SMARTEN UP! The Tax and Business Podcast

Expanding a business internationally into new markets can be an exciting yet daunting venture. But without asking the right tax and compliance questions upfront, your global growth plans could be stopped in their tracks.
In this information-packed episode, Sally breaks down the top 5 tax considerations that every Australian business needs to address before going global.
Sally demystifies critical issues around international expansion that many entrepreneurs overlook in their haste to enter new markets. From picking the right overseas entity structure to repatriating profits, she provides clarity on the key tax implications at each stage.
In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

• What entity structure to operate through overseas (00:54)
• How overseas profits will be taxed (02:21)
• How to repatriate profits back to Australia (05:54)
• How cross-border transactions will be treated (08:21)
• Reporting obligations in Australia and overseas (22:21)

Expanding internationally presents huge opportunities for business growth, but the tax implications can trip up even seasoned entrepreneurs. With myriad rules across different countries, tune in to understand the tax lay of the land before leaping into new markets.

CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

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LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Side hustles are more popular than ever. From rideshare driving to selling crafts online, people are finding creative ways to supplement their income. But if your side gig starts generating serious cash, you may suddenly have some not-so-fun tax obligations.

So how do you know if your hobby has crossed into business territory in the eyes of the taxman? What happens if you start racking up losses from your entrepreneurial experiments? Can you reduce the tax on your regular salary?

Finding clarity on these issues is critical. Get it wrong and you could face penalties, interest as well as the tax bill! 

In this episode, Sally demystifies the complex issue of hobby vs business taxation. With her tax wisdom and personal experience moonlighting as a gym instructor, Sally provides practical insights for side hustlers.

In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

• The difference between a hobby and a business for tax purposes. (00:54)
• Factors that determine if an activity is a business or a hobby. (02:34)
• Tax treatment and obligations if deemed a hobby vs. a business. (04:21)
• Non-commercial loss rules for claiming business losses. (09:20)
• Examples of applying the non-commercial loss rules. (13:12)
• Key takeaways. (16:58)

Understanding if your side hustle is a hobby or business is crucial for tax compliance and unlocking key deductions. As Sally summarised, you need to evaluate your activities against factors like profit motive, repetition, systems, record keeping and more. CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Business succession and exit planning is a complex, multifaceted process filled with potential pitfalls. In this information-packed episode, Sally speaks with lawyer Kylie Wilson, a specialist in business succession, on this crucial topic for business owners.

They explore several common scenarios - selling to a third party, transitioning to key employees, passing down to family members. Kylie brings her extensive experience to outline not only the opportunities in each case but also the disputes, legal consequences, and other complications that frequently arise when succession planning is inadequate.

From the nitty-gritty of structuring share sales to the critical emotional dynamics in family businesses, Sally and Kylie leave no stone unturned. They offer smart strategies and savvy advice to properly plan your own exit, avoid destructive conflicts, maximise sale value, and leave the legacy you envision.

In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

• Key considerations when selling a business on the open market (04:23)
• Strategies for transitioning a business to key employees (09:29)
• Complex dynamics and estate planning challenges with family business succession (11:24)
• The importance of proper planning to minimise disputes and costs (19:19)

Whether you intend to sell to a third party or pass down to the next generation, every business owner should listen to understand what lies ahead and how to chart the optimal path forward. CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

For any aspiring entrepreneur ready to take the leap into business ownership, the landscape can seem daunting. Between permits, legal entities, taxes, accounting, insurance, banking, not to mention actually creating and selling your product or service, launching a company requires crossing many T’s and dotting many I’s.

It’s complex, but it doesn’t have to be overwhelming. In this episode, Sally draws from her real-world expertise to simplify the process and presents her top 10 steps that all entrepreneurs should take when embarking on their journey.

As an accountant turned entrepreneur herself, Sally understands the multitude of essential boxes business owners need to check before opening their doors. From concrete tasks like registering your business structure to conceptual musts like projecting profit margins, her actionable advice aims to prevent aspiring business owners from leaving loose ends that could create issues down the road.
ten Up! The Tax and Business Podcast, you’ll learn:

• The 10 items you need to address when launching a business (0:55)
• Choosing and establishing your business structure (2:20)
• Registering your business entities and obtaining credentials (3:29)
• Getting adequate insurance to mitigate risks (4:00)
• Setting up financing and payment collection (4:30)
• Understanding costs, pricing, and profit calculations (5:15)
• Drafting terms and conditions, contracts, policies, etc. (6:25)
• Implementing accounting systems and administrative processes (7:05)
• Ensuring your product/service meets customer demand (8:00)
• Marketing your business through digital channels (9:12)

Whether you’re still an aspiring entrepreneur unsure of how to get started or you’ve already begun putting the pieces together for your new business, you’ll come away with a checklist of concrete action steps needed to set your new venture up for sustainability and success.CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Ever wondered why it takes so long for a bank to approve your business loan application?  As days turn into weeks without a response, you're left confused and anxious, pulling your hair out wondering what exactly is happening behind the scenes.
Getting a bank loan approved for your business can be frustrating when it seems hard to access clear information on the complex loan application process. In this episode, Sally interviews finance expert Donna Bannister, who demystifies exactly how banks assess business loan applications over $2 million. We break down the lengthy but critical process banks use to assess loans over $2 million.
In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

• The numerous critical pieces of information banks require to paint a picture of your business (2:30)
• What credit managers look for when deciding to approve loans (3:58)
• Why your banker and broker relationships are key to timely loan approvals (9:01)
• How your financial reporting impacts your chances, from accurate financial statements to projected budgets (12:14)
• How issues like assets written-down for tax can unexpectedly hurt your loan application (18:43)

Getting significant business funding from banks is never a straightforward process, but it doesn’t need to feel like a black box either. Tune in to equip yourself to understand banks’ critical evaluation criteria and loan approval procedures.CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Getting your business valuation right is crucial, yet the process is often shrouded in complexity. From navigating tax compliance rules to making sound strategy decisions, an accurate valuation forms the foundation. 
However, many entrepreneurs and business owners find valuations confusing. When do you need one? Who should conduct it? What methodology should they use? How do you avoid penalties if the ATO contests your valuation?
In this episode, Sally and Ellie Murdoch peel back the layers on these pressing questions. You’ll learn the intricacies of the valuation process from an experienced practitioner perspective.
In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

• The types of transactions that may require a business valuation (2:32)
• When you need to engage an external valuer vs. doing an internal valuation (8:05)
• How to select the right valuer (14:34)
• What happens if your valuation doesn’t meet the ATO’s expectations (18:57)

Whether you’re buying, selling, raising capital, or expanding, accurate valuations serve as the foundation. Costly errors and missed chances can occur when valuations miss the mark. Tune in to pick up practical tips to get valuations right.CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Does your business invest in innovation? Find out how the R&D Tax Incentive can help support your R&D activities.
Sally interviews R&D advisor Ellie Murdoch on the intricacies of the R&D Tax Incentive. Understand the eligibility criteria and application process to see if your business can access the program.
In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

• Eligibility for the R&D Tax Incentive (01:10)
• Financial benefits for companies (02:33)
• What constitutes eligible R&D activities with a case study (04:09)
• Substantiating your claim with documentation (09:39)
• Key steps to apply for the R&D Tax Incentive (12:16)

The R&D Tax Incentive offers tax incentives for innovative Australian companies across various industries. Whether you’re just starting to plan your R&D project or have made a claim previously, this episode provides invaluable insights on how you can fund your innovation and assess your eligibility to the program.CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Can you keep talent without paying top dollar? Learn how employee share schemes can offer a compelling way to incentivise and retain staff.
Sally breaks down the most common arrangements used to give employees a stake in your company, alongside the legal and tax considerations. With expert commentary from Ellie Murdoch, they unpack the pros, cons and obligations around schemes like discounted employee shares, share options, vendor financing and more.
In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

• The most popular alternatives used to incentivise staff beyond salary (0:22)
• The key decisions to guide your employee share scheme approach (1:52)
• Where businesses should start when exploring their options (3:53)
• Tax obligations triggered by issuing discounted employee shares (6:45)
• Tax risks around vendor financing employees to purchase shares (11:54)
• How partly paid shares work and considerations before using them (13:38)
• Case study on structuring incentives for a tech startup (18:33)
• Reporting deadlines and admin needs with employee share schemes (25:01) 

Discover what you need to ask before offering equity, as well as how to structure incentives that excite employees without nasty surprises. Whether you want to issue shares upfront or tie them to tenure and performance hurdles, this episode will help you make better informed decisions.CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Selling a business can yield significant profits, but with profit also comes tax. Learn how small business capital gains tax concessions can reduce or even eliminate taxes when selling.
Sally explains how these little-known but impactful tax rules work when structuring the sale of a small business. She examines a case study of business owners, Martha and Artie selling their engineering firm.
In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

• Key decision points when selling a business (2:21)
• Overview of basic requirements to qualify for concessions (8:47)
• How the 15-year exemption could make gains completely tax-free (13:42)
• How the 50% small business CGT discount works on top of general discounts (15:28)
• Other concessions like rollovers and retirement exemptions (17:12)
• Why obtaining expert advice early is crucial (20:36)

Selling a successful small business can represent the culmination of years of hard work. Arm yourself with the knowledge from this episode before you sell your small business and reap maximum reward from your years of effort.CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Deciding on the best structure for your business can be confusing. In this episode, we look into the key factors to consider when choosing between a sole proprietorship, partnership, company, or trust.

Sally summarises the basic pros and cons of each structure and does an in depth discussion into the critical factors you need to evaluate when choosing a business structure.

In this episode of the Smarten Up! The Tax and Business Podcast, you’ll learn:

• The scenarios where a company structure is preferable vs operating as a sole trader (12:05)
• How to protect your personal assets when choosing a business structure (17:30)
• Tips on structuring your business to facilitate future growth or sale (23:45)

Choosing the right structure for your business is a foundational decision that will have significant long-term impacts. While the analysis may seem complex on the surface, breaking it down methodically makes your path forward clearer. Tune into this information-packed episode to ensure you choose the optimum structure.

CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/