Not a complete single item Blog, more of a 'things to be aware of' Blog, especially Government Grants worthy of your consideration.

Surveys

The NAB surveyed small businesses (turnover above $100,000) and found 44% don't understand the tax system (no surprise there) and more than 75% did not know all of the obligations they needed to comply with for their industry.   Almost 70% said 'too much red tape' made it hard to focus properly on their business.   XERO also did a survey and found only 50.7% of businesses had a positive cashflow in June this year, just marginally up on last year (businesses paying GST, tax, tax instalments, and super can identify with this!).

Director Identification Numbers

Even though there is too much red tape, the Government intends to 'rein in dodgy practices by rogue directors' and issue directors with a Director Identification Number (DIN).   Small Business Ombudsman Kate Carnell hopes this is not just more red tape (?).   The Government says it will be better able to track 'tax liabilities and a range of other uses' (now it becomes clear!).   One use is to stamp out phoenix companies; these shut down leaving heaps of debt but the principals/directors just restart in another entity.   There is no date given for a start, or even when legislation will be available.

In another ministerial statement, Morrison said Directors will be made personally responsible for all unpaid GST (currently only unreported PAYG Withholding and Superannuation).

Single Touch Payroll (STP)

On 1 July 2018, employers with more than 20 employees are required to report salaries and wages, PAYG Withholding, and Super electronically direct to the ATO, at the same time as payments are made.   The benefit is no end-of-year payment summaries to issue as all information has been reported every payday.

Those with less than 20 employees do not commence until 1 July 2019.

Use of STP will be mandatory, so software providers (MYOB, XERO, etc.,) will soon update their packages (and no doubt increase their subscriptions as you must use payroll software specified by the ATO).

Qld Government Grants

Most Grants are often not worth the trouble to apply.   However, there are a number worth a look.   Many of these are based on the merit of the application and the competitiveness of the business itself.

Accelerate Small Business

Turnover must be over $500,000 to apply, for up to $10,000 (matched $ for $) to engage business mentors or an advisory board for 12 months.   The business must have the potential for high growth in the next 2 years.

Innovation Connection

Turnover must be over $1.5m (less in remote areas) for new technology.   The grant is up to $50,000 (matched $ for $).

Incubator Grant

Directed towards regional development, for projects worth $20,000 or more.   It's to 'facilitate innovative start-ups'.

Digital Grant

Opens again soon.   Up to $10,000 ($ for $) for digital technology or services (including digital coaching) that will enhance the digital capability of the business and allow it to be more competitive and employ more staff.

These are just a few available.   Grants generally fall into the categories for Business Support, Innovation, Accelerating Commercialisation, Entrepreneurs, Recovery (eg., floods), and Start-ups (high growth potential).   If you'd like to see what could be possible, give us a call and we'll see what may be available (Grants come and go, some quickly).

Capital Raising & Loans

If you're looking for investors, the Early-Stage Innovation Company legislation is suitable for businesses with high growth, and allows investors to claim a tax deduction for the amount invested (up to set limits) and on sale the capital gain may be tax free for the investor.

ESIC may be more suitable for businesses than Crowd Sourced Funding.   However, if you target the right audience and the presentation is appealing, Crowd Funding may work.

There are many new lenders in the market.   These evaluate your past performance, some will do start-up and are based on your Plan and Forecasts, and lend on an 'unsecured basis' – no property but likely security over the business itself and personal guarantees.   Available for working capital, import/export, trade finance, to pay tax or super contributions.   Interest rates are higher but acceptable, fast approvals, repayments in some cases must be made over 12 months, and all sorts of terms are available.   (We've just helped a manufacturer get $250,000 to fund an increase in completed stock, for faster delivery to buyers).

All of these require a good presentation.   Happy to help if we can.