Month: January 2022

ACT NOW – YML can help you with Phase 2 Single Touch Payroll (STP)



Under Phase 2 – the first expansion – of Australia’s Single Touch Payroll (STP) digital system, employers who need to report their employees’ remuneration to multiple government agencies will have this burden reduced. Consequently, employees who use Services Australia will receive accurate payments at the correct times. This change is considered a streamlining of the STP process to the benefit of both employer and employee.

What does STP Phase 2 mean for employers?

STP Phase 2 is all about centralising and requiring more detailed upfront information from employers via STP digital reporting.

In one way, Phase 2 will reduce the reporting burden on those employers who currently need to provide information to multiple government agencies because employees’ payments information will be required to be provided once via STP under Phase 2.

The major adjustment for employers will be, in the first instance of data entry, to accurately classify all payments made to an employee. Where previously, one figure reported was satisfactory, the ATO will require – under Phase 2 – a breakdown of all specific payment types. This comprehensive breakdown is expected to ensure that those payment types that affect social security are treated properly.

The ATO will then be able to share employees’ payment information directly with Services Australia.

Let YML’s Bookkeeping Service help you with STP Phase 2

STP Phase 2 advances businesses to a more comprehensive and extensive bookkeeping exercise. We will ensure that your STP report is completed satisfactorily and in full compliance with your ATO obligations. STP Phase 2 is all about accuracy, classification and timely reporting. Gain peace of mind with YML Bookkeeping Service and let us save you time spent stressing over the day-to-day financials.

YML’s specialist Australian-focused Bookkeeping Service is offered to you via Business Process Outsourcing (BPO). With the expansion – Phase 2 – of Single Touch Payroll (STP) in Australia since 1 January 2022, the financial reporting requirements of all Australian businesses have increased, but you can have a dedicated YML virtual bookkeeper – ready to chat with you anytime you want and as often as you need – to keep your business on track.

YML’s Bookkeeping Service is a leading virtual process manager of all aspects of bookkeeping. A high qualified, specially trained, Australian-focused bookkeeper is available to partner with you and your business to help you manage the requirement of additional data in your STP report under Phase 2. Our staff will manage your bookkeeping and stay connected with you via video chat or via phone as often as you choose.

When does STP Phase 2 start?

STP Phase 2 commenced on 1 January 2022, however the ATO has a flexible approach to compliance over the first several weeks of the year. The ATO has advised it will accept those businesses who comply with the Phase 2 reporting requirements up until 1 March 2022 to have met the deadline.

If your Digital Services Provider (DSP) applies to the ATO for a deferral because it needs longer to update its software to be Phase 2-enabled, then your business receives a deferral also and may be granted up until 31 December 2022.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with Bookkeeping for STP. For more for more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

Economic Stimulus 2022 – Latest Government Incentives – What can your business receive?



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.


NSW Small Business Fees and Charges Rebate

The small business fees and charges rebate has increased from $1,500 to $2,000. Eligible businesses can also claim road tolls for business use.

Financial incentives offered by the NSW Government include eligible businesses being offered up to $2000 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 $2000 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:



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. Landowners who have already applied for any of the previous relief periods, can also apply for the 2021 land tax COVID-19 relief (1 July 2021 – 31 December 2021) period provided all eligibility requirements are met.


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.

From 26 November 2021 Dine & Discover NSW increased from 4 to 6 vouchers.

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

Takeaway businesses are eligible to register for the scheme.


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.


Alfresco outdoor dining grant 

If you are a small or medium food and beverage business wanting to create or expand your outdoor dining area, you may be eligible for a $5,000 rebate under the NSW Government’s Alfresco Restart package.

The rebate is available to the first 5,000 eligible small or medium food and beverage businesses that register.

There are 2 steps involved in the Alfresco Restart rebate:

  1. Register for the rebate
  1. Claim the rebate

Summer Holiday Stock Guarantee Grant up to $20,000

As COVID-19 restrictions ease, the NSW Government is committed to supporting businesses to reopen, recover and invest in the future. The public health restrictions in response to the winter 2021 COVID-19 outbreak may have impacted on business confidence to reinvest and plan for the future.

Businesses in the retail and hospitality industries may be eligible to apply for either a single grant payment of up to $20,000 to compensate them for the loss of perishable stock, or a single grant payment of up to $10,000 to compensate them for non-perishable stock.

The application is not yet available as there is no Public Health Closure announced as this is the primary eligibility needed. The SME (small and medium enterprise) summer stock guarantee will help eligible retail and hospitality businesses and not-for-profit organisations recover the costs of lost stock if you are required by a NSW Government public health order to close for at least 7 consecutive calendar days between 1 December 2021 and 31 January 2022. There might be a chance that this would be extended.


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 view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Cryptocurrency – What are the Taxation Implications?



Money or fiat currency, legal tender issued by a government, is no longer the only ‘currency’ in the markets. Cryptocurrency, a digital asset using encryption to generate additional units and verify transactions, operates independently of a central bank or a government and, therefore, is subject to taxation when it is tendered, bought or sold.

What impact trading cryptocurrency will have on your annual income tax return will be determined by the ATO and this financial year, the ATO has its focus on cryptocurrency traders, so it is worthwhile understanding some important points about how the ATO handles cryptocurrency and taxation.

The cryptocurrency space is evolving and the ATO’s rules and laws may change. For now, here is a summary:

Cryptocurrency includes Bitcoin and other crypto- or digital currencies with similar characteristics to Bitcoin. The profit, calculated in Australian dollar (AUD) amounts, you make when you exchange cryptocurrency for fiat currency or spend cryptocurrency on goods and services may be deemed taxable by the ATO.

Taxable cryptocurrency profit is determined in different ways:

  1. Income derived from trading cryptocurrency as a business or as a professional cryptocurrency trader: cryptocurrency profit may be treated as business or as personal income and therefore be subject to a relevant personal or business income tax.
If your business accepts cryptocurrency as payment for goods and services, then the value calculated in AUD must be declared as part of your business’s income.

If your business uses cryptocurrency to make purchases for your business, then the value calculated in AUD may be tax deductible, based on market value eligibility for any deduction.

If your business pays an employee using cryptocurrency, then a salary sacrifice would mean the payment is classed as a fringe benefit and taxation would be determined subject to the Fringe Benefits Tax Assessment Act 1986. Without a salary sacrifice arrangement, the payment would be classed as normal salary or wages and PAYG taxation on the value calculated in AUD would apply.

In short and in general, cryptocurrency profit made through business dealings will be assessed by the ATO and considered to be income where the activity (exchange) occurred in a business-like manner or with a commercial nature.

  1. Personal gain where cryptocurrency resulted in a profit through personal investment: cryptocurrency profit from an investment classed as an asset or property may therefore be subject to capital gains tax (CGT).
If you have bought cryptocurrency for the purpose of an investment and you dispose of that investment in ways such as:

Then, the disposition of your cryptocurrency, in ways such as these, that yields a capital gain could attract a CGT obligation.

If, however, you hold your cryptocurrency for more than 12 months before selling or trading it, you could be entitled to a 50% CGT discount when you dispose of any of or all your cryptocurrency holding.

Personal use of cryptocurrency, such as purchasing Bitcoin or a similar cryptocurrency for the purpose of buying an item or paying for a personal service online, is generally not regarded by the ATO as an investment, an asset or property. Be aware that the longer you hold cryptocurrency, the more likely it will be classed as an investment.

Make sure that you declare all your cryptocurrency transactions to the ATO, just in case there is a tax implication on a transaction.

Minimising your tax on cryptocurrency

Consider the following tips whilst remaining compliant with ATO rules and laws:

Hold your cryptocurrency for 12 months or longer, so that you might be eligible for a CGT discount.

Plan your intention for and use of cryptocurrency before buying and research the corresponding and applicable tax implications.

Maintain accurate records of your cryptocurrency transactions, so that you will be able to readily disclose your personal or business income and any profit gains or losses. Remember, cryptocurrency transactions are traceable.

Record-keeping includes noting:

And holding on to:

Stay ahead and keep on top of your tax obligations by consulting YML Group which has the expertise to help you maintain your cryptocurrency records and to work out the tax implications of your cryptocurrency transactions.

How can YML help?

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