CDTL Newsletter – February 2022
- NSW Government Omicron support package
- 1 2022 Small Business Support Program
The NSW Government has introduced this new program to assist businesses survive the impact of Omicron. The program is only available for the month of February 2022.
Eligible businesses with a turnover of between $75,000 and $50 million that experienced a minimum decline of turnover of 40% in January 2022 and the first fortnight of February 2022 can apply for support via Service NSW.
Employing businesses will be eligible to receive 20% of their weekly payroll as a lump sum for the month of February – with a minimum payment of $750 per week and a maximum payment of $5,000 per week.
Non employing businesses will be eligible to receive $500 per week, paid as a lump sum of $2,000.
Businesses will be able to apply for this program from mid-February 2022 via their Service NSW account.
- 2 Expanded small business fees and charges rebate
The small business fees and charges rebate will be increased from $2,000 to $3,000 in late March 2022.
Eligible small business employers will be able to use the rebate against the costs of purchasing Rapid Antigen Tests for their business.
The small business fees and charges rebate can be used to pay for fees and charges such as:
- Food authority licences
- Liquor licences
- Tradesperson licences
- Event fees
- Outdoor seating fees
- Council rates
- Road user tolls for business use
Businesses that have already registered for this rebate will automatically receive the additional $1,000 top up. Newly registered businesses will receive the rebate of $3,000.
Businesses can apply for this rebate via their Service NSW account. Eligible businesses can apply for fees and charges paid from 1 March 2021 to 30 June 2022. A full list of fees and charges are on the following link.
- 3 Commercial Landlord Hardship Grant – extended to 13 March 2022
Grants of up to $3,000 per month (GST inclusive) are available for eligible landlords who have provided rental waivers to affected tenants. Rent waived must be at least half of any rental reduction provided.
- 4 Payroll tax support
Revenue NSW is offering eligible businesses payment arrangements to help with their payroll tax liabilities. This option is only available until 28 February 2022.
Customers can establish an interest free support payment arrangement for up to 12 months and will have the option to include payroll tax payable from their 20/21 annual reconciliation and any monthly liabilities for July to December 2021 return periods.
Businesses are required to have lodged their 20/21 annual reconciliation or have a payroll tax liability start date between 1 July 2021 and 31 December 2021 to be eligible.
Businesses can choose between weekly, fortnightly or monthly repayment intervals.
The payroll tax waivers announced in the 2021-22 New South Wales budget have now been enacted in Payroll Tax Amendment (Payroll Tax Waiver) Act 2021.
Payroll tax customers can have their 21/22 payroll tax annual liability reduced by 50% if:
- Total grouped Australian wages for the 2020/21 financial year are $10m or less
- Qualified for the 2021 COVID-19 Business Grant or 2021 Jobsaver Payment scheme
- Or did not qualify for either scheme, but are able to demonstrate a 30% decline in turnover
Businesses that are eligible for the 50% reduction that would like to factor this amount in the support payment arrangement will need to:
- Calculate the monthly return amount payable for each of the periods between July and December 2021;
- Divide these monthly amounts by two (to apply the 50% discount); and
- Enter those reduced monthly amounts against each period in the plan.
2. Superannuation
A number of significant superannuation changes were proposed in Parliament as a part of the Government’s plan to enhance super outcomes for Australians. Proposed start dates of these changes are 1 July 2022.
2.1 Work test and bring-forward rule changes
Currently, individuals aged between 67 and 75 either need to pass the “work test” or satisfy the work test exemption criteria if they want to make non-concessional and salary sacrifice contributions to their super. The amendments would allow individuals aged between 67 and 75 to make certain non-concessional contributions and salary sacrifice contributions without meeting the work test. Also, individuals aged under 75 could access bring-forward non-concessional contributions.
2.2 Lowered downsizer contributions age
Current downsizer contribution measures allow individuals aged 65 or over to make a contribution into super of up to $300,000 from the proceeds of selling their home. The government is seeking to reduce the lower eligibility age to 60.
2.3 Increased withdrawal limit for the First Home Super Saver Scheme (FHSSS)
The FHSSS was designed to help first home buyers save for a deposit by allowing them to make voluntary concessional and non-concessional contributions into super, and later withdraw those eligible contributions and associated earnings to purchase a home.
The scheme allows people to make voluntary contributions into super to save for their first home, with current caps on contributions being $15,000 a year, or $30,000 in total.
Under the proposed changes, voluntary contributions into super will be allowed by a post-tax contribution or through salary sacrifice, up to a maximum of $50,000 in total. Couples will be able to utilize caps up to a maximum of $100,000.
The maximum withdrawal from the FHSSS will increase from $30,000 to $50,000.
- Removing super guarantee monthly minimum threshold of $450
Under current legislation, an employer does not have to pay super guarantee for an employee who earns less than $450 in a calendar month with that employer. This threshold was originally introduced to minimise employers’ administrative burden. However, since the introduction of STP reporting, the government no longer sees a need for the threshold, which is increasingly affecting young, lower-income, part-time and female workers.
The Government will remove the $450 minimum monthly income threshold, which means that all employees, regardless of how much their monthly salary is, will be entitled to superannuation guarantee payments from their employer.
3. Individuals & Taxes
3.1 Shortcut method for working from home expenses
The ATO has extended the ‘shortcut’ method for claiming working from home deductions (at a fixed rate of 80 cents per hour) to 30 June 2022. To continue to claim deductions relating to working from home after 30 June 2022, taxpayers will need to either use the fixed rate method or the actual cost method.3.2 Resident tax rates 2021–22
The Government brought forward stage 2 of their personal income tax plan from 1 July 2022 to 1 July 2020 as part of the 20-21 Federal Budget. Tax cuts in stage 2 apply from 1 July 2021 as follows:
– upper limit of 19% personal income tax bracket raised from $37,000 to $45,000
– upper limit of the 32.5% personal income tax bracket raised from $90,000 to $120,000.
| Taxable Income | Tax on income |
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 19 cents for each $1 over $18,200 |
| $45,001 – $120,000 | $5,092 plus 32.5 cents for each $1 over $45,000 |
| $120,001 – $180,000 | $29,467 plus 37 cents for each $1 over $120,000 |
| $180,001 and over | $51,667 plus 45 cents for each $1 over $180,000 |
4. Company
4.1 Director ID
All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporations are now required to obtain a director ID.
You can apply for a director identification number (director ID) online at Australian Business Registry Services (ABRS). Timing of when you need to apply by depends on when you became a director.
- If you are appointed between 1 November 2021 and 4 April 2022, you need to apply within 28 days of your appointment. After this period, you will need to apply before being appointed as a director.
- If you were appointed on or before 31 October 2021, you have until 30 November 2022 to apply for your DIN.
Applications are made using your own myGovID app. If you haven’t already set up your myGovID, you will need to set up a Standard or Strong identity strength to access this service. You will need to apply for your DIN yourself to verify your identity. The application cannot be done by anyone else (eg your authorised tax agent or ASIC agent).
4.2 Progressive changes to the company tax rate
| Income year | Aggregated turnover threshold | Tax rate for base rate entities under the threshold | Tax rate for all other companies |
| 2017-18 | $25m | 27.5% | 30% |
| 2018-19 to 2019-20 | $50m | 27.5% | 30% |
| 2020-21 | $50m | 26% | 30% |
| 2021-22 and future years | $50m | 25% | 30% |
4.3 Temporary full expensing of depreciating assets
Temporary full expensing was introduced by the Government to support businesses and encourage new investments. Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use for a taxable purpose, between 7.30pm AEDT on 6 October 2020 and 30 June 2022.
If an asset qualifies for an immediate deduction under temporary full expensing in an income year, businesses can choose not to apply temporary full expensing and to claim deduction using other depreciation rules.
4.4 Loss carry back
Eligible corporate tax entities that previously had liabilities to pay corporate income taxes in a relevant year and have subsequently made a tax loss, can claim a refundable tax offset.
Corporate tax entities with less than $5 billion aggregated turnover in a relevant loss year (or the income year before that year), can carry back a tax loss made in 2019-2020, 2020-2021, or 2021-2022 to a prior income year’s income tax liability in 2018-2019, 2019-2020, or 2020-2021.
5. Revenue NSW audits of COVID-19 Job Saver payments and business grants
Revenue NSW has announced that it has commenced audits of the 2021 Job Saver payments, COVID-19 Business grants, Microbusiness grants and the Accommodation Support grant to assess the eligibility of businesses that have received these payments from Service NSW.
Revenue NSW will be asking the respective business to provide further documents used to support their eligibility. Upon completion of the audit, Revenue NSW will inform the business whether their findings result in an overpayment, underpayment, or no further action.
In the event of an overpayment being identified, Revenue NSW will provide another opportunity to the business to demonstrate eligibility, and explain the process to recover such overpayment if required. In situations where a business is found to have been underpaid, Revenue NSW will arrange for payments to be re-paid.
6. SMS and email scams – cryptocurrency
The ATO has received reports of cryptocurrency scam SMS and emails. Scammers are pretending to be from the ATO.
The ATO is asking taxpayers to be aware of cryptocurrency scams telling people they are suspected of cryptocurrency tax evasion and asking them to ‘connect their wallet’ and provide personal information.
The ATO has advised that if you receive any suspicious SMS or email, do not click on the link as it will take you to a fake myGov log on page, designed to steal your personal information.
Please note that the ATO will never send you an SMS or email with a link to log in to our online services. If you’re ever unsure whether it’s really the ATO, don’t reply. Please call the ATO on 1800 008 540.
7.Fringe Benefits Tax
The FBT year is soon coming to an end. We remind employers to obtain odometer readings as at 31 March 2022 for motor vehicles provided to employee, for the purposes of Car Fringe Benefits Tax obligations.
Obtaining the odometer reading is one of the annual requirements for the Operating Cost Method of calculating FBT. Employers are required to have the start odometer reading at 1 April 2021 and closing odometer reading at 31 March 2022.
FBT & COVID
An employers FBT obligations may be affected if employees have been garaging their cars at theirs homes due to impacts of COVID and working from home. Where a car has not been driver at all, or is only driven for the purposes of maintenance, then the ATO will accept that the car is not being held for the purposes of providing fringe benefits to employees. If an employee elects to use the operating cost method for calculating FBT, then the employer may not have any FBT liability for the car.
Employers can take into account the impact of COVID-19 on the business use of a car if the car is being driven during the period it is garaged at home. Employees are reminded to maintain a logbook (or have a logbook from the last 4 previous years).
8. Important lodgement due dates
| 21 February 2021 | Lodgement and payment of Monthly Activity Statement for the month ended 31 January 2022. |
| 28 February 2022 | Lodgement and payment of Quarterly Business Activity Statements and Quarterly PAYG instalment for the quarter ended 31 December 2021 |
| 16 March 2022 | Half year accounts for listed entities for the period ended 31 December 2021 |
| 31 March 2022 | Tax return for individuals and trusts whose latest return resulted in a tax liability of $20,000 or more (excluding large/medium trusts). Audit accounts for listed entities with a year-end date 31 December 2021. |
| 28 April 2022 | Superannuation Guarantee payment for the quarter ending 31 March 2022 |
| 29 April 2022 | Quarterly reports for listed entities for the quarter ending 31 March 2022 |
| 30 April 2022 | Deadline to lodge R&D activities for the year ended 30 June 2021. |
| 15 May 2022 | Tax returns for the year ended 30 June 2021 for all remaining individuals and trusts not required earlier and not eligible for the 5 June concession (including new registrations). |
| 21 May 2022 | FBT returns for year ended 31 March 2022 due for lodgement and payment. |
If you wish to discuss any of the above matters, please do not hesitate to contact our office.
Should you have any questions, please feel free to contact our office on 0402 277282 (Carl) and 0412 404128 (Tina).
Yours faithfully
CARL DUMBRELL & TINA LOH
Partners – CDTL Accountants & Advisors
CDTL Chartered Accountants
CDTL is firm specialising in Accounting, Audit, Company Secretarial and Taxation services in Sydney. The firm was founded in 2002 by Carl Dumbrell & Tina Loh.
Our clients are individual tax clients, small to medium businesses, superannuation funds, Registered Clubs and ASX Listed companies.
We welcome referrals from our clients, please feel free to forward this newsletter to family, friends or colleagues.