Introducing The Xero Beautiful Business Fund.

Xero announces Beautiful Business Fund to boost future aspirations of small business Designed to celebrate small businesses, empower success and accelerate their growth. The Xero Beautiful Business Fund is offering NZ$750,000 in funding to Xero small business customers in Australia, New Zealand, Singapore, South Africa, the United States, Canada and the United Kingdom. There are 4 categories in seven countries and no limit on how many you can enter. Think you qualify for all categories? Apply for all four! Innovating for sustainability: How is your business taking the next step on your sustainability journey? Trailblazing with technology:  How is your business seeking to innovate and set pace with technological advancements? Strengthening community connection: How is your business striving to give back to your community? Upskilling for the future: How is your business thinking ahead and preparing for the future?

Click here to view everything you need to know about the Xero Beautiful Business Fund

For each category, there will be seven regional winners identified by a regional judging panel. The pool of regional winners in each category will then be evaluated by a global judging panel and the winner of each category will receive an additional global prize. Xero has made applying for the Xero Beautiful Business Fund easy! Follow the below simple steps for each category you’d like to apply for: Shoot a 90 second pitch video for your organisation (Xero even has a application video filming guide!) Upload the video to the dedicated Xero website Fill out the short application form Applications close on 6 October 2023. Good luck! We would love for one of our amazing Suntax small business clients to win funding from Xero. Regards, Your Suntax Team

It’s time to process your Taxable Payment Annual Report (TPAR)

If your Business employs contractors and is in the below list of industries, you must lodge your Taxable Payment Annual Report (TPAR) by the 28th of August 2023.
Businesses directly involved in the following services need to lodge TPARs:

• Building and Construction Services
• Cleaning Services
• Courier or Road Freight Services
• Information Technology Services
• Security, Investigation and Surveillance Services

There are two ways you can finalise your Taxable Payment Annual Report.

Option 1: The Easy Way
Let Suntax complete your Taxable Payment Annual Report for you

The cost to prepare your Taxable Payment Annual Report is $220 plus GST.  If you choose this option, you do not need to read this newsletter any further.

Click here for Suntax to prepare your Taxable Payment Annual Report 

Option 2: Complete the Taxable Payment Annual Report yourself using the ATO supplied instructions below

By using the instructions below as supplied by the ATO you can complete your Taxable Payment Annual Report yourself.

ATO Instructions on how to complete independently

IMPORTANT NOTE: The processing of your Taxable Payment Annual Report is something the ATO will pursue if not lodged by the due date of August 28th.

Regards,
Your Suntax Team

Xero has two versions of their reports an old and a new version. On 31^st July 2023 Xero are switching to the new reports only. Please note NO data will be lost!

Reporting is one of Xero’s most loved products and a core part of the Xero platform. All software has a lifecycle, the older it becomes the more challenging it gets to maintain it. For Xero reporting it was time for an upgrade.

If you are currently using the old version of reports Xero are encouraging you to switch to the new ones so you get familiar with them before the old versions are retired on the 31st July 2023.

If you are using an old report and the newer version is available you will see a message prompting you to switch to the new report.

What is going to happen from the 31^st of July 2023? 

• You won’t be able to run Xero old reports
• Any saved drafts of old reports will be removed from Xero
• You’ll have read-only access to old published and archived reports

There are some reports and features Xero won’t retire on 31 July 2023 as they are upgrading them in a different way or at a later date. These include:

• GST Return
• GST Reconciliation report
• Budget Manager
• Budget Summary report
• Expense Claim Summary report
• Foreign Currency Gains and Losses report
• Inventory Item Summary report
• Sales by Item report
• Tracking Summary report
• Unrealised Gains and Losses report
• Reporting API (please note this is not a report)

Be prepared before the end of July

If you wish to use the new reports as they are you simply just need to open the report and get started. If the report is more complex you can check our Xero’s steps for getting started with new reports.

For July’s reporting you will be required to do your end of month reporting in the new reports as the old version will not be available.

Click here to watch Xero’s YouTube Video on how easy it is to move your work across.

How do I use the new reports?

On the right hand side of your screen panel you will see Xero’s Tips and Tricks. Here you will find links to support articles, how-to videos and a feedback button on the new reports.

Xero Central contains an abundance of helpful information, search for a particular report here or you can check our Xero’s YouTube for the playlist of reporting videos.

Lastly you can register for a live webinar on reports.

As always, we are here to help if you need any assistance.

Regards,
Your Suntax Team

 

Source – Xero Central. 

It’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: Option 1: The Easy Way Let Suntax complete your Employer Reporting for you.   The cost to prepare Employer Reporting will be as follows: STP Finalisation – $125 + GST and $21 + GST per employee Annual Workers Compensation – Declaration of Rateable Remuneration $85 + GST if we are completing STP Finalisation $190 + GST  if we are not completing STP Finalisation Payroll Tax Annual Reconciliation – $250 + GST per state reconciliation If you choose this option, you do not need to read this post any further.

Request Suntax to complete STP Finalisation

Option 2: Complete the Employer STP Finalisation Yourself   Step 1 – Complete the Instructions on the 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 $900,000, 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. What’s changing in FY2023/24 The Fair Work Commission (the Commission) has announced: The National Minimum Wage will be increased to $882.80 per week or $23.23 per hour a 5.75% increase to minimum award wages. The increase applies from the first full pay period starting on or after 1 July 2023. The base Superannuation Contribution Rate is increasing from 10.5% to 11%. Check if you need to update the superannuation rate These changes will apply to pay runs with a payment date of 1 July 2023 onwards. 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 above. Regards, Your Suntax Team

 

If you have worked from home in the last financial year, there have been changes to the way you can claim your Working From Home (WFH) tax deductions.

• From 01 July 2022 – 28 February 2023 – The ATO will accept a record of the number of hours worked from home through a representative 4 week period to estimate the total of hours worked.
• From 01 March 2023 – you are required to have recorded every hour you have worked from home by keeping a WFH diary.

The ATO has changed the way WFH deductions can be claimed. They now fall under two categories.

1. The Fixed Rate (67c per hour) Method, this is likely to result in lower tax refunds as this method does not allow  you to also claim internet, mobile, stationery and computer consumables 
2. The Actual Cost Method, requires a calculation of your WFH deduction based on your actual electricity, gas, mobile phone, internet and other work related expenses.

To ensure we can calculate the most tax effective result for you, we will need you to add up your gas, electricity, phone and internet bills for the year and provide the hours you have worked from home.

We look forward to seeing you soon,

Your Suntax Team

 

Please join us for a Suntax Seminar.

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 1^st 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.

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 – 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

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.

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

2. 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.

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