NOW OPEN – ENERGY EFFICIENT GRANTS FOR BUSINESSES

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NOW OPEN – ENERGY EFFICIENT GRANTS FOR BUSINESSES
 

What Is The Grant?
The Energy Efficiency Grants for Small and Medium Enterprises (SME’s) Round 1 will support businesses to upgrade or replace inefficient equipment to improve their energy efficiency.
The objectives of the program are to: 

  • improve energy efficiency practices and increase the uptake of energy efficient technologies 
  • assist small and medium businesses to manage their energy usage and costs
  • reduce greenhouse gas emissions. 

 
Who is Eligible?
SME’s with an employee headcount from 1-199 employees are eligible to apply.
 
*Please refer to the attached Guidelines for complete eligible criteria.
 
What Funding does the Grant Provide?
Grants from $10,000 to $25,000 to cover up to 100% of eligible project expenditure.
 
How Do I Apply?
Businesses will need to establish an account to access the online portal at business.gov.au.
 
Application are available through the link below:

https://business.gov.au/grants-and-programs/energy-efficiency-grants-for-small-and-medium-sized-enterprises-round-1#how-to-apply
 
Applications are limited so we recommend you to apply ASAP.
 
Frequently Asked Questions

What are the examples of eligible activities and expenditures?

  • Replacing non LED Lights with LED lights
  • Install automatic lighting control equipment
  • Replace an existing refrigerated display cabinet with a new high efficiency unit
  • Replace a refrigeration compressor
  • Conduct a detailed engineering feasibility study for an energy efficiency upgrade
  • Purchase and install equipment to meter, monitor and record energy use (eg smart meters)

 
Can you do multiple projects? Eg replacing both the LED lights and Heatpump?

  • Yes, given the cost is 10k minimum, and you can also satisfy other eligibility criteria.

 
What if my cost is higher than $25,000?

  • You will get maximum of $25,000 if approved. Any amount above $25,000 will not be covered by the Grant.

 
What if my cost is less than $10,000?

  • You need to spend a minimum of $10,000 to be eligible for this grant.

 
Links and Documents for reference

You can find more information about this Grant at:

https://business.gov.au/grants-and-programs/energy-efficiency-grants-for-small-and-medium-sized-enterprises-round-1#at-a-glance
 

 

Click Here for EEF for SMEs Round 1 Guidelines

 

Click Here for FAQs (others)

 

Click Here Sample application form

 

If we can assist with any information on this matter or if you have any questions regarding this email, please do not hesitate to contact our office on (02) 8543 6800.

$3 Million Super Cap Changes – How it Impacts You

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The Government has announced that from 1 July 2025, an additional tax of 15% will apply to a new definition of ‘earnings’ for superannuation balances exceeding $3 million.

WHAT IS IT?

The increased tax will apply to individuals with a Total Superannuation Balance of $3 million or more on 30 June 2025.  This includes all superannuation, across both pension and accumulation accounts, across all superannuation funds.
 
WHEN DOES THIS BEGIN?

The new tax will commence for the 2026 financial year, and the initial tax assessments will be sent to members after 30 June 2026.

WHAT DO I DO?

Nothing at this stage – there are many significant questions and concerns that will be raised with Treasury as part of the consultation process before legislation is drafted.

In addition, the new system will not apply until the 2026 financial year, allowing people to consider their own situation prior to this and restructuring if necessary.
 
HOW IS IT CALCULATED?

Essentially, the ATO will use the below calculation to determine how much tax is payable:

Earnings = Total Superannuation Balance (on 30 June of the current year) – Total Superannuation Balance (on 30 June of the previous year) + withdrawals – net contributions.

The earnings will then be apportioned to only include the amount over $3 million.

Proportion = (Total Superannuation Balance (on 30 June of the current year) – $3 million) / Total Superannuation Balance (on 30 June of current year)
 
WHAT IF ASSET VALUES GO DOWN?

If the above calculation results in a loss, then the member will be entitled to a carry forward loss to offset increases in subsequent years – however, there is no tax refund applicable.

We will keep you updated as this matter develops.

Business & Profit Matters Newsletter – Summer 2023

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Click here to download the Business & Profit Matters Newsletter – Summer 2023

 

Shuffling The Deck: 2022-23 Budget 2.0

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There is nothing in this Budget that would create a UK style crisis. The stage 3 tax cuts legislated to commence on 1 July 2024 are not mentioned, and most funding initiatives appear to be a reallocation of previous Government initiatives. And, the commodity driven $54.4 billion improvement in tax receipts has largely been banked, not spent.
 
With seven months before the 2023-24 Budget released in May 2023, this Budget is a shuffling of the deck not a new set of cards. And to continue the pun, we need to play the hand we have been dealt, buffeted by externalities – war, floods, and global uncertainty.
 
Cost of living pressures will continue. While some initiatives such as the increase to child care subsidies will help, the Budget flags some fairly bracing economic expectations:
 
  • Inflation expected to peak at 7.75% in the December quarter and will persist at higher rates for longer than expected before easing to 3.5% by June 2024.
  • Real GDP is forecast to grow to 3.25% in 2022-23 then retract to 1.5% in 2023-24.
  • Electricity prices are expected to increase nationally by an average of 20% in late 2022, with retail electricity prices expected to rise by a further 30% in 2023-24.
  • The deficit sits at $36.9bn, while this is better than originally estimated, the deficit expands to $49.5bn by 2025-26.
CLICK HERE TO DOWNLOAD THE BUDGET 2022-23 2.0
Tight labour market conditions are expected to see annual wage growth pick up to 3.75% by June 2023. Even so, high inflation is expected to see real wages fall over 2022-23 before rising slightly over 2023-24. That is, your wages might increase but the gains will be eaten away by the increasing cost of living.
 
The ATO gets an extra $80m to extend its personal income tax compliance program, with $674m anticipated in increased receipts and over $80m in increased payments as a result. Tax deductions will be looked at closely.
 
As expected, multi-nationals are a target. New measures will limit opportunities to shift taxable profits offshore. And, the ATO’s Tax Avoidance Taskforce is expected to deliver a whopping $2.8bn in additional tax receipts and $1.1bn in payments over the 4 year period.
 
Please contact your client manager directly by phone on
(02) 8543 6800 or email for more information.

Business & Profit Matters Newsletter – Spring 2022

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Register your .AU Domain Name by 20 September!

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23:59 UTC on 20 September 2022 is the cut-off to register for your .au direct domain. The .au domain is the new, general purpose, shorter Australian domain name option.

If you do not register the direct match of your existing domain for the direct .au domain, you risk your brand equity being consumed by someone else, rivals redirecting your clients to their products and services, or cybercriminals impersonating your business. The opening of the new .au domain is the single biggest shift in Australian cyber real estate in decades and the risks for business are high.
 
If you are registering:
  • an exact match of your existing domain name, for example .com.au or net.au; and
  • you held your domain name prior to 24 March 2022
 
then you have priority access – only up until 23:59 UTC on 20 September 2022 (9:59am AEST on 21 September). Once this deadline has passed, the .au direct domain name will be available to anyone with a connection to Australia to register from 21:00 UTC 3 October 2022 (8:00am AEDT 4 Oct).
 
While you can register for the .au domain through any number of providers, the most efficient method is to utilise your existing provider. To do this, you will need your domain’s access information. If these details cannot be found, for example, the details were held by a former staff member, it can take some time to recover them so do not leave the registration process until the last minute!

 

Budget 2022-23

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Click here to download the Budget 2022-23

 

NSW GOVERNMENT – DISASTER RECOVERY ASSISTANCE

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The NSW Government has released a range of support options for NSW flood affected residents.

Please see details below:

Housing support

Rental support
The Rental Support scheme will provide up to 16 weeks of financial rental support to flood victims in temporary accommodation. Total funding available will depend on the number of people per household including children.

To be notified when more information is available, please register your details or call 13 77 88.

Temporary housing support
If you’re staying with friends and family right now but will need accommodation in the coming weeks (and months), the Temporary Housing Support Package can assist with:

  • Temporary accommodation pods for rural land holders
  • Motorhomes for people who are currently living in evacuation centres, or in hotels/motels
  • Temporary accommodation in recreation clubs
  • Airbnb hosts offering low cost or free accommodation will be allocated to people who are being assisted by the Australian Red Cross.
To be notified when more information is available, please register your details or call 13 77 88.

Financial support

Immediate financial help and payments are available to people living in disaster declared areas.

  • Disaster Recovery Payment – $1,000 per eligible adult and $400 per eligible child if your home has been severely damaged or destroyed, or you’ve been seriously injured. Lismore, Richmond Valley and Clarence Valley LGAs receive an additional two disaster weekly payments.
  • Disaster Recovery Allowance – short-term income assistance (up to 13 weeks) if you’ve lost income as a direct result of the floods.
  • Disaster Relief Grant – provided to help people recover from the effects of a disaster and re-establish basic standard of living.
  • Stamp duty relief – on the replacement of privately owned, insured motor vehicles written off due to loss caused by a declared disaster.
Landlords and tenants’ rights in a flood

If you live in or lease a rental property that has been affected by a flood or storm, tenants and landlords have certain rights and responsibilities relating to payment of rent, damage to belongings and urgent repairs.

Any tenancy related disputes following a natural disaster can be taken to the Tribunal.

Essentials and clean-up support

Clean-up
All flood-impacted households will receive clean-up assistance, including the removal of debris, mud and green waste. Skip bins and dump trucks will start to appear on streets. Where there are no skip bins or dump trucks available, separate waste on the kerbside until they arrive.

Cleaning up after a natural disaster can be dangerous – here’s some advice on how to clean up safely and deal with hazardous waste.

Please contact your client manager should you require further information.

ATO ATTACKS DISCRETIONARY TRUST DISTRIBUTIONS & INCOME SPLITTING

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WHAT DO I NEED TO KNOW?

The ATO has recently announced a major focus on Section 100A of the tax law – the area of the law focusing on trust distributions to associated family members, commonly referred to as splitting income among the family.

Specifically, the ATO will focus its attention on cases where a trust distribution is made to a family member, for the primary purpose of capturing a lower tax bracket.

30 June 2022 is expected to be transitional period, with the proposals to be implemented from 1 July 2022.  There are sections of the ruling that can apply retrospectively, so it is important to be reviewing your position sooner rather than later.

FOR EXAMPLE:

  • If a trust distributes all of its income to the husband and wife, who use this money to pay household expenses, the ATO will unlikely see any issue.
  • If, however, the trust distributes its income to adult children, due to the fact they have minimal other income, and the children gift this money back to their parents, there will likely be an issue.
WHAT ACTION DO I NEED TO TAKE?

At this stage, the ruling is currently open for consultation, and we expect further discussion and announcements over the coming weeks and months.  We will keep you updated with changes as they occur.

If you are a client of HYD Advisory, your Client Manager will be covering this topic with you in your next catch up.

We will need to review your specific circumstances and cover alternative tax minimisation strategies that may be available to you (for example, using a “bucket company” with various classes of shares issued to family members) to allow you to split income with family members.

Business & Profit Matters Newsletter – Summer 2022

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Click here to download the Business & Profit Matters Newsletter – Summer 2022