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Want to know what’s changed in the world of business and accounting and what it means for you?
Find out with the trusted Gold Coast Accountant team at Crest Accountants.
Updated Queensland Government Grant
On the 13th of August 2021, The Queensland Government announced the Queensland COVID-19 Business Support Grants will increase from $260 million to $600 million.
This is a joint Queensland and Australian Government support package for Queensland businesses – a 50/50 funding agreement. The package includes support for non-employing sole traders and expands on support for eligible small and medium businesses, plus large tourism and hospitality businesses.
This is a welcome lifeline to eligible businesses who can demonstrate a reduction in turnover of 30% or more during an eligible lockdown event.
You can find further information on the updated support package on the Business Queensland website.
What will the expanded scheme now include?
- $1,000 grants for non-employing sole traders and not-for-profit organisations based in Queensland.
- Scaled grants dependent on payroll size for employing Queensland based businesses and not-for-profit organisations:
- $10,000 grants for small businesses with payroll less than $1.3 million
- $15,000 grants for medium sized businesses with payroll between $1.3 and $10 million
- $30,000 grants for large sized tourism and hospitality focused businesses with a payroll higher than $10 million
Federal Treasurer Josh Frydenberg stated: “As we [The Federal Government] have done so throughout this crisis, we will continue to work with the Palaszczuk Government to ensure the Queensland economy continues to recover from the impact of COVID-19.”
Need help accessing business support grants? Your Gold Coast Accountant is here to help.
Super Guarantee – ATO Audits
If you don’t know already, the Super Guarantee Charge is an Australian Taxation Office (ATO) imposed penalty incurred if the correct super isn’t paid on time.
Think you’re safe? Think again:
- Historically unpaid super reviews and audits have typically been triggered by employees making complaints to the ATO.
- With the introduction of superannuation clearing houses and Single Touch Payroll (STP), the ATO has increased data matching capabilities and we are seeing the ATO being more pro-active in contacting employers about unpaid super rather than reactive.
- Unless you’re using the ATO Small Business Clearing House, super is deemed to be paid when the superannuation clearing house allocates the payment to the employees’ fund NOT when the funds have left your bank account.
- Some clearing houses take up to 14 days to allocate the payment to the employee’s member account.
- If the super clearing house has not disbursed the payment to the employee’s member account by the 28th day following the end of the quarter, you’re required to lodge a superannuation guarantee charge (SGC) statement by the 28th day of the following month.
What happens if superannuation remains unpaid or you don’t pay it on time?
Let’s take a look:
- Previously exempt earnings (like overtime) may become subject to SGC.
- Interest accrues until the SGC statement is lodged!
- Part 7 penalty can be as high as 200% of the SGC payable.
- SGC is not tax-deductible.
- Super paid late is not tax-deductible.
- You may be held personally liable for unpaid super & SGC.
- This is a significant risk for employers and for some employers this could possibly result in bankruptcy. Act now and make sure you’re complying with your superannuation obligations.
Are you an employer? This is your friendly reminder to ensure your employees are paid their right amount of super on time.
Non-arm’s length tax provisions for self-managed super funds
What does non-arm’s length income & expenditure entail? It essentially refers to any dealings between a self-managed super fund and another party that has not been captured at market value.
Recently, the ATO finalised Law Companion Ruling 2021/2 on non-arm’s length income and expenses for self-managed superannuation funds.
It is now more important than ever that SMSF trustees who provide any kind of service to their SMSF that is similar to their line of work charge for it at market rate. This is particularly important for accountants, lawyers, real estate agents and trades people who perform work for their SMSF. These services must be accounted for at market rate or risk a significant increase in their SMSF tax rate.
Uncertain if/how this ruling affects you? Contact your Gold Coast business accountant to discuss.
The latest in the world of Xero
Let’s take a look at the latest in the world of Xero:
- Xero has updated its COVID-19 Business Support tool with customisable comparative date ranges. This means small businesses and their advisors can now use the tool to determine eligibility for all kinds of grants across Australia. Find out more about this
- Not surprisingly, with increased application functionality, comes increased prices. Xero has announced it will increase the subscription price from 23rd September 2021 (excluding cashbook plans which will increase from 16th March 2022).
How will the price increase apply to you? Head to the Xero website to find out more.
Crest Accountants are your local business and personal accountants dedicated to helping you with our efficient and comprehensive accounting services.
In need of an accountant who keeps up to date with the latest industry updates and keeps you informed? Contact us today.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.
