Bray and Associates - Insights

Important Updates to 2021 COVID-19 Assistance Measures

The COVID-19 landscape is everchanging and so too are the support measures available to NSW affected businesses.

Importantly, there have been some recent changes to the eligibility criteria for the 2021 Business Grant and the JobSaver Payment scheme in the form of additional comparison periods available to be reviewed when assessing a decline in turnover.

2021 COVID-19 Business Grant
Businesses are now able to determine whether they have suffered the required decline in turnover (30% or more) due to the Public Health Order over a minimum 2-week period between 26 June 2021 and 17 July 2021 compared to:

• The same period in 2019, or
• The same period in 2020, or
• The 2-week period immediately before the Greater Sydney lockdown commenced on 26 June 2021 (i.e. 11 June to 25 June 2021)

Businesses should review their eligibility with reference to all of the relevant criteria – please see: Detailed Eligibility Criteria for more information.

JobSaver
Businesses are now able to determine whether they have suffered the required decline in turnover (30% ore more) due to the Public Health Order over a minimum 2-week period within the Greater Sydney lockdown (commenced 26 June 2021 and due to end 28 August 2021) compared to:

• The same period in 2019, or
• The same period in 2020, or
• The 2-week period immediately before lockdown commenced on 26 June 2021 (i.e. 11 June to 25 June 2021)

Please refer to the detailed eligibility criteria when assessing if you are eligible to apply for JobSaver.

Most importantly, if you had previously reviewed your eligibility for either of these measures based on prior criteria and found that you were not eligible – re-assess your situation now under these new guidelines!

Keep checking in here and over at www.service.nsw.gov.au for future updates.

As always, reach out to us if you have any questions regarding your business' eligibility!

Did you know you can pay your company's ASIC annual review fees ten years in advance?

ASIC annual review fees have increased (effective from 1 July 2021) – from $273 to $276 for Pty Ltd companies and from $55 to $56 for special purpose companies.

Late payment fees have also increased – from $82 to $83 for the first month overdue and from $340 to $344 if payment is received more than one month after the due date.

You can save in more ways than one by paying your ASIC annual review fees ten years in advance:

• From 1 July 2021, a ten-year prepayment of annual review fees for a Pty Limited company will cost $2,043 (as opposed to ten x $276 = $2,760), or $387 for a special purpose company (as opposed to ten x $56 = $560)
• By paying ten years in advance, there is no risk of incurring late payment penalties!
• You're protected from future fee increases for the next ten years

Like the sound of these savings? When it comes time to pay your company's annual review fee, get in touch with us for details on how to set up the 10-year advance payment option for your company!

COVID-19 – Assistance Measures Available to NSW Businesses

In light of the current NSW COVID-19 public health orders, the Government have made available some support packages for NSW affected businesses.

We understand that finding and reading through this information can be overwhelming for business owners – especially in the current climate – so, we have summarised the key elements of some of the measures available to business below:

1. 2021 COVID-19 Business Grant

This is a one-off grant designed to provide NSW businesses with cash flow support to help cover certain business expenses for which there is no other Government support available (such as costs covered under the Small Business Fees and Charges Rebate – see our earlier post on this support measure).

Here is what you need to know:

Eligibility
In order to be eligible, a business must:

• Have an active Australian Business Number (ABN)
• Be able to demonstrate that they were operating in NSW as at 1 June 2021
• Have total Australian wages of $10million or less at 1 July 2020
• Have an aggregated annual turnover of between $75,000 and $50million for the year ended 30 June 2020
• Have business costs for which there is no other Government support available (see how funding may be used)
• Have experienced a decline in turnover of at least 30% or more due to the Public Health Orders over a minimum 2-week period between 26 June 2021 and 17 July 2021 compared to the same period in 2019
• Maintain their employee headcount as at 13 July 2021 for the period for which the business is claiming payments under this scheme and the JobSaver scheme

Available Funding
Three grants will be available to eligible businesses depending on the level of decline in turnover experienced during the required comparison period as follows:

• $7,500 for a decline of 30% or more, or
• $10,500 for a decline of 50% or more, or
• $15,000 for a decline of 70% or more

Evidence in Support of Eligibility
In applying for the grant, businesses are required to make a range of declarations within their application and provide supporting information such as:

• Details of their qualified accountant, registered tax agent or registered BAS agent
• A copy of their Australian Income Tax Return (or Notice of Assessment)
• Other supporting documents as and when requested by Service NSW

In addition, for those businesses that are not listed as part of the 'highly impacted industries list', further evidence in the form of a letter from their qualified accountant, registered tax agent or registered BAS agent will be required.

Please see: Detailed Evidence Requirements

How to apply
Applications are now open via Service NSW and are set to close on 13 September 2021 (apply here) – businesses will be required to submit their application and supporting documentation via their MyServiceNSW Account.





2. JobSaver Payment

This is a fortnightly payment to take effect from 18 July 2021 onwards. The payment aims to provide cash flow support for NSW businesses affected by the Greater Sydney lockdown.

Here is a break-down of the key criteria:

Eligibility
In order to be eligible, a business must:

• Have an active Australian Business Number (ABN)
• Be able to demonstrate that they were operating in NSW as at 1 June 2021
• Have an aggregated annual turnover of between $75,000 and $250million (up from a previously advised $50million – see: NSW Gov JobSaver Announcement 28 July 2021) for the year ended 30 June 2020
• Have experienced a decline in turnover of at least 30% or more due to the Public Health Orders over a minimum 2-week period within the Greater Sydney Lockdown (commenced 26 June 2021) compared to the same period in 2019
• For employing businesses, maintain your employee headcount on 13 July 2021 while you continue to receive JobSaver payments
• For non-employing businesses (e.g. sole traders), be able to demonstrate that the business is your primary source of income

Please see: Detailed Eligibility Criteria

Available Funding
The payment amounts available are dependent upon whether you are an employing business or a non-employing business (e.g. Sole Trader with no employees):

• Employing businesses – the payment will be equivalent to 40% of your payroll for work performed in NSW. The minimum payment will be $1,500 per week and will be capped at a maximum of $100,000 per week (up from a previously advised $10,000 per week – see: NSW Gov JobSaver Announcement 28 July 2021)
• Non-employing businesses – the payment will be $1,000 per week

Evidence in Support of Eligibility
In applying for JobSaver payments, businesses are required to make a range of declarations within their application and provide supporting information such as:

• Details of their qualified accountant, registered tax agent or registered BAS agent
• Evidence of their weekly payroll (e.g. in the form of their most recent BAS that was submitted to the Australian Taxation Office prior to 26 June 2021 within the 2020-21 financial year)
• A copy of their Australian Income Tax Return (or Notice of Assessment)
• Other supporting documents as required when requested

In addition, for those businesses that are not listed as part of the 'highly impacted industries list', further evidence in the form of a letter from their qualified accountant, registered tax agent or registered BAS agent will be required.

Please see: Detailed Evidence Requirements

How to apply
Applications are now open via Service NSW and are set to close on 13 September 2021 (apply here) – businesses will be required to submit their application and supporting documentation via their MyServiceNSW Account.





3. 2021 COVID-19 Micro-Business Grant

This grant is designed for micro-businesses (i.e. businesses and not-for-profits with an aggregated annual turnover

between $30,000 and $75,000).

These businesses may be eligible to apply for a fortnightly payment of $1,500 to cover business expenses for the duration of the Greater Sydney lockdown.

Here is what you need to know:

Eligibility
In order to be eligible, a micro business must:

• Have an active Australian Business Number (ABN)
• Be able to demonstrate that they were operating in NSW as at 1 June 2021
• Have an aggregated annual turnover of between $30,000 and $75,000 for the year ended 30 June 2020
• Have experienced a decline in turnover of at least 30% or more due to the Public Health Orders over a minimum 2-week period within the Greater Sydney Lockdown (commenced 26 June 2021) compared to the same period in 2019
• Have business costs for which there is no other Government support available (see eligible expenses)
• Have not applied for either the 2021 COVID-19 business grant or the JobSaver Payment
• For employing businesses – maintain your employee headcount as at 13 July 2021 while receiving payments from this grant
• For non-employing businesses – be able to demonstrate that the business is your primary source of income

See: Detailed Eligibility Criteria

Evidence in Support of Eligibility
Micro-businesses will be required to make a range of declarations within their application and will also be required to:

• Submit evidence of a decline in your business turnover of at least 30% or more over a minimum 2-week period within the Greater Sydney Lockdown (e.g. via letter from a qualified accountant, registered tax agent or registered BAS agent, business bank statements, business activity statements)
• Submit evidence of an aggregated annual turnover between $30,000 and $75,000 for the year ended 30 June 2020 (e.g. in the form of a copy of your Australian Income Tax Return or Notice of Assessment)
• Lodge other supporting documents, as required, to demonstrate you meet the eligibility criteria

See: Detailed Evidence Requirements

How to apply
Applications are now open via Service NSW and are set to close on 18 October 2021 (apply here) – businesses will be required to submit their application via their MyServiceNSW Account..

As always, if you have any questions on anything raised or would like to discuss your eligibility and the application process, please get in touch with your usual contact at our Bowral and Sydney offices.

Increase to Car Limits from 1 July 2021

There is an upper limit on the cost you may use to work out the depreciation deduction for the business use of your car. This limit will increase to $60,733 from 1 July 2021 (up from $59,136 to 30 June 2021). The amount of Goods and Services Tax you may claim on the purchase of a car is one-eleventh of the car limit (i.e. from 1 July 2021 this will be $5,521) in proportion to your business use.

If you are thinking of purchasing a new car for your business and would like to know how the car limits may apply to you, please get in touch with your usual contact at our Bowral and Sydney offices.

Important Super Changes from 1 July 2021

There are some key Superannuation changes to be aware of this financial year:

1. The Superannuation Guarantee rate will rise from 9.5% to 10% on 1 July 2021. Employers will need to ensure that their payroll and accounting systems are up to date to incorporate the increase to the super rate. To check if your organisation is ready for the rate increase, please visit: Is your organisation ready? for more information.

2. The Superannuation contributions caps will be indexed from 1 July 2021 as follows:

• The concessional contributions cap will be increased to $27,500 per year (up from $25,000) from 1 July 2021;
• The non-concessional contributions cap will be increased to $110,000 per year (up from $100,000) from 1 July 2021.



There are additional limits and restrictions that may apply, depending on your age^ and whether your total super balance exceeds the general transfer balance cap*.

^ those aged 67 to 74 must be gainfully employed on at least a part-time basis (gainfully employed for at least 40 hours in a period of 30 consecutive days) during the financial year in which contributions other than mandated employer contributions are made to their fund. Those aged 75 and over are not able to make personal contributions to their fund (i.e. only mandated employer contributions are allowable).

* if your total super balance is greater than or equal to the general transfer balance cap, your non-concessional contributions cap is nil (i.e. you are not able to make non-concessional contributions). The general transfer balance cap will increase to $1.7 million (up from $1.6 million) from 1 July 2021.

Superannuation can be tricky and there may be additional tax or penalties if you don't get it right – so, if you have any questions at any time, or for more information please visit the Australian Taxation Office website or get in touch with your usual contact at our Bowral and Sydney offices or your advisor.

Small Business Fees and Charges Rebate

The NSW Government have introduced a rebate of $1500 for small businesses to help in their recovery from the impacts of COVID-19.

If eligible, the rebate is to be used to offset the cost of eligible NSW and Local Government fees and charges due and paid from 1 March 2021 (e.g. council rates, food authority licences, liquor licences, tradesperson licences etc.). The rebate cannot be used for fines or penalties.

In order to be eligible, small businesses (including non-employing sole traders) and not-for-profit organisations must:

• Have total Australian wages below the NSW Government 2020-2021 payroll tax threshold of $1.2million
• Have an Australian Business Number (ABN) registered in NSW and/or have business premises physically located and operating in NSW
• Be registered for Goods and Services Tax (GST)
• Provide a declaration that the business has a turnover of at least $75,000 per year

Note: only one $1500 rebate is available for each ABN.

Applicants will be required to provide supporting documentation at both the time of application (demonstrating eligibility for the rebate) and each time they draw down from the $1500 to which they are entitled (evidence of having paid the relevant expense they are claiming the rebate for).

The rebate is available until 30 June 2022.

For more information including how to apply, please visit Apply for the Small Business Fees and Charges Rebate

Please get in touch with your usual contact at our Bowral and Sydney offices should you wish to discuss how this rebate may apply to your business.