Chartered Accountants

Welcome to iTax.com.au

We are a firm of Chartered Accountants in Surry Hills near Sydney's Central Railway. The City is conveniently located at our doorstep.

Services offered include Accounting Systems and Taxation Advisory, Income Tax Return and Financial Report Compilation for the full spectrum of entities.

AUSTRALIAN GOVERNMENT PANDEMIC ASSISTANCE - Present Focus NSW extended to 28 August 2021

The announced support packages for businesses in NSW will require up to date records to determine and support eligiblity. There is also a disaster or emergency payment for individuals. (see below)

Before considering other criteria NSW based businesses must demonstrate at least a 30 % reduction in turnover.

The test period is to be minimum of a fortnight within a time frame for 2019 and 2021; the starting point being selection of lowest turnover fortnight in the 2021 period. 1 and 2 below are for businesses having turnover between $ 75,000 and $ 250 million (increased 28 July 21)

1. Grant (from $ 7,500 , $ 10,500 or $ 15,000) to be expended for defined operating expenses based upon a test period for turnover between 26 June and 17 July

www.service.nsw.gov.au/transaction/2021-covid-19-business-grant

2. Job Saver Grant (40 % of gross wages = $ 1,500 to $ 100,000 per week-cap increased 28 July 21) will be for businesses based upon a test period 26 June to 26 July ( may be extended to 28 August 2021) and be similar to job keeper, being a % of gross wages

www.service.nsw.gov.au/campaign/covid-19-help-business/grants-loans-and-financial-assistance#jobsaver-payment

3. Micro Business Grants ( $ 1,500 per FN tax free) for businesses with turnover of at least $ 30,000 and lower than $ 75,000, The test period will be 26 June to 26 July ( may be extended to 28 August 2021)

www.service.nsw.gov.au/transaction/2021-covid-19-micro-business-grant Deadline now 18 October 2021

Eligible turnover seems to be based on the GST method selected by the business for activity statement purposes. So for a business registered for GST receipts based turnover would be based on debtors collected excluding GST, accruals based would be amounts invoiced less GST. For micro businesses this is unclear but the receipts based method may likely apply.

The Grant appears to be a one off lifeline for eligible businesses that have been adversely impacted by Covid and is quite onerous. Its now open but expires 13 September 2021.

The grant may be applied for now whereas payments for the other packages may not commence until after 26 July 2021 but may be ongoing whilst the lockdown persists in NSW. Applicants will be required to sign a declaration as to the bona fides of the basis for a claim and obtain a certificate from their Tax Agent plus provide supporting evidence. The grant needs to be expended for operating the business, whereas the job subsidy is just that. Each application for a grant may be audited.

Disaster Payment

This will be a weekly payment of $ 375 to $ 600 depending on hours lost since start of lockdown in NSW (defined different dates base on location but since 18 July for greater part of Sydney) The "liquid assets test" of $ 10,000 has been abolished.

www.servicesaustralia.gov.au/individuals/services/centrelink/covid-19-disaster-payment

General Security and Business Identification Issues

  • Service NSW App - Please ensure business data is up to date so that you and your business may be identified.
  • ABR Website Data - Please check details are up to date.
  • Business decisionmakers need to prepare and securely make available an inventory of important documents and online access details in case they are disabled. Are the files and documents accessible to a trusted person who can assume that role ?
  • Small business owners need to therefore consider whether they have requisit powers of attorney in place and the right people know where and how to access these documents.
  • Businesses need to revisit their tax and cash flow plans for the year ahead. Will employees need to work remotely or take leave ? Consider annual and long service leave scenarios for employees.
  • Once we have our realistic achievable plans in place we need to communicate with all internal stakeholders, both employees and Directors and then with Debtors, Creditors, our Bank and the Australian Taxation Office where appropriate. Does the business require assistance from the Bank or a concessional payment arrangement with the ATO, or is action required to ensure the business benefits from the recently legislated Government assistance packages. (see some key matters below)

Superannuation - Mandated Contribution rates increased to 10 % of ordinary time earniings from 1 July 2021

FRom 1 July 2021 Concessional Contribution Cap increased to $ 27,500 and Non -concessional cap $ 110,000. CONDITIONS APPLY - Seek professional advice.

Superannuation -seek financial planner advice for any decisions.

The minimum draw down for pensioners has been halved. For example a 70 year old previously required to draw down 5 % now only needs to draw down 2.5 % reducing pressure to liquidate equities at possibly the worst time.

Stay Vigilant Stay Healthy ! Please see Latest Accounting News in the links below.

Security Note : New clients are now required to provide photo id before appointment to assist with Taxation matters especially to apply for any Government assistance.

Please contact iTax Solutions for advice : 02 9319 2504

Note and Disclaimer : This Firm provides financial counselling; but not investment (as defined by ASIC); advice. References or links on this site to investment products, superannuation or investment advisors are not to be construed as endorsements, advice or referrals; by our Firm.

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