The full company tax rate is 30% and the lower company tax rate is 27.5%. This information shows when to apply the lower rate and how to work out franking credits. Company tax rates apply to: companies corporate unit trusts public trading trusts. The full company tax rate of 30% applies to all companies that are not eligible for the lower company tax rate. Eligibility for the lower company tax rate depends on whether you are a: base rate entity from the 2017–18 to 2021–22 income years small business entity for the 2015–16 and 2016–17 income years. Base rate entity company tax rate From the 2017–18 to 2019–20 income years, companies that are base rate entities must apply the lower 27.5% company tax rate. The rate will then reduce to 26% in the 2020–21 income year and 25% in the 2021–22 income year. A base rate entity is a company that both: has an aggregated turnover less than the aggregated turnover threshold – which is $25 million for the 2017–18 income year and $50 million from the 2018–19 income year 80% or less of their assessable income is base rate entity passive income – this replaces the requirement to be carrying on a business. Base rate entity passive income is: corporate distributions and franking credits on these distributions royalties and rent interest income (some exceptions apply) gains on qualifying securities a net capital gain an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income. Small business entity company tax rate You need to be a small business entity to be eligible for the lower company tax rate in the 2015–16 and 2016–17 income years. For the 2016–17 income year, the lower company tax rate is 27.5%. This lower rate applies to small businesses that both: have an aggregated turnover less than $10 million are carrying on a business for all or part of the year. For the 2015–16 income year, the lower company tax rate was 28.5% for small business entities with an aggregated turnover less than $2 million and carrying on a business for all or part of the year. For the 2017–18 income year and onwards, you need to be a base rate entity, rather than a small business entity to be eligible for the lower tax rate. Not-for-profit companies If you are a not-for-profit company, you don't pay tax on the first $416 of your taxable income. Tax is then shaded in at a rate of 55% of the excess over $416 until the tax on your taxable income effectively equals the company tax rate. You are then taxed at the company tax rate. As the lower company tax rate is 27.5% from 2016–17 to 2019–20, the shade in limit for not-for-profit companies has been reduced to $831 if they are: base rate entities from the 2017–18 to 2019–20 income years small business entities for the 2016–17 income year. Maximum franking credits To work out the company tax rate for franking your distributions, otherwise referred to as 'corporate tax rate for imputation purposes', you need to assume your aggregated turnover, assessable income, and base rate entity passive income will be the same as the previous income year. For the 2019–20 income year, your corporate tax rate for imputation purposes is 27.5% if either: your aggregated turnover in the 2018–19 income year was less than $50 million, and 80% or less of your assessable income was base rate entity passive income the entity didn't exist in the previous income year. Otherwise, your corporate tax rate for imputation purposes is 30%. Our proactive approach ensures we build solid relationships and deliver a consistent service all year round, not just at tax time. Contact Collins Hume in Ballina or Byron Bay on 02 6686 3000, or read more at Services for Business. Source: ATO

Collins Hume fundraising for the Westpac Rescue Helicopter Service Key fundraising points It costs about $40 million a year to keep helicopters and crews on call, ready to respond About $12 million of that cost is raised through sponsorships, volunteer, support groups, events and community partnerships The remainder is funded through contracts with NSW Health and NSW Ambulance. On 22 May, Collins Hume is putting up a team to raise much-needed funds for the Westpac Rescue Helicopter Service. Every dollar raised contributes to keeping the Rescue Helicopter Service available 24/7, 365 days a year. Each of our team has a personal goal to individually raise $250 per person. Adding to that, Collins Hume has kicked in for registration fees and team uniforms, but we need more help. This year, we'll be setting out in three teams covering three courses – 12 kms, 24 kms or 36kms. We're asking for as many people as possible to choose a course and back us to finish: Sponsor our 12 km course https://events.rescuehelicopter.com.au/fundraisers/collinshume12 Sponsor our 24 km course https://events.rescuehelicopter.com.au/fundraisers/collinshume24 Sponsor our 36 km course https://events.rescuehelicopter.com.au/fundraisers/collinshume36 Current fundraising leader Chris Priester said, "I volunteer with a rescue organisation and have seen first-hand the very good work that the Rescue Helicopter pilots and crew do to support the community." "Whether it is transporting casualties who require urgent medical care or extricating people from areas that would otherwise be too dangerous to reach the Rescue Helicopter has proven to be an essential life-saving tool. "This is my fifth walk to help raise funds for this valuable service. Only last year our grandson was flown from Lismore to Gold Coast University Hospital for emergency treatment which saved his life," added Val Anderson. Collins Hume fundraising organiser Kim Roy said, "I'm really proud to be part of a team of out there individuals who are willing to get up from behind the desk and have some fun while raising money for a great cause." Every dollar we raise helps to keep the Rescue Helicopter flying 24-7 for those in need. Please support our team's fundraising efforts to keep helicopters and crews ready to respond when needed. Background The Community's Own Westpac Rescue Helicopter proudly provides a vital 24-7 aeromedical search and rescue service for the people of Northern NSW. The service is on call 24 hours per day, seven days per week. Approaching 2,000 missions each year these include: Primary – attend accident site, treat and transfer patients to hospital Secondary – transfer patients between hospitals for specialist treatment Search and rescue – help to locate missing people, rescue and return to safety The Service delivers world class care for 1.5 million people from three bases in Lismore, Belmont and Tamworth. In 2017 the Service added AgustaWestland AW139 helicopters to the fleet. These state of the art Italian-built aircraft enable the Rescue Helicopter crew to fly further and faster, saving valuable time and precious lives. Along the Pilot and Aircrew Officer, every primary response mission today leaves with a dedicated NSW Ambulance Paramedic and Local Health District Doctor and depending on the needs of each patient the team may include specialist nursing professionals. Together, the highly trained Rescue Helicopter team is working to ensure the highest standard of care is provided for every patient at the scene of their accident.

We're often asked the best way to sell a business There are two key components at play in the sale of a business; structuring the transaction and positioning the business to the market. Both elements are important and can significantly impact your result. Structuring the transaction covers things such as pricing the business, the terms and conditions attaching to the sale, key terms in the contract, and ensuring the transaction structure is as tax effective as possible. Much of the structuring is about ensuring the vendors secure the most efficient and effective outcome from the sale. It is about maximising vendor position. Positioning the business for sale is all about ensuring that you achieve a sale and that maximises your price. It covers areas such as ensuring there are no hurdles within the business that will limit its saleability, identifying the competitive position of the business within its market segment, ensuring that operating performance is as good as it can be and that the business benchmarks well in its market. Positioning also includes identifying the best time to take the business to the market, how to take it to the market, and who the most likely buyers will be. Positioning is about doing everything needed to maximise the probability of a sale occurring, whereas structuring is about getting the best outcome from a transaction once it has occurred. A lot of people make the mistake of spending most of their energy on the structuring of the transaction. It is important but it only becomes important if the sale is achieved. To do this, you need to get an objective assessment of how the business compares in its market, its competitive position, and what, if any, impediments to sale exist – all the things a buyer will look at and look for when they assess your business. Most buyers believe that we are currently in a buyer's market and will try to drive down price expectations. Whether or not you are in a buyer's market depends on your industry segment but regardless of this, you are in a competitive market. Buyers may be comparing your business with similar businesses but also opportunities in other industry segments. Securing a sale at the best possible price is about having your business positioned for sale. Preparation time is needed to achieve this so talk to us well in advance of putting your business on the market. Many business owners believe it will be easy to sell their business for the price they want. However, with many more businesses for sale and fewer buyers, smart business owners do not wait and see; they take control of their own future by checking the value of their business on a regular basis as part of their family wealth creation strategy and reduce any chance of what we call 'value gap' risk occurring. Working closely with you as your Value Improvement Business Advisers, we look at your whole business (not just the numbers). We also cross-check our assessment against the largest and most accurate valuation benchmark data to validate our calculation. Call our team in Ballina or Byron Bay on 02 6686 3000.

A recent article published in the Harvard Business Review by Bain & Co suggests that the pandemic has widened the productivity gap between top-performing companies. The article stated, "Some have remained remarkably productive during the Covid-era, capitalising on the latest technology to collaborate effectively and efficiently. Most, however, are less productive now than they were 12 months ago. The key difference between the best and the rest is how successful they were at managing the scarce time, talent, and energy of their workforces before Covid-19." Atlassian data scientists also crunched the numbers on the intensity and length of work days of software users during the pandemic. The results found that workdays were longer with a general inability to separate work and home life, and workers were working longer hours (predominantly because during lockdowns, there is no set start and end of the workday routine). Interestingly, the average length of a day for Australian workers is shorter than our international peers by up to an hour pre pandemic. Australia's average working day is around 6.8 active hours whereas the US is close to 7.2. However, working longer does not mean working more productively. Atlassian's research shows that while the length of the working day increased and the intensity of work increased earlier and later in the day, intensity during "normal" hours generally decreased. So, how do we measure productivity? Bain & Co suggests: The best companies have minimised wasted time and kept employees focused; the rest have not. Those that were able to collaborate effectively with team members and customers pre pandemic fared the best. Poor collaboration and inefficient work practices reduce productivity. The best have capitalised on changing work patterns to access difference-making talent (they acquire, develop, team, and lead scarce, difference-making talent). The best have found ways to engage and inspire their employees. Research shows an engaged employee is 45% more productive than one that is merely a satisfied worker. The productivity gap was always there. The pandemic merely brought the gap into stark contrast. Collins Hume Accountants and Business Advisers | Ballina & Byron Bay NSW | Ph 02 6686 3000

In the name of shopping locally and supporting our community, this year's prizes will be purchased from Collins Hume business clients. To join: Go to https://www.iTipFooty.com.au Click the 'REGISTER' button if you don't already have an account with iTipFooty.com.au Once you have successfully registered login and, click the JOIN COMP button Enter Comp # 103098 and Comp Password CH1234 Click join comp.....DONE! Competition details Comp Name: Collins Hume 2021 NRL Comp#: 103098 Comp Password: CH1234 Comp Type: FREE Comp Starts: 12 March 2020 Manager's Name: Tim McOmish Manager's Email: tim.mcomish@collinshume.com.au TIP CUT-OFF TIME for our comp is 5-minutes before the match each week. Prize information First prize: $300 in gift vouchers sourced by Collins Hume from local businesses Second prize: $100 in gift vouchers sourced by Collins Hume from local businesses Third prize: $50 in gift vouchers sourced by Collins Hume from local businesses Knockout Comp Winner: $100 in gift vouchers sourced by Collins Hume from local businesses Good luck! We look forward to announcing winners at the end of the season. REGISTER HERE Huge thanks to the business owners who have provided these amazing prizes for this year's competition.

Key changes We outline the implications of the draft ruling by the Australian Tax Office (ATO) in terms of how Professional Firms (Accountants / Solicitors / Engineers, etc.) allocate their profits. This is a change from what has been done in the past and will have consequences for professional firms. The ATO's risk-based compliance approach requires two qualifying 'gateways' to be passed before applying their risk assessment framework. The gateways require those with non-commercial arrangements, and those arrangements with high risk features to engage with us before applying the guidance. Where an IPP passes the gateways, they then self-assess against the risk assessment framework to determine the type of compliance attention that will be given to their arrangement. The draft PCG combines three previously separate risk assessment measures into a single methodology. This gives an overall risk rating of low, medium or high risk, including: the proportion of profit entitlement from the whole of the firm group that is returned in the hands of the IPP the total effective tax rate for income received from the firm by the IPP and associated entities the renumeration returned in the hands of the IPP as a percentage of the commercial benchmark for the services provided to the firm. On application of the three risk assessment measures, an IPP will be rated as 'low risk' where all the following apply: greater than 50% of their profit entitlement from the whole of firm group is returned in their personal income tax return the effective tax rate paid by the IPP and their associates on their profit entitlement from the firm is greater than 30% the IPP returns an amount of income in their personal income tax return which reflects at least an appropriate return for their services to the firm. Where arrangements featuring high risk features or lacking apparent commercial rationale are identified, we will treat the risk through application of integrity provisions, including Part IVA. What you need to do We encourage you to seek independent professional advice or contact Collins Hume directly to discuss your situation if you are an IPP who: does not pass the gateways provided in the draft PCG are medium or high risk on self-assessment of the risk framework. We will continue to examine arrangements that go beyond the intent of the draft guideline. The ATO's revised guidance explains how we intend to apply a risk-based compliance approach when considering the allocation of professional firm profit, or income in the assessable income of the individual professional practitioner (IPP). The release of draft Practical Compliance Guidance PCG 2021/D2 follows consultation with peak professional bodies and other affected stakeholders. The draft guidance aims to provide consistency and a level playing field across the industry.

COVID-19 lockdowns have added another layer of complexity as many work patterns and behaviours changed. Fringe benefits tax (FBT) is one of Australia's most disliked taxes because it's cumbersome and generates a lot of paperwork. A fringe benefit is a 'payment' to an employee or an associate (an associate is someone related to you such as a spouse, child or even a friend), but in a different form to salary or wages. A benefit might be as simple as hosting a work Christmas party, providing car parking, using a work vehicle, or providing the goods or services of the business at a reduced rate to what the public pay. If your business is not already registered for FBT, it's important to understand if fringe benefits have been provided. Generally, the ATO will look closely at unregistered employers and where there are mismatches in data. With the FBT year ending on 31 March, we look at the key issues and the Australian Taxation Office's (ATO) hotspots. What is exempt from FBT? Certain benefits are excluded from the FBT rules if they are provided primarily for use in the employee's employment. These include: Portable electronic devices (e.g. laptop, iPad, printers, GPS, etc). Larger businesses are limited to the purchase or reimbursement of one portable electronic device for each employee per FBT year; A handbag, briefcase or satchel to carry items you are required to use and carry for work, such as laptops, tablets, work papers or diaries. Be warned that if you are using these bags for a mix of personal and work use, then the use needs to be apportioned and will not be fully exempt from FBT. The ATO is not going to pay for your Gucci bag even if you do throw your iPad into it on occasion. Tools of trade. Also, if the item or service provided to the employee is less than $300 and is a one-off, it's generally classed as a minor benefit and exempt from fringe benefits tax. COVID-19 & FBT The ATO has changed how it will approach FBT compliance this year because of the impact of COVID-19 on work patterns and conditions. Emergency assistance such as flights and accommodation – emergency assistance to provide immediate relief to employees because the employee is at risk of being adversely affected by COVID-19 will generally not be subject to FBT. This might include: Expenses incurred relocating an employee, including paying for flights home to Australia. Expenses incurred for food and temporary accommodation if an employee cannot travel due to restrictions (domestic, interstate or intrastate). Benefits provided that allow an employee to self-isolate or quarantine. Transporting or paying for an employee's transport expenses including car hire and transport to temporary accommodation. For fly-in fly-out workers, this includes temporary accommodation and meals where they were unable to return home because of border or travel restrictions. Health care – Providing flu vaccinations to employees is generally exempt from FBT because it is work-related preventative health care. However, health care treatment is only exempt from FBT if it is provided to your employees at your workplace or adjacent to your worksite. The cost of ongoing medical costs are generally not exempt. Company cars – a company car garaged at an employee's home will generally attract FBT. However, this FBT year, many company carparks and places of business were closed. As a result, the ATO has stated that for employers using the operating cost method, if the "car has not been driven at all during the period it has been garaged at home, or has only been driven briefly for the purpose of maintaining the car, we will accept that you don't hold the car for the purpose of providing fringe benefits to your employee." But, you will need to maintain odometer readings that show the car has not been used. If the car was used, fringe benefits generally applies. However, if the car was used for business purposes then this use reduces the taxable value. If the car was only used for business, the taxable value may be reduced to zero. Logbooks – COVID-19 is likely to have impacted on driving patterns and the ATO have made some concessions where the 12 week log book period was interrupted. If you are already using the logbook method and have an existing logbook in place, you can still rely on this logbook. However, you must keep odometer records for the year to show how much the car has been driven during the year including during any lockdown period. If this is the first year you have used a logbook, you still need to keep an accurate 12 week logbook. However, if COVID-19 impacted driving patterns during that 12 weeks, then the ATO will allow you to adjust the use indicated in the logbook to account for the change in driving patterns. Not-for-profit salary packaging – NFP employers often provide salary-packaged meal entertainment to employees to take advantage of the exempt or rebatable cap. For the FBT year ending 31 March 2021, the ATO has stated that they will not look into these arrangements where meals are provided by a supplier that was authorised as a meal entertainment provider as at 1 March 2020. Cancellation fees – non-refundable costs for cancelled events are exempt from FBT unless the employee paid for the event themselves and was reimbursed by you. That is, if the employer paid for the event then the cancellation fee is the employer's obligation as no benefit was provided. If the employee paid for the event, the cancellation fee is the employee's obligation that has been reimbursed. It really depends on who the arrangement was between. ATO 'red flags' One of the easiest ways for the ATO to pick up on problem areas is where there are mismatches in the information provided to the ATO. Common problem areas include: Entertainment deductions with no corresponding fringe benefit – A simple way for the ATO to pick up on a problem is when an employer claims a deduction for expensive entertainment expenses – meals out, tickets to cricket matches, etc., – but there is not a corresponding recognition of the fringe benefit. Entertainment expenses are generally not deductible and no GST credits can be claimed unless the expenses are subject to FBT. If your business uses the 'actual' method for FBT purposes and the value of the benefits provided is less than $300 then there might not be any FBT implications. This is because benefits provided to a client are not subject to FBT and minor benefits provided to employees (i.e., value of less than $300) on an infrequent and irregular basis are generally exempt from FBT. However, no deductions should be claimed for the entertainment and no GST credits would normally be available either. If the business uses the 50/50 method, then 50% of the meal entertainment expenses would be subject to FBT (the minor benefits exemption would not apply). As a result, 50% of the expenses would be deductible and the company would be able to claim 50% of the GST credits. Employee contributions reduce fringe benefits tax but not recognised in income tax return – Where employee contributions reduce the amount of fringe benefits tax payable (for example where an employee makes a contribution relating to a car fringe benefit), a corresponding amount needs to be recognised in the income tax return of the employer.

A sole trader who was able to backdate his ABN has won access to JobKeeper payments in a recent case before the Administrative Appeals Tribunal (AAT). To be eligible to access JobKeeper as a business participant (for example, as a sole trader), the rules require a business to have an active ABN on 12 March 2020. The rules also provide the Tax Commissioner with the discretion to allow further time for an entity to register for an ABN. In this case, a sole trader, Mr Apted was an expert property valuer who had been in business for himself in various structures since 2012. In 2014, he set up as a sole trader and registered for an ABN and GST. In 2018, he decided to retire, cancelling his GST registration and later relinquishing his ABN with effect from 4 June 2018 - although he was aware that he had the flexibility to start up again if the need arose or his expertise was required. In June 2019, former colleagues encouraged him to accept new work and he was contacted soon after by a potential client who engaged him to provide his valuation services in September 2019. Mr Apted made it known that he was available for referral work. Mr Apted stated that he was unaware that he needed to reactivate his ABN as he believed that an ABN was only required if he intended to register for GST. Given he did not expect to earn over the GST threshold of $75,000, he did not see this as necessary. His clients also did not withhold tax from payments to him as required when payments are made to a supplier without a valid ABN. On 31 March 2020, Mr Apted applied and had his ABN reinstated. Then on 20 April 2020, he applied for JobKeeper but this was denied as he did not have a valid ABN on 12 March 2020. In June, Mr Apted phoned the Registrar of the Australian Business Register seeking to have the date of effect of his ABN corrected to align with his resumption of trade. The Registrar subsequently adjusted the date of effect of the ABN to 1 July 2019. With this adjustment, Mr Apted believed he had an active ABN at 12 March 2020 required by the JobKeeper integrity rules. The Tax Commissioner however did not accept the backdated ABN as an "active" ABN and declined to use his discretion to allow Mr Apted access to JobKeeper. However, the Administrative Appeals Tribunal (AAT) found: "We are satisfied the applicant is the kind of person who was intended to benefit from the Jobkeeper scheme. While his business was small and his income irregular, he still satisfies all of the eligibility criteria … There is nothing to be achieved by denying him access to the payments in order to make a point about the desirability of obtaining an ABN." The AAT set aside the Commissioner's decision in favour of Mr Apted directing the ATO to enrol Mr Apted in JobKeeper for the relevant period. A statement from Holding Redlich, the legal firm representing Mr Apted says, "Small businesses that have been refused JobKeeper might now qualify for JobKeeper – and be entitled to make claims back until the beginning of the scheme in April 2020." The ATO has lodged an appeal with the Federal Court of Australia in the Apted case and has stated that it will not pre-emptively review decisions of eligibility until the outcome of the appeal has been handed down. Giving further hope to those who had previously been denied access to JobKeeper under a strict interpretation of the rules is the recent report from the Inspector General of Taxation (IGT). JobKeeper and the Cashflow boost require that the business had some business income in the 2018-19 income year and notified the ATO of this by 12 March 2020 or made some supplies connected with Australia in a tax period that started on or after 1 July 2018 and ended before 12 March 2020 and notified the ATO of the supplies (e.g., on an activity statement) by 12 March 2020. In her report, the IGT has made it clear that, "…for the purposes of the [JobKeeper] and [Boosting Cash Flow] support measures, a taxable supply can be made where an entity makes or acquires a financial interest, for example, by opening a bank account, as this constitutes the making of a financial supply. Such a supply might have been made during the commencement of the business, well before the business had made its first sale." For any business seeking redress on a JobKeeper or Cashflow boost eligibility decision, strict timeframes apply. Despite the ATO's reticence to engage on these issues until the outcome of the Federal Court is known, it is important to lodge the necessary applications or objections to ensure the window of opportunity is not missed. Take-outs An ABN backdated by the Business Registrar may meet the JobKeeper eligibility criteria Simply opening a bank account and advising the ATO of the account (for example when registering for GST) in the relevant time period (by 31 December 2019 for quarterly or 29 February 2020 for monthly taxpayers) might meet the eligibility test to make a supply in Australia – even if the business had not made any sales.

The impact of COVID-19 has been felt very differently from region to region. Fortunes vary wildly between business operators subject to ongoing lockdowns and trading impediments to those benefiting from the "new normal". For those severely impacted by COVID-19, JobKeeper might be available. The third and final phase of JobKeeper started on 4 January and runs through until 28 March 2021. To receive JobKeeper, employers need to have experienced a sufficient downturn (a 30% threshold applies to most entities) in their actual GST turnover in the December 2020 quarter compared to the same period in 2019 – although alternative tests exist. The payment rate for employers is $1,000 per fortnight per employee or business participant who worked 80 hours or more over a specific 28 day period, or $650 per fortnight per employee or business participant for those who worked less than 80 hours in the relevant period – a reduction from previous JobKeeper payment periods. Assessing eligibility, managing the decline in turnover test, calculating GST turnover for the decline in turnover test, and managing the 80 working hours requirement for the differential payment rates can all be complex. We've outlined a few of the key issues for employers in need of relief: My business did not previously qualify for JobKeeper. Can I access it now? Your business can potentially access JobKeeper for the period between 4 January 2021 and 28 March 2021 even if it didn't qualify for JobKeeper for the period between 28 September 2020 and 3 January 2021 or for the original JobKeeper scheme period that ended on 27 September 2020. The fact that you have not previously enrolled in JobKeeper or met the eligibility conditions prior to the start of the latest phase of the JobKeeper scheme should not prevent you from accessing JobKeeper from 4 January 2021. For example, if you could not pass the decline in turnover test for the September 2020 quarter this does not automatically prevent you from being able to access JobKeeper for the period between 4 January 2021 and 28 March 2021 as long as your business can pass the decline in turnover test for the December 2020 quarter. We have been in JobKeeper previously. Do my employees need to complete a new nomination form for JobKeeper from 4 January 2021? Employees should not need to provide you with a new enrolment form if they have previously provided a valid nomination to you. You should ensure that you have a copy of the original form on file and a copy of the notification that you sent to the employee confirming that their details were provided to the ATO and advising them of the payment rate that applies to them. What's included in GST Turnover for the decline in turnover test? To access JobKeeper, employers need to satisfy a decline in turnover test. The decline in turnover test for JobKeeper from 4 January 2021 compares actual GST turnover in the December 2020 quarter (October 2020, November 2020 and December 2020) to the same period in 2019 (alternative tests are available in some instances where this comparison is not appropriate). Understandably, we're receiving lots of questions about what is included in GST turnover and how it is calculated. In general, if your business is registered for GST you must use the same method that is used for GST reporting purposes. For example, if your business is registered for GST on a cash basis then a cash basis needs to be used to calculate current GST turnover for the purpose of the JobKeeper decline in turnover test for the December 2020 quarter. Your GST turnover includes proceeds from the sale of capital assets, such as property, equipment or licenses, unless the sale is input taxed. Current GST turnover includes taxable and GST-free supplies, but should exclude input taxed supplies such as residential rental income and financial supplies like dividends, interest etc. JobKeeper and ATO cash flow boost payments should be excluded from the calculation along with other payments that don't represent consideration for a supply made by the business such as certain State based grants. If your business has received payments in advance, then you will normally need to recognise these payments as part of the GST turnover calculation, even if the goods or services have not been provided to the customer yet. For example, if your business accounts for GST on a cash basis then you need to recognise the payment for GST purposes as it is received and include it in your GST turnover calculation, even if the services haven't been provided. There are some special rules where security deposits apply to defer the GST liability but these rules are reasonably limited in their application. And, if your business is part of a GST group, each entity needs to calculate its GST turnover as if it were not part of the group. That is, supplies made by another group member should not be included in GST turnover for the purposes of the decline in turnover test. When I stood down my employees, they started working for someone else to get by. Can they still receive JobKeeper? To access JobKeeper, employees need to have been either full-time, part-time or long terms casuals of your business on either 1 March 2020 or 1 July 2020. If the employment relationship remains intact (their employment has not been terminated and they haven't accessed JobKeeper from another business), then the fact that the employee is performing some work for another entity doesn't necessarily prevent ongoing access to JobKeeper with you, their original employer. Of course, the employee can only receive JobKeeper from one employer and there are a number of eligibility conditions that need to be satisfied.

You’ll never know what’s possible until you try Collins Hume Partner, Kelly Crethar, is passionate about helping business owners achieve their goals in business. Kelly is a highly qualified and experienced business services specialist with a passion for helping business owners achieve their goals. With over 20 years of experience in the field, Kelly has a wealth of knowledge in business planning, structuring, management, acquisitions, valuations, and regulatory compliance, with a special focus on professional services, hospitality and retail, building and construction, property development, health, and larger intricate structures industries. "I love working with people and helping them achieve their goals," says Kelly. "Understanding the financial side of a business is something that doesn't come easily for everyone." "I love being able to interpret the financials into information that business owners can easily grasp." Kelly joined Collins Hume in 2017 and believes it is the firm's commitment to helping the community which she admires. "We often speak to our clients about work/life balance and that is a focus here at Collins Hume too." Kelly has been the presenter of Collins Hume's popular Better Business Workshops which are designed to educate business owners. She acknowledges that it can be daunting for young people to enter into the world of accounting and business advising but says the industry has so much to offer and having a female perspective on business is so valuable. "You'll never know what's possible until you try, so go for your dreams and never give up," Kelly added. When she's not working, Kelly enjoys spending time with her family and golden retriever, Max, and can often be found at the beach or enjoying the great outdoors. She is also an avid cook and is co-opted to keep the books for her husband's business. Kelly holds a Bachelor of Business (Accounting & Business Law) from Southern Cross University and is a Certified Practising Accountant (CPA), Xero Certified Advisor, and Registered Tax Agent. She began her career in 2001 as a Trainee Accountant in public practice and worked her way up to becoming a Senior Manager before transitioning to the corporate sector, where she spent five years as a Corporate Accountant in the road transport industry. Kelly joined Collins Hume in 2017 where she helps clients navigate the complex world of business. Her areas of expertise include business advisory around growth strategies, profitability and systems implementation, as well as business regulatory compliance. Copyright 2021. Collins Hume Ballina and Byron Bay

On 1 January 2021, new laws came into effect that introduce a new, simplified debt restructuring and liquidation framework for small business. Drawing on key features of the Chapter 11 bankruptcy model in the United States, the new system aims to speed up the insolvency process, reduce costs and where possible, restructure to help the business survive. Where survival is not possible, it's hoped that the quicker insolvency process will deliver greater returns for creditors and employees. Under previous insolvency laws, the insolvency process treated all businesses the same regardless of size. The new laws step away from the 'one size fits all' model. The simplified debt restructuring and liquidation framework is available to incorporated entities with liabilities of less than $1 million (around 76% of insolvencies are businesses with less than 20 employees) with non-complex debt. The liquidation framework also requires that a company is up to date with its entitlements and tax obligations. The new laws are intended to help manage the tide of insolvencies expected now that the temporary insolvency related relief for financially distressed businesses has ended (the COVID-19 relief measures which protected directors from insolvent trading and raised the threshold for action by creditors, ended on 31 December 2020.) There is no question that the temporary measures in tandem with the stimulus measures such as JobKeeper have kept some 'zombie' businesses afloat. In November 2020, 306 businesses entered external administration compared to 748 in November 2019. In general, the number of insolvencies has dropped by around 200 to 300 each month since March 2020 compared to 2019 figures. Debt restructuring For financially distressed but viable companies, simplified debt restructuring is available. Under this process, the directors resolve that the company is insolvent, or is likely to become insolvent at some future time, and that a small business restructuring practitioner should be appointed. Once a practitioner has been appointed, the directors generally have 20 days to develop a plan that sets out an approach to repay the company's existing debts. Only the company directors can propose a debt restructuring plan to the company's creditors and the creditors have the opportunity to vote on the plan electronically or virtually (previously creditors had to be physically present or appoint a proxy). During this time, the company directors retain control of the business - which is very different to the previous laws where the administrator took control of the company during voluntary administration. To prevent the new laws being abused by phoenixing, a company is not eligible to use the debt restructuring process if a director of the company or the company itself has previously been through this process or the simplified liquidation process. The new laws are also not available where the company has already entered into an external administration process. Streamlined insolvency If a company is not viable (the company will not be able to pay its debts in full within 12 months), the directors can resolve to voluntarily wind up the company and access the streamlined insolvency process. Once the resolution has been passed, the directors have five business days to provide the appointed liquidator with a report on the company's business affairs and a declaration that the company meets the eligibility criteria to access the simplified liquidation process. If the liquidator agrees that the company qualifies for the simplified liquidation process, the creditors are advised of the process that will be adopted. The creditors can reject the approach if 25% or more by value, oppose the process. Streamlined insolvency is designed for companies with relatively simple affairs and is limited to those that have liabilities under $1 million and are up to date with their taxation obligations. It uses the existing insolvency framework but simplifies the interaction with creditors and ASIC. For example, outside of the simplified system, the liquidator may convene a creditor's meeting at any time to keep creditors up to date, find out the creditor's wishes, or to approve the liquidator's fees. The simplified system removes the obligation for a liquidator to convene these meetings with communication managed electronically. And, under the simplified systems the oversight of creditors is limited, creditors for example cannot appoint a committee of inspection to monitor the conduct of the liquidation. There are strict timings that apply to the insolvency process. If you are concerned that your business will not be able to meet its obligations, please contact Collins Hume as soon as possible and we will review the situation for you. Where assistance is required, we can refer you to a qualified insolvency or small business restructuring practitioner.

Find out if you qualify and how to apply. What is a primary producer? A primary producer is a person or incorporated body who cultivates or uses their own or someone else's land for their own benefit: for the production of fruit, grains, flowers, vegetables, tobacco or farm or agricultural produce of any description for dairy farming, poultry or other bird farming, pig farming, bee keeping, or oyster or fish culture for a nursery as a pastoralist for the rearing or grazing of horses, cattle or sheep who gather leaves from which eucalyptus or other oil is to be distilled. For example, fish farmers and plantation forest cultivators are primary producers and are eligible for registration concession. Primary producers claiming the concession for their primary producer vehicles are in most cases farmers using vehicles to cart their own primary produce to market. Companies who are in the transport/haulage business and cart other people's primary produce for hire or reward are not eligible for the concession. Primary producers are not: commercial fishers taking fish from open waters and not purposefully enclosed water for breeding timber loggers where the timber is from a natural grown forest and is not sown and grown freight and transport companies who cart other people's primary produce for hire or reward. Primary producer vehicle requirements To get a concession, the vehicle must be a motor vehicle (not used for let or hire), owned by the primary producer, incorporated body or rural co-operative. While on road and road-related areas, the vehicle must be principally used for: carting primary products that the primary producer or another primary producer has produced carting leaves which the primary producer or another primary producer has gathered and from which eucalyptus or some other oil is to be distilled carting goods of any kind for use in the primary producer's business or another primary producer's business, or in the primary producer's household or another primary producer's household purposes connected with the clearing of land that the primary producer or another primary producer proposes to use for primary production. Primary producer vehicles are not: used for let (leased) used for hire (rented) used to receive a fee or reward (including a fee or reward from another primary producer). What is the registration concession? Primary producer vehicles receive the following concessions. Light vehicles (up to 4.5 tonnes GVM) Cars and station wagons - private rate of vehicle tax. Trucks and trailers - 55% of business rate of vehicle tax and capped. Tractors - 55% of business rate of vehicle tax and capped. Heavy vehicles (over 4.5 tonnes GVM) Applicable registration charge or vehicle tax, whichever is lower. Applying for a primary producer concession To apply for a concession you must provide a Declaration of Eligibility for a Registration Concession when you: get a new NSW registration get seasonal registration transfer registration change to primary producer registration usage. You must also provide the documents listed below to support your application. This is to prove your eligibility for the concession. If you cannot provide the documents, the vehicle cannot be registered for the primary producer concession. A declaration signed by a registered tax agent or accountant, stating the applicant is a primary producer as defined by the Motor Vehicles Taxation Act 1988 And one of the following documents: A Tax Averaging Certificate or Tax Assessment Notice from the Australian Taxation Office (not more than two years old), or A letter from the Australian Taxation Office confirming the applicant is registered as a primary producer (not more than one year old). Your registration may be suspended or cancelled if you do not supply one of the documents above when requested. You must also notify NSW Roads and Maritime within 14 days if you no longer qualify for a primary producer concession. You should visit a service centre to do this. Farm vehicles that don't need registration Some vehicles used for the purpose of primary production do not have to be registered. These include vehicles solely used to cross a road or road-related area which divides land used for the purpose of primary production. The following types of agricultural implements don't need registration: implements towed by a vehicle trailers towed by an agricultural machine irrigating equipment augers conveyors harvester fronts and harvest bins. Examples of agricultural machinery are tractors and harvesters. Source: Transport for NSW