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Key Super Changes 2022

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Recently legalisation has been passed that aims to make it easier for senior Australian citizens to contribute to their superannuation.  

Head of Superannuation at TSA, Natasha Panagis said that this is welcome news for many older Australians wanting to top up their superannuation savings for retirement. 

The legislation will allow individuals aged 67 to 74 to use the three year bring-forward rules to make a non-concessional contribution to superannuation in the same way someone under the age of 67 can.  

The eligibility age for downsizer contributions has also been reduced from 65 to 60 from 1 July 2022. “The downsizer contribution rules have been a popular strategy for individuals who are 65 or over and this change will allow more people to downsize and contribute their sale proceeds to their superannuation earlier”. 

New legislation has also removed the $450 per month minimum superannuation guarantee (SG) from 1 July 2022. This change will mean many young and/or lower income and part time works will start receiving SG contributions from their employer, regardless of how much they earn per month.  

For more information about these measures, click here.  

Tax Deductibility of RAT’s

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In a recent address to the Australian Industry Group (7th February 2022), Treasurer Josh Frydenberg confirmed the federal government would look to ensure COVID-19 Rapid Antigen Tests (RAT’s) are tax-deductible.  

“Today, I’m announcing that we will ensure that COVID19 testing expenses are tax deductible for testing taken to attend a place of work, giving businesses and individuals more clarity and assurance”, the Treasurer said.  

Australians will now be able to claim a tax deduction on RAT’s that they buy as part of their work. 

“We will also ensure that fringe benefits tax (FBT) will not be incurred by employers where RATs are provided to employees for this purpose.” 

This means that Employers will also gain an exemption from fringe benefits tax for the kits as well as other coronavirus tests under draft laws to be put to Parliament within days to cut the cost of checking that workplaces are safe. 

Whilst employers have previously assumed that RAT’s have been tax-deductible, the treasurer’s statement has confirmed this as well as the exemption of fringe benefits tax.  

These updates will apply to this financial year. A small business would reduce its fringe benefits tax bill by about $20 every time a dual pack of RAT’s are bought for $20 and provided to employees, according to government estimates.  

For further detail, read more on the treasurer’s conversation here.  

 

You may also like: 

Rewarding Staff for Covid-19 Vaccine  

New Stapled Superannuation Fund Rules 

Beyond Blue – New Access to Small Business Owners  

Beyond Blue – New Access for Small Business Owners

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NewAccess is a free and confidential mental health coaching program for small business owners. This program was developed by Beyond Blue to give small business owners the support they need.  

The program uses Low-intensity Cognitive Behavioural Therapy that encourages participants to recognise the way they think, act and feel and break unhelpful thoughts.  

The program goes for 6 sessions, coaches with small business backgrounds will work with you to overcome difficult issues, providing you with practical skills to manage stress and get you back to feeling like yourself. 

Why try NewAccess?

  • It is a free and confidential mental health program, developed by Beyond Blue. 
  • It is designed to support small business owners like you, manage life pressures.
  • You will be working with a coach who will help you through tailored programs.  
  • Structured six session programs 
  • No doctor or medical certificate required 
  • It’s available via phone, video call from Monday to Friday 8am until 8pm.  

What to expect 

In your initial assessment you can expect: 

  1. Talk through your challenges 
  1. Develop a problem statement  
  1. Create a plan based on your needs 

In the remaining 5 sessions with your NewAccess Small Business Owners Coach you can expect to: 

  1. Walk through your plan  
  1. Learn practical skills 
  1. Review your progress 

About the Coaches  

All coaches of the NewAceess for small business owners’ program have a background in small businesses, giving them a relevant understanding of challenges small business owners may face.  

Coaches are trained by the CBT institute to help develop and guide participants through their tailored program.  

Coaches undertake twelve months of training, starting with a six-week intensive that moves to practical learning. 

 

You can register for the program here.

If you wish to find out more information on how the program might help you, click here. 

 

Rewarding Staff for Covid-19 Vaccine

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It is important to understand your tax and super obligations as an employer, if you have provided rewards to employees for getting the COVID-19 vaccine.  

 

Examples of incentives and rewards include: 

  • Cash payment  
  • Paid leave  
  • Transport to and from the vaccinations
  • Vouchers and gift cards  

 

If you have provided employees with cash payment, you must: 

  • Withhold tax from the payment amount under pay as you go withholding 
  • Include the payment in your employee’s salary/ wages 
  • Include the amount in your employee’s ordinary time earnings (This is to help determine super contributions by employer) 

 

If you have provided paid leave, it will be treated like any other if the leave is granted to:  

  • Get a vaccination 
  • Recover from side effects  

The payments received while on leave are treated as salary/ wages.  

 

Non-cash benefits (vouchers or gift cards) may be reportable fringe benefits. These benefits will need to be included in your tax return. These may be used for: 

  • Determining your eligibility for certain government benefits and concessions, such as certain family assistance payments and tax offsets 
  • Determining your liabilities, such as Medicare levy

 

For any further information visit the Australian Taxation Offices website here.  

You may also like some of our other blogs. 

Notice of Intention (NOI) Due Dates  

New Stapled Superannuation Fund  

How to improve wellbeing in the workplace 

 

Notice of Intention (NOI) Due Dates

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The AAT has ruled that a taxpayer was not eligible to claim tax deduction for personal superannuation contributions for 2018/19 as a result of his failure to submit an eligible notice of intent (NOI) claim within the required time limits, as required by section 290-170(1) of the ITAA 1997. 

This serves as an important reminder that individuals must provide a valid NOI to their relevant superannuation fund within the required times frames in order to prevent missing out on tax deduction.  

NOI Conditions  

Claiming a tax deduction on superannuation contributions is not as easy as you think. In order to be eligible to claim tax deductions, we have specified the important conditions which must be met. These include:  

  • The individual must be eligible to contribute to superannuation. For more information click here 
  • Eligible contributions must be received by the individual’s superannuation fund in the same financial year it is intended to be claimed.  
  • A valid ‘notice of intent’ (NOI) must be sent to trustee to claim form (Section 290-170 form) 
  • Any NOI must be received by the trustee in writing before the end of the financial year that follows the financial year in which the contribution was made.  
  • The trustee must formally acknowledge that the contributions are eligible to be claimed.  

What can make a NOI invalid? 

A notice which includes all or part of an amount that is covered by a previous notice will be considered invalid.  

It may also be considered invalid when the individual submits a notice that: 

  • The individual has split contribution with their spouse. 
  • The trustee no longer holds the contribution. 
  • They were not the member of the superannuation fund.  

How can you apply? 

There are three types of forms that can be used to apply for a valid NOI.  

An approved form is one of the following.  

  1. The Notice of intent to claim or vary a deduction for personal super contributions (NAT 71121-06.2012) paper form.  

You can download this form here.

  1. A ‘branded’ paper form provided by your superannuation fund, which specifies all the information contained in NAT 71121. 
  1. A letter stating that you wish to claim a tax deduction for your personal superannuation contributions containing the following information: 
  • First name 
  • Family name  
  • Date of birth 
  • Fund name  
  • Fund ember account number  
  • The financial year in which the contributions were made  
  • The amount covered by your notice  
  • The amount you intend to claim as a tax deduction 
  • A declaration that you are lodging the notice by the due date 
  • A statement that the information contained in your letter is true and correct
  • The date  

If you have any further questions don’t be afraid to contact us! Give us a call or book a consultation. 

You can also check out some of our other blogs: 

Director ID Implementation 

ATO Debts Worrying you? 

How small businesses can build better credibility online 

 

Filed Under: Tax

New Stapled Superannuation Fund Rules

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New stapled superannuation fund rules have been implemented from the 1st November 2020. Superannuation stapling is a new measure which was introduced to reform the superannuation system announced by the federal budget 2020/21. 

The imposed measures mean that an individual/ employees superannuation account is stapled to them when they change jobs.  This removes the need to create new superannuation accounts each time a person changes their employment.  

It is important to consider that the new rules require employers to use the “stapled super fund” details for new employees who do not choose a fund. These rules will only apply to new employees who commence after 1st November 2021.  

Typically, an employer must provide an employee with a superannuation standard choice form within 28 days of commencing work. Now, if a new employee does not choose a fund, the employer will be able to check if the employee has an existing stapled fund. As an employer you will be able to do this by logging into ATO online services an accessing the ’stapled superfund request service’.  

If the employee has a stapled fund, the employer will be required to contribute to that specific stapled fund. If an employer contributes funds into their default fund and not the employees stapled fund, they may be subject to the choice shortfall penalty.  

There is no need to request stapled super fund details from the ATO for any existing employees.  

Further information on employer obligations with regards to stapled super funds can be found here on the ATO’s website.  

For other important updates for small businesses, you can check out some of our other articles: 

 

Director ID Implementation

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As a part of the recently imposed director ID requirements, company directors are expected to verify their identity by applying for a 15-digit identification number.

This has been implemented by the Australian Business Registry Services (ABRS) to prevent the use of false or fraudulent director identities.

Why do you need a director ID?

Stakeholders are entitled to know the name and certain details of the directors of a company.

It is required by law that directors verify their identity with the Australian government before receiving a director ID. This helps to:

  • Identify and eliminate director involvement in illegal activity.
  • Prevent the use of false or fraudulent director identities.
  • Make it easier to trace directors’ relationships with company’s overtime.

 

How director ID works?

A director ID is a 15-digit identification number given to a director who has verified their identity with the ABRS.

Directors need to apply for their own director ID. It is free to apply.

Directors will only need to apply for one ID. This won’t change even if they change companies, change their name or stop being a director.

 

Who needs to apply for a director ID?

You will require a director ID if you are an eligible officer of a registered Australian body or a company under the Corporations Act 2001 (Corporations Act).

An eligible officer can be classified as a director or someone who conducts a similar role.

If you plan to become a director, you can apply before your appointment.

To be a director under the Corporations Act you must be at least 18 years old.

 

How to apply?

The easiest way to apply for a director ID is through the myGovID app.

Step 1 – Set up myGovID

It is required that you have a myGov ID with a standard or strong identity strength.

If you don’t have a myGovID, download the app here.

Step 2 – Submit documents

You will need information the ATO knows about you in order to apply for your ID. This can include:

  • Tax file number
  • Residential address
  • Bank account details
  • Dividend statement
  • Super account details

Step 3 – Complete application

Once you have completed the first two steps you can login and apply for your director ID.

The application process should not take any more than five minutes.

ATO Debts Worrying You?

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Debts with the ATO can be daunting and something that many of us prefer not to think about.  We also know that no matter how hard we try to avoid thinking about these debts they never go away.   

Believe it or not, the ATO are extremely supportive of small to medium sized businesses.  They are such a crucial part of our community that assisting them is a priority.  If the debt has come about due to a genuine mistake or through cash flow difficulties or the like, the ATO can assist by setting up Payment Plans in order to help reduce and eliminate the debt.   

When entering a payment plan, the first requirement is that all returns and activity statements are lodged up to the current date.  The payment plan will cover the outstanding amount payable at the time the plan was initiated.  The repayment amount is suggested by you, the business owner, and should be a reasonable amount which fits within your business’s budget at the time.   

Going forward, you should note, the payment plan will not cover any future activity statements or returns.  The new statements or returns will be expected to be paid on or before the due date.   

Whilst the unfavourable cost of business, taxes, will never go away – it is reassuring to know that when we become a little stuck for cash flow, there are options to carry us through.  It is crucial to stay on top of our lodgements though – always keep your activity statements and tax returns lodged, up to date! 

How Small Businesses can better build credibility online

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Building credibility is important for small businesses to build trust and encourage more customers to buy your product/service. Check out these five killer tactics to set yourself apart and establish your business as trustworthy.  

1. Show Your Achievements  

Showing your wins is super important to establish your credibility. You should recognise and celebrate your achievements, from helping clients achieve goals to winning an award.   

Post these achievements on social media, put in in an email blast, include in on your website. If you have a trophy or plaque, showcase that in your office/store.   

When you tell everyone that your business achieved something, they are likely to think positively about your business. It also encourages potential customers to make a buying decision as well.   

2. Publish detailed case studies  

A super easy way to build credibility is to publish case studies of some clients that you have worked with.   

A detailed case study will be effective to convince readers that you are skilled in what you do and have knowledge in the related industry. This will help boost your business’ credibility.  

You should go into details of what you have done for the client. Outline the problem, how you solved it and the achievements. Photos and videos are great to demonstrate this as well.  

And to let everyone read it, make sure you share it on social media and email campaigns. The case study section should be easily accessible from the home page of your website as well.  

3. Highlight your uniqueness  

What do you offer than stands out from your competitors? What sets you different? What is one thing that your customers need but no one offers it yet?  

If you highlight your uniqueness and make your business stand out, your audience will be likely to choose you rather than your competitors.   

You should also convince your customers why they should choose you; this can be done effectively with the use of case studies highlighted in (2).  

4. Share your knowledge  

When you share your knowledge on platforms such as social media, website and email campaigns, you will convince your audience that you have solid knowledge in the industry and is a thought leader.   

Give as much as you possibly can, whenever you can – within reason and within your limit of what is comfortable for you.   

You can simply share it on social platforms, or build a landing page on your website that provides an ebook or video series to customers who sign up to your newsletter. This way, you will get some leads and build credibility at the same time.  

5. Be a featured guest  

When you become a featured guest on podcasts, summits, interviews, and other websites as a guest poster, you are building credibility for yourself and business.   

Why? Because it shows that the host respect you, your business and what you have to say. It also helps reach more people and build brand awareness as well.  

What are some ways that you use to build credibility? Let us know in the comment below!  

NEXT STEPS:  

If you need help, don’t hesitate to contact us! Give us a call or book a consultation on 07 3367 0852.

You can also check out some of our articles:

What the 2020 Federal Budget means for you

How to improve wellbeing in the workplace 

Tips to advertise your small business for free    

 

Tips to outsource work for small businesses

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As a small business owner, you already have so much work. Trying to do everything on your own can be overwhelming. It also prevents you from spending your precious time doing more valuable work that can better grow your business.  

To solve this problem, you can consider outsourcing, or giving your work to someone else outside of your main business. Outsourcing can bring many benefits to your business: cut costs, increase efficiency, reduce risks, speed up processes, etc. Read on for some tips to outsource work while keeping quality work.  

First, understand why you want to outsource work  

Why do you want to outsource work? To save money, add value for clients, gain expertise, help your business grow or simply convenience?  

Having a clear motivation and a goal is helpful to keep track of the quality and measure success.  

Second, identify tasks you’re not good at  

If you spend too much time doing something that you do not excel at, finding an expert to do it would save you a lot of time.   

Additionally, an expert would do the job well, so they will likely bring positive results. In other words, you don’t have to do it or allocate it to an employee and worrying about messing up.  

You will also be able to do the tasks with an economy of scale. For example, if you need help with building a website, you can hire a web agency to help design, build and optimise the website. This will be much more cost-efficient than hiring a new full-time employee or a team on a part-time basis that have all the skills you need to build a website.  

Third, choose the right service provider  

Whether you are looking for someone to complete one job or for a long period, you should handle the hiring process the same way you do for a permanent employee.  

To ensure you get a good quality of work, look for companies or contractors that are highly rated. You should look at their previous experience and achievements, work portfolio/samples, case studies and ratings.   

You should require a paid test project from at least three people/companies. It can be expensive to pay people just for a test, but you will be able to know if they can handle your project before trusting them with real, important work.  

Finally, interview them. If you can, do a face-to-face meeting with them, or conduct a video chat if you can’t. This will help you get to know them individually, make sure you get along and help with a better working relationship.  

Communicate, communicate, communicate  

Now that you’ve chosen the right contractor, you will need to make sure they are aligned with your goals. Communicating regularly is super important to make sure that the contractor is on the right track.   

When the contractor starts the job, you should communicate your expectations and the steps included in the job.   

You should also ask them to update you frequently about the work process. If they don’t do this, follow up.  

Providing detailed feedback would also be effective to ensure that the work is going in the right direction.  

What about data security?  

You will have to give the contractor access to the data that they need. This means that they may need to access to your IT system and confidential data.   

To prevent data theft, you should put necessary security measures and review their compliance certificates in handling client data if they have any.   

You should only provide the contractor with the absolute minimum data necessary for the provider to do the work.  

Conclusion  

Outsourcing work is a good solution to help you get more done in less time. If you prepare well, do research and use the right techniques, outsourcing work will be beneficial for you and your company.  

NEXT STEPS:  

If you need help, don’t hesitate to contact us! Give us a call or book a consultation on 07 3367 0852.   

You can also check out some of our articles:         

What the 2020 Federal Budget means for you

How to improve wellbeing in the workplace 

Xero Document Packs are here for easy, quick and secure e-signing  

Tips to advertise your small business for free