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Welcome back to our Business Update

FBT Implications of Christmas Parties

As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organising gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

• Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
• Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
• Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

If you need help with your FBT, get in touch with us today to avoid running into problems with the ATO.

The Fair Work Ombudsman has a New Website

The Fair Work Ombudsman’s website assists employers and employees to find information about the various stages of employment.

Now with a new design and structure it will be easier for employers and employees to access information and advice on any type of device and in most languages. The improved search function will support finding information easier.

The Fair Work Ombudsman’s new page has the same content and functionality of most tools, and the resources remain unchanged, including their Pay and Conditions Tool.

They have also re-organised some of their information and resources into clearer, simpler pathways to help employers and employees find the information they need quicker.

Change in Super Rules from 1 November for Your New Employees

There’s a change that involves an extra step to comply with ‘choice of fund’ rules when a new employee starts working for you. Currently, if new hires don’t choose their own Super fund, the employer can pay Super contributions for them to your default fund.

Starting 1 November, employers will need to request their ‘stapled super fund’ details from the ATO. A stapled super fund is an existing account which is linked to an employee, and this change in rules aim to minimise the number of additional Super accounts opened each time an individual starts a new job.

You can use online services for business to request for your new hires’ stapled super fund details. If you need help with your tax and super, get in touch with us!

Changes for Directors starting in November: Identification Number Needed

All directors of a company will need a director identification number (director ID) from November.

The director identification number is a unique identifier that allows shareholders, creditors, employees, and consumers to know certain details about the directors of a company. All directors are required by law to verify their identity with the Australian Business Registry Services before receiving a director ID.

All directors need to apply for their own ID so while we can’t apply for this on your behalf, we can help you if you have any questions.

You can also follow the steps for application here.

Cyber Security & Protecting Your Business

A cyber security incident that impacts a small business can be devastating. Unfortunately, those at the Australian Cyber Security Centre (ACSC) see the impact of cyber security incidents each and every day, on individuals, large companies, and small businesses.

As part of a larger Government agenda we all need to play a small part in the national objective of protection against cybercrime, ACSC are reaching out to small/medium business to assist with the basic foundations and techniques to protect small business against critical cyber related attacks.

During the 2020-21 Financial Year the ACSC Observed

• Over 67,500 cybercrime reports, an increase of nearly 13% from the previous financial year.
• Self-reported losses from cybercrime total more than $33 billion.
• Approximately one quarter of reported cyber security incidents affected entities associated with Australia’s critical infrastructure.
• Over 1,500 cybercrime reports per month of malicious cyber activity related to the coronavirus pandemic (approximately 4 per day).
• More than 75% of pandemic-related cybercrime reports involved Australians losing money or personal information.
• Nearly 500 ransomware cybercrime reports, an increase of nearly 15% from the previous financial year.
• Fraud, online shopping scams and online banking scams were the top reported cybercrime types.
• An increase in the average severity and impact of reported cyber security incidents, with nearly half categorised as ‘substantial’.

Source: ACSC Annual Cyber Threat Report 2020-21 | Cyber.gov.au

Support for Apprentices to be Expanded

The $3.9 billion Boosting Apprenticeship Commencements program will extend support into the second and third year of an eligible Australian Apprenticeship through the $716 million Completing Apprenticeship Commencements program.

From October, eligible employers will receive a 10% wage subsidy in the second year of an eligible apprenticeship, and 5% in the third year. The government’s investment is expected to continue to support the 270,000 anticipated commencements under the Boosting Apprenticeship Commencements program from October 2020 to March 2022.

Key Dates

November Activity Statements are due 21 December 2021

December Activity Statements are due 21 January 2022

December Quarter Super must be IN THE FUNDS by 28 January 2022 – we recommend processing by the 18th January 2022 to avoid possible penalty.

Late payments of superannuation are not tax deductible. If your business has overdue superannuation guarantee payments and you are unsure of how to proceed, please contact us to discuss.

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business.