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COVID-19 SA Government Business Support Package

12 January 2022

As we continue to find ourselves in these challenging times, we understand you may have concerns about the ongoing effects COVID-19 has on your businesses and means of support.  As always, should we be able to assist you and your business navigate your way through this ever changing economic climate, please do not hesitate to contact us.  Please note during this time we are trying to limit face to face meetings and where possible, are requesting meetings be held remotely via zoom, phone etc.  Please contact your advisor if you have particular concerns, but please feel reassured that we will be there to help where we can.

With many businesses continuing to suffer the effects of COVID-19 restrictions, the SA Government have introduced a support package which your business may be able to access.
So what grants are available?

  • Tourism, hospitality and gym grant
  • Business hardship grant
  • Major events grant
  • Payroll tax relief
  • Liquor licence fees relief

Who can access the grants?

Tourism, hospitality and gym grant

  • Automatic payment
    • Automatically paid to businesses that received previous COVID-19 Tourism and Hospitality Support Grant and Gym operators that received Additional COVID-19 Business Support Grant. The business needs to fall within the eligible ANZSIC classification codes.
    • The grants available range between $1,000 and $11,000 dependant on your business
    • No application is necessary
  • Turnover based payment
    • A 30% reduction in turnover during the period 27 December 2021 to 9 January 2022 (inclusive) comparable to 2 weeks in 2019-20 (or 2020-21 for those businesses that did not trade in 2019-20) as specified by the grant conditions. The business needs to fall within the eligible ANZSIC classification codes and there is additional criteria to be met.
    • The grants available range between $1,000 and $11,000 dependant on your business
    • An application needs to be completed before the closing date (31 March 2022)

Business hardship grant

  • Turnover based payment
    • A 50% reduction in turnover during the period 27 December 2021 to 9 January 2022 (inclusive) comparable to 2 weeks in 2019-20 (or 2020-21 for those businesses that did not trade in 2019-20) as specified by the grant conditions. This grant is not industry specific however for those eligible for the ‘Tourism, hospitality and gym grant’, those business can not apply for this grant. There is additional criteria to be met.
    • The grants available range between $2,000 and $8,000 dependant on your business
    • An application needs to be completed before the closing date (31 March 2022)

Major events grant

  • Requires proof of non-recoverable financial loss due to an event being cancelled/postponed
  • There is various criteria to meet to be eligible for this grant
  • The grants available are up to a maximum of $100,000 dependant on the event cancelled/postponed
  • An application needs to be completed before the closing date (31 March 2022), noting the application process is still being determined

Please note that currently the application systems for the COVID-19 Tourism Hospitality and Gyms and COVID-19 Hardship grants will not accept applications from businesses commencing operation after December 2020.

The Government has determined that eligibility for these grants will be extended to these businesses and the application systems are being updated to enable these applications.
Applications will now be extended to businesses commencing prior to 30 November 2021. For businesses that commenced trading after December 2020, the comparison period will be the average fortnightly trading activity between when the business commenced and 30 November 2021.

Changes to the application form to allow businesses established after December 2020 to apply for the COVID-19 Tourism Hospitality and Gyms and COVID-19 Hardship grants will be made by Friday 14 January 2022.

Payroll tax relief
Tourism, hospitality, gyms and other eligible businesses impacted by the trading restrictions in place from 27 December 2021 may apply to RevenueSA for a deferral of payroll tax due over the period from January 2022 to March 2022, with these deferred payments due from April 2022.
Further information is available at https://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief

Liquor licence relief
Please get in contact with us if your business involves the need for a liquor licence, as there is potential relief available for certain businesses.

If we can assist with the above or any other matters, please do not hesitate to contact us at admin@nulli2advisory.com.au or 08 8132 6400.

Christmas and the Taxman

28 November 2021

When do employee gifts and celebrations attract fringe benefits tax (FBT)? And when are they exempt?

Christmas is traditionally a time of giving – including employers showing gratitude towards staff for a job well done. However, Christmas parties and gifts can attract the attention of the Taxman.

In certain circumstances, an employer can hold a Christmas party for staff and the cost of the party be exempt from Fringe Benefits Tax (FBT).

Take, for example, an employer who holds a Christmas party at a restaurant for employees and their partners and, apart from perhaps the Melbourne Cup, it is the only social function they provide for employees each year.  Where this is the case, the party is very likely to be exempt from FBT provided the per-head cost (dinner and drinks) is kept to less than $300 per person. To enjoy this exemption, the employer must use the “actual method” for valuing FBT meal entertainment.

Continue reading “Christmas and the Taxman” →

New laws to improve the way super is divided in divorce

7 November 2021

A new law will level up the playing field for divorcing couples to ensure both partners have fair and equitable access to superannuation, particularly during acrimonious family court proceedings.

For many Australians, superannuation is their second biggest asset aside from the family home. In a divorce situation, it’s important that both partners, including those with lower superannuation balances who may have taken time out of the workforce to care for children, get their fair share of available super.

In the case of an amicable divorce where both partners are being open and honest, splitting super is relatively straightforward. Yet it can be much harder to split when there is animosity between the divorcing couple, family law proceedings are occurring, and one partner is being dishonest or evasive about how much super they have.

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Avoid common mistakes in your business return, and include appropriate income

26 October 2021

We know you want to get your tax right, so it may help you this tax time to know how to avoid making what the ATO has found are the most common tax mistakes.

To do this make sure you have:

  • declared all income, including cash and online sales, dividends, interest, capital gains or one-off transactions such as selling equipment
  • accurately recorded the value of goods taken for private use and directors’ fees or other money drawn out of your business
  • correctly apportioned expenses that are used both privately and in your business, including adjusting your rent expenses if you store personal assets at your business premises
  • only claimed expenses you’re entitled to claim (for example capital improvements can’t be written off as a repair)
  • correctly claimed any business losses.

It’s important to have good records that are up to date. It can help to have a dedicated business bank account to help keep business transactions separate from your other finances.

Continue reading “Avoid common mistakes in your business return, and include appropriate income” →

On the road: How to treat work-related travel and living away from home costs

6 October 2021

The ATO has released new guidance to help clarify the tax treatment of costs and allowances incurred when an employee travels – or spends time living away from home – for work.

Certain conditions need to be met to ensure an allowance can be considered a travel allowance:

  • None of the individual absences from the employee’s usual place of residence exceed 21 days.
  • The employee is not present in the same work location for 90 or more days in an FBT year.
  • The employee returns to their usual residence once their period away ends.

See the table below for a breakdown of the characteristics of travel allowances versus living away from home allowances.

Continue reading “On the road: How to treat work-related travel and living away from home costs” →

The ATO’s eligibility requirements for SMSF trustees or directors

26 September 2021

All members of a self-managed super fund (SMSF) must be individual trustees or directors of the fund’s corporate trustee. Anyone 18 years old or over can be a trustee or director of a super fund as long as they’re not under a legal disability (such as mental incapacity) or a disqualified person.

But other eligibility factors should not be overlooked. To knowingly act as a trustee, a trustee director or an office holder of a corporate trustee (such as secretary), while being a disqualified person, is an offence.

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What the new Your Future, Your Super means for you

5 September 2021

Recent legislative reforms to the superannuation arena are set to change the retirement savings landscape for many Australians.

The Federal Government says the Your Future, Your Super reforms will help ensure superannuation works in the best financial interests of all Australians by removing unnecessary waste, increasing accountability and transparency, and providing more flexibility for families and individuals.

The legislation increases the maximum number of allowable members in self-managed superannuation funds (SMSFs) and small APRA funds from four to six from 1 July 2021.

The reforms also extend the bring‑forward arrangements to people aged 65 and 66 for non-concessional contributions made on or after 1 July 2020. This change is on top of a previous reform that allowed people aged 65 and 66 to make contributions without meeting the work test.

The excess concessional contributions charge, which currently applies to contributions in excess of the concessional contributions cap, is to be removed from 1 July 2022, thereby ensuring people saving for their retirement are not financially disadvantaged by inadvertent breaches of the cap.

Australians will also be supported to make additional contributions to their superannuation to make up for amounts that they may have withdrawn due to COVID-19. From the 2021-22 financial year, individuals who released superannuation under the COVID-19 early release scheme will have the option of recontributing these amounts as non-concessional contributions, over and above the existing caps.

Continue reading “What the new Your Future, Your Super means for you” →

COVID-19 Additional Business Support Grants

13 August 2021

The Government of South Australia has announced an additional COVID-19 Business Support Grant. This is available for industry sectors that are significantly impacted by the COVID-19 density and other trading restrictions applicable from 28 July 2021.

Grants of $3,000 for employing businesses and $1,000 for non-employing businesses will be available for businesses in eligible industry sectors (those that have been significantly impacted by the restrictions) that have experienced a decline in turnover of 30% or more as a result of the COVID-19 health trading restrictions introduced from 28 July 2021.

A further grant of $1,000 will be available for eligible businesses (both employing and non-employing) with a commercial premise in the Adelaide CBD. This recognises that an increased number of employees have been working from home (in line with health advice) and the flow on impact this has on businesses operating in the CBD.

This grant builds on the COVID-19 Business Support Grant – July 2021 which was announced in July and is supporting thousands of South Australian small and medium sized businesses that suffered a loss as a result of the restrictions (and subsequent lockdown) imposed on 20 July 2021. Businesses that received the COVID-19 Business Support Grant – July 2021 are eligible to receive the additional COVID‑19 Business Support Grant, subject to meeting all the eligibility criteria.
Continue reading “COVID-19 Additional Business Support Grants” →