What I’ve Been Reading

6th July, 2018

This week I’ve started a new book “The Big Leap” by Gay Hendricks which has ben sitting on my bookshelf for some time.

It’s all about overcoming the single barrier that stands in our way and holds us back from achieving our true potential and attaining not only financial success but also success in love and life.

Is this something that you could re-read or read for the first time to help set you up for success?

13th July, 2018

Yesterday, the ATO published the income tax gap for individuals not in business which in 2014–15, is approximately 6.4 per cent, or a whopping $8.7 billion!

The gap is an estimate of the difference between the tax the ATO collects and the amount that would have been collected if every one of these taxpayers was fully compliant with the law.

The three main components driving the gap include incorrect claims for:

1. deductions for work-related expenses
2. omitted income, particularly in relation to undeclared cash wages (an element of the black economy)
3. deductions for rental property expenses.

Given the timeliness of this information in the media, it may just be the ammunition you need when you meet with clients that have been wanting to “push the envelope” a little too much in previous years!

For your information and quick reference, links to the relevant documents are included below.

• ATO media release
• Individuals not in business income tax gap (methodology and findings)
• Tax and Individuals not in business (description of the segment more broadly)

20th July, 2018

Here’s a great article from Sage on the 4 steps to finding ideal clients for your accounting practice.

Step 1 – Establishing your ideal client
Step 2 – Finding clients
Step 3 – Targeting your ideal clients
Step 4 – Screening your prospects

Read more here – www.sage.com/en-us/blog/4-steps-to-finding-ideal-clients-for-your-accounting-practice

27th July, 2018

Would you consider trialling a four day work week in your practice?

This week I read a Business Chick’s story about an innovative workplace trial by a New Zealand company. The four day working week for five days pay was declared a resounding success, with 78% of employees saying they were better able to manage their work-life balance.

Productivity was maintained, employees felt better about their job, they were more engaged and generally reported greater work-life balance and less stress!

Read more here – http://bit.ly/fourdayweekforfivedayspay

3rd August, 2018

Did you hear about the ATO exercising some rarely-invoked “formal access powers” on Wednesday to investigate a group of tax agents suspected of facilitating tax avoidance?

The ATO made the comment that “we only use these powers in the most serious of cases, when taxpayers or their representatives refuse to engage with us within a reasonable period of time and where we believe there is a risk of records being moved or destroyed,”.

Read more here – http://bit.ly/2AyDz0A

This comes on the back of the ATO dispelling some top tax time myths as part of their clampdown to close the tax gap.

For tax agents and businesses playing by the rules, I am sure both of these measures are very welcomed.