cluff_accountants

COMMUNITY & BUSINESS SUPPORT PACKAGE - Ballarat City Council

Mon, 30 Aug 2021 02:33:08 GMT

The City of Ballarat is offering Ballarat businesses and community groups some financial relief under the “Community and Business Support Package”

Business may be eligible to receive a one-off grant of $500 and community groups receive $250.

To qualify, the applicant must evidence a turnover reduction of at least 30% over a four-week period since 27 May 2021, have an ABN and a payroll of less than $1m. In addition, the business must operate within the City of Ballarat municipal boundary.

Applications are now open and can be accessed here https://www.ballarat.vic.gov.au/supportpackage

'WORK FROM HOME' Tax Deductions

Fri, 07 May 2021 00:10:07 GMT

Following on from the 2020 financial year when a simplified calculation for working from home expenses could be claimed as a tax deduction, the 2021 financial year will see similar deductions.

As a reminder, the taxpayer has three options to claim working from home costs as follows:

claim a rate of 80 cents per work hour for all additional running expenses. This is known as the “short cut method”.
claim a rate of 52 cents per work hour for heating, cooling, lighting, cleaning, and the decline in value of office furniture, plus calculate the work-related portion of phone and internet expenses, computer consumables, stationery, and the decline in value of a computer, laptop, or similar device.
claim the actual work-related portion of all running expenses, which taxpayers need to calculate on a reasonable basis.

Expenses include the following:

electricity expenses associated with heating, cooling, and lighting the area from which they are working and running items they are using for work.
cleaning costs for a dedicated work area.
phone and internet expenses.
computer consumables (for example, printer paper and ink) and stationery.
home office equipment, including computers, printers, phones, furniture, and furnishings; you can claim either the:

- full cost of items up to $300
- decline in value (depreciation) for items over $300

It is important that the taxpayer has incurred the expense themselves for work purposes, they have not been reimbursed by their employer and that they are able to substantiate the expenses with a receipt.

Director Identification Numbers (DIN)

websites@getbirdeye.com.au (Anthony Van-Eyk) — Fri, 16 Apr 2021 02:19:38 GMT

The Federal Government is establishing a new Australian Business Registry Services (ABRS) to unify ASIC’s 31 business registers to be administered by the Australian Taxation Office.

Director Identification Numbers will be the first new function of the ABRS, and this requirement will be a new requirement for all company directors.

The director DIN will be a unique identifier which will identify the director forever, and the director will retain it even if they cease to be a director, change names or move overseas or interstate.

The practice if Illegal phoenixing, i.e. moving a company’s business from one entity to another without paying outstanding liabilities, will be a major focus of the new DIN process, and will assist to identify those dishonest directors who are doing the wrong thing.

According to the ATO website, directors don’t currently need to do anything, but the ATO said it will soon begin testing the new application process to deliver the registrations. When it’s time to apply, the ATO said directors will be able to use ABRS online services and will sign in using the myGovID app.

Single Touch Payroll Changes

websites@getbirdeye.com.au (Anthony Van-Eyk) — Thu, 08 Apr 2021 23:49:57 GMT

From 1 July 2021, small employers with closely held payees will need to report their closely held payees through Single Touch Payroll (STP).

ATO concessions for these employers will cease, and from that date the new STP rules will apply.

Closely held payees are defined as someone who is directly related to the entity that they receive payments from and include family members, company directors and beneficiaries of a trust.

There are limited options regarding the reporting including reporting actual payments when they are made, and in some cases, quarterly reporting with a reasonable estimate.

The Small Business Digital Adaptation Grant through the Victorian State Government may provide a grant up to $1200 in some circumstances may assist some employers to access digital products including accounting software. This may assist some employers to find a solution to STP compliance.

State Government announces support for businesses impacted by lockdown

websites@getbirdeye.com.au (Anthony Van-Eyk) — Fri, 12 Mar 2021 04:09:50 GMT

Applications for the Victorian Government’s Business Costs Assistance Program close at 11.59pm on 16 March 2021.

One-off grants are still available to support eligible small businesses and sole traders in specific sectors that have incurred costs as a direct result of the circuit breaker action announced on 12 February 2021.

Businesses with an annual payroll of up to $3 million, whether they have employees or not, can receive grants of $2000.

Full details on eligibility and how to apply are set out on the Business Victoria - Business Costs Assistance Program webpage .

For further advice, please call the Business Victoria hotline at 13 22 15 before the closing date.

If you have any queries, please contact Cluff Chartered Accountants.

Tax Depreciation

websites@getbirdeye.com.au (Anthony Van-Eyk) — Tue, 16 Feb 2021 00:01:34 GMT

Australian Small Businesses (i.e. aggregated turnover of less than $10m) may be disadvantaged by not having the ability to opt out of the full expensing measures. This means that small business are not given the flexibility to choose whether to apply the new rules, and are required to fully expense their general small business pool balances on 30June 2021. They cannot choose not to write off the pool balance.

This may have an adverse effect on businesses whereby they have already suffered business downturn or losses as a result of the pandemic. Although the businesses in most cases can carry forward losses as a result of the depreciation claim, profit or distributions which normally flow through to individual taxpayers may effectively lose the “tax free threshold” for the 2021 financial year and possibly beyond.

The peak accounting industry bodies have lodged a joint submission to Treasury asking for an amendment to allow small businesses to have the same flexibility as larger businesses in choosing whether or not to apply the full expensing provisions. This would be common logic for many small businesses, and hopefully the proposed amendments are adopted.

JobMaker Hiring Credit scheme open for applications

websites@getbirdeye.com.au (Anthony Van-Eyk) — Mon, 01 Feb 2021 05:53:04 GMT

Businesses will now be able to register for the JobMaker Hiring Credit scheme ahead of the first quarterly claim period starting in February next year.

Under the scheme, eligible businesses can access the payment for up to 12 months for each eligible additional employee they hire between 7 October 2020 and 6 October 2021, and will be able to claim up to $200 a week for each additional eligible employee they hire aged 16 to 29 years, and up to $100 a week for those aged 30 to 35 years.

Employees need to have completed a minimum average of 20 hours (worked or paid) per week during the time they were employed in the JobMaker period.

Employers are reminded that new employees must have received the Parenting Payment, Youth Allowance (Other) or Jobseeker Payment for at least 28 consecutive days (or two fortnights) within the 84 days (or six fortnights) of being hired to allow for a claim to be made by the employer.

Small Business Digital Adaptation Program

websites@getbirdeye.com.au (Anthony Van-Eyk) — Mon, 01 Feb 2021 05:47:41 GMT

Program Overview

The Small Business Digital Adaptation Program will allow eligible businesses to trial and then receive access to digital products, tools and training they can use to build digital capability in their day-to-day operations.

Businesses can start using a new product, like point-of-sale payment, or restore access to a lapsed product under this program. Upgrades to existing digital tools, like adding a shop to a current website, are also included.

Products currently available to businesses through this program include website, e-commerce, finance and digital business management tools.

Businesses will be able to register, and trial selected digital products from suppliers who have partnered with the Victorian Government, then choose one of these products to purchase. Once businesses have purchased a product, they can apply for a rebate of $1,200 to access the product for 12 months.

The program also offers free digital adaptation training and workshops to help registered businesses adopt and implement online tools in their business.

Spaces for the Small Business Digital Adaptation Program are limited.

You must register to be eligible for the program and access digital product suppliers.

For more information, read the information here .

Guidelines

Small Business Digital Adaptation Program Guidelines (PDF 362.33 KB)

Small Business Digital Adaptation Program Guidelines | accessible version (DOCX 1553.15 KB)

Registrations will remain open until funds are exhausted or until 11.59pm on 28 February 2021, whichever is earlier.

Coronavirus grants now tax free

websites@getbirdeye.com.au (Anthony Van-Eyk) — Mon, 01 Feb 2021 05:35:52 GMT

Legislation aimed at ensuring coronavirus small business grants are not subject to income tax has now passed both houses of Parliament.

The Treasury Laws Amendment (2020 Measures No. 5) Bill amends income tax law to make certain grant payments received by eligible businesses non-assessable non-exempt income so that these payments are not subject to income tax by the Commonwealth.

However, the grant must have been first publicly announced on or after 13 September 2020 by the relevant state, territory or authority, and must be directed at supporting businesses subject to certain restrictions regarding their operations.

Only entities with an aggregated turnover of less than $50 million will be eligible for the concessional tax treatment.

VICTORIAN GOVERNMENT QR CODE SERVICE

The Victorian Government QR Code Service is free for all Victorian businesses and venues. These records help contact tracers in the event a positive case of coronavirus (COVID-19) is identified. There are no ongoing costs for businesses, venues, or visitors who check-in. All check-in data is housed in secure databases managed by Service Victoria, the Victorian Government’s online hub for transacting with government. Unless DHHS contact tracers request data for coronavirus (COVID-19) contact tracing purposes, it is automatically deleted after 28 days. For more info click HERE.

Business Support Fund - Expansion Program

websites@getbirdeye.com.au (Anthony Van-Eyk) — Thu, 20 Aug 2020 04:32:35 GMT

Business Support Fund - Expansion Program

For qualifying businesses, the Victorian State Government is offering a grant of $10,000 for employing businesses in Metropolitan Melbourne and the Mitchell Shire (stage 4 restrictions), and $5,000 for employing business elsewhere in regional Victoria (stage 3 restrictions)

This grant is additional to the previous $10,000 grant offered earlier as part of the Covid-19 stimulus package which is now closed.

1 Standard Eligibility Criteria

1.1 To be eligible for the Fund, businesses must:

a) Operate a business located within Victoria; and

b) Be a participant in the Commonwealth Government’s Job Keeper Payment scheme1, and

c) Employ people and be registered with Worksafe on 30 June 2020; and

d) Have an annual payroll of less than $3 million in 2019-20 on an ungrouped basis; and

e) Be registered for Goods and Services Tax (GST) on 30 June 2020; and

f) Hold an Australian Business Number (ABN) and have held that ABN at 30 June 2020; and

g) Be registered with the responsible Federal or State regulator

1.2 Owners of businesses that do not employ people (non-employing businesses) are not eligible for funding through this Fund.

2 Other application information

2.1 Funding will be allocated through a grant process, through which businesses are invited to apply for a grant.

3 Grant funds may be used to assist the business, for example on:

• Meeting business costs, including utilities, salaries or rent;

• Seeking financial, legal or other advice to support business continuity planning;

• Developing the business through marketing and communications activities; or

• Any other supporting activities related to the operation of the business

The program will be open for applications until 11.59 pm on 14 September 2020.

Please contact Cluff Chartered Accountants if you have any queries or require assistance.

Victorian Government offering grants to small business employers participating in JobKeeper

websites@getbirdeye.com.au (Anthony Van-Eyk) — Thu, 28 May 2020 05:40:04 GMT

Are you in the JobKeeper program?

The Victorian Government are offering grants of $10,000 to small business employers that are participating in the JobKeeper program. The grant can be used for meeting operational costs including seeking financial advice to support business continuity planning. Applications close 1 June 2020. Call the team at Cluff Chartered Accountants for further information and assistance. If you are after information on other support the Victorian Government is providing businesses impacted by COVID-19, go to www.business.vic.gov.au

Stimulus Package (Covid-19)

websites@getbirdeye.com.au (Anthony Van-Eyk) — Mon, 30 Mar 2020 01:15:15 GMT

GOVERNMENT STIMULUS PACKAGE

Victorian Government offering grants to small business employers participating in JobKeeper

The Victorian Government are offering grants of $10,000 to small business employers that are participating in the JobKeeper program. The grant can be used for meeting operational costs including seeking financial advice to support business continuity planning. Applications close 1 June 2020. Click here for more information on the grant. If you are after information on other support the Victorian Government is providing businesses impacted by COVID-19, go to www.business.vic.gov.au .

Cash Flow boost for businesses

The Government is providing up to $100,000 to eligible small and medium sized businesses, and not-for-profits (including charities) that employ people, with a minimum payment of $20,000. Under the enhanced scheme from the first package, employers will receive a payment equal to 100 per cent of their PAYG withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to

$10,000. The payment will be available from 28 April 2020. The payments are tax free, there will be no new forms and payments will flow automatically through

the ATO. Small and medium business entities with aggregated annual turnover under $50 million and that employ workers are eligible. An additional payment is also being made from 28 July 2020. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments

received.

Increasing the instant asset write-off

From 12 March 2020, the Government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.

Accelerated Depreciation

The Government is introducing a time limited 15 month investment incentive (through to 30 June 2021) by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.

Apprentice Wage Subsidy

Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.

Household Stimulus Payments

On 12 March 2020, the Government announced it will provide a one-off $750 payment to social security, veteran and other income support recipients and eligible concession card holders. In addition to the $750 stimulus payment announced on 12 March 2020, the Government will provide a further $750 payment to social security and veteran income support recipients and eligible concession card holders, except for those who are receiving an income support payment that is eligible to receive the Coronavirus supplement. This second payment will be made automatically from 13 July 2020 to around 5 million social security, veteran and other income support recipients and eligible concession card holders. Around half of those that benefit are pensioners. The first payment will be made from 31 March 2020 to people who will have been on one of the eligible payments any time between 12 March 2020 and 13 April 2020.

Increased & Accelerated income Support

For the period of the Coronavirus supplement, there will be expanded access to the income

support payments listed above.

Expanded access: Jobseeker Payment and Youth Allowance Jobseeker criteria will provide payment access for permanent employees who are stood down or lose their employment. The expanded eligibility applies to:

sole traders

the self-employed

casual workers

Contract workers who meet the income tests as a result of the economic downturn due to the Coronavirus. This could also include a person required to care for someone who is affected by the Coronavirus.

Reduced means testing: Asset testing for Jobseeker Payment, Youth Allowance Jobseeker and Parenting Payment will be waived for the period of the Coronavirus supplement. Income testing will still apply to the person’s other payments, consistent with current arrangements.
Reduced waiting times:

The one week Ordinary Waiting Period has already been waived.
To further accelerate access to payments, the Liquid Asset test Waiting Period (LAWP) and the Seasonal Work Preclusion Period (SWPP) will also be waived for recipients eligible for the Coronavirus supplement. People currently serving a LAWP will no longer need to serve that waiting period.

Loans

The second stimulus package also announced the Coronavirus SME Guarantee Scheme where the Government will guarantee 50% of new loans issued by eligible lenders to SME’s to get access to working capital to help them get through the impact of the Coronavirus.

Some parameters to be provided to these lenders are:

Maximum total size of loans of $250,000 per borrower,
Loans will be up to 3 years, with initial 6 months repayment holiday, and
Loans will be unsecured.

Lenders still need to go through their normal credit assessment processes, and applications

need to be made directly with the bank.

DISTRESSED BUSINESS & INSOLVENCY

The Government will introduce amendments to temporarily relieve financially distressed businesses

by increasing the threshold at which creditors can issue a statutory demand and the time a company

has to respond to that demand. They will also provide temporary relief for directors from any

personal liability for trading while insolvent (to help companies deal with unforeseen events arising

from COVID-19). This is from the second stimulus package.

WHAT IS A DIVIDEND AND FRANKING CREDIT?

websites@getbirdeye.com.au (Anthony Van-Eyk) — Mon, 16 Sep 2019 14:56:57 GMT

If you own shares in a publicly listed company on the Australian Stock Exchange, you may receive a distribution of the profit of the company by way of a dividend. This is in proportion to the number of shares which the investor holds.

Dividends are not guaranteed and will depend on the company’s performance, cash flow and also potential capital expenditure. The declaration of a dividend is at the discretion of the company directors.

Dividends can also be issued by a private company, and also as a distribution from a managed investment. Some public companies allow dividends to be reinvested into the company in a dividend reinvestment plan to obtain more shares in lieu of cash.

Franking or imputation credits may accompany the dividends which means that tax paid by the company is passed onto the shareholder.

If you conduct your business through a private company, careful planning with your accountant can maximise your profit distribution and tax position.

SETTING UP A BUSINESS

websites@getbirdeye.com.au (Anthony Van-Eyk) — Mon, 16 Sep 2019 14:54:56 GMT

It is important that anyone setting up a business does so with some basic knowledge of what the statutory and compliance regulations are.

Some of the requirements include getting an ABN, GST registration (or not), BAS returns, wages, award rates, superannuation, WorkCover, business and domain name registration, legal, industry body requirements ,bookkeeping systems, marketing, insurance and many more.

It is also vital that the correct business structure (sole trader, partnership, company or trust) is established at the outset.

There are resources and checklists provided by some government departments including Small Business Victoria and Regional Development.

Asset protection is an important conversation that any one setting up a business should have with their accountant.