the tunnel. 84% of those responding to the survey believe that we are crucial to helping businesses return to pre-pandemic levels.

As conditions continue to improve and we can gain a little more assurance from the government about longer term guidelines, businesses can take the opportunity to seek financial advice and support to make the most of their position and begin aiming for growth.

Digital take up is now an expectation from businesses and their supporting services. If you did not pivot your business to seek new revenue streams online, then you either had them in place already or needed to close your doors for some period of time.

From the 37% of respondents who indicated they did looked into new revenue streams, 85% stated that they will continue to use this in the future.

Growth is certainly possible for these businesses and we ourselves are pivoting to ensure that we have the most appropriate and capable tools available at your disposal so that you can take charge of the situation.

At Glance Consultants, we look forward to striving towards excellence and enjoying the ride with you. 

Call us now on 03 98859793 

 

With the upcoming elections looming, a few concessions have been put on the table, including the extension of the popular tax offset for low and middle income earners. 

The low and middle income tax offset (LMITO) was previously set to expire in 2020, but due to the pandemic has already been extended. 

The LMITO gives all eligible Australians a $1,080 tax benefit when they lodge their tax returns on time. This is a huge boost for those who are financially more vulnerable than others and a welcome blessing where working restrictions caused by lockdowns and financial uncertainty through inflation can cause worrying times. 

It is now set to expire on 20 June 2022 and there are hopes that although the Prime Minister did not commit to an extension, he did not rule it out either. 

With businesses only now starting to recover from the strain of the past few years, many believe that if you want growth to continue, tax concessions are needed. There is widespread support for the continuation of the LMITO to support those lower income earners still struggling financially because of the pandemic. 

But this tax offset was initially seen as a temporary fix to a growing concern regarding bracket creep, with Phase 2 tax cuts being the permanent solution. 

Phase 2 tax cuts were in fact brought forward from the 2022-2023 income year to the 2021-2022 financial year and the LMITO continued from its 2020 expiration date. We have been reaping the benefits that both provide and unfortunately, concerns of double dipping from a taxation point of view have been raised. 

Tax relief boosts confidence and the entire economy, but the longer this temporary fix remains in place, the more difficult it will be to remove it in the future. 

We look to the government for more clarity on this issue in the coming months, with discussions being made on it closer to the time.

Here at Glance Consultants, we certainly see both the benefits and potential complications that the LMITO offers in conjunction with the Phase 2 tax. Call our office on 03 98859793 or fill out our contact form.