customer reviews

Google’s April 2023 Reviews Update

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How will Google’s update impact business?

Experience Matters

Google’s April 2023 Reviews Update will have a significant impact on businesses that rely on online reviews to attract customers.

To ensure that your business continues to be visible in search results, it’s essential to focus on providing high-quality reviews that offer valuable information to potential customers.

One of the key things to keep in mind is that reviews should be written in a clear and concise manner.

This means avoiding irrelevant information or going off-topic. Reviews that provide helpful information about a business, its products, and its services will be more likely to appear in search results.

Another important consideration is the use of keywords.

Google’s algorithm will now prioritise reviews that contain relevant keywords related to the business or product being reviewed. This means that businesses should encourage customers to include relevant keywords in their reviews to increase the visibility of their business in search results.

Notch Above Bookkeeping is a team of certified Xero bookkeepers and BAS Agents. Whilst we help small business owners right across Australia prepare their BAS returns and streamline their bookkeeping processes, payroll and accounting records, we like to keep an eye on the bigger picture. Contact us on 1300 015 130.

Article first published by Viva Digital on 20 April 2023 at https://www.vivadigital.com/googles-april-2023-reviews-update-experience-matters/

payroll

Super guarantee rate change scheduled

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Get ready for a change in the super guarantee rate

The superannuation guarantee (SG) rate will increase from 10.5% to 11% on 1 July 2023.

Employers, remember to update your payroll system to align with these changes.

The new SG rate applies to payments made to workers on or after 1 July 2023.

The Superannuation Guarantee is a compulsory scheme that requires employers to provide a minimum level of superannuation support to their eligible employees.

Under this scheme, employers are required to make regular contributions to a complying superannuation fund or retirement savings account (RSA) on behalf of their employees. The current rate of SG contribution is set at 10% of an employee’s ordinary time earnings, with some exceptions for certain employees such as those under 18 years of age or earning less than $450 in a month.

The aim of the SG scheme is to help save for retirement and reduce reliance on the age pension. It also helps to ensure that employees are provided with a level of superannuation support throughout their working life, regardless of their employer or industry.

It is important to note that the SG scheme is separate from any additional voluntary contributions that an employee may choose to make to their superannuation account.

  • Refer to the ATO’s Super Guarantee Percentage table here »

Notch Above Bookkeeping are certified Xero bookkeepers and feature agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero payroll services below and get in touch today to discuss which plan best suits the needs of your business.

break and enter via door

Cybersecurity strategy — patching operating systems

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Why it’s risky to delay system updates

Imagine coming home from a long day at work to find that the lock on your front door is broken.

Your house is now vulnerable to intruders, and you have a choice to make: do you ignore the issue and hope for the best, remind yourself to fix it later, or get it fixed right away?

Most of us would choose to get it fixed immediately, as leaving it broken could lead to serious consequences. The same principle applies to your device’s operating system. It is responsible for managing your apps, software, and hardware and it is crucial that you keep it up to date and secure.

In a previous blog post, we discussed the importance of patching apps downloaded to your device. However, it’s equally important to patch your operating system. Cybercriminals are constantly searching for vulnerabilities in outdated systems and can create malware to exploit them within 48 hours. By neglecting to update your operating system, you not only put your own information at risk but also that of your clients.

To ensure that your systems remain secure, here are three ways to keep them updated:

  1. Turn on automatic updates: This takes the stress out of manually updating your systems and ensures that the patch is applied as soon as it becomes available.
  2. Replace unsupported software: If your operating system is no longer being updated by the vendor, your data is more vulnerable to a cyber attack. It’s important to replace unsupported software with a more secure option.
  3. Apply vulnerability scanning software: This can help identify holes in your system that need patching, making it easier to stay on top of updates and keep your systems secure.

By implementing these strategies alongside the previous strategies we’ve shared, you can keep your systems secure and protected from cybercriminals who are constantly looking for ways to exploit unsecure doors. Remember, just like fixing a broken lock, updating your operating system is a small but critical step in keeping your digital environment secure.

Federal Budget 2023-24

Federal Budget 2023-24

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Summary of the areas of impact for tax and superannuation

The Federal Government has handed down its 2023-24 Budget which outlines its economic forecasts and identifies key priorities including cost of living relief and growing the economy.

Federal Budget 2023-2024 Highlights

The Treasurer announced a package of cost-of-living measures, including up to $3bn in energy bill relief (expected to reduce power bills by up to $500 for five million households) and $1.3bn for home energy upgrades. These measures have been designed to provide relief without adding inflationary pressures.

In broad economic terms, a Budget surplus of $4.2bn is forecast in 2022-23, but an underlying cash deficit of $13.9bn is expected in 2023-24 (and a $35.1bn deficit for 2024-25).

Australia’s economic growth is expected to slow from 3.25% in 2022-23 to 1.5% in 2023-24 but is predicted to recover to 2.25% in 2024-25.

While inflation remains elevated at 6% for this year, it is expected to fall to 3.25% in 2023-24 and return to the Reserve Bank of Australia’s target band of 2-3% in 2024-25, which the Treasurer stated was still higher than the Government would like.

Below are some of the key highlights from this year’s Budget:

Personal Taxation Measures

  • Stage 3 tax cuts – The Government did not announce any personal tax rates changes. The Stage 3 personal income tax cuts will commence from 1 July 2024 as previously legislated. From 1 July 2024 the 32.5% marginal tax rate will be cut to 30% for the $45,000 to $200,000 tax bracket. The 37% tax bracket will be entirely abolished at this time.
  • Medicare levy thresholds – The Medicare levy thresholds across all categories have been increased for the 2022-23 and later income years.
  • Medicare levy exemption – Eligible lump sum payments in arrears will be exempt from the Medicare levy for low-income taxpayers provided they satisfy the eligibility requirements for the existing lump sum payment in arrears tax offset. This change will commence from 1 July 2024.

Small Business Measures

  • Small business instant asset write-off threshold – The threshold will be temporarily increased to $20,000 for small businesses with aggregated annual turnover of less than $10m for assets that are first used or installed ready for use between 1 July 2023 and 30 June 2024. Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.
  • Small business energy incentive – Businesses with annual turnover of less than $50m will be able to claim an additional 20% deduction on spending that supports electrification and more efficient use of energy. Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024.
  • Small business lodgment penalty amnesty – Small businesses with aggregate turnover of less than $10m will be given an amnesty which will remit failure-to-lodge penalties for outstanding tax statements lodged in the period from 1 June 2023 to 31 December 2023 that were originally due between 1 December 2019 to 29 February 2022.
  • PAYG and GST instalment uplift factor – The GDP uplift factor will be set at 6% (rather than 12% as would otherwise apply under the statutory formula) for instalments with respect to the 2023-24 income year that fall due after the measure is legislated.

Business Taxation Measures

  • Build-to-rent properties – For eligible new build-to-rent projects where construction commences after 7:30 PM (AEST) on 9 May 2023, the Government will increase the rate for the capital works tax deduction (depreciation) to 4% per year and reduce the final withholding tax rate on eligible fund payments from managed investment trust (MIT) investments from 30% to 15%.
  • FBT rules for electric vehicles – The Government confirmed that plug-in hybrid electric cars will not be eligible for the FBT exemption for electric cars from 1 April 2025.
  • Part IVA extension – The Government will expand the scope of the general anti-avoidance provisions in Pt IVA of the ITAA 1936 to apply to two additional types of schemes relevant to foreign residents. The changes will apply from 1 July 2024.
  • BEPS Two Pillar Solution start dates – The Government will implement two key aspects of the Two-Pillar Solution to address base erosion and profit shifting. Firstly, a 15% global minimum tax rate for large multinational enterprises with the Income Inclusion Rule (IIR) applying to income years starting on or after 1 January 2024 and the Undertaxed Profits Rule (UTPR) applying to income years starting on or after 1 January 2025. Secondly, a 15% domestic minimum tax will apply to income years starting on or after 1 January 2024.
  • PRRT changes – The Government will make changes to the Petroleum Resource Rent Tax (PRRT) legislation including limiting deductions to 90% of assessable receipts in some circumstances and amending the meaning of “exploration” and “mining, quarrying and prospecting rights” in response to the Shell Energy Holdings Australia case.

Superannuation Measures

  • Non-arm’s length income (NALI) – the amount of non-arm’s length expenses (NALE) taxed at 45% as NALI will be limited to twice (down from a multiple of five) the level of a general expense from 1 July 2023 for SMSFs and small APRA funds. In addition, fund income taxable as NALI will exclude contributions to effectively exempt large APRA regulated funds from the NALI provisions for both general and specific expenses of the fund.
  • Super account balances above $3m – despite pushback from industry, the Government has confirmed its intention to apply an extra 15% tax on total superannuation balances above $3 million from 1 July 2025, including in relation to defined benefit schemes. No further details were released so it is expected the proposed changes will operate as previously announced (ie, unrealised gains will be subject to the extra 15% tax).
  • Payday super – employers will be required to pay their employees’ super guarantee at the same time as their salary and wages from 1 July 2026.
  • Pension drawdowns: no reduction in minimum – the Budget did not announce a further extension to 2023-24 of the temporary 50% reduction in the minimum annual payment amounts for superannuation pensions and annuities.

The full Budget papers are available at www.budget.gov.au and the Treasury ministers’ media releases are available at ministers.treasury.gov.au.

The highlights set out are still only proposed and are not yet law.

Source: Financial Professionals Australia

Key Performance Indicators (KPIs)

Using KPIs to Drive Management Decisions

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KPIs as important management tools

Key Performance Indicators (KPIs) are important management tools and we encourage business leaders to use KPIs in their businesses.

What is a KPI?

A KPI is a quantifiable measurement or metric which helps track the progress towards business goals. Leaders use KPIs to make better, data-driven decisions. They also guide behaviour, productivity and decision-making, while providing transparency and accountability.

What forms can KPIs take?

There are different kinds of KPIs. Here’s an overview:

  • Financial KPIs are the most common. Examples include operating and net profit margin, sales growth and accounts receivable turnover
  • Organisational KPIs measure strategic, long-term goals that are tied to a company’s mission or values. Examples include market share gains, customer acquisition increases, global expansion and revenue growth
  • Operational KPIs monitor the day-to-day business performance of processes, teams and individuals in various business functions such as human resources, sales, inventory management and marketing
  • Leading KPIs are predictive. They point to possible future events or outcomes and are useful for planning purposes. For example, a sudden increase in the number of returned products might signal an issue with quality and indicate that revenue will drop in the future
  • Lagging KPIs measure what has already happened and highlight patterns or trends which help leaders make important decisions. For example, if inventory turnover has been decreasing in recent months, management may take action to reverse the trend.

How do leaders develop KPIs for a business? 

Each business is different but establishing KPIs usually means:

  1. Reaffirming the Business Goals. For example, a business aiming to increase revenue, enter new markets, downsize the labour force or acquire a competitor will be interested in different KPIs
  2. Defining KPIs Suited to Your Goals: For example, a business focused on top-line growth may track the number of leads, sales conversion, number of Clients and revenue growth. The industry, or business model will also influence the KPIs you choose. For example, a service provider may monitor Average Hourly Rates achieved on each project while a manufacturer may track how quickly they convert their investment in fixed assets and inventory into cash
  3. Outline the Data Sources for KPIs. There’s no point developing KPIs for which you cannot easily obtain the underlying data or if that data is inaccurate. Establish how data will be collected and how often it will be updated.
  4. Determine How to Communicate KPIs. Charts and graphs presented in dashboards help the team to visualize progress without much explanation. Simplicity also helps leaders get buy-in from all stakeholders, especially those who are critical to achieving the business objectives.

How are KPIs used?

Having developed KPIs, use them for

  1. Planning: Going through the process above will help leaders build robust long and short-term plans.
  2. Tracking Progress: Internal meetings to review performance relative to KPIs helps managers to make adjustments and improve performance
  3. Provide Focus: A team pulling together in the same direction is more likely to be successful. KPIs provide this focus while also forming the basis of incentive plans.

Do you need to develop or update KPIs for your business?

Need help developing KPIs for your business? Get in touch with Notch Above’s Bookkeeping Team on 1300 015 130 or read more at Understanding the Numbers.

woman working at laptop

Cybersafety and configuring macro settings

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Macros can be useful for streamlining day-to-day tasks…

But they can pose a security risk if they are not properly maintained.

The Australian Cyber Security Centre (ACSC) has observed an increase in attempts to compromise businesses by embedding malware in macros.

Microsoft Office macros are created by recording a series of commands, such as mouse clicks and keystrokes, to create a shortcut for repetitive tasks.

Malicious macros can be shared by cybercriminals and, if used, may grant unauthorised access to devices.

To minimise risks, it is recommended to ask three questions before using a macro:

  1. Is there a business requirement for the macro?
  2. Has the macro been developed or provided by a trusted party?
  3. Has it been validated by a trustworthy and technically skilled party?

To further safeguard your business systems and customer data, it is important to disable macros for users who do not require them — only enable macros from trusted locations, and only enable digitally signed macros created by trusted individuals on a case-by-case basis.

Related reading

Source: ATO