 Introduction
With the massive adoption of Bitcoin, and indeed other cryptocurrency, the crypto presents a lot of exciting opportunities to investors globally. If you are looking for the basis to start trading cryptocurrencies, then this blog post was written with you in mind. In this post, we will take a look at the process of buying and selling cryptocurrencies to make a profit. Meanwhile, the content of this post is not in any way a financial advice. It is purely for educational or entertainment purposes. So, if you are ready to learn how to trade cryptos, let's get started. How To Trade Cryptos As a First Timers There are basically five steps to trade cryptocurrencies, including the following: Register a Trading Account With an Exchange: The first step is to register a trading account with an exchange. There are so many exchanges these days, so tread carefully when choosing one Fund Your Account: The next step is to deposit funds into your trading account. You can deposit funds via bank transfer, credit/debit cards, or using PayPal. Pick a Crypto To Invest In: There are over 1,500 cryptocurrencies on the market. Choose the ones that you are promising. Choose a Trading Strategy: Decide whether you want to be a long or short-time trader or investor. Buy And Store The Cryptos: After choosing a trading strategy, the next step is to place a buy order and store the cryptos you would receive in an offline wallet/ Congratulations! You can now trade cryptocurrencies
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 If you have been involved in any crypto-related transactions in the last two years, it is likely that you would report it in your tax return. For clarity, cryptocurrency transactions include but not limited to buying, selling, staking, mining, trading, sending and receiving. It applies whether the transaction happened in Australia or not. In fact, the Australian Tax Office (ATO) wants to know about your cryptocurrency transactions.
Working out crypto tax can be a nightmare for many, plus there are so many facets to consider when preparing tax returns. Therefore, it is important to know exactly what you are doing and how to file your tax return correctly. To give you a heads-up, we have put together a guide on the rules applicable in Australia regarding cryptocurrencies and tax. The information you would find below is strictly educational and not financial or legal advice. Am I an investor or trader? The first thing you need to work out is whether or not the ATO classifies you as an investor or a crypto trader. Investor A crypto investor is someone who buys and sells cryptocurrencies to make long-term capital gains. Investors are also involved in airdrops, staking, and forks. If you are an investor, you are subjected to Capital Gains Tax (CGT). Trader A crypto trader is in the business of buying and selling cryptocurrencies for short-term profits. Traders treat their profits as business income rather than assessing each transaction as a capital gain event. Capital Gains Tax (CGT) Just like a company's share, the ATO views cryptocurrencies as assets, which means each time you trade you need to assess your capital gains. If you buy cryptos and hold, you don't need to pay tax on your holdings, even if the value increases. What’s my tax rate? If you have formally registered your business with ASIC, your tax rate is the same as other companies - 27.5% on all income after deductions. But if you are an individual investor, your tax rate sits on Australia's sliding scale of individual tax rates.  Introduction
Paying taxes is one of our primary responsibilities as citizens. Government uses revenue from taxes to build bridges, schools, hospitals, and other infrastructures. We pay taxes in the form of VAT (value added tax) for virtually everything we consume, and cryptocurrencies should not be left out. Now the big question is, does the Australian government tax cryptocurrency users? In this blog post, we will answer some pertinent questions regarding tax payment when we get involved in cryptocurrencies. Should I Declare Cryptocurrencies On My Tax Return Of course, you should declare cryptocurrencies on your tax return if you have made any profit from it. Some ways to profit from cryptocurrencies include crypto trading, purchasing goods or services via cryptos, and conversion from cryptos to Australian dollar, and vice versa. Do I Pay Taxes On Gains Made From Cryptocurrencies? Yes, you have to. If you have involved yourself into crypto trading or any of the ways of making profits from cryptocurrencies, it is duty bound on you to pay taxes. How much should you pay? This depends on some factors like your trading strategy and your investment worth. For instance, if you are a personal crypto trader, you can expect to pay anything between 0% and 47%. Crypto-related companies are expected to pay anything between 27.5% to 30%. What If I Don't Declare My Crypto Gains To The ATO? When you make any crypto investment and you make profits from such investment, you are expected to declare your position to the ATO. Failure to do that is tantamount to tax evasion, and tax laws frown against that. We encourage you to always declare your crypto gains to the ATO so that the long arm of the law would not catch up with you.  Introduction
Except you still live in the stone age, the chances are that you must have heard that cryptocurrencies have taken over the world. Cryptocurrencies, and indeed blockchain technology, is now the new way to facilitate payment for goods and services. So, in this article, we will be simplifying some terms associated with the cryptocurrency space. You may have heard of terms like blockchain, smart contracts, Bitcoin, and even cryptocurrency itself. Relax, this article will handle all the explanations so that you understand what each team means. Let's dive in! Meanings Of Terminologies In The Crypto Space What is Cryptocurrency? In simple words, cryptocurrencies are a group of virtual or digital currencies that people can use to facilitate payment in the economy where they are accepted. The first cryptocurrency to hit the scene was Bitcoin in 2009. At present, there are over 1,500 cryptocurrencies in circulation. What Is Bitcoin? Bitcoin is the largest and the most traded cryptocurrency in the world. It was invented in 2009 by a man known as Satoshi Nakamoto using the power of blockchain. The symbol of Bitcoin is BTC. Since the birth of BTC, so many cryptocurrency enthusiasts have use the same blockchain technology to create other cryptocurrencies to provide different services. What Is Ethereum? Ethereum is a blockchain-based, open-source, decentralized platform used for its own native cryptocurrency, ether. It was launched in 2015 to enable distributed applications and smart contracts to be built without any downtime, fraud, interference, and control from a third-party. What Is a Smart Contract? At its core, a smart contract is an instruction that automatically self-executes with the terms of the agreement between buyers and sellers written into lines of code. The agreements between the buyer and seller are contained in the blockchain. What Is Blockchain? A blockchain is a public ledge that records all cryptocurrency transactions. Once a transaction has been recorded on blockchain, it cannot be reversed or deleted. Blockchain makes it difficult for the government to regulate or interfere with the cryptocurrency space.  Introduction
Your business budget helps you avoid overspending and also puts you in control of your business. However, with COVID-19 still in full swing, the chances are that you may have abandoned your business budget just to stay afloat. You are not alone, so many businesses have had to throw their business out of the window just to survive the global pandemic. You need to make some adjustments if you must get your business budget back on track after COVID-19. So, how do you get back your budget back on track? In this post, we have put together top 3 tips that you should consider to get your business budget back on track after the global pandemic. #1. Pay Attention To New Numbers Coronavirus may have affected your business one way or the other. Whatever your situation may be, you need to make some sacrifices to help your business bounce back from the negative cash flow. You may consider reducing spending or cutting down on unnecessary expenses. Pay attention to your cash flow by tracking your income and expenses using accounting software. #2. Reevaluate Your Emergency Fund If your business has an emergency fund, you may need to reevaluate it. Reevaluating your business emergency fund will prepare you ahead of other emergencies. However, if you do not have any emergency fund set aside for your business, you need to establish one. The rule is to set up an emergency fund that will cover at least 6 months of your expenses. #3. Prioritize Paying Back Debts If you were forced to borrow funds to rejig your business during the crisis, you need to prioritize paying back the debts. Make room in your business budget for debt payment and extra loan. Additionally, try as much as possible to offset all your debts before applying for a new loan. If you are still in doubt on how to plan your business budget after COVID-19, feel free to reach out to us for assistance.  Introduction
Looking to start a new business despite the havoc caused by the coronavirus pandemic? Then you are in the right place. Still the start of the pandemic, many small businesses have closed their doors permanently due to the pandemic. However, the result was quick to point out that there is an increase in the request for people to start a new business during the pandemic. If you are one of those striving to start a business, this post would really be helpful. Ahead, we have shared three powerful tips that would help you start a new business NOW! Sounds good, right? Then let's started. #1. Determine Your “Why” The first step in starting a new business during a pandemic is to determine why you want to start a business. Do you want to be your own Boss? Are you passionate about a specific product or service? Do you want to make a difference in your immediate community? Once you are able to identify your why, you can then figure out your potential customer's pain points. #2. Fill a Market Need The habits of today's consumer are continually changing. Therefore, think of how your products or services will align with their lifestyle during the pandemic. Industries like cleaning, delivery services, home improvement, fitness equipment, and behavioral health are thriving during the pandemic and the reasons are not far-fetched. Most consumers now work from home! #3. Focus On Digital Marketing During the coronavirus pandemic, a robust digital marketing strategy can be the game-changer that you need to get started. With little or no chance of meeting your potential clients in person, the only surefire way to network with them is through effective digital marketing. Struggling to start a new business during the pandemic? Reach out to us for assistance!  Introduction
Starting a business during or after the coronavirus pandemic might seem impossible for many, but that shouldn't be the case. While consumers spend most time at home, there are businesses you can still do to make money during or after the pandemic. Ahead, we will highly top 3 business ideas that you can start now with little or no budget. Let's get started. #1. Online consulting business If you have knowledge to pass on to others, you can start an online consulting business. From professional skills such as finance and supply chain management to lifestyle skills like dietician or music classes, you can train people in what skill that you possess. The internet is a great tool in this regard. Online consulting is basically meant to give people useful information to improve their lives or businesses. #2. Digital Marketing Agency Another lucrative business to start during and after the pandemic is a digital marketing agency. The truth is that businesses are constantly on the lookout for agencies that will help them generate leads. Your digital marketing agency can offer businesses a wide range of services, including content marketing, SEO, social media, web design, as well as paid and targeted advertising. #3. Graphic Design Firm Graphic design is another business idea you should look into. With the right skills, you can design company logos, event graphics, and social media banners. Struggling to start a new business during or after the pandemic? Feel free to reach out to us, and our experts will help kick-start your entrepreneurial journey.  Introduction
With some parts of the world reopening after the devastating effect of the first wave of COVID-19, the chances are that you might be eager to rebuild your business. However, it is crucial to be careful when rebuilding your business as the virus is still spreading globally. The effect of COVID-19 on the global ease of doing business remains significant. The unemployment rate has never been this high since the Great Depression. Customers are now more conscious about proximity to strangers and public gatherings. We may never witness a return to "normal" in the nearest future, for businesses in restaurants, retail, hospitality, and travel. In today's blog post, we will take a look at 4 ways to rebuild your business after COVID-19. Without much ado, let's get started. #1. Assess the Financial Damage The first step to rebuilding your business is to assess the financial damage. If you've not done your financial statement recently, this is the right time to do that. Once you are done with your financial statement, compare the numbers to last year's number to determine the impact. #2. Review Your Business Plan Your business plans may have worked 100% fine during the pre-COVID era, but certainly after COVID-19, it is necessary to fine-tune your business plans to reflect today's reality. #3. Consider Whether You’ll Need Funding to Recover It is likely that you would need some forms of funding after COVID-19, unless your business generated enough money going into COVID-19. There are several options to consider when seeking for funding, including: - Business lines of credit - Accounts receivable financing - Merchant cash advances - Small business loans - Small business term loans from banks, credit unions and online lenders - Business credit cards - Vendor tradelines Are you currently facing any challenges rebuilding your business? Let us know in the comments and we would like to be of help!  From social distancing, limited capacities, mandatory use of nose masks, and staggered work schedules, the post COVID-19 era appears to be very difficult for both employees and customers. With cases of infected persons on the rise on a daily basis in different parts of the world, it is critical to communicate and follow these safety protocols.
Businesses, whether startups or giants, are faced with new customer expectations and how to push for every stakeholder to respect the rules. In this article, we will be sharing a few tips on how to manage your customer expectations during the post COVID-19 era. #1. Contactless Payments During the post COVID-19 era, customers would like to make contactless payments. Customers would not want to touch screens, keypads, not to talk of handling cash. They also want to interact less with your staff members. As such, you need to be prepared to deploy technology to receive payments from your customers. #2. Social Distancing Even after the pandemic, people would still comply with the social distancing rule. If customers must visit your office, you need to re-configure your office to respect social distancing. #3. Improved customer service In the post COVID-19 era, customers would demand for improved customer service. Therefore, it is crucial for you to deliver improved customer service. Improved customer service would not only attract them to keep coming back, they will become loyal customers. What customer expectations do you think will be at the front burner in the post COVID-19 era? Let us know in the comment box.  Introduction
No doubt the COVID-19 pandemic has taken a toll on businesses in Australia, and indeed, the rest of the world. According to a BDC survey, more than 73% of companies were already feeling the heat of the pandemic as of mid-March 2020. The truth is that in times of crisis, cash flow is usually a challenge for most businesses. Creating a cash flow forecast and a detailed continuity plan can facilitate recovery and help you sustain your business post COVID-19. In this post, we will take a look at the 5 steps necessary to sustain your business after COVID-19. #1. Start With Health And Security Coronavirus is a human problem; as such, it is essential to take steps to protect yourself and your employees first. The following are some important questions to ask:
Answers to the questions will keep your employees safe in the post COVID-19 era. #2. Prepare a communication plan The communication plan of your business should target the following:
Craft a clear message and use technology to send your messages. #3. Evaluate Capacity And Resources For the survival of your business, you need to go beyond managing your employees, suppliers, and customers. As demand dips globally, you need to align your staff to production. You also need to consider a new temporary wage for your employees to maintain your workforce. In addition, you may want to consider right-sizing recurring expenses in the short term. Final Thoughts Okay, that's it. There is light at the end of the tunnel if you follow through with these tips. Your business would definitely rebound post-COVID. Still don't know where to start from? You can shoot us a message and we would greatly be of immense assistance  Today the RBA met for the first time in 2021 and have decided to leave the cash rate unchanged at 0.10%.
Our central bank will have been encouraged by recent better than expected unemployment and CPI numbers. It will also be keeping a close eye on rising house prices, lending growth, the continued impact of COVID-19 on our major trading partners, the Australian dollar and its effect on exporters and the looming reduction to government support packages. Rates are at a record low and lenders continue to offer very competitive rates. We can answer your questions and look at your circumstances to make sure you're prepared for what could be coming next. This could mean refinancing or approaching your lender for a better rate. Because we do this type of work every day, we have a pretty good idea what lenders can do to win or keep your business. We're here to help if you have any questions. Please don't hesitate to give us a call. Kervin and Team PH : 08 9370 5515 Em: Finance@successwa.com  As the country tunes in for the 2020 Melbourne Cup, the cash rate decision for November has been announced and rates have been cut. In response to the economic impact being caused by the COVID-19 crisis, the RBA reduced the cash rate by 0.15% to a new record low of 0.1%. In making this change the RBA has confirmed the views of many analysts that further stimulus is required to aid Australia's recovery post Covid. It had previously stated that it sees a cash rate of 0.25% as a floor however it has softened its stance on a reduction more recently. In the lead up to its next meeting our central bank will continue to monitor world events such as the second round of European lockdowns and the US election, while closer to home it will be hoping the easing of restrictions in Victoria and the opening of state borders will provide a lift to the economy. Here is a table showing how Australia's average mortgage sizes may be affected:  As you're probably aware, lenders review rates independently of the RBA and some may decide to pass this rate decrease on to customers at different levels over varying time frames.
We can help review your situation to ensure you have the right loan for your circumstances, drawing on a wide panel of lenders offering loans with great features, low fees and competitive interest rates. If you'd like to chat about the best way to manage your mortgage as the COVID-19 crisis continues to unfold, please don't hesitate to give us a call. Kind Regards Kervin and Team
What has changed From 28 September 2020, the JobKeeper extension starts and the payment rates change for eligible employees and business participant. Extension 1 - from 28 September 2020 to 32 January 2021 Extension 2 - from 4 January 2021 to 28 March 2021 The payment rate applicable to an employee is determined by reference to the actual hours the employee worked. • Higher rate – If an employee’s total hours were 80 hours or more for the employer over an applicable 28-day reference period, then the employer is entitled to the higher rate in respect of that employee. • Lower rate – If the total hours of work and equivalent paid leave are less than 80 hours over the applicable 28-day reference period, the lower rate applies. It is the responsibility of the employer to determine the number of hours that count towards the threshold for an eligible employee, based on existing records that are already maintained in respect of that employee. What you need to do
Extension 1 - businesses will have to demonstrate that their actual GST turnover has declined by 30% in the September 2020 quarter, relative to its September 2019 quarter. Extension 2 - businesses will have to demonstrate that their actual GST turnover has declined by 30% in the December 2020 quarter, relative to its December 2019 quarter.
What doesn't change To claim for fortnights in the JobKeeper payment extension 1 or 2:
Source: ATO and NTAA If you need any help, contact the office on Tax@successwa.com or 08 9370 5510  As expected, the Reserve Bank of Australia kept the cash rate at 0.25% at its meeting today as the country continues to deal with the COVID-19 pandemic.
The RBA, conscious of reductions in consumer spending, further falls in house prices and the flow on economic impact of stage four restrictions in Victoria, has consistently stated that it sees a cash rate of 0.25% as the floor. With rates at a record low and lenders continuing to offer very competitive rates, why not review your situation to ensure you have the right product for you right now?  It is with a great pleasure to say that our practice has been voted in the top 10 performing Accounting practices. It is among 90+ other Australia wide within the Success Tax Professional Franchise. We were voted the best one in 2019 and ranked second in 2020. We are very pleased with the result and a very big thank you goes to all of our loyal and valued clients. It gives our team a lot of encouragement and joy to continue to thrive and help you all at our best capacity. Again thank you for your trust in us.
Have a nice day ahead Kervin and team  The RBA has announced that the cash rate will remain unchanged for July with the rate remaining at 0.25%.
The RBA is mindful of rising concerns around unemployment post-JobKeeper, falls in housing and home loan approvals, decreasing property values and decreasing credit growth. The RBA maintains the stance that negative interest rates are not the best option for the economy at this point. If the COVID-19 crisis is affecting your financial situation, please get in touch so we can formulate a plan to manage your loan repayments during these unprecedented times. With lenders continuing to offer very competitive rates, we can help review your situation to ensure you have the right loan for your circumstances. If you'd like to chat about the best way to manage your mortgage as the COVID-19 crisis continues to unfold, please don't hesitate to give us a call.  If you have been thinking about building a new home or carrying out an extension or renovation, now might be the time to meet with me and work through your options.
The Federal Government's new $680 million HomeBuilder program announced on 4 June 2020 makes available $25,000 grants to help build or substantially renovate your home. On top of this, the West Australian Government unveiled a $117 million Building Bonus scheme to provide homebuyers who build new houses with a $20,000 grant. How does the federal government's HomeBuilder scheme work?*
How does the WA government's Building Bonus scheme work?*
We are here to help. If you're a first home buyer, there are a range of first home buyer and state government grants, stamp duty concessions and rebates as well as the federal First Home Loan Deposit Scheme and First Home Super Saver Scheme that are available and work in conjunction with both the HomeBuilder and Building Bonus packages. If you would like to discuss how you could take advantage of these programs, either for an extension or renovation on your existing home or to build a new home, please feel free to get in contact.  The cash rate decision for June has been announced by the RBA with the rate unchanged at 0.25%.
The Bank withstood calls for further reductions, with some commentators suggesting negative interest rates remain a future possibility. Whilst the RBA will be mindful of concerns around the rising value of the Australian dollar and its impact on exports, reductions in property prices and uncertainty around employment post JobKeeper, it stuck by its view that a rate of .25% is an appropriate floor. If the COVID-19 crisis is affecting your financial situation, please get in touch so we can formulate a plan to manage your loan repayments during these unprecedented times. With lenders currently offering very competitive rates, we can help review your situation to ensure you have the right loan for your circumstances. If you'd like to chat about the best way to manage your mortgage as the COVID-19 crisis continues to unfold, please don't hesitate to give us a call.  If you're not sure if an ATO interaction is genuine, don’t reply to it. Instead:
Do not provide the requested information and be reminded that JobKeeper payments are only made to employers. Source : ATO Below are the links to two article publish by the www.smallbusiness.wa.gov.au/ . They are both very useful to read. If you need any help with the above. Feel freet to contact the office.   Extension of time to enrol for the JobKeeper schemeThe Australian Commissioner of Taxation has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.
If you enrol by 31 May you will still be able to claim for the fortnights in April and May, provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight. For the first two fortnights (30 March – 12 April, 13 April – 26 April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by the end of April. You can enrol and claim for JobKeeper earlier if you choose. For example, you can enrol by the end of April to claim JobKeeper payments for the two fortnights in April. Source ATO  ATO announces extension for wage payments
The ATO has just announced that it has extended the time in which employers need to pay employees for JobKeeper fortnights 1 and 2 until 8 May 2020. One of the key requirements of the JobKeeper Scheme is that employers must first pay their employees before they can apply to receive JobKeeper Payments. Originally, a concession was available that allowed employers to make the payments for JobKeeper fortnights 1 and 2 by 26 April 2020 (being the end of fortnight 2). The ATO then extended this to 30 April 2020. However, under this new announcement, a further extension has been granted until 8 May 2020 providing employers with additional time to ensure they have paid each eligible employee $3,000 for JobKeeper fortnights 1 and 2. As a warning, employers must be aware that, despite the fact they can now pay their employees as late as 8 May 2020 and still be eligible for JobKeeper Payments for fortnights 1 and 2, they are still required to pay their employees a further $1,500 by 10 May 2020 in relation JobKeeper fortnight 3 (which ends on the same date). At the current time, no extension to this date has been announced, and it would be unwise for employers to anticipate that there will be one. Reference can also be made to the following: ATO website https://www.ato.gov.au/general/JobKeeper-Payment/ Assistant Treasurer’s media release https://ministers.treasury.gov.au/ministers/michael-sukkar-2019/media-releases/jobkeeper- payment-extension-help-business-cashflow-0 Source NTAA  One of the main concerns for employers wanting to enrol for the JobKeeper Scheme is that they have to make the $1,500 payments to employees before they are eligible to receive the JobKeeper Payment. For many employers, this is simply impossible.
Yesterday, the Treasurer (Josh Frydenberg) spoke with the ‘Big 4’ banks and they have agreed to establish dedicated Hotlines for employers to call in relation to accessing bridging finance. Those Hotline numbers are: Westpac - 1300 731 073 NAB - 1800 562 533 (1800 JOBKEEPER) CBA - 13 26 07 ANZ - 1800 571 123 Source NTAA |
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