The power of a shared goal

This is something incredibly powerful about working towards a goal with other people.

It could be just one other, or a group of people.

Some kind of magic starts to happen.

A momentum starts to build.

It becomes some kind of force.

Which ends up being irresistible.

There is a joy and excitement which is generated throughout the journey.

In fact, this tingling of anticipation and excitement is almost more exhilarating than the actual achievement of the goal.

When the goal, or target is actually reached, it’s a different feeling.

It’s a sense of accomplishment.

Of achievement. Of self satisfaction.

Of pride. A reassurance in oneself.

Another brick of self-confidence.

In fact, it’s really important.

And sharing this journey with others, who are working alongside you, toward the same goal, adds an extra element of delight.

A special bond is built.

And a richness to the relationship is created which otherwise could not be there.

Jobkeeper 2.0 Eligibility - Worked Example

Jobkeeper 2.0 Eligibility - Worked Example

There are two steps involved to work out if you are eligible for Jobkeeper 2.0 (Extension). This worked example, based on a real life case, shows you the steps to follow.

Step 1.

First, check if your Turnover for Sept Qtr 2020 has fallen by 30% compared to Sept Qtr 2019.

Start with your Turnover information from your records:

(You can get this from your accounting software. Dump it into XL for ease of calculation).

• Jul-Sep 2020 $50,131**

• Apr-Jun 2020 $26,956

• Jan-Mar 2020 $52,579

• Oct-Dec 2019 $69,630

• Jul-Sep 2019 $86,436**

To compare Sept Qtr 2020 with Sept Qtr 2019, you divide the Sept 2020 figure by the Sept 2019 figure;

• $50,131/$86,436 = 58%

The threshold for JobKeeper 2.0 = 70%, which means a 30% reduction.

In this case, yes, this client business is eligible.

Step 2.

Secondly, we need to check on the eligibility of the employees, and what rate applies.

This is based on hours worked in a relevant 28 day period. For Tier 1, they need to work 80 hours.

Paycycles (get this information from your pay records)

The Last paycycle before 1 March was week ended 1 March.

So, 28 days prior is 2nd Feb, so you need to count the hours worked from 2 Feb

Employees who worked > 80 hours Eligible for Tier 1 ($1200 per fortnight)

• Brian S  88 h 30 min

• Jaysa N 104 h 45 min

Employees who worked < 80 hours - Eligible for Tier 2 ($750 per fortnight)

• Maurice W 12 h

Other employees currently on Jobkeeper but NIL hours in Feb and June 28 day cycles

• Aaron S

• Erin L

Advise the ATO

Following the above checks, the ATO needs to be advised of:

• who will no longer be eligible for any Jobkeeper payment,

• which employees will be eligible for Tier 1 payments,

• which employees will be eligible for Tier 2 payments.

You will also need to have records to prove the hours worked. The ATO has indicated this will be a key area for “compliance checks” (audits).

If your records are in good order, this should be a straightforward process to check for eligibility.

If your records are a bit of a mess, it will be harder. (Not impossible, but not fun).

Let me know if you need a hand

Peter

Claiming Jobkeeper for September wages - Must enrol your employees today.

30 September 2020 – enrolments close for September fortnights.

To claim payments for the September JobKeeper fortnights, you must enrol by close of business today.

Did you want to start claiming Jobkeeper for wages paid in September?  If so, you must ‘enrol’ your eligible employees in the system.

Today is the last day to enrol your eligible employees.

Wages paid in September will be reimbursed at the old rate, $1,500 per fortnight.

This is a hard date, if you miss it, you won’t be able to claim for wages paid in September.

Enrolling after September

You can enrol for JobKeeper until the program closes, provided you meet the eligibility requirements.

You will need to enrol your eligible employees by the end of each month to claim reimbursements for JobKeeper fortnights in that month.

Let me know if you need a hand

Peter

Is now a good time to buy a Pack and Send franchise?

Demand for freight and package services had already increased due to online sales and the corresponding delivery of the items purchased.

But the COVID restrictions have seen another big push. 

With many employees and business owners now getting used to Working From Home, this increased level looks set to continue as the online world is now well entrenched.

A Pack and Send franchises offer a broader range of services than simply postage, which can be done at a Post Office. It typically involves liaison with freight forwarders as well as some brands offering specialised packing services for customers.

As one client said to me, “It’s not hospitality, there’s nothing perishable, it’s normal trading hours, it’s business to business and I get my weekends back!”

However, this business it still needs someone to drive it. Someone who is prepared to get out there, meet people, promote their business, network, sponsor and build their local community presence.

From a financial perspective, the costs can be fairly well contained. The two biggest costs are wages and rent. Location and positioning are important considerations, so this may impact rental costs, but there are some good deals on offer, with more likely to appear.

Remember to get a Pre-purchase Review done before you commit, to review the numbers and make sure it is a viable option for you to consider.

Let me know if you need a hand.

Peter

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Brands we’ve worked with include Pack & Send and InXpress Freight Forwarders

Is this a good time to buy a home care franchise?

Is this a good time to buy a home care franchise?

There’s been an increase in the number of ‘in-home care’ franchises over the last few years. These provide care for the sick, elderly or disabled, with the carer going to the client and providing care in their home.

The business model is essentially a matching service. To match those who require care with those who can provide the care. Profit is made by charging fees greater than the cost of providing the service. In many cases, government funding is available to contribute toward some, or all, of the fees, including NDIS.

There are a number of factors to consider:

1. Recruitment. Finding the right carers. This is important as they will represent your business and carry your name to the marketplace. They will have a very close relationship with your clients so you must be able to trust them.

2. Training. To your standards of care, empathy and compassion. The training you give them will stand you in good stead. Check this with the franchisor as to the level of training they provide.

3. Roster Management. Flexible enough to fit around needs of clients. While there will be many shifts that are fixed, there are many appointments which move around and require you to be flexible. There can be challenges here having staff on hand who can work with this ad hoc approach.

4. Prospecting and Networking. Finding those who need the service, gaining leads and referrals. This is one of the biggest challenges for many new business owners, particularly those who have no sales or business development experience. Your referral network will be one of the main sources of leads, so be sure to learn the skills to build this.

5. Wages. Wages is the biggest cost in this business. You will need to carefully manage PAYG, Super, Workers Comp, Payroll Tax, leave and employee provisions. This is one cost which can quickly get away from you, so tight controls need to be established so you know what your upcoming wages liability and exposure is.

6. Franchise fees and costs. Set up and ongoing fees. These will be clearly set out in the Franchise Agreement and Disclosure Document. We recommend you have a Franchise Accountant review the financial side of the business to be sure it stacks up for you.

7. Your ability to manage people and multiple issues at the same time. People are at the heart of this business format. While technology can assist behind the scenes, this business model is all about having someone present with the client. On top of this, there will be issues which arise that you need to manage. Your ability to do so will be critical to your suceess.

In my opinion, one of the key benefits of this business format is the low overheads. Many new business owners work from home while they build the business and use casual staff. This keeps overheads down yet provides the flex you need to grow and respond to demand as it grows.

As you can see, there are quite a few elements to consider with a home care franchise. We look after some home care franchises and are familiar with how the model works, so feel free to get in contact if you would like to discuss further.

Peter

Is this a good franchise for me?

It’s more than just finding a ‘good’ franchise, you need to find one that’s a good fit for you.

Here’s a list of 7 Criteria we like to discuss with clients when they are thinking of buying a franchise.

1. Financial. Will this franchise give you the financial return you need? Is the payback within 4 years? What will your financial commitments be?

2. Lifestyle. Hours of work, weekends, early starts, late finishes? How will work commitments fit in with your life?

3. Interest. Are you even interested in what this franchise does?

4. Compatibility. Does it suit your natural style and skill set?

5. Competency. Can you actually do the tasks required?

6. Potential. What is the future potential for the business? What’s the upside?

7. Excitement. Does this business get you excited? Do you get a buzz just thinking about it?

Then there are some other criteria to be considered once these initial points are considered, but this usually provides a good start.

There are many factors at play that need to be considered. And we often find there is a strong emotional attachment to the particular franchise many prospects go for. That’s fine, but it’s important there is some logic behind the decision.

Let me know if you need a hand

Peter

Reminder - Jobkeeper for August.

Jobkeeper - August 2020 information

As there were 3 Jobkeeper fortnights in August, you will receive $4,500 per eligible employee, this is a 50% increase on July!

So, get your information ready for your August Jobkeeper declaration ASAP.

This covers the 3 Jobkeeper fortnights which ended during the month August.

The Jobkeeper Fortnights are:

• Fortnight 9 (20 July – 2 Aug),

• Fortnight 10 (3 Aug – 16 Aug), and

• Fortnight 11 (17 Aug – 30 Aug).

Be sure to nominate the number of eligible employees you are claiming for in each Fortnight. Also advise if any employees have come or gone during the month, or are no longer eligible.

Please note - you must have actually paid them $1,500 per fortnight to be eligible.

You also need to declare the GST turnover for your business for August, 2020 and your projected GST turnover for September 2020.

Let me know if you need a hand.
Peter

How the JobKeeper changes affect franchises

In August 2020, the government introduced changes to JobKeeper payments.

These changes mean that some employees who weren't previously eligible may now qualify. In addition, changes have been made to the eligibility criteria and JobKeeper payment amounts with effect from 28th September 2020.

Let’s take a look.

Changes to employee eligibility 

If you have staff who missed out on being included in JobKeeper due to their start date being after 1st March 2020 they may now be eligible.

In addition to employees you've already got on JobKeeper, the following employees are now eligible for nomination:

• Full-time and part time employees hired between 1st March and 1st July 2020 

• Long-term casuals employed from 1st March to 1st July 2019 

Employers have until 31st August (that's Monday) to enrol employees who meet the new conditions for:      

• Fortnight 10 – commencing 3rd August 

• Fortnight 11 – commencing 17th August

• Fortnight 12 – commencing 31st August

Newly eligible staff MUST complete an authority declaration and return it to you. You also need to update your payroll software to identify the new employees.

If you are in doubt please give us a call.
 

Extension to JobKeeper

You may have heard that JobKeeper has been extended. However, your business won't be automatically eligible. There is a new eligibility test that must be met.

Eligibility from 28 September onwards is dependent on a 30% decline in turnover compared to the same quarter last year. It will be based on ACTUAL figures. If you want the JobKeeper extension you must be able to prove this.

JobKeeper - new rates

From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be: 

• $1,200 per fortnight for staff who worked 20+hrs per week in February 2020 

• $750 per fortnight for staff who work less than 20 hrs per week in February 2020

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be: 

• $1,000 per fortnight for staff who worked 20+hrs per week in February 2020 

• $650 per fortnight for staff who worked less than 20 hrs per week in February 2020

If you need help, or further information about how the changes to JobKeeper affect your business, please contact Kate on 0466 376 386 or email our Tax Manager, Holly
 

Help with JobKeeper submisions from 28 September 

We can continue to support you with JobKeeper documentation and submission to the ATO. 

Please be aware that the ATO is closely monitoring JobKeeper claims. They have already commenced reviews of businesses.
This means it's vitally important to have verifiable documentation to support your claims. 

Where you can, sell the one with the higher margin

If you can, sell the one with the higher margin.

As a general rule, if you have the choice, chase margin not volume.

Yes, this means you and your team need to know the margin on the items you sell.

And yes, there will always be some exceptions. Client or customer preferences, competitive pressures, existing relationships, market forces.

But the overriding point is this. Where you can, sell the one with the higher margin.

Margin is the term used for the profit on the sale of the item     .

If Item A cost you $70 and you sell it for $100, your margin is $30.

Or 30% (30/100 x 100)

But if Item B cost you $60, and you still sell it for $100, your margin is $40.

Or 40% (40/100 x 100)

Same selling price.

Heaps more margin.

Better.

In fact, you could even sell Item B at a ‘discount’ of $95 and still be in front.

Lots of options to play with.

And actually, that is the point.

By knowing the margin on each item you sell, you can set your prices accordingly.

You can then make special offers that hit the mark but don’t destroy your margin.

Understand the key numbers.

Explain them to your team.

Show them how to calculate them.

Don’t leave it to chance.

This is too important.

Particularly now.

Let me know if you need a hand.

Peter

The Super Amnesty ends in 2 weeks from today!

As an employer, are you sure you paid all of your super contributions by the due date?

It’s important that you check on this. And not just that they have been paid, but were they paid late?

If they were paid late you are liable for what is called the Super Guarantee Charge. This is an extra charge on top of your super.

You are required to lodge an SGC Statement for each time your super contributions were paid late. These are the steps to follow:

• Check if your super payments were made by the due dates,

• It’s not enough to have simply paid the super for each employee…

• It must have been paid by the due date, 28 days after the end of each quarter.

• For every quarter where it was paid late, this triggers a SG Charge (SGC)

• You are required to complete a SGC Statement and lodge it with the ATO

• For each and every quarter it was paid late.

Under the Super Amnesty, you will not be charged penalties, or the standard Administration Charge of $20 per employee per quarter.

- You will also be able to claim a tax deduction for the payment

- These are not normally deductible.

Once the Super Amnesty is over, if employers are caught by the ATO, the benefits of the Amnesty no longer apply. That means:

- You will be hit with penalties of 200%, plus the admin fees, of $20 per employee, per quarter,

- You will not be allowed to claim a tax deduction.

The Super Amnesty Pack from latesuper.com.au has all the information you need to help you get through this task.

- It includes checklists, workpapers and templates. It also contains comprehensive worked examples. Together with a Board Presentation paper, to give to your fellow directors.

Let me know if you need a hand, this is an area we can assist with.

Peter