We would like to take this opportunity to update you on the JobKeeper Payment Scheme. Bills passed but no details are yet available Yesterday, the Coronavirus Economic Response Package (Payments and Benefits) Bill 2020 was introduced and passed both Houses of Parliament. Unfortunately, it did not contain the finer detail of how the JobKeeper Payment Scheme (‘the Scheme’) will operate. What it did was set up a framework including giving…  Read more

The Australian Taxation Office (‘ATO’) has announced a temporary simplified short cut method to make it easier for individual taxpayers to claim deductions for additional running expenses incurred (e.g., additional heating, cooling and lighting costs), as a result of working from home due to the Coronavirus pandemic. Refer to the ATO’s Media Release of 7 April 2020. Based on the announcement, the ATO will allow individuals to claim a deduction…  Read more

If you’ve been reviewing your business’s financial position and are looking for ways to improve your cash flow, one of the first things to look at are your expenses. As your business grows, so will your costs, but there are things you and your employees can do to keep them down as much as possible and so improve your cash flow. It’s important not to rest on your laurels. Continually…  Read more

Most small businesses experience cash flow problems from time to time and urgently need working capital. Many business owners immediately think of the bank or loans when they’re short of money. But there are other resources you can tap before you ask for that expensive overdraft or overdraft extension. The money you need might already be there, locked up in inventory, assets or your debtors’ book. You can often free…  Read more

If you’re a small business owner whose company hasn’t gone through hard times, that’s great but it’s likely to happen at some point. As much as we dream about being brilliant enough at business that we’ll never face slow times, there are many things beyond our control that can negatively affect our business. It’s highly likely that the Coronavirus and it’s resulting impacts, could put some significant pressure on your…  Read more

Australia’s leading startup training provider, Startup Onramp, has announced the launch of their new Founders Course, a fully online training and mentoring program designed to help new and aspiring founders get their startup launched and maximise its chances of success.   If you’ve been working on a startup idea for a while but are struggling to know what to do next, the Founders Course will teach you how to emulate…  Read more

Our Facebook page is always up to date as we eagerly await any updates to support small businesses, just like you. However, it takes several days from the announcement for the details to be worked out (by the ATO/ Government) and for any new measures to be legislated. We prefer waiting until these are certain to advise our clients as lot of them are not open to interpretation. However, the…  Read more

Bootstrapping is figuring out how to reduce the cash you need to start, by eliminating any unnecessary overheads while finding out who will give you a hand.   If for whatever reason you’re not able to raise enough capital to start-up you might be able to get what you need by ‘bootstrapping’ (finding what you need through unconventional or low-cost methods). Have others lend what you need You don’t have…  Read more

This is a recording of a webinar we have run for not only our clients but any business owners to let them know what help is available to them from the government stimulus package as well as what steps to take/ things to consider during these tough times.   Webinar Recording – Things you can do right now to protect your business     Make sure to connect with us…  Read more

Some employees may wonder whether a work related expense (or ‘WRE’) becomes deductible merely because their employer specifically requires the employee to incur the expense. Importantly, the ATO’s recent draft ruling on the deductibility of work-related expenses reiterates that an employer’s requirements do not determine the question of deductibility. Specifically, a number of examples contained in the draft ruling confirm that a work related expense may be deductible without an…  Read more

The Government is enhancing the Boosting Cash Flow for Employers measure it announced on 12 March 2020. The Government is providing up to $100,000 to eligible small and medium-sized businesses, and not for-profits (NFPs) that employ people, with a minimum payment of $20,000. These payments will help businesses and NFPs with their cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff. Note that you…  Read more

The Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice. Employers will be reimbursed up…  Read more

The New South Wales measures to support businesses include the following:   Business support and jobs $450 million for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the rest of 2019-20). This means these businesses will save a quarter of their annual payroll tax bill in 2019-20 $56 million to bring forward the next round of payroll tax cuts by raising…  Read more

Victoria seems to have been the fastest acting state, also one that sends regular and meaningful updates. Their $1.7 billion measures include the following: Payroll Tax Refund Businesses with annual taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived. This will support 24,000 businesses and up to 400,000 workers. The State Revenue Office will directly contact eligible businesses to reimburse them for…  Read more

For small and medium businesses and large businesses specifically impacted by COVID-19, QLD Government will refund two months’ worth of payroll tax. Additionally, they’re giving small and medium businesses a three-month payroll tax holiday, and a further six-month payroll tax deferral for any of these Queensland businesses. (Could it get more complicated than this??) “Combined with the payroll tax deferrals we’ve already announced, it means no Queensland business impacted by…  Read more

  On the 13th March 2020, Practice Ignition named Petra King one of the Top 50 Women in Accounting.   This global award recognizes women who are leading the charge when it comes to advocacy, change and community within the Accounting and Bookkeeping industry. “We received such a large and diverse range of entries from women in, and around the accounting industry, it was amazing to see.” says Guy Pearson,…  Read more

In an indication of the far-reaching changes that Single Touch Payroll (‘STP’) will be bringing, Treasury has recently finished consulting on draft legislation that expands the data that may be collected through STP by the ATO (as announced in the 2019/20 Budget). The legislation, if enacted, will broaden the amounts that employers can voluntarily report under the STP rules, to include employer withholding of child support deductions from salary or…  Read more

The Government has announced its economic response to the Coronavirus in the form of a $17.6 billion economic stimulus package. The package has been marketed as a measure to protect the economy by maintaining confidence, supporting investment and keeping people in their jobs. Whether it will be enough, only time will tell. We have already seen the impact the panic has had on the businesses, especially in travel and hospitality…  Read more

The ATO is warning the community about a new SMS scam which promises an 8% bonus on 2020 tax returns to victims of recent natural disasters. The scam text message says: “Due to natural disasters, Australians are entitled to an 8% bonus on their tax return. Please begin the process by filling out the form below. Link: https://my.gov.verification-digital.com.” ATO Assistant Commissioner Karen Foat said this is a classic case of…  Read more

Are you looking after your employees and provide them with a car parking benefits? Don’t get caught out by the fringe benefits rules. Where businesses provide car parking fringe benefits to their employees, the taxable value of these benefits must be calculated correctly to ensure they are meeting their fringe benefits tax (‘FBT’) obligations, regardless of the method used. The ATO has advised they may directly contact businesses who have…  Read more

Are you a general medical or allied health practice? If so, you are probably worried about the recent developments in payroll tax cases. What was the case that started it all? In Victorian case The Optical Superstore Pty Ltd & Ors v Commissioner of State [2018] VCAT 169, the Applicant (Optical Superstore) was the owner and operator of an optical clinic. The Victorian State Revenue Office raised amended assessments for…  Read more