PAID Family and Domestic Violence Leave from 2023

Under Australia’s Fair Work Act, family and domestic violence is defined as violent, threatening, or other abusive behaviour by an employee’s close relative that seeks to coerce or control the employee and causes them harm or to be fearful.

Every year millions of Australian workers experience family and domestic violence that often affects their ability to effectively do their jobs and fulfil tasks assigned to them. These employees may feel stressed and be easily distracted in their workplace, potentially reducing their productivity.

If a perpetrator of abuse stalks an employee or harasses an employee at their place of work, then the risk of danger to all employees makes family and domestic violence a workplace health and safety issue.

The Australian government views family and domestic violence as a social problem, a problem to be dealt with by the community. With adequate support for affected workers, employers can mitigate the implications of family and domestic violence on their employees and on their businesses.

What is Family and Domestic Violence Leave?

Under Australia’s National Employment Standards (NES), the government has legislated that from 1 February 2023 employees are entitled to Family and Domestic Violence Leave, a type of leave provided to employees who are dealing with family and domestic violence.

It may be used by an employee to find a safe place to stay or live, to seek professional services such as those offered by medical and legal practitioners, and to attend court hearings and any other matters associated with their personal situation for the safety of themselves and their children.

Since 2009 Australian employees have been entitled to five days of unpaid family and domestic violence leave per year. From 1 February 2023 this entitlement will switch to 10 days of paid family and domestic violence leave per year.

Entitlement is available from 1 February 2023 for employees of non-small business employers (with 15 or more employees on 1 February 2023) and from 1 August 2023 for employees of small business employers (with fewer than 15 employees on 1 February 2023).

Note, until 1 August 2023, small business employees may still access five days of unpaid family and domestic violence leave.

The new leave entitlement is applicable to all employees – full-time, part-time, casual (after 12 months of regular work) – and may be taken by employees throughout each 12-month period of employment, commencing from the first day of employment in an organisation.

If this leave is not taken, it does not accumulate year to year, but it does renew in full on an employee’s anniversary of their employment start date at an organisation. This leave may be taken as one period of 10 days or as a separate day or days at a time.

How is Family and Domestic Violence Leave treated on Payroll?

In terms of accounting and payroll, employers are obliged to ensure that employees are paid their usual rate of pay for any paid Family and Domestic Leave taken.

Employers will need to check that their accounting systems are set up to record and track this leave appropriately. To protect an employee’s safety, employers must ensure that remuneration and its descriptions do not appear any differently from usual on an employee’s take-home payslip.

Employers should be aware of any relevant taxation and superannuation requirements related to remuneration for this leave and pay accordingly. Some employers might offer additional paid leave entitlements under enterprise agreements.

Other Employer Obligations

Employers are obliged:

• To not discriminate against nor penalise employees who take Family and Domestic Violence Leave.
• To ensure that any information relating to an employee’s family and domestic violence situation is kept confidential.
• To maintain adequate and relevant records of any Family and Domestic Violence Leave taken.
• To provide information to all employees about their entitlement to Family and Domestic Violence Leave.
• To provide support and assistance, including offering and instigating flexible working arrangements for employees as a right under the Fair Work Act.

Employers can familiarise themselves with the new legislation and its regulations to best support their employees by reading this guide Employer guide to family and domestic violence. To remain up-to-date, employers can subscribe to email updates.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your employer Family and Domestic Violence Leave obligations. 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.

Higher Interest Rates OR Options to Refinance your SMSF Loans?

The Reserve Bank of Australia (RBA) is serious about inflation in Australia. When RBA governor Philip Lowe appeared before Senate estimates recently, he was asked about possible mortgage rate increases. He replied, “if we don't get on top of inflation, it means even higher interest rates and more unemployment”.

In a climate of potential inflation woe, what can you do with your SMSF loans to mitigate the financial risk of higher interest rates?

At YML we have SMSF loans starting from an interest rate of 6.19%. We can also offer you an offset account to offset your SMSF loan.

Reach out to us NOW and learn more about how we can help you by calling us on (02) 8383 4466 and requesting a callback or making an appointment with the YML Finance Team.

How can YML help?

Talk to YML Finance Team today to see how YML Group can assist you with managing your SMSF loans. For more information, view Our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

How to Improve your Company’s Environmental and Social Impact

What is ESG?

Environmental, Social, and Governance (ESG) refers to a set of factors that can be used to provide an understanding of a company’s current and future environmental and social impact on the world. For companies today, ESG is a strategic differentiator in a crowded and competitive commercial market.

No longer is business about only producing a product and generating a return for investors. IBM’s 2022 CEO Study: Own Your Impact reports that “Almost half of CEOs say increasing sustainability is one of the highest priorities for their organisation in the next two to three years – up from roughly a third in 2021, an increase of 37% in just a year”.

ESG is a serious focus for many CEOs worldwide as their investors, employees, and consumers – a younger generation – are taking notice of organisations’ operations and their environmental impact. Such emphasis on ESG by companies is delivering positive business results, such as greater trust and better reputation among stakeholders, and consequently long-term financial gains.

To improve your business’s ESG, you will need to action these steps:

• Measure and assess your business’s current environmental impact, including carbon footprint, waste production, greenhouse gas emissions, energy-efficient technology, and renewable energy use.

• Determine and assess your business’s current social impact, such as diversity, inclusion, human rights, and community engagement activity.

• Review and assess your business’s current governance structure and practices, including accountability, decision-making, transparency, independent board of management, ethics, and regulatory compliance.

• Set quantifiable ESG goals to improve in all ESG areas.

• Develop an ESG strategy based on your ESG goals, including communicating your ESG agenda and improvements to all stakeholders, employees, investors, and the wider community. Concise and transparent language will ensure your goals and progress are clearly explained and better understood. Provide updates on your company’s website and through other online communication channels.

• Monitor your business’s ESG strategy and execution by preparing annual sustainability reports.

How does ESG benefit company growth?

Implementing an ESG strategy can help you grow your business in numerous ways. Incorporating ESG in to your organisation may improve your company’s reputation to increase consumer loyalty and consumer retention. Investors attracted to socially responsible companies see their values align and are more likely to invest for the longer-term, providing companies with investor stability. Employees may be more engaged and committed to greater productivity for a company that is conscious of its environmental and social impact and actively bettering its impact.

Next Step

To assist your company with fulfilling regulatory ESG disclosure requirements and with communicating your ESG agenda to your stakeholders, contact YML Group for its expertise in ESG strategy development.

How can YML help?

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

Welcome to YML Legal – Legal Support in English and Mandarin

Introducing YML Legal

Our new legal division can assist you with all your commercial legal needs. With decades of experience and in-depth industry knowledge, YML Legal offers support in both Mandarin and English to achieve the best legal outcomes for our clients. This gives you the confidence, and support to focus on and achieve your business’s targeted growth and financial goals.

YML Legal Services

Corporate Structuring and Transactions

Is your business involved in an acquisition or disposal or a joint venture? YML Legal can help you with all types of corporate transactions and corporate governance matters to ensure a positive result for your business.

Real Estate

Does your business invest in real estate or asset management? YML Legal can support you on any acquisitions, sales, leases, and other real estate transactions to smooth the way for your business to grow.

Cross Border Investment

Does your business pursue an investment strategy involving inbound or outbound foreign assets? YML Legal can help you navigate Australia’s regulatory frameworks and can apply for Foreign Investment Review Board (FIRB) approval for your business’s international investments.

Immigration and Hiring

Hiring a new employee from overseas on a visa? YML Legal supports your business throughout the entire visa application process, so you can focus on employing the most suitable candidate.

Estate Planning

Are you thinking about how best to leave things for the next generation? YML Legal works with you to craft robust legal agreements to achieve your financial and succession planning objectives.

Technology and Cyber Security

Is your business assessing its cyber security and privacy legal risk or looking to procure new technology? YML Legal has expertise in the full spectrum of technology, data, and privacy law for your peace of mind.

Dispute Resolution

Is your business dealing with fractious disputes? YML Legal can assist you in finding pragmatic solutions for your business.

How can YML help?

Talk to YML Legal today to see how YML Group can assist you with your commercial legal needs. For more information, view Our website and contact us on (02) 8383 4499 or by using our Contact Us page on our website.

Australian Taxation Agents require Clients to provide Photo ID

Identity breaches by nefarious people in our widening technological world is cause for the Tax Practitioners Board’s requirement for tax practitioners to verify their clients’ identities with a form of photo identification. This means greater protection for you of your personal and financial information and transactions.

To mitigate devastating financial consequences affecting Australians and the Australian economy, the Tax Practitioner Board asks tax agents to ensure that they adequately authenticate their individual clients’ identities. To achieve this, clients must provide evidence to their tax agent, including a form of identification that contains a photograph.

What you need to provide to your tax agent?

As an Individual seeking to engage a registered tax practitioner in your own right, you are required to provide your Full Name plus either your Residential Address or your Date of Birth. To do this, you will need to show original documentation as evidence:

An original or certified copy of a primary photographic identification document; or BOTH of the following:

An original or certified copy of a primary non-photographic identification document; and

An original or certified copy of a secondary identification document.

YML Group – Your registered Tax Agent

At YML Group we value our clients and, as directed by the Tax Practitioners Board, we wish to protect both your identity and our practice. You will soon receive an email from us requesting the necessary identification documentation to assist us with validating your identity with YML Group.

How can YML help?

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

End-of-Year Festive Season – Claims and Tax Exemptions

Australia’s tradition of celebrating the festive season culminates with end-of-year parties at commercial businesses across the nation, especially in 2022 following a hiatus. Employers keen to reward their employees with the bonhomie of a party, as well as gift-giving, with the right approach, can avoid or reduce tax obligations on the costs of parties and gifts. The Australian Taxation Office (ATO) sets out a complex tax treatment for festive season claims, including Fringe Benefits Tax (FBT). Here is a general summary for employers.

Party Time – How to apply the Minor Benefits Exemption

The rules around tax-deductible expenses when it comes to throwing a work-related party can be confusing. A staff party is classified as entertainment by the ATO. Entertainment is subject to FBT – at 47 per cent (47%) unless the Minor Benefits Exemption is used.

A minor benefit to an employee, and any associate of an employee, is exempt from FBT where it is not a reward for service, it is less than $300 (GST-inclusive) and it would be unreasonable for it to be treated as a fringe benefit. The ATO determines if a minor benefit would be unreasonable to be treated as a fringe benefit by looking at a range of criteria, including the infrequency or irregularity of a minor benefit and the practical difficulty of establishing the notional value of a minor benefit.

A seasonal weekday party held on business premises to which only staff are in attendance and at a cost of no more than $300 (GST-inclusive) per head is an example of how to throw a party that is FBT-exempt. No tax deduction or GST input tax credit may be claimed.

For seasonal weekday parties held on-site with staff, associates and/or clients, so long as the cost per head for food and drinks does not exceed $300 (GST-inclusive) per head, then these parties are also FBT-exempt. Employers might note that there is no FBT on benefits provided to clients.

Off-site seasonal parties, held on a weekday and at a venue that is not used for business, may also be FBT-exempt, so long as the cost per head is up to $300 (GST-inclusive). No tax deduction or GST input tax credit may be claimed.

Once a party’s cost per head exceeds $300, FBT at 47% is payable for employees and any associates of employees. The cost now becomes an allowable tax deduction.

Gifts Galore – What is exempt and what may be claimed?

Giving gifts to staff and clients to incite goodwill and festive cheer can be fraught with questions about tax exemptions and tax obligations on gifts.

To avoid paying FBT, firstly, a gift must not be considered entertainment, such as restaurant meals, concerts, sporting events, movie tickets and holiday accommodation but rather must be a non-entertainment gift such as gift hampers, flowers, sealed bottles of alcohol, beauty products, gift cards and store vouchers.

Second, a gift must cost less than $300 (GST-inclusive) to avoid paying FBT. A gift that meets these criteria is not only exempt from FBT, but a business may claim a tax deduction and a GST input tax credit.

If a non-entertainment gift exceeds the $300 threshold, it will incur FBT, but a tax deduction and a GST input tax credit may both be claimed. To minimise the amount of tax paid, keeping a non-entertainment gift below the $300 threshold is advisable.

Gifts to clients, irrespective of cost, do not incur FBT. No GST input tax credit or tax deduction may be claimed on an entertainment gift to a client. Therefore, to benefit from a GST input tax credit and a tax deduction, consider giving non-entertainment gifts to clients.

Are company partners and sole traders allowed to gift themselves a present?

No. Company partners and sole traders may not buy themselves a gift. These benefits are only for employees, any associates of employees and clients.

Festive Season Record-keeping – YML’s Bookkeeping is at your service

YML’s dedicated virtual bookkeepers understand Australian business, all financial processes and tax regulations, providing your business with financial information, processing, and management-level reporting at any given time of the day or night.

Make sure to keep all records related to entertainment, parties and gift benefits given to your employees and clients.

To assess your festive season costs and the tax implications of throwing your staff and clients a party and giving them gifts, contact YML’s bookkeeping service today.

How can YML help?

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

How to manage your rising monthly loan repayments

The Reserve Bank of Australia has increased the cash rate numerous times since May 2022. For anyone with a variable loan, this has meant rapid rises in interest owed. For many people, these rises stretch the household budget and cause stress as each repayment falls due to the lender.

YML’s reputable Finance Team can offer you a myriad of ways to ease the pressure of repaying your loan. With our insight in to the world of lending, you could soon be managing your monthly repayments despite rates continuing an upward trajectory for the foreseeable future in 2023.

Learn more about how we can help you by calling us on (02) 8383 4466 and requesting a callback or booking an appointment with our Finance Team.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with managing your monthly loan repayments. For more information, view Our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.   

Tax Audit Insurance – Why is it important?

In 2023 ongoing developments in artificial intelligence (AI), data matching and social media combine to make a powerful tool for the Australian Taxation Office (ATO) to compare lodged tax return disclosures with other taxpayer and financial benchmarks. This information gives the ATO greater insight in to which businesses – including small to medium enterprises (SMEs) – and which individuals might warrant an official audit of their financial transactions and records.

Businesses and individuals, particularly those who own rental properties, who operate trusts or manage a SMSF are all targets of the ATO’s ability to cross-check financial data against annual tax returns.

An inquiry or investigation of your company and / or your personal finances leads to costs associated with both the audit process and defending your position. Tax audit insurance is a safeguard against the substantial costs that such an audit might entail for your company and for you.

Professional fees, accounting and taxation work done in relation to a tax audit are covered under a tax audit insurance policy. These costs can be much higher than the charges paid initially to lodge your tax return and therefore tax audit insurance is a prudent purchase for companies, SMEs, self-managed superannuation funds (SMSFs) and individuals to make.

Minimise the financial impact of an audit

Any minor issue exposed by data matching could flag the ATO’s attention and place your business entities and you under scrutiny.

It can be costly to be represented if you are selected for review or audit. Depending on the unique circumstances any inquiry or investigation can grow to cost a considerable amount.

Being audited can require hours of work and be a time-consuming and stressful process. Time, stress and expense can be alleviated with the help of professionals and offset by tax audit insurance.

Generally, policies cover costs up to a predetermined limit. Some policies might offer retrospective protection, meaning that a policy also covers previously lodged tax returns. Please check with the policy underwriter for full details, inclusions and exclusions.

YML Group – as your registered Tax Agent – can help you

At YML we recognise how frustrating an audit could be for you. And we know how tax audit insurance can lessen the financial impact of an audit. We can help find the best policy for you. With tax audit insurance, we can respond to your audit matters on your behalf without a substantial financial drain on your business or you. You will soon receive an email from us providing you with the opportunity to take up audit insurance.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your tax audit 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.     

SMEs’ Obligation under Australia’s Renewable Energy Target (RET) Scheme

What is the MRET scheme?

Under the Renewable Energy (Electricity) Act 2000 (the Act), the Mandatory Renewable Energy Target (MRET) was established as a means of incentivising Australian businesses to buy renewable-sourced electricity as a percentage of their annual electricity usage. This percentage is specified yearly for liable small- to medium businesses (SMEs).

Who is liable?

A liable entity is an individual householder or company who makes a relevant acquisition of electricity, a relevant acquisition being defined – for small-scale technology users, generally – as acquiring electricity from the Australian Energy Market Operator (AEMO) for own use on site (wholesale).

In other words, a company becomes liable upon making its first purchase of electricity from the grid or electricity sourced directly from the point of generation. A company is thereafter required to report its relevant acquisitions annually in an energy acquisition statement.

What is the SRES scheme?

The small-scale renewable energy scheme (SRES), for small-scale technology installations like rooftop solar, solar hot water systems, small-scale wind operations, requires liable entities to purchase renewable energy to meet a nominal percentage target of gigawatt hours (GWh) of electricity annually under the SRES. (Note that the target for liable entities – generally commercial in nature – under the large renewable energy target (LRET) is 33,000 GWh of electricity annually from renewable sources).

The reason, under the Act, for specifying a fixed amount of electricity being sourced is to provide certainty. It is expected that together these targets – SRES and LRET – will exceed the set target for renewable energy consumption in Australia.

Electricity fed in to the grid is indistinguishable as having been generated by conventional or renewable sources. Therefore, the scheme allows for the trading of renewable energy certificates – known as small-scale technology certificates (STCs) under the SRES – to be purchased by liable entities to demonstrate that renewable energy was generated by liable entities.

How to purchase STCs?

STCs are awarded for the generation of electricity from small-scale renewable energy systems. When a liable entity under the SRES purchases STCs, the number of certificates is predetermined, meaning a company is buying its STCs upfront to cover the expected generation of renewable electricity over the lifetime of the technology, up to 15 years.

There is a benefit to the pre-purchase. It is possible for individual householders or companies to assign their STCs to the installing company of their technology system and, in return, receive a lower installation cost.

The trading of STCs can be done through the STC Clearing House for $40 each, a price cap, or through an open market, usually at a lower negotiated price. Registration with the REC Registry is necessary to proceed with creating STCs.

What is the REC Registry?

The Renewable Energy Certificates (REC) Registry is an online portal where the details and history of each REC created is recorded.

STCs must be created by a REC Registry account holder before they can be bought, sold or traded.

An account must be held on the REC Registry before being allowed to create new certificates or to view existing certificates. To apply for an account, visit REC Registry - Start applying for an account (rec-registry.gov.au). Fees may apply.

Is GST paid on STCs?

The purpose of the SRES is to incentivise individual householders and businesses to install small-scale renewable energy systems. No GST is paid on fees for registering on the REC Registry nor when a STC is created.

Subsequent sales, purchases and transfers of STCs may incur GST.

Help is available from YML Group

Contact our Chartered Accountants to help you navigate your path to securing STCs under the SRES. We have the expertise to help your business benefit from this scheme.

How can YML help?

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

Watch Out! You may be liable for a maximum criminal penalty of $13,200 if you have not acquired your Director ID Number by now.

Introduced in 2021, the Australian federal government’s Director Identification Number (DIN) scheme is designed to reduce illegal and unfair corporate activities, such as the creation of ‘dummy’ directors and company ‘phoenixing’.

The DIN is a unique 15-digit numerical identifier that remains with a director for a lifetime, including when a director changes companies.

Currently, despite acquiring a DIN as a company director being a legal requirement, the ATO reports that of the estimated 2.5 million company directors in Australia, over 1 million have yet to apply for their DIN. Are you one of these people?

Mandatory registration of all Australian company directors requires company directors to apply online by first registering for myGovID. This identity validation process is essential and must be done directly and personally by each individual director. Thereafter, applying for the DIN can be done via myGov. It is a free application.

It is important to remember that company directors must apply for a DIN themselves and not use a proxy. (See below for Steps to apply for a DIN)

Offences and penalties for late or non-acquisition of a DIN

ASIC enforces the legislative requirement of a DIN on directors. To avoid a substantial financial penalty for refusal or failure to obtain a DIN, you must reach out to the ABRS. Here are the four offences and their associated penalties that are upheld by ASIC under the Corporations Act 2001:

From 1 December 2022 the ATO will be taking a reasonable approach towards those directors who have intent to apply and with good reason have missed the deadline. “However,”, as stated by ABSR Deputy Registrar Karen Foat, "if we are reaching out to people and trying to support people to apply, and we find that people are deliberately not meeting those obligations, then that's when penalties can apply."

Steps to apply for a DIN

The ABRS directs you firstly to the myGovID app and then to apply through myGov. If you already have a myGovID, you can head straight to myGov. If you don’t have a myGovID, you can set one up. Use this link to learn how: How to apply for your Director ID (mcusercontent.com)

Another way to apply, if you live in Australia, is to call the ABRS and apply directly. You will be asked to verify your identity using your tax file number (TFN) and at least one identity document, as well as answer some questions. To call the ABRS, use this link: Contact us | Australian Business Registry Services (ABRS)

Am I a company director?

YML Group has the expertise to determine your company position status and to guide you through your DIN application.

There is no time to delay any further. If you are a company director, apply NOW for your DIN.

How can YML help?

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