The Federal Government has already made more than 80 changes to regulations aimed at giving businesses more flexibility dealing with the coronavirus, but small business specialists say the rush of new rules remains confusing for many.

Workplace relations lawyer Peter Healey from law firm Cowell Clarke said awards, entitlements and what employers could lawfully do was a major source of concern for small and medium enterprises (SMEs).

“We have received a large increase in inquiry from business owners worried about their legal responsibilities as employers,” he said.

“There has always been a degree of uncertainty among employers around awards and entitlements but COVID-19 and the constantly evolving business landscape has taken this to another level.

“It’s really important for business owners to keep abreast of regulatory updates impacting their industry and seek professional advice.”

Chartered accountant and the principal of Mr Taxman, Adrian Raftery, said improving efficiencies in regulations and minimising overlap of regulators would “greatly reduce the grey hairs and stress for SME operators”.

“I am also not against the idea of there being fewer business activity statements and instalment activity statements that need to be submitted throughout the course of the year – there are a number of SMEs who need to report monthly at the moment which is ridiculous,” he said.

Dr Raftery said bringing forward planned tax cuts for SMEs due in July 2021 would be welcome.

He said for many years fringe benefits tax had been tough on the car, restaurant and entertainment industries “and these are the ones who are getting absolutely smashed right now”.

“The removal – or at least reduction – of FBT would stimulate those industries again.

“A lot of SMEs are family businesses and I would like to see mums and dads file a combined tax return to equalise the tax paid regardless of who earns the income.”

Financial services firm William Buck’s business advisory principal, Shane Taylor, said business owners should speak with their accountant as soon as possible because there were a lot of legislation changes and COVID-19 stimulus incentives available.

“There are various industry specific grants worth investigating for SMEs,” he said.

“Some rental relief may be available … Landholding entities may also be eligible for COVID-19 land tax relief.”

HOW SMALL BUSINESS OWNERS CAN MAXIMISE TAX TIME

1. Scrap obsolete stock or plant.

2. Write off bad debts.

3. Buy assets worth up to $150,000 each and claim as a tax deduction this year through the instant asset write-off.

4. Contribute up to $25,000 into super and claim a tax deduction.

5. Defer income or bring forward expenses.

6. Split income with a lower-earning spouse to pay less tax as a family.

7. Don’t spend money purely to get a tax deduction.

8. Get good accounting advice.

Source: Mr Taxman

Original article published here on 18 May 2020 in The Mercury