Knowing your financials is vital for success in 2021. Last year resulted in many businesses being unsure about their long term profitability and highlighted cashflow issues.
Figuring out how to achieve a work life balance in 2021 is essential. If 2020 taught us anything, it’s that life can be unpredictable at the best of times. Many people are favouring a lifestyle that isn’t so fast paced and are making the most of their time off. Never has a healthy work life balance been so crucial.
The Australian Small Business and Family Enterprise Ombudsman, in conjunction with Family Business Australia, has released a new online guide to succession planning — the “Introductory Guide to Family Business Succession Planning” — which provides a step-by-step guide to passing the family business on to the next generation.
A recent report revealing that 54% of family businesses have no documented succession plan in place and no retirement plan for the current CEO.
The easy-to-read guide offers tips on how to handle tense conversations that can arise between family members throughout the transition phase.
The guide is free and available on both the Family Business Australia and the ASBFEO’s websites.
The ATO has recently identified a new scheme where SMSF trustees were informed that they could set up a new SMSF to roll-over the fund balance from the old SMSF and then liquidate their old SMSF, in an attempt to avoid paying potential tax liabilities.
The ATO has updated its webpage containing the fringe benefits tax (‘FBT’) rates and thresholds for the 2021/22 FBT year.
Two amounts that were not previously announced for the 2021/22 FBT year are:
- the FBT record keeping exemption is $8,923 (up from $8,853 for the 2020/21 FBT year); and
- the statutory or benchmark interest rate is 4.52% (down from 4.80% for the 2020/21 FBT year).
The ATO also separately released two taxation determinations setting out further rates and thresholds for the FBT year commencing on 1 April 2021, being:
- Motor vehicle (other than a car) — cents per kilometre rate; and
- Reasonable food and drink amounts for employees living away from home.
Editor: Please contact our office if you need more information about these rates or FBT in general.