- Rebecca Roach
August E-News
A message from our Director:
Welcome to our August e-news.
A new financial year is underway and we've had some winter rain, which is great to see for many of our farming clients.
It is still an unusual time for business, with trading restrictions and regulations constantly changing due to COVID-19. While things seem to be tracking well in the North West for now, it is important clients are prepared for any sudden changes to ensure their business could withstand changes to trade or another lock down.
Following the announcement of a full lock down in Melbourne, the Federal Government has announced more changes to the JobKeeper wage subsidy. Dubbed JobKeeper 2.0 there has been significant changes made to business eligibility, payments rates and employee eligibility. We've compiled the Roach Morgan-Jones Guide to JobKeeper 2.0, as well as a list of Frequently Asked Questions to break down these changes for clients.
I'd like to remind clients that time is running out to apply for the Superannuation Guarantee Amnesty. The amnesty allows employers to disclose and pay any previously unpaid super that they owe their employees. If you haven't done so already, you must apply by 7 September 2020.
I'm also very excited to announce that Roach Morgan-Jones now offers business benchmarking. Benchmarking allows us to measure the performance of your business or a business you're looking to purchase against industry averages and similar businesses. Our in-depth reports break down each aspect of your business to give you an understanding of what areas need improvement. If you'd like more information about Business Benchmarking, give the office a call on (02) 6766 3777 or you can see an example of our reports on our website.
We're also encouraging clients, particularly those still recovering from drought and COVID-19, to use the early part of the new financial year to plan their business strategy for the next 12-months. Having a plan in place will help you achieve your business goals in the most efficient and cost-effective way.
There are several key areas that business owners should be reviewing at this time of year and our range of tailored business advisory packages can help business owners get on top of their numbers. We also have a business package dedicated to the recovery phase of COVID-19 and drought. Please give us a call at the office on (02) 6766 3777 for more information.
And remember our Narrabri office is now being serviced fortnightly by myself and Senior Accountant, Andrew Shiels. So if you need to make an appointment, please get in touch.
Yours in business,
Rebecca Roach
Director
On 21 July the Federal Government announced an extension to the JobKeeper Wage Subsidy until March 2021. This support will be targeted to businesses and not-for-profits that continue to be significantly impacted by the Coronavirus. There will be a number of changes made regarding payment rates and eligibility and these will come into effect after 28 September, 2020. So what does this mean for you and your business? BUSINESS ELIGIBILITY From 28 September 2020, businesses will have to meet a further decline in turnover test for each of the two periods of extension. Business owners will need to prove a 30 per cent reduction in their acutal GST turnover for the September and December quarters, relative to a comparable period (2019). PAYMENT RATES The JobKeeper payment rate will be reduced and paid at two rates.
For the first extension period eligible employees who work more than 20 hours per week will receive $1,200 per fortnight, while those who work less than 20 hours per week will receive $750 per fortnight.
For the second extension period eligible employees who work more than 20 hours per week will receive $1,000 per fortnight, while those who work less than 20 hours per week will receive $650 per fortnight.
EMPLOYEE ELIGIBILITY
If any eligible business currently registered for JobKeeper has employed a full or part time employee between 1 March and 1 July, or had a casual employee reach 12 months service during this period, you can now receive the subsidy for this employee from the fortnight commencing 3 August, 2020.
We've compiled the Roach Morgan-Jones Guide to JobKeeper 2.0, as well as the JobKeeper 2.0 Frequently Asked Questions which breaks down the new announcements and simplifies the changes around BUSINESS ELIGIBILITY, PAYMENT RATES and EMPLOYEE ELIGIBILITY.
If you need any assistance regarding JobKeeper 2.0 please give the office a call on (02) 6766 3777 or you can visit our website.
If you wish to participate in the Superannuation Guarantee Amnesty, the law requires business owners to apply by September 7, 2020.
The amnesty allows employers to disclose and pay previously unpaid super guarantee charge, including nominal interest, that they owe their employees, for quarters starting from 1 July 1992 to 31 March 2018.
Employers who have already disclosed unpaid SGC to the ATO between 24 May 2018 and 6 March 2020 don’t need to apply or lodge again. However, employers who come forward from 6 March 2020 need toapply for the amnesty by 7 September 2020.
The Australian Taxation Office has stated if a business owner has applied for the amnesty, but is now impacted by COVID-19 a payment plan can be arranged.
You can find more information about the amnesty here.
Wondering how your business stacks up against the industry? Roach Morgan-Jones now offers Business Benchmarking.
Benchmarking allows us to measure the performance of your business or a business you're looking to acquire against industry averages across the country and businesses of similar size and location. It allows you to understand how each aspect of your business is performing and what areas need improvement.
The benefits of our benchmarking reports include:
Provides an in-depth industry analysis
Details key benchmark comparison (eg income, overheads, net profit, etc)
Offers strategies for business growth
We can model potential profit outcomes based on changes to operations, income, expenses or implementing a strategic plan
Yearly figures for a business can also be benchmarked against their own historical performance, which help you understand changes in business operations
We can prepare an estimated business valuation, which can be used as a guide if you are purchasing or selling a business.
For more information or to have a look at one of our reports, head to our website or give the office a call (02) 6766 3777.
It's the beginning of a new financial year, so that means NOW is a great time to plan your business strategy for the next 12-months.
If you want to achieve your business goals it is important you have a solid business plan in place. Where do you want to be in 2 years’ time? 5 years? 10 years? Have you got an exit strategy? If you don’t know where you’re going, how are you going to get there? And more importantly, how can you measure your progressive performance over the period? Important areas business owners should be reviewing now:
budget and cashflow
profit analysis
industry benchmarks
operating costs
government assistance and grants
Roach Morgan-Jones has a wealth of experience in helping clients plan, set and achieve their business goals. We have a range of tailored business packages, that can assist you through every step of your business journey. We currently have our Recovery Package available to assist small business owners recovering from drought and COVID-19. It's designed to help business owners understand their current position and how they're trading during the recovery phase.
If you’d like more information on our packages, please get in touch at the office (02) 6766 3777 or visit our website.
If your small business or not-for-profit organisation has experienced a decline in turnover as a result of COVID-19, you may be eligible for a small business recovery grant of between $500 and $3000.
This grant helps small businesses meet the costs of safely reopening or up-scaling operations. These expenses include, but are not limited to:
fit-out changes and temporary physical changes (for example, plastic barriers at checkouts)
staff training and counselling
business advice and continuity planning
cleaning products and additional cleaning services
additional equipment necessary to comply with social distancing or other public health measures
marketing, communications and advertising
digital solutions (for example, e-commerce or business websites).
This grant can only be used for purchases of eligible expenses made from 1 July 2020, and only where no other government support is available.
Applications close 31 August, 2020.
You can find more information about the grant here.
Business owners, if you pay contractors you may need to lodge a taxable payments annual report (TPAR). This report is due by 28 August if your business provides and pays contractors for these services:
building and construction
cleaning
courier, delivery or road freight
information technology
security, investigation or surveillance
You can find more information about on lodging online here.
There was no increase to fuel tax credit rates on 3 August. You can continue to use the current rates to calculate your claim on your business activity statement (BAS).
When working out your fuel tax credits:
Check how your fuel is used.
Check you’re using the right rate.
You can find more information here.
Please call the office on (02) 6766 3777
to make an appointment!
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