Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

Melbourne's Lockdown Lifted

Lockdown in Melbourne was lifted on 11 June, but restrictions remain in place including a mandate to wear face masks at all times outside the home, limiting travel to within 25 km, and preventing some businesses from operating.

Although restrictions have been eased further in regional Victoria, there are still plenty of rules as the state emerges from its fourth lockdown. ABC has a summary of the new COVID-19 rules for regional Victoria and Melbourne in this article.

Victoria-NZ Travel Bubble Pause Extended

New Zealand's quarantine-free travel bubble with Victoria was originally scheduled to resume on 10 June, but NZ public health officials have recommended extending the pause for another week. Although most of the cases in Melbourne are linked to overseas, there are at least three cases where a link has not been identified.

The travel bubble pause will be reviewed again this week.

Australia in Talks With Singapore For Travel Bubble

Singapore and Australia are currently working towards establishing a travel bubble. According to the prime ministers, infrastructure and processes for resuming travel need to be put in place, starting with recognition of vaccination certificates.

Prime Minister Scott Morrison is the first foreign leader to make an official visit to Singapore since the start of the pandemic last year. He stopped in Singapore on his way to the G7 Leaders' Summit in Britain.

Discussions between the two country leaders also included a potential fintech bridge and exploration of a green economy agreement.

Australia, UK Agree on Free Trade Deal

A major free trade agreement between Australia and the UK has been finalised, following similar UK trade deals with Japan and the European Union post-Brexit.

The deal eliminates tariffs on UK exports and tariffs on imported Australian goods such as wine, swimwear, and confectionery goods. British products including Scotch whisky, biscuits, ceramics, and cars will be cheaper to sell into Australia.

UK farmers will be protected by a cap on tariff-free imports for 15 years, using tariff-rate quotas and other safeguards.

Aside from strengthening economic links, the two countries also plan to improve cooperation on security, climate change, science, and tech.

Pandemic Leave Disaster Payment for Victoria

The Pandemic Leave Disaster Payment is a lump sum payment to help Victorians who can't go to work and earn an income during the 14 days they need to self-isolate, quarantine, or care for someone.

Those who are eligible will receive $1,500 for each 14-day period they need to quarantine or care for a person with COVID-19. You can claim it over the phone by calling 180 22 66 or print and complete the Claim for Pandemic Leave Disaster Payment – Victoria form. You can find more details and the eligibility criteria here.

COVID-19 Disaster Payment for Victorians

The government has announced a COVID-19 Disaster Payment to help those affected by lockdowns and social restrictions.

This payment will help Victorians who are unable to earn due to the COVID-19 rules. To be eligible, you must be an Australian resident, permanent resident, or working visa holder with liquid assets of $10,000 or less, and who live or work in a hotspot where the lockdown is for more than 7 days.

The government will give one payment for each period of lockdown which can be either:

• $325 if you’ve lost less than 20 hours of work
• $500 if you’ve lost 20 hours or more of work.

You can claim this payment through your Centrelink online account on myGov from 8 June. More information can be found here but get in touch with us if you have any questions.

New Digital Certificate Simplifies Proof of Vaccination

The COVID-19 digital certificate makes it easy for people to show their vaccination status anytime and anywhere. As soon as your provider has reported that you received both doses of an approved vaccine, you'll be able to access your digital certificate through myGov or in the Express Plus Medicare app.

More information about how to access proof of COVID-19 vaccination can be found here.

EOFY is Fast Approaching

The end of the financial year is not just about saying goodbye to a challenging year, it's also a chance to prepare for a successful year ahead! Below are some things we recommend you consider. Ask us if you have any questions.

Temporary Full Expensing or Instant Asset Write-Off

Small businesses with an aggregated turnover of less than $50 million can receive a full write-off for all assets. Both new and second-hand assets qualify, but these assets must be used or already installed by the end of the financial year. The immediate deduction for a car cannot exceed the cost limit of $59,136.

Payroll

Pay all unpaid wages that have been processed and employee bonuses before 30 June. It's also recommended to start reviewing and updating your employment contracts with your staff.

Superannuation

Consider paying Q4 (April – June) before 30 June to receive the tax deduction. The Superannuation Guarantee is scheduled to increase to 10% from 1 July, so you should also get ready for this.

FBT

Ensure your FBT for company vehicles declaration has already been prepared and you've provided your odometer reading on vehicles as of 1 April.

Government Rebate for NSW

Sole traders, small business owners, and nonprofits in NSW may be eligible for a small business fees and charges rebate of $1500 for fees paid from 1 March 2021 and will be available until 30 June.

EOFY tips for small businesses

1. Get your accounts in order in a cloud accounting system. Get in touch with us so we can recommend the right software for your business.
2. Get in touch with your accounting advisor now to see if you can take advantage of tax minimisation schemes like the loss carry back tax offset scheme.
3. If cashflow permits, you may consider bringing forward some expenses or purchasing capital assets that will help you save time or generate more money. This will allow you to make the most of the instant asset write-off scheme.
4. Seek an accountant who can translate the tax jargon, COVID schemes and deadlines into plain and simple English.

We’ll help you get ready for EOFY, without the stress. Chat to us if you have any questions.

Remember JobKeeper on your tax return

If you received JobKeeper this financial year you need to include them in your tax return.

If you’re a sole trader, partnership, company or trust that has received JobKeeper payments, the ATO will contact you or your tax agent by early July to let you know:

• the total amount of JobKeeper payments your entity received since 1 July 2020, or where you can find out
• where to report JobKeeper payments in your tax return.

Get in touch with us if you have any questions.

Superannuation Guarantee increases on 1 July 2021

The Superannuation Guarantee (SG) will increase to 10% from 1 July 2021. If you have employees, you need to be ready for this legislated increase.

What do you need to do?

• Firstly, you should speak to your payroll software provider to make sure they are on top of this rate change. Your accountant or bookkeeper may also be able to help.
• Review any individual agreements with an SCG rate of more than 9.5%, but less than 10%.
• Notify your employees as they may need to review their Salary Sacrifice or after-tax contributions arrangements.
• Update Remuneration Packages as it could mean a pay decrease for employees.
• This is also a good opportunity to do some housekeeping to ensure your super obligations have been met (including super payments and calculations).

As an employer it’s important to ensure you pay super at the new minimum rate. There are financial penalties applied for not meeting your SG obligations. Ask us if you have any questions.

JobMaker Hiring Credit's Second Claim Period

The second claim period of the JobMaker Hiring Credit is open. So if you've taken on additional young employees between 7 January and 6 April 2021, you may claim the following payments:

• up to $10,400 over a year for each additional eligible employee aged 16 to 29 years
• up to $5,200 over a year for each additional eligible employee aged 30 to 35 years

Register before the due date of the first JobMaker period you’re claiming for.

Wage Subsidy Scheme for Apprentices and Trainees

The government has announced the expansion of the wage subsidy scheme for apprentices and trainees. Under the scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. Ask us if you have any questions.

Income Statements can be found in myGov in July

Since Single Touch Payroll (STP) came into place in 2019, payment summaries (previously called Group Certificates) and now known as Income Statements, can be accessed through myGov. These are no longer directly provided by employers. This will be prepared and ready for employees by 14 July if your employer has 20+ employees or by 31 July if the employer has 19 or less employees.

Upcoming Key Dates

Upcoming key lodgment and payment dates for businesses:

21 June

• Lodge and pay May 2021 monthly business activity statement.
  

25 June

• Lodge and pay 2021 Fringe Benefits Tax annual return if you have a tax agent that lodges your return electronically.

30 June

• Super guarantee contributions must be paid by this date to qualify for a tax deduction in the 2020–21 financial year.

Contact us if you have any questions.

SME Recovery Loans open until 30 June

The Government’s SME Recovery Loan Scheme is open to small-medium businesses with a turnover of up to $250 million that were recipients of JobKeeper or were affected by floods in certain areas. This Scheme means the Government will guarantee 80% of the loan amount. You can find more details and eligibility criteria here, but please get in touch if you have any questions.

Eight Key Signs You Need To Hire Additional Support Staff

How do you work out when it’s time to bring on new team members? For busy business owners and those that are new to the game, it may not always be clear when it's time to move beyond your core employees and get additional help.

In this Forbes article, a panel of Young Entrepreneur Council members share eight telling signs that you need more support staff. Below is an overview of the indicators you should look out for:

• Your team hesitates to use time off
• Employees complain of being too busy
• Staff are behind on key responsibilities
• KPIs and success rates begin to fall
• Managers and employees lose focus
• Overtime and errors spike
• Customer service tickets pile up
• Customers complain more frequently

Do you manage your own books? It’s best to focus on your core responsibilities as a business owner and get expert help for the financial side of your business. Book a consultation with us and let’s discuss how we can make your life easier.

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business.

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

Australia-NZ Travel Bubble to Begin 19 April

Australia and New Zealand will create a quarantine and COVID-testing free travel bubble starting 19 April. However, flights to and from some Australian states could still be suspended if there were local outbreaks.

Australians made up 1.5 million or 40% of arrivals to New Zealand in 2019 before the pandemic, and it was expected that arrivals will reach 80% of that level by early 2022. This travel bubble will also allow the Trans-Tasman Super Rugby competition involving five teams from each country to proceed over five weeks from May 14.

Australia Calls for Release of 3.1 Million Vaccine Doses

The government will be asking the European Union (EU) to release more than 3.1 million doses of the AstraZeneca vaccine, after the EU denied blocking the shipment to the country.

This delay in receiving the additional doses is the reason why it has fallen behind in its scheduled vaccination. The government targeted 4 million people to be vaccinated by the end of March, but only 670,000 people have been inoculated so far.

Australia Job Ads Increase to 12-Year High

Australian job advertisements grew 7.4%, soaring to their highest level in 12 years in March. This increase is a sign that the labour market’s recovery can withstand the lifting of some of the government’s support programmes.

Unemployment has also fallen much quicker than expected, hitting 5.8% in February, The Reserve Bank of Australia is aiming to drive it down to 4% or lower to finally lift wage growth and inflation.

Live Music Venue Support For Queensland-based Venues

Live music venues in Queensland can now apply for state government grants of up to $80,000 to help recover from the losses incurred from COVID-19 restrictions.

Smaller venues can apply for up to $60,000, while larger venues with a capacity of more than 500 people can request for grants up to $80,000. You can submit your applications here until April 19.

Australian Government Extends Energy Bill Support to June

The Federal Government and the Australian Energy Regulator (AER) have extended the COVID-19 energy support measures for consumers and small businesses until the end of June.

This means energy suppliers must work out and rearrange payment plans with customers who are experiencing financial hardship. This may include payment plans that mean no payments will be required for some period of time.

Energy companies will also not be allowed to cut the power to customers for unpaid bills as long as the customer is working with the supplier to find a suitable payment solution.

Australian Government Disaster Recovery Payment Available After NSW Floods

People adversely affected by the floods in New South Wales can claim a lump sum payment of $1,000 per adult and $400 for each child younger than 16 through the Australian Government Disaster Recovery Payment.

The complete list of local government areas that can claim this financial support until 20 September 2021 can be found here. You can read more about how to claim it here.

If you lost income as a direct result of the floods, you can also take advantage of the Disaster Recovery Allowance.

Wage Subsidy Scheme for Apprentices to Be Expanded

The government will spend $1.2 billion to expand its wage subsidy scheme for apprentices, as JobKeeper ended last month.

Under the apprentice scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. It will run until September 2022. Ask us if you have any questions.

Claiming the JobMaker Hiring Credit

The JobMaker Hiring Credit is available for eligible employers who create new positions for eligible young people between 7 October 2020 and 6 October 2021.

To receive JobMaker Hiring Credit payments, you don’t need to satisfy a fall in turnover test. All you need to do is complete three steps:

• Register - via ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.
• Nominate your eligible additional employees - by running payroll events through your Single Touch Payroll (STP) enabled software by 27 April 2021.
• Claim payments - using ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.

You can register at any time until the scheme ends. Ask us if you have any questions.

Upcoming Key Dates

Upcoming key lodgment and payment dates for businesses:

21 April

• Lodge and pay quarter 3, 2020–21 PAYG instalment activity statement for head companies of consolidated groups.
• Lodge and pay March 2021 monthly business activity statement.

28 April

• Lodge and pay quarter 3, 2020–21 activity statement if electing to receive and lodge by paper and not an active STP reporter.
• Pay quarter 3, 2020–21 instalment notice (form R, S or T). Lodge the notice only if you are varying the instalment amount.
• Make super guarantee contributions for quarter 3, 2020–21 to the funds by this date.

30 April

• Lodge TFN report for closely held trusts if any beneficiary quoted their TFN to a trustee in quarter 3, 2020–21.
• Lodge lost members report for the period 1 July 2020 to 31 December 2020.

Contact us if you have any questions.

Government-backed COVID-19 Loans Extended

The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

Five Startup Killers To Avoid

If you want your new business to succeed, you need to make smart decisions and be strategic. In this Forbes article, a business coach shared five business killers that you must avoid to grow your startup.

1. Too much overhead- Start with the bare necessities and focus on surviving your first year in business. By keeping it lean, you can have a positive cash flow.
2. Limited cash flow- One of the most common reasons why new businesses shut down is because they don't have enough money. Avoid making significant cash purchases and use other financing options so you can have sufficient cash in your bank.
3. Too much planning- Don't overwhelm yourself with all the little details because there will always be little details.
4. Too little planning- While it's better to have an imperfect execution than to never start at all, this doesn't mean you shouldn't plan at all. You need to have a business plan, including processes and systems in place.
5. Not getting involved in the community- If you're not networking within your community, you're clearly missing out on vital business connections. Your website and social media are great, but you also need people in your community to establish your credibility when you're just starting out.

Need more focused business advice for your startup? Get in touch with us today and let's work out a plan together!

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business.