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Considering their effect on reducing fossil fuel emissions, electric vehicles are becoming more available around the world and the Australian government is looking to increase their uptake here in our country.
As it is, just 1.5 per cent of cars sold in Australia are electric or plug-in hybrid compared with 17 per cent in the UK and 85 per cent in Norway. It’s clear that we can certainly build on the number of Aussies going electric and with the huge numbers of us saying we’d consider buying electric for our next car, an incentive may just be all we need to make it happen.
With no electric cars available in Australia for under$40,000 and just five available for under $60,000, the cost to go electric is a major consideration when you compare pricing elsewhere. As an example there are more than 25 electric models available in the UK for under AU$60,000!
It’s with this in mind that at a National Press Club address earlier this year, The Minister for Industry, Chris Bowen announced that theGovernment will introduce concessions for Electric Vehicles effective from 1July 2022 to make them more affordable for Australians (while reducing climate emissions).
• Import Tariff reduction of 5% on electric vehicles costing less than $77,565; and
• FBT exemption for electric vehicles that are provided through work for private use.
“The Electric Vehicle Council estimates that a $50,000 model (such as the Nissan Leaf) will be more than$2,000 cheaper as a result of removing the import tariff.”
“If a $50,000 model is provided through employment arrangements, Labor’s fringe benefits tax exemption will save employers up to $9,000 a year. Often FBT is passed on to employees –and those employees will benefit directly from Labor’s policy.”
The proposals would seem to be win-win for we as taxpayers, enabling us to save on tax while doing something positive for the environment.
Other positives to end-users are pretty clear, with examples like the estimates on the Nissan Leaf showing a saving of $30 per week in running and maintenance costs.
In addition, with the potential removal of FBT from electric vehicles, this could produce a significant revival in salary sacrificing of cars for employees and become a feature of tax planning going forwards.
Not only will the concessions benefit end-users, the cut-off will hopefully also encourage manufacturers to import and supply more affordable electric models in Australia, giving the industry as a whole reason to pivot slightly to meet demand.
If you’re considering your next asset purchase and would like advice on concessions like the Electric Vehicle Discount, speak with theAttune team today on 1300 866 113 or send us an email to start the conversation.
Although employee super guarantee payments may not be at the top of your list when it comes to managing your business finances, they should be very close to avoid charges and more serious issues with ongoing payment delays.
With the July 28 deadline just around the corner (consider this a reminder!), we thought we’d look at what you should do with a missed super deadline or indeed if you’ve simply paid an incorrect amount.
The penalty for late super (which also applies if you need to adjust after an incorrect payment), is called the Superannuation GuaranteeCharge (SGC) and is calculated based on how much you owe alongside the recipient’s salary. The fee includes:
• The shortfall amount (if the contribution is late OR incorrect)
• Interest of 10% per annum, and
• an administration fee of $20 per employee, per quarter
Firstly, if you realise you’ve underpaid or missed a payment, remain calm and contact the ATO once you’ve identified the issue and the details around amount(s) missed or underpaid.
If Attune act as your accountant, missing a payment like this will be very unlikely, but if you think there is an error, contact us so we can check your workings and take appropriate action with the ATO if required.
It’s important to note that if the amount is restrictive for your business, the ATO can support you with payment options within reason.
Put simply, with the Attune team on your side, you’ll be sitting pretty. But, if you’re yet to have us assist with this kind of thing here are some considerations:
Although the SGC is not tax deductible (and companyDirectors can be held personally liable for fees), there are options for offsetting late payments against the SGC, but eligibility criteria apply which is again, something we can assist you with.
If you’d like help managing your business’ super contributions or indeed your own Self Managed Super Fund, the Attune team is perfectly equipped to assist.
The entrepreneurial spirit is growing ever stronger inAustralia and whether you consider yourself one or have a killer business idea you’d like to get serious with, an accelerator (often also called an incubator)program might be just the ticket to get you really moving.
There’s quite a few accelerators that happen around the country at any time throughout the year but not all are created (or designed to be) equal.
Well in short, help push a new business (startup) forward fast. Depending on the industry, there’s usually a suite of advisors or mentors brought in to help entrepreneurs learn the ropes of building a business.
From how to structure shareholding best to attract investment, marketing tips and tech help through to setting up the appropriate forecasting documents, there’s often a lot of depth to an accelerator.
It’s important to note that some accelerators exist for specific types of businesses. As an example there’s an accelerator in its second year called Lumina-X that runs on the Gold Coast just forHealth-Tech startups.
That depends. If you’ve started a new business that could use a turbo boost or, have an idea that you’ve started work on (but isn’t quite a business yet) that could be huge, yes. An accelerator could get you going in a hurry.
Before we send you off to investigate some of the programs available in Australia, here’s what we suggest to consider before applying to one ….
Time is valuable. Time is money. If you’re spending time learning about running or growing your business instead of actually running or growing your business, what impact will that have, especially if you’re a solo founder.
Understand what you’re committing to because some accelerators will require equity in your business. The good ones will pay decent money for that equity depending on what stage you are at, but it’s worth doing a fine-tooth check on the terms.
It’s rare a founder would want to be trading “accelerator time” for equity unless it comes with incredible talent working in the business as part of that time.
As we’ve said, not all accelerators are created equal so it’s worth doing some due-diligence on any accelerator program you’re considering being involved with.
Have you heard of Y-Combinator? It’s probably the world’s most notable – it’s actually great to read the stats on the Y-Combinator website – and having it on your business’s resume can be a massive deal for investors and customers alike not to mention incredible for the health and speedy growth of your business.
With that example in mind, here’s some questions we’d suggest you ask before diving in:
1. Have you heard of the accelerator before (is itY-Combinator pedigree)?
2. What other businesses have been through it and can you ask them about their experience?
3. Who are the mentors and are they as good as they say they are?
4. What happens after the accelerator – is there alumni? Is there ongoing support?
5. What financial or in-kind benefits does it give my business (pay for equity, talent, credits for technology or other)?
6. Will it actually make my business grow faster considering the time it will require of me?
There’s no silver bullet that says an accelerator works for everyone – even if everyone could get into one. The statistics on failed startups are somewhat difficult to read about, but who’s to say an accelerator wouldn’t have made all the difference to a large portion of those that did fail?
Now that you’ve done some thinking about if an accelerator would work for your business, here are some resources that could help you find one that fits*:
Incubate: https://incubate.org.au/
Startmate: https://www.startmate.com/
The Good Incubator: https://www.goodincubator.co/
The Melbourne Accelerator Program: https://www.themap.co
Springboard: https://sb.co/
Cyrise: https://www.cyrise.co/
Cicada Innovations: https://www.cicadainnovations.com/
The Impact Accelerator: https://theimpactaccelerator.org.au/
Techstars: https://www.techstars.com/accelerators
Skalata: https://www.skalata.co/
(Energy)Lab: https://energylab.org.au/
Lumina-X: https://luminax.com.au/
Remarkable: https://remarkable.org.au/
If you’d like tailored strategic advice to help your business grow no matter where you are in your journey, speak with the Attune team today – give us a call on 1300 866 113 or send us an email to start the conversation, you won’t regret it.
*Attune Advisory is not endorsing any accelerator program or website specifically here, just providing links to help you make good, informed choices that work for you and your business.
Are you aware of the government subsidies currently available for staffing your business? Such subsidies can make extra staff a reality sooner and help you both drive growth while potentially even doing your bit for unemployment and the community at large depending on your needs.
Prior to June 2022, there was a more substantial wage subsidy on offer, but now that it’s lapsed, we’ll focus on the current scheme.We’ll briefly show you how to assess your business for eligibility, or, your eligibility as an individual looking for work, how to apply and how much is available.
We’ll begin by mentioning that the current subsidy is designed for people who have been looking for work and have been registered with an employment services provider for 12 months or more. Although this may seem limiting, don’t be disheartened… There are tens of thousands of unemployedAustralians out there with great skills, work ethic and the drive to learn and grow.
Up to $10,000 (GST inclusive) is available for new employees who are:
Up to $6,500 (GST inclusive) is available for new employees who are:
The scheme is offered through a range of initiatives for eligible candidates, including Disability Employment Services (DES),ParentsNext, and job active.
Eligible businesses can receive payments over a six-month period from employment services providers, and employers can negotiate how often payments are made (weekly, fortnightly).
It should be noted that it’s worth discussing the subsidy with the employment agency you’re engaging first, as the decision to offer a wage subsidy is at the provider’s discretion.
Wage subsidy placements can include full-time, part-time and casual employment, as long as your employees in those positions meet the agreed hours per week as set out in the wage subsidy agreement. This is important; check the commitment required at the start as some subsidies are valid for workers averaging 20 hours per week while others might be for as little as 8hours per week or full timers up to 30 hours per week.
Successful employers may also be entitled to further funding for workplace modifications for new team members, but this again is a separate matter and can depend on the employment agency involved or the employee’s needs.
Now, to be eligible for a wage subsidy, your business must:
To be eligible for a wage subsidy, your business must not:
Restart Program – up to $10,000
For people 50 years or older who have been receiving income support payments for six months or more.
Youth Wage Subsidy – up to $6,500
For people under 30 who have been receiving employment services from a provider continuously for at least six months
Youth Bonus Wage Subsidy – up to $10,000
For people between 15 & 24 who have been receiving employment services from a provider continuously for at least six months
Long Term Unemployed and Indigenous Wage Subsidy – up to$6,500
For people receiving employment services continuously for at least 12 months, or who are an Indigenous job seeker and have been receiving employment services continuously for at least six months
Parents Wage Subsidy – up to $6,500
For people receiving parenting payment or are on any income support payment if a principal carer of a child and have been receiving employment services continuously for at least six months.
People with Disability – up to $10,000
For people registered with a Disability Employment Services(DES) provider.
There’s plenty of other resources out there if you’re considering employing someone new and accessing a subsidy like these. Here’s some quick links:
• Find an employment provider: https://jobsearch.gov.au/service-providers/
• Call the government’s Employer Hotline on 13 17 15.
• Read the “How To” guide for managing subsidies: https://jobsearch.gov.au/how-to-guide#wage-subsidies
• For almost everything else, including training and traineeships: https://jobactive.gov.au/
If you’d like advice on how a new employee or indeed a subsidy like the ones above could fit with your business strategy and tax situation, speak with the Attune team today. Call us on 1300 866 113 or send us an email to start the conversation.
