NSW announces small business support grants: How to access the funds

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The NSW government is offering small businesses support grants to help alleviate cash flow constraints while trading is restricted, targeted particularly at sole traders and non-for-profit organisations, with expanded criteria to assist most hospitality and tourism operators.

Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions: $10,000 for a 70 per cent decline, $7,000 for a 50 per cent decline and $5,000 for a 30 per cent decline.

According to Premier Gladys Berejiklian, the funds, which are expected to hit accounts from next month, may be used to service expenses such as rent, utilities and wages, for which no other government support is available.

Applauding the NSW government’s latest announcement, Business NSW chief executive Daniel Hunter said the package is well targeted and is one of the “fastest and largest” business support packages from any state in response to the pandemic.

Larger businesses haven’t been ignored either, with a number of state government taxes and charges deferred, with payments due later in the year.

Dine & Discover vouchers will also be extended until 31 August and can now be used at takeaway venues, so long as that food is delivered and not picked up.

How do the grants work?

The grants will be divided into two streams:

  1. Small Business COVID-19 Support Grant. Available to businesses and sole traders with a turnover of more than $75,000 per annum but below the NSW government 2020–21 payroll tax threshold of $1,200,000 as at 1 July 2020.

These businesses must have fewer than 20 full-time equivalent employees and an Australian business number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales. Full criteria will be available in coming days on the Service NSW website.

  1. Hospitality and Tourism COVID-19 Support Grant. Available to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual Australian wages bill of below $10 million, as at 1 July 2020.

These businesses must have an Australian business number (ABN) registered in New South Wales or be able to demonstrate they are physically located and primarily operating in New South Wales. Full criteria will be available in coming days on the Service NSW website.

Businesses will be able to apply for the grants through Service NSW from later in July and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on 26 June.

 

Source: https://www.mybusiness.com.au/finance/8245-nsw-announces-small-business-support-grants-how-to-access-the-funds?

Lost paper receipts see 1 in 4 SMEs miss out by thousands

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A new report conducted by Aussie fintech company Slyp and big four bank NAB surveyed over 300 businesses to identify the impact paper receipts have on SMEs come tax time.

According to the research, 25 per cent of those surveyed have lost up to $10,000 by simply misplacing receipts. A further 8 per cent of those said they’ve lost between $10,000 and $100,000.

A whopping 62 per cent of SMES surveyed said they lose paper receipts at tax time, with those that do collate them noting it’s the most time-consuming part of the tax process (42 per cent). A further 39 per cent said fact-checking paper receipts is the most time-consuming part.

“Australian small business owners are incredibly hard working and the data shows that, for many, paper receipts can add undue stress and complication to tax time,” Tania Motton, NAB executive for business banking, said.

“81.1 per cent of small businesses say the availability of digital receipts would improve their tax-time process.”

Commenting further, CEO and co-founder of Slyp Paul Weingarth said: “The tax-time process is time-consuming for small businesses and it’s clear that there’s a disconnect between the current manual process and the tools that small businesses are using.

“Three-quarters (75 per cent) of Australian small businesses say they’d like to change the way that they process paper receipts in the next financial year and more than two-thirds (69.6 per cent) say they’d be more inclined to purchase through a retailer that provided digital receipts.”

Please ask our office about the use of Dext (previously Receipt Bank) software and how to process this software within your xero accounting system. Clients that currently use Dext have described this software as an invaluable tool.

 

Source: https://www.mybusiness.com.au/tax-accounting