MAP - July 2020 Update

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NSW Small Business Recovery Grant: Applications now open
 

From 1 July 2020, eligible NSW small businesses will be able to apply for a Small Business Recovery grant of between $500 & $3,000 to help with costs of a safe re-open after the COVID-19 shutdown

Source: Service NSW

 

Who is eligible?

As at 1 March 2020, you must:

  • be a small business or not-for-profit organisation based in NSW
  • have an ABN with an annual turnover of more than $75,000 (a BAS statement will need to provided as evidence). Note: where a BAS is not submitted to the ATO, an income tax declaration verifying turnover will be required)
  • employ less than 20 full-time equivalent staff (you can still apply if you don’t employ)
  • have a payroll for the 2019-2020 financial year of less than $900,000
  • be in a highly impacted industry impacted by the Public Health Order 2020
  • have experienced at least a 30% reduction in turnover from March to July compared to the equivalent period (of at least 2 weeks) in 2019; and
  • have ‘eligible’ expenses associated with the safe reopening or up-scaling a business from 1 July 2020 where no other government support is available

The funding “can be used to relaunch business operations, from covering marketing and advertising expenses to fit-out changes and training staff on how to work safely under the current health conditions”, said NSW Minister for Finance and Small Business, Damien Tudehope.

How to Apply?

Apply online by visiting Service NSW website with your MyService NSW Account.  You can access this page at https://www.service.nsw.gov.au/transaction/apply-small-business-covid-19-recovery-grant
 

When do Applications Close?

16 August 2020

If you have any questions regarding the grant, or would like to us to check your eligibility, please get in touch with us.
 

A new Financial Year usually means tax and super changes

Some of these include, for:

  • Business:
  • NSW Payroll tax threshold increases from 1 July 2020 to $1,000,000 (previously $900,000)
  • Small Business Company tax rate for base rate entities reduces from 27.5% to 26% from 1 July 2020
  • Instant asset write-off threshold for each asset remains at $150,000 but extended to 31 December 2020 for businesses with an aggregated turnover of less than $500 million
  • Accelerated depreciation rates for small business purchasing assets to 30 June 2021

 

  • Individuals:
  • Increased small business income tax offset for sole traders and individuals receiving net small business income from a partnership or trust
  • the optional ‘simplified’ method for claiming home office expenses (from 1 March 2020 to 30 June 2020) of 80 cents per hour, reverts back to the ‘fixed rate’ of 52 cents per hour
  • If your employer is using Single Touch Payroll (STP), they are not obliged to provide you with an end-of-year payment summary.  This will now be called an ‘income statement’.  This will be ‘tax ready’ either by 14 July or 31 July, depending on the size of your employer. You will need a myGov account to access this statement or visit a tax agent who will be able to also access this information for your 2020 income tax return.
  • However, no changes to the personal income tax rates, which for a tax resident are as follows:

Source: ATO

Resident tax rates 2020–21

Taxable income

Tax on this income

0 – $18,200

Nil

$18,201 – $37,000

19c for each $1 over $18,200

$37,001 – $90,000

$3,572 plus 32.5c for each $1 over $37,000

$90,001 – $180,000

$20,797 plus 37c for each $1 over $90,000

$180,001 and over

$54,097 plus 45c for each $1 over $180,000

The above rates do not include the Medicare Levy of 2%

  • Superannuation:
  • From 1 July 2020, fund members aged 65 and 66 can make personal non-concessional contributions into their super account without the need to meet the “work test”.  Note: the legislation allowing up to three years of non-concessional contributions (3 x $100,000 = $300,000 in 2020/21) is yet to be passed
  • From 1 July 2020, spouse contributions can be made until the receiving spouse reaches age 75 (up from the previous age limit of 69).  Receiving spouses aged between 67 and 75 will still need to meet the requirements of the work test
  • The 50% reduction in the minimum drawdown rates for account based pensions continues in the 2020/21 income year
  • Fund members affected by the adverse economic effects of COVID-19 can access up to $10,000 from their super account from 1 July 2020. Applications close on 24 September 2020.  You need to be aware of eligibility conditions of this early release of super measure for applying.
  • The Superannuation Guarantee (SG) Amnesty program, which allows employers a once-off opportunity to disclose and pay any unpaid SG amounts for their employees, ends on 7 September 2020.  Employers taking advantage of this Amnesty can avoid interest and significant penalties, and can claim a tax deduction for any SG payments made by 7 September 2020
  • The concessional contributions cap for 2020/21 remains at $25,000, regardless of age.  These include employer contributions (including any salary sacrifice amounts), and personal contributions claimed as a tax deduction

If you would like to know more about these changes, and how they may affect you or your business, please get in touch with us.

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