New Director ID – Calling All Directors

If you are a director or plan to become a director in the future, regulation updates recently announced by the ATO affect you.
From November 1st 2021 the Australian Business Registry Services (ARBS) is introducing the Director Identification Number (Director ID).
A Director ID is a 15 Digit unique identifier that will be issued to a director who has verified their identity with the ARBS. These new measures are being put in place to;

  • help prevent the use of false and/or fraudulent director identities
  • make it easier for external administrators and regulators to trace directors’ relationships with companies over time
  • Identify and eliminate director involvement in unlawful activity

The Director ID is linked to the Director – not the company – so this means that you keep the same number forever even if you change companies, are a director of multiple companies, stop being a director, change your name or move to another state or county.

Who needs to apply?

You will need a Director ID if you are a director of:

  • any Company or corporation
  • a corporate trustee, for example, of a SMSF
  • foreign company registered with ASIC and carrying on business in Australia (regardless of where you live)

You will not need a Director ID if you’re:

  • a company secretary but not a director
  • acting as an external administrator of a company
  • running a business as a sole trader or partnership
  • referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act
  • a director of a registered charity with an organization type that is not registered with ASIC to operate throughout Australia
  • an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organization is also a registered Australian body

When do I need to apply?

If you became a Director on or before 31 October 2021 – You must apply by 30 November 2022

If you become a Director between 1 November 2021 and 4 April 2022 – You must apply within 28 days of appointment

If you become a Director from 5 April 2022 – You must apply before appointment

How do I apply?

Step 1: Setup MyGovID

How to Set up MyGovID

Step 2: Gather your documents

You will need the following information from the linked services in your MyGov account:

  • Your TFN
  • Your Residential address as held by the ATO
  • Information from two documents to verify your identity. These can include;
  • Bank account details
  • ATO notice of assessment
  • Super account details
  • a dividend statement
  • a Centrelink payment summary
  • PAYG payment summary

Step 3: Complete your online application

Apply Now with MyGovID

Our recommendation when applying

Whenever a new procedure like this is implemented, we make sure we test it ourselves so that we can assist you through this process as much as possible.

When completing his Director ID application, Mark Lawry found this application system to be poorly designed and the information matching was flawed to the point where he was locked out of the system for an hour!

The big problem lay when matching the PAYG Income Statements and Superannuation Fund Details.

Therefore, Marks recommendation when choosing the type of data to match is to use the following:

  • Notice Of Assessment: You will need the date of issue and ATO Reference Number which can both be accessed via MyGov.

  • Bank account details for any bank account that earned interest in previous years. You will need the BSB and Account Number.

Using your Director ID

When your Director ID is issued, please print it and keep it in a safe place and also send it to us via email admin@suntax.com.au and we will add it to your permanent records.

Viewing or updating your details
Using myGovID, you can log into the ABRS Online to view and update your Director ID details whenever you need to.

You can:

  • check your Director ID number and status – including when it was issued
  • view things to do, actions in progress and past activity
  • edit your profile preferences and some of your personal details

As this process must be completed through your MyGov account, this is unfortunately NOT a process that we can complete on your behalf, but if you do have any questions, Suntax is always here to help support you so please give us a call.

Kind regards,

Your Suntax Team

 

Frequently Asked Questions

What if I cannot apply online?

If you are unable to apply for your Director ID online, you can use one of the alternative options;

Apply by phone:
You will need your TFN and information needed to verify your identity (see step 2 under how to apply)
When you have the information, contact the ABRS
Contact ABRS

Or

Apply with a paper form
Director ID – paper application form
*Note that this is a slower process, and you will need to provide certified copies of your identity verification documents.

Will my Director ID be available to the public?

No.

ABRS can only disclose your Director ID to

  • Someone you give permission to disclose to
  • Certain Commonwealth, State and Territory government bodies
  • Courts and tribunals

The law does not authorize ABRS to disclose director ID’s to the public without the director’s consent. For now, the director ID will not be searchable by the public. The Registrar will consult with the community about what details can be disclosed and searched I the future.

Victorian COVID Construction Grant

Following on from the recent construction shutdown, the Victorian Government has released a new grant to assist those construction businesses unable to attend worksites due to lockdown restrictions imposed from 21 September to 4 October 2021.

The grant amount is determined on payroll size:

  • $2000 for non-employing businesses
  • $2800 for employing businesses with an annual payroll below $650,000
  • $5600 for employing businesses with an annual payroll between $650,000 and less than $3 million
  • $8400 for employing businesses with an annual payroll between $3 million and $10 million

Please note: if you business has already received any of the following grants, your business will not be eligible for this grant.

  • Business Cost Assistance Program Round Two
  • Business Cost Assistance Program Round Two July Extension
  • Small Business COVID Hardship Fund

Businesses can apply when they meet all of the following criteria

The business must:
  • be located within Victoria (Regional businesses can apply if the construction site was in one of the areas listed below)
  • have an Annual Payroll of up to $10 million in 2019-2020 on an ungrouped basis
  • be registered for GST as at 24 September 2021
  • hold an up to date ABN registration  as at 24 September 2021
  • operate in one of the business sectors listed in the  eligible ANZSIC codes
  • have been contracted (prior to the restrictions being announced) to work or supply workers to a construction site in one of the following areas during the construction shutdown:

– Metro Melbourne

– City of Greater Geelong

– Mitchell Shire

– Surf Coast Shire

Employing business must also:

be registered with Worksafe Victoria

Non-employing businesses must:

hold a WorkSafe Construction Induction Training Card (White card or ‘ticket’) and these details must be supplied in the grant application

You can find out more at Construction Grant FAQ’s

 

How do I apply?

Easy Way – Let Suntax apply for the COVID Construction grant on your behalf by here. The cost to prepare this application is $450 plus GST, which is fully refundable if your grant application is not successful*

OR

You can apply directly as a business owner via the Business Victoria website.

 

When do applications open and close?

Applications are open right now and will close on the earlier of Tuesday the 9th of November or when the program funds are exhausted.

 

The directors of Suntax would like to thank the people who make up our “Expert COVID Grants Team” for their late nights and awesome efforts in processing our clients’ grants. Overall, more than 99% of our clients have survived through the COVID lockdowns with the help of their hard work.

We are really looking forward to seeing our clients’ businesses open back up and getting back to some sort of normality. Please remember to support your local small businesses, they have all been doing it tough and they are the engine room and employers in our local communities.

All going well, Suntax is planning on returning to our offices on Friday November 5th and we look forward to seeing you all in person sometime soon.

The Suntax Team

Commercial Tenancy Rent Relief Scheme

Commercial Tenancy Rent Relief Scheme – TENANTS

The Victorian Government has issued new regulations to offer further relief for commercial tenants struggling with rent payments.

The scheme will help small and medium-sized businesses with an annual turnover of less than $50 million that have experienced a loss in turnover of more than 30 per cent during the pandemic.

Eligibility for rent relief has been broadened, with tenants now able to choose three consecutive months between 1 April and 30 September 2021 to compare to their turnover in the same three months in 2019.

Businesses will get financial relief in the form of a proportionate reduction in rent. For example, a business with a turnover of 40 per cent of pre-pandemic levels can only be charged 40 per cent of its rent. Of the balance, at least half must be waived, with the remainder to be deferred.

You can find more information on the scheme here:  Commercial Tenancy Relief Scheme and Scheme FAQ’s

 

What Actions Do You Need To Take?

To receive a reduction in your rent you will need to action the following:

Send a letter to your commercial landlord.  A template can be found here: Rent Relief Request Template

Complete a Statutory Declaration which can be found here: Victorian Statutory Declaration

Along with your letter and Statutory Declaration, you need to supply one of the following to confirm your reduction in turnover for three consecutive months between 1st of April 2021 and 30th of September 2021 compared to the same periods in 2019:

  • Reports from your accounting records showing evidence of your turnover comparison figures, or
  • Business Activity Statements showing evidence of your turnover comparison figures, or
  • Statements from your bank showing comparative reduced income, or
  • A statement from your Accountant showing evidence of your turnover comparison figures

If you are on Xero, here is a link to a 3 minute video to show you how to extract your reports to attached to your rent relief letter: Xero COVID Support Report Video

We believe most business owners will be able to prepare this information for the rent relief. If you do need our help, please call our office on 03 8746 7700 and you can book an appointment with one of our COVID Grant team experts. The fee for this work will be dependant on the level of help you need.

 

Commercial Tenancy Rent Relief Scheme – LANDLORDS

 

Landlords, you have not been forgotten. Landlords who have provided rent relief to their tenant will be eligible for land tax relief as part of the Victorian Government’s 2021 measures. These measures have not been confirmed but the expectation is that there will be a 25% reduction in land tax for those commercial landlords who provide this rent relief. Keep an eye on our socials for more detailed information once it is released.

Wishing everyone the best of health during these trying times. The full Suntax team are working from home to support you, please be kind to each other, look after each other and try have a laugh every now and then.

We are here for you.

The Suntax Team

COVID Hardship Grant

In good news for Victorian Businesses, the Victorian Government has released its Small Business COVID Hardship Fund to assist small and medium businesses in need.  This fund is for those businesses who didn’t qualify for the Business Cost Assistance Program funding.  For this one, you can forget those ANZIC codes!

In an interesting turn of events, businesses are encouraged to compare their best consecutive two-week trading period between 27 May and 10 September 2019, with their worst consecutive two-week trading period between 27 May and 10 September 2021. This will open this grant to many more businesses than we originally expected.

Eligible businesses will receive a grant of $10,000

To be eligible for this funding applicants must:

  • Operate a business located within Victoria;
  • have experienced a reduction in turnover of at least 70% for a minimum consecutive two week period comparable to a benchmark period in 2019 as a direct consequence of COVID-19 restrictions since 27 May 2021;
  • have had an annual payroll of less than $10 million in 2019/20;
  • be registered for GST on and from 28th July 2021;
  • not have received any of the current Covid Business Cost Assistance Funding support packages launched on or after 27 May 2021, including: Business Costs Assistance Program Round Two, Licensed Hospitality Venue Fund 2021 or the Victorian Events Support Program.

Employing businesses must also:

  • be registered with Worksafe Victoria
  • attest that the business is supporting its workers to access any paid leave entitlements, or that if a person can work from home, to work from home during the COVID-19 restrictions, and supporting their casual workers, where possible.

How do I apply?

This fund is a little different to previous grants.  To apply for this fund, your reduction in turnover needs to be demonstrated.  This can be done via one of three different ways:

 

Easy Way – Let Suntax apply for the Small Business COVID Hardship Fund on your behalf by clicking here . The cost to prepare this application is $450 plus GST, which is fully refundable if your grant application is not successful*

OR

You can apply directly as a business owner via Hardship Fund and have Suntax supply the required letter to complete your application.  The cost to have your reports reviewed, verified and confirmed via letter is $330 plus GST*

OR

You can apply directly as a business owner without verification from a qualified accountant or registered agent by registering your interest for the program via Hardship Fund.  Applicants may receive an Invitation to Apply email from the department. Applications received via the Invitation to Apply process may take up to 25 business days to process, due to the need for additional verification measures

*Note: If you are not on Xero and need Suntax to analyse your fortnightly turnover decline to assess eligibility, you will need to provide backups of your files or log in details. the cost of the ‘non Xero’ assessments will be (an additional) $120 + GST. The only reason for this (extra) charge is that Xero has automated reports that help Suntax assess your eligibility, whereas all other programs do not have this automation.

Example of a business that has a 70% reduction in turnover because of these current Victorian lockdowns:

Jim Bob ran a business as an electrician. In the 2 weeks between 1 June 2019 and 15 June 2019, his business turnover was $100,000. Because of the Victorian lockdowns from the 27th of May 2021, he was unable to perform all his normal services. In the 2 weeks between 1 August 2021 and 15 August 2021 his turnover was only $26,000, resulting in a 74% reduction in turnover. The great news is that Jim Bob would be eligible for this $10,000 grant. It is important to note that we do not need to compare the same fortnights in 2019 and 2021 to be eligible for this grant.

We understand this additional funding will be a great relief to a lot of businesses who previously did not fit into the list of ANZIC codes required for the last few rounds of support.

Here at Suntax we once again would like to thank all of our team for their amazing support as they continue to work remotely through our busy ‘tax time’ period while also doing everything we can do to assist all of our clients with any Government Grants and other funding.   As always, we are committed to helping you through this in any way that we can.

Stay safe & stay masked, we are almost there!

The Suntax Team

New Business Cost Assistance Program Round 3 – No action is required if you have already been receiving these payments

The Victorian Government will provide new cash grants for businesses affected by this latest August Lockdown.Additional Support Announced for Victorian Businesses

If you were eligible and have applied for the Business Cost Assistance Program Grant in May-June 2021 or for the July Extension of this Grant, you will receive an additional payment of $2,800 automatically – NO FURTHER ACTION IS REQUIRED TO RECEIVE THIS PAYMENT

What if I haven’t applied for the Business Cost Assistance Program yet?

If you have not yet applied for this Business Cost Assistance program but your business is eligible you can do so now to receive both the July extension payment of $4,800 plus the above $2,800.  Applications close on Friday the 13th of August.

The list of eligible businesses can be found here: Eligible businesses list.

How To Apply for the Business Cost Assistance Program:

  1. Easy Way – Let Suntax apply for the Business Cost Assistance Program on your behalf by clickinghere. The cost to prepare this application is $220 including GST, which is fully refundable if your grant application is not successful.

OR

  1. Complete the application form yourself via Business Cost Assistance Program Round 2 July Extension Please note, that you will need to confirm that your industry code listed on the Australian Business Register matches the eligible industries for this grant. In order to confirm your industry code, you will need to link your MyGov ID to the Australian Business Register and check your businesses details.

Licenced Hospitality Venue Fund

If you were eligible and have been receiving the Licenced Hospitality Venue Fund you will receive additional payments of between $5,000 and $20,000 graded by venue capacity.  These payments will be made automatically – NO FURTHER ACTION IS REQUIRED TO RECEIVE THIS PAYMENT

IMPORTANT: Other Support Payments For Employees

There is other support out there for employees.  If you are affected by the lockdown restrictions you may now be eligible for support payments without the ‘assets test’ that had been previously applied. These payments start from the first day of lockdown and are payments of:

  • $600 for Victorian employees that lose 20 hours or more of work during the period of the lockdown
  • $375 for Victorian employees that lose between 8-20 hours of work during the period of the lockdown

All applications can be made through: Services Australia

We suggest you pass this information onto your employees if you think they might be eligible.

 

Once again please know that Suntax is with you as we navigate these testing times.  We are ‘business as usual’ with our Virtual Google Meet’s and available on the phone.  If there is anything at all that we can help you with please just reach out and let us know.

The Suntax Team

The Victorian Government will provide new cash grants for businesses affected by the short lockdown in July 2021 because of the Covid-19 Delta strain outbreak in Victoria.New Business Cost Assistance Program Round Two

If you were eligible and applied for the May-June 2021 Business Cost Assistance Grant, your business will automatically receive the new July 2021 Lockdown Grant.  The list of eligible businesses can be found here: Eligible businesses list.

The July 2021 Grant payments will be:

  • $3,000 for Licenced Hospitality Venues
  • $2,000 for all other Eligible Businesses

What If I Haven’t Received The May-June 2021 Grant Payments Yet?

The payment of these Grants has been much slower than the Government originally promised.  If you have not received your grant monies yet, you are not alone.  More than half of our clients that applied are still waiting.  However, the good news is, we are starting to see more payments coming through every day.

Other Support Payments For Employees

For employees affected by the public health restrictions in Victoria, they may now be eligible for support payments without the ‘assets test’ that had been previously applied. These payments start from the first day of lockdown and are payments of:

  • $600 for Victorian employees that lose 20 hours or more of work during the period of the lockdown
  • $375 for Victorian employees that lose between 8-20 hours of work during the period of the lockdown

All applications can be made through: Services Australia

We understand that almost every Victorian business will again be impacted by our 5th round of lockdowns and that it can be frustrating to hear that unfortunately these grants are only available for specific businesses.

For those of you who will not be receiving any assistance in this round of Grants, we feel your frustration.  If there is anything you think we can help you or your business with, please reach out.  We are currently in full ‘tax time mode’ and we are all preparing returns via virtual meetings from home. We hope to be back in the office this Wednesday for anyone wanting face to face meetings.

The Suntax Team

EOFY Processing with Single Touch Payroll 2021It’s time to process your EOFY Payroll using Single Touch Payroll (STP).

Employees now access their Income Statements (previously known as Payment Summary or Group Certificate) through their personal MyGov account.  This happens after you have completed your Single Touch Payroll processing.

To finalise your Single Touch Payroll in Xero you need to complete your End of year Employer Reporting.  There are two ways you can do this:

  1. Easy Way – Let Suntax complete your Employer Reporting for you.

Click here for Suntax to Prepare your Employer Reporting

The cost to prepare Employer Reporting will be as follows:

  • STP Finalisation – $110 + $22 per employee
  • Annual Workers Compensation – Declaration of Rateable Remuneration
    • $88 if we are completing STP Finalisation
    • $198 if we are not completing STP Finalisation
  • Payroll Tax Annual Reconciliation – $275 per state reconciliation

If you choose this option, you do not need to read this newsletter any further.

OR
  1. Complete the Employer Reporting yourself using the instructions below:

Completing the Employer Reporting

Step 1 – Complete the Instructions on the attached Xero Payroll Checklist
Step 2 – Workers Compensation Annual Declaration of Rateable Remuneration

At the end of each financial year, employers are required to declare their total rateable remuneration to their Workers Compensation insurer and an estimation of the following year’s remuneration.  If you employ staff in various states, you may be required to hold a workers compensation policy for each state.  Please let us know if you would like assistance with this.

If you are registered for Workers Compensation, your insurer will issue a Tax Invoice shortly after the end of the financial year.  This tax invoice will provide details on how to access your online account if you haven’t done so already.  By logging onto your online account, you can make the declaration online.

If you only employ staff in Victoria, here is a link to assist you in calculating your remuneration:   Remuneration inclusions and exclusions

Or, if you would like further information about Workers Compensation Insurance in Victoria, click on this link:  More Information about Victorian Workers Compensation Insurance

Step 3 – Payroll Tax Annual Reconciliation (if applicable)

Payroll tax is a state government imposed tax with varying thresholds and rates for each state.  If you employ staff in multiple states and you need advice on your payroll tax status, please contact us.  If you only employ staff in Victoria and your total wages plus superannuation exceeds $650,000, then you will be required to register for Payroll Tax.

At the end of each financial year, if you are registered for Payroll Tax, you are required to submit an Annual Reconciliation.

We know it has been another year of challenges and EOFY can be a particularly hectic time so if these steps seem too onerous or time consuming, please remember, we have a team at the ready to process your EOFY Employer Reporting. Just click the button below.

Click here for Suntax to Prepare your Employer Reporting

 

The Suntax Team

Following the latest Covid outbreak in Victoria and the ‘Circuit Breaker Lockdown’ across all of Victoria, the Victorian Government has released two new business support packages.New Circuit Breaker Business Support Packages

The details have only been released TODAY (Thursday the 3rd of June) at 4.45pm. We have already lodged one of these forms so we know what is required to process a successful grant application.

There are two new Government Grants available now:

1. Business Cost Assistance Program

a. For Metro Businesses in Victoria – A $5,000 Grant for businesses listed in the eligible ANSZIC codes with an annual payroll of up to $10 million whether they have employees or not. Sole traders without employees are eligible. All applicants must be registered for GST on 27th of May 2021.

b. For Regional Businesses in Victoria – A $2,500 Grant for businesses listed in the eligible ANSZIC codes with an annual payroll of up to $10 million whether they have employees or not. Sole traders without employees are eligible. All applicants must be registered for GST on 27th of May 2021.

In summary, this grant covers the following general business classes:

  • Non-essential retail
  • Hospitality
  • Tourism
  • Events and related services
  • Services and education
  • Health care and social assistance

If your business is in one of these classes but was able to partially operate during restrictions you may still be eligible for the grant if you were unable to  carry your usual business activities.

For example:

  • a retail business unable to open for normal trading but changed its operation to ‘click and collect’
  • a restaurant unable to have dine-in service but can operate a limited takeaway service.

For more details and examples, please click here for a list of Frequently Asked Questions.

How To Apply for the Business Cost Assistance Program:
  1. Easy Way – Let Suntax apply for the Business Support Fund on your behalf by clicking here. The cost to prepare this application is $220 including GST, which is fully refundable if your grant application is not successful.

OR

  1. Complete the application form yourself via Business Cost Assistance Program. Please note, that you will need to confirm that your industry code listed on the Australian Business Register matches the eligible industries for this grant. In order to confirm your industry code, you will need to link your MyGov ID to the Australian Business Register and check your businesses details.

 

2. Licenced Hospitality Venue Fund Payment

a. For Metro Businesses in Victoria – A grant of $7,000 for eligible liquor licensees operating a restaurant, hotel, café, pub, bar, club, or reception centres that are registered to serve food and alcohol. All applicants must be registrered for GST on 27th of May 2021.
b. For Regional Businesses in Victoria – A grant of $3,500 for eligible liquor licensees operating a restaurant, hotel, café, pub, bar, club, or reception centres that are registered to serve food and alcohol. All applicants must be registrered for GST on 27th of May 2021.

NOTE: This grant is larger than the ‘Business Costs Assistance Grant.’  As you can only apply for one grant, you should apply for this grant first, and if it is declined, you can apply for the Business Costs Assistance Grant.

How To Apply for the Licence Hospitality Venue Grant:

To claim this licenced hospitality Venue Fund Grant, you can only use a link in an email provided by Business Victoria. These links will be sent according to your registration of your eLicence, as detailed below.

  • Eligible liquor licensees with an eLicence email address will receive an email containing their grant application link from Business Victoria from Thursday 3 June 2021.
  • Liquor licensees without an eLicence email address must set one up on their Victorian Commission for Gambling and Liquor Regulation Liquor Portal by 20 June 2021 to receive their grant application link from Business Victoria within five business days.

Because of the requirement to apply via the link in an email, Suntax will not be able to apply on your behalf for the Licenced Hospitality Venue Fund Grant.

Almost every Victorian business was affected by these latest circuit breaker lockdowns but unfortunately the Government have only issued these funding options for the specific business Industries.

For those of you who will not be receiving any assistance in this round of Grants, we feel your frustration.  If there is anything you think we can help you or your business with, please reach out.  We are currently working from home and can still offer virtual meetings to give you a hand.

 

The Suntax Team

Following on from the recent Circuit Breaker Lockdown, the Victorian Government has released an additional $143 million package to support eligible businesses.Circuit Breaker Lockdown Support Packages

It is IMPORTANT TO NOTE THAT THESE NEW GRANTS ARE ONLY AVAILABLE FOR A VERY SELECT GROUP OF INDUSTRIES.

These include Hospitality, Food Wholesaling, Tourism, Events & Related Services and Florists.  For a more concise list, please click the List of Industry Codes to see if your business is eligible.

There are three new Government Grants available:

  1. Business Cost Assistance Program – A $2000 one off Grant for eligible businesses with an annual payroll of up to $3 million whether they have employees or not.
  2. Licenced Hospitality Venue Fund Payment – An automatic one off payment of $3000 for those who received the Licenced Hospitality Venue Fund Grant last year (please note, this makes you ineligible to receive the Business Cost Assistance Program).
  3. Victorian Accommodation Support Program – A two tiered funding program for accommodation providers.

The details of these grants are summarised below.

1. Business Cost Assistance Program – Action Required

This is a $2000 one off Grant for eligible businesses with an annual payroll of up to $3 million whether they have employees or not.   If your business industry code is on this List of Industry Codes you are eligible to receive the $2000 Business Cost Assistance Program Grant.

Your business must have experienced direct costs due to the circuit breaker action announced on 12 February 2021.  These costs incurred do not necessarily have to be up to the value of $2000 to receive the full $2000 Grant.

How do I apply?

  1. Easy Way – Let Suntax apply for the Business Support Fund on your behalf by clicking here. The cost to prepare this application is $220 including GST, which is fully refundable if your grant application is not successful.

OR

  1. Complete the application form yourself via Business Cost Assistance Program. Please note, that you will need to confirm that your industry code listed on the Australian Business Register matches the eligible industries for this grant. In order to confirm your industry code, you will need to link your MyGov ID to the Australian Business Register and check your businesses details.

 

2. Licenced Hospitality Venue Fund Payment

If you received a grant through the Licenced Hospitality Fund last year you will be automatically eligible for the additional $3000 grant.

You DO NOT NEED TO APPLY for this payment.  You will be contacted by the Victorian Government with further information.

 

3. Victorian Accommodation Support Program

This is an expansion on the Regional Tourism Accommodation Support Program from last year.  It is being offered as a two tier program.

  • Tier 1:  Funding of $2250 (ex GST) per Accommodation Premises experiencing 10 or fewer cancelled nights
  • Tier 2:  Funding of $4500 (ex GST) per Accommodation Premises experiencing 11 or more cancelled nights

 

Action Required:

The Victorian Accommodation Support Program will open soon.  You can register your interest in this program by clicking this link  Victorian Accommodation Support Program

Almost every Victorian business was affected by these latest circuit breaker lockdowns but unfortunately the Government have only issued these funding options for the specific business Industries as listed above.

For those of you who will not be receiving any assistance in this round of Grants, we feel your frustration.  If there is anything you think we can help you or your business with, please reach out.  We are back in the office and while we still offer virtual meetings, we are now available for face to face meetings as well if you prefer.

 

The Suntax Team

The arrival of COVID-19 has transformed the lives of small business owners across the country. In Victoria, under shifting waves of lockdown restrictions, many have seen sales plummet and their doors temporarily close.Xero and the Victorian Government’s Small Business Digital Adaptation Program

As the state moves into new phases of recovery, the key to not only your business’ survival, but its continued growth, lies in boosting your digital capabilities.

By automating processes such as your accounting package, online payments, and the many other options available to you, you will also be able to achieve live access to your accountant, with a direct line into your business enabling them to provide advice and support as needed.

The great news is, Xero has partnered with the Victorian Government to create the Small Business Digital Adaptation Program.  Compromising of a $20m investment, this program is designed to increase Victorian small business’ digital capability by encouraging them to trial new software.

The program is open to Victorian businesses from all industry sectors and covers not only Xero subscriptions but any of their add on software programs as well.
On the condition that you haven’t used the participating software before, you will be entitled to a reimbursement of $1,200 after purchasing a software subscription.

If you are new to Xero’s online accounting software the $1,200 rebate can go towards the subscription of any of their Starter, Standard or Premium plans. Already using Xero?  You can receive the $1,200 rebate when you sign up to any of the other participating providers.

To qualify for the program, you must:

  • Operate your business in Victoria as a sole trader, micro business or small business
  • Have held a valid ABN since 13 September 2019
  • Be registered for GST since 13 September 2020
  • Report sales of at least $75,000 in your annual tax return
  • Be registered with the responsible Federal or State regulator
  • Be a new customer to the product

Follow these easy steps to get started:

  1. Register for the Small Business Digital Adaptation Program on the program website here.
  2. Once registered click on the Xero logo, which will take you to Xero’s dedicated Small
  3. Business Digital Adaptation Program landing page.
  4. Click the ‘Sign up’ button and fill out your business’ details to start a free 30 day trial.
  5. When you’re ready or your trial expires, select the Xero plan that best meets your needs and enter your payment details.
  6. You will be contacted one month after signing up through the program to ensure that your business has begun using the software.
  7. Once you’ve confirmed continued use, you will receive a purchase rebate of $1,200 to cover 12 months access to your chosen product (The Victorian Government will pay within ten working days of receiving confirmation).

As always, if you have any questions, please do not hesitate to give our office a call on 03 8746 7700.

 

Your Suntax Team

Call to action for all JobKeeper extension eligible businesses. Yesterday, the ATO released the new JobKeeper turnover declaration which needs to be completed in order to receive your next round of JobKeeper Payments.JobKeeper Action Required

PLEASE NOTE: The Jobkeeper extension is also commonly referred to as JobKeeper 2.0. In order to be eligible for the JobKeeper extension for the period 28th of September 2020 to 3rd of January 2021, your business must pass new eligibility requirements and the ATO must be notified of the eligible turnover test and numbers before they will issue any refunds.

Please click here (or click the picture below) if you are eligible for the JobKeeper extension and would like Suntax to complete the October 2020 JobKeeper declaration for you.

Click here for Suntax to complete your October Jobkeeper declaration

If you wish to complete this declaration yourself, you will need to log onto ATO Online Services, notify the ATO of your eligibility under the specific tests and then submit the JobKeeper declaration.

New Jobkeeper Extension Tests


To qualify for this JobKeeper Extension, a business must have experienced a decline in GST turnover of 30% or more for the September 2020 quarter compared to the September 2019 quarter, as reported on their BAS’s. If this test is not passed, there are alternate tests that may help with your eligibility including:-

  • Irregular Turnover Test
  • Substantial Increase in GST Turnover Test
  • Business Commenced Test
  • Business Acquisition or Disposal that Changed the Entity’s current GST Turnover
  • Business Restructure that changed the Entity’s current GST Turnover
  • Business Affected by Drought or Natural Disaster
  • Sole Trader or Small Partnership with Sickness, Injury or Leave

More information on these tests can be found by clicking here. These tests are complex and if you need help, Suntax can help assess your eligibility for $220 by clicking this link. All businesses must disclose their turnover calculations to the ATO before you can receive JobKeeper Extension payments.

DEADLINE

A strict deadline has now been set for the monthly declaration to be completed.  If you have not lodged your monthly declaration by the 14th of each month or you WILL NOT receive the previous months JobKeeper payments.

While we are still working with Jobkeeper, it is important to remember that yesterday we celebrated the first day in 6 months that Australia has not had any community transmissions of Covid-19 which is an amazing result compared to our international counterparts.
We are so impressed with the resilience you have all shown through this pandemic and it really shows the true Australian entrepreneurial spirit shining through. Lets hope for a fantastic lead up to Christmas, filled with strong consumer spending, dinners with our family and friends and a festive Christmas filled with fun, laughs and happy times.

You are all part of our Suntax family and we look forward to seeing you soon.

 

The Suntax Team

JobKeeper 2.0 – Don’t think you’re eligible?  Think again. There are new Alternative Turnover tests which could mean you areAlternative Turnover Testing for JobKeeper 2.0

You will no doubt be aware that the JobKeeper scheme has been extended to 28 March 2021.

It has been widely publicised that in order to qualify for this JobKeeper 2.0 a business must have experienced a decline in GST turnover of 30% or more for the September 2020 quarter compared to September 2019 and then the December 2020 quarter compared to December 2019.

But what if you do not pass these tests? Does this mean your business will no longer receive JobKeeper?

MAYBE…… BUT MAYBE NOT

Fortunately, the answer is not a definitive NO. There is still the possibility of qualifying for JobKeeper 2.0 based on the ‘alternative turnover tests’ that the ATO have released.

The alternative turnover tests can be used to determine whether your business has experienced an ‘actual true’ decline in turnover.  An example of this would be where the September 2019 quarter is not representative of your actual business performance.

We have listed below two of the alternative turnover tests that are available as well as an example to demonstrate the importance of reviewing all of your business data to seek the possibility of retaining JobKeeper 2.0 assistance.

While there are seven alternate tests available which may help your business JobKeeper 2.0 eligibility, the two selected below are the most widely used:

Irregular Turnover Test

This test can be used where:

  • The difference in your quarterly business income is more than 50% from the highest to the lowest quarter
    between 1 July 2019  – 30 June 2020

or

  • The difference in your quarterly business income is more than 50% from the highest to the lowest quarter
    between 1 March 2019 – 29 February 2020

Please note: you cannot use this test if your business income is seasonal

Substantial Increase in GST Turnover Test

This test can be used where:

  • Your business has had a substantial increase in revenue prior to the September 2020 quarter and therefore, doesn’t reflect an appropriate decline when comparing with the September 2019 quarter.

There are two parts (limbs) to this test.

If your business passes the first limb, it then needs to pass a secondary comparison (limb 2) to
become eligible for JobKeeper 2.0

Limb 1

This is used to test  one of the following:

  • 12.5% increase in revenue by comparing the 3 months ending June 2020 to the 3 months ending March 2020

or

  • 25% increase in revenue by comparing the 6 months ending June 2020 to the 6 months ending December 2019

or

  • 50% increase in revenue by comparing the 12 months ending June 2020 to the 12 months ending June 2019

Limb 2

Your eligibility is then confirmed by establishing a 30% decline in revenue by comparing your September 2020 quarter with either:

  • The June 2020 quarter

or

  • The 3 months from 1 December 2019 and 29 February 2020

Real life example

A client of Suntax that owns a florist business did not pass the basic JobKeeper 2.0 test and she was confident she wouldn’t be eligible for this JobKeeper extension because her turnover had not fallen by 30% in the September 2020 quarter compared to September 2019.

But, in May 2020 she had a spike in sales. This increase in sales was sufficient to qualify her business to apply one of the alternate testing methods – Substantial Increase in GST Turnover.

The results of this analysis allowed us to compare an alternative quarter’s drop in turnover, making her eligible for JobKeeper 2.0

 

Click here for Suntax to complete your JobKeeper 2.0 Alternative Testing

The costs to prepare this analysis and provide our expert opinion is $250 + GST.

We cannot guarantee that your business will qualify for JobKeeper 2.0 (even after analysing your data) however, we believe it is well worth the investment to exhaust all potential avenues to gaining this significant Government support.

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Additional Tests

The other five ‘Alternate Tests for JobKeeper 2.0’ are very specific to a business’s circumstances and would require even more detailed analysis.  If any of these circumstances relate to your business, please call and book in a time to assess these tests with your accountant.

Business Commenced Test

Business Acquisition or Disposal that Changed the Entity’s current GST Turnover

Business Restructure that changed the Entity’s current GST Turnover

Business Affected by Drought or Natural Disaster

Sole Trader or Small Partnership with Sickness, Injury or Leave

You can find out more information on these additional tests here:  Alternative Turnover Tests

 

Regards

Your Suntax Team