The ATO has set up a website to help small business owners learn about running their businesses. It’s called Essentials to Strengthen your Small Business. The site covers the 5 stages of business life (from idea to exit) and offers 21 short courses across each stage. In this blog, I’ll walk you through this website so you can see if it’s right for you!
On the website, you’ll find courses linked to one of the 5 stages of your business: Idea, Start-up, Day to Day, Change, and Exit.
Idea: when you’re thinking about starting a business.
Start-up: when you’ve just begun and need guidance on what to do next.
Day to Day: when your business is running, and you want help with everyday management.
Change: when you plan to reshape or update your business.
Exit: when you’re retiring, selling, or closing down your business.
21 Courses
The 21 courses match the stage your business is in. They cover topics from starting a business to keeping records, closing down—and everything in between. For instance, clicking “Start-up” shows you 11 courses on GST, cash flow, record keeping, home-based business deductions, and more. You can filter by business structure and industry to find the most relevant courses.
Course Breakdown
Each course has an overview, a video, and modules you can do in any order. If some modules don’t apply to you, skip them. Every course has “fast facts” – key points from the lessons. There are also “quick links” for more info. After each course, take a knowledge check to see what you need to review. Plus, there’s an “action plan” – a checklist to guide your next steps based on your learning. You can download the fast facts and action plan as PDFs or Word Docs to share or keep.
Course Account
Create an account on the website to track your courses. With an account, you can create a learning path that fits you and your business. Add or remove courses anytime from the course list. You can also save notes and favourite pages to visit later from your dashboard.
Here’s the video from the website that shows you how everything works, for those who like watching instead of reading!
This learning hub is perfect for small business owners looking for guidance without spending much time or money. It’s one of the best ATO initiatives I’ve seen recently.
For those who use the Cash Flow Coaching Kit, please note that it will be moved to this new Essentials website on June 30 2024.
Over the last couple of years, I’ve moved away from written content to podcasts as my preferred choice of learning and research. Podcasts are great because you can listen to them at any time, doing anything, and privately, too, if you use earphones or earbuds. I usually walk daily and listen to a podcast at the same time – getting my exercise and racking up CPE points simultaneously – win-win!
I have many interests and there are podcasts for just about any topic you can imagine. Being a bookkeeper, I have found several podcasts about tax and bookkeeping, and over the years, have narrowed the list down to three podcasts that resonate with me the most. Here is my list:
Two Drunk Accountants: This podcast is hilarious! If you thought that accounting and tax topics could never be interesting or even funny, you are in for a big surprise! Tim Garth and Dan Osborne of CATS Accountants are the voices behind this thoroughly entertaining podcast. I find that I am laughing from beginning to end but am being educated at the same time. I enjoy this podcast and you will too! Here is the link to hear the boys bang on about their industry and their lives in general.
ICB News Channel: The Institute of Certified Bookkeepers has a podcast that is published monthly, based on topics from their newsletter. Rob Marshall, the Support and Resource Manager at ICB, runs the podcast which often includes interviews with current stakeholders involved in the bookkeeping industry. If you want to keep up with the changing face of bookkeeping and also top up your CPE points, this podcast is the one to choose. Find this podcast here.
Tax InVoice: This podcast is delivered by the ATO. Certainly not as entertaining as the Two Drunk Accountants (because let’s face it, “Two Drunk ATO Tax Specialists” doesn’t have the same ring!), the podcast will dot the i’s and cross the t’s so far as covering many tax issues and topics. Covering everything from working from home to crypto assets, Tax InVoice is a purely tax-based podcast but I find it is an easier platform to use to try and understand tax topics which can be difficult to do via written text only. You can find the 50-plus episodes of Tax InVoice here.
I’m sure if you search, you’ll find many other bookkeeping/tax podcasts. As I said earlier, I did follow about 6 or 7 back in the day but have slowly removed the ones that I didn’t find useful or enjoy. There aren’t too many Australian tax podcasts really, so if you do a search, you’ll probably find several American-based ones. These ones have their place, but if you’re after Australian tax information, you need to ensure you choose Australian podcasts. I hope you find this information useful and if you haven’t delved into the world of podcasts yet, perhaps you can start with one or two from my list.
Do you listen to a bookkeeping podcast that you think is great? Why not share it with other readers in the comments section below?
myGovID is an app that allows you to securely access ATO online services. It proves to the ATO that the person attempting to access a service/info is who they say they are – super important in this day and age of constant cyber attacks etc.
Setting up the app for the first time requires quite a few steps and can be slightly complicated. Sadly, if you buy a new mobile or tablet, or wish to use your myGovID on multiple devices, you will need to set up your myGovID again and re-verify your identity. You cannot just install the app on your new device and expect it to work. Below are the steps you need to follow to solve this issue.
How to set up myGovID on a new device
Firstly, you need to select “reset the app” within your myGovID app’s settings. Then, select “I am an existing user”. Then, follow the prompts to:
enter your latest myGovID email address – this is linked to the identity documents you previously verified. Setting up with a different email address will lock your myGovID on all devices and you’ll be unable to use it.
re-verify your identity – ATO recommends using the identity documents you previously used.
For security purposes, you’ll receive an email letting you know your myGovID is active on another device. You can view your myGovID setup history in your app.
Each time you set up your myGovID, its identity strength is unique to that device. This means if you set up your myGovID on multiple devices, the identity strength will only reflect what identity documents you’ve verified on that device. For example, you could have one device with a Strong identity strength and another device with a Standard identity strength. To access a service with your myGovID, that device needs to meet the minimum identity strength required of that service. Where you’re setting up on a new device, you need to take additional steps if you transferred your app.
eInvoicing is a new way to securely send and receive invoices between businesses via a secure global public network known as Peppol. The Australian Peppol Authority is the ATO. eInvoicing, despite being a popular and efficient method of transacting, is not mandatory.
A buyer and a supplier must both be registered with Peppol in order to use eInvoicing. This is done via your accounting software (if it offers eInvoicing functionality). Larger businesses may need to use alternative options in order to connect to the network.
Why eInvoicing?
eInvoicing is secure and time-efficient. It removes the need for using email or snail mail as methods of sending invoices and therefore, is more secure. It also removes the need to key in invoice data when an invoice is received and/or scan and attach PDF copies of the invoice. Data entry error is also heavily reduced when using eInvoicing due to little or no keying in of details required. When an invoice is received via eInvoicing, you would simply go through your normal approval process and then prepare to pay the invoice when ready. The below image is from the Institute of Certified Bookkeepers and explains the difference between the current invoicing process you probably use now, and the eInvoicing process which is much simpler.
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How do I know if my supplier or customer is eInvoicing-enabled?
When you or your supplier becomes eInvoice-enabled, you will be listed in the Peppol Directory. You can search the directory to see if your contact can receive or send eInvoices.
How do I know if my software product is eInvoicing-ready?
All software products that offer eInvoicing functionality are listed in this register on the ATO website. Some products are accounting packages and some offer online web portals for eInvoicing.
Below are 3 of the most popular online accounting packages which are eInvoicing-ready now. Each software link below will assist you to get started using eInvoicing and explain the process specific to that software. It’s important to note that MYOB and Xero do not charge anything extra to use eInvoicing which is excellent! Reckon has monthly packages including eInvoicing.
Not ready to commit to eInvoicing? Need more information?
eInvoicing is relatively new, although large companies and government departments have been using it for quite some time now. Small businesses are slowly engaging in this new method, with the uptake increasing continually. It is understandable that you may not be ready to make the jump to eInvoicing or even require it at this stage in your business development. If you would like to do some further research before moving forward, here are some useful links:
What you can do to help yourself and/or your business
During the past 2 years of the COVID-19 pandemic, the ATO deliberately halted tax and super debt collection in order to assist businesses and taxpayers affected by the pandemic’s consequences.
But now they are back on the bandwagon. Debt collection has recommenced!
The ATO is clear that if you engage with them as soon as possible, they will try to work with you to help you manage your debts. However, and I quote:
So the message is don’t hide under a rock. The debt won’t disappear and the ATO will chase you to recover it. Instead, contact the ATO immediately and work with them to resolve the issues. They can’t help you if you don’t communicate with them. Your tax or BAS agent can do this on your behalf if you would prefer not to call the ATO yourself.
It is important to note that from July 2022, any tax refunds or credits will be automatically applied to any tax/super debt you may have, meaning that you may not receive any refund or a smaller refund than expected.
The ATO has various avenues of help for businesses or taxpayers experiencing tax/super debt stress. Some of these are listed below:
Applications for a Director ID will close on 30th November 2022. Have you got yours yet? If not, why not? Is it because you lack the confidence to use a computer or smartphone or the technology required? Have you been told that you need to have a myGovID to apply for a Director ID and don’t know how to get one or even what it is? Never fear, there are other ways to apply for a Director ID and these are explained below.
What is a Director ID? Just quickly, before we go on, for those not in the know, a Director ID is a unique number identifier that identifies you as being a company director to government authorities, shareholders, employees, consumers, creditors, external administrators, and regulators. The reason behind obtaining a Director ID is to prevent the use of false or fraudulent director identities i.e. director identity fraud. Read more information about the Director ID here.
So, when you visit the Director ID information page via the Australian Business Registry Services (ABRS) to learn about how to apply for the ID number, it will immediately begin by explaining that you need to have a myGovID account. A myGovID account is a digital identity that helps you prove who you are online by participating government online services. This is a good thing to have but if you aren’t ready to go down that road or can’t for some reason, you can actually apply for a Director ID by phone or by sending in a paper application – yep, that’s right, you can do it old school style! Read on to find out how!
Apply by Phone
To apply by phone, have the below data at hand, then call 13 62 50. Wait for the automated system to ask you to make a selection from the following and select option 1. Tell the operator that you wish to apply for a Director ID number. Supply the operator with the below data and when he gives you the ID number, record it. A copy will also be sent to you by mail or email – your choice.
Documents Required:
your tax file number (TFN)
your full name
your date of birth
your residential address as held by the ATO
two Australian identity documents – one primary and one secondary
Primary documents
Australian full birth certificate
Australian passport
Australian citizenship certificate or extract from a Register of Citizenship by Descent
ImmiCard
Visa (if you are using a foreign passport but are still in Australia)
Secondary documents
Medicare card
Australian driver’s licence or learner’s permit
Apply by Paper
To make an application via a paper form, you will need to call the ABRS on the same phone number as above i.e. 13 62 50,and ask for the form to be mailed to you. In addition to completing the form, you will also need to send certified copies of:
one primary and 2 secondary identity documents, or
2 primary and one secondary identity document.
Primary documents
Australian full birth certificate (extracts and commemorative certificates are not acceptable)
Australian passport (including passports that have expired in the past 3 years)
Australian citizenship certificate or extract from a Register of Citizenship by Descent
Foreign passport
Secondary documents
Medicare card
Australian driver’s licence or Australian learner’s permit. This must show your photo, licence card number and signature, and the address on the card must match the details on your application.
If you have changed your name, you must provide another document showing the change, such as a
marriage certificate
deed poll
change of name certificate.
Certifying your Documents
Copies of documents you provide to support your application must be certified as true and correct copies of the original document by an authorised certifier. To certify your documents:
photocopy them
ensure the copy and any photograph is clear and identifiable
take the copies and originals to an authorised certifier.
Authorised certifiers
The following people can certify copies of your original identity documents as true and correct:
Barrister
Solicitor
Medical practitioner
Judge
Justice of the Peace (JP)
Minister of religion (who is authorised to celebrate marriage)
Police officer
Bank, building society or credit union officer with at least 5 years of service
Sheriff’s officer
Commissioner of Declarations (in Queensland only).
A certifier should never witness documents:
for their family, business, clients, employer or any other person where it could create a real or perceived conflict of interest
connected with matters in which they have an actual or perceived personal or financial interest.
So there you have it – you can apply for a Director ID without having to set up a myGovID account. Of the two old-school methods above, I think phoning is the easier option as long as you have all of the documents and information in front of you before you call.
PS – I’m not against getting a myGovID account and in fact, I do advise that you try to get one eventually. However, I do recognise that not everyone is tech-savvy or has a smartphone, or if they do, may not be sure how to navigate it – it is certainly a learning curve and not that easy for some. Luckily, the government understands this too and is providing alternative options to those who may require more time to transition to the digital world.
If your business has a tax debt of at least $100K and it is overdue by more than 90 days, chances are you will soon receive a letter from the ATO explaining its intention to report the debt to credit reporting agencies. These letters are known as “Notices of Intent to Disclose”.
See below for the tax ruling background.
If your tax debt is reported to such credit agencies, this would have a detrimental effect on the business’s ability to maintain a good credit rating or score, leading to a possible inability to lend from banks and finance companies and/or obtain extended payment terms (credit) from suppliers.
The Notice of Intent to Disclose letter will outline ways to avoid reporting action, including paying out the debt, entering into a payment plan and several other methods. It is important to note that where exceptional circumstances have led to, and/or impacted the tax debt, such as family tragedy, serious illness and/or natural disasters, it may be possible to prevent tax debt reporting.
If you think your business may be in the firing line for receipt of one of these letters from the ATO, it would be prudent to contact your tax agent ASAP to discuss the way forward.
(The measure is known as “Disclosure of Business Tax Debt”, and received Royal Assent on 28th October 2019. This measure can be sourced in Schedule 5 of the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1)).
Finally, after the dark days of COVID-19 and endless lockdowns, etc., we are now seeing glimpses of opportunities to travel again (THANK GOD!). For business owners, this means work-related travel is once more on the table. Given it’s been a while between trips, I thought it might be useful to provide a refresher on travel diaries and when they are required.
When do I need to keep a travel diary and what do I record?
When you travel for work or your business, you are sometimes required to keep a travel diary as per the ATO to assist in working out which part of your travel is tax-deductible. I have outlined the circumstances below which would dictate when you should keep such a diary:
You are travelling for 6 or more nights in a rowoutside of Australia, regardless of whether or not the amount you are claiming exceeds the reasonable travel allowance amount.
You are travelling in Australia (more than 6 nights in a row) and the amount you want to claim is more than the reasonable travel allowance amount.
You should include the following in the diary:
Your location
The nature of the activity e.g. a conference
The day/s and time/s (start and end times)
The length of the activity e.g. 2 days
When you stopped for meals
Travel movements and activities before the activities end, or as soon as possible afterwards
The entries must be in English
What can I use as my travel diary?
The ATO has said that you can use a diary or journal of your choice for the purposes of keeping a travel diary. You can also use your digital calendar as well, making sure to attach receipts/invoices to each entry.
What other records do I need to keep?
It goes without saying, that you should keep all receipts and invoices related to your travel as well as the travel diary. This will make both the bookkeeper’s and tax agent’s jobs much easier 🙂 and make the ATO very happy!
Lastly, you need to remember that if you were required to keep a travel diary and you didn’t, then you may not be able to claim the relevant travel expenses on your tax return! Speak to your tax agent for further advice if this affects you.
In an attempt to make it easier for external administrators and regulators to trace directors’ relationships with companies over time, the government now requires every company director to obtain a Director Identification Number or Director ID. This will also prevent fraudulent and unlawful behaviour when a company is wound up e.g. illegal phoenix activities. This will begin in November 2021.
The ID is a unique identifier that is applied for once and is owned by a director forever.
Once the director ID is created, the director will need to share it with his/her company corporation record-holder. This may be the company secretary, another director, contact person, or an authorised agent of the company.
To find out further details about obtaining a director ID, go to the ABRS website.
Over the last few weeks, I have completely turned my beliefs about work, upside down and inside out.
I don’t know if it’s because I’m getting older and starting to eye-off retirement, or if it’s a side effect of living the “Covid-19 lifestyle”, but I’ve changed my mind about how a work-week should look. In short, I’ve decided that for me, the “normal” work-week no longer exists.
I have stopped believing that Monday to Friday are days for work and Saturday and Sunday are days for relaxing or play. For me, there are no longer weekdays and weekends – there are just days. Each day is mine to use as I please. Relaxing can happen on any day. Working can happen on any day. A day may involve both work and play – it’s my choice!
I no longer have set working days or hours – I work when I want to, for as long as I want to, on any day that suits me, including weekends.
I do not subscribe to the “Monday to Friday are for work and weekends are for relaxing”, concept.
How is this possible?
I am well aware that working whenever you choose, is not possible for many people, for various reasons. This is only possible for me because I am self-employed so I can call the shots. I am very lucky in that regard and am very grateful.
But I haven’t written this blog to spruik some sort of new philosophy or to convince you to try it too!
All of this, including this blog, is just for me, but I wanted to share it with you because I have found that this new mindset has made me more relaxed and more focused when I am working. I feel more in control of my work and life in general. I now have a work-life_life-work balance. Cool huh! And, hey, if you do want to give it a try, well that’s up to you, but again, this is really just something I’m doing for myself and my well-being.
How does this make me feel?
This new mindset has given me pure flexibility in my life. On any given day, if I feel like working, then I will work. If I want to take a walk, then I will walk. If I am asked to look after my grandchild, then I will happily do so.
I used to feel guilty if I tried to do something non-work-related during the week, always thinking, “I should be working right now”. Really, I was letting work control my life and my choices. Since enacting my new mindset, I no longer feel guilty. I feel like I’m in charge!
Giving myself permission to work whenever I want to or can, has somehow empowered me. And how do I feel about this? I feel happy and free. Yeah, that’s it. I feel free (even in lockdown!)
Have you made any drastic changes to the way you are working now? Has Covid-19 forced you to work differently compared to pre-Covid days? What are the pros and cons for you? I would love to read your comments – please do leave them below!
