Category: Newsletters

Superannuation Guarantee – Quarter 2 Late Payments Due and New 2022 Threshold Removal



Employers – Are you late paying your compulsory SGC?

Superannuation guarantee contribution (SGC) percentage for the 2021 financial year is 9.5 per cent. Superannuation guarantee is the compulsory contribution amount calculated on base salary paid to an employee in each quarter and payable by employers. From the 2022 financial year the SGC will increase to 10 per cent.

The maximum SGC base means employers have limited liability. For the 2021 financial year, the income per quarter threshold is $57,090 and for the 2022 financial year the income per quarter threshold will be $58,920.

Employers were obliged to pay SGC for Quarter 2 (1 October – 31 December 2021) to their employees’ superannuation fund accounts by 28 February 2022. Those employers who have not yet paid or who have not paid in full are being audited as information is now being sent by superannuation funds to the Australian Taxation Office (ATO).

Superannuation Guarantee Charge Statement – Due Date

It is important that employers notify the ATO of their late SGC payments via the ATO’s process of lodging a Superannuation Guarantee Charge Statement within 28 days of the due date of 28 February 2022 (that is, by 28 March 2022) and by also paying the Superannuation Guarantee Charge which is made up of: The ATO will more likely consider favourably those employers who make a genuine effort to meet SGC obligations, especially if an employer has a good record of past compliance. Where an employer manages to lodge their SGC Statement after the due date but prior to being notified by the ATO of non-compliance, the ATO may reduce or waive penalties.

$450 Income Threshold – Removal from 1 July 2022

As part of the changes to the superannuation guarantee contribution (SGC) announced in the 2021/22 Federal Budget, the SGC will be paid to all employees at the new rate of 10 per cent (commencing 1 July 2022) commensurate with employees satisfying relevant superannuation guarantee eligibility criteria.

The amendment to remove the $450 per month income threshold received Royal Assent on 22 February 2022 and will first apply after the 2022 financial year, benefiting casual and part-time workers who currently do not receive the SGC due to the $450 per month income threshold.

The changes required will be made through Single Touch Payroll (STP) and businesses must prepare to meet their new obligation of SGC payments being made to ALL their SGC-eligible employees – regardless of income level – on their payroll from 1 July 2022.

Next Steps

YML’s Chartered Accountants can help employers with SGC Statement preparation and lodgement by 28 March 2022 and with STP adjustments from 1 July 2022.

How can YML help?

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

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



2022 Small Business Support Program - NEW

If you’re a business, sole trader or not-for-profit organisation in NSW and you've been impacted by the Omicron wave of COVID-19, you may be eligible for a payment under the 2022 Small Business Support Program.

The program provides cash flow support to help eligible businesses survive the impacts of COVID-19 and maintain their NSW employee headcount.

Eligible businesses will receive one payment covering the 4-week period of February 2022. Businesses will not receive payment for January 2022.

If you’re an employing business, the payment will be equivalent to 20% of weekly payroll for work performed in NSW: If you’re a non-employing business, such as a sole trader, you may be eligible to receive a payment of $500 per week.

Eligible businesses can use funds to cover business costs incurred due to the impacts of the Omicron strain of COVID-19 in NSW. These costs may include: Applications close on 31 March 2022.

NSW Small Business Fees and Charges Rebate

The NSW Government has announced that the small business fees and charges rebate will increase from $2,000 to $3,000. Eligible employing businesses will be able to use the rebate against 50% of the cost of rapid antigen tests from late March. More information will be available soon.

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: Applications end on 30 June 2022.

Dine & Discover NSW Vouchers

The NSW Government has launched Dine & Discover NSW to encourage the community to get out and about and support dining, arts, and recreation businesses.

Once approved as a Dine & Discover NSW business, you’ll be able to accept and redeem vouchers straightaway. You'll be able to do this through the Service NSW for Business app.

Businesses that register to accept Discover NSW vouchers can also accept Parents NSW vouchers.

Takeaway businesses are eligible to register for the scheme.

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

Alfresco Restart Rebate

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 2. Claim the rebate NSW Commercial Landlord Hardship Grant

The NSW Government has announced that this grant has been extended until 13 March 2022. Applications for eligible landlords who provided rent relief from 15 November 2021 to 13 January 2022 are now open.

Grants of up to $3,000 per month (GST inclusive), per property, are available for eligible landlords who have provided rental waivers to affected tenants. Rent waived must comprise at least half of any rental reduction provided. The remaining portion may be a rental deferral. The grant does not apply to rent deferrals. For more information, see the guidelines.

Grants will be paid as a lump sum amount for the rent waived from: Applications close 31 May 2022

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.

Scheme will end on 6 October 2022.

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.

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.

Why wait for interest rates to go up before considering a fixed interest loan from 1.89% p.a.?



Now is a good time to consider a fixed interest loan whilst interest rates are low and before improvements in Australia’s economy result in the Reserve Bank of Australia (RBA) declaring higher interest rates. This might not be soon or before 2022, but Governor Philip Lowe of the RBA believes that over time with the economy moving towards full employment and more normalised inflation, interest rates will go up.

As rates continue to stagnate – from 1.89% per annum – and are unlikely to drop, homeowners and property investors should look to take the time to examine locking in a fixed interest loan.

A fixed interest loan usually has a cap on additional repayments, so you will need to read the fine print when fixing your loan.

Individual circumstances vary and you will need to consider whether a fixed loan is right for you, but it could save you money over the term of your loan.

To help you decide whether to fix your loan, consult YML Group for expert financial advice. With expert financial advice, a fixed loan can be an attractive proposition, especially now as Australia’s economic outlook is of a positive upswing.

How can YML help?

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

Transfer Balance Caps and what they mean for your Superannuation and Succession Plan



On 1 July 2021, the Transfer Balance Cap (TBC) was indexed for the first time to $1.7 million from the original $1.6 million limit which was introduced on 1 July 2017. Indexation of the TBC means there is no longer a single cap that applies to all individuals. Instead, every member has their own personal TBC of between $1.6 million and $1.7 million, depending on their circumstances. If you are already in receipt of a pension, it is important to review your personal TBC and seek help if you unsure how to calculate, or locate, your personal TBC.

The TBC not only imposes a limit on the amount of capital that you can transfer to the retirement phase of superannuation, but it also has an impact on what happens to your superannuation when you die. The $1.7 million TBC applies to pensions paid to your dependants after you die (called death benefit pensions or reversionary pensions) and it has a substantial impact on estate planning.

When it comes to the TBC, these are some of the main issues that you need to plan for in the event of death:

Given the significant shift in the landscape with respect to SMSFs and estate planning, it is also strongly recommended that trustees have their SMSF trust deed reviewed to ensure maximum flexibility when dealing with excess TBC amounts, rollover of death benefits, reversionary and child pensions. This should be done alongside the review of any binding death benefit nomination(s) you have in place to ensure that they too are valid and provide the certainty in how your death benefits will be dealt with upon your death.

The payment and tax treatment of death benefits paid from a SMSF has traditionally been a complex area and certified financial advisors like YML Group can help make this area clearer to understand.

How does the new TBC affect your superannuation and succession plan?

Consult YML Finance to help you review and assess your succession plan. YML’s expertise in superannuation will ensure you have all you need to know about how TBC will affect you.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your superannuation. For more information, view our website and contact us on (02) 8383 4444 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: 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.

1. How to apply?

 *Online application

    Applicants within Australia

    The fastest way to receive your director ID is to apply online.

    To complete your online application, you need the following information to verify your identity.
    • A myGovID with either a Standard or Strong identity strength. If you don’t have one, visit How to set up myGovID
    • An individual Australian tax file number (TFN). Providing your TFN is optional, but it speeds up the process.
    • Your residential address, as recorded by the Australian Taxation Office (ATO).
    • Answers to two questions based on details ABRS knows about you, see more details to verify your identity.
How to apply if you cannot get a myGovID?

If you can’t get a myGovID with a Standard or Strong identity strength, the best way to apply for a director ID will depend on your situation.

*Apply by phone

    Applicants within Australia

    You can apply by phone if you have:
    • an Australian tax file number (TFN)
    • your residential address as held by the Australian Taxation Office (ATO)
    • answers to two questions based on details ABRS knows about you, see more details to verify your identity.
    • two Australian identity documents – one primary and one secondary.
When you have the information you need to apply, Contact ABRS office.

*Apply with a paper form

    Applicants within Australia

    If you can’t apply online or over the phone, you can apply using a downloadable form– Application for a director identification number (NAT75329, PDF, 306KB). This is a slower process and you will also need to provide certified copies of your documents to verify your identity.

    Applicants outside Australia

    In addition to the information requested on the application form, you will need to provide certified copies of one primary and one secondary identity document.

          Primary documents
    • Foreign birth certificate
    • Foreign passport
    Australian full birth certificate (extracts and commemorative certificates are not acceptable) Australian passport (including passports that have expired in the past two years)

          Secondary documents
    • National photo identification card
    • Foreign government identification
    • Driver’s licence, as long as the licence address matches the address details on your application
    • Marriage certificate, but if you use this document to verify your change of name, you can’t use it as a secondary document.
    If you have changed your name, you must provide another document showing the change, such as a:
    • marriage certificate
    • deed poll
    • change of name certificate.
    Note:
    • Do not send original documents as these will not be returned to you.
    • If you can’t provide certified copies of your paper identity documents with your application form please  contact ABRS office.
    • If you don’t meet your obligations as a Director there may be civil or criminal penalties or you may be issued with an infringement notice.

2. Once you have your Director ID please print or save a PDF file of your Director ID.

3. Send your Director ID PDF file to contact@ymlgroup.com.au to update our record.

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.

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.