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Round 2 of Business Basics Grant announced

The Queensland Government has just announced Round Two of the Business Basics Grants - a round directly related to this current lockdown - which may be worth checking out.

They are for small and medium business with turnover more than $75,000 and payroll up to $10 million and must show a 30% decrease in turnover as a result of the current lockdown period.  According to the announcement made this morning it is a $260 million package and grants will be processed in the order they are received.

Covid-19 business support grants - August 2021

Launch date: 17 August 2021

Opening Date: 9am on 31 August 2021

Closing date: Until funds are exhausted

For updates you can subscribe to their small business newsletter: Small Business Connect.

Lifestyle assets - ATO eyeing off

The Tax Office has now extended its lifestyle assets data-matching program for the 2020–21 financial year through to 2022–23, allowing it to acquire insurance policy information for certain asset classes.

Motor vehicles with values of $65,000 and above will fall within the ATO's data collection scope, as well as marine vessels above $100,000, thoroughbred horses over $65,000, fine art over $100,000 per item, and aircraft over $150,000.

The ATO will acquire the data from 25 insurance providers, with the agency expecting 300,000 individuals to be identified each year.

EOFY 2021 Things to think about

As the 2021 EOFY year rapidly approaches, now is the time to take some time to consider what needs to be done. It is a period of review and of forward planning - but first let's look at what's on the immediate horizon. 

  • Superannuation changes - when to pay June's SGC to claim the deduction in 2021FY
  • new SGC rate - check your software 
  • Work Test requirements
  • JobKeeper reminder

For more see here

Queensland Government Grants announcements

Just announced - Small business grants!

The Qld Department of Employment, Small Business and Training has just announced new grants available now to small business clients:

Business Basics Grants Program -  launched today and opens on 31 May 2021

  • will offer grant funding to new and emerging businesses
  • grants available for up to $5,000 each to increase core capabilities and adopt current best practice - such as website development and upgrades, strategic marketing, training and coaching, advisory services and planning for business continuity and succession
  • Guidelines and FAQ's available 17/5/2021
  • Applications open 31 May

Business Boost Grants Program - opens in July

  • will support established small businesses
  • grants available for up to $15,000 to improve efficiency and productivity through organisational development and upgrades through automated software and CRM systems
  • Guidelines and FAQ's available mid-July 2021
  • Applications open - late July 2021

Business Growth Fund - opened last week

  • Will help evolving and fast growing small and medium sized businesses
  • grants available up to $50,000 to buy highly specialised equipment to seize and accelerate growth opportunities
  • Guidelines/FAQ's available 1 May 2021
  • Eligibility tool available 5 May 2021, but to be eligible, your business must:
  • have fewer than 20 employees at the time of applying for the grant
  • have an active ABN and be registered for GST
  • have a Queensland HQ
  • have a turnover of $300,000 or less for the current financial year
  • not be insolvent or have owners/directors that are an undischarged bankrupt
  • Applications open 11 May 2021

As tax time looms, the ATO has pointed to several key ineligible work from home claims that it will be watching closely as taxpayers look to make the most of flexible working arrangements.

Whilst the temporary shortcut method will remain some expenses cannot be claimed through any method, for example:

  • personal expenses like coffee, tea and toilet paper (and apparently Tim Tams!) cannot be claimed
  • expenses related to a child's education - like online learning courses, or laptops
  • rent, mortgage interest, property insurance or other land taxes and rates can not be claimed

Claiming occupancy expenses could expose some taxpayers to Capital Gains tax when they leave their homes

If you decide not to use the simplified 80c/hour claim method, make sure you have good records.

For more, see here.

Please note: The ATO has also signalled that work-related car expense claims - which have been closely scrutinised over recent years - will again be on their radar. They make the point that they are "still concerned that some taxpayers aren't getting the message that overclaiming will be detected, and if it is deliberate, penalties will apply."

 

DIN update

ATO assumes registrar role for the new Director ID regime 

ASIC staff will begin moving to the ATO as the government prepares for the imminent rollout of the new DIN regime and the Commissioner of Taxation is appointed as the Commonwealth Registrar of the new ABRS.

The DIN will be the first function of the ABRS. Once current testing concludes (31 October), directors will be able to access the ABRS using their myGovID to supply a number of identity documents to acquire the unique identifier. They will keep this number permanently, even if they cease to be a director, change their name or move interstate/overseas.

Provisional deadlines will see all directors required to obtain a DIN by 30 November 2022. Individuals who seek appointment after 30 November 2022 will be required to obtain a DIN prior to being appointed. It's interesting to note that this regime is expected to cover 10% of Australia's 25.7 million population.

The next move will be the companies register, the business names register and the ABN register to the ABRS.

The end goal is to improve the user experience, simplify the way people interact with business registers and provide business owners with a single entry point to establish their business.

As Senator Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy put it: "Modernising business registers with a one-stop shop, replacing the current 31 registers, is part of our government's commitment o Australia becoming a leading digital economy and society by 2030."

 

FBT Season has arrived

FBT annual returns will be due soon - for those clients of ours to whom FBT applies, please note we will be sending our annual FBT Questionnaire next week.

We will post the link to the Questionnaire here on our website for ease of reference in case you need to come back to it and don't want to have to sort through your emails to find the link :)

What is all the noise about DIN?

ATO, ABR, MBR, ASIC, CBRS - quite a bit of DIN!

In 2020, legislation giving effect to the new Director Identification Number (DIN) regime passed and will be administered by the new Commonwealth Business Registry Service (CBRS) as part of the 2020 Budget Digital Business plan via the Modernising Business Registers (MBR) Program.

The MBR Program will (apparently) unify the Australian Business Register (ABR) and 31 registers administered by ASIC, on a contemporary, digital registry system. The unified government business register will be operated by the ATO.

The MBR Program will also include the introduction of a director identification number (DIN) - a unique identifier that a director will keep forever. It will be used by Regulators to verify the identity of directors and map out their relationships between entities - and thereby facilitate the traceability of the director.

Whilst key details of the regime - including what details will need to be provided - have yet to be publicly released, the established legal framework shows that the DIN will require all existing and new directors to confirm their identity to a unique identifier. It also appears that new directors will have to apply for a DIN before they are appointed as a director. A transitional period for existing directors will be specified by a legislative instrument. We also know that there will be civil and criminal penalties for directors who fail to apply for a DIN within the applicable timeframe and for conduct that undermines the new requirements (e.g. providing false identity information to the registrar or intentionally applying for multiple DINs).

There is no published timeline for the introduction of DIN, but it's coming, so it's best to be aware and ready to implement procedures to ensure compliance with the new law/s and the timely appointment of directors.

Modernising Business Registers and the Discussion Paper

ATO audit activity looks set to ramp up

ATO heats up their audit activity - targetting privately owned and wealthy groups

With compliance activities having been deferred at the height of COVID-19, it appears likely that the ATO will now start to ramp up its auditing activities. It seems that the interest in privately owned and wealthy groups of more than $10million, or controlled wealth of more than $5million, is a result of recent tax gap reports which highlighted a gap in the sector worth $772million.

There are reports that the ATO will look to its Top 55 and Next 5,000 programs to address the short fall - as well as take an industry-by-industry approach following COVID-19 as it appears that these groups have been less afflicted by the pandemic.

So the message is: be ready and ensure that appropriate steps are being taken to comply with tax obligations.

Following advice from the ATO, Employers with closely held payees will now have three options to report payments through Single Touch Payroll (STP).

The ATO has confirmed that STP reporting for closely held payees will commence from 1 July, after it had granted these employers a one-year exemption in the midst of the pandemic last year.

For more information see our news article.

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E. contact@perrierryan.com.au

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