July Newsletter

Jul 1, 2021 | News

July Newsletter

As we start another Financial Year with the impacts of COVID still at the forefront of our businesses RTO Accountants would like to reassure you that we are in a better position than most to continue to provide the accounting and financial services you require. As an accounting firm that adopted cloud-based technology many years ago, we have the knowledge and expertise to ensure we can provide our services with little or no interruption due to COVID restrictions and lockdowns. We can also advise and help you to implement cloud-based systems that can streamline your business.

Business support package announced for NSW 
With the current lockdown in Sydney, the NSW Treasurer has announced a business support package.
To be eligible: 
  • Small businesses and sole traders must have fewer than 20 fill time-employees, payroll up to $1.2. million and an annual turnover of over $75,000; or
  • For business in the tourism, hospitality and accommodation sectors, they will be eligible with payrolls of up to $10 million.   
A business that meets the above eligibility will receive a payment dependant on the reduction in turnover they have suffered in comparison to a ‘similar period’ (exact criteria for what constitutes a similar period is yet to be released)

Reduction in Turnover Payment
More than 70% $10,000
More than 50% but less than 70% $7,000
More than 30% but less than 50% $5,000
A letter from the business’s accountant will be needed detailing the downturn in turnover.

Superannuation Guarantee 

The 2021 Federal Budget has maintained the legislated increase to the superannuation guarantee (SG) which will increase by 0.5% to 10% on 1 July 2021. There will be a rise of 0.5% per year thereafter until it reaches 12% by 2025.

 Year  Charge percentage
 Year starting 1 July 2020   9.5%
 Year starting 1 July 2021   10%
 Year starting 1 July 2022   10.5%
 Year starting 1 July 2023   11%
 Year starting 1 July 2024   11.5%
 Year starting on or after 1 July 2025   12%

FEE-HELP loan fee exemption extended
The 20% FEE-HELP loan fee was waived during 2020 to lessen the impact of COVID on students and providers. The government has extended this waiver until 31st December 2021. The government package also includes:

  • $26.1 million for an extra 5000 short course places in 2021-22 at non-university higher education providers
  • $9.4 million for the Innovation Fund to help providers grow offshore and online delivery. Applications for grants are now open.
  • $17.7 million to further extend the pause on fees and charges from CRICOS (Commonwealth Register of Institutions and Courses for Overseas Students), TEQSA (Tertiary Education Quality and Standards Agency), and ASQA (Australian Skills Quality Authority) until 31 December 2021.