MAP - June 2021 Update
COVID-19 Small Business Fees & Charges Rebate
Eligible NSW small businesses, non-employing sole traders and not-for-profit organisations can apply for rebates of up to $1,500 to offset NSW and local government fees.
- The scheme lasts until 30 June 2022
- One $1,500 rebate is allowed per ABN. Multiple claims can be submitted until the full value of $1,500 is reached.
- Wages total needs to be less than the $1.2 million 2020-2021 payroll tax threshold.
- A turnover declaration (accountant's letter) is also needed showing turnover of at least $75,000 per year. The small business also needs to be registered for GST (this requirement not needed for not-for-profits).
- The rebate can be used to offset NSW and local government fees & charges, including, but not limited to, council rates, tradesperson licences, food authority licences and event fees. Using the rebate for fines and penalties is not permitted.
Please contact our team if you would like more information or to check your eligibility for this rebate.
You will need to Apply Online at Service NSW website.
End of Financial Year – To do items
We understand the EOFY is a busy period for you. With super payments, finalising payroll reporting and reconciliations, it is important to refer to these key dates to ensure these EOFY tasks can be completed on time.
Note: BAS due dates are extended for tax agent prepared and lodged statements.
Superannuation Contributions deadlines – 18 June 2021
- Super Contribution payments need to be made by 30 June 2021 in order to claim a tax deduction in the 2020/21 financial year. The payment has to be received and cleared by the super fund by 30 June 2021. Payments that aren’t received by this deadline won’t be tax deductible in the 2020/21 financial year.
- You should check with your super fund clearing house the deadline for when payments need to be submitted to allow sufficient time for processing in the current financial year. Some have a deadline as early as 21 or 22 June.
- We suggest you allow up to 10 days for payments to be processed, therefore plan to submit any payments by Friday 18 June 2021 to ensure you receive a tax deduction in the 2020/21 financial year.
- Otherwise, the final date to make superannuation contribution payments for Q4 2021 is by 28 July 2021. These payments will be tax deductible in the 2021/22 financial year if made by 28 July.
Change to Superannuation Guarantee (SG) rate – 1 July 2021
- As legislated, the SG rate will increase from 9.5% to 10%, effective from 1 July 2021.
- In the absence of a change to the law, employers will need to consider and plan how this rate increase will be implemented and communicated with employees.
- For employees remunerated through a superannuation-inclusive package – their take home pay will likely reduce from 1 July 2021; alternatively, to ensure consistency in take-home pay, employers will need to consider implementing a pay increase. In either case, it is vital that employers communicate this now with their employees to avoid any queries or complaints arising.
- For employees who receive SG contributions on top of their cash income – employers will need to factor the SG rate increase in the budgeting for upcoming employee benefits.
- Payroll Systems update – we recommend employers clarify with their payroll software provider prior to 1 July 2021 how the change will be implemented in the payroll system. Providers like xero, MYOB and others may release an update so that SG calculations are processed using the higher rate from 1 July.
End-of-year finalisation through Single Touch Payroll (STP) – 14 July 2021
- The due date for the finalisation declaration to be submitted is generally by 14 July 2021. There are other relevant due dates for STP finalisation reporting if you have ‘closely held’ employees and if you are classed as a small employer (19 or fewer employees), or have 20 or more employees. Please get in touch with us if you would like to clarify your finalisation declaration due date.
Please contact our team if you are unsure of your end of financial year obligations, or require any assistance.