3 March 2022

Some good COVID-19 news (at least on the tax front) for employers!

Ever since the arrival in Australia of the Omicron variant in late 2021, the recommended test for detecting COVID has been the rapid antigen test (RAT). Indeed, for some employees, returning a negative RAT has been an ongoing condition of returning to work. As a result, there has been a massive buy up of these tests by both employers, employees and by others – often at significantly marked up rates. On the tax front, relief is now at hand!

Announcement

In a press release dated 8 February 2022, the Assistant Treasurer announced that COVID‑19 tests (including Polymerase Chain Reaction (PCR) and Rapid Antigen Tests (RATs)) are now tax deductible, and exempt from FBT for employers, where they are purchased for work‑related purposes. This will apply both when an individual is required to attend the workplace or has the option to work remotely.

Continue reading “RAT and PCR Tests – favourable tax treatment for employers” →

31 January 2022

Further to our previous correspondence regarding SA Government support for COVID affected businesses, as at 29 January 2022, further grants have been released. In addition to the grants available for the period 27 December 2021 to 9 January 2022 (inclusive), there is now additional support relating to the turnover period 10 January 2022 to 30 January 2022 (inclusive).

The additional grants available, tabled under the Grant Program “Additional Round (January 2022)” include:-

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

Who can access the grants?

Tourism, hospitality and gym grant

• Turnover based payment
  • A 30% reduction in turnover during the period 10 January 2022 to 30 January 2022 (inclusive) comparable to 3 weeks in 2019-20 (or 2020-21 for those businesses that did not trade in 2019-20) as specified by the grant conditions.
  • The grants available are up to $22,000 dependent on your business
  • Please note successful recipients of the Tourism, Hospitality and Gym Grant – turnover based payment- December 2021 (relating to turnover in the period 27/12/2021 to 09/01/2022), will automatically receive payment under the Tourism, Hospitality and Gym Grant – Additional Round – January 2022. If your business has not submitted an application for the Tourism, Hospitality and Gym Grant – turnover based payment – December 2021, whether or not you have received an automatic payment, you MUST SUBMIT AN APPLICATION for this grant.
  • Additionally, if you are eligible for this grant and were not able to claim the previous grant (December 2021) as you may not have previously been eligible, an application needs to be completed before the closing date (31 March 2022).
  • Applications and the all-important guidelines will be available on 14 February 2022 with further information to come.

Business hardship grant

• Turnover based payment
  • A 50% reduction in turnover during the period 10 January 2022 to 30 January 2022 (inclusive) comparable to 3 weeks in 2019-20 (or 2020-21 for those businesses that did not trade in 2019-20) as specified by the grant conditions. The grants available are up to $8,000 dependant on your business.
  • Please note successful recipients of the Business Hardship Grant – turnover based payment- December 2021 (relating to turnover in the period 27/12/2021 to 09/01/2022), will automatically receive payment under the Business Hardship Grant – Additional Round – January 2022. If your business has not submitted an application for the Business Hardship Grant – turnover based payment – December 2021, whether or not you have received an automatic payment, you MUST SUBMIT AN APPLICATION for this grant.
  • Additionally, if you are eligible for this grant and were not able to claim the previous grant (December 2021 as above) as you may not have previously been eligible, an application needs to be completed before the closing date (31 March 2022).
  • Applications and the all-important guidelines will be available on 14 February 2022 with further information to come.

Major events grant

• Requires proof of non-recoverable financial loss due to an event being cancelled/postponed during the impacted period (27 December 2021 to 31 March 2022 (inclusive)
• There are 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

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 June 2022, with these deferred payments due from July 2022.

Further information is available at https://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief

A good summary of the SA Government COVID-19 Business Support Grants can be found here

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.

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” →

22 July 2021

In response to the current stay at home order in South Australia, the State Government has announced a $100m emergency payment scheme to provide relief to businesses affected by the 7 day lockdown.

This is in the form of an emergency cash grant of $3,000 for employing businesses or $1,000 for those businesses who do not employ staff.  To be eligible for the grant a business needs to meet all of the following criteria at the start of the restriction period of 12:01am Tuesday 20 July 2021:

• Be located within South Australia.
• Have an annual turnover of $75,000 or more in 2020-21 or 2019-20, and be registered for GST.
• Have a valid and active ABN (Australian Business Number).
• Must employ people in South Australia.
• Have an Australia-wide payroll of less than $10 million in the 2019-20 financial year.
• Experienced at least a 30 per cent reduction in turnover in the week of Tuesday 20 July 2021 – Monday 26 July 2021 (inclusive) (compared to the prior week) due to restricted trading conditions.

To be eligible for the $1,000 grant non-employing businesses will be subject to the eligibility criteria outlined above, excluding the requirement to employ people.

For further information including information on substantiation requirements in relation to proving the decline in turnover please click here.

To register your interest click here.

Further grant guidelines and the application portal will be available shortly with applications expected to open within the next two weeks.  Applications for the grant will close on 30 September 2021.

Please note that the government will consider further support should the lockdown be extended beyond seven days.

Individual support – COVID-19 Disaster Payment

The Commonwealth Government has also extended its national support scheme to individuals (including employees) who have lost income during the lockdown. The SA government has extended access to the scheme to all eligible South Australians and not just those living in Commonwealth declared hotspots.

Should you not meet the turnover criteria to receive the business support grant, there may be an opportunity to apply for the COVID-19 Disaster payment instead if you can pass the general eligibility rules.

Applications for this payment will not open until 28 July 2021.

For more information click here.

For those in other states affected by lockdowns, we will be in contact with relief potentially provided to you and your businesses.

The team at i2 Advisory will be working from home during the lockdown and will therefore be available to support you during these times. Your advisor can be contacted by their email or mobile phone.

Let’s stay positive and look after each other.

19 November 2020

During the current COVID-19 lockdown our office will be closed, however, we are still available should you need to contact us.

We will all be working from home and available via email and mobile phone and we can arrange a meeting by Zoom if required.

With the current lockdown there are a couple of key issues to consider:

JobKeeper 2.0 – the eligibility for JobKeeper for the January to March 2021 period is based on your income for the current quarter. Therefore should the lockdown result in your turnover for the quarter ended 31 December 2020 being 30% below the turnover for the December 2019 quarter you will be able to claim JobKeeper for your employees from January to March 2021.

Staff Wages – we have sought specialist advice for our clients from Strategic Employee Relations in relation to employer’s obligations to payment of staff who are unable to work due to the lockdown. Click on this link to view their Guidance Notes for your reference.

Should you require any assistance during this time, please do not hesitate to contact us via email at admin@nulli2advisory.com.au.  However, most importantly, stay safe and hopefully, the lockdown only lasts for a short term.

Kind Regards
i2 Advisory

19 November 2020

Employers may be faced with a situation where they are required to temporarily shut their business as a result of a State or Federal Government lockdown to combat COIVD-19.

An employer is highly likely to be able to “stand down” their employees “without pay” if a temporary lockdown does occur.

What is a stand down?

Employers have the ability to unilaterally stand down employees without pay if they cannot be usefully employed due to “a stoppage of work for any reason the employer cannot reasonably be held responsible” such as a Government lockdown.

A stand down means that an employer does not have to make an employee redundant but rather “pauses” their employment.

Contracts of employment, modern awards or enterprise agreements may contain different stand down provisions so it is important to check these instruments before implementing a stand down.

Process to implement a stand down

The below outlines a recommended process to implement a stand down:

Step 1: Check any contract of employment, applicable modern award or enterprise agreement for specific stand down provisions;

Step 2: Draft a stand down letter;

Step 3: Meet and provide an employee with the stand down letter. Explore ways to mitigate the impacts such as taking annual leave, annual leave at half pay, long service, banked TOIL or RDOs;

Step 4: Keep in touch with the employee on stand down to check on their welfare and bring them back to work when they can be usefully employed;

How long can a stand down last?

There is no time limit on a stand down and advice should be sought if a stand down becomes prolonged;

Further questions?
Every situation is different and the above is provided as general guidance. Please do not hesitate to contact Zev Costi on 0433 876 233 or at zev@nullstrategicemployeerelations.com.au if you have any questions.

29 September 2020

The first round of the JobKeeper subsidy ended on 27 September 2020. For those that have been eligible to receive it, it has been a welcome boost to help businesses through what has been an uncertain time.

However – where to now?

With the extension of the JobKeeper rules passed into legislation (colloquially dubbed “JobKeeper 2.0”), businesses need to consider their eligibility under these new rules. This includes businesses who were previously ineligible that may now be eligible, as well as those businesses who have been receiving JobKeeper payments to date.

JobKeeper 2.0 vs JobKeeper 1.0

What remains the same?

• Access for businesses, not for profits, eligible business participants and religious institutions/practitioners
• Decline in turnover percentage thresholds (i.e. 15%, 30% or 50%)
• The need to satisfy wage condition rules
• Monthly reporting of turnover to the ATO
• Integrity rules
• The meaning of eligible employee and eligible business participant
• The rule preventing more than one  employer claiming in respect of the same employee
• The enrolment process

What changes?

• The test periods and method of calculation
• Modifications to the ‘Decline in Turnover Test’
• Tiered rates of payments
  • 28 September 2020 to 3 January 2021 (Extension 1)
    • Tier 1 = $1,200 per fortnight
    • Tier 2 = $750 per fortnight
  • 4 January 2021 to 28 March 2021 (Extension 2)
    • Tier 1 = $1,000 per fortnight
    • Tier 2 = $650 per fortnight
  • ‘Tier 1’ applies to eligible employees who worked 80 or more hours in the 4 weeks of the pay periods before 1 March 2020 or 1 July 2020 OR eligible business participants who worked 80 or more hours in the 4 weeks of the pay periods before 1 March 2020
  • ‘Tier 2’ applies to all other eligible employees and eligible business participants

What do I need to do?

• Assess eligibility – are you still (or now) eligible? You will need to enrol if you are eligible.
• Does your business meet the relevant decline in turnover test for the September Quarter?
• Determine eligible employees and the payment ‘Tier level’ they are eligible for based on their reference period
• You have until 31 October 2020 to meet the wage condition (i.e. top-up employees if required) for fortnights ending in October for eligible employees – see Fig 1
• If eligible, you will need to ensure the monthly declarations are lodged with the ATO before the 14^th day after the end of each month to receive your payment

What do I need to do in my payroll software?

• Identify the eligible employees and enrol them as JobKeeper participants (only if new to the JobKeeper scheme)
• Assign a Tier 1 or Tier 2 payment rate to each eligible employee
• For more guidance click your accounting software link below
  • Xero
  • MYOB AccountRight
  • MYOB Essentials
• For those businesses no longer eligible for JobKeeper payments or for individual employees which may no longer be eligible under the JobKeeper extension, you will need to process this in your relevant software by ‘stopping’ JobKeeper payments
• Without doing the above as it applies, Single Touch Payroll filing may be rejected

Fig 1 – JobKeeper Fortnight Calendar

We are happy to assist with any of the above from assessing your eligibility as an employer and identifying the eligible employees and/or business participants that you can receive payments for.

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.
DISCLAIMER: This summary is for general use only and should not be relied upon or taken to constitute advice. Further, it is based on available information which is subject to change.

30 August 2020

Many residential rental property owners have had their rental income affected by COVID-19. As a result of this income year not being business as usual, the ATO has provided answers to some typical scenarios that may crop up in this area for tax time.

Q: If tenants are not paying their full rent of have temporarily stopped paying rent as their income has been affected due to COVID-19, can a property owner still claim deductions on their rental property expenses?

A: Yes. If tenants are not meeting their payment obligations under the lease agreement due to COVID-19 and you continue to incur normal expenses on your property, then you will still be able to claim these expenses in your tax return.

Continue reading “COVID-19 and residential rental property claims” →