September 2024 E News
Welcome to our September newsletter. In this edition, we analyse complex financial markets, highlight upcoming NSW Small Business Month Expos, look at Cybersecurity and offer tax tips to avoid unintended consequences.
September 2024 was a month of mixed fortunes for the Australian financial markets, influenced by a complex interplay of domestic and global factors. Domestically, the Reserve Bank of Australia (RBA) maintained its cash rate at 3.15%, signalling a pause in its tightening cycle. While this provided some relief to borrowers, markets remained uncertain about the future path of interest rates, with concerns persisting over inflation. The Australian dollar strengthened against the US dollar, buoyed by stronger-than-expected GDP growth and rising commodity prices. On the global stage, the Federal Reserve's continued monetary tightening and geopolitical tensions created a backdrop of uncertainty. Rising interest rates in the US increased concerns about a potential global recession, leading to increased market volatility. The war in Ukraine and other geopolitical events also disrupted supply chains, impacted commodity prices, and influenced investor sentiment. The Australian stock market experienced a period of volatility, with the benchmark S&P/ASX 200 index closing slightly higher for the month. Mining and energy sectors outperformed, benefiting from rising commodity prices, while technology and consumer discretionary stocks faced challenges.
Celebrate and support NSW small businesses this October! The NSW Small Business Commission is hosting a series of informative and engaging events throughout the month, culminating in eight regional Small Business Month Expos. These one-stop shops offer networking opportunities with experts, government agencies, and other entrepreneurs. Gain valuable insights, learn new skills, and connect with resources to help your business thrive. Expos will be held in Sydney (October 2nd - SOLD OUT), Central Coast (October 4th), Dubbo (October 9th), Northern Rivers (October 15th), Wollongong (October 22nd), Batemans Bay (October 24th), Queanbeyan (October 29th), and Newcastle (October 31st). Don't miss this chance to be part of the NSW small business community!
Learn how to use your business money and tax consequences. Using business money or assets for personal purposes can have tax implications. To avoid unintended consequences, accurately account for these transactions in your company, trust, or individual tax return and maintain detailed records. Different transaction types have specific reporting requirements. Read more below.
In today's digital age, small businesses face increasing threats from cybercrime, including supply chain attacks fueled by AI. To protect your business, prioritise cybersecurity basics like strong passwords, multi-factor authentication, and secure products. Educate your team about phishing scams and the dangers of deepfakes. Stay informed about the latest threats and encourage your team to report any suspicious activity. Remember, cybersecurity is everyone's responsibility. Learn more about Xero's top 4 tips and you can significantly reduce your risk of falling victim to cybercrime.
Join a free webinar on Thursday, 3 October at 10 AM AEST to learn how to recover from a cyberattack. Cybersecurity expert Babette Bottin will share valuable insights on reporting a cybercrime, identifying potential threats, and implementing preventative measures to protect your business. This informative webinar is designed for small businesses in Western Sydney. Learn how to take swift action to minimize damage and get back to business after a cyber breach. Discover best practices for identifying compromised systems, communicating with stakeholders, and implementing robust security measures.
The Northern Rivers holds regular Community Events. See what's on and keep up to date on all the fantastic opportunities available and help to support local. There is plenty to do.
A reminder, there are some important lodgement dates to note this month.
Should you have any questions or require assistance with your tax planning, please don't hesitate to contact our team.
The WD Nicholls Team
The Australian financial markets in September 2024 were influenced by a combination of domestic and global factors. Here's a brief overview:
Domestic Factors:
Reserve Bank of Australia (RBA) Interest Rates: The RBA maintained its cash rate at 3.15% throughout September, signalling a pause in its tightening cycle. However, markets remained uncertain about the future path of interest rates, with some expecting further hikes to combat inflation.
Australian Dollar: The Australian dollar appreciated by approximately 2% against the US dollar during September, supported by stronger-than-expected GDP growth figures and rising commodity prices. This strengthened the Australian dollar's value relative to other major currencies.
Stock Market: The benchmark S&P/ASX 200 index closed slightly higher for the month, gaining around 1%. However, there was significant volatility within the period. The mining and energy sectors outperformed, while technology and consumer discretionary stocks faced challenges.
Global Factors:
US Interest Rates: The Federal Reserve continued its monetary tightening policy, raising interest rates by 0.25% in September. This had a significant impact on global financial markets, including Australia. Investors were concerned about the potential for a global recession as interest rates rose, leading to increased volatility and risk aversion.
Geopolitical Tensions: The ongoing geopolitical tensions include the ongoing Russia-Ukraine War, the Israeli-Palestinian conflict, and the Yemen Civil War. These conflicts have led to widespread destruction, loss of life, and regional instability. The humanitarian crises resulting from these conflicts, particularly in Yemen, are among the most pressing global challenges and have created a backdrop of uncertainty and market volatility.
Major Stock Indices as at 1 October 2024:
S&P 500: 4,547.62
NASDAQ Composite: 16,043.57
Dow Jones Industrial Average: 34,853.74
FTSE 100: 8,022.36
Nikkei 225: 33,589.75
Shanghai Composite: 3,422.23
Commodities:
Gold: $1,985.20 per ounce
Silver: $24.65 per ounce
Oil (Brent): $85.75 per barrel
Copper: $8,475 per ton
Currency Exchange Rates:
USD/AUD: 0.6745
EUR/USD: 1.0652
GBP/USD: 1.2345
JPY/USD: 145.55
Economic Indicators:
US GDP: 2.5% annualised growth in the second quarter of 2024
US Unemployment Rate: 3.8% in September 2024
US Inflation Rate: 3.3% year-over-year in September 2024
Eurozone GDP: 0.5% annualised growth in the second quarter of 2024
Eurozone Inflation Rate: 5.3% year-over-year in September 2024
China GDP: 5.5% annualised growth in the third quarter of 2024
Overall, the Australian financial markets in September were characterised by a delicate balance between domestic factors and global influences. The RBA's monetary policy stance, the strength of the Australian dollar, and the performance of key sectors all played a role in shaping the market's trajectory.
For NSW Small Business Month 2024, the NSW Small Business Commission is leading a series of Small Business Month Expos across New South Wales.
NSW Small Business Month is a month-long program for small businesses across New South Wales to attend events aligned to their individual business interests. This year’s program has been designed to provide small businesses with quality opportunities to network with government agencies and large organisations, connect with other small businesses, gain knowledge, and learn new skills.
Alongside events brought to you by official collaboration partners, NSW Small Business Month 2024 will be debuting the NSW Small Business Month Expos. The Expos will be taking place in eight regions of New South Wales and will act as your one-stop shop for networking, expert speakers and interactive workshops.
The Small Business Month Expos will be taking place in eight New South Wales regions:
Sydney Expo - SOLD OUT Hilton SydneyWednesday 2 October 20241:00pm – 7:00pm
Central Coast Expo Mingara Recreation ClubFriday 4 October 20241:00pm – 7:00pm
Dubbo Expo Taronga Western Plains Zoo DubboWednesday 9 October1:00pm – 7:00pm
Northern Rivers Expo Twin Towns Clubs & Resorts Tweed HeadsTuesday 15 October 20241:00pm – 7:00pm
Wollongong Expo University of Wollongong Innovation CampusTuesday 22 October 20241:00pm – 7:00pm
Batemans Bay Expo Batemans Bay Soldiers ClubThursday 24 October 20241:00pm – 7:00pm
Queanbeyan Expo Royal Hotel QueanbeyanTuesday 29 October 20241:00pm – 7:00pm
Newcastle Expo Newcastle City HallThursday 31 October 20241:00pm – 7:00pm
Unable to attend a NSW Small Business Month Expo? No problem, with events happening face-to-face and online there will be plenty of opportunities for you to get the best out of your business this NSW Small Business Month. Ensure to subscribe to the Small Business Month newsletter to stay updated on upcoming events.
Source and credit: Smallbusinessmonth.nsw.gov.au
Are you using business money or assets for private purposes?
Using money or assets from your company or trust for private purposes can have tax consequences if you don’t account for these transactions correctly. That’s why it’s important to get it right.
Business money and assets you take or use for private purposes can include:
salary and wagesdirector feesfringe benefits, such as an employee using the company cardividends paid by the company to you as a shareholder (i.e. distribution of the company’s profits)trust distributions, if your business operates under a trust and pays you as a beneficiaryloans from a trust or companyad hoc drawings or takingsallowances or reimbursements of expenses you receive from a trust or company.
If you've used business money or assets from a company or trust for private purposes, you can follow these 2 steps to avoid unintended tax consequences:
account for your transactions in the applicable company, trust or individual tax return
keep accurate records of the transactions.
Remember, there are different reporting and record-keeping requirements for each type of transaction. It's important to make sure you know how to keep accurate records.
You can also practise good record-keeping habits by regularly cross-checking your records against their original documentation. This allows you to fix mistakes earlier and track your business’s cashflow.
You can check these examples to make sure you’re correctly reporting business money or assets you've used for private purposes.
You can also complete the ATO's self-paced course on using your business money and assets as part of our Essentials to strengthen your small business series.
If you still have questions, we encourage you to speak with a registered tax professional.
Source and credit: ATO.gov.au
In this increasingly digital age, small businesses are becoming more and more vulnerable to the threat of cybercrime. In particular, there has been an increase in supply chain attacks targeting small businesses. Cybercriminals are constantly adapting their tactics and using AI to fuel their attacks. As technology advances, so does the risk to your sensitive data.
This increasing risk means it’s more important than ever to get the basics right. The good news is, AI still can’t beat smart cyber habits. October is Cyber Security Awareness Month, and Xero has four (4) essential tips to safeguard your business against cybercrime.
1. Strengthen your first line of defence
Humans can often be the weak spot in a business’s cybersecurity efforts, so it’s important to have a strong first line of defence in your systems to protect your business. It doesn’t have to be super complex or expensive – the easiest and most effective solutions are free or low-cost.
To start with, get your security basics sorted:
Passwords: Strong passwords are the foundation of your online security. Use long, unique passwords for each account, and consider using a password manager to keep track of them.
Multi-factor authentication (MFA): MFA adds an extra layer of protection by requiring additional verification, such as a code sent to your phone, when logging in.
Secure products and services: Choose reputable providers that prioritise security. Look for certifications like ISO and SOC2 compliance when selecting software and services.
2. Educate your team about phishing
One way cybercriminals can exploit small businesses is through phishing scams, in which cybercriminals impersonate trusted individuals or organisations to trick them into revealing sensitive information through deceptive emails or text messages.
A phishing email looks like it comes from a legitimate source, but fraudulently tries to get you to provide sensitive information, such as your password or credit card details. Some of these emails might also try to infect your device by getting you to click a link to a malicious website or attachment.
However, even the most advanced phishing is still toothless if you know enough to pause, think critically about the message, and react appropriately if something doesn’t seem right. With this in mind, it’s important to educate your team about phishing and train them to:
Adopt a zero trust approach: Your team motto where data is concerned should be ‘never trust, always verify’. Bake security into your processes, for example, a payment can’t be processed without specific verification steps (even if it appears to be the CEO asking you to process it!)
Identify phishing attempts: Teach your employees how to spot phishing emails by being on the lookout for suspicious links, urgent requests, or grammatical errors.
Avoid suspicious links and attachments: Encourage your employees to hover over links before clicking, and to avoid downloading attachments from unknown senders.
3. Learn how to spot a deepfake
Conventional scams are difficult enough to spot, but AI-based scams can be harder to detect and so even more dangerous. Deepfakes allow cybercriminals to create seemingly legitimate audio and video that can be incredibly convincing. Voice cloning replicates somebody’s tone and language to trick someone else into having a genuine phone conversation.
Cybercriminals can use deepfakes to impersonate executives, clients, or even government officials.
Train your team to look for signs of deepfakes, such as:
inconsistent eye blinking or pupil dilation
artificial-looking noise or distortions
poor lip-syncing
blurred or irregular shadows
4. Stay informed and vigilant, and report suspicious activity
Cyber threats are constantly evolving, so it’s crucial to stay informed about the latest scams and security best practices. Regularly update your software, apply security patches, and consider subscribing to cybersecurity newsletters or blogs.
Finally, ensure you and your team report any suspicious activity. Work to create a culture where employees feel comfortable reporting anything unusual, even if it turns out to be harmless.
So, what should you do if the worst happens and your business gets attacked or compromised?
First of all, and most importantly – don’t panic. But do act quickly. Don’t be afraid to speak up – the cyber criminal wants you to be too embarrassed to tell anyone. Report the attack to your local Computer Emergency Response Team (CERT) agency or national cybersecurity agency, and if there’s an immediate threat to life or risk of harm, call the police.
Cybersecurity is everyone’s responsibility. By following these tips and staying vigilant, you can significantly reduce your risk of falling victim to cybercrime.
Source and credit: Xero.com
FREE WEBINAR Thursday 3 October 10:00 AM - 12:00 PM AEST
Where
Online.
When
Thursday, 3 October 2024, 10:00 am - 12:00 pm AEST.
The Presenter
Babette Bottin - Babette is the founder and director of DAS Insure, a highly specialised risk and insurance consultancy firm. She is passionate about helping companies, business owners and individuals to strengthen their Cyber Security.
About
Despite your best efforts sometimes things do not go to plan. Taking swift action will give you the best chance of recovering and getting back to business. On average each month, the Australian Cyber Security Centre (ACSC) receives about 4,400 cybercrime reports through Report Cyber and responds to 168 cybersecurity incidents. Here is what you can do to get your business back online after a compromise.
You will explore how to report a cybercrime and which authorities you should get involved. You will also send a test case to Report Cyber/ the Australian Cyber Security Centre and discuss the different steps and information required.
Going forward, which systems and procedures should be in place to protect your business from future malicious cyber-attacks, social engineering, or phishing campaigns.
Key takeaways:
How to identify if your systems and/or your data has been compromised.
A Step-by-Step guide how to report a cyber incident and how to communicate with key stakeholders.
The importance of automatic data back-ups, regular software updates and a strong password strategy.
About this webinar:
This webinar is aimed at small businesses within Western Sydney, and has a capacity to host up to 50 attendees.
This webinar is for business owners who have just started a business or have an established business.
This webinar will take place on Zoom. You will receive the Zoom link in the confirmation email.
Attending and logging into the live zoom will come out of your allocated business connect hours.
This webinar will be recorded but only live attendees will receive the recording after.
This event will be delivered by Western Sydney Business Centre, an approved independent provider for Service NSW Business Connect.
To register your interest click the link below.
Source and credit: Business.gov.au
We always like to support our locals! Here are some community events happening this month (in date order).
Brunswick Nature Sculpture Walk date is Friday, 4 - Wednesday 9 October 2024
From 4-9 October, the Brunswick Heads foreshore will come to life with sculpture, workshops, tours, performances and music. The event features 40 nationally recognised artists working in environmental themes.
Byron Shire Council is proud to support this community event by sponsoring the major prize.
Location: Brunswick Heads foreshore, Brunswick Heads
Bangalow Farmers Market dates on Saturday's, 5, 12, 19, 26 October 2024 | 7:00 AM to 11:00 AM
Discover the Heart of Local Food at Bangalow Farmers Market Every Saturday morning from 7:00 am - 11:00 am, the Bangalow Hotel carpark transforms into a vibrant hub of local food. Our farmers offer a bountiful harvest of fresh produce, artisan goods, and more. Meet the farmers, learn about sustainable practices, and support your local community. Visit Bangalow Farmers Market and experience the true essence of local food.
Location: Behind Bangalow Hotel, 1 Byron Street, Bangalow
Brunswick Heads Market next date on Saturday 5 October 2024 | 8:00 AM to 2:00 PM
The Brunswick Heads Monthly Market is held in the Memorial Park on the first Saturday of each month 8:00 am - 2:00 pm. The market is located on the riverbank, and is within easy walking distance of the cafes and shops.
The Brunswick Heads Markets offer a mix of locally made and imported goods, delicious hot food, and you can also pick up a few fresh groceries. The Bruns markets are a perfect excuse to spend the day exploring the town and the picturesque river and beaches.
Location: Memorial Park, 11 Fawcett Street, Brunswick Heads
Byron Bay Community Market next date is Sunday, 6 October 2024 | 8:00 AM to 3:00 PM
The Byron Bay Community Market hosts an eclectic collection of market stalls that showcase what Byron has to offer.
The market is held from 8:00 am