All posts by Jane Grant

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The Federal budget unveiled instant asset write offs that will benefit 99% of businesses

Some great news for Australian Businesses

The 2020 Federal Budget unveiled instant asset write-offs with full deductions, providing positive news and much-needed tax breaks for businesses across the board. Effectively, businesses that make new investments will be able to write off the entire cost in one year, rather than having the asset depreciate over several years.

Who can benefit?

Short answer: 99% of Australian businesses!

Businesses with up to an annual turnover of up to $5 billion can claim immediate tax deductions on the full value of all new, eligible, depreciable assets, according to Tuesday night’s Federal Budget 2020 announcements. These include assets of any value that are first used or installed by 30 June, 2022.

The “immediate expensing” or “loss carry-back” business measures will benefit up to 99%, or 3.5 million businesses, allowing them to claim full deductions for the cost of improvements made to existing depreciable assets.

In releasing the 2020 Federal Budget  details, Federal Treasurer, Josh Frydenberg stated that the new investment incentives will allow businesses to expand, upgrade and improve their service and products.

“A trucking company will be able to upgrade its fleet, a farmer will be able to purchase a new harvester and a food manufacturing business will be able to expand its production line,” said Treasurer Frydenberg.

 

What assets can you claim under the scheme?

All new assets are eligible under the scheme, provided they meet existing criteria for depreciable assets.

Examples put forward by the government include coffee machines, forklifts, tractors, freezers and labellers.

Other examples of depreciable business assets are listed below:

  • Computers and software
  • Furniture and fixtures
  • Machinery
  • Tools
  • Equipment
  • Vehicles

There is also no cap on the value of the new assets that can be claimed. This differs from the existing instant asset write-off scheme, which has a cap of $150,000 for purchases.

The new business measures allow businesses to deduct the full value of their investments upfront, reducing the amount of tax a business will pay. Also businesses are given an extra 6 months to install or first use those assets.

What about second hand assets?

To further encourage businesses to make investments sooner, helping stimulate the economy and create jobs, small-medium enterprises (SME’s) with revenue of up to $50 million will be able to expense all second-hand assets, regardless of value.

Businesses with annual revenue between $50 million and $500 million will still be able to claim a full deduction for second-hand assets of up to $150,000 under the existing instant asset write-off scheme if they are purchased by 31 December 2020.

The instant asset write-off scheme allows businesses who already hold eligible assets to install those assets or bring them to first use has been extended to 30 June 2021.

 

How to use B2Bpay to gain even more benefits 

Taking advantage of the new instant write-off scheme, businesses can commit to investments and purchase assets through the ease and simplicity of B2Bpay. 

Your business can buy assets and pay for them by credit card using B2Bpay to: 

    • Get the tax benefits of being able to write off the cost instantly against your tax 
    • Improve  cash flow by making use of the <55 days interest free by using card 
    • Ensure your business makes timely and precise payments, well within the extended time frame.
    • Earn full credit card reward points on the cost of the purchase (which no longer has a cap!) and Qantas Points on top 

B2Bpay allows businesses to:

  • Make payments to a supplier regardless of whether they accept credit card or not.
  • Make seamless, hassle-free payments, freeing up admin time.
  • Set payments as one-off, automatic or future dated.
  • Keep accurate records of all purchases and payments, making tax time easier.
  • Earn credit card reward points and bonus Qantas Points with every payment, even utility bills and ATO payments.

To sum up

This week’s budget announcing  full tax deductions for business investments and eligible assets is optimistic and positive news for majority of businesses, allowing them to expand and thrive even during a difficult economic climate.

Take your business to the next level! Use B2Bpay to make the most of what the 2020 Federal Budget has to offer.

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This content above was put together for information purposes only. The Content does not constitute tax and/or legal advice and should not be relied upon as such. You should seek tax, legal or other professional advice before acting or relying on any content.

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How Honeycomb Agency has quickly and creatively navigated the COVID business slump

About Honeycomb Agency

 

Honeycomb Agency is a creative and innovative promotional marketing agency, combining a wealth of experience in events and branded merchandise with tailored services to further alleviate the challenges and pain points of their busy clients. As a promotional marketing agency, Honeycomb specialises in creative merchandise programs and lead generating event experiences. They are a small business, but their outstanding customer service and retention has earned them outstanding reviews and referrals. This has seen them working with clients ranging from SMEs to big banks and ASX listed companies.

The significant impact of COVID on the events & promotional product industries

 

Honeycomb was on site at a national roadshow delivering activation’s for clients when concerns for public gatherings grew. Quickly thereafter, event exhibitors began to pull out. Despite being prior to any government-enforced restrictions, the next 24 hours saw Honeycomb lose a huge number of event merchandise orders, event activation experiences and management jobs. According to the Business Events Council of Australia (BECA) the Australian economy will lose $35.7 billion in the first 12 months of COVID-19 due to the significant impact on the business events sector.

The promotional merchandise arm of the business was also greatly impacted. This is because the primary reason for clients ordering promotional items is to distribute these from exhibition stands or in event settings. There was a sense of urgency for Honeycomb to find new ways to make merchandise work for clients. And to support them in finding ways to keep connections strong with both their remote workers and their customers.

 

Honeycomb’s pivots and continued commitment to clients

 

As a small and nimble business, Honeycomb was able to quickly change direction and began tailoring care packs for clients. Each pack has followed a theme or message to their staff, adding in fun and personalised products where possible. The response to the personalised items (i.e. journals, coasters, drinkware, etc) was particularly positive. This has demonstrated the importance of making individuals feel valued during this challenging time. They then expanded on this service by offering webinar packs.  This was a new take on delegate bags at events, and these packs are sent to residential addresses.  Registered online attendees receive the packs ahead of the virtual event, and enjoy at home to enrich the overall experience.

Their newest venture has been to stock and sell face masks, in response to the growing demand from  individuals and businesses. They have created an online store for their plain black masks and another custom branded masks. Currently, they are turning around branded masks in one week from artwork approval (for businesses wanting branded masks or vibrant, creative promotional designs). Thanks to Honeycombs’s knowledge and expertise with promotional merchandise, they are able to source very high quality masks.

 

Benefits of technology for business changes

 

Honeycomb have adapted in recent months to make new products and services that fit with their clients’ needs. This has meant they are more reliant than ever on software to alleviate further stress. Thanks to B2Bpay, selling directly to end users has been a breeze, with payments secure, straight forward and user friendly. In July, Honeycomb integrated B2Bpay with Quickbooks, so they can now also benefit from a ‘Pay Now’ link on their invoices. Honeycomb also earns Qantas Points on every eligible payment received via B2Bpay. They are working hard to keep their business going, so it’s a great bonus to know that using this time and admin-saving software is earning Qantas Points to enjoy down the track.

The next challenge for Honeycomb’s clients is how to reinvent their Christmas/end of year celebrations in this very different social environment. Fortunately, Honeycomb is already ahead of the game, with more personalised gift options, pop-up party packs and more available. (For details, click here).

To talk about other packs, products or services, be sure to get in touch with Honeycomb on [email protected]!

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New Direct Debit Function launched for B2Bpay Billers

Did you know that you can set up direct debit payments for your business customers?

We have recently added a really handy function for B2Bpay Billers (to get set up as a B2Bpay Biller click here).  B2Bpay Billers can request that their customers or clients fill out an online form to authorise  them to  direct debit their Credit Card or bank account. Once a business has authorised this,  B2Bpay Billers can log in to their B2Bpay Merchant Portal  and set up regular automatic payments, and take one-off payments too.

Remove payment pains with Direct Debit

  • No more late payments. Never chase a payment again. Direct Debit allows you to collect funds automatically on payment dates.
  • Not just for fixed amounts. Once a Direct Debit is in place, you can use it to collect one-off or recurring payments of any amount.
  • Control your cash flow. You choose the dates you collect funds, meaning you’ll be able to predict future revenue for your business.

Benefits of Direct Debit for your customers

  • Quick, one-time set up. Customers complete a simple online Direct Debit form, giving you authorisation to collect payments from them.
  • Flexible payments. Choose payment schedules that work for each of your customers or clients.
  • Safety and security guaranteed. Your customer’s bank details are never stored by you and are completely secure.

Here’s how to get started:

  • Sign up to become a B2Bpay Biller. You can do that by clicking here and clicking the “Get Started Button”
  • Once you have been set up as a B2Bpay Biller, send your customers your online Payment Set Up Form, which looks like this.
  • Once a customer has filled in the online form, you will get an email notification saying they have authorised you to collect funds.
  • Log in to B2Bpay and process or schedule payments. We’ve put together some handy videos on how to do that below.

How to Direct Debit a one-off payment from your customers bank account or credit card


How to set up a regular ongoing payment schedule

Need Help?

Our Sydney based team are here to help. Give us a call on 1300 205 575 or email us [email protected]

 

 

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Earn Double Points with American Express

If you have an  eligible American Express Platinum or Centurion Card, using B2Bpay has never been more rewarding with DOUBLE the POINTS!*

For the next three months (until the 20th of July) use your American Express card with B2Bpay to:
• Earn double Membership Reward points when you pay ANY Biller (including the ATO);
• Get double the value when you ‘Pay with Points’

With 4.5 or 5 points for every dollar you pay and no reduced points when paying government bills with B2Bpay, there has never been a better time to use your American Express Platinum or Centurion Card to pay all of your business expenses.

Why is it better to pay via B2Bpay than direct to Billers?

  1. B2Bpay allows you to pay ALL Business expenses, regardless of whether they accept Amex or not. This is because we pay the Biller via EFT or BPAY.
  2. When you pay the ATO and other Government bills via B2Bpay you will earn 4.5 or 5 points per dollar. If you paid these directly you would only earn 2.25 or 2.5 points per dollar.

Save up and fly later

With no expiry and no cap on Membership Rewards Points, use this amazing offer to turbo boost your points balance. Your points will be waiting and ready for you to turn into business or first-class travel in the future.

Or use points to pay

If your cash flow needs a boost, you can earn double the points AND double the value by using Select + Pay to pay or part-pay transactions on your card statement, You will receive an amazing 4.5% ‘cash-back’ value until July 20th 2020! At a cost of 2.2% (1.54% after tax deduction) to pay with B2Bpay, this is unbelievable value!

“Using Amex is CHEAPER than using cash”
Steve Hui ‘The Points Whisperer’, CEO iFLYflat

Join B2Bpay today

Click on the button below to sign up to B2Bpay to receive all the benefits of paying business expenses by card using B2Bpay – including improved cash flow, bonus Qantas Points,  ease of use and saving time by paying all your bills in the one place.

* American Express Terms:

Eligible purchases can be made by the Primary Card Member and any Additional Card Members on a single Card Account. Eligible purchases are purchases for goods and services minus returns and other credits. Eligible purchases do not include fees or interest charges, purchases or reloading of prepaid cards, purchases of gift cards, person-to-person payments, or purchases of other cash equivalents. Merchants classified as “government”, include the Australian Taxation Office, the Australian Postal Corporation (Australia Post), Federal/State and Local Government bodies. Points will typically be credited to your Membership Rewards Account within 5 days after an eligible purchase you made is posted to your Account. Additional Terms and Conditions apply, please see membershiprewards.com.au/termsandconditions.

The value of your Membership Rewards points when redeemed for the Select + Pay option will automatically double per point for the period of the offer. For full Select + Pay Terms and Conditions, please see membershiprewards.com.au/termsandconditions.

The promotions begin on 21 April 2020 and end on 20 July 2020, inclusive. Your Card Account must not be cancelled or past due at the time of fulfilment of any offers. Terms and Conditions for the Membership Rewards program apply. Visit membershiprewards.com.au/termsandconditions for more information.

 

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Top tips for Australian businesses this EOFY

On 22 March 2020, the government announced a second wave of Stimulus Package incentives.

Forming a range of stimulus packages specific to each tax jurisdiction, these measures are designed to help bridge the economic gap the novel coronavirus, COVID-19, is creating. The various packages, when applied correctly and in combination with sound business management, will hopefully sustain businesses for the duration, keeping workers employed and our economy afloat.

Kevin Butler, General Manager of Australia’s leading payment solution provider Zenith Payments, has shared his top tips for Australian Businesses this End of this Financial Year.

Kevin Butler’s top five tips for Australian businesses this EOFY

 

1. Think about what purchases you could make before 30 June this year – and use B2Bpay to pay by card so you can ‘buy now, pay later’ as your card statement won’t be due until next financial year.

2. Read up on the now $150,000 instant asset write off scheme. One of the best tax breaks for small to medium sized business is the instant asset write-off, which is a great way for businesses to acquire capital assets and obtain an immediate tax deduction. As part of the Federal Government’s recent Coronavirus Stimulus Package, the Instant Asset Write-Off threshold has increased from $30,000 to $150,000 (net of GST) per asset acquired and now applies to businesses with an aggregated annual turnover of less than $500 million.

Some of the items that you could look at purchasing before 30 June 2020 include:

  • Cars, vans and utes
  • Fittings and fixtures
  • Plant and machinery
  • Computers and laptops
  • Security systems

The asset must be used, or installed ready for use by 30 June 2020. This is particularly important you purchase the asset just before the end of the financial year. For example, if the asset is purchased say on 29 June 2020, but not available for use in the business until 7 July 2020, then the business loses the entitlement to claim an immediate tax deduction for the asset in the 2019/20 year.

3. Check out Corporate Prepaid Gift Cards,  which is a great way to use up marketing budgets with branded pre-paid credit cards you can use to reward staff or customers in the next financial year.

4. Use B2Bpay to pay for all business purchases and:

  • Reduce cash flow concerns by using your credit card’s up to 55 days interest free period;
  • Earn credit card reward points;
  • Pay ATO bills and earn full credit card points;
  • Receive Qantas Points on EOFY purchases and all other expenses

5. Get some advice from your accountant and check out how your business can benefit. You can even earn credit card and Qantas Points when you pay your accountant using B2Bpay!

“The end of financial year is a great time to do some shopping for your business. Businesses can take advantage by maximising tax deductions before the end of year. What’s more, the government’s $150,000 instant tax deduction initiative is a great tax break for small businesses.”

“Cash flow can often limit the ability of businesses to take advantage of these tax breaks. That’s where B2Bpay comes in by allowing you to use your credit card’s interest free days to hold your cash longer” says Kevin Butler, Zenith Payments General Manager.

“Powered by Zenith Payments B2Bpay is an innovative solution that allows small businesses to pay all business expenses via a single, secure online portal.”

“Using B2Bpay will negate the usual loss of points that occurs when paying the ATO directly by credit card. Instead our customers are rewarded with a much-needed silver lining at tax time with full credit card points and additional Qantas Points too.” adds Kevin Butler.

With B2Bpay, business owners can maximise credit card rewards on all payments in addition to boosting cash flow, productivity and tracking of business expenses.

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