Issue 129 - June 2019
Ensuring customer satisfaction is key to customer retention and business growth. Businesses that provide quality service grow twice as fast and pick up market share three times quicker than their competitors.
Most businesses focus their growth strategy on attracting new customers, yet a dual approach should be taken to also focus efforts on customer satisfaction and retention. On average it costs six times as much to gain a new customer as it does to keep an old one!
Customer satisfaction is vital not only for attracting new customers, but also to ensure that dissatisfied customers do not damage your brand. Research shows that one dissatisfied customer will tell 11 others who will then tell 5 others. Conversely, when customers receive good service, they will tell on average 9 to 12 people about it.
Obtaining feedback on your customer service is important to your business' client retention rate, only 4% of clients who are dissatisfied will complain, making it hard to know when the customers are dissatisfied. Working closely with those customers who have concerns about the product or service provided can be mutually beneficial as 83% of customers who had problems but had them solved came back and bought those products and services again.
Consumers are also willing to pay a premium of between 10% to 80% for the same product if they have received better customer service.
Strategies should be put in place to collect and monitor information on customer satisfaction. Investing time and resources to improve customer service and satisfaction is worth your while, as the real cost of a dissatisfied customer is much higher than the lost sale.
|The data in the above article was sourced from the Australian Institute of Management, gathered from various surveys and research throughout Australia and New Zealand.
Australian Taxation Office-Emails Regarding Online Statements
The Australian Taxation Office (ATO) has recently made changes to their activity statement delivery system. This means for clients who do not receive paper activity statements, an email is generated advising they are available once each period has been set up by the ATO.
If Brentnalls SA prepare and lodge your activity statements and you receive one of these emails please disregard.
If you prepare and lodge your own activity statements, please ensure you action these emails by the due date.
Should you have any queries regarding this please contact your Brentnalls SA team member.
First Home Super Saver Scheme (FHSSS)
The FHSSS was introduced in the Federal Budget 2017-18 to reduce pressure on housing affordability for first home buyers.
The scheme allows first home buyers to save money within a superannuation fund, which can then be withdrawn along with earnings on the deposit, provided it is used to pay for the purchase or construction of a house.
To be eligible, individuals must;
- Be 18 years old or older when the amount is released
- Have never owned property in Australia, including an investment property, vacant land, commercial property, a lease of land in Australia, or a company title interest in land in Australia
- Have not previously requested a release of funds under the FHSSS
Individuals must also;
- Live in the premises they are buying, or intend to as soon as possible, as well as
- Intend to live in the property for at least six months of the first 12 months of ownership, after it is practical to move in.
Voluntary contributions include salary sacrifice, personal deductible and non-concessional contributions up to a yearly limit of $15,000 per person. These are counted towards concessional and non-concessional contribution caps.
There is a $30,000 lifetime limit per individual for contributions under the FHSSS.
The ATO needs to approve the release of funds prior to the individuals signing a contract to construct or buy a home. The release of funds takes about 25 business days. The withdrawal amount is the initial amount plus deemed earnings (calculated using the 90 day Bank Bill rate plus 3%), and is taxed at the individual's marginal tax rate less a 30% tax offset.
The ATO also monitors use of the funds after release to ensure it was used for the intended purpose.
If a contract to purchase or construct a home is not signed within 12 months from the release, then the following options are available:
- Apply for an extension for a maximum of 12 more months
- Recontribute the amounts (including deemed earnings less tax withheld) to your super fund
- Keep the released amount and pay FHSS tax, equal to 20% of the assessable released amounts
See below for a comparison of saving in an individual's name compared to using salary sacrifice amounts to enter the FHSSS.
HELP Repayment Levels for 2019/2020
The 2019/20 financial year income levels and repayment rates for HELP, VSL, SFSS, SSL, ABSTUDY SSL and TSL are shown in the below table.
|*HRI = Taxable income plus any total net investment loss (which includes net rental losses),
total reportable fringe benefit amounts, reportable superannuation contributions and exempt foreign employment income
Viewing your accounts online with BGL Simple Fund 360
Brentnalls SA uses cloud-based software Simple Fund 360 for the compliance and administration of Self Managed Superannuation Funds. Members of a fund can view reports and information online through this software with a log in provided by us.
Simple Fund 360 makes it easy to track share performance using the Investment Dashboards. Market values are updated daily for Australian listed shares (ASX), New York Stock Exchange, NASDAQ and some other overseas stock markets.
The software relies on automatic data feeds from banks and brokers, as well as manual processing completed by us. The team at Brentnalls SA will periodically update the transactions that are not automatically allocated to the correct accounts.
If you are interested in online access to your super fund dashboard please contact us to set up and give you a demonstration.
On 1 July 2018, the Australian Tax Office (ATO) introduced a new process to streamline the way employers report payroll information. Single Touch Payroll (STP) currently provides a reporting framework for larger employers with 20 or more employees to deliver payroll and superannuation information to the ATO earlier than that currently applies under the PAYG withholding ordinary provisions. This means an employer paying weekly wages will report gross wages, tax withheld and superannuation contributions to the ATO every week when the employee is paid.
New legislation extends the STP reporting obligations to smaller employers who have 19 or less employees. This commences on 1 July 2019.
Many employers' current payroll software solution have now been updated for the new STP reporting requirements including MYOB, Xero and QuickBooks. However, for employers without a current STP compliant software solution, there are various stand-along options available to you.
Below are three stand-alone software options available for STP reporting for employers:
XERO Payroll Only
Xero's Payroll Only plan offers complete payroll for one to four employees. The web-based solution allows you to submit STP reporting information to the ATO. The system also automatically calculates pay and tax rates and leave entitlements. Employees can submit timesheets, apply for leave and view their payslips via the XeroMe mobile app.
Cost - $10 per month.
MYOB Payroll Essentials
MYOB's Payroll Essentials web-based solution calculates payments, tax and super payments and is fully compliant with STP reporting requirements for employers with one to four employees. Employees are able to submit their own hours and access their payslips via MYOB YourPay.
Cost - $10 per month.
Reckon offers two stand-alone options for STP reporting. The first option is a Single Touch Payroll Mobile App which allows you to send STP reports to the ATO each pay run. This app allows for reporting for one to four employees. However, the system does not allow you to pay employees, calculate super or track leave. This app can be downloaded for free.
The second option available from Reckon is Reckon One Payroll. This system allows employers to manage wages, leave, super and STP reporting for an unlimited number of employees.
Cost - $5 per month
All systems listed above are ATO certified.
If you would like further information about STP reporting options, please speak to your Brentnalls SA team member.
We congratulate Ben Wilson from Cirqa on being named one of the InDaily 40 under 40.
We recently celebrated Ellie Crouch's 30 year work anniversary. Thank you to Ellie for her contribution in making Brentnalls SA the success it is today.
We welcome Penelope Grafyadel who will be joining us as a junior administrator.
Brentnalls SA supported The Mother's Day Classic in May, an annual fun run and walk raising funds and awareness for breast cancer research.
Last month we raised over $630.00 to help beat cancer by hosting Brentnalls SA's Biggest Morning Tea.
I started working as a Team Administrator/Personal Assistant at Brentnalls SA in April 2017. Everyone here is always so supportive and has a laugh. It's been a breath of fresh air working in such a great environment where I don't go to sleep on a Sunday night dreading having to get up the next morning.
Outside of work, I have a passion for all things food and travel, although travel has been put on the back burner for a bit until I've saved up some more after buying a house with my partner earlier this year. We're aiming to make a trip to Japan in 2021, and in the meantime hopefully make a few interstate trips.
I still like to make time for good food, whether it's trying out recipes from Gordon Ramsay or going to a new restaurant. I'm especially a fan of a good steak and will go to lengths to get one – the main purpose of my last holiday to Sydney was to try steak at a specific restaurant, and I'm headed down to Millicent this month to try steak at Mayura Station – a station down south that breeds Wagyu cattle and has an on-farm tasting room.