2022 Election Washup

8 June 2022

Following the election of the new Labor federal Government on 21 May, there are a number of tax and superannuation proposals that they have announced or existing measures they have committed to that may impact you and your business moving forward.

Some of course are subject to the passage of enabling legislation through the new Parliament.

Continue reading “2022 Election Washup” →

Single Touch Payroll 2: The time has come

9 April 2022 

In the May 2019 Federal Budget, the Government announced that Single Touch Payroll (STP) would be expanded to include additional information, building on the first stage of STP which was made compulsory for most employers from 1 July 2019.

For background, the STP regime is a government initiative which is designed to reduce an employer’s burden when reporting to Government agencies such as the ATO. Under the regime, employers report employee payroll information to the ATO each time they are paid via STP-enabled software.

Start date

The start date for Phase 2 reporting was 1 January 2022, however the ATO has advised that employers who provide the additional reporting required under Phase 2 by 1 March 2022 will be accepted as having met the deadline.

Digital service providers (DSPs) can apply for a deferral if they need more time to make changes and update their solutions. Such a deferral then automatically applies to customers of that provider. For example, Xero have advised that they have been granted a deferral until 31 December 2022. This means that all customers using Xero Payroll will also have until that date to report their first STP Phase 2 pay run. Check with your provider if a deferred start date applies.

For businesses that need more time to transition, you may apply for an extension beyond your software provider’s deferral. Registered accountants and bookkeepers will also be able to apply on your behalf.

On the compliance front, under Phase 2, genuine reporting mistakes will not be penalised in the first year until 31 December 2022.

Continue reading “Single Touch Payroll 2: The time has come” →

FBT Year-End Checklist

9 April  2022

March 31 marks the end of the 2021/2022 fringe benefits tax (FBT) year which commenced 1 April 2021. It’s time now for employers and their advisors to turn their attention to instances where non-cash benefits have been provided to employees, and also where private expenses have been paid on their behalf.

Although it will generally fall to your accountant to prepare the FBT return, it may not always be apparent to them from your software file or other records, all of the instances where you have provided employees and their associates (e.g. spouse) with a potential fringe benefit. To assist you in bringing these potential benefits to the attention of your accountant, following is a general checklist (non-exhaustive):

Cars

  • Did you provide or make available a car that your business (or an associate of the business) owned or leased, to an employee or their associate for private purposes?

Exemptions include minor, infrequent and irregular non-work-related use by an employee of certain commercial vehicles.

  • Did you as an employer reimburse expenses of an employee in relation to a car they owned or leased?

Exemptions include where the business compensates the employee on a cents per km basis for estimated travel and where the car has not been used for private purposes.

Loans

  • Did your business provide a loan to an employee or their associate?

Exemptions include where the loan is strictly related to meeting an employment expense (which must be incurred within sixth months of the loan being made).

Exemptions also include loans made by private companies to employees who are also shareholders but the loan is Division 7A compliant.

Continue reading “FBT Year-End Checklist” →

RAT and PCR Tests – favourable tax treatment for employers

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” →

On-boarding new employees

3 March 2022

With Australia now opening back up after the COVID restrictions, unemployment is tipped to fall to the lowest rate in just over 50 years – down to under 4%. If over the coming period you hire new staff, there are certain steps you should follow to cover off on your tax, workplace, and superannuation obligations.

Continue reading “On-boarding new employees” →

COVID-19 SA Business Support Grants Update

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

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.