Monthly Archives: April 2021
Is your business required to have a QR code system in place? With so much going on and such little information distributed by the state government about covid requirements, it is understandable you may not know.
The answer is it depends what your business does.
All prescribed businesses must have a QR code system in place by Friday 30th April. The amnesty period, which has already been extended once, will come to an end this Friday.
A QR code system will not cost you anything other than your time if you use the Victorian Government QR code service.
So is your business one that must have a QR code in place by Friday?
You can check by clicking on the following link here.
And please remember if your business is not required to have a QR system in place, it will still have to record all visitors to your business premises. So may be you are better off moving from the existing paper sign in register to a QR code system.
You can access the paper log by clicking here.
You can access the posters required to be shown in your workplace by clicking here.
As we head into a brave new post-JobKeeper world, there is much to keep abreast of.
So our Survive & Thrive webinars are back!
About the Webinar
In our next 25 minute webinar we will
Update you on actions required in May (including new rules for those who employ casuals).
With a hot property market, our guest speaker Martin Ryan will explain recent property loan developments.
And our case study will explore the peril of selling to customers who may not be able to pay you. This has never been so important now that so many business don’t have the JobKeeper financial safety net.
We will also feature special client offerings – and one will of great interest to many.
The webinar will run from 5.30pm, so grab a cup of tea (or beer) and tune in.
And if you away from your home or office, you can still watch it on your phone.
You can register by clicking here
We do hope you can join us on Wednesday, 5th May at 5.30 pm
Entertainment can be taxing. That’s an understatement as there are 3 aspects – tax deductibility, GST and Fringe Benefits Tax (FBT). There are 38 outcomes depending on who does with whom where and why. It therefore requires careful analysis
No wonder the ATO has such a great strike right in FBT audits on entertainment.
But that’s not all that has to be considered. For FBT purposes, an employer has to determine which of three methods produces the best result. Although that said, the actual method for quantifying the FBT taxable value of entertainment is usually best for small employers (but not always!).
You can read more on the following factsheet – FBT Flyer – Meal Entertainment Factsheet
Confused or concerned? That’s understandable. We would be happy to discuss your situation.
We take this opportunity to state that the prudent action is to lodge an FBT Tax Return – even if nothing is payable (which is usually the case for small businesses). This extra step is not a waste of time nor money as it starts the audit clock ticking – after 3 years the ATO can’t go back and audit you; don’t lodge an FBT Tax Return and the ATO can go back as far as they like.
Wednesday 28th April is the end date for satisfying Super Guarantee (SG) super obligations for the March 2021 quarter.
But beware as some of the clearing houses have a submission and payment deadline well before then. May be even today!
SG super is payable on all forms of remuneration including:-
Bonuses (but see below)
Directors’ fees and all other forms of remuneration to directors
Allowances (except where fully expended)
Contractors paid mainly for their labour
But excluding the following remuneration:-
Unused annual leave on termination
Remuneration of less than $450 in a month
Bonuses that are only in respect of overtime
Bonuses that are ex-gratia but have nothing to do with hours worked; which is harder to satisfy than what you might think
In respect of employees younger than 18
Employees carrying our duties of a private or domestic nature for less than 30 hours in a week (such as nannies)
On quarterly remuneration greater than $57,090
Non-residents performing work for an Australian business outside Australia
If your payroll system has been set up correctly then it will perform these calculations for you. We would welcome the opportunity to assist you with this and if need be refer you to a good book-keeper.
SG super should never be paid late as late payments attract substantial interest and penalties. Furthermore, and SG (and BAS) liabilities that remain unreported and unpaid after 3 months automatically become personal debts of directors.
The SG rate remains at 9.50%.
So if you haven’t paid your employer super obligations already, we recommend doing so today!
Do I have to pay FBT on my workhorse vehicle (think utes, vans and taxis)?
Well it depends.
There has and still is an exemption for private use that is minor, infrequent and irregular.
The problem is the ATO recently announced safe harbour provisions. And those safe harbour provisions are probably more restrictive than what most people think.
These provisions also dictate record keeping that wasn’t required previously.
Want to know more – then click on the following link.
Why is this important?
Well if any private use doesn’t satisfy the safe harbour tests to minor, infrequent and irregular travel then the business is subject to Fringe Benefits Tax.
And this leads to the next point of how important it is to lodge an FBT Return (even if no FBT is payable). Lodging and FBT Return starts the audit clock ticking. When three years have passed, the ATO can’t go back and audit that year. Don’t lodge a FBT Return and they can go back as far as they like.
Not sure about your exposure? Don’t want to risk not complying and paying FBT 9and penalties and interest)? Then call us.
There has been much press about the ending of JobKeeper and what it means. The press has largely focused on the most exposed industries such as cafes and restaurants, particularly those in the CBD.
So the question is how exposed is your business if your customers are at risk?
At worst, it may be best to not sell to someone who is at risk of falling over.
it costs you $600 to service a $1,000 sale and
they go down owing you $2,000
Then you will need sell someone else another $5,000 just to cover that loss. It’s a tough assignment at any time let alone in today’s market for many business owners.
The sad reality is that most accountants don’t ensure their clients accurately record and report on the trust cost of servicing the sale of a good or service. It’s really really important to know this so for so many reasons – but in context to the discussion here, knowing what is at stake when making a sale that may not be collectable.
So think about whether you should continue to sell to existing customers. Another option is to ask for payment up front.
And now would be a good time to review your terms of trade. And with that, you should consider whether it is worth protecting your interest under the Personal Property Securities Act (PPSA) – the modern form of Romalpa clauses. It’s a measure of last resort but can save your bacon. It’s beyond the scope of a blog to explain how you can use PPSA but we would be happy to explain it to you and refer you to a qualified solicitor to attend to the necessary paperwork.
So in these difficult and unusual times:-
Don’t sell to anyone without evaluating their ability to pay.
Put the proper protection mechanisms in place.
Be crystal clear on what it costs you to sell your goods and/or services.
Want to better understand your situation? Then ask us as we have decades upon decades of experiences gained from a range of clients operating in an array of industries.