Providing accounting and financial support for the small business sector
The small business sector is the backbone of the modern economy. With employment a key economic driver, SMEs fuel jobs at the grass-roots level, fostering entrepreneurship and leveraging transformative business agility. Indigenous businesses fall overwhelmingly in this sector (defined by the Australian Government as employing up to 20 staff(1)). It’s important that business owners understand what the latest government initiatives may mean for their business.
Collective Works is a Supply Nation Certified Supplier that delivers boutique accounting, bookkeeping and business advisory services. One of First Australians Capital’s partners, Collective Works is an active member of our eco-system of businesses, providing wrap-around support and services to the Indigenous businesses, entrepreneurs and professionals in our community.
With so many changes to the small business sector in the last year, Collective Works shares a handy summary of some of the key Government initiatives that business owners should understand:
- An extension has been granted to the JobKeeper scheme:
- From 28 September 2020 to 3 January 2021 – $1,200 per fortnight for employees who work more than 160 hours per month, or $750 for those who work fewer hours
- From 4 January 2021 to 28 March 2021 – $1,000 per fortnight for employees who work more than 160 hours per month, or $650 for those who work fewer hours
- Applicable businesses must be able to prove a decline in turnover for both the September 2020 and the December 2020 quarters compared with last year
- If your business does not meet the criteria above, there are alternate tests that can also be considered. Find out more on the ATO website
JobMaker Hiring Credit:
- JobMaker provides an incentive to hire younger job seekers – defined as those aged between 16 and 35 years old, who are in receipt of income support payments.
- This is applicable to any new jobs created in the 12 months from 7 October 2020
- A JobMaker Hiring Credit can be claimed quarterly, and the claims process will start in February 2021
- The JobMaker Hiring Credit will be $200 per week for each eligible employee aged 16 to 29 years, and $100 per week for each eligible employee aged 30 to 35 years
- Announced as part of the 2020-21 Budget, a loss carry–back scheme is soon to be introduced and legislated
- Businesses with a turnover of less than $5 billion can carry-back losses made in the 2019-20 and 2021-22 financial years to off-set prior financial years’ income tax liability in 2018-19, 2019-20 and 2020-21 which may result in a tax refund position
Instant Asset Write off:
- From 6 October 2020, businesses with a turnover of less than $5 billion will be allowed an immediate deduction of the full value of all assets purchase or installed prior to June 2022
Apprentices & Trainees:
- Wage subsidies have been extended from 1 July 2020 to 31 March 2021 for small and medium sized businesses
- Eligible employers can apply for a wage subsidy of 50% for this period, which is capped at $7,000 per quarter
We invite you to visit both Federal and State Government websites directly as well as the ATO website for full information about these initiatives as they may relate to your business.
If you need business support, whether in the form of capital or expertise, please contact us.