ELECTRIC CAR DISCOUNT

On the 29^th of July, the new Labor Government introduced the Tax Laws Amendment (Electric Car Discount) Bill 2022.

The objective of this Bill is to encourage take up of electric vehicles by providing a Fringe Benefits Tax (FBT) exemption where certain conditions are met.

This FBT exemption will make it beneficial for people to enter salary sacrifice arrangements to acquire electric vehicles.  It will also encourage businesses to invest in electric vehicles for their fleet.

Not only will this measure apply to eligible vehicles that are purchased, it will also apply to vehicles that are leased.

The FBT exemption is anticipated to apply to vehicles acquired after the 1^st of July 2022 where the vehicle:

• qualifies as a “zero or low emission vehicle”; and
• has an acquisition price that is less than the luxury car tax threshold (currently: $84,916).

If/when the Bill is passed into law, it may offer a significant incentive for those individuals and businesses that are interested in acquiring electric vehicles.

However, when looking at the application of FBT to vehicles, the golden rule is that the numbers must always be crunched.

Anyone who is motivated by this measure should take steps to quantify the benefits that may be derived.

We will keep you posted on the progress of the Bill through Parliament.  In the meantime, please get in touch if you have any questions.

JOBS & SKILLS SUMMIT

The Jobs & Skills Summit will be held in Canberra on the 1^st and 2^nd of September.  Following that event, a white paper will be produced that will seek to address a broad range of issues, including:

• keeping unemployment low and boosting productivity;
• delivering secure, well-paid jobs and strong, sustainable wage growth;
• addressing skills shortages;
• improving migration settings;
• maximising jobs from renewable energy, tackling climate change, the digital economy, the care economy and a Future Made in Australia; and
• ensuring women have equal opportunities and pay.

With the Australian Bureau of Statistics having recently announced a further fall in unemployment to 3.4% in July, businesses will be looking to the summit to address the difficult labour shortages that are being experienced in many industries.

And with inflation and rising interest rates continuing to bite, employees will be interested in what can be done to deliver increased wages.

The challenge for the Government will be to appropriately balance the need for businesses to operate with sustainable wage costs and the need for workers to achieve real wage growth.

Let us hope that they can come up with some good ideas to drive the productivity gains needed to achieve this balance.

SMSF’S, ARE THEY GOOD FOR YOU?

We frequently field questions about how Self-managed Superannuation Funds (SMSF) work and whether they are a good option.

To answer all your questions on SMSF, Tracey Hunter will deliver a seminar on the evening of Thursday the 1st of September at Oscar’s Hotel in Ballarat.

Head of Sky Wealth, Patrick Quigley will also be there to talk about Managed Discretionary Accounts – what are they and how they work.

We encourage you to come on down to hear the guys talk, and to have the opportunity to ask a few questions.

If you would like to attend, please get in touch.

ANNUALISED WAGE CHANGES – HOSPITALITY & RESTAURANT AWARDS

As part of the Modern Award Review, the Fair Work Commission has changed annualised wage and salary clauses in the Hospitality Award and the Restaurant Award with effect from the 1^st of September.

The changes include setting outer limits to the number of overtime or penalty rate hours that can be covered by an annualised wage arrangement, as well as adding additional record-keeping requirements.

The Fair Work Ombudsman has produced a guide to assist employers to adapt arrangements to remain compliant beyond the 1^st of September.

The Fair Work Ombudsman’s announcement earlier in August that they had recovered a record $532m in unpaid wages and entitlements during 2021/22, serves as a reminder that there are very real consequences associated with getting it wrong.

We encourage employers to be proactive in understanding the rules and to get in touch if they need assistance.

GOVERNMENT GRANTS

Did you know that there is a website where information on all Commonwealth Government grant opportunities are published?

The GrantConnect website is a useful resource for businesses and not-for-profits to look out for Commonwealth grants that could benefit their organisation.

There is even an option to subscribe to email updates to alert you to opportunities as they arise.

Additionally, each of the State and Territory Governments publish information online about grant programs that they operate.

We have collated the following links to the State and Territory Government grants resources to help readers to track them down.

• Victoria
• New South Wales
• Queensland
• Western Australia
• South Australia
• Tasmania
• Australian Capital Territory
• Northern Territory

We encourage organisations to take the time to have a look at what programs are on offer.  There could be a great opportunity waiting for you.

Please also keep in mind that there are opportunities beyond Commonwealth and State/Territory run programs.  Many Local Governments run programs and there are also NGOs that run grants/funding programs too.

QUOTE OF THE MONTH

There has been much talk in recent times about sky-rocketing inflation that is pushing up the prices of everything from life’s necessities to luxury items.

Undoubtedly, access to necessities is an important issue that needs to be taken seriously.  However, when it comes to discretionary items a different mindset may be warranted.

In that regard, take a moment to consider the words of the renowned British philosopher Bertrand Russell.

“It is the preoccupation with possessions, more than anything else, that prevents us from living freely and nobly”.

If we were to keep these words in mind when making discretionary purchases, how often would we choose differently?

A more mindful approach to how we spend our money will certainly deliver a higher level of financial freedom.  We may also enjoy a greater level of appreciation for the possessions that we do choose to bring into our lives.

Sky Accountants Ballarat

Phone: 1300 328 855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 97444522

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437