What does your leadership say about you?

Do you have what it takes to make sure everyone in your team makes it to the finish line? To be an accomplished leader, you need to have a certain set of skills and attributes that serve to inspire and motivate others. Leaders are driven and committed individuals who have ambition, and are willing to work hard to achieve their aspirations and goals.

Since there are many different approaches that can be taken to achieve success in a leadership position, it is important to know which approach and which skills should be utilised in different project ventures.

Start thinking about what kind of leader you want to be, by first identifying your own strengths and weaknesses. This can help to determine how you can play to your strengths and overcome your weaknesses, before taking on a team of individuals. Also, start to consider the kind of leader you would readily follow or look up to when working in a team.

Think about how you plan to motivate your team. Will you act as a role model and lead by example or find what motivates each individual and encourage that manner of thinking? Everyone is different, which means they respond to different forms of motivation.

Be prepared to try out different methods before you reach success. No matter what kind of leadership style you choose, every leader must be organised so they are prepared for anything when completing a project. Incorporating a consistent and systematic approach to the project makes it easier to delegate tasks, set deadlines, evaluate progress and meet expectations.

Lastly, just because you’re in charge doesn’t mean you know everything. Having this kind of attitude can limit your ability to grow and develop as a leader. Being open to learning new things, especially from your team, can serve to improve your knowledge and skills.

Agreement or deed?

The decision on whether to use a deed or an agreement can make a significant difference to the success of a transaction or project.

An agreement (or contract) must meet the following pre-conditions to be valid and enforceable:

• each party must have the intention to be legally bound

• there must be an offer from one party that is accepted by the other party

• consideration must flow between the parties

For a deed to be considered valid and enforceable, it must:

• be in writing

• be signed

• be witnessed by a person who is not a party to the deed

• use wording that indicates that the document is a deed i.e. ‘this deed’ or ‘executed as a deed’ and ‘signed, sealed and delivered’ should be used in the execution clauses. The wording in the document must be consistent.

• be provided to the other party or parties

• be supported by evidence that the parties intended the document to be a deed and are bound by it

The main difference between an agreement and a deed is that there is no requirement for consideration to make a deed binding. This is because of the idea that a deed is intended, by the executing party, to be a solemn indication to others that they truly mean to do what they are planning to do or are doing.

A deed is considered to be binding on a party when they have signed, sealed and delivered the deed to the other parties, even if the other parties have not yet executed the deed document.

Each state in Australia has specific legislation regarding the period of time in which a claims or actions can be lodged following the breach of an agreement or deed.

A claim following a breach of an agreement must be submitted within 6 years of the breach occurring. The period is longer for those who make a claim following a breach of the terms of a deed.

Since the length of time usually depends on the law of each state, it is important to have a jurisdiction clause in your deed or agreement.

Tips to achieving business loans

Applying for a bank loan can be a difficult process. But despite the borrowing challenges facing small business owners, it is possible to have your loan approved.

Bankers are not in the risk business, protecting their capital is paramount. Their careful examination of the integrity of a business has made it a priority for businesses to maintain a good relationship with their bank in order to preserve their future access to funds.

Develop a strong business plan
This is one of the first vital steps to ensure that the bank will identify you business as a low risk and gain the confidence to provide funds. A comprehensive business plan will highlight the viability of the business, provide the owners and managers business experience, the expenses that the loan will cover, the financial situation of the business, market changes and detailed sales expectations.

Improve your financial understanding
It is important to be aware of the financial status of your business by obtaining credit reports and public records. It will help to show the banker that you know your business and are mindful of the research the bank will acquire when deciding on the amount, if any, to loan to the business. Learn the banking language Understanding banking terms such as credit ratings, cost of capital and other financial drivers will place business owners in a secure position when negotiating the terms of their loans.

Keep the advisor informed
Financial advisors are there to advise and will have an intimate knowledge of bank processes. By keeping them posted of any plans or changes, the advisor can better advise the business on the best course of action, and ensure that the business will continue to prosper.

Types of fringe benefits

FBT law includes different categories of fringe benefits and specific valuation rules for each category. FBT is a tax employers pay on benefits they provide to their employees, including their employees’ family or other associates. The benefit may be in addition to, or part of, an employee’s salary or wages.

Employers who provide fringe benefits must pay FBT, even if the benefit provided is to an associate of their employee or by a third party under an arrangement with the employer. The type of fringe benefits employers must pay FBT on include:

Car fringe benefits
If an employer makes a car they own or lease available for the private use of an employee, they may have to provide a car fringe benefit.

Car parking fringe benefits
A car parking fringe benefit may arise if an employer provides car parking to an employee and meets several conditions (which can be found on the ATO’s website).

Entertainment and fringe benefits
The provision of entertainment includes providing food, drink or recreation and accommodation or travel in connection with, such entertainment.

Expense payment fringe benefits
Employers may provide an expense payment benefit if an employee incurs expenses and the employer reimburses them for the expense or pays a third party for the expenses.

Loan fringe benefits
Employers may have to provide a loan fringe benefit if they give their employee a loan and charge no interest or a low rate of interest.

Debt waiver fringe benefits
Employers may have to provide a debt waiver fringe benefit if they do not require an employee to repay a debt.

Housing fringe benefits
A housing fringe benefit may arise when an employer provides accommodation to their employee rent-free or at a reduced rent where that accommodation is their usual place of residence.

Board fringe benefits
A board fringe benefit may arise if an employer provides an employee with accommodation and an entitlement to at least two meals a day.

Living away from home allowance (LAFHA) fringe benefits
A LAFHA fringe benefit may arise if an employer pays an allowance to an employee to cover additional expenses incurred, because they are temporarily required to live away from their normal place of residence to perform their employment duties.

Transition to retirement update

A transition to retirement allows older workers who are moving towards retirement to continue working, while at the same time, draw down on some of their superannuation benefits. Since its introduction in 2005 by the Australian Government, the policy has been used by many Australians as a strategy to save tax and boost super before retirement.

Under the tax office’s new transition to retirement rules, those who have reached their preservation age are now able to reduce their working hours without having to reduce their income.

Individuals can do this by topping up their part-time income with a regular ‘income stream’ from their super savings. Under previous rules, taxpayers could only access their super once they turned 65 or retired.

Under the new regulations, individuals can only access their superannuation benefits as a ‘non-commutable’ income stream. A non-commutable income stream cannot be converted into a lump sum. This means that individuals cannot take their benefits as a lump sum cash payment while they are still working. Instead, they must take their superannuation benefits as regular payments.

Employers are still required to make compulsory super guarantee contributions for all eligible employees, which includes people on a transition to retirement.

Those considering the tax aspects of retirement or a transition to retirement should seek financial advice to find out what is best for their individual circumstances.

Securing the business’s presence online

Businesses are becoming more concerned with having an online presence; however they should also be concerned about the security issues that this can cause.

There is always a risk of malicious campaigns or viruses occurring online in an attempt to infiltrate business systems.

Even if the business is not directly active online, its employees most certainly are. This can prevent a risk if the employees are discussing the business online, or if they are accessing their social media accounts on the businesses computers.

The best way to approach the businesses security online is through a frequently reviewed set of procedures and policies. However, there are a number of ways to secure the business’s online presence:

• Create a policy and procedures document on social media activity within the business. Ensure that all employees are familiar with it, and what they can and cannot do concerning their personal online presence.

• Double check when opening a link from a social media page on business computers as hackers may create false pages to obtain a business’s log in details.

• Ensure that the business has different emails for each social media platform. If hackers are able to get their hands on the email for one site, they are likely to attempt to hack different accounts.

• Advise employees to choose their online friends wisely and that it is not wise to accept friend requests from people they do not know.

• Hold regular workshops and seminars with employees and technical assistance to educate them on the latest security practices and what dangers they may be facing online.

Make mornings easier with end-of-day rituals

As all productive workers know, the end of a working day is just as important as the beginning. While the lead up to finishing time in the late afternoon usually sees the majority of workers counting down the minutes until they can clock off, productive workers that engage in a few simple rituals at the end of the day can help them get off to a fast start in the morning.

Closing rituals can help you pinpoint exactly what you have to do the next day as soon as you walk into the office, increasing the likelihood of getting more things done, and not having to take your work home with you. Here is a three-step routine to help you to make sure you start every day on track.

Triage your to-do list
Evaluate what you can realistically complete today, and what could be pushed back to the next day. Adjust your to-do list based on this. Any task that is non-essential can be moved further back, delegated to someone else, or removed entirely.

Review tomorrow’s calendar
While it is natural to focus on what you have to get done now on busy days, making a point of checking your calendar a few hours before you finish work can mitigate the possibility of forgetting about a commitment that requires preparation work. For example, if you need to prepare for a meeting tomorrow, judge whether you should start preparing this afternoon or first thing in the morning.

Update tomorrow’s to-do list
When you’ve finished all of today’s tasks, spend a couple of minutes reviewing tomorrow’s to-do list. Decide whether tasks need to be completed in a certain order or prioritise items based on their importance. Organising tomorrow’s to-do list means you can walk into work the next morning knowing exactly what you’re going to work on instead of spending precious time getting organised.

Strategies to boost retirement savings for low-income earners

Here are four valid strategies low-income earners can use to boost their retirement savings for the future.

Co-contributions
Under the co-contribution strategy, the government matches the non-concessional contributions made by a super member who earns less than $34,454 a year. Super members who earn up to $50,454 a year are eligible for a partial benefit. The maximum amount a low-income earner can receive is $500, and part thereof for those who earn up to a $50,454 in taxable income.

Even though members don’t receive the money until they lodge their tax return, it is a beneficial strategy to undertake, as it is essentially money for nothing.

Spouse contributions
The spouse contribution allows individuals to make a non-concessional contribution of up to $3000 to their spouse’s super account if the spouse earns less than $10,800. The contributing partner receives a tax rebate of up to $540 for the contribution. If a receiving spouse earns up to $13,800, the contributing spouse is then entitled to a portion of the $540 rebate.

Low-income super contributions
Individuals who earn less than $37,000 a year can use the low-income super contribution. The strategy is a rebate of contributions tax. For example, the employer of an individual who earns $35,000 must pay a super guarantee of 9.5 per cent of their salary ($3325) into the individual’s super fund. The fund is then required to pay 15 per cent tax on that amount, which equates to $498.75. That amount ($498.75) is refundable to the fund in the following tax year, thereby boosting the individual’s super and reducing their tax.  

Super-splitting
Super splitting allows individuals to split part or all of their super contributions into their partner’s superannuation fund. This boosts the balance of the receiving partner, who may have taken time out of the workforce for reasons, such as raising the children. The limits on super contributions remains the same ($30,000 or $35,000 a year) depending on the contributing partner’s age. Since 15 per cent of contributions tax is deducted, the amount moved to the partner’s super fund is 85 per cent of the contributions.

ATO crackdown on rental property tax claims

The ATO is currently targeting taxpayers who rent out their holiday homes for only a few weeks during the year but claim a full year’s worth of deductions on their tax returns

The tax office is will be paying close attention to rental property owners, especially those who own a holiday home who incorrectly claim deductions for initial repairs to recently acquired rental properties.

Last year, the ATO sent out letters across Australia reminding people to only claim deductions that they are entitled to for the periods that the rental property was rented out or genuinely available for rent.

While the majority of taxpayers who received those letters reduced their claims, the key concern that remains is over people who make claims for expenses during a time when the property was not genuinely available for rent.

With the ATO taking a more broad approach in monitoring rental deductions, now may be the perfect opportunity for holiday home investors to review the rules surrounding holiday home tax deductions to ensure that they can address any risks or issues in a timely manner.

Homeowners should be aware that it is not just holiday homes that are under focus by the ATO. The office will also commence addressing rental property owners who incorrectly claim deductions as well.

A common mistake that has risen among rental property owners is claiming for deductions for initial repairs to rectify damage, defects or deterioration that existed at the time of purchasing the property.

Taxpayers should be aware and understand that they are not entitled to claim a deduction for any repairs made to their rental property for issues that existed when they purchased it, even if the repairs were carried out to make the property suitable for rent. Instead, the cost of these repairs is used to work out any profit or capital gain, when the property is sold.

How to write a job ad

With such a large number of varied job ads online and in print, if you want to attract the best people you have to make your ad stand out. It is also very important to properly convey your workplace culture in the ad, so that you do not have to waste time interviewing inappropriate candidates.

Great job ads are appealing but also honest. If you oversell the job, your new employee will quickly become disappointed. If you undersell, you may reduce the scope or quality of applicants applying.

You should make sure that you write your ad in a way that clearly reflects the personality of your business and also conveys a message to your applicants about the type of person will suit the role. Getting a person who is a good personality fit to your company is equally as important as getting someone with the right skillset.

If your ad is reflective of your company, applicants will be in a better position to judge whether or not they should apply.

You should always include a detailed list of duties that the role entails and the types of skills and qualifications that you are looking for. A little attention to detail here can save you a lot of time when it comes to sorting resumes.