Update 1 April 2023
In our March news edition, we share some interesting market insights and the impact of the recent USA bank collapse. There is a Super Guarantee deadline reminder, as well as details on a free webinar for small business start-ups and a grant opportunity for tourism operators in NSW.
Tony's market update provides the impact and outlook of the failure of Silicon Valley Bank collapse followed by the Credit Suisse takeover by UBS. These 2 events resulted in markets falling all over the world with concerns about all banking institutions' liquidity. Market returns for March are also provided.
Super guarantee (SG) contributions for the March quarter are due by 28 April, 2023. Remember, the ATO only considers an employee's super contribution as 'paid' on the date it's received by the super fund. Funds must receive your payments on or before the quarterly due date.
The NSW Government announced $3.5 million in Nature-Based Visitor Experience Development grants to support the development of new and enhanced nature-based tourism attractions and experiences in regional NSW. Funding of between $100,000 and $250,000 excluding GST is available, per applicant, on a matched dollar-for-dollar basis for eligible project costs. See below for how to apply.
A free 90-minute webinar for business start-ups is an exciting milestone. This workshop helps emerging entrepreneurs to be aware, upfront, of what a transition to self-employment and owning a business involves. Learn how to bring focus to the business concept for strategic advantage. Understand how to identify a clear vision and key objectives for your new business. Have clarity around what are your core products or services. Register now for the session 1:00 pm (AEST) Tuesday 4 April 2023.
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 are some important lodgement dates to note as well as office closures over April.
Our office will be closed over Easter. We wanted to wish you and your loved ones a very safe, peaceful, and relaxing holiday.
The WD Nicholls Team
Around the 10th of March, we witnessed the failure of Silicon Valley Bank collapse followed by the Credit Suisse takeover by UBS. These 2 events resulted in markets falling all over the world with concerns about all banking institutions' liquidity. The US market fell by 4.49%, Australia fell by 5.6% and Europe fell by 5.24%. The Australian Bank index fell by 6.86% in 2 weeks. Given our banks are some of the best capitalised institutions in the world, according to Morgan Stanley they have ranked our top 4 banks as the four best capitalised banks in the world.
So what happened to Silicon Valley Bank (SVB)?
The timeline of events is roughly as follows:
March 8 – SVB sold about US$21 billion of securities (largely government bonds) from its portfolio, resulting in a US$1.8 billion mark-to-market loss. The company simultaneously tried to raise equity to fill the hole caused by the trading losses. Capital raise failed.
March 9 – SVB shares fall by more than 40% after the company announced it had sold all of the available-for-sale securities in its portfolios. Whispers that SVB management is attempting to sell the company.
March 10 – prominent venture capitalists tell businesses to withdraw money from the bank. Shares in SVB halted trading. US Treasury comments they’re monitoring developments carefully. California regulator shuts down the bank and appoints the Federal Deposit Insurance Corp (FDIC) as the receiver - 2nd largest bank failure in US history.
March 11-12 – US Treasury says they’re not considering a bail-out. FDIC begins to auction SVB for immediate sale, unsure if they will find a buyer. The Federal Reserve (Fed) and the FDIC started considering a bailout.
March 13 – the US Treasury, the Fed, and the FDIC announces all deposit holders will be made good (even on amounts above $250k). The same will apply to New York Bank-Signature Bank. A liquidity facility was opened by the Fed for banks who might need it to effectively remove the risk of other bank runs.
What got SVB into trouble?
Concentration in one industry – ie. technology. Under industry stress given widespread layoffs, share price falls, and fall in crypto.
Didn’t hedge the interest rate risk on their books, possibly because less than 50% of its deposits (very low) were lent out. The rest were invested.
Fed hiking rates caused losses in their investment book (mostly government bonds).
Whispers of investment losses and capital raise spooked deposit holders.
Has this happened before?
US banks fail all the time given the significant competition encouraged in their market (vs Australia’s Big 4). e.g., there are over 4,800 banks in the US right now, down from over 8,000 banks pre-GFC, with approximately 7 US banks going under on average each year since 2012.
What have authorities done to stem the risk?
Important to note, the following has been resolved:
The FDIC is insuring all SVB deposits (and that of another bank – Signature Bank) – immediate payment of insured deposits (ie. up to US$250k), and payment within a week to all uninsured depositors (ie. amounts over US$250k).
The Fed has opened a short-term funding facility for unlimited amounts (held against eligible collateral - using the par value of the collateral, rather than the mark-to-market value) for 1 year to provide liquidity to banks for calls on deposits
SVB being auctioned off to the bigger banks
SVB shareholders and unsecured creditors will not be protected.
With all this action in the middle of March it does seem market banking concerns have started to ease.
With regard to the month of March this is the round-up of market returns:
Super guarantee (SG) contributions for the March quarter are due by 28 April, 2023.
Remember, the ATO only considers an employee's super contribution as 'paid' on the date it's received by the super fund. Funds must receive your payments on or before the quarterly due date. You need to make super contributions to eligible employees' super funds regardless of how much the employee has earned. However, employees who are under 18 need to work more than 30 hours a week to be eligible. Use the SG eligibility tool to work out if you have to pay super for your employees.
From 1 July 2023 the SG rate will increase from 10.5% to 11%. The new rate applies to payments made to workers on or after 1 July.
If you don’t pay the correct amount of SG in full, on time, or to the right fund you will need to pay the super guarantee charge (SGC) and:
lodge an SGC statement to the ATO by 28 May to disclose any missed or late super
pay the SGC to the ATO.
The penalty can be up to 200% of the SGC if you don't provide an SGC statement when required.
If your employees believe their SG has been missed, paid late, is the incorrect amount or allocated to the incorrect super fund, they can contact the ATO and make an employee notification (EN). They review all ENs, and where unpaid super is discovered, they will pursue outstanding amounts, and may also notify other impacted employees.
Source and credit: ATO.gov.au
APPLICATIONS CLOSE MONDAY, 22 MAY 2023 AT 11.59 PM
What do you get?
Funding of between $100,000 and $250,000.
Who is this for?
Tourism operators based and operating in regional NSW.
Overview
This program aims to help tourism operators develop nature-based attractions and experiences in regional NSW.
Examples of eligible projects include, but are not limited to:
visitor attractions delivering new or upgraded visitor experiences focusing on the natural elements of the attraction and area
on-property storage, end-of-trip and bike maintenance facilities in proximity to rail trails and mountain bike parks
storage facilities for equipment related to walking and cycling experiences, such as transfer vehicle garaging or kayak storage
post-experience wellness facilities for cyclists and walkers e.g. float baths
viewing platforms and walkways e.g. for wetland and wildlife viewing
facilities, structures and observatories for stargazing experiences
nature accommodation including caravan parks cabins and glamping accommodation in a nature setting.
Check if you can apply
New or existing tour, accommodation or attraction providers based and operating in regional NSW, and local councils and landholders can apply. All applicants must be registered for goods and services tax (GST).
For more click the link below.
Source and credit: DestinationNSW.com.au
This FREE webinar provides people starting a small business in NSW with all the tools to get their business off the ground.
Come along to this step-by-step guide to starting a business workshop, which is ideal for aspiring business owners who haven’t already applied for an Australian business number (ABN).
It is still useful for existing businesses or those early in the start-up process to ensure they have ticked all the basics to setting up their business right.
What you will learn:
all the basics of starting a business
goods and services tax (GST), tax and BAS basics
business Planning 101 and how to start your business.
PLEASE NOTE: This webinar is specifically tailored for New South Wales businesses.
Places fill quickly. Register now for the session 1:00 pm - 2.30 pm (AEST) Tuesday 4 April 2023 below.
Speaker: Kevin Bascomb
Event sponsor: NSW Government
Event organiser: Enterprise Plus
Click the link below to find out more and register.
Source and credit: Business.gov.au
We always like to support our locals! Here are some community events happening this month (in date order).
Byron Community Market next date is Sunday, 2 April 2023 | 08:00 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.
Location: in the Byron Bay CBD, spreads along the rail corridor, Railway Park, and onto Jonson Street.
Mullumbimby Community Market next date is Saturday, 15 April 2023 | 08:00 AM to 2:00 PM
The Mullumbimby Community Market is held on the third Saturday of each month from 8 am to 2 pm.
Location: Corner of Stuarts and Myocum Streets, Mullumbimby
Bangalow Community Market next date is Sunday, 23 April 2023 | 08:00 AM to 3:00 PM
The Bangalow Market Day is a treat for day trippers, a retreat from the city and the rush of the Gold Coast. Bangalow is a window into another world.
The market is held from 8:00 am to 3:00 pm on the 4th Sunday of every month.
Location: Station Street, Bangalow
If you want to know more about what is going on in your local community, click the link below.
Source and credit: Byron.nsw.gov.au
Our office will be closed on the following dates;
EASTER Good Friday, 7 April and Monday, 10 April
ANZAC DAY Tuesday, 25 April
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 lodgement and payment dates for business.
21 April 2023
Activity statements March monthly activity statements – final date for lodgment and payment. Quarter 3 (January–March) PAYG instalment activity statement for head companies of consolidated groups – final date for lodgment and payment.
28 April 2023
Activity statements
Quarter 3 (January–March) activity statements – final date for lodgment and payment.
PAYG instalments
Quarter 3 (January–March) instalment notices (forms R and T) – final date for payment and, if varying the instalment amount, lodgment.
GST instalments
Quarter 3 (January–March) instalment notices (forms S and T) – final date for payment and, if varying the instalment amount, lodgment.
Superannuation
Due date for super guarantee contributions, for quarter 3, (January–March) – contributions to be made to the fund by this date.
If you do not pay minimum super contributions for quarter 3 by this date, you must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly with the ATO by 28 May. The super guarantee charge is not tax deductible.
28 April 2023
TFN report
Quarter 3 (January–March) TFN report for closely held trusts for TFNs quoted to a trustee by beneficiaries – final date for lodgment.
