When an employee announces their pregnancy

Small businesses that fail to meet the obligations that arise once an employee announces their pregnant risk attracting hefty penalties. These obligations are not only in relation to the Fair Work Act, but also to workplace health and safety and state and federal anti-discrimination legislation.

To avoid facing any legal risks, employers should ensure they have effective policies and procedures in place to manage pregnancy and maternity leave.

The policies and procedures should ensure that the employer:
– assesses the pregnant employee’s situation, in consultation with the employee
– understands the business’s obligations
– identifies the fundamental requirements of the employee’s role.

Beware fraudulent investments

There is one hard and fast rule that you should always follow when it comes to identifying fraudulent investment schemes: if it sounds too good to be true then it most likely is.

While there are some investment opportunities that have the potential to yield massive returns, there will always be a proportionate degree of risk. Anyone promising large returns with minimal risk is almost certainly hiding something. The best way to safeguard against investment fraud is to do secondary research. Ask around, search online and always take your time before making a decision.

ATO warning on aggressive tax planning

The ATO is warning taxpayers of aggressive tax planning strategies will attract a significant amount of scrutiny. A number of specific strategies have been flagged as aggressive in a video named ‘Tax Tricks That Will Get You In Trouble’.

When it comes to tax avoidance schemes, it is not uncommon for individuals to be duped by a fraudulent investment opportunity or given bad advice from an unqualified financial planner. The advice that the ATO give is fairly straightforward: if a tax planning strategy seems too good to be true then it probably is.
This is also advice that should be applied to investment returns that seem unrealistically high. Multiple research studies have proven that people with higher rates of education and investment experience are actually more likely to fall for fraudulent investment scams because they are less likely to seek an outside opinion.

Australians warned that $1 million superannuation may be insufficient

For some time now, superannuation experts have been warning Australians not to be distracted by the seemingly large size of their retirement nest eggs. While the total balance of many super accounts may sound impressive, it can distract from the reality of the income stream it is likely to deliver.

Between longer life expectancies, inflation, and low interest rates, retirement savings are not always delivering the expected retirement income. Obviously, a range individual circumstances will dictate how much an individual will need to cover their expenses in retirement. In particular, single retirees will tend to have significantly higher living expenses than those who are co-habitating.

Furthermore, the trajectory of interest rates is a determining factor in how a nest egg  will perform in pension phase. And, as we all know, accurately predicting the future of interest rates is an impossible undertaking.

Beware DIY marketing solutions

Access to DIY graphic design, social media and video tools is increasing, and many small business owners are taking advantage of these cost-effective marketing solutions. Online creative tools are not only cheap and becoming easier to use, they also let you take control of your own marketing and advertising.

However, business owners are advised to proceed with caution. Marketing and advertising professionals are not just creatives, they have a sound understanding of competition law and standards requirements. As such, it is not uncommon for businesses who have opted for DIY solutions to run into trouble.

The regulations surrounding advertising are complex, and it is advisable to seek professional advice before investing resources into a project.

Three ways to make your business more efficient

Efficiency can be a game changer in the world of business. The more benefit that you can gain from your limited resources the better your chances of out-manoeuvring your competitors. Her are three tips to boost your efficiency:

1. Use the right communication software: Email is not always the most efficient means of digital communication. Research some other communication alternatives that might be suited to your team and clients.

2. Make sure that your employees are working to their full capacity: Employees who are overworked, unmotivated or bored are unable to perform to the best of their abilities. Aim to increase engagement and enjoyment in the workplace and discuss workloads with your staff to ensure that they are not struggling.

3. Don’t overdo the meetings: Too many meetings can be a huge time waster and are also likely to annoy your staff. Keep things short and make sure that only the necessary people are present.

Never forget that social media is a two-way street

A lot of business owners are new to social media marketing, and, as with all new endeavours, there are always a few early pitfalls. One of the biggest mistakes that people make is treating social media platforms as though they are traditional media platforms. That is, using them to broadcast a one-directional message.

Social media is an interactive mode of communication. It is about inviting your audience to participate in the communication process and reacting to their responses. Engaging people on social media can involve starting discussions, inviting people to share experiences or photographs, or having an online competition. There is no limit to ways that you can connect with your customers online, and the more imaginative you are, the better your chances of success!

Australians set to hit by ‘bracket creep’

The government’s tax white paper has revealed that in the next twelve months the average Australian will be pushed into the second highest tax bracket. As average wages become higher due to inflation, but do not actually rise in real terms, many taxpayers will be pushed up into a higher tax bracket. This phenomenon is known as bracket creep.

Currently, the average Australian wage is around $75 000, meaning that a majority of the population sits in the third highest tax bracket ($3572 plus 32.5c for every dollar over $32 000. However, by 2016-17 the average wage will be around $80 000, pushing people into the second highest marginal tax bracket.

Some experts are claiming that concerns surrounding bracket creep are overstated and that the government is most likely adjust marginal tax rates in response to wage inflation.

Implementing business strategies

Many business owners have fantastic ideas about how to improve and grow. In order for these ideas to become a reality, they first need to be translated into a strategy. However, a strategy is only ever as strong as its implementation is effective. Here are our top tips for making sure that your strategy doesn’t get lost in translation:

1. Break it up into steps: Plan out each stage of strategic execution and make sure that you have a realistic timeframe to complete each step. It is also important to ensure that each step is a logical progression from the last.

2. Align your strategy with your resources: You need to ensure that your business has the resources to implement the strategy. Remember that resources include cash, infrastructure, manpower, skill sets, and time!

3. Account for unforeseen obstacles: It is impossible to predict what challenges may arise in the course of your new venture, but by assuming that something will go wrong, and allocating appropriate leeways in your plan, you will be far better prepared.

Plan to tax bank deposits

The federal government has announced that it is planning to place a tax on bank deposits in its next budget, which will be handed down in May. According to media reports, the tax will take the form of an insurance levy; the government offers consumers a savings guarantee of up to $250 000 to protect them in the event of a bank collapsing. To support this insurance guarantee, accounts holding more than $250 000 will incur a 0.05% levy.

Banking representatives are warning that the cost of the tax may be passed on to consumers. Further criticism of the scheme comes from assertations that the likelihood of an Australian bank collapsing is extraordinarily remote. The new banking tax is expected to raise $500 000 each year.