A business credit card could be an excellent way to start building your company’s credit profile. We’ve listed five benefits of applying for a business credit card.
At the early stages of your start-up journey, access to credit can be a lifesaver.
Cashflow is tight, customer revenue can fluctuate wildly and large-scale bank loans and external funding may be in short supply. In this situation it might seem counterproductive to apply for a business credit card – a move that adds to your debt level.
But, in fact, applying for a company credit card and using that credit facility responsibly can have a hugely positive effect on your ability to fund your growth and access lines of credit. Let’s explore five ways that a business credit card can improve your funding
Builds up your business credit profile
When you use a business credit card responsibly, and pay off the repayments each month, this starts to build up a credit history for the company. This credit profile is directly linked to your business and is separate from your own personal credit.
Having this credit history (and the associated business credit score) is crucial when applying for business loans and accessing future, large credit lines.
Establishes you as a responsible borrower
Paying your credit card bill on time each month demonstrates your financial discipline and an ability to manage debt in a responsible way.
When applying for loans, bank overdrafts and trade credit, lenders want to know that you’re a low-risk business to lend to. Responsible payment behaviour acts as an indicator of trustworthiness for future borrowing and will increase your chances of successful funding.
Provides a flexible line of credit
Having a business credit card makes it easier to cover your expenses and overheads.
A credit card gives you flexible, accessible funds for your day-to-day operational needs. It’s also an excellent way to cover any unexpected expenses or cashflow gaps. Managing this line of credit also prepares you for larger, more formal, credit facilities.
By not maxing out the available credit on your credit card, and keeping utilisation low, you can show that your business manages debt in a sensible way. This marks you out as a low-risk borrower – a key factor in accessing further credit, business finance and investment..
Acts as a gateway to more favourable terms
By being responsible with your credit use, you set the foundations for a business credit profile.
A solid track record with a business credit card may lead to pre-approved offers for larger credit lines, better interest rates and more flexible terms from banks. This is incredibly helpful as you scale the business and need additional funding to drive your growth journey. Talk to us about applying for credit and business finance
If your startup is in need of an increased cash runway and improved access to credit, applying for a business credit card is an excellent way to improve your financial flexibility.
Come and talk to the team about ways to embrace this kind of credit.
With the end of the current tax year upon us, please do not forget about your final tax obligations for 2025. Here is a list of key tax dates for June 2025.
The end of the current financial year is upon us. For most of you, this means preparation to start finalising your general ledger accounts for the upcoming end of year compliance.
In order for you to be across all upcoming due dates and deadlines, please find a list of the key compliance dates below for June 2025. Make sure these lodgments are up to date to avoid any interest or penalties.
KEY TAX DATES – JUNE 2025
5 June 2025 – Income tax – Due date for lodgment of tax returns of all entities 5 June concession. Note: Entities eligible for the 5 June 2025 concessional due date can lodge by 8 June 2025, as long as any liability due is paid by this date. You do not need to apply for a deferral.
21 June 2025 – GST – Monthly Activity Statement and payment for May 2025
21 June 2025 – PAYG withheld and PAYG instalment – Monthly Activity Statement and payment for May 2025
25 June 2025 – FBT – Lodge 2025 FBT annual return for tax agents if lodging electronically, if you are lodging with us
30 June 2025 – Superannuation guarantee – Super guarantee contributions must be paid by this date to qualify for a tax deduction in the 2024–25 financial year.
We’re here to help if you’re facing operational issues, tackling people challenges, or have health and safety questions, give us a call, email or text us.
Australian Labor party (ALP) will form the government for a second consecutive term after winning the Federal election with majority seats. We have summarised for you, all tax measures proposed by the ALP throughout their federal election campaign.
The ALP has been re-elected to form a government with majority, after winning the 2025 Federal election.
During the election campaign several tax changes were proposed by the ALP, that may come into come into effect in their next term.
We have briefly analysed these measures below for you, explaining how they may apply to you or your business (post enactment).
Tax cuts
The marginal tax rate for the personal income tax threshold bracket from $18,201 to $45,000 will be reduced from 16% to 15% from 1 July 2026, and further reduced to 14% from 1 July 2027. These tax cuts, now legislated, will save about $10 a week for the average earner once both cuts have flowed through.
Instant tax deduction
A $1,000 instant tax deduction for work-related expenses from 2026–27 income year has been proposed by the ALP, this measure will allow taxpayers who earn labour income to choose to claim the $1,000 instant tax deduction instead of claiming individual work-related expenses. Those who choose to do so will not need to collect receipts for deductions less than $1,000.
Extend $20,000 instant asset write-off
As announced in the 2025 Federal budget, the increased instant asset write off is also proposed to be extended.
This measure will allow small businesses that choose to deduct depreciating assets under the simplified depreciation rules (Subdiv 328-D of ITAA 1997) to continue to deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2026. The threshold applies per asset, which means small businesses can claim multiple purchases.
Reduced student loan debts and repayments
As announced in the 2025 Federal budget, from 1 July 2025, the government will implement a 20% reduction on all student loan debts, including HELP, VET Student Loans, and Australian Apprenticeship Support Loans.
The ALP formed government also plans to increase the minimum repayment threshold from $51,500 to $67,000 in from the 2025-26 income year.
Increased Medicare-levy thresholds
Also announced in the 2025 Federal budget, the Medicare levy low-income thresholds for singles, families, and seniors and pensioners will be increased from 1 July 2024.
Other measures
The power bill rebate extension will also come into effect from 1 July 2025, $150 in energy bill rebates will again be automatically applied until 31 December 2025 i.e. $75 per quarter.The existing Home Guarantee Scheme will also be extended to include all first home buyers, allowing them to purchase a property with a minimum deposit of 5%, the current eligibility criteria will be scrapped.
Contact us Please don’t hesitate to contact our office and we will be pleased to guide you through any queries that you may have in relation to these proposed measures.
The way to calculate a working from home deduction using fixed cost method for additional running expenses has been adjusted from 1 July 2024, with the ATO issuing a new hourly fixed rate.
The Australian Taxation Office (ATO) has issued new guidelines to help you in making a claim for running expenses using the fixed cost method, while working from home from 1 July 2024.
Under this guidance, the ATO will allow you to make a claim of 70 cents per hour for time spent working from home. This claim is a simplified method which includes expenses for:
Energy expenses (electricity and/or gas) for lighting, heating/cooling and electronic items used while working from home
Internet expenses
Mobile and/or home telephone expenses, and
Stationery and computer consumables. This means you cannot claim an additional separate deduction for any of these expenses. For eg, if you use your mobile phone when you are working from home and when you are working from somewhere other than your home, your total deduction for the income year will be covered by the hourly fixed rate.
However, under the revised fixed-rate method, a separate claim can be made for depreciation and repairs and maintenance on furniture and equipment.
In order to make this claim, you will need to keep:
Evidence of additional expenses incurred in the form of monthly/quarterly bills or purchase receipts
A diary of the days you work from home, this can be backed up by evidence such as your timesheet or a roster, and Contact us
With tax time approaching soon, if you require any more information about calculating this deduction, please let us know and we will be happy to assist you further.
To maintain a healthy cash flow, you need more than just strong revenue. Improve your small business cash flow by implementing Five Simple Cashflow Rules.
Need a hand managing cash flow? You’re not alone. The key is getting your invoicing right, by invoicing customers as soon as possible and using tools like Xero’s invoice reminders to move payments along.
That said, there are a few other simple rules you can apply to manage your cash flow and get your invoices paid even faster:
Keep your books accurate and up to date – so you can see your financial state at a glance.
Don’t be too lenient with your customers – you can be direct and still polite. Keep a close watch on your accounts receivable turnover at all times and act sooner rather than later.
Keep your accounting simple – so you have a good handle on these business metrics. We can help with this.
Keep your business and your professional finances separate – this is essential to understanding your true cash flow position. Mixing your business and personal finances can leave you uncertain about business performance.
Build a cash reserve – so you are prepared for unexpected events and can take advantage of opportunities when they pop up.
First you want to get your invoicing right. Get into a habit of sending invoices quickly. Then follow the steps above to collect revenue and keep your finances organised.
Get in touch for guidance on your invoicing and business cash flow.
