Mental health tips for small business owners

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Small business owners are constantly under stress and pressure, which is why it is important they look after their mental health.

The following tips will help you manage your mental health as a small business owner.

Have a reliable support network
Friends and family are vital to anyone’s functioning; however the unique challenges small business owners face means they may benefit from connecting with like-minded thinkers. Consider joining a small business owners groups on Facebook or LinkedIn. These networks are helpful as the members can relate to your problems on a deeper level. Both business groups and your nearest and dearest can provide a sympathetic ear, realistic solutions to your problems and tell you to get help.

Allocate personal time
When you are running a small business, it can feel like your life is consumed by it. An unhealthy work-life balance will harm your mental health and productivity. Schedule time off from work. Taking up a hobby or joining a sports team may be a great way to have structured breaks from your business.

Know the warning signs
Knowledge is key to prevention. Get educated on mental health and know the warning signs and symptoms. If you catch your problem early, you can avoid jeopardising your health and your business by taking a hiatus, relinquishing some responsibility or seeking help.

ATO warns of illegal early super release

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The ATO has issued a warning to the public regarding illegal early release of super schemes, which are subject to severe penalties.

There are strict rules around when you can access your super so your current decisions do not jeopardise your quality of life in retirement. The ATO has reminded the public you may only access your super early if you have experienced severe financial hardship or you have reached the preservation age and have stopped working.

How these schemes work
The promoters of these schemes:

  • Encourage you to transfer or rollover your super from your existing super fund to an SMSF to access your super before you are legally entitled to
  • Target people under financial pressure or those who do not understand super laws
  • Claim you can access your super and put the money towards anything you want which is not true
  • Charge high fees and commissions, presenting the risk of losing some or all of your super to them
  • May request your identification documents which can result in identity theft

Penalties:
Penalties apply to promoters and individuals who illegally access their super early. If you illegally obtain your super early, it is included in your assessable income even if you return the super to the fund later. If you are an SMSF trustee, you may be fined up to $420,000 and liable for jail terms of up to five years. Civil and criminal penalties apply to promoters.

ATO update: Tax deduction rules on travel to rental properties

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The ATO has enforced strict guidelines on tax deductions for rental property owner’s travel expenses.

As a rental property owner you are not able to claim deductions for travel expenses relating to inspecting, maintaining or collecting rent. If you have already claimed a tax deduction for the cost of travel to and from your property in your 2018 return, you will need to request an amendment. The law change came into effect on 1 July 2017 and affects tax returns from 2017-18 onwards.

Exclusions
You may claim these travel expenses on your tax return if you are carrying on a rental property business or are an excluded entity.

An excluded entity is a:

  • Corporate tax entity
  • Superannuation plan that is not an SMSF
  • Public unit trust
  • Managed investment trust
  • A unit trust or a partnership, all of the members of which are entities of a type listed above