16 Jun Small business EOFY preparation and grants
It’s that time of year for small business EOFY preparation and grants related to COVID. Getting your business finances in order for the end of the financial year includes making sure you get the COVID support you are entitled to. As well as spending vouchers as a business and a household. It’s important to ensure you reap the benefits of tax time!
COVID support for business
Since the onset of the COVID‑19 pandemic, the Government has provided direct economic support to businesses. Support is available to keep businesses in business and Australians in jobs. In most states you can get rebates for business licenses, registrations and some expenses. Find out what you are entitled to and make sure you meet the criteria and the deadline. For example, in NSW you can get reimbursed for items such as sanitiser and mops, but you need to have undertaken an online safety course. There are also savings such as toll relief.
Check out your entitlements by State.
COVID support for households
In most states, households have been encouraged to get back out and spend with businesses. Particularly those businesses most impacted by COVID, such as the hospitality and travel industries. Make sure you download and use your vouchers before they expire. Many of them end on 30 June. In NSW it’s Dine and Discover, as well as Parenting vouchers; in Victoria it’s the Victorian Dining and Entertainment Program, Victorian and Seniors Travel Voucher Scheme and Midweek Melbourne Money.
Consider this the opportunity to give back to your favourite business for nothing. You don’t pay anything and they get money in the bank – or you pay out and get the money back. Win–win!
Check out information about vouchers and rebates in your state.
Local council opportunities
Small businesses have a massive impact on the amenity and vibrancy of small communities. Which is why many councils have small business grants and grants for activities that stimulate the local economy, such as festivals and events. We know that one of the silver linings of COVID was more businesses working together, so maybe you can get together with your local business group (or Beyond Business Group) and come up with an idea to bring businesses and the local community together. Check out your local Council page or newsletter for the latest opportunities.
Grants and loans
There are also a range of loans and grants you can apply for to help your business succeed and grow. Remember, grants are about giving you money, but they do have administrative and legal requirements that can be burdensome and resource intensive. Loans might be low or no interest and Government guaranteed – but non-payments have long implications.
Check out the SME small business recovery loans.
EOFY preparation
With the last few years being so lean for many businesses, we want to make sure you take advantage of as many tax benefits as you can. Here are some ideas you can consider, depending on your cash position (talk to your accountant):
- Deferring income. Depending on your cash flow situation, you may be able to defer debtor payments until after June 30 in order to push recognition of accrued income to the next financial year, reducing your overall tax liability.
- Pre-pay business expenses. You may be able to claim a deduction this year for works or expenditure planned in the next 12 months (provided your business has a turnover under $10m per annum).
- Instant asset-write off. Now called the Temporary Full Expensing measure, consider purchasing key business assets now. Remember they must be installed and ready for use prior to June 30 to be eligible for a deduction this financial year.
- Bring staff expenses forward. If you have outstanding superannuation liabilities or plan to give any staff annual bonuses, consider bringing these expenses forward to ensure they are deductible.
- Document accrued staff entitlements. Other staff entitlements should be documented before the EOFY as they are deductible when incurred rather than when they are paid.
- Review your debtors. If you have unpaid accounts that are unlikely to be settled before 30 June, you may be able to write these off as bad debts in order to claim a tax deduction.
- Resolve trustee income distributions. If you operate your business or have investments held in a trust, ensure you make trustee income distribution resolutions prior to 30 June to ensure ATO compliance and tax effectiveness.
- Accrue personal expenditures. Consider topping up personal voluntary super contributions up to the maximum annual deductible amount of $27,500 and prepaying interest on investment loans for geared assets such as rental properties.
- Review compliance and reporting obligations. These can include:
- Vehicle log books
- Finalisation and reconciliation of Single Touch Payroll
- Taxable Payments Annual Report
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