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Loans currently available for agriculture & rural small business

8 November 2019

On 7 November 2019, the Government  announced an overhaul to the Regional Investment Corporation (RIC) funding rules which would see a couple of key changes.

Previously, the RIC was making available loans of up to $2 million with low interest rates (3.11%).

The main changes are as follows:

   1. Changes to the repayment options which have been announced are:

  • The first two years, interest and repayment free
  • The following three years, interest only
  • The following five years, interest and principal

   2. Small Business Drought loans of up to $500,000 will be available for small businesses that directly provide primary production related goods and services to farm businesses in ‘the most drought affected communities. There is currently no guidance on how this will be determined.

At this stage this is an annoucement from the Government, and more specific requirements will follow. It also remains to be seen how they are going to determine which areas are eligible for the Small Business Drought loan. 

Furthermore, there is currently no guidance on what will happen with interest charges on RIC loans already approved and those currently in the application stage.

Boyce will continue to send updates as new information becomes available.

Please click here to read the latest press release regarding these changes or visit www.ric.gov.au.

Should you wish to register your interest or find out more information, please email info@ric.gov.au, call 1800 875 675 or contact your local Boyce accountant.

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Meet the team - Kate Jones from Dubbo

30 October 2019

Kate was born and bred in Dubbo, so when she saw a job advertised on Seek based in the Boyce Dubbo office, she jumped at the chance to apply.

 

Name: Kate Jones

Role: Tech Cadet

Location: Boyce Dubbo Office, The Central West, NSW.

1. What sparked your interest in applying for a job with Boyce?

Word of mouth about Boyce as an employer in Dubbo has always been really positive, so when I saw a job on Seek with them I was very keen to apply. I actually applied for an Admin Role, but when the Boyce team noticed I am currently studying a Bachelor of Information Technology at Charles Sturt University, they offered me the Tech Cadetship.

2. How long have you been working with Boyce?

I have been with Boyce for six months now and I feel I am getting a very well-rounded experience. I work in the Technology Team, who oversees the technology infrastructure that the Boyce teams use. I am in the office four days a week and one day a week is dedicated to my uni work. I’ll complete my degree in 12-months time and then plan to work full-time.

3. What role do you think financial services plays in regional communities, particularly in times of drought?

Being in drought seems to have brought the community in Dubbo together. Everyone is very keen to shop locally and support local businesses whenever possible.

4. What do you love about living and working in Dubbo?

 I enjoy spending time on the walking trails that are around Dubbo. I was born and bred here, so I am really excited to have landed a great role in my local town.

5. How do you wind down after work and uni hours?

I practice martial arts and I have a black belt.

Meet the team - Salina Lennon from Wagga

16 October 2019

Meet Salina Lennon, a Cadet in Wagga who started with Boyce at the beginning of this year. Salina is a valuable asset to Boyce as she brings great spirit and fun to the team and has an eagerness to learn and progress her career in Accounting. 

1.      What sparked your interest in a career with Boyce?

Lots of my family and friends work in financial services, including my Dad. I have always had an interest in this sector, so when I finished school in 2015 it was an easy decision for me to pursue a career in this field. I like the fact that Boyce has a wide range of clients, including in the Agricultural industry, as that keeps the job interesting and challenging.

2.      What are you currently studying?

I am studying Accounting at Charles Sturt University, Wagga Wagga and I am aiming to complete my degree in 2022. I’m in the Boyce office four days a week and attend lectures and tutorials on campus at the uni two mornings a week. It’s the ideal mix of work and uni life for me.

3.      How did you secure the cadetship?

I had done some online research and felt like Boyce would be a great firm to work for. I called one afternoon asking about the cadet program and if there were any positions available in the near future. Coincidently they were about to start advertising for a cadet position the following week. I came in for my interview a few days later and managed to secure an offer of employment. The timing was perfect!

4.      What do you like about living and working in Wagga?

I’m from Sydney originally and moved to Wagga in June 2018. I was interested in working and studying in the country as the diversity of the work and the way of life appealed to me. I’m finding Wagga a friendly place to live and work; it’s an easy town to live in with everything you need and a desirable country-feel.

5. What do you enjoy doing outside of work and uni hours?

I have a dog named Roxy and we are like two peas in a pod. I spend a lot of time with her, which is fun, she keeps me on my toes.  

ATO to contact SMSF trustees

6 September 2019

The ATO are intending to contact about 17,700 self-managed super fund (SMSF) trustees and their auditors where records indicate the SMSF may be holding 90% or more of its funds in one asset or a single asset class. The ATO wish to ensure trustees have given due consideration to diversifying their fund’s investments and the risks associated with a lack of diversification. Lack of diversification or concentration risk can expose the SMSF and its members to unnecessary risk if a significant investment fails.

The ATO media release does not indicate they are targeting particular asset classes, however, it is likely the action will focus around funds where assets are concentrated in real property.

If you do receive a letter from the ATO regarding your SMSF’s investment strategy meeting the diversification requirements please contact your accountant or our super team. We will review your investment strategy to ensure the documentation meets the diversification requirements.

If you require further information regarding the requirements of your SMSF’s investment strategy click here.

The top 5 End of Financial Year (EOFY) Tips for Farmers

25 June 2019

A lot of the work that Boyce do in the last couple of months of the financial year is tax planning for clients – a process of determining an approximate net income position and then helping our clients with strategies to optimise their tax position and develop a plan to achieve this outcome.  This can include a mixture of utilising the Primary Production tax provisions (including FMD’s, deferral of profit from forced sales, PP Averaging), considering timing of income and expenditure, superannuation contributions and structuring with different entities and family members.

While we’re doing that work, and in the lead up to the end of financial year, it’s a good time to plan ahead for the future.  Here are our top 5 tips for consideration:

  • If accounting on an accrual basis, ensure that all receivables and payables have been correctly accounted for before the EOFY.  Make sure that expenses on credit cards and other accounts have been picked up so that tax deductible expenditure isn’t over-looked, and make sure that unpresented cheques (ie up to and including 30 June) are included in your June bank reconciliation.  You don’t want to risk losing all of the diligent work you’ve been doing throughout the year, therefore backup your electronic records (if you’re not using a cloud-based program), keep the backup in a safe place and forward your accounting software data file to your accountant so that you know there’s a copy with them for safe-keeping.
  • Consider whether or not any changes to business structure should be considered (for flexibility, tax planning, succession planning, or some other reason).  A new financial year is the logical time to do this so that taxpayers don’t have to worry about the additional compliance requirements associated with 2 different entities operating in the one financial year.  You might also consider whether or not you could be doing something with superannuation and speaking with your advisers about whether or not there are opportunities that are suitable to your circumstances.
  • Like a change of business structure, a change of accounting system is best considered at the change of a financial year.  Consider whether or not your existing system is meeting your needs, and if not what other options might be available.  In addition all businesses will need to comply with single-touch payroll from 1 July 2019, so if you’re doing a software evaluation, consider whether or not your chosen software is going to be compatible with the new requirements.
  • Make sure that everything is in order for EOFY reporting for wages (including superannuation, PAYG withholding, workers compensation and payroll tax if applicable), June Business Activity Statement (BAS), and general financial year close off.  Make sure that all of your records are in order for your accountant, including documentation for asset purchases (including any equipment finance, contracts/settlement statements for property purchases, etc).  It’s also a good time to reconcile your livestock numbers, fodder on hand, etc that your accountant will be wanting in the months ahead – it’s often harder to get this information right as you get further away from 30 June and the numbers change.
  • EOFY is also a good time to consider whether or not there are strategic opportunities for your business and to set some goals for the future.  This could include some of the big picture items such as succession and estate planning, purchase of another property, evaluating your mix of enterprises, considering property improvements, etc.

One of the big changes for businesses in the 2019/20 Federal Budget was the expansion of the instant asset write off rules. The Government increased the instant asset write off threshold from $25,000 to $30,000. Small businesses (with aggregated annual turnover of less than $10 million) can immediately deduct purchases of eligible assets, costing less than $30,000 that are first used, or installed ready for use, from 7.30PM (AEDT) 2 April 2019 to 30 June 2020. Prior to 7.30PM (AEDT), the thresholds are:

  • To 29 January 2019 - $20,000;
  • Between 29 January 2019 and 2 April 2019 - $25,000.

Further, access to the instant asset write off  provisions has been extended to medium sized businesses (businesses with aggregated annual turnovers of $10 million or more, but less than $50 million). Medium size businesses are now also entitled to an immediate deduction for purchases of eligible assets costing less than $30,000 that are first used, or installed ready for use, from 7.30PM (AEDT) 2 April 2019 to 30 June 2020.

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