‍Whether you’re in a situation where you may need to wind down a company or not, as a business owner, it’s worth understanding the difference between de-registration and voluntary liquidation.

They are two legal processes that can be used to wind up a business in Australia and while they may appear to be similar, there are some important differences between the two that can impact a company's owners, creditors, and other stakeholders.

Let’s look at each option independently first:

De-registration is the process of officially cancelling a company's registration with the Australian Securities and InvestmentsCommission (ASIC). It is typically used for small companies that are no longer active and have no outstanding liabilities or legal disputes. In order to de-register a company, the directors must ensure that all tax obligations have been met, any outstanding debts have been paid, and all assets have been distributed to shareholders or transferred to another entity.

Voluntary liquidation, on the other hand, is a more formal process that involves appointing a liquidator to wind up the company's affairs.This process is typically used when a company is insolvent, meaning it cannot pay its debts as they fall due, or when the directors decide that the company is no longer viable and wish to wind it up. The liquidator is responsible for collecting the company's assets, paying off its creditors, and distributing any remaining funds to shareholders.

What are the key differences and what impact do they have?

One key difference between de-registration and voluntary liquidation is the level of involvement required from ASIC. When a company is de-registered, ASIC is not involved in the process beyond processing the de-registration application. However, in a voluntary liquidation, ASIC must be notified of the appointment of the liquidator and the progress of the liquidation.

Another key difference is the impact on the company's directors. In a de-registration, the directors are responsible for ensuring that all legal requirements have been met before applying for de-registration.Once the company is de-registered, the directors are no longer liable for any outstanding debts or legal disputes. However, in a voluntary liquidation, the liquidator may investigate the conduct of the directors leading up to the liquidation and take action against them if they are found to have breached their duties.

For creditors and other stakeholders, there are also important differences between de-registration and voluntary liquidation. In a de-registration, creditors have no recourse against the company once it has been de-registered, so it is important for them to ensure that all debts are paid before the de-registration takes place. In a voluntary liquidation, creditors may be able to recover some or all of the amounts owed to them through the liquidation process, although this will depend on the value of the company's assets and the number of creditors.

As with any business decision that has such wide reaching implications, it is important to speak with the Attune team before deciding which process is most appropriate for your circumstances. We’re here to helpwith tailored, strategic advice to ensure you take the right path forward. Call the team on 1300 866 113 or send us an email to start the conversation.  

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‍If you’re considering up-skilling yourself for your current job or adding to your set of skills so you can improve your income, you’ve generally got the option of deducting the cost to do so.

This kind of deduction is formally called a self-education expense, and the word “generally” is relevant as there are some details to be aware before undertaking such study, which we’ll cover below.

How does it work?

To be eligible to claim a deduction for specific expenses relating to your self-education and study it must first be sufficiently relevant to your employment or earning your income. There are some conditions (direct from the ATOs website) you’ll need to satisfy that would make you eligible, such as:

• You're upgrading your qualifications for your current employment – for example, upgrading to a Masters qualification from a Bachelor qualification.
• You're improving specific skills or knowledge you use in your current employment – for example, a course that will allow you to operate more machinery at work.
• You're a trainee employee and the course you are undertaking forms part of that traineeship – for example, an apprentice hairdresser doing a certificate III in hairdressing which is a compulsory component of their apprenticeship.
• You can show that at the time you were working and studying, your course led, or was likely to lead, to an increase in employment income – for example, a teacher who will automatically get a pay increase as a result of completing the course.

 If however the study you are looking to undertake is only generally related to your employment, then you will not be eligible.

As an example, you are employed as an administrative assistant at a company that sells computers and you choose to study computer science at university. Although the course is generally related to your work, the high-level professional skills you’re learning at university aren’t specifically aligned with your current employment status, leaving you unable to claim the deduction.

If however, you were employed to build computers for the same employer and you selected the same course, you may be able to show that the skills you’re learning will progress your employment, allowing you to potentially even increase your income. 

What can be claimed?

Assuming you meet one of the above eligibility criteria, you’ll be able to claim a deduction for a range of self-education expenses. Including:

• General course expenses like; stationery, internet data usage, student union fees, trade, professional or academic journals
• Fees payable under FEE-HELP, VETStudent Loan (formerly known as VET FEE-HELP), but not the repayments on the loan itself. This doesn't include expenses paid under HECS-HELP, and others – Attune can help you check this and advise you as you plan for study.
• Self-education expenses you pay with your OS-HELP loan
• Textbooks, professional and trade journals
• Stationery
• Photocopying
• Computer expenses (see below)
• Student union fees
• Student services and amenities fees
• Accommodation and meals – when the course requires you to travel and be away from home for one or more nights. You can not claim the cost of accommodation and meals associated with day-to-day living expenses
• Additional running expenses if you have a room set aside for self-education purposes – such as the cost of heating, cooling and lighting that room while you are studying in it
• Allowable travel expenses.

And depending on the amount you use your computer for self-education purposes you could also claim a deduction on interest charged to you on any loans used to buy the computer, repairs as well as depreciation of the cost of the computer.

There is a few more details to self-education expenses that are worth understanding if what you see here doesn’t quite sound like you, so reach out and we can assist in clearing it up for you. One of those is the “$250 reduction in expenses” that the ATO applies depending on how you qualify for the deduction, but we won’t go into that detail here either.

We can discuss the finer points with you as part of helping you manage your strategy for studying and guide you through where expenses can be deducted or excluded.

If you’re interested, you can get started with the ATO’s own Self-education Expenses Calculator.

And, if you’re considering studying while you work and looking at how to claim it as a deduction, then speak with the Attune team first. We can help you put the right strategy in place so you’re in the best position you can be at tax-time. Call us on 1300 866 113 or send us an email to start the conversation.  

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‍Since its introduction, thousands of businesses have taken advantage of the (currently) generous instant asset write-off legislation. As the title above suggests (and you may already be aware), the deduction available for the asset is currently capped at $150,000, but there is currently no limit to the cost of the asset (see below for more on this).

Unfortunately, all things must end, and this piece of legislation is no different…

In May 2021 as part of the Federal Budget for 21-22, the government announced an extension of the InstantAsset Write Off to June 30, 2023. Despite the looming end to the opportunity to claim the write-off to the full value, there’s still time.

How does it work?

Temporary full expensing (TFE) allows businesses to deduct the full cost of eligible capital assets from their profits for the year, rather than depreciating the cost over several years. So in essence, you can deduct up to $150,000 per asset purchased in the financial year of which you are lodging.

 Here are some of the specifics:

• The asset must be purchased and in use during the year in which you are claiming the deduction.

• Depreciating assets may include new business vehicles and equipment. For businesses with aggregated turnover of less than$50 million, the assets can be second-hand or new. Businesses with an aggregated turnover of up to $5 billion may also be eligible, but we strongly advise a discussion with the Attune team prior to purchase to ensure eligibility.
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What assets are claimable?

In order to deduct an eligible asset you’ll also need to ensure there’s room in your taxable income to deduct from, you then should understand what assets are eligible for the Instant Asset Write Off… For example:

·      fixtures and fittings (such as shop or cafe fit-outs)

·      technology, such as laptops, computers, EFTPOS systems and securityequipment

·      tools, plant and equipment

·      office furniture

·      motor vehicles such as utes, delivery vans and most cars(deductions for these are capped at a certain limit each financial year –$64,741 in 2022/23)

·      motorbikes

·      solar systems.
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As you can see by this list, there are limits in some areas, most especially motor vehicles. Here are details of some of the exclusions:

·      ‘Expensive’ cars (for the 2022/23 financial year, this means cars costing more than $64,741)

·      Buildings and other assets that are eligible for capital works deductions

·      Assets located overseas

·      Some primary production assets (such as fencing and water facilities)that already have an existing instant write-off scheme in place

·      Assets that are not used in a business.

And of course, you must be able to show that the asset is used as part of your business – this includes the percentage of business use if it is a motor vehicle. Generally, a log book will allow us to convert your kilometres into a business use and thus deductible percentage.

I need a new business asset, what do I do?

If you’ve identified a need in your business for a new asset, we suggest you contact the Attune team first so we can assess your situation against what is possible so we can guide you toward the best outcome.Essentially, we’ll go over your financial situation and discuss the asset in question before offering advice on a price cap and ultimately how much can be deducted.

For more about the Instant Asset Write Off and your eligibility, call Attune on 1300 866 113 or send us an email to start the conversation. And don’t delay, there’s not long left until the June 30 deadline arrives!

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Outsourcing. It’s a big part of many successful businesses, but what can or could you outsource at a lower cost? Outsourcing done right, has the ability to create better value for your business or even add the expertise you need at a fraction of the cost of hiring in-house.

From C-suite execs to VAs and more, let’s take a look at some options that might surprise you, improve the running and bottom line of your business or simply reduce your workload so you can focus on more important tasks.

Reading reviews online or speaking with other business owners about their use of outsourcing can help guide you in making a decision to follow suit, but our main piece of advice is to simply make sure you’re undertaking the hire as part of your overall strategy. After all, following your business plan and growth strategy is ultimately what will keep you moving in the right direction.

Not all outsourcing is offshore, nor is it all created equal

Outsourcing is defined as this: obtaining (goods or a service) by contract from an outside supplier. The simplicity of meaning makes it easier to consider how it might work for you and to show that we’re not just talking about call centres…

There is literally thousands of options for outsourcing in today’s digital landscape with a quick google being enough to overwhelm you. With some careful research you might however be surprised at the kind of work you can hire for with your pick of personnel and their location.

Let’s take a look at some of the options available:

There’s no doubt you’ve experienced a call or email exchange with someone working as an outsourced contractor in your daily life, but those calls or emails don’t always fit the cliché or stigma that often comes with outsourcing.

For example, let’s say you’ve started an online store and your business is young and growing. You’ve started it with most of the skills you need to continue building it, but you need some guidance from someone at the top level of such an operation. Well, you can find and contract a CEO with the specific experience you need at an agreed time and rate that fits your budget by outsourcing to someone like The Shared CEO.

Doing some digging reveals that The Shared CEO is run byJustin Hillberg, a man with decades of experience building online brands (some huge ones). After contacting The Shared CEO, it quickly becomes evident that you’re getting bespoke high-level help with their service. The beauty of the offering is that it doesn’t just come with a temporary CEO to offer real guidance, they also employ partners across related fields (including financial)that bolster what you can get from your time with them. It might seem out of the ordinary to outsource a key role like a CEO, but many businesses simply can’t afford that level of experience on their payroll and according to their team, the benefits of even a few hours a month can be enormous.

Our own version of outsourcing might also be worthwhile investigating for your business. Attune provide a unique Virtual CFO service, perfect for businesses seeking the expertise and financial insight of a CFO, without the permanent full-time employee price tag.

Attune’s Virtual CFO offers a qualified, experienced external financial specialist, who will assess cash flow and financial risk and identify opportunities for growth, guiding you towards reaching your business goals. We’re available when you require us and we strategically assist with maximising profitability and overseeing your business’ financial position. We offer the passion and commitment of a full-time CFO without the cost.

If your business needs less specialised help, you’ve got plenty of options.

Perhaps it’s in the form of a Virtual Assistant who can take on the more routine tasks of your work day. One good example might be Remote CoWorker, a business offering dedicated VA professionals. They match your business with their staff and can tailor their time to suit your budget.You’ll get to meet (digitally) the person you’ll be dealing with directly and help ensure they’re suitably trained in the line of work you’re after.

The beauty of this arrangement is clearly in the saving of your time not to mention the ability to have someone on a contract that doesn’t require a full-time wage. Their list of clients is impressive enough, but the reviews reveal a trend of customers finding faster growth in their business through outsourcing.

The list doesn’t end there however… You might require customer support representatives, a phone answering service, an appointment manager, quality assurance or even a sales representative all of which you can find through any number of organisations.From Beepo to FusionBPO, the statistics of their reach and capability are almost staggering revealing the frequency of business using outsourcing services the world over.

A word on due diligence 

The concept of outsourcing is great for so many businesses but each one will have their own story about how good or bad their experience is/was. If you’re considering outsourcing any part of your work, do your research on the people or business you’re engaging to make sure it’s the right fit. 

If your business needs the experience of a CFO and you’d like to discuss our Virtual CFO service, we’d love to show you how it can be of benefit. Give the Attune team a call on 1300 866 113 or send us an email to start the conversation, you won’t regret it.

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