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HR Advice Online: 

HR Advice Online says it is often contacted by employers who want to know what action can be taken when an employee is found to have posted social media content that does not align with the company’s code of conduct or that may disparage the business or a colleague. 

As the lines between what is private and what is not become more and more blurred, and we rely on social media daily, it is crucial you take measures to protect your brand and interests, whilst capitalising on the great exposure social media affords.

There have been numerous cases involving social media posts which have resulted in termination of employment. In these cases, it has been established that disciplinary action will be justified if the social media activity:

1. Causes or is likely to cause damage to the employment relationship (identifies directly or indirectly an employee of the organisation or the organisation itself); or
2. The post is visible during working hours; or
3. The post breaches the law (ie is discriminatory or bullying in nature) and or breaches the code of conduct or policies of the organisation; or
4. Is detrimental to the employer’s interests; or
5. Is incompatible with the employee’s duties as an employee.

If the activity falls within one or all of the categories above, social media posts made outside working hours, from home, and intending to be private, may result in employee disciplinary action. As the Fair Work Commission has previously noted, “it would be foolish of employees to think they may say as they wish on their Facebook page with total immunity from any consequences.”

A Supreme Court case, Jurecek v Director, Transport Safety Victoria (2016), raised the question of whether an employee’s abusive remarks on social media were also subject to privacy laws.

Ensure you have a clear and effective social media policy, one that outlines the responsibilities and expectations of your employees in and outside of work. The role of social media should also be referenced in the Code of Conduct, Respect at Work Policies and your Employee Handbook.

The policies should clearly state that making specific comments and the context in which those comments are made matters; breaching such policies or codes of conduct may leave an employee liable for disciplinary action, including termination of employment.

As is the case with all employment policies, simply having a policy in place is not enough. It is equally important that employees are trained in the policy and properly understand it. Education is the key to prevention.

It is also important to remember that a social media policy must be reviewed and updated to remain current with advances in technology and social media use.

HR Advice Online has a suite of policies you can download from our resources including a social media Policy, Code of Conduct, Employee Handbook and Respect in the Workplace Policy.  If you require assistance downloading these or any other resources, please don’t hesitate to contact us on 1300 720 004 or advice@hradviceonline.com.au

Information in HR Advice Online guides and blog posts is meant purely for educational discussion of human resources issues. It contains only general information about human resources matters and due to factors, such as government legislation changes, may not be up to date at the time of reading. It is not legal advice and should not be treated as such.

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BMT Tax Depreciation: Navigating a shifting market cycle with depreciation 

Property markets operate in cycles, characterised by periods of growth, stability, and decline. These cycles are influenced by a variety of factors, such as interest rates, economic performance, population trends, and government policies. 

As a property professional, it is your job to navigate these dynamic shifts. Staying ahead of the curve requires not only adaptability but also a keen eye for underutilised opportunities. One such opportunity that often goes overlooked is depreciation. 

Unlocking the power of depreciation can offer a strategic advantage that translates into an improved bottom line. In this article, BMT Tax Depreciation delves into the vital role of depreciation and why property professionals should embrace it as a cornerstone of their business approach.

Property market cycles 

Australia’s property market has seen its fair share of highs and lows. From booming growth periods that fuel property value appreciation to times of economic uncertainty that dampen demand, market cycles are inevitable. These cycles can differ from region to region and even city to city, making it essential for property professionals not only to comprehend but anticipate these shifts. 

Depreciation’s hidden potential

Amid the hustle of property management, many professionals tend to focus on more immediate concerns such as rental income, maintenance costs, and tenant relations. However, beneath the surface lies a significant contributor to an investor’s bottom line – depreciation.

Depreciation is a tax deduction claimable for the wear and tear of an income-producing property and its assets. Depreciation is claimable under two categories, capital works deductions and plant and equipment depreciation. 

Capital works (Division 43) deductions are claimable on a building’s structure and permanent assets, like swimming pools, verandas, flooring, clothes lines and built-in kitchen cupboards. For residential properties, capital works are depreciated at a rate of 2.5 or 4 per cent per year depending on the construction commencement date. 

Plant and equipment (Division 40) depreciation is claimable on the easily removable or mechanical assets, like air conditioning units, swimming pool filtration systems, security systems and light fittings. Plant and equipment assets are depreciated over the asset’s effective life at a set rate depending on which depreciation method is elected by the owner. 

Depreciation is the only non-cash deduction available, meaning no money needs to be spent to claim it. 

Aligning depreciation with market cycles 

As market cycles evolve, the significance of depreciation becomes even more pronounced. During periods of growth, property values appreciate, leading to increased taxable income for investors. Depreciation acts as a counterbalance, allowing investors to claim deductions on the declining value of their assets, thereby reducing their tax liability. In times of stability or decline, depreciation provides a buffer against potential losses, enhancing an investor’s financial resilience. 

Maximise deductions with a tax depreciation schedule

The only way to ensure deductions are maximised is through a tax depreciation schedule. A tax depreciation schedule is a comprehensive report that outlines all the depreciable assets within the property and their corresponding depreciation rates. Prepared by a qualified quantity surveyor specialising in tax depreciation, this schedule helps investors and their accountants accurately calculate their depreciation deductions. 

BMT Tax Depreciation are the depreciation experts with over twenty years of experience in residential and commercial schedules. A BMT Tax Depreciation Schedule outlines all depreciable assets over the lifetime of the property, broken down into capital works plant and equipment deductions with both depreciation methods calculated. 

To learn more about how you can educate your clients on depreciation, get in touch with BMT on 1300 728 726 or visit the website bmtqs.com.au/.

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