360Private

Important Superannuation Changes for Employers

From 1 November 2021, if you have new employees starting in your business, you may have an extra step to take to comply with choice of fund rules if the employee does not choose a super fund. You will now need to request the employee’s ‘stapled super fund’ details from the Australian Tax Office (ATO). A stapled super fund is an existing super account which is linked, or 'stapled', to an individual employee so that it follows them as they change jobs. These new changes aim to reduce account fees by stopping new super accounts being opened every time an employee starts a new job.

On Monday 9 August 2021, the Australian Government and Government of South Australia announced a new $3,000 cash grant program for businesses and $1,000 for sole traders in eligible industry sectors - such as hospitality, creative venues and artists, tourism, gyms and transport.

South Australian businesses that continue to be significantly impacted by ongoing COVID-19 density and trading restrictions may be eligible for additional financial support. Businesses based in the Adelaide CBD may be eligible for an additional $1,000, acknowledging the significant decrease in city foot traffic.

The State Government is offering up to $200,000 in grants to small and medium-sized businesses looking to expand into overseas markets, in a revamp of the SA Export Accelerator (SAEA) Program.

First introduced in August 2018, the program has undergone a review, with the funding categories revised in a bid to give a greater pool of small to medium sized businesses access to the grants. New activities within the funding stream have been introduced to support exporters that are seeking entry to new markets.

Due to changes in the criteria, companies that were once unable to apply may find that they can now access funding. The programme is administered by the Department of Trade and Investment and provides grants for activities such as marketing and promotion, freight and logistics, export training and market access support.

To be eligible, businesses applying must be from one of the nine Growth State priority sectors, which are:

A new Covid-19 Business Support Grant has been announced by the South Australian State Government to assist small and medium businesses that suffer a significant loss of income as a result of the Covid-19 health restrictions.

Eligible employing businesses can apply for a $3,000 cash grant, whilst a $1,000 cash grant is on offer to eligible non-employing businesses.

To be eligible for the one-off $3,000 grant, a business must, as at 12:01am Tuesday 20 July 2021:

  • Be located within South Australia;
  • Have an annual turnover of $75,000 or more in 2020-21 or 2019-20 financial years, and be registered for GST;
  • Employ people in South Australia;
  • Have an Australia-wide payroll of less than $10 million in the 2019-20 financial year;
  • Have a valid and active Australian Business Number (ABN); and
  • Have experienced at least a 30 per cent reduction in turnover in the week of Tuesday 20 July 2021 to Monday 26 July 2021 (inclusive) compared to the week prior, due to the restricted trading conditions.

Employers should be aware of some key changes to superannuation laws that will impact the calculation of employee superannuation entitlements.

Superannuation Guarantee Rate Increase to 10%

Employers in Australia are required by law to make regular contributions to their employee’s superannuation fund. The legislated Superannuation Guarantee (SG) rate is currently set at 9.5% of ordinary time earnings. The first increase to the SG rate will occur on 1 July 2021 and will see the contribution rate that employers are required to pay increase from 9.5% to 10%. This will then be followed by incremental half percentage point (0.5%) increases each year until the rate reaches 12 per cent on 1 July 2025.

The Fair Work Act 2009 has recently been amended to change workplace rights and obligations for casual employees. The changes were made by the Fair Work Amendment Act 2021 and came into effect on 27th March 2021.

These amendments update the definition of casual employment and provide guidelines for moving casual employees to permanent employment. In addition, the amendments introduce requirements for all Employers to provide a Casual Employment Information Statement.

Employers are required to give every new casual employee a Casual Employment Information Statement (CEIS) before, or as soon as possible after, they start their new job.

Retirement Village Masterclass

Last week, Mark Lumley of 360Private Legal, gave a series of presentations at a Retirement Village Masterclass being held at Aveo Retirement Villages. These presentations on Retirement Village Contracts gave an overview on all Estate Planning considerations, as well as advice around legal obligations which should be considered prior to signing any such retirement village contracts.

360Private Legal can provide in depth analysis of your current circumstances and review any succession issues that need to be addressed. 360Private Legal can also provide you with recommendations including referrals to associated professionals who will assist you in the delivery of considered and comprehensive estate planning documentation and business succession planning.

The 2020 – 2021 Federal Budget announced significant temporary changes to the tax rules surrounding depreciating assets. These new, full expensing rules apply to businesses with a turnover of up to $5 billion. An immediate 100% deduction can be taken for eligible depreciating assets incurred from 6 October 2020 until 30 June 2022.

Which assets are eligible?

A depreciating asset qualifies for full expensing if after 6 October 2020, and on or before 30 June 2022 the entity:

  • Starts to hold the asset; and
  • Starts to use the asset, or has it installed ready for use for a taxable purpose.

An asset is not eligible for full expensing if:

The JobMaker Hiring Credit scheme is an incentive for businesses to employ additional young job seekers aged between 16–35 years, delivering a payment to support the new employees’ wage costs.

Eligible employers can receive the payment for up to 12 months for each additional new eligible employee they hire between 7 October 2020 and 6 October 2021. This has been capped at a maximum of $10,400 per year and employers will be credited up to $200 a week for employees aged 16-29 and up to $100 for those aged 30-35 years.

Eligible employers will be able to register with the ATO from 6th December 2020 and are able to claim payments in arrears from 1 February 2021. Employers will also be able to claim payment on eligible employees for up to 12 months from their employment start date.   Businesses are unable to claim JobKeeper and JobMaker Hiring Credit at the same time.

Tue19Jan2021

If ever there was a year to see your risk insurance adviser, this is the year.

Premiums are on the rise and the Income Protection market has changed dramatically.

Over the past 5 years Australia’s life insurance industry has made billion-dollar losses, primarily due to a large increase in the cost of claims and the continuing long-term low interest rate environment. Income Protection policies are the main culprit behind the increasing cost of claims, with far greater numbers of successful Income Protection claims made and for longer durations. Whilst successful claims and usage of insurance policies is a good thing for consumers, the continual incurring of losses has prompted concern from the regulator, Australian Prudential Regulation Authority (APRA), that the life insurance industry is unsustainable based on the current insurance contract arrangements.

Retirement Village Contracts

Entering a retirement village is a major financial and lifestyle decision.  It is prudent to include your family in the decision to move in to a retirement village.

Retirement villages for the most part offer a fulfilling, communal lifestyle but you need to be aware of some of the key features of the retirement village model, these being;

  • You don’t purchase the bricks and mortar of the retirement village unit, you are purchasing a right to occupy the unit by way of an interest-free loan to the retirement village operator;
  • You do not receive a certificate of title and you will not be noted on the title (which is held by the retirement village operator);
  • You are required to pay an entry fee which is returned to you or your estate less deductions when your tenure comes to an end;
  • You still need to pay a regular maintenance fee (either weekly, fortnightly or monthly) whilst you are living in the retirement village; and
  • Each retirement village has its own residence rules governing the conduct of the residents.

Is a Will a must have or just something your advisors keep telling you that you need? There are a few key points that you should understand around why you may need a Will.

When you pass away you will either have a Will, or not have a Will. If you have a Will then your Estate (a combination of your personal items, bank accounts, property, investments, superannuation etc.) will be administered according to the terms of your Will and pass to the people you have nominated as beneficiaries. If you pass away without a Will it is said that you have died ‘intestate’ and your Estate will instead pass in accordance with the laws of intestacy.

Laws of Intestacy

Financial health check

Whether it be a query about superannuation, investments, insurance, mortgage or any other financial based questions, get 360Private to check on your financial health.

Client testimonials

As relevant today as they were 20 years ago

SPORTSMED SA has been proudly associated with the team from 360Private for over 20 years. Both SPORTSMED SA and 360Private have grown considerably over this time and the challenges have been many and varied. The range of services provided by 360Private are as relevant to our business today as they were 20 years ago and are supported by strong client/advisor relationships and leadership.

- Alan Morrison, CEO Orthopaedics & Hospitals, SPORTSMED SA

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