Update 1 December
In this month's market update, after the October sell-off, markets rebounded, especially in Australia, with the second-largest rally of 3.06% since January. Despite initial optimism about economic resilience, November brought a shift in sentiment, anticipating a downturn next year. Markets are pricing in a 77% chance of a U.S. interest rate reduction in mid-2024.
Reflecting on the past 11 months in Australia, a robust start until August (up 8%) gave way to concerns about sustained positive economic data, compounded by the impact of the GLP-1 wonder drug on medical companies. Globally, markets outperformed due to a lower 2022 base, a tech rally in May, a weaker Australian dollar, and international economies being further along in the interest rate cycle.
As the holiday season approaches, it's essential to be mindful of potential fringe benefits tax (FBT) implications for your team celebrations. Before confirming details like restaurant reservations, evaluate whether the benefits provided fall under entertainment-related perks subject to FBT. Consider key factors such as expenditure per employee, timing and venue of the celebration, attendees (employees, partners, clients, or suppliers), and the nature and value of gifts provided. Keep meticulous records, including calculations of the taxable value of these benefits. Understanding FBT in advance is crucial to prevent unexpected liabilities. Stay proactive for a smooth and compliant holiday celebration for both you and your team.
The Australian Taxation Office (ATO) is hosting a complimentary webinar designed to improve your knowledge of cash flow management.
Cash flow is the lifeblood of small business. Come along to this 1-hour online session to learn critical knowledge and cash flow management skills. Find out how to identify issues and use a range of tips to help maximise your cash flow. This webinar is scheduled for Tuesday, 12 December from 11:30 AM to 12:30 PM (AEDT).
Did you know, if your income involves property sales, earning $75,000 or more in a year mandates GST registration, even for a single sale. Registration triggers potential GST at settlement, particularly for new residential premises or potential residential land transactions. It's crucial to notify the buyer before settlement, specifying the withholding amount and deadline. The buyer must deduct the GST from the contract price and remit it during settlement. When reporting property sales, use label G1 and indicate GST on label 1A in your Business Activity Statement (BAS) during the settlement period. The buyer's GST payment creates a credit in your GST property credits account, transferring to your BAS account and offsetting any GST liabilities after submission. Adhering to these procedures ensures compliance and a streamlined property transaction process.
The Northern Rivers holds regular Community Events. There is something extra special this season. 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 and Christmas Office Closure dates.
The WD Nicholls Team
After the October sell-off which we spoke about last month, there has been a reprieve in markets with the Australian market producing the second biggest rally (up 3.06%) since January this year (up 6.30%). In October, the view was our economy was going to be resilient and now in November markets are expecting the economy to finally turn lower next year. This just shows how indecisive markets can be at times. Reading an article today, which indicated markets are currently pricing in a 77 percent chance of an interest rate reduction in the US in the middle of 2024.
As it is near the end of 2023, where did the time go?, let's have a look back at the last 11 months:
In Australia, the year was off to a great start up to August (^ 8%). Why? Well, markets were resetting from the negative views of 2022 with higher interest rates and a deteriorating global economy. Unfortunately, from August, markets were forming a view that the continual positive economic data had the potential to stay and therefore became increasingly worried about Reserve Banks globally not only increasing rates further to attempt to stifle economies, but also holding rates higher for longer. In Australia, we were also impacted by the GLP- 1 (Glucagon like peptide 1) wonder Drug. You may have read in the last 3 months that this Type 2 Diabetes medication has been touted as a weight loss drug and a number of the medical companies (CSL and Resmed) have been sold off during August to October on the view that lower obesity levels will impact their earnings. This is still very early days, but we are all keeping an eye on what happens in this space.
Globally, markets have performed very well compared to our local market. Some of these reasons are:
International markets performed not as well in 2022 (off a lower base)
In May, Artificial Intelligence created a technology stocks rally sending the Nasdaq up 18% from May!
The Australian dollar has been weaker (provides additional return)
International economies are further through the interest rate cycle than ourselves
This highlights the importance of being diversified across all asset classes. You never know what can happen, and with Australians usually holding most of their assets on the Australian Share Market, you can see what they are missing out on.
The returns as of the end of November are:
As the holiday season approaches, if you're planning to celebrate with your team, it's crucial to consider the potential implications of fringe benefits tax (FBT) on the benefits you offer.
Before finalising arrangements such as restaurant reservations or event bookings, take the time to assess whether the benefits provided to your employees fall under the category of entertainment-related perks and are therefore subject to FBT.
Key factors influencing this determination include:
Expenditure per Employee: The amount spent on each individual employee.
Timing and Venue: When and where the celebration takes place.
Attendees: Consider who will be present—whether it's limited to employees or includes partners, clients, or suppliers.
Gifts: Evaluate the nature and value of any gifts provided.
Maintaining detailed records of the entertainment-related benefits offered is crucial. This includes documenting how you calculated the taxable value of these benefits. Understanding the workings of FBT beforehand is essential to avoid unexpected FBT liabilities that may arise if you provide perks and extras without proper consideration.
Stay proactive to ensure a smooth and compliant holiday celebration for both you and your team.
For more information on FBT visit the link below.
Source and credit: ATO.gov.au
The ATO is running a FREE online webinar to improve your knowledge of cash flow management.
The date of this webinar is Tuesday, 12 December 11:30 AM - 12:30 PM (AEDT).
Cash flow is the lifeblood of small business. Come along to this 1-hour online session to learn critical knowledge and cash flow management skills. Find out how to identify issues and use a range of tips to help maximise your cash flow.
This 1-hour session will show you how to improve your cash flow management by:
mapping cash flowing in and out of your business
analysing cash flow to head off any problems
tracking and monitoring cash flow
using the 7 tips to maximise cash flow.
Getting it right is important, so come along, ask questions, and give your business the best chance of success.
Source and credit: ATO.gov.au
If your income-generating activities involve property sales, and you earn $75,000 or more in a year from such transactions, even if it's a one-time sale, it's mandatory to register for GST.
Upon registration, GST at settlement may be applicable when selling new residential premises or potential residential land.
If GST at settlement is relevant to your property sale, it is imperative to inform the buyer prior to settlement, specifying the applicable amount to withhold and the deadline for withholding.
The buyer is then required to deduct the GST amount from the contract price and remit it to the relevant authorities during settlement.
When reporting your property sales, ensure to record them under label G1, and indicate the GST on these sales at label 1A on your Business Activity Statement (BAS) during the settlement period.
A credit for the GST amount paid by the buyer will be reflected in your GST property credits account. This credit will subsequently transfer to your BAS account, offsetting against any GST liabilities after the BAS has been submitted.
Stay compliant by adhering to these procedures for a smooth property transaction process.
Source and credit: ATO.gov.au
We always like to support our locals! Here are some community events happening this month (in date order).
Byron Bay Community Market next date is Sunday, 3 December 2023 | 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 to 3:00 pm on the 1st Sunday of every month.
Road closures and traffic changes on market day
Jonson Street is closed to traffic at the corner of Byron and Marvel Streets from 5am to 5pm.
Traffic is diverted via Fletcher Street.
The Lawson Street South carpark is closed from 5am to 5pm.
There may be traffic delays are on Lawson Street between the Shirley Street and Jonson Street roundabouts between 6am to 8am and 3pm to 5.30pm.
The railway carpark is open under traffic control via the laneway on Jonson Street.
Traffic controllers will be in place on market day.
Location: Byron Bay CBD, Railway Park, Jonson Street, Byron Bay
Byron Bay Farmers Market next date is Thursday, 7 December 2023 | 7:00 AM to 11:00 AM
The Byron Bay Farmers Market was started in 2002 by a handful of local farmers who wanted to be able to sell their produce directly to the public, in the process reducing food miles and ensuring their small farms remained viable
Over the past 20 years, Byron Farmers Market has grown from half a dozen stalls to over 70 stalls – all offering the freshest locally grown produce every Thursday morning at Butler Street Reserve in Byron Bay.
Farmers supply everything from seasonal fruit and vegetables, pasture-raised meat and eggs, artisan cheese and bread, seafood, pasta, rice, nuts, honey, flowers and more!
The market is held from 7:00 am to 11:00 am every Thursday.
Location: Butler Street Reserve, Butler Street, Byron Bay.
EmergencyRedi Workshop next date is Friday, 8 December 2023 | 10:00 AM to 12:00 PM
You are invited to participate in an EmergencyRedi workshop.
This workshop will:
Give you an introduction to preparedness.
Allow you to begin your own emergency RediPlan.
Provide you with the knowledge and tools to continue preparing yourself and the people most important to you for emergencies.
Contact: Naomi 0409 796 682 at Red Cross EmergencyRedi
Location: Cnr Gordan and Tincogan street, Mullumbimby CWA Hall
Council planning meeting next date is Thursday, 7 December 2023 | 11:00 AM to 6:00 PM
Council meetings are held in the Chambers.
Go to How to join the meeting for ways you can participate in the meeting.
A livestream is available to watch online.
Questions about the meeting?
Phone: 02 6626 7051
Email: councillorsupport@byron.nsw.gov.au
Location: Council Administration Building, 70 Station Street, Mullumbimby
Council ordinary meeting next date is Thursday, 14 December 2023 | 9:00 AM to 6:00 PM
Council meetings are held in the Chambers.
Go to How to join the meeting for ways you can participate in the meeting.
A livestream is available to watch online.
Questions about the meeting?
Phone: 02 6626 7051
Email: councillorsupport@byron.nsw.gov.au
Location: Council Administration Building, 70 Station Street, Mullumbimby
Mullumbimby Community Market next date is Saturday, 16 December 2023 | 8:00 AM to 2:00 PM
The Mullumbimby Community Market is held on the third Saturday of each month from 8:00 am to 2:00 pm.
Location: Corner of Stuarts and Myocum Streets, Mullumbimby
Christmas Cheer in the Bay date is Saturday, 23 December 2023 | 5:30 PM to 8:00 PM
Free family-friendly Christmas event in Byron Bay CBD!
Come along for a night of Christmas fun and celebration in Byron.
Some cheery locals known as “The Christmas Community Initiative” have been plotting and planning to make this a memorable night for all.
Enjoy an awesome line-up of local performers, carol singers, fun for the kids, and more!!
Save the date and come join the fun!
Location: Byron Visitors Centre, Railway Park, 80 Jonson Street, Byron Bay
Byron Bay Soul Street New Years Eve date is Sunday, 31 December 2023 from 4:00 PM
Soul Street New Year's Eve is back in 2023!
This is a free, family-friendly, community New Year's Eve event in central Byron Bay.
There will be two main areas of entertainment in town:
Jonson Street - live music on the sound stage, street dining and roving performers and children's activities from 4pm to 9pm.
Dening Park - lighting installations and entertainment on the main stage 6pm to 12.30am.
Soul Street is a zero-waste event. BYO cups, plates, cutlery etc.
The Byron Bay town centre is an alcohol-free zone. No alcohol will be allowed on the streets. On-the-spot fines apply.
Traffic and parking changes
Jonson Street will be closed to traffic, as well as some surrounding streets and carparks.
Roads will be closed from 6am on 31 December. This includes:
Main Beach Carpark
Jonson Street between Byron Street and Lawson Street
Lawson Street Carpark
Detours will be in place and the town bypass will be open. All roads will reopen by 8:00 AM on 1 January 2024.
Parking and Taxis
Taxi Rank - Jonson Street near Marvell Street intersection.
Pay Parking - in Byron Bay town centre from 9:00 AM to 6:00 PM.
Location: Jonson Street and Dening Park, Dening Park, Byron Bay
If you want to know more about what is going on in your local community, click the link below.
Source and credit: Byron.nsw.gov.au
Our office will be closed for Christmas from;
5.00 pm Thursday 21st December 2023 and
reopening 8.30 am Monday 8th January 2024 (NSW time)
If you wish to arrange a telephone appointment or zoom meeting with one of our team please contact our office either by telephone or email.
Key lodgment and payment dates for business
1 December Income tax
Payment due date for companies that were taxable medium to large clients in the immediate prior year
Payment due date for companies that were required to lodge by 31 October
Lodgment date for non-full assessment company entities – payment date is as per the notice of assessment.
21 December Activity statements
November monthly activity statements – final date for lodgment and payment.