Value Beyond

Small Business Advisors & Chartered Accountants

Ian Wood

More Government support to Business and Individuals

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The Federal Government has today announced extensions to the support they are providing to small businesses and to individuals and households.

The details on how some of these measures will apply and can be obtained are now clearer, and the benefits have been increased in line with the expectation of further economic disruption due to the social distancing measures put in place, as well as shutdowns of events, large gatherings and public places.

Please note: due to the large scale of the measures being put in place, and their recent announcement i.e. they are only hours old, some of the specific details of how to access these benefits will not be known until the coming days.

We will keep you updated as things develop, and we will be reviewing business positions in relation to the PAYG withholding repayment over the next month, and more particularly as the March monthly or quarterly BAS is prepared.

Special note: the PAYG withholding repayment will not process until 28 April 2020 at the earliest, so lodging the BAS earlier will not see the repayment made any earlier than 28 April 2020.

The main message that we take out of these announcements?

The economy is in for a very rough ride, probably for the next 12 months, at a minimum.

Our advice?

Nothing different from what we have been saying for the last few years. Keep on top of your numbers, know your financial position, and be diligent with your cash.

Small Business

PAYGW repayment:

  • Increase from 50% to 100% of all PAYG withholding reported by a business from 1 January 2020 to 30 June 2020, and an increase of the minimum from $2,000 to $10,000, and the maximum increased from $25,000 to $50,000
  • There will now be a further payment for the July to September 2020 period – this will be equal to the first payment, giving businesses a minimum of $20,000 (2 x $10,000) and a maximum of $100,000 (2 x $50,000) over the period 1 January 2020 to 30 September 2020

Am I eligible?
The payment will only be available to active eligible employers established prior to 12 March 2020. Eligible employers are those that pay salary and wages i.e. registered for PAYG withholding.

How do I claim this?
The payment will be delivered as an automatic credit upon lodgement of the March activity statement (monthly and quarterly) and applied from 28 April 2020 – if this places the entity in a refund position then this refund will be paid within 14 days.

Further details and examples:
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf
Temporary relief for financially distressed businesses:

  • increasing the threshold at which creditors can issue a statutory demand on a company from $2,000 to $20,000 – this will apply for six months
  • Increasing the time to respond to a statutory demand from 21 days to six months
  • Increasing the minimum amount of debt required for a creditor to initiate bankruptcy proceedings, from $5,000 to $20,000 – this will apply for six months
  • Increasing the time a debtor has to respond to a bankruptcy notice, from 21 days to six months
  • Directors temporarily relieved of their duty to prevent insolvent trading, relieving the director of personal liability that would otherwise be associated with insolvent trading for debts incurred in the ordinary course of business – this will apply for six months

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf

Supporting the Flow of Credit

The government will provide a guarantee of 50% to SME lenders to support new short-term unsecured loans to small and medium businesses.

This scheme will guarantee up to $40 billion of new lending, to provide businesses with funding to meet cash flow needs.

The loan will need to be applied for through a bank, so no doubt further requirements will be provided by the bank when these loans become available.

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Supporting_the_flow_of_credit_1.pdf

Temporary Exemption from Responsible Lending Obligations
The government is cutting red tape by providing a temporary exemption from responsible lending obligations for lenders providing credit to existing small business customers. This will help small businesses get access to credit quickly and efficiently.

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Supporting_the_flow_of_credit_1.pdf

Individuals and Households

Income support for individuals
Over the next six months the Government is temporarily expanding eligibility to income support payments and establishing a time limited supplement to be paid at $550 per fortnight. This will be paid to existing and new recipients of JobSeeker Payment, Youth Allowance JobSeeker, Parenting Paymnet, Farm Household Allowance and Special Benefit.

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf

Payments to Support Households
An additional payment of $750 will be made from 13 July 2020 social security, veteran and other income support recipients and eligible concession card holders – it will not be made to those eligible to the additional $550 payment.

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Payments_to_support_households.pdf

Temporary Early Release of Superannuation
The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-2020, and a further $10,000 in 2020-21 – these amounts will be tax free and will not affect Centrelink or Veteran’s Affairs payments.

To qualify, you must satisfy any one or more of these requirements;

  • You are unemployed; or
  • you are eligible to receive a JobSeeker Payment, Youth Allowance JobSeeker, Parenting Payment, Farm Household Allowance and Special Benefit; or
  • on or after 1 January 2020;
    • you were made redundant; or
    • your working hours were reduced by 20% or more; or
    • if you are a sole trader – your business was suspended or there was a reduction in your turnover of 20% or more

Application is to be made directly to the ATO through myGov, and you will need to certify that you meet the requirements.

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Early_Access_to_Super_1.pdf

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Navigate the financial impacts of the COVID-19 health crisis

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The Value Add
Special COVID-19 Update

You have no doubt read and heard a lot on the worldwide pandemic of corona virus (COVID-19), which has and continues to impact us all in various ways.

As a precaution, Value Beyond has closed its office to client visits to implement the Government’s recommendations on social distancing, but we will be continuing to operate and assist you, and we can be contacted by phone or email.

Beyond the health impacts, the general slow down in economic activity and even the forced shut down of some businesses due to this outbreak is likely to have a financial impact on everyone over the coming months.

What can you do now to minimise any longer term impact on your finances?

Government Incentives

The Federal Government has announced its “economic response to the coronavirus” which will assist businesses and pensioners:

  • Funding to the health system to asses, diagnose and treat people with corona virus
  • Increasing instant asset write-off from $30,000 to $150,000 until 30 June 2020 for businesses with turnover less than $500 million for asset purchased from 12 March 2020
  • Accelerated depreciation – ability to deduct 50% of any asset purchase on installation, and normal depreciation rules apply to the balance. This incentive is available from 12 March 2020 until 30 June 2021
  • Repayment of 50% of the PAYG withholding reported by businesses with a turnover less than $50 million, from 1 January 2020 to 30 June 2020 – minimum payment of $2,000 and maximum payment of $25,000
  • Eligible employers can apply for a wages subsidy of 50% of an apprentice or trainee’s wages for up to 9 months from 1 January 2020 to 30 September 2020
  • Stimulus payments of $750 to social security, veteran and other income support recipients and eligible concession card holders.
  • The government has set aside $1 billion to support regions and communities disproportionately affected the economic impacts

The Queensland government has also announced initiatives to assist businesses:

  • Payroll tax deferral will be available to all affected businesses in Queensland, which will defer payroll tax for a period of six months
  • $500 million to be provisioned for loans of up to $250,000 with an initial 12 month interest free period, for businesses to retain staff

We are waiting on Commonwealth legislation to learn the finer details of these packages, but if you would like to register your interest for the Queensland Government loans, please visit this page:

https://www.business.qld.gov.au/starting-business/advice-support/support/novel-coronavirus

Fair Work has a number of information sheets about your entitlements and obligations if you are affected by the outbreak of corona virus. This includes what to do if an employee is stuck overseas, isolated/self-quarantined or has contracted the virus and may have impacted the workplace.

https://www.fairwork.gov.au/about-us/news-and-media-releases/website-news/coronavirus-and-australian-workplace-laws
ATO Support

These relief options are not automatic, so an application will need to be made to the ATO:

  • Payment deferrals – If your business has been affected by COVID-19 the ATO will defer some payments by up to 4 months and vary instalments that are due such as income tax, activity statement (including PAYG instalments), FBT and excise
  • Businesses can elect to change to a monthly reporting cycle for GST in order to be able to claim GST refunds sooner – please note that taking up this option will lock the business into monthly activity statements for a minimum of 12 months
  • You can vary your PAYG instalment on the March 2020 quarter activity statement – please note that this is for circumstances where the total tax for the 2020 financial year will be less than the instalments estimated by the ATO
  • The ATO will consider remitting interset and penalties if your business is affected by COVID-19
  • Low interest rate plans are available for eligible businesses

Superannuation must continue to be paid in full and on time – there is no flexibility allowed to the ATO to vary this date.

Financial management during this period

As is prudent at any time, but more so during uncertain times like we are facing now, reviewing your financial position is vitally important.

The most important message we can offer is:

“Make a decision about your financial situation while you have the ability to do so, before someone else makes it for you.”

If you are struggling financially, speak to your bank about any ability to defer or reduce mortgage repayments and/or credit card repayments.

Assess your cash position – how long will your money last you at your current spending rate?

Whether it is for your business or for your personal situation, if that spending rate does not allow you to survive for long enough, make the tough decisions early so that you give yourself the most amount time to improve your financial position.

The steps are:

  • Acknowledge that there is a problem
  • Quantify the problem and the timeframe in which it needs to be resolved
  • Talk to your providers, banks, staff etc. about the options available and any hard decisions which need to be made
  • Take action to improve your position – this might mean selling investments, doubling your efforts on getting sales or chasing unpaid invoices to customers, actions that will improve your cash flow in the short term and long term.

If you have any questions about the above government announcements, or your business’ financial position, contact us to discuss.

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The Value Add – August 2018

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The “Tax Gap” of $8.7 billion. You may have heard it being talked about on the news, or read about it as part of the ATO’s big push to educate taxpayers with tax time upon us.

But what is this “tax gap”?

It is the ATO’s estimate of the amount paid to individual taxpayers for incorrect claims for deductions that the ATO believes they are not entitled to. These claims include claiming the standard $150 for laundry, $300 for work related expenses, and 5,000kms for work related motor vehicle travel, even though the costs haven’t been incurred.

Is this something you need to be concerned about? The tax laws haven’t changed, but the ATO’s focus on the work related expenses claims of individuals has. Instead of targeting specific industries, the ATO are using statistical analysis of tax return data to identify claims that are higher than the average for that job description as a way to target individuals they believe are over-claiming on their deductions.

The key is to follow the basic rules when it comes to claiming deductions:

  • Did you spend the money? You must have receipts, invoices or other documentation to back up that you actually spent money on the items being claimed
  • Was the expense work related? Did it relate to you earning your income? Simple examples of work related expenses include stationery used at work, union fees, work related registrations, mobile phone, and work related travel. Expenses that are not deductible include entertainment, gym memberships and other private expenses
  • Have you apportioned the expense between work related and private purposes? If you use your mobile phone for work and for personal calls, then you need to apportion it between the two purposes. This can be done by reviewing one or two bills to itemise the calls and work out the percentage of work related versus personal calls.
  • Were you reimbursed by your employer? If your employer reimbursed you, then you cannot claim the expense.

And if you are still unsure about what to claim? Email us for our checklist and deduction worksheet to help you collate your 2018 tax information.
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Harsher Penalties For Unpaid Employee Super Entitlements

Legislation has been introduced to Parliament that the Government says is aimed at protecting workers’ super entitlements, while modernising the way super guarantee is enforced. In conjunction with strengthened director penalty notices, where employers defy directions to pay their superannuation guarantee liabilities the ATO will be able to apply for court ordered penalties, including up to 12 months imprisonment.

These increased penalties will be combined with the extension of Single Touch Payroll to all employers from 1 July 2019, as well as the introduction of a Director Identification Number to help identify those directors who are robbing their employees of their superannuation. The bottom line – if you are a company director, pay your employees’ superannuation to prevent being personally liable for the payment or harsher penalties.

Why Registrations Matter

Are you starting a new business, or currently run a business? When was the last time you checked that all of your registrations are up to date? There are a number of key registrations that can be critical when running business. These include:

  • company registration
  • business name registration
  • trademark registration
  • website domain name registration

These registrations are not only vital to maintaining all legal rights to run your business and own your business name, but it is essential that ownership can be proved if you are trying to sell your business.

How do I know whether my registrations are up to date?

You can check company registrations and business names on the Australian and Securities Commission (ASIC) website at www.asic.gov.au. This will tell you whether the name is current, and some limited details such as registration dates.

The other important thing to do is to keep your details up to date with ASIC, so that you receive important notices such as renewal notices and annual company statements. If you don’t receive these and pay the necessary fees, then your registration can lapse and cause significant issues.

Trademark registrations can be viewed at www.ipaustralia.gov.au, by searching for the trademark details. Again, keeping your contact details up to date is vital to ensuring that you don’t miss important renewal notices.

Domain names can usually be set up to automatically renew when the renewal date comes around. These details can be checked with your Internet Service Provider (ISP), or your IT provider. Again – make sure your contact details are up to date!

Buying A New Car This Year? Will You Keep A Logbook?

 

If you have bought a new car after 1 July 2017 and you are looking to use the logbook method for claiming the car in the 2018 financial year, you’ll need a logbook started before the end of the year to claim the car in the 2018 financial year.

 

If it is started less than 12 weeks before the year end i.e. started after 7 April and before 30 June, then you can continue the logbook into the 2019 financial year so it covers the 12 week period needed for a valid logbook. If you haven’t started a logbook prior to 30 June, then you will need to keep a logbook in the current financial year to make a claim using the logbook method in the 2019 financial year. Once you have a completed logbook, you then calculate the business travel as a percentage of the total travel, and apply that percentage to all of the expenses relating to the car, including depreciation. What do I need to record in my logbook? The logbook you keep must contain the following:

  • when the logbook period begins and ends
  • the car’s odometer readings at the start and end of the logbook period
  • the total number of kilometres the car travelled during the logbook period
  • the business-use percentage for the logbook period
  • the number of kilometres travelled for each journey recorded in the logbook (if you made two or more journeys in a row on the same day, you can record them as a single journey).
  • You will need to record:
    • start and finishing dates of the journey
    • odometer readings at the start and end of the journey
    • kilometres travelled
    • reason for the journey
  • the odometer readings at the start and end of each income year you use the logbook method

What other records do I need to keep?

To claim the logbook percentage of your expenses, you must keep records of costs such as fuel, repairs, registration, insurance, interest on finance used to purchase the car. These records include receipts and invoices relating to those costs. Check out our Tax Guide To Motor Vehicles on our website!

Upcoming Dates

14 August 2018

Lodgement of PAYG Withholding Payment Summary Annual Report for large withholders and payers who do not have a tax agent involved in preparing the report

21 August 2018

Lodgement and payment of monthly July 2018 Activity Statements

25 August 2018

Lodgement and payment of quarterly June 2018 Activity Statements if lodged electronically

21 September 2018

Lodgement and payment of monthly August 2018 Activity Statements

30 September 2018

Lodgement of PAYG Withholding Payment Summary Annual Report if prepared by a tax agent

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The Value Add – November 2017

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Melbourne Cup has been run, and no doubt there were some celebrating and some commiserating on the outcome.

Did you see the other outcome on the second Tuesday of November? The Reserve Bank of Australia kept cash interest rates at the record low of 1.5%.

With the ASX on a stellar climb (up 7% in the last month) and managing to break through the 6,000 barrier for the first time since January 2008, there are signs that the economy is going well (at least in some sectors).

With those signs comes the prospect of interest rates rising again. Have you reviewed your debt levels lately? Are you taking advantage of the low interest rates and paying extra into your mortgages to reduce your principal faster?

Everyone knows that interest rates will rise again at some point, however it is those that do something about it now that will be able to secure their position when the inevitable rises occur.
The Value Add November 2017

Is Your Business Better Than The Industry Average?

You might be running a business and making a profit, but how are you performing compared to your competitors and others in your industry?

Benchmarking your business performance can help you understand whether you can improve measures such as gross profit (cost of goods sold), rent, salaries and other expenses, and net profit. By determining the areas in which your expenses are higher compared to your industry, you can analyse your expenses to work out ways in which you might be spending too much, or find better rates or deals from your suppliers.

It might even be the case that the benchmarking will highlight that you just aren’t charging enough and your prices need to increase!

The ATO provides a number of small business benchmarks which are broken up into industries, as well as turnover bands.

This is important, because you can benchmark yourself against similar businesses with the same level of sales, as generally a change in sales will change the percentages of various expenses. Expenses such as rent are generally fixed, so if you increase sales but the rent doesn’t change, the percentage will become smaller.

It may also be that you need more space if your business grows, so by reviewing this benchmark it might highlight or confirm your need to find new premises.

How do I benchmark my business?

You can find the ATO Small Business Benchmarks on the ATO website and compare your business manually, or you can use the ATO app which can be downloaded from Google Play, Windows Phone Store or Apple App Store.

If you are in doubt about how to benchmark your business, contact us at Value Beyond to arrange a review of your business, and we will help you determine the areas of your business that you need to work on.

Business Names vs Trade Marks

A common misconception is that once a business name is registered it is protected.

Business Name

Any person or company running a business that does not trade under their legal name, must register a business name with Australian Securities & Investment Commission (ASIC). This business name registration lets the public know who the legal entity they are dealing with is when they are dealing with your business.

For example, if your name was Robert Smith and you are trading under the name Robert Smith, then you do not need to register a business name. If you are Robert Smith trading as Bob’s Hot Dogs, then you need to register a business name because your trading name is different from your legal name.

Company Name

If you register a company with ASIC, then that company will trade under its legal name e.g. Bob’s Hot Dogs Pty Ltd. If the company trades under a name different than its legal name, then the company will need to register a business name e.g. Bob’s Hot Dogs Pty Ltd trading as Bob’s Burgers.

Domain Names

Registering a domain name only provides you with a web address for your web site. It does not provide any legal protection for the name that you are using for your business. Say Robert Smith registers www.bobshotdogs.com.au, this does not give any legal protection to the name as it is only a web address used to find the location of the website.

Trade Marks

Trade marks are administered by IP Australia. By registering a trade mark, this will give you the exclusive rights to use, licence, or sell the mark. There are many famous trademarks such as the Coca-Cola symbol, Nike swoosh, and even the distinctive purple colour of the Cadbury packaging for its chocolate.

How much value do you think your brand has?

If you don’t have a trademark registered, then it is possible that someone could register a name that is very similar to yours, which could lead to confusion, and a dilution in the value of your name.

You don’t think it matters to have the trademark registered?

We have had a client who (thankfully) registered their trademark, and then when a competitor opened up a business doing the same thing under a very similar name, they were able to enforce their trademark and make them change their name. This then protected the brand and its value, as well as the value of the ongoing business.

If you are unsure of what protection you have over your trading name, contact us at Value Beyond to organise a review of your business structure and ensure you retain the value in your brand.

Court Rejects $3,000 Claim For “High Class Clothes”

The Administrative Appeals Tribunal has ruled that a political staff was not able to claim more than $3,000 in clothing expenses as a tax deduction, despite her claim that she was required to wear “high class” clothing to work.

The employee worked for former Prime Minister Kevin Rudd, and claimed the clothing in her 2013 and 2014 tax returns. She argued that she was required to regularly meet with foreign dignitaries and executives, and it was the expectation of her workplace to wear clothing of a certain level that she would not usually wear.

However, the AAT determined that expenditure on “conventional clothing” is not an allowable work expense. Clothing has to be distinctive or unique to the nature of the employment (uniforms, costumes etc.) and is unsuitable for activities other than work.

What does this mean for me?

The findings of the AAT highlight the general rules that an expense will be tax deductible only where it has a connection to work/business activities and your ability to earn your income, and it is not a private expense.

Typically an expense would be private if you had to pay for the expense anyway, and there is no strict requirement of your job that you have to pay for that expense in order to earn your income. Examples of these types of expenses include, clothing, hair and make up, food and drink, and travel to and from work. There are obviously exceptions to these scenarios:

  • protective clothing specific to your job
  • hair and make-up if you are a TV presenter or airline hostess
  • food and drink while you are travelling away from home overnight for work
  • travel to and from work, only if there is a work related stop on the journey e.g. to see a customer, pick up the mail etc.

The key to being able to claim expenses as work related deductions is that there has to be a connection between the expense and the earning of your income. If that link doesn’t exist, and you would normally treat the cost as a private expense, then it is likely not tax deductible.

If you are in doubt about any expenses that you think might be claimable, contact us at Value Beyond to make sure before you make a claim – particularly if the only reason you are spending the money is to get a tax deduction!

Upcoming Dates

21 November 2017

Lodgement and payment of monthly October 2017 activity statements

25 November 2017

Lodgement and payment of quarterly September 2017 activity statements if lodged electronically

1 December 2017

Payment of income tax for taxable large/medium companies and super funds (turnover greater than $10 million) – lodgement due 15 January 2018

21 December 2017

Lodgement and payment of monthly November 2017 activity statements

25 December 2017

Christmas Day

26 December 2017

Boxing Day

1 January 2018

New Year’s Day

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The Value Add – October 2017

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The AFL and NRL grand finals have been played, Bathurst has been run for another year and the Melbourne Cup is fast approaching again on the first Tuesday in November.

There is a saying that nothing gets done between Melbourne Cup and Australia Day – we certainly know that the Christmas/New Year period sees a significant slowdown as a number of business take advantage of the summer weather and public holidays to take an extended break.

While this might seem like a good time of year to totally switch off, it is actually an opportunity to get a head start on the coming year ahead. Some ways to take advantage:

  • Start planning for the year ahead – whether it be business, investments, budgeting, or even achieving a goal that you’ve been putting off all this year. It could even be planning your next holiday in 2018
  • Rest, rejuvenate and recharge – it is a great time of year to take some time out and avoid the inevitable burnout that comes from working hard 24/7/365. Reprioritise your health, as that is what will help you get through those stressful and busy periods
  • Use the period to finish those tasks that don’t get done when all the urgent day-to-day jobs get in the road – the three weeks across late December/early January are typically pretty quiet while everyone is on holidays, which provides a perfect distraction and interruption free period to focus on the important, not the urgent

How will you be taking advantage of this period to make 2018 your best year yet?

goal plan

Superannuation Guarantee Gap And Increased Audits

The Australian Taxation Office has estimated what is calls the Superannuation Guarantee (SG) gap. This gap is the difference between the theoretical amount payable by employers, and the actual contributions received by super funds.

This gap is estimated to be 5.2% or $2.85 billion of the total $54.78 billion in SG payments employers were required to pay in 2014-2015. Due to some employers not meeting their super guarantee obligations either by not paying enough or not paying it at all, the ATO has a range of strategies in place to educate, support, monitor and enforce compliance by employers.

Importantly, if an employee reports an instance of non-payment of superannuation, the ATO will respond to every one of the approximately 20,000 reports of possible non payment of SG from employees or former employees.

How does this affect me?

If you are any employer, it is important to understand your obligations to pay your employees’ superannuation entitlements, and to ensure that these entitlements are calculated correctly.

The first step is to determine which of your workers are employees for Superannuation Guarantee purposes, and this particularly applies to those workers who might be characterised as contractors.

The next step is to work out the employees’ ordinary times earnings, and other earnings which might attract SG.

From there, the use of a computerised accounting system will help streamline the record keeping and reporting associated with payroll and superannuation entitlements. The accounting system can also ensure that the reporting of payment of employees’ superannuation entitlements meets the requirements of SuperStream.

Single Touch Payroll

The ATO is introducing a new system called Single Touch Payroll, which is rolling out over the next 2 years.

This system will require employers to report their wage and superannuation information at the time of payment of the wage. This information then will not have to be reported on BAS or payment summaries prepared as those details will already be with the ATO and then collated by them for the financial year.

As a result of this increased reporting regularity, the ATO will be able to follow up payment of PAYG withholding and Superannuation Guarantee to ensure that employers are meeting their obligations.

The takeaway for businesses employing staff will be that they will need to be organised, and ensure they know what their obligations are in relation to paying superannuation entitlements on behalf of employees.

If you have any doubt about your obligations, please contact us at Value Beyond for a review of your employment.

Government Grants & Assistance – Are You Eligible?

You may have started your business, or are considering starting a new business. Did you know that there are various government programs that provide assistance either through funding or free services that can help you grow and expand your business?

When growing a business, owners are often faced with barriers to growing the business. These barriers can either be financial barriers, such as funding required to expand the business, or it can be a lack of specialised skills and knowledge needed to push the business to the next level.

There are various Commonwealth and State government services which can help in both those areas, by providing financial assistance through grants and other programs, or by providing skills and mentoring.

Queensland Government

Whether you are starting a business or running a business, the Queensland Government’s Business Queensland website provides an abundance of resources to put you on the right track, as well as various grant, rebates and subsidy programs which can help you get the financial assistance you might need to bust through the growth barriers facing your business.

Commonwealth Government

The Commonwealth Government also provides a similar services on its www.business.gov.au website, with information on starting and running your business, as well as details on grants, programs, loans and subsidies that are available.

If you are looking for assistance and are not sure how to navigate the myriad of options available, contact us at Value Beyond to organise a review of your business to find the areas in which you require assistance.

Do I Need A Permit To Run A Giveaway?

One great way to promote your business is to run a giveaway or prize promotion, where customers or potential customers can win a prize for meeting certain conditions.

Typically in the era of social media, this might be for liking or sharing your page or a particular post, or it could be a competition for customers if they purchase from you during a set time period, and/or purchase a minimum amount.

But when do you need a permit for your competition under the Charitable and Non-Profit Gaming Act 1999? There are a range of different categories under which a competition might fall, and which category your competition might fall into will determine whether you need a licence to run it.

Category 1 games

  • includes raffles, sweeps, calculate sweeps, football doubles, lucky door prizes, bingo
  • total ticket sales not more than $2,000 and total value of prizes is at least 20% of the total ticket sales
  • conducted by a non-profit association (or individual in limited circumstances)

Does not require a licence Category 2 games

  • same as category 1, but total ticket sales are more than $2,000 but not more than $50,000
  • conducted by an eligible non-profit association

Does not require a licence Category 3 games

  • Gross proceeds are more than $50,000
  • Can be conducted by an eligible incorporated non-profit association
  • a licence number must be printed on category 3 games where ticket sales estimated to exceed $50,000

Requires a Category 3 gaming licence

Category 4 promotional games (trade promotions)

  • These are free entry draws conducted to promote goods or services
  • any person may conduct a promotional game, however, they are normally conducted by business to promote the sale of products

Read the Guide to Category 4 Promotional Games. Does not require a licence

Other categories:

  • Bingo centres – requires a bingo centre licence
  • Lucky envelopes – requires a luck envelopes printer’s licence
  • Tipping competitions – does not require a licence where all proceeds returned to the players as prizes

For most businesses, they won’t require a permit to run a promotion where the prize is their goods or services, and particular if there is no cost for the participants to enter. If you are looking to raise funds from the promotion or giveaway by selling tickets, then you may need to review the rules more thoroughly to ensure that you have any necessary licence.

Upcoming Dates

21 October 2017

Lodgement and payment of monthly September 2017 activity statements

28 October 2017

Deadline for paying superannuation guarantee contributions on behalf of employees for the June 2017 quarter

31 October 2017

Lodge tax returns for all entities with one or more prior year returns where outstanding as at 30 June 2017

21 November 2017

Lodgement and payment of monthly October 2017 activity statements

25 November 2017

Lodgement and payment of quarterly September 2017 activity statements if lodged electronically

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Value Beyond

Email: info@valuebeyond.com.au

Phone: (07) 3391 8539

Street: 40 Latrobe Street, East Brisbane QLD 4169

Postal: PO Box 7245, East Brisbane QLD 4169