Month: October 2021

Economic Stimulus 2021 – Latest Government Incentives – What can your business receive?



All states and territories

JobMaker Scheme

The JobMaker Scheme offers an incentive for small- and medium-sized businesses to expand their workforce and employ younger Australians in need of a job and, in turn, deliver growth potential for those businesses.

Eligible employers must register with the Australian Taxation Office (ATO) who are administering the scheme. JobMaker Hiring Credits are paid each quarter – from 1 February 2021 – for each eligible additional employee hired from 7 October 2020 until 6 October 2021.

Eligible employers may receive a JobMaker Hiring Credit of $200 a week for an employee aged 16 years to 29 years of age AND $100 a week for an employee aged 30 years to 35 years of age.


SME Recovery Loan Scheme

The SME Recovery Loan Scheme was developed to aid small- and medium-sized enterprises that have an annual turnover of less than $250 million. All applicant businesses must have accessed JobKeeper during the first quarter between 4 January 2021 and 28 March 2021.

A loan under the SME Recovery Loan Scheme may be used for a broad range of business means, including but not limited to:             What is on offer? Loans issued under this scheme may NOT be used for purchasing residential property, for purchasing financial products, to lend to another entity nor to lease, rent or hire existing assets that are more than 50 per cent depreciated.


New South Wales

NSW Small Business Fees and Charges Rebate

Financial incentives offered by the NSW Government include eligible businesses being offered up to $1500 in rebates to offset the cost of specific NSW state and local government fees and charges incurred during the running of a business.

Sole traders and small business owners must: Whilst running a business, NSW state and local government fees and charges befall most small business owners and sole traders: costs such as council rates, outdoor seating fees, event fees, food authority and liquor licences and tradesperson licences.

Eligible applicants can lodge multiple claims – as these types of expenses arise and are paid – until the $1500 rebate cap is reached.

The NSW Government stipulates that for a fee or a charge to be eligible, it must be due and paid from 1 March 2021.

There are some costs that may NOT be claimed:
NSW Performing Arts COVID-19 Support Package

Urgent financial assistance is available now for the performing arts industry, including venues, producers, promoters who have had to postpone or cancel performances due to public health ordered restrictions from 26 June 2021 to 30 September 2021.


COVID-19 Business Support Hardship Review

If your business or not-for-profit organisation was not eligible for the 2021 COVID-19 business grant, COVID-19 micro-business grant or JobSaver payment, you may still be able to access financial support by submitting your details to the COVID-19 business hardship review panel.

Businesses that did not meet the eligibility criteria for the COVID-19 business support schemes, and businesses that had their applications refused, may now be eligible to apply to the panel for special consideration. Businesses must be able to demonstrate financial hardship as a result of NSW public health orders.


2021 COVID-19 Land Tax Relief (Jul – Dec 2021))

NSW residential and commercial landlords who provide rent relief – between 1 July 2021 and 31 December 2021 – for tenants experiencing financial hardship can apply for up to 100 per cent land tax deduction for the 2021 land tax year. This financial relief is intended to reduce a landowner’s land tax payable for 2021.

A commercial landowner must be leasing land to a commercial tenant with an annual turnover of up to $50 million and who is eligible to receive a COVID-19 Micro-business Support Grant, the 2021 COVID-19 NSW Business Grant and/or the JobSaver Payment.


Dine & Discover NSW Vouchers

The NSW Government continues its Dine & Discover NSW voucher program. These vouchers can be used at participating NSW businesses in the hospitality industry. Any NSW resident aged 18 years and over may apply for the vouchers.

Each applicant may receive:

2 x $25 Dine NSW vouchers for takeaway meals, restaurants, cafes, bars, wineries, pubs and clubs, as well as,

2 x $25 Discover NSW vouchers for entertainment, recreation, cultural institutions, live music events and arts venues.

Vouchers are available to all NSW residents aged 18 or over and are valid to 30 June 2022.

Takeaway businesses are now eligible to register for the scheme. For more info visit the link below.

For more info visit https://www.service.nsw.gov.au/transaction/register-business-dine-discover-nsw 

NSW Payroll Tax Relief

NSW payroll tax liabilities are currently deferred for all NSW employers until 14 January 2022.


The NSW Government has announced – not yet finalised – a financial incentive to assist businesses with payroll tax during the 2021-22 financial year. For payroll tax customers with a total 2021-22 Australian wages amount of up to $10 million and whose annual turnover can be shown to have declined by at least 30 per cent, their annual payroll tax liability would be reduced by 50 per cent.

The NSW Government will provide full more information on this 50 per cent reduction when the 2021/2022 annual reconciliation becomes available.

For more info visit https://www.revenue.nsw.gov.au/news-media-releases/covid-19-tax-relief-measures/covid-19-coronavirus-and-payroll-tax

NSW Accommodation Support Grant

Accommodation provider support payments are now available for eligible tourism accommodation providers that have lost business during the school holiday period. Assistance will be based on the number of cancelled room nights.

Two different grants amounts are available: Eligibility
Alfresco outdoor dining grant

The NSW Government has announced a new initiative to support food, beverage, entertainment, arts and cultural businesses impacted by COVID-19 and the recent lockdown.

The Alfresco Restart package will include $5,000 grants for 5,000 hospitality businesses to use towards outdoor dining.

For more information on outdoor dining, visit the NSW Government's website.

More information on the Alfresco outdoor dining grant will be available soon.

Summer Holiday Stock Guarantee

The Summer Holiday Stock Guarantee grant is part of the Economic Recovery Strategy and aims to give business owners the ‘confidence’ to navigate reopening and the months that follow.

Eligible businesses with a turnover rate between $75,000 and $50 million can apply for a grant of up to $20,000 to compensate for loss of perishable stock or claim $10,000 for reduced capacity to sell non-perishable items in the event of a local lockdown.

Additional information on the stock guarantee and rebate will be available soon.

Queensland

 2021 COVID-19 Business Support Grants | Queensland

A joint Queensland and Australian Government support package for Queensland businesses has been announced. The package includes support for non-employing sole traders and expands on support for eligible small and medium businesses, and large tourism and hospitality businesses.

Funding amounts will be based on the payroll size of eligible businesses and not-for-profits:
Tourism and Hospitality Sector Hardship Program

The $110 million Tourism and Hospitality Sector Hardship Program will provide grants to both eligible tourism and hospitality businesses, and major tourism attractions and experiences facing significant financial hardship as a result of COVID-19 travel restrictions and interstate lockdowns.

There are 2 types of grants available:
COVID-19 Border Business Zone Hardship Grant

Businesses located in the border zone that are eligible for a COVID-19 Business Support Grant may receive additional funding if they can demonstrate being impacted by the QLD-NSW border closure.

Areas eligible for border business zone support include:

Coolangatta, Currumbin–Tugun, and Currumbin Waters

border towns of Wallangarra, Goondiwindi and Mungindi (Queensland)


Victoria

Commercial Landlord Hardship Fund 3 | Business Victoria

Eligible small landlords and their tenants must have agreed a rent waiver or non-payment of at least 50% of the agreed rent relief provided between 28 July 2021 and 15 January 2022 under the Commercial Tenancy Relief Scheme.

What do you get?

Grants of up to $6,000 per tenancy, and up to $10,000 for landlords experiencing acute hardship.


How can YML help?

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

Australia’s Company Tax Rate lowered to 25%



In the 2020-21 financial year the Australian company tax rate reduced from 27.5% to 26%. A further reduction from 1 July 2021 to 25% means eligible companies in the current financial year stand to pay this lower company tax rate of 25%.

A Federal bi-partisan decision means companies will benefit from the 25% tax rate five years earlier – than initially legislated for financial year 2026-27. New legislation now means a company that is a ‘base rate entity’ (BRE) from the 2017-18 income year or a small business enterprise (SBE) during the 2015-16 and the 2016-17 income years can apply for the lower company tax rate. Otherwise, the full company tax rate of 30% applies to all those who fall outside of these definitions.

To define who is eligible for reduced company tax rates, the BRE classification was created to be used from 1 July 2017. A BRE is defined after a test of a company’s passive income – such as interest, net capital gains, rental income, as well as dividends and royalties (some exceptions do apply).

Companies that are BREs must meet the following criteria for an income year: It is worth noting that Australia’s company tax rates may be applied to companies including corporate limited partnerships, strata title bodies corporate, public trading trusts and corporate unit trusts.

All other companies not classified as BREs will incur the full company tax rate of 30%. Notably, investment companies receiving only passive income and no trading income do not qualify for lower company tax rates.

In a company structure, individuals who draw money out of their company must declare that money as income (salary, wages or dividend) and this can affect the company’s right to tax deductions and reduced tax rates. In some instances, the Personal Services Income (PSI) rule may be applied. YML Group can guide you to determine your accessible income for the purpose of your company qualifying as a BRE.

If ever there was a time to incorporate a company or make hay while the sun shines in your existing company, now is the time and that means taking advantage of Australia’s lowest company tax rate of 25%. If you are unsure if your company is a BRE or SBE, then let YML Group assist you with making certain that your company can make the most of this opportunity. And if you want to start a company, YML Group has the expertise to set one up and ready you for the reduced tax rates and incentives a company has to offer.

How can YML help?

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

It’s time to apply for a Director Identification Number (DIN)



As part of the 2020 Budget – Digital Business Plan, the Australian Government requires all Australian company directors to mandatorily register for a Director Identification Number (DIN).

A DIN is a unique number assigned by the Australian Taxation Office (ATO) to a director for eternity, even if you change companies. A DIN your unique identifier. Any director of a company or of a registered entity under the Corporations Act 2001 must acquire a DIN. It is free to apply.

A Director Identification Number is: YML Group can advise you if you are unsure of your position in a company or whether you are required to apply for a DIN.

The new digital registry system, Australian Business Registry Services (ABRS), is maintained by the ATO and will enable names and certain details of company directors to be known to regulators, external administrators, shareholders, employees, as well as creditors and consumers.

The purpose of this DIN register is to help: A director will be able to view and update their details. From November 2021, a director may log in to ABRS online to do so.

Next Steps

The ATO requires all directors and would-be directors to register for a DIN.

A request for your Tax File Number (TFN) will be made of you and this will assist with the verification of your identity as part of the process of acquiring a DIN.

Should you need assistance with your application for a DIN, YML Group has the expertise to determine your company position status and to assist you with your DIN application.

How can YML help?

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