THANK YOU PHIL – A year of NEW beginnings!

Last Friday the Inspire Team farewelled our friend and Senior Accountant Phil “Shep” Shephard.

Phil has had a big year, welcoming his new baby girl Melody Jane Shephard into the world.

He is now making a move to the sunny coast to be closer to family and…

The bit that excites us a lot at INSPIRE,

Starting his own Accounting practice.

Phil has been with the INSPIRE team since the early days and something he said in a recent team meeting really sums up the nature of the man.

What made April great for me?  I did a $5,000 tax return for a young family who are about to have a new baby and a $20,000 tax return for a family who are going through some pretty serious financial distress.  That’s what it’s all about.

So we’re both very sad to say farewell to Phil, but so so proud of his new young family and wish him all the best in his sea change to the beautiful sunshine coast and foray into business.

If you’ve ever had a dealing with Phil in business or in life, please join us in saying THANKYOU and ALL THE BEST!

 

This Inspiring Business Event is powered by Inspire CA, an uber cool and disruptive accounting firm that is proving that not all accountants are boring.

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Secure your tickets now:

WEDNESDAY 8th JUNE, 5:30pm – 8pm 

Co-Founder of Australia’s 9th fastest growing company shares his rare insights into finding your competitive advantage.

 

Inspiring Business Event with Glen Carlson of Dent Global – June 8, 5:30 pm $50 (Charity)

 

If you’re in business and you want to make a big dent in the universe, you’ve probably asked yourself the following questions recently –

• How do I make the competition irrelevant?
• How do I deliver even more value to my clients, generating more impact and more profit for everyone?  
• How do I get people lining up to do business with me?

So we reached out to what I call the ‘guru of influence’.  His name is Glen Carlson.  

He’s been a mentor and aspirational person that Ben and I have shadowed for a long time.  If you’ve ever read OVERSUBSCRIBED, Become a Key Person of Influence or listened to the Dent Podcast, you’ll know I’m talking about the co-founder of Australia’s 9th fastest growing company Dent Global.

Glen is a wealth of knowledge in the space of becoming a Key Person of Influence, and while he is well known for running a team of 40 in 12 time zones, you may not know he’s originally from the sunny coast.

Glen has agreed to come share his rare insights at our next Inspiring Business Event.

We’ve asked him to go deep on these 5 key elements of influence:

Pitching – Capturing the attention of your ideal customers, team, partners and investors.

Publishing – Developing content that builds authority at scale so you can charge a premium.

Products – Turning a service business into a product business that drives profit & removes you from delivery.

Profile – Personal Branding without the shameless self promotion.

Partnerships – Generating 10x inbound opportunities without advertising.

We can’t wait to introduce you to Glen, and 65 of the  growing Inspiring Business Community.

 

12 STRATEGIES FOR BUSINESS OWNERS TO SAVE $20,000+ TAX

WE’RE HELPING YOUNG FAMILIES IN SMALL BUSINESS ACHIEVE A VERY BIG GOAL – SAVE $500,000 IN TAX BEFORE 30 JUNE.

We’re calling it the …

SAVE $500,000 TAX CAMPAIGN

Imagine for a minute …

What half a million dollars would mean, back in the hands of the Young Families that work so hard to earn it.

• A long needed family holiday?
• A credit card that’s been hanging around – paid off?
• An upgrade to the family car?
• A small renovation to the home?
• A donation to a social cause?
• An investment in the family wealth?

You obviously want to keep as much of your hard earned cash as possible.

We’ll show you how.

The ‘SAVE $500,000 TAX campaign’ kicked off with a LIVE webinar.

12 STRATEGIES FOR SMALL BUSINESS OWNERS TO SAVE $20,000+ Tax.

We educated small business owners and entrepreneurs on the top 12 strategies to reduce your tax, legally.

In the webinar you will learn –

1. Sole Traders, Companies and Trusts: How to maximise your tax savings through Business Structuring.
2. 10 people and entities you can distribute profit to in order to dramatically reduce your tax bill.
3. A little known strategy to pay ZERO tax on growth in your investments.

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The back story …

The Inspire Boys became well known in the local small business scene for their monthly Tax & Accounting subscription service that pays for itself many times over through both tax saved and profits increased.

The game changing subscription service is called IT’S ALL SORTED.

Gone are the days of only hearing from your accountant once a year, getting surprise bills or being charged for phone calls.

Inspire CA is a disruptive accounting firm out to prove that not all accountants are boring.

 

 

Entrepreneurs Of Brisbane – Ezra Taylor

We believe that every business owner has an inspiring story to tell.  A story of how they began.  A story of how they overcame the odds.  A story of what drives them.  A story of when they had a breakthrough.  A story of who inspires them to keep going.  Entrepreneurs of Brisbane is where we tell these inspirational stories, one entrepreneur at a time.

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Hi Entrepreneurs Jessica Kate here, Editor of Entrepreneurs of Brisbane (EOB) and Community Manager at Inspire CA.

Introducing Ezra Taylor from Concrete Training & Movement

“When I first started my business, I had no idea what I was getting myself into. They don’t teach you much about the business side of things when you’re getting your certification. For me, going into business was like being thrown straight into a bullring or fatherhood. You’re not ready for it, but you learnt to adapt pretty quickly. Education has been a massive help as it has taught me to not freak out so much. In fact, you soon realise that there’s no real growth unless you’re thrown into those challenges. So my biggest advice now is, be patient learn how to relax in those stressful times and realise that those are the key time for learning.”

 

What has been you biggest challenge in business and how have you overcome this?

“The biggest challenge for me is accepting that I’m not good at everything. Connecting with people who are good at things that I’m not good at, and asking them for help. I’ve invested in coaches and mentors. Some have worked, some haven’t, but I think aligning yourself with people who have been through the experiences that you face challenges with, and not being afraid to ask for help.”

What’s the key to successfully balancing business life and family responsibilities?

“I think establishing routine and education. Consistency is really the key. We all know what we should be doing and shouldn’t be doing. Some more than others, but I think if you can educate yourself and create a routine around that education.
For example, a practice that I’ve been introducing to everyone is just having a morning routine. Waking up an hour before you have to be anywhere, having an herbal tea, maybe a little quiet time for  meditation and doing a little movement. This will prepare you for the challenges that will come throughout the day. That gives you more chance to  not stress. Which gives you the energy to give back instead of taking, which is what the world needs right now.

Time Your Capital Gains – Hold for 12 months & Sell  in a low income year.

How does this strategy work?

You bought an investment.

A property for example.

Bought it for $200,000, sold it for $300,000.

You made $100,000 profit – wooohoo.

The tax man wants a piece of your pie – booo.

It’s called Capital Gains Tax.

So here’s 2 strategies around TIMING to minimise Tax on your Capital Gain.

Option 1 (Without Tax Planning):  Pay Capital Gains Tax on $100,000 Profit.

 

47% x $100,000 = $47,000 tax.

Or only $53,000 profit left. 🙁

Option 2 (With Tax Planning):  Hold off the sale of the Property until you’ve held it for 12 months.

 

You only get taxed on half the profits.

That’s 50% of $100,000 tax free (woohoo!) and

47% x $50,000 = $23,500 tax.

By timing the sale of your property you’d save $23,500 TAX and get $50,000 of profit TAX FREE, when compared to selling before 12 months is up.

Timing Your Capital Gains Part 2 –

So you’ve had a great year aka your income is high.

Any profits you make on the sale of an asset will go straight onto your (already high) taxable income.

So this TIMING strategy also relates to timing the sale with a year in which your income will be lower.

You know that round the world sailing trip you wanted to take the family on?

Good Timing.

You know that crappy year where nothing really went well in business?

Good Timing.

What do you need to implement this strategy?

• A Business.
• An asset that you’re going to sell at a profit.
• A chat with an Inspire Chartered Accountant – www.calendly.com/inspireca.
• To take action prior to 30 June.

FAQ’s: Timing Your Capital Gains.

Does the same strategy apply to selling shares in my business?

Yes, it certainly does.

What about when I sell shares in someone else’s business e.g. Telstra?

Yep – same treatment as well!

What if I hold the assets in a trust, can I avoid paying Capital Gains Tax?

Nice try – but no.

You cannot avoid capital gains tax.

If you hold assets in a trust, this strategy still applies.

Hold for over 12 months, and sell in a low income year!

NEXT STEPS:  You can book in a Quick 10 Min Chat here with an Inspire Chartered Accountant to talk about Tax Saving Strategies that will work for you.

Accelerated Asset Depreciation – 100% deduction NOW if it’s under 20 k.

How does this strategy work?

You buy an asset.  

A car for example.

For running around doing quotes onsite.

Its value will GO DOWN (aka depreciate) over time.

So the tax man lets you claim that depreciating value – Thanks, Tax Man!

The key to THIS strategy is the magic number of $20,000.

If the asset is $20,000 and under you get 100% tax deduction NOW.

Option 1 (Without Tax Planning):  Buy a company car for $20,001.

You can claim depreciation … bit by bit over the next 8 years.  Sad Face.

(If you want the detail, here’s how much depreciation you could claim in the first year: Only up to a maximum of $5,000 in the first year, but this amount gets lower the further into the financial year that you buy it.  If you buy the car on 30 June, you would only get a $13 tax deduction!! boring…)

Option 2 (With Tax Planning):  Buy a company car for $20,000.

You get a 100% Tax Deduction this year.  Woohoo!

By purchasing an asset $20,000 and under, you’d  save $9,400 tax, when compared to paying 47% tax in your own name.

BOOM.

So if you were already shopping for a new asset for the business, remember the magic number – $20,000.

• The Coffee Machine for the Cafe
• The Squat Rack for the Gym
• The Drill for the Sparky
• The Abacus for the Accountant (lol)
• The Scanner for the Doctor
• The Microphone and Laptop for the Podcaster
• The Deep Fryer for the Cook
• The Pole for the Dancer
• The Table for the Physio
• The Camera lense for the Photographer

What do you need to implement this strategy?

• A Business that turns over under two million dollars ($2,000,000)
• An invoice for an asset under $20,000 or under $22,000 if you are GST registered and the expense has GST on it.
• A chat with an Inspire Chartered Accountant – www.calendly.com/inspireca.
• To take action prior to 30 June.

 

FAQ’s: Accelerated Asset Depreciation.

Why have I never heard about this strategy?

This strategy has been around since May 2015.

Your accountant should have made you aware if they’re a good adviser for your business.

Why $20,000?

This is the limit that the ATO advised in the May 2015 budget.

What if I turn over more than $2,000,000 can I still use the strategy?

No, sorry.  The strategy is only available for what the ATO calls ‘Small Businesses’ – those who turn over less than $2,000,000.

 

NEXT STEPS:  You can book in a Quick 10 Min Chat here with an Inspire Chartered Accountant to talk about Tax Saving Strategies that will work for you.

 

How does this strategy work?

Each month you pay super for your employees.

9.5% of their wage.

For a quarterly payroll of $100,000, that’s $9,500.

Now your Employee Super Payments are typically due on 28th day of the following month after each quarter finishes.

For the quarter of March to June 2016, it’s due 28 July 2016.

But what if we we’re to pay that bill early?

Just one month early.

You’d get the tax deduction now, which is an additional 10 months of cashflow.

Here’s how the numbers pan out…

The company tax rate is 30%.

So this $9,500 Super Bill would reduce your tax by $2,850.

Option 1 (Without Tax Planning):  Pay the $9,500 super bill on time in July 2016 aka NEXT financial year.

$9,500 Super Payment goes out in July 2016.

$2,850 Tax Deduction comes back in August 2017 (when you lodge your company tax return).

13 months later.

Option 2 (With Tax Planning):  Pay the $9,500 super bill early aka THIS financial year.

$9,500 Super Payment goes out in June 2016.

$2,850 Tax Deduction comes back in August 2016.

3 months later.

By paying your employee super payment 1 month early, you’d enjoy $2,850 in your bank account for 10 months longer, when compared to paying on time.

Now a couple of grand extra cashflow for 10 months doesn’t seem like much.

But when you layer a few pre-payment strategies on top of each other, we’ve seen clients with an additional $10,000 – $40,000 cashflow.

That’s a game changing amount.

And with that, you can –

• Sleep at night
• Pay down your debts
• Make a deposit to your Profit War Chest
• Invest in business growth (see step 3 + 4)
• Turn $1 into $2 (see step 5)
• Build a rainy day fund (3 months Business expenses)

What do you need to implement this strategy?

• A Business.
• Cashflow available to pay early.
• A chat with an Inspire Chartered Accountant – www.calendly.com/inspireca.
• To take action prior to 30 June.

FAQ’s: Pay employee superannuation in June not July.

When does the payment have to clear the account by?

You need to make your payment before business closes on 30 June. (It must have left your bank account.)

Can I pay more than one month’s superannuation payments early?

Yes you can, but we wouldn’t recommend going overboard.

You might accidentally go over your employee’s super contribution caps ($30k in a year if they’re under 49, and $35k in a year if they’re 49 or older).

Doing this would cost them up to 47% in tax on that super.

Can I prepay other expenses early to get the same effect?

Yes you sure can (so long as your business turns over LESS than $2,000,000 in a year).

And you’re not prepaying an expense for any more than 12 months.

NEXT STEPS:  You can book in a Quick 10 Min Chat here with an Inspire Chartered Accountant to talk about Tax Saving Strategies that will work for you.

Pay your Life Insurance premiums from Super – and get double tax benefits.

How does this strategy work?

Life Insurance is money your family will receive in the event of you kicking the bucket.

Interestingly the premiums you pay for Life Insurance are not tax deductible, unless they’re paid from your superannuation.

Let’s say the premiums for your Life Insurance are $5,000 per year.

Option 1 (Without Tax Planning):  Pay the $5,000 Life Insurance premium outside of super.

No tax deduction applies.  Sad Face.

Option 2 (With Tax Planning):  Pay the $5,000 Life Insurance premium from your super fund.

First of all we need money into your super fund to pay the premium.

Business contributes $5,000 into Super.

This alone saves $2,350 tax, when compared to paying 47% tax in your own name.

Super fund pays 15% tax on $5,000 in super = $750 due.

Super fund pays $5,000 Life Insurance premium.

Super fund get 15% tax deduction for premium expense = $750 refund.

By paying your Life Insurance Premium from super, you’d save $2,350 in tax on the super contribution IN (when compared to paying tax in your own name) AND you’d receive a tax deduction for the $5,000 premium paid.

What do you need to implement this strategy?

• A Business.
• A Super Fund – industry fund or Self Managed Super Fund.
• A Life Insurance policy.
• A chat with an Inspire Chartered Accountant – www.calendly.com/inspireca.
• To take action prior to 30 June.

FAQ’s: Pay life insurance premiums from super.

Why are Life Insurance premiums not tax deductible outside of super?

You cannot claim life insurance as a deduction (outside of super), because you don’t pay tax on the money received when you die.

Because no tax is payable when your family receives that money, it would be unfair to be able to claim a deduction for the premiums along the way.

The ATO has special rules, and allows a deduction in superannuation.

If I paid the same $5,000 premium outside of super, how much would I have to earn pre-tax to pay that?

If you pay a rate of 47% in tax, you’d have to earn $10,638 BEFORE tax, then pay $5,638 in tax.

Leaving the $5,000 after tax to pay your life insurance policy.

Does the same strategy apply to other insurances like TPD, Travel, Home, Car, Pet and Income Protection?

• TPD – Yes, deductible through super
• Travel – not tax deductible, unless the travel itself is deductible
• Home – no, unless it includes business related assets
• Car – no, unless you use your car for business
• Pet – no
• Income Protection – Yes, fully tax deductible outside of super

NEXT STEPS:  You can book in a Quick 10 Min Chat here with an Inspire Chartered Accountant to talk about Tax Saving Strategies that will work for you.

 

Top sales advice from one of top 5 Sales Professionals worldwide (fitness industry)

Sales is such an important part of any business.

Many of us hate the word sales, but it pay the bills and keeps the lights on.

So we asked Richard Bell, the speaker at our upcoming Inspiring Business Event, “when you’re advising sales professionals, what sales advice do you give them?”

Before Rich’s career as GM of The Entourage, he was the youngest GM of Fitness First and there was listed in the top five sales professionals worldwide on several occasions.

What was his sales advice?

“I think sales has come a long way in the last 10 years.

I often joke about it with my team all the time. I think gone are the days of the 1980’s fast-talking backslapping slick sales guy who’s trying to build fake rapport and tell you that your kid’s really cute and tell you that they’re going to give you the best deal and you have to take the best deal today.

I think those days are gone!

And you know what, there was probably an element of that at the start of my career, but it’s had to evolve a lot.

My advice to any young entrepreneur when it comes to sales is, number one, be authentic.

Complete authenticity in everything that you do and allow that person to see who you truly are, not the sales guy or the mask. Drop the mask and be who you are at your heart.

The second thing is it’s got to be a win-win-win.

I deliberately say win-win-win, three wins, because it’s got to be a win for you as the sales professional, entrepreneur, it’s got to be a win for your business, and it’s got to be a win for your customer.

So there needs to be that triangulating, “Is this good for myself and am I doing well in what I’m trying to sell here? Is it good for the customer? Do they like it? Is it achieving what their needs are? And is it good for the business as well?”

Having those three things to approach it with at a higher level without getting into detailed sales groups is the way I approach sales now.

The last thing is having the ability to say no.

As an entrepreneur we can often want to sell everyone everything.

I think there’s a lot of respect and a lot of power in you as an entrepreneur to be able to say, “You know what, I don’t think this product is for you, and no, I don’t think it’s good that you actually buy it from me.”

In today’s business world I think that’s what the consumer wants.

The consumer wants more honesty, more authenticity, and to be told if the product isn’t right for them, and we can shake hands and have a coffee together whether you buy or you don’t buy.

If you loved this conversation with Rich, you’ll love his presentation “Managing high growth, 90 people & a young family, at age 27” at the next Inspiring Business Event.

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Make Additional Super Contributions to reduce your tax

How does this strategy work?

You may be aware that superannuation is the best investment vehicle for tax purposes out there.
It’s also easy to put this in the back of your mind for a number of reasons.

You might think:

1) “I can’t touch it now, so why bother…”

2) “There’s hardly anything in there, so I’m going to concentrate on making money in my business.”

3) “The laws change every five minutes, I’d rather not worry about it.”

But while those thoughts may have an element of truth, there are some very effective ways to incorporate your superannuation into a broader wealth creation and tax planning strategy.

For instance, you can:

1) Use your superannuation to purchase your business premises, even if you don’t have the full amount in super

2) Pay 15% tax on earnings on your superannuation if you’re accumulating a balance.

3) Pay 0% tax on earnings if you’re drawing a pension (with conditions, if you’re over 55).

 

So here’s how the numbers would crunch.

The example we’ll use is where your taxable income is $200,000.

 

Option 1 (Without Tax Planning):  Pay in your own name

The tax rate in your own name would be at individual rates, of up to 47%.  

So you’d be up for $67,547 Tax.

Ouch!

 

Option 2 (With Tax Planning):  Contribute $22,000 to Super prior to 30 June.

Your taxable income would reduce to $178,000.

By contributing $22,000 to super prior to 30 June you’d save $7,040 in tax, when compared to paying in your own name.

What do you need to implement this strategy to make additional super contributions?

• A Business.
• Cashflow available put into super.
• A chat with an Inspire Chartered Accountant – www.calendly.com/inspireca.
• To take action prior to 30 June.

 

FAQ’s: Super contributions to reduce tax.

Do I ever get taxed on money in Super?  If so, when?

Yes, you get taxed at 15% in super for everything you contribute and claim a tax deduction for.

This 15% is paid by your super fund when they lodged the tax return (if you own an SMSF); or the tax is taken straight from your balance when you deposit it if you are using a public super fund.

 

Is there a limit as to how much I can put into super?

Yes, there sure is.

The limit is $30,000 if you’re 48 years old or younger.

And $35,000 if you’re 49 years, plus.

The limits are a lot higher (up to $540,000) if you’re making the contributions from after tax money.

What happens if I don’t have the cashflow to put into super?

To get the tax deduction, the super needs to be paid by 30 June of the year.

Make Additional Super Contributions now before your opportunity is missed for another year.

If I have many family members, can we pool our Super limits?

A super limit is per person.

And yes, you can contribute the $30,000 or $35,000 for each person.  It will end up in their own super account, though, so for instance, you cannot ‘borrow’ a super limit from another family member and pay yourself $40,000 instead of $35,000.

 

 

NEXT STEPS:  You can book in a Quick 10 Min Chat here with an Inspire Chartered Accountant to talk about Tax Saving Strategies that will work for you.

 

 

Ben Walker of Inspire SMSFS Pty Ltd (1243433) is an authorised representative of Finance Wise Global Securities Pty Ltd ABN 60 146 708 045.  Finance Wise Global Securities Pty Ltd holds an Australian Financial Services License (No. 397877).