Summer 2022 Newsletter
Summer 2022 Newsletter
Hello Clients and Friends of Yield
We welcome you to our summer 2022 edition of our newsletter where we will update you with some of the exciting developments at Yield and also provide some business tips plus much more.
On a broader level we are very aware of the constant challenges our clients face as we move out of the pandemic into an overheated economy with the challenges of increasing input costs, increasing interest rates and labour shortages. We are well placed to guide you through these challenges and to assist in making wise decisions so that your business’s remain sustainable and you go from strength to strength in the future.
At Yield we have continued our philosophy of development on both a personal and professional level. The amazing staff at Yield continue to develop and learn and it is great to witness the relationships they foster and joy they get from making a difference to our clients. We sincerely hope you are enjoying the holistic approach and the relationships you have with our staff at Yield. They are all incredible.
As we again look towards the Christmas and holiday period it is a great time to reflect on the year that has been, our achievements, things we could have done better and what we have learned. The common thread for nearly everyone in business is that the most precious commodity is time. We encourage everyone to make great choices about how we use the limited time we have. A great starting point is spending quality time with friends and relatives over the Festive season.
We wish you all the very best for a fantastic, prosperous and balanced 2023. We hope you enjoy our newsletter.
Full Temporary Expensing (FTE)
The FTE rules introduced by the government as part of the stimulus package during the pandemic has provided many clients with welcome tax breaks making the purchase of eligible assets completely tax deductible. On a couple of occasions the government changed the status of the FTE and then pushed it forward a year. The present status is that the end for the FTE arrangements is 30 June 2023 and business needs to be aware of the consequences.
Firstly the full deduction continues to be available for eligible assets that are “in use or installed ready to use” at 30 June 2023. Once the FTE concludes we understand that the treatment of business assets will revert back to the Small Business Entity (SBE) pooling arrangements.
Note that most businesses that have taken advantage of the FTE rules have fully depreciated all of their assets. This has the effect that when assets are sold or traded in the future the consideration for those assets will be fully taxable. For example if a farmer traded an existing Tractor fully written off under FTE for $70,000 and bought a new tractor for $100,000 the $70,000 would be fully taxable and under the SBE pooling would be entitled to a $15,000 deduction for the new tractor. This transaction therefore would result in $55,000 of taxable income.
This type of transaction would be very common into the future and clients need to be aware of the consequences and plan for them.
Please refer to Full Temporary Expensing (FTE) for more ATO information or be in touch with our office to discuss.
We have recently noticed that the banks are putting a higher emphasis on Cashflow Budgets when assessing clients capacity to borrow for business lending facilities. It seems they are no longer relying on historical performance but wanting predictions about the future. In particular if a business borrowing is for a business activity that changes the capacity of a business, a new farm for instance, they are interested in the result of the investment on a year in year out basis. That is, once full capacity is reached as a result of the investment, what is the expected impact on cashflow and when will it be achieved and also are there funds readily available to assist during the time it takes to reach full capacity.
This has come about as financial institutions have an obligation to provide responsible lending and we agree that it is a critical tool.If the budget is completed realistically and the figures show a shortfall the budget may be a tool that results in not going ahead with a particular project thereby avoiding a potential problem.
Cashflow Budgets aren’t just for Finance but can assist with day to day running of your business. They can show you where there may be low cashflow in a particular month or when there will be additional funds available. These figures are based on estimates you provide and should be continually updated to reflect actuals as each month ends to give you a true indication where you stand.
If you believe a cashflow budget would be useful to your business and would like us to assist with this, please contact our office.
Native Forest Transition
The WA government made the decision in September last year to put an end to the native timber logging industry from 2024. This decision has had varying impact on many businesses in our area and is the end of an era.
The state government also announced that there would be compensation packages to assist business’s effected by the decision. On 2 November 2022, Minister Kelly released an announcement (see here; Grant Applications to Assist Native Forest Industry) regarding the first round to open under the Native Forest Transition Industry and Community Development Programs, which is the Small Business Development & Diversification (SBDD) funding round. Round 1 funding applications close 31st January 2023
Are you or your business affected by the Native Forest Closure? Do you wish to explore the idea of entering a new industry?
More information on the Industry and Community Development Programs can be found here: Industry & Community Development Programs. The South West Development Commission team in the Manjimup office are available to assist with enquiries and completion of the application and/or to discuss new business projects and can be contacted on;
9777 1555 or NFTEnquiries@swdc.wa.gov.au
If you require free Business Advisory advice please contact Jasmine Porter via phone 0413 612 804 or email email@example.com.
Client Case Study
Stephen and Emma Podziuka
Stephen and Emma conduct their business SE Plantation Services a plantation and orchard servicing business in the south west providing pruning, planting, fertilising and maintenance services to farmers and plantation companies.
Stephen was conducting the business as a sole trader and as the business was rapidly expanding sought out Yield for advice on how to better structure the business.
Through a consultative process assessing risk, succession planning opportunities and optimum taxation outcomes the Podziuka’s decided on a Trust entity through which to conduct their business.
Yield’s Vanessa Tempra assisted Stephen and Emma through the entire process with setting up their Xero file, giving Emma training on the Xero program, kick starting bank feeds, payroll training over numerous sessions so that now Emma is confident in the bookkeeping she is doing and Vanessa just has to answer the occasional question and do a quick review of the BAS prior to lodgement. A model outcome, clients in control and a clear, efficient set of procedures – of the process Stephen and Emma said we have had no past experience in Xero accounting. Vanessa has been supporting us in training and has exceeded all expectations in helping us learn and structure our business. We look forward to the ongoing support from Yield. Excellent professional service. We highly recommend Yield Accounting Group.
Cogo – a new Xero Partner App
Cogo is a relatively new Xero partner app which enables simple climate action for your businesses. Measure and manage your carbon footprint, then share your progress with customers and stakeholders.
If you’re using Xero to run your business, then tracking your carbon footprint is only a click away. Cogo uses your finances as the basis for calculating the carbon footprint of your business and helping you to take action to reduce it.
At this stage Yield is looking for expressions of interest from our clients who may have an interest in this area, so we can then potentially partner with them to trial the Cogo app.
Call us to find out more; additional detail and guidance can be found at:
XEROCON SYDNEY 2022
In early September 2022 we closed our offices and 15 staff headed off to attend Xerocon in Sydney. It had been the first Xerocon since 2019 due to Covid and they promised the biggest and best yet. We were fortunate enough to spend two full days listening to an excellent line up of guest speakers including Adam Goodes and Kemi Nekvapil, new updates from Xero as well as many hours learning about new and existing Xero Add on applications.
After two days of learning, networking and collaborating, Xerocon ended with a 80’s Wrap Party at none other that Luna Park which was a great way to finish off the conference.
Whilst we were in Sydney, we took the opportunity to take on the highest team building challenge we have faced – the Sydney Bridge Climb! It was an amazing (and at times a little terrifying) experience but the sense of accomplishment when we conquered this magnificent structure was definitely worth it. It capped off a great few days in Sydney.
Since our last staff update we have had a few sliding door moments at Yield with some departures and arrivals, weddings and milestones.
Sadly Kaitlin Cybula left our office as her partner Lawrence, received an employment opportunity in Albany that he couldn’t refuse. Kaitlin has taken up a position with a firm in Albany, and we wish her all the best in the future.
We also welcomed two new fantastic staff members to our team;
Kate joined us as our key administration person in our Manjimup office. Kate is enjoying taking on additional responsibilities within the office as she gains experience. You will generally see Kate’s infectious smile and be welcomed by her as you come through the doors of our Manjimup office.
When Kate isn’t at work, she is spending time with loved ones, playing sport and cuddling with her three adored family pets; Molly, Daisy & Maisy
Kylie has joined our Pemberton office in a client relationship bookkeeper role, Kylie has a wide range of experience in business being heavily involved in the family farm, the bookkeeper for her own family business. Already Kylie is becoming a key member of our staff and making her mark.
You will also find Kylie running around doing volunteer work, playing basketball, watching football, and running around after her partner Peter & son, Jayden
We congratulate Chloe Martyn and Andrew Vivian as they tied the knot in a lovely ceremony last weekend at the Pemberton Golf Course.
We wish Chloe, Andrew and beautiful little Blair marital bliss.
We also congratulate Nicola, Gareth & Grace on the safe arrival of Mia Rose Evans.
Mia was born on the 14 December, and everyone is doing well.
We cannot wait to meet Mia
Anna Ditri became a grandmother to the gorgeous Charly Louise, who was born on the 22 September 2022.
Congratulations to Steven & Leonie!
Christmas & New Year Closure
Yield will be closed over the festive season from 5:00pm Wednesday 21st of December 2022, and reopening for business at 8:30am Monday 9th of January 2023.
From all of us here at Yield, have a wonderful Christmas and New Year! We look forward to working with you in 2023.
The Material contained in our newsletter is no more than general comment for the benefit of clients and associates of Yield Accounting Group. Readers should not act on the basis of the material contained in our newsletter without taking professional advice relating to their particular circumstances.
Liability limited by a scheme approved under Professional Standards Legislation.