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Manufacturing grants are available through the Manufacturing Grants Hub Program (MHGP) to assist eligible businesses in the Cairns, Central Queensland, Gold Coast, Mackay and Townsville regions.
These grants are an opportunity for manufacturers to become more productive, build advanced manufacturing capabilities and create the jobs of the future through:
Grants between $10,000 and $500,000 are available for eligible manufacturing small to medium enterprises.
The Program (MHGP) supports the growth of Queensland’s regional manufacturing industry by helping small to medium enterprises (SMEs) build their advanced manufacturing capabilities.
The program helps regional manufacturing SMEs to:
Round 3 of the MHGP will be open to eligible applicants until 30 June 2024 or until all funding has been allocated.
For more information on how to apply and program guidelines visit the Queensland Government Manufacturing Hub Grant Program website.
If you have any questions or need assistance with your application, please reach out to the team at MGI.
Are you having a staff Christmas Party? With the festive season just around the corner, the ATO has reminded employers to consider the fringe benefits tax (FBT) implications of the party or other event. So what are the FBT implications of the office Christmas party?
This will depend on a number of factors:
It is important to keep all records relating to the entertainment-related fringe benefits you provide, including how you worked out the taxable value of benefits.
You need to be sure you really understand how FBT works, otherwise you could end up with a heft FBT liability.
Christmas parties constitute “entertainment benefits” and to the extent that the expenditure relates to employees or their associates attending the function, the expenses may be subject to fringe benefits tax (FBT) unless an exemption (eg, the “minor benefits” exemption) applies.
A minor benefit is one that is provided to an employee or their associate (eg, spouse) on an “infrequent” basis, which is not a reward for services, and at a cost less than $300 (inclusive of GST) “per benefit”.
Entertainment expenses are not tax-deductible unless they are subject to FBT. This means that expenses incurred in providing a Christmas party are not generally deductible where the minor benefit FBT exemption applies.
Non-entertainment benefits provided to employees at the Christmas party, such as a hamper, are considered separately when applying for the $300 minor benefits exemption. Although the total cost per person is more than $300, each benefit should be considered separately under the minor benefits exemption.
If the business gives employees non-entertainment type gifts that cost less than $300 (inclusive of GST) per employee, then the cost is fully tax-deductible, with no FBT payable and GST credits can be claimed. The gifts at Christmas parties are usually exempt from FBT because they are not provided on a regular basis, and the gift is not provided to the employees wholly or principally as a reward for their services rendered.
Unlike non-entertainment gifts, gifts classified as entertainment, including recreation, are non-deductible and GST credits cannot be claimed. A tax deduction and GST credits can only be claimed on entertainment or recreation gifts where Fringe Benefit Tax applies. This means that while the minor and infrequent exemption could still apply for entertainment and recreation gifts costing less than $300 (GST inclusive), tax deductions and GST credits can only be claimed where FBT applies to entertainment and recreation gifts.
The costs (such as food and drink) of a Christmas party are exempt from FBT if they are provided on a working day on your business premises and consumed by current employees. If spouses or other guests of employees are entitled to attend, there could be an FBT liability unless the cost is covered by the minor benefits exemption.
This grant is for improving respite care for people with dementia and their carers. Grant program funding for a range of activities (in the context of aged care) aims to increase support to informal carers and families caring for a person living with dementia, through access to dementia–specific respite support services in Tasmania, Western Australia, Northern Territory, Queensland, and the Australian Capital Territory.
Close Date & Time: 18th of December, 2.00pm ACT time.
Up to $27.408 million (GST exclusive) is available over four years from 2023-24 to 2026-27. There are two streams of activities and applicants may apply for funding under one or both streams.
Stream 1: Delivery of combined respite care for both the carer and person with dementia, applying the principles of HammondCare’s Staying at Home program in these jurisdictions: Tasmania, Western Australia and Northern Territory.
Stream 2: Delivery of innovative programs or models of respite care and respite care planning for people with dementia and their carers (applications may include opportunities to trial new approaches and one-off pilots), in these jurisdictions: Tasmania, Northern Territory, Queensland and the Australian Capital Territory. Funding for stream two activity ends in 2025-26.
If you have any questions or need assistance with your application, please contact the team at MGI.
In Round 2, payments up to $6,000 (GST not applicable) will be available per eligible Registered Nurse working in aged care. This round will accept applications for Registered Nurses who were employed by the same eligible employer during the entire eligibility period of 1 November 2022 to 31 October 2023. Applications for this grant opportunity must be submitted by the employer. Employers should discuss this grant opportunity with their employees prior to the submission of the application.
To be eligible to receive a payment under this grant opportunity, Registered Nurses must hold general registration with the Nursing and Midwifery Board of Australia (Nursing and Midwifery Board of Australia – Nursing (www.nursingmidwiferyboard.gov.au)) as a Registered Nurse (Division 1).
Registered Nurses must have been employed by the same eligible employer for the full period of 1 November 2022 to 31 October 2023 to receive the 12-month payment or have been employed by the same eligible employer for the full eligibility period of 1 May 2023 to 31 October 2023 to receive a 6-month payment.
Applications for Registered Nurses eligible for either 12-month or 6-month periods can be lodged at the same time.
Successful applicants must make full payment of grant funds to eligible Registered Nurses within 8 weeks after receiving the grant funds.
Close Date: 20th of December, 2.00pm ACT time.
If you have any questions or need assistance with your application, please contact the team at MGI.
The Manufacturing Energy Efficiency Grant (MEEG) Program is a $7.1 million Queensland Government program helping the manufacturing sector to increase their competitiveness in a low carbon future by implementing energy efficiency measures that reduce energy costs and operational emissions.
Applicants should allow up to 12 weeks from submission for assessment of the application.
Queensland-based manufacturers looking to increase energy efficiency measures and technology, reduce energy usage and costs, reduce emissions and increase awareness of energy use are encouraged to apply for matched funding grants of $5,000 to $25,000. The applicant guidelines provide the full details including eligibility and assessment criteria.
Applications will close on 30 June 2024 or when all funding for this round is allocated.
Please contact the team at MGI if you have any questions or need assistance with your application for an energy efficiency grant.
Made in Queensland (MIQ) is a $101.5 million Queensland Government program helping small and medium sized manufacturers to increase international competitiveness, productivity and innovation, and to generate high-skilled jobs for the future. MIQ supports traditional manufacturers to adopt industry leading equipment, technologies, systems and processes.
The $20 million Round 6 of Made in Queensland closes at 9am, AEST on 11th of December 2023.
Queensland-based manufacturers looking to adopt industry leading equipment, technologies, systems and processes that include energy efficiency, export, reshoring, supply chain improvements, sustainability and/or advancement of decarbonisation and net zero outcomes are encouraged to apply for matched funding grants of $50,000 to $2.5 million.
Up to $2.5 million of available funding has also been set aside for applications which do not involve the purchase of equipment and are seeking less than $250,000 each in funding.
Successful MIQ applicants will be required to execute a funding agreement with the Queensland Government. An example funding agreement is provided below for information purposes.
Please contact the team at MGI if you have any questions or need assistance in your application.
The Government has released draft superannuation legislation for the proposed new tax on members with more than $3m in super – known as “Division 296 tax”.
The Federal Government hasn’t moved from its original direction and so the unpopular elements remain:
Earnings is essentially movement in a member’s total superannuation balance adjusted for net contributions and withdrawals.
Earnings will be specifically adjusted to reflect the fact that increases in a member’s balance arising from inheriting super pensions, receiving transfers from a partner or ex partner’s superannuation (under a contribution split or family law split) and insurance payouts are not earnings and shouldn’t be subject to the tax. Interestingly, even some amounts allocated from reserves will be excluded from earnings.
The Government will not chase deceased members for Division 296 taxes that would otherwise be incurred in the year of death. A member who dies before the end of the year will be deemed to have a $nil tax regardless of what’s happened to their super during the year. If their balance has been left in super but transferred to a spouse (for example, a reversionary pension or a death benefit pension) it will be counted in the inheriting spouse’s $3m. So, this is only relevant for people whose super is still waiting to be dealt with at the end of the year.
The Bill reduces the tax concessions for individuals with a total superannuation balance (TSB) above $3 million by imposing an additional 15 per cent tax on certain earnings under Division 296 of the Income Tax Assessment Act 1997.”
The tax will be levied on individuals but can be paid from a super fund using the usual release authority mechanism.
Treasury has invited responses to the draft legislation, but there’s a very short turnaround required (18 October 2023), suggesting major changes are not expected.
MGI SQ will provide further updates in due course on the legislation. In the meantime if you have any queries please don’t hesitate to contact us.
Ownership of cryptocurrency has been on the increase in Australia for a number of years now. But many people are confused about what impact this has from a tax perspective. The tax implications of digital currencies can be complex so we’re going to take a look at crypto tax in Australia if you’re an investor, not a trader. If you’ve considered investing in it, we’ll also explore under what circumstances Capital Gains Tax (CGT) is payable along with other potential tax consequences of owning cryptocurrency. Do you have to pay tax on cryptocurrency in Australia? Let’s take a look…
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. It operates on a technology called blockchain, which is a decentralised and distributed ledger that records all transactions across a network of computers. Unlike traditional currencies issued by governments (such as the Australian Dollar), cryptocurrencies are typically not controlled by any central authority, like a central bank. Bitcoin, Ethereum, and Ripple are some well-known examples of cryptocurrencies.
In Australia, cryptocurrency regulation has evolved over the years, and it’s important to note that regulations can change, so it’s essential to stay updated with the latest developments.
The Australian Taxation Office (ATO) treats cryptocurrency as property for tax purposes. This means that individuals and businesses are required to pay capital gains tax on cryptocurrency transactions, depending on the profits they make.
When you sell a cryptocurrency asset you need to work out whether you made a capital gain (i.e. you made a profit) or a capital loss (i.e. you lost money) to determine how much capital gains tax (CGT) you’re required to pay. You need to report your gains and losses in your Income Tax Return and pay income tax on net gains.
Crypto disposal is considered a ‘CGT Event’ by the ATO however ‘disposal’ doesn’t simply mean sale of your cryptocurrency. It also includes:
Cryptocurrency transactions are also subject to goods and services tax (GST) in some cases.
If you receive cryptocurrency as payment for goods or services, it’s considered part of your taxable income and should be declared on your tax return at its Australian dollar value at the time you receive it.
Crypto-to-crypto trades are also taxable events. It’s important to understand that when you trade one cryptocurrency for another, it is considered a disposal for tax purposes, and any capital gain or loss needs to be reported.
Mining cryptocurrency is also considered a taxable activity, and the mined coins are subject to taxation.
However, the ATO views cryptocurrency used for personal use (e.g. buying a product), sometimes referred to as Personal Use Assets differently than cryptocurrency kept as an investment. These distinctions can greatly affect tax obligations. We cover this in more detail below.
The ATO now has sophisticated data matching techniques in place for Cryptocurrency trades or exchanges. It’s likely that they already have your information if you have an account with an Australian Designated Service Provider (DSP) as they have access to the Know Your Customer information supplied when you signed up for an Australian exchange or wallet.
In addition, the ATO has specific guidance and tools for cryptocurrency tax reporting, including the use of cryptocurrency tax software.
It’s vital to understand that attempting to avoid or evade cryptocurrency taxes in Australia is illegal and can lead to penalties and fines.
It’s important to recognise that you cannot avoid paying tax on crypto currency in Australia however there are some measures that you can take to reduce the tax payable. You have to declare crypto in your tax return if you have sold, traded or earned it in the past financial year.
However, one of the ways to potentially reduce your CGT tax liability is to hold on to your investments for more than 12 months before selling. You may then be eligible for a 50% discount on the CGT tax payable.
In addition there is the Personal Use Asset exemption. Cryptocurrency is considered a personal use asset if you keep or use it mainly for personal use and it was purchased for less than $10,000. The most common situation of personal use of crypto assets is to buy items for personal use or consumption. If the crypto is considered a personal use asset, a capital gain / loss can be avoided.
One of the key considerations for determining whether your cryptocurrency is a personal use asset is the length of time you keep hold of it before using it to buy something. The longer you keep hold of it, the less likely it is to be considered a personal use asset. While the guidance is a little vague, some examples provided by the ATO indicate that if transactions take place within a 2 week period then they may be considered as personal use assets.
However, crypto assets are not personal use assets when you keep or use them:
Finally, donating crypto to a registered charity is also one of the few times that it is not taxable.
You can claim capital losses on cryptocurrency investments to offset capital gains. If you sell cryptocurrency at a loss, you can use this loss to reduce your overall tax liability. Capital losses can’t, however, be used to offset income.
It’s fair to say that crypto tax in Australia is complex. That’s why it pays to get advice from accounting experts. It’s crucial to maintain accurate records of all your cryptocurrency transactions, including purchase/sale dates, amounts, and the parties involved. This information is necessary for tax reporting. It’s advisable to report all cryptocurrency transactions accurately and seek professional tax advice to ensure compliance with tax laws.
The Small Business Technology Investment Boost by the ATO, is a tax incentive program designed to provide financial support to small businesses seeking to invest in technology to improve their operations and productivity. The scheme allows eligible businesses to claim an additional 20% tax deduction for technology-based expenses up to a threshold.
For an entity to be eligible for the boost it must be “carrying on a business” with an aggregated annual turnover of less than $50 million. The boost can apply to sole traders, partnerships, companies, and trusts.
Business expenses that have a close connection with the entity’s digital operations or digitising its operations are eligible for the bonus deduction. As the legislation is very broad in its definition a large variety of expenses may be eligible.
The bonus deduction for the boost will be taken up by us as a tax adjustment when we prepare the 2023 Income Tax Returns. The 2023 Income Tax Returns will include the tax adjustment for eligible expenses incurred during the 2023 financial year, as well as eligible expenses incurred during the eligible period within the 2022 financial year (29 March 2022 to 30 June 2022).
The boost is capped at $100,000 of expenditure per income year, resulting in a bonus deduction of $20,000. Therefore, since the eligible period covers one full financial year (2023) and part of another financial year (2022), the total bonus deduction claimable is $40,000.
For further details on the Small Business Technology Investment Boost please click on this Australian Tax Office link.
Please contact the team at MGI if you have any questions or require further information.
As we highlighted in our recent blog on tax and the sharing economy, the Australian Taxation office (ATO) is paying closer attention to those involved in the sharing economy. This includes those offering short term rentals of all or part of their home on platforms like Airbnb or Stayz. Under the new Sharing Economy Reporting Regimes, these platforms are required to report seller transactions to the ATO. So it’s vital that if you’re earning some extra income by renting out that spare room or your holiday home, you understand the airbnb tax implications in Australia.
You are generally required to pay income tax on the income you earn from renting out your property on platforms like Airbnb. The income should be included in your annual tax return as part of your total assessable income. It’s important to understand that the ATO is now using data matching processes so openly and accurately declaring your income earned via Airbnb is essential to avoid fines and penalties.
Income you earn from the sharing economy may not have tax withheld, which means you may have a tax bill when you lodge your return. We strongly recommend that you set money aside from your Airbnb earnings to cover the additional income tax that you will incur.
No – you don’t need an ABN if you rent out all or part of your home on Airbnb. The income is treated as residential rental income, in the same way as an investment property so an ABN is not necessary.
The ATO doesn’t view money earned from Airbnb as business income. However, it does pay to be thorough in your record-keeping of both your income and your expenses.
Generally speaking, as you’re not classed as running a business by the ATO, you do not need to register for and pay Goods and Services Tax (GST). Even if you make more than the $75,000 GST threshold, you are unlikely to be required to pay GST because Airbnb rental properties are classed as residential income which is exempt from GST.
This also means that you are unable to claim GST credits for any expenses and associated costs.
The good news is that you can claim various tax deductions related to your Airbnb rental activity. However, it’s important to note that if you’re only renting out part of your home on Airbnb, you’ll have to apportion these deductions appropriately. The ATO has indicated that over-claiming expenses is forming a key area of focus when it comes to the short term rental market.
The Airbnb related deductions that you may be able to claim include:
This includes costs for things like commercial cleaning of the rented area, maintenance, repairs, utilities and property insurance. You may also be able to claim for food and other basic food provisions made available to your guests.
If you have a mortgage on the property, you can claim a portion of the interest as a deduction.
You might be able to claim deductions for the depreciation of assets like furniture and appliances used in your rental property.
These can be claimed as deductions.
Costs associated with listing your property on Airbnb such as hiring a professional photographer for your Airbnb listing plus commissions and service fees charged by Airbnb.
Capital Gains Tax (CGT) comes into play when a taxpayer disposes of income-earning assets such as shares, investments, crypto currencies and properties.
While your main residence is generally exempt from CGT when you come to sell it, if you have used all or part of it to generate income, such as renting it out on Airbnb, then part of the ‘gain’ will be taxable.
However, there are some exemptions available if the property is your main residence for part or all of the time you own it. If the property is treated as an investment property, CGT rules related to investment properties would apply.
Airbnb hosts frequently overlook or get confused by the CGT implications of renting out their property. This can be a costly mistake and one you should consider before you decide to make your home available on Airbnb.
Remember, tax laws are complex and can vary based on your individual circumstances. It’s always advisable to consult with a qualified tax professional who can provide advice tailored to your situation and ensure that you’re complying with all relevant Airbnb tax obligations in Australia.
The tax accountants and business advisors at MGI South Queensland can help you understand what your Airbnb tax obligations are and if you are entitled to any deductions. Contact us now on 07 3002 4800 to get the latest advice.
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