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Viewing 15 posts - 136 through 150 (of 201 total)
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  • #1222749
    Paul.G
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    Hi All,
    In terms of accounting for the NANE income boost (see URL) that will be delivered through the activity statements commencing in April. Should these boosts simply be taken up to other income in the P&L and offset in the tax return of the business at 30.06.2020. Forgive me for asking, but I’ve never had to account for anything like this in the past. Thanks, P

    https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/

    #1222750
    James Millar
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    Henri K, post: 269285, member: 115510 wrote:
    The package 3 is out, and I’m not in the same boat.

    Existing companies get $1500 per existing employee per fortnight, but new employers or new employees don’t.

    I’m not going to pay for the boat that I wasn’t allowed into.

    So when did you hire the new employees for your business ?

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1222751
    James Millar
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    Paul.G, post: 269286, member: 55858 wrote:
    Hi All,
    In terms of accounting for the NANE income boost (see URL) that will be delivered through the activity statements commencing in April. Should these boosts simply be taken up to other income in the P&L and offset in the tax return of the business at 30.06.2020. Forgive me for asking, but I’ve never had to account for anything like this in the past. Thanks, P

    https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/

    you might want to speak with an accountant to understand the longer term tax implications – namely if you have a company because tax free to the company does not mean tax free to the shareholder when you take it out. It would be an unfranked dividend

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1222752
    Paul.G
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    JamesMillar, post: 269288, member: 5318 wrote:
    you might want to speak with an accountant to understand the longer term tax implications – namely if you have a company because tax free to the company does not mean tax free to the shareholder when you take it out. It would be an unfranked dividend

    it’s OK. I found it in the end, you would account for it as ‘other income’ NANE in your accounting software so it would appear in your financial statements. You would then include it as a reconciling item in the entity’s return.

    For the benefit of other members here it is.

    Q Other income not included in assessable income

    Write at Q income-related adjustments that have to be subtracted from T Total profit or loss item 6 to reconcile with T Taxable income or loss item 7. Do not include again amounts included at C Section 46FA deductions for flow-on dividends to V Exempt income item 7 here.

    Generally, the amounts that are included at Q are income for accounting purposes, but not assessable for income tax purposes.

    other amounts of non-assessable non-exempt income (do not include demerger dividends or other amounts not shown at item 6)

    https://www.ato.gov.au/Forms/Company-tax-return-instructions-2019/?page=11#QOtherincomenotincludedinassessableincom

    #1222753
    James Millar
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    Paul.G, post: 269289, member: 55858 wrote:
    it’s OK. I found it in the end, you would account for it as ‘other income’ NANE in your accounting software so it would appear in your financial statements. You would then include it as a reconciling item in the entity’s return.

    For the benefit of other members here it is.

    Q Other income not included in assessable income

    Write at Q income-related adjustments that have to be subtracted from T Total profit or loss item 6 to reconcile with T Taxable income or loss item 7. Do not include again amounts included at C Section 46FA deductions for flow-on dividends to V Exempt income item 7 here.

    Generally, the amounts that are included at Q are income for accounting purposes, but not assessable for income tax purposes.

    other amounts of non-assessable non-exempt income (do not include demerger dividends or other amounts not shown at item 6)

    https://www.ato.gov.au/Forms/Company-tax-return-instructions-2019/?page=11#QOtherincomenotincludedinassessableincom

    Doesn’t answer the last of my post

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1222754
    Henri K
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    JamesMillar, post: 269287, member: 5318 wrote:
    So when did you hire the new employees for your business ?

    I didn’t hire. I waited to see what the packages will be like, and now that I know what they are like, I’m out of here.

    The idea of putting companies to hibernation and paying an extremely high price to ship them to the “other side of the bridge” to the new post-corona planet Australia is flawed.

    Many of the companies that are shipped to the other side of the bridge won’t be viable in the new post-corona Australia and they are wasted cost.

    Simultaneously, new companies are not eligible for anything, except paying back the cost of hibernating old companies.

    #1222755
    James Millar
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    Anyway the new Jobkeeper $1500 per fortnight is making things interesting.

    Having poured many hours in the last few weeks to treasury releases versus legislation we have learned that relying on treasury documents and politicians press conferences is very risky business.

    Some questions come to mind with this latest measure (but hats off for it because its going to help a lot of people)

    1. There is an application process with self-assessment of the reduction in gross income and there is mention of monthly reporting but does that mean its monthly eligibility assessment?

    2. Reference to “businesses without employees such as sole traders” and giving them access. Does this include companies and trusts with no employees?

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1222756
    James Millar
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    Henri K, post: 269291, member: 115510 wrote:
    I didn’t hire. I waited to see what the packages will be like, and now that I know what they are like, I’m out of here.

    The idea of putting companies to hibernation and paying an extremely high price to ship them to the “other side of the bridge” to the new post-corona planet Australia is flawed.

    Many of the companies that are shipped to the other side of the bridge won’t be viable in the new post-corona Australia and they are wasted cost.

    Simultaneously, new companies are not eligible for anything, except paying back the cost of hibernating old companies.

    Oh I thought reading your post that you missed out on something because your employees were new. So you are not effected.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1222757
    Tradie1
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    So, finally sole traders are included?? Well thats the way i read it, so fingers crossed…….. A question for any1 that has a finance background…. how does one prove a 30 % downturn in revenue for the March 1/4 where bank statements show a ‘paper increase’ for the quarter due to jobs invoiced in December not being paid till January??? …..month of March alone had almost zero income…… interesting times….

    #1222758
    James Millar
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    Tradie1, post: 269296, member: 117450 wrote:
    So, finally sole traders are included?? Well thats the way i read it, so fingers crossed…….. A question for any1 that has a finance background…. how does one prove a 30 % downturn in revenue for the March 1/4 where bank statements show a ‘paper increase’ for the quarter due to jobs invoiced in December not being paid till January??? …..month of March alone had almost zero income…… interesting times….

    the comparison period is the same month last year so you would need to compare March 2020 with March 2019 or April 2020 with April 2019. Sounds like you are good to go

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1222759
    Tradie1
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    Thanks james, so its month on month?? We are a cash based business for accounting purposes not accrual…. And I only report quarterly for BAS – Jan thru March this year actually exceeds the corresponding quarter last year but only due to some large jobs finished late December not being paid until jan and feb(gotta love builders)….. but like said b4 march income this year almost zero.. .

    #1222760
    James Millar
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    Tradie1, post: 269299, member: 117450 wrote:
    Thanks james, so its month on month?? We are a cash based business for accounting purposes not accrual…. And I only report quarterly for BAS – Jan thru March this year actually exceeds the corresponding quarter last year but only due to some large jobs finished late December not being paid until jan and feb(gotta love builders)….. but like said b4 march income this year almost zero.. .

    yeah I understand you report to ATO quarterly but you might need to check your months revenue last year for comparison. What accounting records or system do you use.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1222761
    Paul – FS Concierge
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    Ms_X, post: 269283, member: 19550 wrote:
    Good afternoon, everyone,

    as a small business owner I would like to ask, if anyone knows whether small business can access government help for business cashflow if the business is a small company, not registered for PAYG, but registered for GST. I am the sole employee and director, paying myself director fees. I did lodge last year’s tax return and early BAS. My question is: would only businesses that lodge activity statements monthly or quarterly be helped because only those businesses are mentioned in the package? Would those, who lodge activity statement once a year receive any help? If yes, would it only happen after my next BAS lodgement?

    I read all the information on government website, but there was no mention of businesses in the situation like mine.

    Many Thanks to everyone for your time.
    Could [USER=5318]@JamesMillar[/USER] help with this question?

    #1222762
    Tradie1
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    Is the stimulus definatley available to those sole traders without employees???if so, I can use bank statements to prove the zero income for march….. we use a basic spreadsheet for accounting and my accountant does the rest….. i like simple im my life plus it doesn’t need to be complicated for what we do……. its not so much the right here right now im concerned about, its down the track when life returns the ‘new’ normal because lets face it, will never be quite the same. I mentioned in earlier posts that i would be happy with some tax relief going forward…… but if this is the package i will try to access it bcos we are definatley going to continue to suffer a downturn in the months ahead…

    #1222763
    James Millar
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    Ms_X, post: 269283, member: 19550 wrote:
    Good afternoon, everyone,

    as a small business owner I would like to ask, if anyone knows whether small business can access government help for business cashflow if the business is a small company, not registered for PAYG, but registered for GST. I am the sole employee and director, paying myself director fees. I did lodge last year’s tax return and early BAS. My question is: would only businesses that lodge activity statements monthly or quarterly be helped because only those businesses are mentioned in the package? Would those, who lodge activity statement once a year receive any help? If yes, would it only happen after my next BAS lodgement?

    I read all the information on government website, but there was no mention of businesses in the situation like mine.

    Many Thanks to everyone for your time.

    ‘If you are paying directors fees then you need to report them as wages through the activity statements and STP if not exempt (which luckily you may be until 1 July 2020). If your company had business income in the 2019 FY and has lodged the tax return or lodged BAS’s for period between 1 July 2019 to 31 December 2019 showing business income then you might be able to consider taking a wage IF there is a commercially justifiable reason. You cannot do it with the primary objective of getting access to the got stimulus payment.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
Viewing 15 posts - 136 through 150 (of 201 total)
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