On Friday, 20 March 2020, the ACT government announced a series of measures which will provide businesses with rebates and waivers to combat the global pandemic downturn.

These measures include a waiver of payroll tax for businesses in hospitality, creative arts and entertainment industries. Also, deferrals will be available for all other small and medium-sized businesses.

Small business will also receive a $750 rebate on their next power bill. Businesses will also be entitled to a credit on commercial rates of $2,622.


Payroll tax deferral

All ACT businesses with Group Australia-wide wages of up to $10 million can defer their 2020-21 payroll tax, interest free until 1 July 2022. These rebates and waivers will provide relief for COVID-19 affected businesses in ACT. Businesses will need to complete a simple online application form (which will be available soon on the ACT Revenue Office website at: www.revenue.act.gov.au) to confirm their eligibility.

Eligible businesses will need to lodge their payroll tax returns as normal but will not be required to make the associated payment at the usual time. If the deferred amount is paid before 1 July 2022, no interest will be charged. Interest will be applied to any outstanding deferred amounts from 1 July 2022.

  • – For those who lodge their payroll tax assessment monthly, deferral can commence for their July 2020 payroll tax liability, which is usually payable by 7 August.
  • – For those who lodge their payroll tax assessment annually, they can defer payment of their full 2020-21 payroll tax liability, which is usually payable in July 2021.

Six month waiver of payroll tax

Hospitality (cafes, pubs, hotels, clubs and restaurants), creative arts and entertainment industries will receive a one-off, six-month waiver of payroll tax from April to September 2020.

Businesses will need to complete a simple online application form to confirm their eligibility by visiting the ACT Revenue Office website (available soon) at: www.revenue.act.gov.au

For those who lodge their payroll tax assessment monthly, the first credit will be applied to the April payroll tax liability, which is usually payable by 7 May.

For those who lodge their payroll tax assessment annually, the credit will be applied to their account when their assessment is received at the end of the 2019-20 financial year.


More here:

https://apps.treasury.act.gov.au/budget/covid-19-economic-survival-package/local-business-and-industry

See the latest updates on COVID-19 and how it may affect you here.

Recently, the Tasmanian state government announced stimulus measures designed to assist businesses in crucial state-based industries who could be decimated by the COVID-19 pandemic.

These measures include interest-free loans, waived payroll tax liabilities and incentives to hire a new staff member.

Specifically, businesses in hospitality, tourism, seafood production and export sectors are directly targeted. Also, any other small business who is directly affected due to COVID-19 will get some payroll tax support.

Details:

Interest Free Business Loans for Small Business | Tasmania COVID-19 stimulus package

  • – $20 million in loans to small businesses in the hospitality, tourism, seafood production, and exports sectors. The loans will be available to businesses with a turnover of less than $5 million to purchase equipment or restructuring business operations and will be interest free, for three years.

Payroll Tax Waivers Reduction | Tasmania COVID-19 stimulus package

  • – Payroll tax liabilities will be waived for hospitality, tourism and seafood industry businesses for the last four months of 2019-20.
  • – Other businesses with payrolls of up to $5 million will be able to apply, based on the impact of virus, to have their payroll tax waived for April to June 2020.

Improving Small Business Cash Flows |Tasmania COVID-19 stimulus package

  • – To assist with small business cash flow, the Tasmanian Government will:
  • – Pay bills sooner: unless otherwise required by contractual arrangements, payment terms by Government agencies will be reduced from 30 days to 14 days; and
  • – Give small businesses more time to pay their bills: unless otherwise required by contractual arrangements, small businesses will be provided extended payment terms to Government from 30 days to 90 days.

Targeted Small Business Grants Program for Apprenticeships and Traineeships | Tasmania COVID-19 stimulus package

  • – The targeted Small Business Grants Program provides a $5,000 grant for businesses that hire an apprentice or trainee in the tourism, hospitality, building and construction, and manufacturing industries. Funding for this measure has been brought forward.

Youth Employment Scheme | Tasmania COVID-19 stimulus package

  • – The Scheme provides a payroll tax rebate for one year, to businesses that employ a young person aged 24 and under, between April and December 2020. Human Resource and Industrial Relations Assistance
  • – $80,000 will be provided to the Tasmanian Chamber of Commerce and Industry (TCCI) to provide Human Resources and Industrial Relations assistance associated with the coronavirus to businesses.

Government Maintenance Program | Tasmania COVID-19 stimulus package

  • – $50 million allocated to fast track maintenance on public buildings over the next 12 months. This will provide an injection into local trades around the state and continue to support confidence in local communities.

See the latest updates on COVID-19 and how it may affect you here.

 

WA Payroll tax COVID-19: A range of payroll tax stimulus measures are being implemented in Western Australia to assist business with cash flow issues resulting from COVID-19.

In particular, certain businesses in WA will receive grants, while others will be allowed to defer payments of payroll tax for months.

Also, the future uplift of payroll tax thresholds will be brought forward to assist some businesses with their future obligations.

  • – Small businesses that pay payroll tax will receive a one-off grant of $17,500
  • – $1 million payroll tax threshold brought forward by six months to July 1, 2020
  • – Businesses impacted by COVID-19 can defer payroll tax payments until July 21, 2020

Read more:

https://www.mediastatements.wa.gov.au/Pages/McGowan/2020/03/COVID-19-economic-response-Relief-for-businesses-and-households.aspx

See the latest updates on COVID-19 and how it may affect you here.

When to lodge your Business Activity Statement

When is BAS due? Knowing the key dates for lodgement is important to make sure you pay on time and avoid late lodgement penalties or general interest charges for overdue amounts.  To avoid penalties, find out when BAS is due, and refer to the information found on ‘Failure to lodge on time penalty by the Australian Taxation Office for more. In addition to this, you can also read more about what to do if you’re lodging your BAS statement late.

There are 2 types of Activity Statements – an Instalment Activity Statement (IAS) and a Business Activity Statement (BAS).


Instalment Activity Statement (IAS)

Monthly activity statements are due for lodgement and payment on the 21st of the following month.


Business Activity Statement (BAS)

The Business Activity Statement is required to be lodged either monthly or quarterly.


Monthly reporting

The due date for your monthly BAS is the 21st day of the month following the end of the taxable period. For example, Monthly BAS’s have a due date of the 21st day following the BAS period. Please refer to the below table.

Quarterly reporting

The due date for your quarterly BAS is the 28th day following the respective BAS period. If you are using the services of a BAS or Tax Agent then you will be entitled to an extension due date of the 25th day two months following the respective BAS period.

Please refer to the tables below for more of a guideline:

Alternatively please go to the ATO website for more information on due dates for bas and bas lodgement. 

The responsibilities associated with successfully running a business have never been more extensive or stringent than today. One area which is often put to the ‘back of the pack’ for most is their Business Activity Statement (BAS) and Taxation obligations. However, the ATO do not subscribe to this notion and have prioritised increasing their effectiveness at regulating these lodgements. They have frequently enhanced their penalty system under the Crimes Amendment (Penalty Unit) Bill and from December 2012 these units have increased astronomically by 91%. Therefore, it is more important than ever to make sure you have all your BAS reporting and Tax affairs in order. However, if you have submitted a late BAS statement, here’s what to do.

See key ATO Due Dates here. 


ATO DUE DATES

Income Tax Returns
Tax return for all individuals and trusts where one or more prior year tax returns were outstanding as at 30 June 2019. Tax return for clients prosecuted for non-lodgment of prior year tax returns and advised of a lodgment due date of 31 October 2019.

Click here to see further information about individuals and trust return due dates in 2019 and 2020.

Business Activity Statements (BAS’s)

Click here for our latest information regarding Business Activity Statements. 

Quarterly BAS’s are due for lodgement the 28th day following the respective BAS period (e.g. March 2018 Quarter BAS’s are due 28 April 2018). However, if lodged through a BAS agent you will be granted an extended due date of the 25th day two months following the respective BAS period (e.g. March 2018 Quarter BAS’s are due 26 May 2018). Businesses lodging Monthly BAS’s have a due date of 21st day following the BAS period and do not receive the extended due date concessions afforded to Quarterly lodgers. If you are currently lodging BAS’s on a monthly-basis and wish to change to quarterly reporting for the convenience and extended lodgement periods, you must have sales turnover less than 20 million and contact the ATO to make the switch as long as they haven’t previously determined you must lodge monthly for other reasons.


PENALTIES AND GENERAL INTEREST CHARGES

If any of the above mentioned due dates are breached, you may be subject to the ATO’s penalty system for which they issue Penalty Units (currently $210 per unit) depending on the infraction and period outstanding. ‘Failure to lodge’ penalties are calculated based on the size of the entity and each 28-day period the tax return or BAS statement is overdue. ‘Small Entities’ which have a turnover of less than 1 million are issued one penalty unit per period overdue which is capped at a maximum of five penalty units being $1,050. ‘Medium Entities’ which have a turnover of 1 million and below $20 million or have PAYG withheld amounts totalling between $25,001 and 1 million in a previous year (medium withholders) are issued two penalty units per periods overdue. ‘Large Entities’ with a turnover of 20 million and above or PAYG withheld amounts totalling 1 million in a previous year (large withholders) are issued five penalty units per periods overdue. In addition to this the ATO applies a general interest charge (GIC) for any unpaid tax liability or BAS statements from the date it was due to be paid until which time the amount in question is settled (including the associated penalties and interest charges).


YOU’RE LATE – WHAT TO DO NOW?

The ATO generally does not apply penalties in isolated cases of late lodgement where an entity has maintained a good lodgement history. Also, if you were subject to extenuating circumstances impacting your ability to lodge (i.e. natural disaster or serious illness) you can apply to have the penalty and interest charges remitted. If neither of the above applies then you will need to lodge and pay your Income Tax Return or BAS Statement (including any penalty and interest) as quickly as possible. If you are unable to make immediate payment then it is in your best interests to enter into a payment arrangement with the ATO which can avoid or reduce your penalty consequences, however general interest charges will still be applied.

If you’d like to make an appointment to speak to one of our accountants, get in touch.

Have you ever run into a speed bump when tackling a tough task that at first seems impossible to solve but after dropping and revisiting it with ‘fresh eyes’, realise the answer is simple and right in front of you? Fundamentally this is what an Advisory Board can offer in the modern-day business world, a ‘fresh-eyed approach’ to your business operations. A well-structured advisory board can not only bring a much needed outside perspective, but also critical advice and networking opportunities to complement your existing skills and assist in achieving business goals.


What is an advisory board?

An advisory board is essentially a group of people carefully selected by an entrepreneur with the sole intent of providing non-binding strategic advice and support to the businesses’ many stakeholders (owners, shareholders or directors etc). When compared to the traditional ‘Board of Directors’ arrangement, it provides entrepreneurs with a safe haven to express their thoughts as it is structured to be informal and flexible. While they may not make decisions for the business, they are still legally required to fulfil their obligations with care and due diligence.

What services can an advisory board provide?

Every business’s journey is unique, this means their expectations in respect to an advisory board must be handled differently and be specifically tailored to the business needs. A few general examples of where an advisory board can assist a business include:

  1. Requiring additional funds to be raised
  2. Where rapid growth has occurred
  3. Wanting to access a larger network or establish strategic partnerships
  4. Major changes in mission statement, core values or strategic direction
  5. Smoothing the transition between different business cycles
  6. Manoeuvring through complex succession issues
  7. Enhancing market reputation and creditability
  8. Implementing a better business culture
  9. Generating new business ideas or identification of overlooked issues

advisory board crucial to success - meeting

What is the selection process of an advisory board?

The selection process of your advisory board must be handled with great care. A business should evaluate itself honestly and identify what areas of the business are strengths and weaknesses and determine how best utilisation of external support can supplement or complement existing skills. Common areas for business skill gaps include strategy, legal, taxation, finance, technology, marketing and human resources. Advisory board members are usually compensated with a daily fee for each meeting, however if more is required than these occasional meetings a periodic retainer can be negotiated. In high profile arrangements company equity is also another option, usually being 0.25% (but can vary 0.10% to 2%) depending on the value of the advisor, time commitment to the role and length of the contract.

In today’s global economy and rapid progressing technology front, advisory boards are being mass adopted for their unparalleled flexibility and wide-spread application to all business’s regardless of size, industry or lifecycle stage.

How can we help?

Quill is the largest multi-disciplined financial services practice on the Gold Coast, with an extension office in Brisbane. We provide a high touch personalised service delivered with competence, confidence and amazing results.

At Quill we are passionate advocates for our clients, and our team focus is always to provide an amazing experience, not just great service.

To ensure your business is receiving the service it requires, talk to Quill today to find out what we can do for you. Get in touch with us here.

“We now hold our Board meetings at their office and they have become an integral part of those meetings. All reports for the Board are prepared and distributed in a timely manner. We have no hesitation in recommending the Quill Group to anyone looking for professional accounting services at a fair and reasonable rate.”
– Ian Overett

Changing Accountants is not a decision to be made lightly, however working with the right Accountant and Professional Advisers can make an enormous difference to your business and personal financial situation and future. Not only is being with the right accountant a tax

We hear all the time, “I am not particularly happy with my Accountant, but I’ve been with him for 10 years, he knows my business inside and out and it’s too hard to change”.

Actually, it’s not too hard to change and we have been able to assist many businesses and professionals in the process of switching their accounting work over to us. Quill Group is made up of a team of over 60 in house specialists that are experts in business accounting, bookkeeping, financial planning, insurance, business taxation services and superannuation. We would be more than happy to help ensure you are with the right, but more importantly the qualified accountant, that can assist you with your financial situation.


How to find out if my Accountant is right for me

Ask yourself the following questions. If you answer yes to a couple or more, you should start thinking about changing Accountants.

• Has your business out-grown your current Accountant or are they not performing? Are you not receiving the assistance, technical knowledge and timely advice you need to grow your business, or improve your personal situation?
• Is your Accountant reactive rather than proactive?
• Are you receiving surprise bills which are not budgeted for?
• Is your work not being completed in a timely manner or being lodged on time?
• Are phone calls and email communication not being returned in a timely manner?
• Are you always dealing with different staff members and no one appears to know your business/personal situation?
• Do you feel that you are not receiving value for money?
• Is your Accountant using antiquated software/processes and are not offering efficient IT options for your business?

Gold Coast Accountant Gold Coast Financial Planner Gold Coast-South Brisbane Accountant South Brisbane Grant Gold Coast Grant

 

What’s the process of changing accountants? How do I change accountants?

Making the decision to do it is the hardest part, so the process is relatively simple:

1) Find the right Accountant for your business. Use the questions above to assist you in your choice.
2) Be courteous and let your current Accountant know by phone call. Providing any positive or negative feedback is always helpful.
3) An ethical letter is sent by your new Accountant informing of the change and requesting any records which are required. Your new Accountants will manage the change for you.
4) Transfer of knowledge. This may take a little bit of time and you need to be prepared to invest in this process. Keep in mind that although this may feel a little tedious, your new Accountant has fresh eyes for your business/situation and a new approach and their advice will be invaluable.

So, if you’re in need of positive change and would like to discuss your situation, please contact us. We will meet with you free of charge and together we will work out if we are the right fit for you.

We are a skilled and experienced team and put a strong emphasis on assisting with growing your business and improving your personal situation, not just compliance. With Financial Planning, Superannuation, Law and General Insurance all in house, we can look after all aspects of your financial situation.

“The only way that we can live, is if we grow. The only way that we can grow is if we change. The only way that we can change is if we learn. The only way we can learn is if we are exposed. And the only way that we can become exposed is if we throw ourselves out into the open. Do it. Throw yourself.” ― C. JoyBell C.

Single Touch Payroll (STP) is currently being rolled out across Australia by the ATO and requires employers to report salaries and wages, PAYG withholding and superannuation directly to the ATO each time they pay their employees.
From 1 July 2018 STP is mandatory for employers with 20 or more employees and will become mandatory for employers with 19 or less employees from 1 July 2019.

Although the deadline date of 1 July 2018 has already passed, the ATO has issued deferrals to most software providers, e.g. Xero has an automatic deferral until 31 December 2018. If you have not yet registered for STP, it would be best to contact your provider to discuss their deferral program.


How do I prepare for the Single Touch Payroll registration?

If you are currently reporting to the ATO through paper and do not currently have a Single Touch Payroll compliant payroll solution, you will need to register as soon as possible to avoid penalties relating to non-lodgement.

If you are already with a payroll software provider, you will need to ensure the following items are correct and up to date before registering for STP:

• Ensure your organisation details such as your ABN, addresses, phone numbers etc. are all up to date.
• Ensure all employee details such as tax file numbers, date of birth, addresses etc. are all correct and up to date.
• Check that you are paying your employee’s correctly and that their super entitlements are calculated correctly. If they are under an award it would be best to review the up to date information under their award and correct where necessary.
• Ensure all payroll staff are aware of this change.
• Prepare a headcount and confirm you have over 20 employees as at 1 April 2018.

 

 

How will Single Touch Payroll impact my business and reporting?

Your payroll cycle will remain the same and your super will still be reported and paid through your SuperStream provider. However, you will be reporting your super directly to the ATO each time you run payroll through your payroll provider rather than on a monthly or quarterly basis. This allows the ATO more visibility of an employer’s super obligations and payments.

Once you have reported your weekly wages and PAYG through Single Touch Payroll, the ATO will be able to automatically pre-fill these amounts into your monthly or quarterly Business Activity Statements at W1 and W2. Click here to read about the penalties involved in late BAS reporting. 

At the end of the financial year, you will not be required to issue payment summaries to your employees for the payments you report and finalise to the ATO through Single Touch Payroll. This will instead be made available directly to the employees online through myGov.


How can I find out more information?

Get in touch with us or give our office a call on 07 5528 2000 to discuss registration in more detail. At Quill, we are passionate advocates for all of our clients and our team is focussed on providing an experience, not just great service. As the largest multi-disciplined financial services practice on the Gold Coast, we provide a high touch personalised service delivered with competence, confidence and amazing results.

Alternatively, if you would like further information on this topic, you can visit the ATO website.

Changes to the ABN Lookup effective 31 October 2018 will see trading names disappear, be quick and register your business name before it’s too late.

Did you know on the 28 May 2012 Australian Securities & Investments Commission known as ASIC introduced a new business name register ASIC Connect, which superseded the previous state and territory registers?  From this date, any new business name registrations could only be registered to a current ABN holder, enabling a visible link for business name registrations to be recorded under an ABN registration on the ABN Lookup website at https://abr.business.gov.au

With the introduction of the new national Business Names Register, the Registrar of the Australian Business Register known as the ABR also stopped collecting and recording business names registered for an entity or individual under the old state or territory laws along with unregistered names used for business purposes.  Notice was then given to individuals and entities at that time that a ‘transitional’ period for the historical names, now referred to as an entity’s trading name would continue to be displayed in the trading name field only of the ABN Lookup.

Many years passed with the ‘transitional’ period end date now being confirmed as the 31 October 2018 meaning, after this date the Registrar will no longer publicly display the previously recorded trading names on the ABR’s ABN Lookup website.

how to register your business name

 

What does this mean for your business name?

If you were to continue to use a trading name for business purposes rather than your legal name, or a business name that you had registered to your individual or entity’s ABN with ASIC, other businesses that you deal with will be unable to use the ABN Lookup website to verify your identity or confirm your GST registration status. You would also run the risk that another individual or entity may secure a name that you have traded as and have been known by for your entire business life.


How can you prevent losing your business identity? | Register your Business name

If you don’t already have one, you will need to apply for an individual or entity ABN with the Australian Business Register and complete a business name registration under your ABN registration with ASIC Connect or, alternatively give our office a call on 07 5528 2000 to discuss and we can complete the registrations for you.

 

Tax Audit Insurance is important for every business to ensure you are covered for any unexpected circumstances, Every good accountant aims for perfection and accuracy when preparing their client’s tax returns.

However when dealing with the Australian Taxation Office (ATO) and other federal, state and territory based agencies, their clients can still come under scrutiny.

Audit and compliance activity is on the rise

The ATO has stepped up audit and compliance activity over the years in a bid to recover significant amounts of unpaid or underpaid taxes. This activity will only continue to grow in the coming years.

By using third parties such as banks, employers and insurance providers, the ATO can cross-check and monitor information provided in your tax return. If the ATO believe you are not complying with your obligations, or if they believe a mistake has been made on your return, they may conduct a review or an audit to look at your affairs to ensure all the information given to them is accurate.

This can turn out to be a long and expensive process as they endeavour to gather the information needed from your accountant to conduct the audit. It can start with a phone call or letter from an ATO representative, and potentially develop into a full audit or investigation where they will conduct various meetings with your accountant and have open access to all your records and systems.

The duration of the process to resolve the issues varies from case to case and can take anywhere from a couple of days to many long, anxious months. Depending on the nature of the audit you may be out of pocket for a very substantial amount of money.

Minimise your costs in the event of an audit

In circumstances like these it is a great idea to cover yourself for any large unexpected out of pocket expenses if the tax man comes knocking. This is where audit insurance can be a valuable choice for peace of mind in the case of an audit.

Audit insurance is an optional service which provides clients with cover for professional costs (up to a prescribed limit) in the event of an audit or review by the ATO or other relevant government revenue agencies. The audit insurance service fee is paid annually, directly to the accounting practice that holds the policy. You are then added to the policy once the fee has been paid.

There are no unplanned fees – Where amendments are needed to be done to your lodged returns, the audit service will cover the cost of the professional fees, including specialists who may need to be engaged to assist the accountant on your behalf.

Income Tax, GST and BAS, Superannuation Guarantee, PAYG Withholding, Fringe Benefits Tax, Payroll Tax, Land Tax, Stamp Duty, WorkCover and Self Managed Superannuation Funds (SMSFs) are just a few inclusions of what is covered under the service.

In the event of a phone call or letter from the ATO to advise you they are conducting an audit, you have the potential to be covered for the current financial year and any previous financial years whether the returns were prepared by your current accountant or another firm.

For the duration of the time that your accountant acts as your registered agent, you will be able to benefit from this service they offer. It is also tax deductible – a bonus of this service is you can add it to you tax deductions each year.

If you would like to discuss audit insurance further and how it can benefit you, give us a call.

Quill Group

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