Energy efficiency grants for SMBs Round 2

Posted on 26 February 2024 | by Allan Hall

Extra $41M Boost for SMEs to Reduce Energy Bills

The grant opportunity provides eligible small and medium businesses up to $25,000 to purchase energy-efficient equipment to reduce and manage energy usage and costs.

NSW applications open Monday 26 February 2024 12.00pm AEDT

Overview

The Energy Efficiency Grants for Small and Medium-Sized Enterprises Round 2 will support businesses to upgrade or replace inefficient equipment to improve their energy efficiency. These upgrades will enable industries to reduce their energy use, manage energy cost volatility in the long term and contribute to Australia’s target of a 43% reduction in 2005 emission levels by 2030.

The objectives of the program are:

improve energy efficiency practices and increase the uptake of energy-efficient technologies
assist small and medium businesses to manage their energy usage and costs
reduce greenhouse gas emissions.

The intended outcomes of the program are:

increase awareness of energy efficiency opportunities and help businesses to save energy
reduced power bills for small and medium businesses
emissions abatement to contribute to Australia reducing its emissions to 43% below 2005 levels by 2030.

Check if you can apply

The eligibility criteria are a set of rules that describe who we can consider for this grant. You can apply if you:

are an eligible entity
have an eligible project
have eligible expenditure.

The rules are in the grant opportunity guidelines.

Projects cannot be funded if you received any grant funding in the Energy Efficiency Grants for Small and Medium-Sized Enterprises Round 1 program.

You can only receive one Energy Efficiency Grant for Small and Medium Sized Enterprises Round 2 grant per applicant (as determined by your ABN).

CONTACT ALLAN HALL BUSINESS ADVISORS

AHBA Xero Platinum Partners against AH office sign

Allan Hall attains Xero Platinum status

Posted on 20 November 2023 | by Allan Hall

Allan Hall Business Advisors is delighted to be formally recognised as Xero Platinum Partners

What does going Platinum mean for our clients?

Our primary goal is to build a successful accounting and business advisory firm that provides a high-quality, tailored service to business owners and individuals on Sydney’s Northern Beaches.

We didn’t set out with the goal of becoming a Platinum Partner but, looking back, becoming Platinum with Xero is something we’re really proud of. It’s recognition of our hard work and all that our team has done to help our clients and subsequently grow their businesses.

It’s also a great stepping-stone as we continue to work in collaboration with our Alliott Global Alliance colleagues worldwide to extend our capabilities beyond Sydney.

Being a Platinum Partner means a lot to our team.

Going Platinum boosts our capabilities in really unique ways. We’ve worked hard to achieve this goal, and the status shows our efforts have paid off.

As accountants, becoming a Xero Platinum Partner offers several benefits to our clients. Xero is a popular cloud-based accounting software platform, and achieving Platinum Partner status indicates a high level of expertise using the platform as part of our tech stack. Here are some of the benefits:

Expertise and Training: Platinum Partners have a deep understanding of Xero’s features and capabilities. We have undergone extensive training and certification, which means we can provide expert guidance and support to our clients.
Efficiency Improvements: Accountants who are Xero Platinum Partners are naturally more efficient in using and optimising the platform. This translates into skills we can pass on to our clients.
Enhanced Reporting: Platinum Partners can often provide more advanced reporting and analysis capabilities within Xero, helping our business clients gain better insights into their financial data.
Customised Solutions: Platinum Partners are better equipped to tailor Xero to the specific needs of our clients. We can create customised solutions and workflows that align with the unique requirements of different businesses.

At Allan Hall, we’re experts in Xero cloud accounting software that’s easy to love. Find out more about using Xero in your business here or drop us a line to get started.

CONTACT ALLAN HALL BUSINESS ADVISORS

2023-24 Federal Budget

Posted on 10 May 2023 | by Allan Hall

Tax and Superannuation Overview

2023-24 Federal Budget Highlights

The Federal Treasurer, Dr Jim Chalmers, handed down the 2023–24 Federal Budget at 7:30 pm (AEST) on 9 May 2023.

The Budget forecasts the underlying cash balance to be in surplus by $4.2 billion in 2022–23, the first surplus since 2007–08, followed by a forecast deficit of $13.9 billion in 2023–24.

The Treasurer has described the tax measures as “modest but meaningful” including changes to the Petroleum Resources Rent Tax and confirmation of a 1 January 2024 implementation of the BEPS Pillar Two global minimum tax rules.

A range of measures provide cost-of-living relief to individuals such as increased and expanded JobSeeker payments and better access to affordable housing. No changes were announced to the Stage 3 personal income tax cuts legislated to commence in 2023–24.

As part of the measures introduced for small business, a temporary $20,000 threshold for the small business instant asset write-off will apply for one year, following the end of the temporary full expensing rules.

The full Budget papers are available at www.budget.gov.au and the Treasury ministers’ media releases are available at ministers.treasury.gov.au. The business tax and superannuation highlights are set out below.

READ FULL BUDGET REPORT

Business highlights

The instant asset write-off threshold for small businesses applying the simplified depreciation rules will be $20,000 for the 2023–24 income year.
An additional 20% deduction will be available for small and medium business expenditure supporting electrification and energy efficiency.
FBT exemption for eligible plug-in hybrid electric cars will end from 1 April 2025.
Employers will be required to pay their employees’ superannuation guarantee (SG) entitlements at the same time as they pay their salary and wages from 1 July 2026.

Small business depreciation — instant asset write-off threshold of $20,000 for 2023–24

The instant asset write-off threshold for small businesses applying the simplified depreciation rules will be $20,000 for the 2023–24 income year.

Small businesses (aggregated annual turnover less than $10 million) may choose to calculate capital allowances on depreciating assets under a simplified regime. Under these simplified depreciation rules, an immediate write-off applies for low cost depreciating assets. The measure will apply a $20,000 threshold for the immediate write-off, applicable to eligible assets costing less than $20,000 first used or installed between 1 July 2023 and 30 June 2024. The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write-off multiple low-cost assets. The threshold had been suspended during the operation of temporary full expensing from 6 October 2020 to 30 June 2023.

Assets costing $20,000 or more will continue to be placed into a small business depreciation pool under the existing rules.

The provisions that prevent a small business entity from choosing to apply the simplified depreciation rules for 5 years after opting out will continue to be suspended until 30 June 2024.

Increased deductions for small and medium business expenditure on electrification and energy efficiency

An additional 20% deduction will be available for small and medium business expenditure supporting electrification and energy efficiency.

The additional deduction will be available to businesses with aggregated annual turnover of less than $50 million. Eligible expenditure may include the cost of eligible depreciating assets, as well as upgrades to existing assets, that support electrification and more efficient use of energy. Certain exclusions will apply, including for electric vehicles, renewable electricity generation assets, capital works, and assets not connected to the electricity grid that use fossil fuels.

Examples of expenditure the measure will apply to include:

assets that upgrade to more efficient electrical goods (eg energy-efficient fridges)
assets that support electrification (eg heat pumps and electric heating or cooling systems), and
demand management assets (eg batteries or thermal energy storage).

Total eligible expenditure for the measure will be capped at $100,000, with a maximum additional deduction available of $20,000 per business.

When enacted, the measure will apply to eligible assets or upgrades first used or installed ready for use between 1 July 2023 and 30 June 2024. Full details of eligibility criteria will be finalised in consultation with stakeholders.

FBT exemption for eligible plug-in hybrid electric cars to end

The FBT exemption for eligible plug-in hybrid electric cars will end from 1 April 2025.

Arrangements involving plug-in hybrid electric cars entered into between 1 July 2022 and 31 March 2025 remain eligible for the exemption.

Employers to be required to pay SG on payday

Employers will be required to pay their employees’ superannuation guarantee (SG) entitlements at the same time as they pay their salary and wages from 1 July 2026.

Employers are currently required to make SG contributions for an employee on a quarterly basis to avoid incurring a superannuation guarantee charge.

The proposed commencement date of 1 July 2026 is intended to provide employers, superannuation funds, payroll providers and other stakeholders sufficient time to prepare for the change.

Changes to the design of the superannuation guarantee charge will also be required to align with the increased payment frequency. The government will consult with relevant stakeholders on the design of these changes, with the final framework to be considered as part of the 2024–25 Budget.

In addition, funding will be provided to the ATO to, among other things, improve data matching capabilities to identify and act on cases of SG underpayment.

Superannuation measures

Superannuation earnings tax concessions will be reduced for individuals with total superannuation balances in excess of $3 million from 1 July 2025.
The non-arm’s length income (NALI) provisions will be amended to provide greater certainty to taxpayers.

Reducing tax concessions for super balances exceeding $3M

Superannuation earnings tax concessions will be reduced for individuals with total superannuation balances in excess of $3 million.

From 1 July 2025, earnings on balances exceeding $3 million will incur a higher concessional tax rate of 30% (up from 15%) for earnings corresponding to the proportion of an individual’s total superannuation balance that is greater than $3 million. The change does not impose a limit on the size of superannuation account balances in the accumulation phase and it applies to future earnings, ie it is not retrospective.

Earnings relating to assets below the $3 million threshold will continue to be taxed at 15%, or zero if held in a retirement pension account.

Interests in defined benefit schemes will be appropriately valued and will have earnings taxed under this measure in a similar way to other interests.

Need help?

If you would like assistance to interpret these changes and how they may affect your individual or business circumstances, please contact your Allan Hall Advisor on 02 9981 2300.

CONTACT ALLAN HALL BUSINESS ADVISORS

Small Business Energy Efficiency Grants

Posted on 20 March 2023 | by Allan Hall

Energy Efficiency Grants for Small and Medium Sized Enterprises Round 1

Funding to purchase energy-efficient equipment upgrades for small and medium businesses is available.

The Energy Efficiency Grants for Small and Medium Sized Enterprises Round 1 will support businesses to upgrade or replace inefficient equipment to improve their energy efficiency. These upgrades will enable industries to reduce their energy use and manage energy cost volatility in the long term. This will contribute to Australia’s target of a 43% reduction on 2005 emission levels by 2030.

Key points

Grants from $10,000 to $25,000 to cover up to 100% of eligible project expenditure
Funding will be distributed between states and territories based on the distribution of small and medium sized businesses nationally
This is a demand-driven grant opportunity with grants awarded to eligible applicants on a first come, first served basis until the funding is exhausted in each jurisdiction
Grant applications close 19 April 2023.

APPLY HERE

Who is this for?

This grant opportunity is for small and medium sized businesses with an employee headcount of 1 to 199 employees.

The objectives of the program are to:

improve energy efficiency practices and increase the uptake of energy efficient technologies
assist small and medium businesses to manage their energy usage and costs
reduce greenhouse gas emissions.

The intended outcomes of the program are:

increased awareness of energy efficiency opportunities and help businesses to save energy
reduced power bills for small and medium businesses
emissions abatement to contribute to Australia reducing its emissions to 43% below 2005 levels by 2030.

Check if you can apply

You can apply if you meet the eligibility criteria. The eligibility criteria are a set of rules that describe who can be considered for this grant. You can apply if you:

are an eligible entity
have an eligible project
have eligible expenditure.

The rules are in the grant opportunity guidelines.

If you enter a grant agreement under the Energy Efficiency Grants for Small and Medium Enterprises program you cannot receive other funding for the same activities from other Commonwealth, state or territory programs. Funding includes, but is not limited to, grants, rebates, contributions, certifications and certificates that have a value and any other form of financial assistance.

Eligible entities

You can apply if you:

have an Australian business number (ABN)

and are one of the following entity types:

an entity incorporated in Australia
a partnership
a sole trader.

You must also:

be a small or medium sized business with an employee headcount from 1 to 199 employees averaged over any consecutive 12-month period since 1 July 2019
have consent from the owner of the project location to undertake the project, if the entity is not the owner of the project location.

You can’t apply if you are:

an organisation, or your project partner is an organisation, included on the National Redress Scheme’s list of Institutions that have not joined or signified their intent to join the Scheme
an employer of 100 or more employees that has not complied with the Workplace Gender Equality Act (2012)
an unincorporated association
a trust (however, an incorporated trustee may apply on behalf of a trust)
a Commonwealth, state, territory or local government body (including government business enterprises, public schools, and public hospitals)
a non-corporate Commonwealth entity
a business that has more than 199 employees.

Eligible projects

Your project must:

be aimed at reducing the energy consumption of your business in Australia
have at least $10,000 in eligible expenditure.

Your project may include the following activities:

an energy audit of your site or part of your site
the design, and installation of energy efficient equipment, including any necessary wiring or other electrical work
measuring, monitoring and recording energy usage
the commissioning or tuning of equipment installed.

Eligible expenditure

You can use this grant funding for:

purchase of equipment to replace existing equipment, where the new equipment is higher energy efficiency
costs to decommission, remove and dispose of the old equipment that is replaced
purchase of equipment or components to help an existing system run more efficiently in regard to energy
building permits or approval costs to install equipment, where required
the cost of suppliers, consultants and contracted labour undertaking eligible project activities.

Check if you’re ready to apply for a grant

Finding a suitable grant opportunity is just the start of the process to get funding. The application process can take time and effort. Understanding the entire process will help you be grant ready and may improve your chances of getting funding.

Use this checklist to find out what it takes to apply for a grant »

When you’re ready to apply

Submit an application through the online portal. You’ll need to set up an account when you first log into the portal. The portal allows you to apply for and manage a grant or service in a secure online environment.

Applications will be checked to ensure they meet the eligibility criteria in order of application receipt.

Before you apply, make sure you:

read and understand the grant opportunity guidelines
read the grant agreement
read the sample application form.

CONTACT ALLAN HALL BUSINESS ADVISORS

Be your best tradie with the right tech

Posted on 22 March 2021 | by Allan Hall

How can tradespeople go about streamlining their business and help set themselves up for success?

Reduce admin with the right tech

For trade business owners wanting to get more control and grow their business, reducing time spent on admin can have a huge impact.

Worldwide, 39% of tradespeople spend more than 12 hours per week on paperwork – that’s more than one working week every month. Using specialised trade business management software can drastically reduce this.

For example, one area that’s a time blackhole for tradespeople is quoting. A fast and efficient quoting system not only saves admin time, but can also have a positive impact on how many jobs a tradesperson is likely to win.

Managing staff and communicating with customers is another area where the right software can come to the rescue for tradespeople. It’s easy to see how this time can add up if operators are spending a lot of the time on the phone, booking jobs, giving customers updates and liaising with staff.

Whereas using a cloud-based job management app like Tradify can ensure that your staff know exactly what they need, where to go and what to do just by checking the app. The Tradify app also features live job-tracking which can help communicate to each customer exactly what’s happening.

Using software to set up efficient admin processes builds a solid foundation for a trades business.

The amount of time saved compounds over time, potentially saving hundreds of hours a year. And the flow-on effects can be huge. Not only does it mean time saved, it can also help tradespeople feel less stressed, more in control and give them time back to spend on higher value activities, helping their trade business grow as a result.

We know that better efficiency gets you more family time and the ability to take the time off you want to have!

Got a question about making the most of technology in your trade business? Get in touch with our Bookkeeping team who will be able to assist you with all your cloud bookkeeping queries on 02 9981 2300.

Allan Hall Business Advisers are Platinum Xero Partners.