$10 billion reinsurance scheme

Flor- Hanly - Monday, May 17, 2021

Small business ombudsman backs federal government’s $10 billion natural disaster reinsurance pool

The $10 billion reinsurance pool will cover cyclone and related flood damage in northern Australia from mid-2022.

Small Business Ombudsman Bruce Billson said the federal government’s new $10 billion reinsurance scheme will make insurance premiums more affordable for businesses in northern Australia.

The fund will act as a government guarantee to help reduce insurance premiums for small businesses, households and strata by over $1.5 billion over 10 years, and is expected to cover 500,000 eligible property insurance policies.

Billson said the federal government’s proposal “is an important step forward in addressing what is a complex area”.

“It responds well to natural disaster considerations in northern Australia, but there is a need to keep working on insurance issues because it remains too hard to get and too expensive for too many small businesses,” he says.

In practice, the fund will help flatten out the peaks in insurance claims that arise after a natural disaster event, and bring greater consistency to the price of premiums.

“It acts as insurance for the insurers and therefore gives them some comfort and confidence about the products that they offer and takes pressure off premiums,” Billson said.

Gap in the insurance market

A government-funded natural disaster reinsurance pool is one of a range of recommendations that came out of the Australian Small Business and Family Enterprise Ombudsman’s (ABFSEO) 2020 insurance inquiry.

The report found that small businesses find it difficult to access insurance or access affordable insurance as insurers become more risk-averse due to a rise in extreme weather events.

To ease the cost of premiums, the report recommended an expansion of the Australian Reinsurance Pool Corporation (ARPC) to provide reinsurance for all natural disasters for commercial property insurance.

Expanding that pool to also cover natural disasters would help fill the gap in the insurance market, which has been widening as insurers become more risk-averse to the impacts of climate change, the report found.

The Prime Minister said the plan was drafted in collaboration with local MPs, senators and residents in northern Australia.

“Homeowners and businesses have been faced with crippling insurance costs, and in some cases, can’t get insurance at all,” Mr Morrison said.

“Our plan will give more Australians in cyclone-prone areas access to affordable insurance.”

The reinsurance pool will cover cyclone and flood-related damage in northern Australia from 1 July 1 2022.

Article first published by SmartCompany on 5 May 2021 at


Small business grants update May 2021

Flor- Hanly - Monday, May 10, 2021

Grants for QLD farms and businesses

QLD’s Business Basics grant program will offer grant funding to new and emerging businesses, Business Boost will support established small businesses, and the Business Growth Fund will help evolving and fast-growing small and medium-sized businesses.

Open now

The $50,000 Business Growth Fund grants will allow businesses to buy highly specialised equipment to seize and accelerate growth opportunities.

Closes when funds are exhausted

Primary producers across Queensland hit by recent floods and cyclones can now access Extraordinary Disaster Assistance Grants of up to $75,000 to support their recovery journey with Commonwealth-State Disaster Recovery Funding Arrangements (DRFA).

Guidelines and information factsheet available at


The Business Basics grants of up to $5,000 each support new and emerging businesses to increase core capabilities and adopt current best practice for website development and upgrades, strategic marketing, training and coaching, advisory services and planning for business continuity and succession.

Opens 31 May 2021

The Business Boost grants of up to $15,000 will help small businesses to improve their efficiency and productivity through organisational development and upgrades through automated software and CRM systems.

Opens July 2021

To review grant notes, application requirements and status, please visit Business Queensland or call our team in Mackay on 07 4963 4800.


Financial literacy, financial success

Flor- Hanly - Tuesday, May 04, 2021

Knowing your financials is vital for success in 2021

The uncertainty of last year is in the rearview, but a bumpy road still lies ahead.

More than ever, businesses need to understand and manage their finances to navigate the new terrain of 2021, not just to survive but thrive. 

2020 lost some great companies, and the years to come will take more. So how can you begin protecting yourself and your investments when the landscape is still shifting below your feet?

Below are some essential tips to consider:

Know your tolerance for financial risk 

According to’s Local Economic Impact Report, for more than 97,966 businesses, 2020 caught them off guard, causing them to close their doors permanently. Though traffic is picking up for some, there is no promise that revenue will get better for all businesses. 

Are you ready to put it all on the line? If you are, there is success out there. If you’re not, you may need to consider a strategic pivot seriously.

OK, now that we have gotten that out of the way. Let’s move on to some positive action steps.

Build a budget

We know we can not predict what lies ahead. However, we can learn from the past, make educated assumptions, and create a budget for the possibility of a tumultuous 2021.

To help plan a tentative budget, here are a few questions you should ask:

  • What was revenue like in January and February of 2020?
  • How did it compare to profits in April of 2020?
  • What do you experience as the pandemic restrictions ease/tighten?
  • Do seasonal changes affect your revenue?
  • Do you have revenue streams that continue to grow?
  • Have you increased or decreased expenses during the pandemic?

No one knows what’s in store for business owners in 2021, but we do know that to survive 2021, business owners need to understand the financial basics for their business. Utilising powerful apps to build a budget will help you do just that. 

Know your goals

For some businesses, making goals for 2021 might seem elusive, especially coming out of a year like 2020. However, by taking the time to define your goals, you will find the grit you need to stay in the fight. 

Success isn’t by chance. Simply dreaming and hoping for growth in 2021 will not cut it. 

Tips to setting achievable goals:

  • It’s still OK to dream big
  • Write your goals down
  • Set achievable milestones 
  • Share your goals
  • Work on your goals daily
  • Be SMART (Specific, Measurable, Achievable, Relevant, Time-bound)

Actively analyse finances

By consistently running a balance sheet and updating your financial statements, you’ll always have your thumb on the pulse of your business. There are excellent apps available on the Xero App Marketplace to do just this. If you are uncomfortable building various reports, get help from a trusted advisor like an accountant or bookkeeper who will help you understand your economic landscape.

Understand your cash flow

Businesses are showing a steady improvement in their spending outlook as 2021 gets underway. As a business owner, you need to know where to spend your money and where to pull it back. 

Though a business can look successful on paper, businesses fail at an alarming rate due to cash flow. It is essential to shorten the days between spend and collection from sales. The fewer days between the two means more cash on hand and less you will need to borrow. Developing a cash flow projection will ensure you have the money to pay vendors, staff, lenders, and yourself. Here are some apps that can help.

Separate business and personal

It’s more important to separate business from personal finances in 2021. Making the separation will ensure you treat your business like an independent entity while protecting your financial circumstances with a ‘corporate veil’. This type of protection makes the company accountable for any debts or legal responsibilities rather than holding the owner personally accountable.

Save for emergencies

For businesses that have made it through the COVID-19 pandemic, this might be hard. But you got this. Understand you need to count every dollar and make every dollar count. 

Here are a few cost-saving ideas to help free up money to save: 

  • Go paperless
  • Don’t pay for landlines
  • Stick to your budget
  • Time management is vital
  • Cut production costs
  • Hire freelancers
  • Travel less
  • Create partnerships for co-marketing
  • Buy from the ‘little guy’ – for example, your local suppliers and other small businesses

Listen to your customers

For lots of companies, during economic downturns, they stop serving their current customers and start desperately looking for new customers. A better approach is to produce new products and services for customers who already know and love you. Your customers will let you know how to stay in business. Consider taking the necessary steps to listen to your customers by giving them a way to connect with you 24/7. Don’t stop there. Listen to them with the intent to act. Your customers are letting you know how you can serve them better. 

Remember, other companies are looking for new customers, and if you are not tending to yours, your competition will. 

Focus on the future, not the past

2020 was devastating for the world in many regards, but there is still a bright future ahead. We must learn from our past, but we mustn’t stay in our past. The future is in our imagination, so why not imagine a future of possibilities. When you set your goals, budget, or strategies, be realistic but still shoot for the stars. 

Be agile

Be prepared for anything; you have got to be able to think on your toes. 2021 will not give you the time to cut through red tape. If you’re too slow to open the door when opportunity knocks, it will head over to your competitor’s open door. 

Become more efficient by automating redundant tasks to free up management from routine, time-consuming tasks and allow them to engage in business strategies to increase profits and customer service. 

Be adaptable

Success comes to those that can roll with the punches. Many businesses failed due to their inability to be adaptable. You should be able to pivot at a moment’s notice in good times or bad. This past year we saw restaurants close in droves while others seemed to thrive. The difference was the quick adjustment to delivery and curbside service. 

Showcase your differentiation 

In 2021 brand connections are becoming more critical for consumers. Customers are now looking for brands they can trust and support during these challenging times. 

Companies need to step up and show they are willing to provide superior customer service, operational excellence, clear and transparent communication, and affordable products. Especially in times of struggle, people are looking for assurance that good is out there. 

Now is the time to shine and show others you care. 

Remember your ‘why’

Most important, you have got to remember why you went into business in the first place. Do you have clarity around the ‘why’ of your business? No? That’s ok, but it’s time to figure it out. It is not about making money; that is the result. Your why should be the purpose, cause, or belief behind the reason your organization exists. Knowing why you are in business can help you make hard choices, stay focused on your goals, and take the necessary risks needed to succeed. 

The landscape is uncertain for 2021, but there is reason to be optimistic. Businesses that stimulate growth with new products and services create jobs and infuse the economy with the money it needs to recover.

Flor-Hanly Accountants are Xero Platinum Partners. Contact our accounting team on 07 4963 4800 or email to arrange a complimentary discussion on how we can work with you or read more here »

Source: Xero


Relocation Assistance to Take Up a Job

Flor- Hanly - Tuesday, April 27, 2021

Assistance for relocating to take up an offer of employment

Relocation Assistance to Take Up a Job (RATTUAJ) is an Australian Government program that assists eligible participants to relocate to take up an offer of employment.

Relocation assistance helps participants accept work outside of their area by removing the financial barriers that can prevent people relocating.

Job seekers who are participating in employment services programs may be immediately eligible for help with their moving costs under the Relocation Assistance to Take Up a Job program.

From 1 May 2021, if you relocate to take up ongoing work, including an apprenticeship, for more than 20 hours a week for more than six months, you may be eligible to receive up to: 

  • $3,000 if you relocate to a capital city*
  • $6,000 if you relocate to a regional area
  • An extra $3,000 if you relocate with a dependent. 

* If relocating from one capital city to a capital city with fewer jobs, you may not be able to access relocation assistance.

Employment services providers can use up to $2,000 to provide upfront support to job seekers who need assistance with agreed relocation costs.

How to access Relocation Assistance

To see if you are eligible for RATTUAJ, talk to your jobactive, Disability Employment Services, ParentsNext, Transition to Work, or Community Development Program provider.

Source: Dept Education Skills & Employment


Company tax changes

Flor- Hanly - Monday, April 19, 2021

Changes to company tax rates

There are changes to the company tax rates. The full company tax rate is 30% and the lower company tax rate is 27.5%.

The ATO has outlined when to apply the lower rate and how to work out franking credits.

Company tax rates apply to:

  • companies
  • corporate unit trusts
  • public trading trusts.

The full company tax rate of 30% applies to all companies that are not eligible for the lower company tax rate. Eligibility for the lower company tax rate depends on whether you are a:

Base rate entity company tax rate

From the 2017–18 to 2019–20 income years, companies that are base rate entities must apply the lower 27.5% company tax rate. The rate will then reduce to 26% in the 2020–21 income year and 25% in the 2021–22 income year.

A base rate entity is a company that both:

  • has an aggregated turnover less than the aggregated turnover threshold – which is $25 million for the 2017–18 income year and $50 million from the 2018–19 income year
  • 80% or less of their assessable income is base rate entity passive income – this replaces the requirement to be carrying on a business.

Base rate entity passive income is:

  • corporate distributions and franking credits on these distributions
  • royalties and rent
  • interest income (some exceptions apply)
  • gains on qualifying securities
  • a net capital gain
  • an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income.

Small business entity company tax rate

You need to be a small business entity to be eligible for the lower company tax rate in the 2015–16 and 2016–17 income years.

For the 2016–17 income year, the lower company tax rate is 27.5%. This lower rate applies to small businesses that both:

  • have an aggregated turnover less than $10 million
  • are carrying on a business for all or part of the year.

For the 2015–16 income year, the lower company tax rate was 28.5% for small business entities with an aggregated turnover less than $2 million and carrying on a business for all or part of the year.

For the 2017–18 income year and onwards, you need to be a base rate entity, rather than a small business entity to be eligible for the lower tax rate.

Not-for-profit companies

If you are a not-for-profit company, you don't pay tax on the first $416 of your taxable income. Tax is then shaded in at a rate of 55% of the excess over $416 until the tax on your taxable income effectively equals the company tax rate. You are then taxed at the company tax rate.

As the lower company tax rate is 27.5% from 2016–17 to 2019–20, the shade in limit for not-for-profit companies has been reduced to $831 if they are:

  • base rate entities from the 2017–18 to 2019–20 income years
  • small business entities for the 2016–17 income year.

Maximum franking credits

To work out the company tax rate for franking your distributions, otherwise referred to as 'corporate tax rate for imputation purposes', you need to assume your aggregated turnover, assessable income, and base rate entity passive income will be the same as the previous income year.

For the 2019–20 income year, your corporate tax rate for imputation purposes is 27.5% if either:

  • your aggregated turnover in the 2018–19 income year was less than $50 million, and 80% or less of your assessable income was base rate entity passive income
  • the entity didn't exist in the previous income year.

Otherwise, your corporate tax rate for imputation purposes is 30%.

Please contact Flor-Hanly Accountants in Mackay on 07 4963 4800 for clarification and application of the new rates to your business.

Source: ATO


QLD export grants

Flor- Hanly - Monday, April 12, 2021

Grants to help Queensland export businesses grow overseas

A new grants program has opened aimed at helping Queensland export businesses better sell their products online to overseas customers.

The new $400,000 E-commerce Grants Program will offer up to $10,000 to Queensland exporters that already have an e-commerce deal but want to ramp up their online activity in Queensland’s key export markets. 

Premier and Minister for Trade Annastacia Palaszczuk said it was all part of her government’s economic recovery plan.

“COVID-19 impacted the global economy and has brought substantial challenges to export businesses including increases in air-freight costs and lower availability of those services,” the Premier said.

“But it has also brought home the power of online shopping and rolling out grants programs like this will assist Queensland export businesses better tap into global e-commerce channels to not only grow their businesses but help them thrive.

“E-commerce is booming all over the world as more consumers in more markets see value in the convenience of online purchasing and home delivery, so there’s an opportunity for Queensland exporters to use e-commerce to achieve higher returns.

“This grants program helps with the cost of executing a new e-commerce initiative and is just one of many ways my government is assisting businesses to recover from the disruptions caused by the pandemic.”

Minister for Agricultural Industry Development and Fisheries and Minister for Rural Communities Mark Furner said the grants program is being run by the government’s global business agency Trade and Investment Queensland (TIQ).

Townsville-based mango grower Manbulloo has been using e-commerce for the past five years and now sells its mangoes through digital channels in Korea, China, Canada and the USA.

With limited availability and higher cost of air freight in 2020, Manbulloo needed to add value to its products to maintain export volumes and returns, with e-commerce providing the answer.

Export Manager Scott Ledger said the company targeted two e-commerce platforms in Korea, with help from Trade and Investment Queensland, and sold $100,000 worth of R2E2 mangoes in just one hour on the GS Home Shopping Channel in November.

“Using e-commerce, consumers will pay more because they value the convenience of buying online and the freshness of the product delivered to their home,” he said. “An extra benefit of e-commerce is the direct engagement with consumers and the feedback you receive on how your product is performing.”

For more information or to apply for an e-commerce grant, visit or call Flor-Hanly's Accountants in Mackay on 07 4963 4800.

Source: QLD Govt


Flor-Hanly Photo Contest

- Thursday, April 08, 2021


We’re seeking great photos that celebrate our clients!

To help celebrate Flor-Hanly’s 50th anniversary and the move to our new office building in July, we would love to use client photos to help decorate our new space!!! 

We love seeing the amazing photos our clients take of their businesses, properties, livestock, machinery, and everything in-between. We would also like to use a variety of them in our Marketing Collateral and to decorate our new office building. 

Get your creative juices flowing. Whether you have done photography courses, are an amateur hobbyist or you just love taking photos, we would love to see...and use them! 

If people are included in photos, it is often easier to use pictures with the backs of heads in them rather than faces. However, there are exceptions to every rule, so please still send us that great shot if it has faces visible. 

We would need to confirm that anyone with their face visible has given approval for their image to be used. Send all your photos to and we will be in touch if we would like to use your photo.


By submitting a photo, you agree that your submission is your own work and creative property and allow Flor-Hanly to use it in marketing collateral including but not limited to the building decoration, website, advertising, and brochures. Wherever practical and possible, we will give you an acknowledgement on the photograph. We will discuss and record any special conditions you may have around the use of these photographs prior to using them.


Rural Aid flood assistance

Flor- Hanly - Tuesday, April 06, 2021

Do you need help?

Rural Aid is proud of its support of farmers and rural communities suffering the effects of drought, flood, fire or natural disaster.

Farmers are a proud bunch. Many won’t ask for help. Some suffer in silence, but Rural Aid is changing that.

To allow Rural Aid to assist farmers in the wake of recent flooding, they need to know who you are. If you’re a farming family in need of help, please let Rural Aid know. If you know a farming family that needs help, please tell them about this campaign.

Important information 

Upon successful completion of the registration form, please contact the Rural Aid team on 1300 327 624 during business hours. A member of their team will then verify your registration details and help guide you through your application for assistance. You must contact Rural Aid following your online or postal registration.

Depending on the farmer’s eligibility and current situation, Rural Aid’s assistance includes financial help, fodder supplies, domestic water, counselling services and more.

This registration form is for the use of eligible primary producers, including those whose industry includes the farming of livestock, produce, bees and other forms of primary production.

Please complete all fields relevant to your industry here:

There is one important step to go

Remember, contact the Rural Aid team on 1300 327 624 during business hours. A member of their team will verify your registration details and guide you through your application for assistance.

Contact Flor-Hanly's Accountants in Mackay if you have any queries or need support.

Source: Rural Aid


Allocating professional firm profits for tax purposes

Flor- Hanly - Monday, March 29, 2021

New guidance for the allocation of professional firm profits

We outline the implications of the draft ruling by the Australian Tax Office (ATO) in terms of how Professional Firms (Accountants / Solicitors / Engineers, etc.) allocate their profits.

This is a change from what has been done in the past and will have consequences for professional firms.

The ATO's risk-based compliance approach requires two qualifying 'gateways' to be passed before applying their risk assessment framework.

The gateways require those with non-commercial arrangements, and those arrangements with high risk features to engage with us before applying the guidance.

Where an IPP passes the gateways, they then self-assess against the risk assessment framework to determine the type of compliance attention that will be given to their arrangement. The draft PCG combines three previously separate risk assessment measures into a single methodology. This gives an overall risk rating of low, medium or high risk, including:

  • the proportion of profit entitlement from the whole of the firm group that is returned in the hands of the IPP
  • the total effective tax rate for income received from the firm by the IPP and associated entities
  • the renumeration returned in the hands of the IPP as a percentage of the commercial benchmark for the services provided to the firm.

On application of the three risk assessment measures, an IPP will be rated as 'low risk' where all the following apply:

  • greater than 50% of their profit entitlement from the whole of firm group is returned in their personal income tax return
  • the effective tax rate paid by the IPP and their associates on their profit entitlement from the firm is greater than 30%
  • the IPP returns an amount of income in their personal income tax return which reflects at least an appropriate return for their services to the firm.

Where arrangements featuring high-risk features or lacking apparent commercial rationale are identified, we will treat the risk through application of integrity provisions, including Part IVA.

What you need to do

We encourage you to seek independent professional advice or contact Flor-Hanly directly to discuss your situation if you are an IPP who:

  • does not pass the gateways provided in the draft PCG
  • are medium or high risk on self-assessment of the risk framework.

We will continue to examine arrangements that go beyond the intent of the draft guideline.

The ATO's revised guidance explains how we intend to apply a risk-based compliance approach when considering the allocation of professional firm profit, or income in the assessable income of the individual professional practitioner (IPP). The release of draft Practical Compliance Guidance PCG 2021/D2 follows consultation with peak professional bodies and other affected stakeholders. The draft guidance aims to provide consistency and a level playing field across the industry.

Source: ATO


What happens to your super when you die?

Flor- Hanly - Monday, March 15, 2021

Life planning

Superannuation is a significant asset to most, especially those reaching retirement who’ve contributed (or their employer has contributed) into super throughout their working life.

There are significant tax benefits which make superannuation attractive. However, have you considered what happens to your superannuation when you die?

“In this world nothing can be said to be certain, except death and taxes" — Benjamin Franklin

Superannuation law says that death benefits must be dealt with as soon as practicable after death. There are different ways your superannuation benefits can be paid on your death. Generally, they’re paid as a lump sum often called a “death benefit lump sum” or “lump sum death benefit”, paid by taking the monies as a pension (a death benefit pension), or a combination of both. Importantly, your superannuation cannot be left to keep accumulating after your death.

Who can your superannuation be paid to?

Your superannuation can generally only be paid as a lump sum to your estate, or to one or more of your “dependents”.

Dependents can be: your spouse, your children, regardless of age or financial dependency, someone who was financially dependent on you on your death, someone who was in an interdependency relationship with you on your death. Death benefits can also be paid as a pension. Pensions from your superannuation fund aren’t to be confused with Age Pensions from Centrelink! Superannuation funds can pay pensions (typically account-based pensions). These are regular payments from your superannuation benefits to the beneficiary. These can be very tax effective. The range of permitted pension beneficiaries are restricted to: a surviving spouse, a child that is under 18 or between 18 and 25 and financially dependent on you when you die, a severely disabled child; or someone other than your spouse or your children that was financially dependent on you or was in an interdependency relationship with you at the time of your death.

Who decides who your benefits are paid to?

Many are surprised to know that your superannuation doesn’t automatically form part of your estate and therefore isn’t controlled by your will. The decision regarding who and how your superannuation benefits are paid rests with trustees. Each superannuation fund has a trust deed which has a set of rules for that fund. The trustees, when deciding who to pay the benefits to, need to take the law and these fund rules into account. There are some situations where the trustees have no choice at all in who they pay the benefits to or how. Binding Death Benefit Nominations can be put in place by members to direct the trustees how and to whom the benefits must be paid. These can form a very important part of estate planning. They need to be prepared carefully considering where you want your super to go and any taxation consequences. If receiving a pension from your superannuation, you can nominate someone, typically your spouse who’ll continue to receive your pension after your death. This is referred to as a reversionary pension. Importantly, there are limitations on who can be a reversionary pensioner. When joining a superannuation fund, you’re given the opportunity to nominate who your preferred beneficiaries of your superannuation are. This isn’t binding on the trustee and shouldn’t be confused with binding death benefit nominations.

How are death benefits taxed?

Your superannuation benefits consist of two components: a tax-free component which represents contributions you’ve made, which you haven’t claimed a tax deduction for over time; and a taxable component which is everything else. This taxable component represents all the contributions you’ve made which you claimed a tax deduction for, and the accumulated earnings generated over time which have been concessionally taxed.

Lump Sums

Lump sums paid to dependent beneficiaries such as your spouse, children under 18 and financially dependent children over 18 are tax free regardless of the components. When paid to adult children who are not financially dependent, any tax-free component is tax-free. The taxable component is taxed at a maximum rate of 15 per cent plus Medicare levy. If there’s a life insurance component and the deceased was under 65, tax of 30pc plus Medicare levy will be payable. Where a lump sum is paid to your estate, the estate may need to pay tax on the benefit depending on who’ll be the ultimate beneficiary.


The tax treatment on pensions depends on the age of the member on their death and/or the age of the recipient. If the member was 60 or over at death, the pension is tax-free regardless of the age of the recipient. If the member was under 60 on death but the recipient is over 60, the pension payments are also tax-free. If both were/are under 60, the pension is taxed at marginal rates less a 15pc tax offset with an allowance for any tax-free component.

Call the team at Flor-Hanly in Mackay or visit

The information contained on this page is of a general nature only.  We recommend that you seek professional advice prior to making any changes to your superannuation.  This information should not be perceived to be advice, as we have not taken into consideration your needs, objectives or your current situation. 

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