Smes

To our valued community of clients, networks, and industry associates,

On Tuesday, 11^th May, Federal Treasurer Josh Frydenberg handed down the 2021/22 Federal Budget, with a focus on stimulating the domestic economy through measures to better fund the individual taxpayer, increase consumer spending, expand incentive to businesses (allowing them to hire, innovate, and grow), and foster job creation.

As we begin the 2021 Fringe Benefit Tax Year, it is important for SME businesses to continue to maintain their tax obligations - staying current and compliant during the especially unique time.

To help continue to support businesses impacted by the Coronavirus pandemic and those in flood-affected areas following the conclusion of JobKeeper support, the Federal Government has earlier this month announced its SME Recovery Loan Scheme – an extension of the previously released “SME Guarantee Scheme”.

As we approach the end of Quarter 3, 2020/21; this is an important reminder of the upcoming 28^th April 2021 due date for payments of your mandatory employer Superannuation contributions.

The official Archer Gowland Redshaw Building Your Business podcast is back for its second season. Across the series, the AGR Leadership team: Ian Walker, Smiljan Jankovic and Valda Glynn are joined by a range of business leaders, C-Suite and Senior Management professionals as they discuss and provide their insights on the important topics relevant to business owners associated with growing & maintaining their business.

Read our latest Insights article on the newly updated Fuel Tax Credits rates now in effect via the link (blog.agredshaw.com.au)

For businesses managing a vehicle fleet, the Fuel Tax Credits system can be an excellent route for operators to claim full or partial credits for the fuel tax (excise or customs duty) that’s included in the price of fuel.

With businesses now returning to work for 2021 following the Festive/New Year holiday period, a reminder that JobKeeper 2.0 - Phase Two extensions have now taken effect from 4th January 2021 and will run for the period until 28th March 2021.

Following the end of the legislated Superannuation Amnesty Period which ran to 7 September 2020, the ATO released a draft Practice Statement (PS LA 2020/D1) to provide guidance to ATO staff in relation to Part 7 penalties on late Superannuation Guarantee Charge (SGC) Payments. It notes that where SGC is paid late (i.e. after the 28th day of the month following the end of the quarter) there will be a minimum penalty of 100% of the SGC amount and a maximum of 200%. The ATO staff will not have discretion to reduce the penalty below 100% where the employer hasn’t voluntarily come forward to lodge an SG Statement prior to any ATO compliance action.

Prior to 1 July 2020, mandated employer contributions such as Superannuation Guarantee paid into a superannuation account were accepted although, non-concessional or non-mandated contributions made by those aged 65-75 were subject to the “work test”. Effective from 1 July 2020, the Government has abolished the “work-test” for those aged 65 & 66 who make non-mandated contributions (e.g. voluntary contributions) to their superannuation account.