The Business Basics grant program provides support to businesses to increase core skills and adopt best practice. This round of Business Basics (Round 6) is focused on business enhancement. The program is administered by the Department of Employment, Small Business and Training (DESBT).

This program is applicable for businesses with less than 5 employees and a turnover of less than $300,000. With increased funding to $7500, start planning your registration of interest in the latest round of small business grants, Business Basics.  Applicants can apply for funding for grant funded activities under the following priorities:

• Professional business advice
• Strategic marketing services
• Website build and upgrades.

Opening Date: Registration of Interest (ROI) opens at 9am, Monday 30 September 2024.

Closing Date: Stage 1: Registration of Interest (ROI) closes at 5pm, Friday 11 October 2024

Access to supporting documentation and eligibility criteria is available on the Queensland Government Business website.

Please reach out to the team at MGI, if you need support in preparing your application.

August 16th, 2024 kicked off the Hoops4School Challenge to take aim at the urgent issue of education disengagement in Australia. For 20 days, participants were sinking hoops daily to spotlight the 20% of teenagers disengaged from mainstream education.

As part of the fundraising activities over August through to September, team members from MGI had the pleasure to get involved and show support in the Hoops4Schools Corporate Challenge held at Coomera Indoor Sports Centre to also raise money for The BUSY Schools program. The BUSY School is part of The BUSY Group which was formed initially to provide Apprenticeships support services to businesses across Queensland.

With the group continually growing to offer a range of additional services, The BUSY School started opening campuses in 2019, offering an alternative, supportive and innovative approach to education. Their initiative is to help transform the lives of year 11-12 students who have become disengaged from traditional education and support them to reengage, complete their QCE and find a career pathway. They now have 9 campuses in total across the south-east including Cairns. We were proud to get involved in the round-robin team corporate challenge and help fundraise for such an important cause. There was over 120 corporate attendees and students participating across 16 teams and MGI and CoAct finished a credible 3rd place overall.

This year, the Busy Schools goal has been to enlist over 1,000 participants and raise $80,000 for The BUSY School. The funds raised through the year including the Corporate Challenge will support students, staff, and programs for alternative learning solutions, expanding engagement in communities across Australia.

The Queensland Department of Employment, Small Business and Training (DESBT) has announced that HR support grants of up to $5,000 (excl. GST) are now available for small businesses.

These grants are designed to assist small businesses in addressing their workforce challenges.

Small businesses eligible for the grant must: 

• Have an active ABN
• Demonstrate their principal place of business in QLD
• Be registered for GST
• Have < 20 employees
• Have an annual turnover of less than $10 million
• Demonstrate at least 50% of the business’s income is generated directly from the business
• Declare that owners/directors are not insolvent or undischarged bankrupt

Additionally small businesses must have engaged with an Industry Workforce Advisor to complete a workforce plan that clearly identifies the workforce challenges and solutions to address these immediate HR needs through the use of the HR Support grant.

Industry Workforce Advisors have been established to provide tailored assistance to small to medium employers by developing workforce plans to address gaps in their workforce. To be eligible for the HR support grant, workforce plans must be completed in collaboration with an Industry Workforce Advisor.

Applications close on 30 June 2025 or until the $1 million of funds available are exhausted (whichever is sooner).

For all eligibility criteria and how to apply, click the Qld Govt Grant website.

Please do not hesitate to contact the MGI team if you have questions or need assistance for your application process.

From 1 July 2024, non-charitable not-for-profit entities with an active Australian Business Number (ABN) that want to access an income tax exemption are required to lodge an annual self-review return.

The new rules and their application seem to be causing a lot of confusion, so it’s worth noting who IS NOT required to report under the new rules. Entities that are not required to report include:

• Charities registered with the Australian Charities and Not-For-Profits Commission cannot self-assess, therefore, are not captured by these new reporting requirements. This would include for example, the Active Surf Clubs and RSL Sub Branches
• Entities that are taxable, but their income is wholly or partially exempt because of the principal of mutuality, for example, the Supporters of Surf Clubs and RSL Memorial Clubs.

We understand you may require some assistance navigating this new regime in the first year, so please do not hesitate to contact our tax team if you have questions or concerns over your requirement to lodge, or assistance with lodgement of you are required to lodge an annual self-review return.

For small businesses to enhance their efficiency and productivity.

This support includes funded activities in 3 project areas:

• Future planning
• Specialised and automated software
• Planning and systems for staff management and development.

Available Funding:

• $10,000 – $20,000 excluding GST
• Applicants to contribute an equal amount to the funding requested

Stage 1 is open (registration of interest)

Closes on Friday 5^th of July at 5.00pm

More information on eligibility and the application process can be found here.

Don’t hesitate to reach out to MGI if you have any questions or need assistance to complete the application.

At the recent 2024 Australian Accounting Awards, MGI Australasia was awarded the Network of the Year Award for our outstanding commitment to supporting our clients in achieving ‘Success Your Way’.

As a proud member of the MGI Australasia network, spanning across Australia and New Zealand, MGI South Queensland’s involvement in this network makes us a stronger firm, allowing us to work with fellow member firms to ensure we are at the forefront of our knowledge and understanding of the latest changes to our industry. This allows us to continue to provide accurate and expert advice to our clients. Our involvement in this network also allows us to provide training and development to our team, so we can continue the incredible work of MGI South Queensland for years to come.

Some other benefits within the MGI Australasia network include; The Graduate Academy, MGI Australasia Future Leaders Conference, MGI Australasia Leaders Conference, MGI Australasia Tax Seminar, MGI Australasia Annual Conference, plus our sub-committees and our connection to the MGI Worldwide International Network.

The value of membership with MGI Australasia extends to the entire teams of all the member firms, allowing them to feel connected to other like-minded professionals across Australia and New Zealand as well as around the world.

We would like to thank all of our clients and staff for your support. We are incredibly proud of what we have achieved as a network and we look forward to continuing to build on our offering and continuing to support you in achieving your success. Also, thank you to Accountants Daily, the judging panel for this prestigious award.

Not for profit entities that aren’t registered charities are now required to complete an annual Not For Profit Self Review return.

The not-for-profit (NFP) self-review reporting is arguably the largest change in this sector since the establishment of the Australian Charities and Not-for-Profit Commission (ACNC) in late 2012.

What has changed for not for profit organisations? 

It is important to note that no changes have been made to the legislation allowing entities to self-assess their income tax exempt status. Every organisation that has been appropriately self-assessing its status the Income Tax Assessment Act 1997 will remain eligible to self-assess for the income tax exemption from 1 July 2024.

The new requirement asks these organisations to formally report the specific basis of their assessment, by reference to the category of organisation and the specific eligibility criteria that apply to that category.

It has always been a requirement that these organisations review their eligibility to self-assess for the income tax exemption on an ongoing basis and now it will be a requirement that this assessment is lodged with the Australian Taxation Office (ATO).

We note that there is no requirement to provide detailed financial information outside of disclosing a revenue band into which the organisation falls, which allows the population to be dissected on the basis of size in the future.

Who will need to lodge? 

Various categories of NFPs will not be included in the new return and will not have a lodgement obligation.

However, if your NFP falls into the below category it will need to self-assess and lodge a return with the ATO:

• Community service organisations
• Cultural organisations
• Educational organisations
• Health organisations
• Employment organisations
• Resource development organisations
• Scientific organisations
• Sporting organisations

Any NFP’s who do not meet the above categories but are either one of the following are considered exempt from lodging the return:

• Government entities
• Taxable not-for-profits
• NFPs with only charitable purposes
• Non-profit sub-entities for GST purposes

How will an organisation know if they need to lodge? 

For those organisations already identified by the ATO, the return will be automatically generated. It will show on the entity’s ‘For action’ page in Online services for business (OSB), which may help identify the requirement for some organisations that lodge periodic activity statements via this method. Tax or BAS agents who assist with meeting GST obligations may be well-placed to identify.

Call to Action

As this is the first year of the new Not For Profit self review return reporting regime, we would suggest the following actions:

1. Contact the NFP accounting specialists in our Business Services Team to discuss the matter.
2. Allow us to review your reporting obligations and notify you whether you meet the requirements of having to lodge a return and if there is the potential of the organisation meeting a taxable outcome.
3. If you are considered a reporting entity, we would highly suggest that you allow our office to prepare and finalise this return.

Should you have any questions or wish to discuss this matter further, please do not hesitate to contact our office.

As the 2024 end of tax year approaches, the Australian Tax Office (ATO) is sharpening its focus on several key areas to ensure compliance and integrity within the tax system. This year, the ATO is particularly vigilant about claims for rental property deductions, work-related expenses, and undeclared income from the sharing economy. If you’re preparing for tax time, understanding and ensuring you’re fully compliant in these areas can help ensure you get your lodgment right the first time. Let’s take a look at the ATO focus areas for 2024 in a bit more detail.

ATO Crackdown: 3 Key Areas To Get Right For Tax Time 2024

1. Rental Property Deductions

Investment properties were a firm focus at tax time in 2023 and the ATO continues to scrutinise rental property deductions closely, ensuring that claims are legitimate and accurately reflect expenses incurred. Recent audits from the tax office indicate that 90% of rental property owners are getting their tax returns wrong.

According to ATO Assistant Commissioner, Robert Thomson: “People aren’t apportioning correctly between interest relating to private use and the interest that relates to the income they’re generating from their investment property.”

Common areas where taxpayers might encounter issues include:

• Repairs vs. Improvements: It is crucial to differentiate between repairs and improvements. Repairs, which restore an item to its original condition, are immediately deductible. In contrast, improvements, which enhance the property’s value, must be depreciated over time.
• Interest Deductions: Only the interest on loans used to purchase or renovate a rental property is deductible. Loans used for personal expenses or to purchase a property that is not rented out cannot be claimed.
• Private Use: Expenses related to periods when the property is used for private purposes are not deductible. It is essential to apportion expenses accurately if the property is only rented out part of the year or used by the owner at any time.

The ATO employs sophisticated data-matching techniques and collaborations with financial institutions to identify discrepancies and ensure compliance. Rental property owners should maintain detailed records and seek professional advice to ensure their claims are accurate and justifiable.

2. Work-Related Expenses

Work-related expenses are another area under the ATO’s microscope. This was another key focus from last year that remains a priority for the ATO. Changes were made last year to the fixed rate method of calculating a working from home deduction and taxpayers were required to keep more detailed documentation. However, this is the first full year of these changes being in effect so the expectation is that you must have comprehensive records to substantiate your claims.

“Copying and pasting your working from home claim from last year may be tempting, but this will likely mean we will be contacting you for a ‘please explain’. Your deductions will be disallowed if you’re not eligible or you don’t keep the right records.” Mr Thomson said.

To avoid issues, taxpayers should adhere to the following guidelines:

• Substantiation: Ensure all claims are supported by receipts and detailed records. Estimates or round figures can raise red flags.
• Direct Connection: There must be a direct connection between the expense and earning income. Personal or unrelated expenses are not deductible.
• Occupation Costs: Deductions for costs like rent, rates or mortgage interest are not allowable unless you’re running a business from home.

Accurate record-keeping and adherence to ATO guidelines are essential to ensure compliance and avoid audits or penalties.

3. Undeclared Income from the Sharing Economy

The rise of the sharing economy has introduced new challenges for tax compliance. Platforms like Airbnb, Uber, and various freelancing sites have made it easier for individuals to earn income that may go undeclared.

The ATO is particularly focused on:

• Rental Income: Income earned from short-term rental platforms must be declared. This includes not only the rent received but also any related fees and charges.
• Ride-Sharing and Delivery Services: Income earned from ride-sharing, food delivery, or other gig economy jobs must be reported. This includes tips and bonuses in addition to standard earnings.
• Online Freelancing: Earnings from online freelancing platforms must be declared. This includes income from both domestic and international clients.

The ATO collaborates with sharing economy platforms to access data and identify undeclared income. These sophisticated data matching systems mean that if you decide to not report your income from these platforms then you are much more likely to trigger a review by the ATO. Participants in the sharing economy should maintain comprehensive records of their earnings and report them accurately to avoid penalties.

The advice is also to not rush to submit your tax return, particularly if you received income from multiple sources. “By lodging in early July, you are doubling your chances of having your tax return flagged as incorrect by the ATO.”

As the ATO intensifies its focus on rental property deductions, work-related expenses, and undeclared income from the sharing economy, it is more important than ever for taxpayers to be diligent and compliant. By understanding these key areas and maintaining accurate records, taxpayers can navigate their obligations confidently and avoid the risk of audits and penalties. If in doubt, seeking professional advice from the tax experts at MGI can provide the necessary guidance to ensure compliance and peace of mind in the 2024 tax year.

Check out our recent blog on Personal Services Income (PSI) to ensure that you are categorising your business and services correctly.

For more information or personalised advice on your tax obligations, feel free to reach out to the experts at MGI South Qld. We’re here to help you navigate the complexities of the Australian tax system with ease and confidence.

Launched by The Department of Industry, Science and Resources, participants in the Industry Growth Program Advisory Service may apply for Commonwealth Commercialisation and Growth Grants to support specific commercialisation and/or growth projects. The commercialisation and growth stages may include developing marketplace strategies for entry to market, accelerating growth and scaling up into national and international markets.

Grant Opportunities are open for SME’s to apply for grants of $100,000 to $5,000,000 to support commercialisation and growth. To be eligible you must:

• have a combined annual turnover of less than $20 million for each of the three financial years prior to the lodgement of the application
• have received a report through the program’s Advisory Service
• own or have access to any Intellectual Property (IP) you need to undertake your commercialisation and growth project and own or have the exclusive right to commercialise any IP generated from it
• can provide evidence of your ability to fund at least your share of eligible project expenditure, such as funding strategy and a bank statement or loan agreement. You must provide an accountant declaration that confirms your ability to fund the project.

Eligibility and instructions on how to apply can be found on the Australian Government’s Grant Connect website.

Please contact the team at MGI if you have any questions or require further information.