October 2024 E News
As we navigate a complex economic and geopolitical landscape, it's essential to stay informed about the latest market trends and regulatory changes. In this newsletter, we delve into recent market developments, FBT considerations for end-of-year celebrations, and potential funding opportunities for innovative businesses. We also highlight upcoming events and important lodgement dates to help you stay on top of your business obligations.
Amid the dynamic shifts in both domestic and international landscapes, we present a comprehensive overview of recent developments. While the past few months appeared promising in terms of returns, suggesting a sense of calm, the reality paints a different picture. The period was marked by heightened market volatility, a complex array of economic indicators, and escalating political and geopolitical uncertainties. Notably, yield-sensitive growth markets such as listed property and infrastructure, along with Australian equities bolstered by a strengthening Australian dollar, delivered robust performance. These assets thrived on central bank rate cuts globally and decreasing bond yields. Bonds also saw significant gains during the quarter due to concerns over economic prospects and subsequent central bank interventions that drove yields lower.
As we kick off the holiday season, you may be gearing up to organise a celebration with your team. Before securing a restaurant or event venue, it's essential to determine if the benefits you offer your employees are classified as entertainment-related and could incur fringe benefits tax (FBT). Factors influencing this include: the amount spent per employee, the location and timing of your event, who will be in attendance - solely employees or also partners, clients, and suppliers, as well as the value and type of gifts provided. If entertainment-related fringe benefits are provided, ensure proper record-keeping to calculate their taxable value accurately. Understanding how FBT operates before offering additional perks is crucial to avoid unexpected FBT obligations. Follow the steps below to assess FBT on food, beverages, and recreational activities provided to employees.
If you're registered for GST and fuel tax credits, you may be eligible to claim credits for the excise duty paid on fuel used in your business. This includes fuel used in machinery, plant, equipment, and eligible vehicles. However, it's important to note that fuel used in vehicles on public roads is generally not eligible. Additionally, while you may be able to claim credits for gaseous fuels like LPG, LNG, and CNG, specific conditions apply. To ensure accurate claims, it's crucial to maintain detailed records and apportion fuel usage correctly. The fuel tax credit calculator can help you determine the correct rates and calculate your claim, simplifying the process and ensuring you're maximising your business's financial benefits.
Funding opportunities are now available to propel businesses forward in their innovation journey! The MVP Ventures Program offers grants ranging from $25,000 to $50,000 to support projects at Technology Readiness Levels (TRL) 3 to 9. Successful completion opens doors for additional funding rounds, allowing businesses to advance along the TRL scale and secure significant private investments. Round 2 applications open on July 1, 2024, so mark your calendars! Don't miss this chance to accelerate your innovative products and processes towards commercial success in NSW.
Join a free webinar on Thursday, 7 November at 9 AM AEST to discover the secrets to overcoming the common challenges faced by business owners and unlock the potential for a more fulfilling and successful business journey. Learn practical strategies to reduce stress, improve efficiency, and achieve your business goals. Expert presenter, Geoff Silk, will share valuable insights and actionable advice based on years of experience working with businesses of all sizes. This webinar is designed to empower you to take control of your business and achieve lasting success.
The Northern Rivers holds regular Community Events. See what's on and keep up to date on all the fantastic opportunities available and help to support local. There is plenty to do.
A reminder, there are some important lodgement dates to note this month.
The WD Nicholls Team
Given the ever changing environment at home and abroad here is a summary of some of the moving parts. The last 3 to 4 months from a returns view point was a very positive time and it would seem there is “nothing to be concerned with”. This couldn’t be further from the truth given how action-packed the period was with bursts of heightened market volatility, a perplexing mix of economic data, and rising political and geopolitical risks.
Markets
The strongest returns came from yield (interest rate) sensitive growth markets like listed property and infrastructure, and Australian equities which were also assisted by a rising Australian dollar. These asset classes benefited from a combination of central bank rate cuts (abroad) and declining bond yields. Relatively strong returns from bonds in the quarter, benefiting firstly from concerns regarding the economic outlook, and then from central bank rate cuts, both of which put downward pressure on bond yields and hence an uplift in capital values (growth).
Within equity markets, we saw a surprising change in leadership with Chinese equities rocketing higher on much needed and eagerly awaited Chinese government and central bank stimulus.
Other market moves largely added confusion to the mix. The Australian dollar rose strongly against the USD, largely driven by the latter falling on concerns regarding the US economic outlook and the outsized initial rate cut from the Fed. Oil prices fell sharply in the period, they seemingly appear to better price recession risks than both equity and bond markets have been. Even a widening of the conflict in the Middle East wasn’t enough to arrest the decline in oil price. Increasingly noticed and watched gold prices rose in the quarter, likely pricing in concerns regarding potentially stickier inflation and a weaker economic and hence lower bond yield environment.
All this played out in a backdrop where the economic picture and outlook became increasingly obfuscated with different asset classes pricing in or exhibiting different economic expectations. A couple of sharp and sudden changes in expectations in the quarter saw some rather large single day falls in equity markets, with US tech front and centre, which provided proof points of the lofty expectations already baked into asset prices and little sneak-peeks at what happens when markets price risks correctly.
Economies
The June quarter Australian inflation print showed some inroads being made, with subsequent data resulting in the RBA taking further rate hikes off the table, but with underlying inflation still too high for rate cuts. US inflation, particularly headline inflation, saw growth slow significantly in the period satisfying the Fed enough to cut rates by a large 0.50%! Interesting move with core inflation above target, particularly with inflation re-accelerating slightly at the back end of the quarter.
In one of the oddest central bank decisions in recent history, the US Fed cut rates by what has historically been seen as an emergency level cut – 0.50%. All whilst communicating that the economy remains strong, labour markets tight, and core inflation still well above target. The move caused confusion amongst non-equity investors (bonds and commodities) whilst equity investors took the champagne and didn’t look back.
A “soft-landing” remained consensus, but we did see markets attempt to price in both hard-landing and no-landing scenarios in the period, with investors realising that a soft-landing scenario isn’t a forgone conclusion. Headline economic data remained robust in most jurisdictions (outside of China) but underlying and less well followed data did start to show signs of weakness in the period – something we’ve been watching closely as headline data generally operates with quite a considerable lag and is subject to large revisions.
This was true on the Australian economic front – unemployment still very low but jobs growth patchy and quite large declines in job ads; healthy house price growth and anaemic bad debts, but signs of some weakness in NSW and particularly VIC, with increasing supply of existing homes for sale, whilst rental markets remained very tight; cumulative household savings high, but household savings ratios moved below pre-covid levels and retail sales growth continued to slow. The same was roughly true of the US economic backdrop.
China economic woes became significantly more apparent in the quarter forcing Chinese officials to act. The household remains pained by the significant falls in house prices, with most Chinese household wealth tied up in property, maintaining downward pressure on both confidence and sentiment.
Politics
Plenty of action on the political and geopolitical front, with the US election nearing, a stalemate in French elections (which markets applauded), escalations on the conflict in the Middle East and Western trade tensions with China (chips and electric vehicles). President Joe Biden succumbed to pressure from within, pulling out of the Presidential race with the Democrat Party anointing sitting VP Kamala Harris as their primary candidate. Former President Trump withstood two assassination attempts on his life, whilst both Harris and Trump announced their VP choices and hit the campaign trail. Tensions in the Middle East rose as the Irael / Hamas war extended to Yemen, then Iran, and more recently Lebanon. Markets stood up and took notice, whilst oil prices oddly remained weak in the period.
Looking forward as you can see there are many moving parts of which all of them can have varying impacts on markets.
The returns up until the end of October are:
With the holiday season kicking off, you may be planning a celebration with your staff.
Before you hire a restaurant or book an event, make sure you work out if the benefits you provide your employees are considered entertainment related and if they’ll attract fringe benefits tax (FBT).
This will depend on:
the amount you spend on each employee
when and where your celebration is held
who attends - is it just employees? Or are partners, clients and suppliers also invited?
the value and type of gifts you provide.
If you do provide entertainment-related fringe benefits, keep the right records to support this so you can calculate their taxable value.
It's important to get on top of how FBT works before you provide perks and extras. Otherwise, you may end up with an unexpected FBT liability.
Use these steps to work out the FBT on food, drink and recreation you provide to employees.
Step 1: Determine if the food, drink or recreation is considered entertainment
Whether you're in business, a not-for-profit organisation or government, you first need to work out if food, drink or recreation you provide is considered entertainment.
Step 2: Determine if the entertainment is a tax-exempt body entertainment fringe benefit
This only affects not-for-profit and government organisations.
A tax-exempt body entertainment fringe benefit is a non-deductible entertainment benefit provided to employees (or their associates) by an income tax exempt organisation.
Step 3: Check if the benefit is exempt from FBT
Check the exemptions and concessions for:
Step 4: Check if you can reduce your FBT liability
There are several ways you can reduce your FBT. For example, you can provide a cash bonus instead of a benefit, or your employee might contribute to the cost of the entertainment.
Step 5: Calculate the taxable value of the entertainment
Before you can work out any FBT liability, you need to calculate the taxable value of entertainment-related benefits.
Step 6: Lodge, report and pay FBT
If you have an FBT liability, you will need to:
check if you should report the fringe benefit in your employee's payment information through Single Touch Payroll (or on your employee’s payment summary).
Claiming tax deductions and GST credits
You can generally claim an income tax deduction and GST credits for the cost of providing entertainment that is a fringe benefit. This does not apply to exempt benefits because they are not fringe benefits.
If you can claim GST credits, you claim the GST-exclusive fringe benefit amount as an income tax deduction.
If you can't claim GST credits, you claim the whole fringe benefit amount as an income tax deduction.
Income tax exempt organisations do not claim income tax deductions.
Entertainment benefits provided to people other than employees or their associates (to clients for example) are not subject to FBT and are generally not income tax deductible for employers.
For more information see FBT guide: 14.15 Income tax deductibility.
Source and credit: ATO.gov.au
If you’re registered for GST and fuel tax credits, you can claim credits for the excise duty paid on fuel used in eligible business activities.
This includes fuel used in:
machinery, plant and equipment
light vehicles travelling on private roads or off public roads (you can't claim for fuel used on public roads)
heavy vehicles.
Remember to check that you’re only claiming for eligible fuels. For example, diesel exhaust fluids (such as Adblue or other additives) aren’t taxable fuels – they don’t attract excise duty so you can’t claim credits for them. Eligible fuels include:
Liquid fuels
Eligible liquid fuels include:
Petrol – for example, unleaded, premium unleaded and high octane
diesel
other fuels such as
fuel oil – a heavier petroleum product used in industrial furnaces, ships and locomotives
kerosene
mineral turpentine
white spirit
toluene
heating oil
some solvents.
You can claim fuel tax credits for fuel blends. The rate you can claim depends on the amount of biodiesel or ethanol in each blend.
For some business activities (for example, packaging or fuel used for domestic home heating), you can only claim for certain taxable fuels.
Fuel used in aircraft
You cannot claim fuel tax credits for aviation fuels (aviation gasoline and aviation kerosene).
However, if you use diesel or petrol in an aircraft as part of your business activities, there may be circumstances where you can claim fuel tax credits. For example, if you are registered for GST and can provide details that the fuel was not entered into home consumption as fuel for use in an aircraft at the time of purchase, then you're likely entitled to claim.
Gaseous fuels
You may be able to claim fuel tax credits for eligible gaseous fuels used in your business activities.
Gaseous fuels are:
liquefied petroleum gas (LPG)
liquefied natural gas (LNG)
compressed natural gas (CNG).
Gaseous fuels are sold as either:
transport gaseous fuels inclusive of excise or customs duty in the price (duty paid)
non-transport gaseous fuels exclusive of excise or customs duty in the price (not duty paid).
Transport gaseous fuels (duty paid)
You can claim fuel tax credits on transport gaseous fuels because duty has been paid on them.
Transport gaseous fuels include:
LPG or LNG intended for use in an internal combustion engine of a motor vehicle or vessel (boat), either directly or by filling another tank connected to such an engine
CNG that is imported or compressed for use as a fuel in a motor vehicle
all gaseous fuels for mixed use (that is, both transport and non-transport use) or when the end use is unknown.
Transport gaseous fuels are not limited to use in transport activities. They can also be used in all other business activities that are undertaken off a public road.
When claiming fuel tax credits for gaseous fuels, you need to keep records to substantiate that fuel tax (excise duty) has been paid on the fuel.
Non-transport gaseous fuels (not duty paid)
Non-transport gaseous fuels that are not duty paid are not eligible for fuel tax credits. In other words, you can't claim fuel tax credits for them.
Non-transport gaseous fuels include:
LPG and LNG delivered only for use other than in an internal combustion engine of a motor vehicle or vessel (for example, in residential heating or burner applications)
LPG delivered for use in forklifts
CNG imported or compressed only for use in forklifts or not for use as a fuel in a motor vehicle
CNG compressed at a residential premises (including for use in a motor vehicle) using equipment capable of compression at a rate not more than 10kg of natural gas per hour and not for sale.
If you have been supplied bulk non-transport LPG that hasn't had excise or customs duty paid on it (such as a delivery of containers of 210 kg capacity or more) the tax invoice will include the following:
'Not to be used, or supplied, for transport use. Penalties apply.'
A supplier does not need to supply a notice when the LPG is supplied:
in or into a container of 210 kgs capacity or less
to residential premises and is not for business use.
You claim fuel tax credits by completing the label 7D on your BAS.
The rate you use depends on:
when you acquired the fuel (not when you use it)
the type of fuel
the activities it’s used for.
Rates changed on 1 July and 5 August so the fuel tax credit calculator is an easy way to ensure you’re applying the correct rates. Just answer a few questions and it’ll tell you the amounts to record on your BAS label.
You need to apportion your fuel so you’re only claiming the fuel tax credits you’re entitled to. You need to keep complete records to support your claim and methodology – regardless of the method you use.
Read the ATO's tips to get your fuel tax credits right to find out more.
Source and credit: ATO.gov.au
Funding is available to help businesses progress their new products or processes along the Technology Readiness Level (TRL) scale and attract large-scale private investment.
Businesses who successfully complete projects funded under the program are permitted to reapply for additional funding to make further progress along the TRL scale.
Key information
Status: Open
Grant amount: From $25,000 to $50,000
Applications Round 2 open: 1 July 2024
Applications Round 2 close: 5pm AEDT, Friday 28 February 2025 (or until funding is exhausted, whichever occurs first)
Program guidelines
The objective of the MVP Ventures Program is to:
support businesses throughout the pre-market development and commercialisation pathway of their innovative products in NSW
attract and retain commercialisation activities in NSW
target new products within Technology Readiness Level (TRL) 3 to 9 to help them move along the TRL scale and enable them to attract large-scale private investment.
The MVP Ventures Program will support businesses throughout their commercialisation journey. Innovative firms who successfully complete projects funded under the Program are permitted to reapply for additional funding to make further progress along the Technology Readiness Level (TRL) scale.
The NSW Government will provide up to $3 million per annum for the Program to 2027.
This program is administered by Investment NSW.
Eligibility
To be eligible to apply, your business must:
have an active Australian Business Number (ABN)
be non-tax exempt
be headquartered in NSW
have an account with an Australian financial institution
be a company incorporated in Australia
hold intellectual property (IP) or rights to commercialise
have an aggregated turnover that is no more than A$1 million for each of the three financial years prior to the lodgement of your application; and
have no more than a total of 20 FTE employees (including Founders).
To be eligible, your project must:
be related to the pre-market development and commercialisation pathway of your product
involve progressing your product along the Technology Readiness Level (TRL) scale between 3 and 9
be aligned to and marketed within one of the following NSW Government Industry Development Frameworke priority industries
have secured a minimum 50% cash contribution (no in-kind) for the project
be completed within 12 months of funding, minimum project period is 3 months
undertake funded activities in NSW
demonstrate why sufficient funding for the entire project cannot be accessed from alternative sources and that the project would not proceed in NSW without government support
include only Eligible Expenditure.
For detailed information on program eligibility and assessment criteria please refer to the guidelines.
Application process
The Program has a two-stage application process, consisting of an Expression of Interest (EOI) and a detailed application. Applications will be considered on a non-competitive basis against the eligibility and assessment criteria and will be assessed in the order in which they are received.
Expression of Interest
To apply, you must:
provide all the information requested, including supporting documentation, in line with the instructions provided within the form
meet all the eligibility and assessment criteria
submit your application by the key dates.
The following documents are to be provided with your EOI application:
an innovation pitch clearly demonstrating how your product meets the innovation criteria only, pitch can be up to 6 slides, online video (max 2 minutes) or 6-page document
a completed Accountant Declaration and financial statements including profit and loss to evidence financial turnover and FTE
a completed Business Canvas
To apply click the link below.
Source and credit: Business.gov.au
FREE WEBINAR Thursday 7 November 9:00 AM - 11:00 AM AEST
Where
Online.
When
Thursday, 7 November 2024, 9:00 am - 11:00 am AEST.
The Presenter
Geoff Silk - Geoff Silk is a businessman and coach who provides business advice based on many years of experience working with new, developing and established businesses. He interacts diligently with business owners selling products and/or services, to achieve their aspirations and goals. His pragmatic approach has helped hundreds of businesses to flourish and perform successfully.
About
This webinar opens with insights on the reasons why business owners lose sleep at night or experience stress and anxiety in their waking hours. It identifies what drives entrepreneurs and motivated business people to face the challenges of owning and running an enterprise rather than being an employee.
This webinar uncovers the key business challenges and stress points in business and then identifies solutions, work-arounds and revised practices to remove or reduce the negative effects for owners. Attendees will learn that the challenges of business can be cathartic and, if approached positively with energy and commitment, can be inspiring and rewarding.
By the close of the webinar, attendees will be able to assess whether their challenges are unique or they align with their contemporaries in business. They should feel fortified with new resolve and equipped with approaches to counter the issues confronting their businesses. Attendees will feel confident that they have the tools to minimise stress and to enjoy the rewards of running a successful business.
Learning Outcomes
A reminder of the responsibilities they must take on to run their businesses successfully.
A review of the most common business challenges that create stress.
Remedies to effectively combat the challenges of running a business and enable business owners to feel in control of their destinies.
Who is this for?
This webinar is aimed at small businesses throughout Sydney, and has a capacity to host up to 50 people.
This webinar is for business owners who have established high-needs businesses.
This webinar will take place on Zoom.
Participation in this live Zoom session will count towards your allocated Business Connect hours. Customers can access up to 8 hours of free support per financial year, which includes business advice sessions and events.
This event will be delivered by Realise Business, an approved independent provider for Service NSW Business Connect.
To register your interest click the link below.
Source and credit: Business.gov.au
We always like to support our locals! Here are some community events happening this month (in date order).
Bangalow Farmers Market dates on Saturday's, 2, 9, 16, 23, 30 November 2024 | 7:00 AM to 11:00 AM
Discover the Heart of Local Food at Bangalow Farmers Market Every Saturday morning from 7:00 am - 11:00 am, the Bangalow Hotel carpark transforms into a vibrant hub of local food. Our farmers offer a bountiful harvest of fresh produce, artisan goods, and more. Meet the farmers, learn about sustainable practices, and support your local community. Visit Bangalow Farmers Market and experience the true essence of local food.
Location: Behind Bangalow Hotel, 1 Byron Street, Bangalow
Brunswick Heads Market next date on Saturday 2 November 2024 | 8:00 AM to 2:00 PM
The Brunswick Heads Monthly Market is held in the Memorial Park on the first Saturday of each month 8:00 am - 2:00 pm. The market is located on the riverbank, and is within easy walking distance of the cafes and shops.
The Brunswick Heads Markets offer a mix of locally made and imported goods, delicious hot food, and you can also pick up a few fresh groceries. The Bruns markets are a perfect excuse to spend the day exploring the town and the picturesque river and beaches.
Location: Memorial Park, 11 Fawcett Street, Brunswick Heads
Byron Bay Community Market next date is Sunday, 3 November 2024 | 8:00 AM to 3:00 PM
The Byron Bay Community Market hosts an eclectic collection of market stalls that showcase what Byron has to offer.
The market is held from 8:00 am to 3:00 pm on the 1st Sunday of every month.
Road closures and traffic changes on market day
Jonson Street is closed to traffic at the corner of Byron and Marvel Streets from 5am to 5pm.
Traffic is diverted via Fletcher Street.
The Lawson Street South carpark is closed from 5am to 5pm.
There may be traffic delays are on Lawson Street between the Shirley Street and Jonson Street roundabouts between 6am to 8am and 3pm to 5.30pm.
The railway carpark is open under traffic control via the laneway on Jonson Street.
Traffic controllers will be in place on market day.
Location: Byron Bay CBD, Railway Park, Jonson Street, Byron Bay
Council Planning Meeting next date is Thursday, 14 November 2024 | 11:00 AM to 6:00 PM
Council meetings are held in the Chambers.
Go to How to join the meeting for ways you can participate in the meeting.
A livestream is available to watch online.
Questions about the meeting?
Phone: 02 6626 7051
Location: Council Chambers, 70 Station Street, Mullumbimby
Mullumbimby Community Market next date is Saturday, 16 November 2024 | 8:00 AM to 2:00 PM
The Mullumbimby Community Market is held on the third Saturday of each month from 8:00 am to 2:00 pm.
Established in 1989, the Mullumbimby market is more than just a place to shop. It's a vibrant community gathering with live music, delicious food, and a diverse range of local stalls. From artisan goods to eco-products, there's something for everyone. Enjoy the friendly atmosphere and unique finds at this market.
Location: Corner of Stuarts and Myocum Streets, Mullumbimby
Council ordinary meeting next date is Thursday, 28 November 2024 | 9:00 AM to 6:00 PM
Council meetings are held in the Chambers.
Go to How to join the meeting for ways you can participate in the meeting.
A livestream is available to watch online.
Questions about the meeting?
Phone: 02 6626 7051
Location: Council Chambers, 70 Station Street, Mullumbimby
Source and credit: Byron.nsw.gov.au/Recreation-Culture/Events-Venues/Whats-On
If you wish to arrange a telephone appointment or zoom meeting with one of our team please contact our office either by telephone or email.
Key lodgment and payment dates for business
11 November
Activity statements
Quarter 1 (July–September) activity statements lodged electronically – final date for lodgment and paymentrefer to the two week lodgment concession for information on your eligibility for this later due date
.21 November
Activity statements
Lodge and pay October monthly activity statements.
28 November
Superannuation
Lodge and pay quarter 1 (1 July–30 September) Superannuation guarantee charge statement – quarterly if you did not pay your contributions on time.You can choose to offset contributions you've paid late to a fund for each employee against the super guarantee charge for the quarter for those employees.You cannot claim an income tax deduction for the super guarantee charge.
Source and credit: ATO.gov.au
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