Month: November 2020

Would your business withstand one of its key people falling ill or dying?



‘Key Person’ insurance is an insurance policy taken out and owned by a business to protect a business from the loss of an important – ‘key’ – person from a company. Such a loss might be caused by death, total and permanent disability or a critical illness.

A ‘key’ person is someone whose work within a business is critical to the financial wellbeing of the company or whose work generates a major portion of the company’s profits. It might be anyone from a company director to a salesperson, but they must be someone who would be considered irreplaceable in the short term.

When a ‘key’ person’s value to a business is measured in years of experience and essential skills, the impact when that person is no longer there can be consequential, resulting in falls in revenue, profits and even goodwill with customers and shareholders.

Human assets, just like material assets, are crucial to a company’s financial health, so insuring against the loss of them is equally vital. ‘Key Person’ insurance is a standard Life Insurance, TPD Insurance or Trauma Insurance policy, active during a ‘key’ person’s employment at a company. It compensates a company with a fixed amount, rather than covering actual losses incurred, however this insurance policy can make a marked difference to the continuity of a healthy business after the loss of a ‘key’ person.

The purpose of ‘Key Person’ insurance must be attributed to: There are tax implications to holding a ‘Key Person’ insurance policy, based on its main purpose: Succession planning, making sure you have a suitable replacement for any key role within your business, means preparing for workplace challenges such as the loss of a ‘key’ person. An essential part of succession planning is putting in to place safety nets and ‘Key Person’ insurance would count as economic security.

It would be reassuring to know that your business is adequately protected, so you will need to estimate the value of a ‘key’ person to your business. This will help you decide the level of cover needed in the insurance policy.

All businesses need to minimise their financial risk, so to be certain of your ‘Key Person’ insurance variables, consider seeking certified financial advice. YML Group’s Financial Planning can review your current insurance strategy, including ‘Key Person’ insurance.

How can YML help?

Talk to our YML Financial Planning Team today to see how YML Group can assist you with your ‘Key Person’ insurance policy. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

NSW State Budget 2020-21 – Economic Stimulus Packages



The NSW State Government’s 2020-21 Budget contains economic stimulus packages to start revitalising the NSW economy post-COVID-19-pandemic. The State Government’s plan is to lay a foundation for sustained growth by supporting businesses with packages designed to make it easier to rebuild and to employ workers. Job creation is at the forefront of this year’s Budget.

NSW’s Economy

Suffering its first recession in 30 years, NSW has incurred a state debt that is estimated to peak at $104 billion in 2023-24. As revealed by State Treasurer Dominic Perrottet, NSW is carrying an historic $16 billion Budget deficit. With the Budget only likely to return to surplus in 2024-25, the State Government is taking action to overhaul some areas, such as Payroll Tax and Stamp Duty. The Stamp Duty scheme must wait for a public consultation period, but Payroll Tax sees immediate changes.

Payroll Tax Cuts

Retrospective from 1 July 2020, upon amendment of the Payroll Tax Act 2007, the following apply:



Non-Payroll Tax-paying Businesses Benefit

To reduce the cost of doing business and help business investment, small- and medium-sized businesses (SMEs) – not obligated to pay Payroll Tax – will benefit from this Budget with the commitment by the State Government to spend nearly $500 million on digital vouchers to help cover the cost of any government fees and charges between April 2021 and June 2022.

SMEs can access this stimulus package through MyService NSW as a rebate. Once a SME makes a payment of government fees and/or charges, a digital voucher will be provided to a SME.

Job Plus Programme – Payroll Tax Relief

From this month, between 15 December 2020 and 30 June 2022, a new Jobs Plus Programme will be run to boost economic growth by attracting businesses from interstate and overseas to invest in NSW, either by expanding in to NSW or relocating office to NSW.

By making NSW attractive for business it is hoped that NSW can reposition itself to be a more competitive national and global economy and create or support 25,000 jobs. The Jobs Plus Programme will see $250 million spent by the State Government in Payroll Tax relief among other initiatives.

Companies that creates at least 30 net new jobs may be eligible for Payroll Tax relief for up to four years for every new job created.

REMINDER – JobMaker Hiring Credit

JobMaker Hiring Credit, a scheme to help increase employees in businesses, is newly available to eligible employers over 12 months from 7 October 2020 for each new job created.

Eligible employers can receive:

JobMaker Hiring Credit is capped at a maximum of $10,400 per additional new job created.

Employees must:

How can YML help?

We hope that this guide helps you to navigate the 2020-21 NSW State Budget. Please talk to our Accountants today if you would like to engage YML Chartered Accountants to manage your ‘road to recovery’. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.

JobKeeper 2.0 – Extension 2 Commencing Soon



REMINDER that Extension 1 still applies from 28 September 2020 until 3 January 2021 and Extension 2 starts next month from 4 January 2021.

An employer may be eligible to access JobKeeper 2.0 Extension 2, a temporary Australian Government wage subsidy for each eligible employee, at lower rates than Extension 1 from 4 January 2021 until 28 March 2021.

Whether you have already accessed JobKeeper or are new to exploring your eligibility, since JobKeeper 2.0 started, it is important to know that employers of previously eligible businesses will need to reassess their eligibility under a new set of requirements again in early January 2021.

Employer Eligibility:

From 28 September 2020, to receive JobKeeper 2.0, you must be an eligible employer or business.

To be eligible, your business is covered by the Fair Work Act and your business qualifies for JobKeeper – an Australian business employing at least one eligible employee during a JobKeeper payment period – and your business satisfies the actual decline in turnover test for the relevant quarter using actual sales (not projected sales).

You might need to demonstrate the relevant decline in turnover with a certificate from an accountant or a statutory declaration if you have a small business with fewer than 15 employees.

If you meet the criteria to receive JobKeeper 2.0, then you may give a JobKeeper enabling direction (such as changing work hours, duties and/or location – if reasonable in all the circumstances) under the Fair Work Act.

JobKeeper 2.0 Extension 2 rates from 4 January 2021:

$1,000 (before tax) per fortnight until 28 March 2021 – for those employees who worked 80 hours or more in the four weeks prior to 1 March 2020 or 1 July 2020

$650 (before tax) per fortnight until 28 March 2021 – for those employees who worked fewer than 80 hours in the four weeks prior to 1 March 2020 or 1 July 2020.

Under JobKeeper 2.0, employers will continue to pay a proportion of their employees’ wages because the minimum wage condition applies.

If you would like YML to manage Extension 2 of the JobKeeper 2.0 incentive process for you, please do the following urgently before 14 December 2020:


For more info, visit the ATO website: https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-extension-announcement/

How can YML help?

We hope that this guide helps you to access the JobKeeper 2.0 scheme independently if that is your preference. Alternatively, please talk to our Accountants today if you would like to engage YML Chartered Accountants to manage an application on your behalf. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.

Did you know YML Group offers CFO Services?



YML Group is at the forefront of accounting, finance and business services and CFO services is one of our most valuable tools for Australian businesses. Our CFO services within our Business Advisory unit can lead your business towards a more robust and growth-focussed future.

What can a CFO do for your business?

A CFO is responsible for sounding out your company’s financial interests. A CFO will develop relationships between your business and third parties, such as banks, investors, suppliers and the Australian Taxation Office (ATO), giving you back your time to attend to other executive-level tasks to drive your business forward.

The role of a CFO is results-driven. A CFO will use your company’s financial information to plan and develop strategies that can take your business towards a financially healthier future. Where there can be an overload of data and limited resources to export and analyse what is most important, a CFO can create a clearer picture for you.

A CFO makes sense of your business’s financials, enabling you to make better informed decisions. If what you need is a pathway to know when to grasp growth opportunities, then a CFO can make that possible for you. You will see a realistic view of all your resources, of your cash flow and of your finance requirements to pursue each stage of growth.

YML Group’s CFO services offer Microsoft Power BI Dashboards.

Power BI, developed by Microsoft, is a powerful, data-mining tool using business intelligence (BI). This software offers its users a business analytics service, enabling you to access and communicate your business’s information without a team of IT specialists.

Your company’s raw financial data can be used to create convenient and simple-to-use interactive visuals, such as reports, graphs and insightful models. These live, dynamic dashboards of information can be seen by relevant in-house and third party stakeholders.

Power BI  benefits include: When is a good time for a CFO in your business?

Whether, for example, you are in the process of setting up a business and needing to choose the most appropriate business structure, OR you are a well-established company waning under advancing technology for financial processes and new reporting protocols for the ATO, OR you are a rapidly growing company stretched for financial expertise to handle your company’s ‘growing pains’, accessing a CFO’s advice is timely.

Imagine a CFO with experience and expertise working directly with you, part-time and for less cost than hiring a full-time, in-house employee. YML Group offers you the right person to suit your company’s culture and your company’s industry.

Yoav Lewis, Founder and Chairman of YML Group, stated this year, “The fact that we are now separated, we need to be digital first. We need to deal with this COVID-19 situation using digital tools and that will enable us to help those clients who need it the most.”

Our CFO services will see you working directly with a CFO within YML Group, developing a professional relationship with you to appraise and progress your business’s financial future. Would you like YML Group’s CFO services to help you to further build your company?

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with CFO services. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.