Tag: hospitality

payroll

National Minimum Wage Rise

Posted on | by Allan Hall

The Fair Work Commission has announced two substantial increases to minimum wages

National Minimum Wage Increase 

The National Minimum Wage will increase by 5.2%, amounting to $40 a week. 

The new minimum wage will be $812.60 per week or $21.38 per hour.  

Award minimum wage increase 

The increase to award minimum wages is 4.6%. This is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for full-time employees.  

This means the minimum award wages: 

  • Above $869.60 per week, will get a 4.6% increase 
  • Below $869.60 per week, will get a $40 increase 

When do these changes come into effect? 

National Minimum Wage 

The new National Minimum Wage will apply from the first full pay period on or after 1 July 2022.  

Awards 

For most award-covered employees, minimum wages will increase from the first full pay period on or after 1 July 2022. 

However, for employees covered under the awards listed below the increase will be effective from 1 October 2022: 

Aviation
  • Aircraft Cabin Crew Award 
  • Airline Operations – Ground Staff Award 
  • Air Pilots Award 
  • Airport Employees Award 
  • Air Services Australia Enterprise Award 2016 
Hospitality 
  • Hospitality Industry (General) Award 
  • Registered and Licensed Clubs Award 
  • Restaurant Industry Award 
Tourism 
  • Marine Tourism and Charter Vessels Award 
  • Alpine Resorts Award 

Which employees will receive this increase?  

Employees whose minimum wage entitlements are set by:    

  • The national minimum wage    
  • A modern award     
  • A registered agreement (in some circumstances)    

Non-award covered employees 

It is important to note that if you have non-award covered employees on a salary which is above the national minimum wage, you are not obliged to increase their salary. However, with the current job market being so competitive and a shortage of potential employees available in the Australian market, it may be worth undertaking salary benchmarking and considering an increase when undertaking your next salary review process.    

Next steps

  1. Check whether your employees are covered by the national minimum wage, or a modern award.   
  1. Should a modern award apply to your employees, ensure you have correctly classified employees under the relevant award, and confirm the minimum rates of pay that will apply.    
  1. Review the current rates of pay for your employees and, if required, adjust their pay rates from their first full pay period starting on or after the appropriate date as it applies to your modern award.  

Changes to Superannuation from 1 July 2022 

It is important to also note that the increase in the super guarantee rate from 10% to 10.5% will be effective from 1 July 2022. Read more about the changes to superannuation here. 

Contact us

Our experienced HR Consultants at Allan Hall HR are available to answer your queries regarding the wage rise and assist you with salary benchmarking, clarification of awards or any other employee-related matters. Please get in touch with us today on 1300 675 393 or at [email protected] .

Northern Beaches Sydney cafe

NSW Summer Holiday Stock Guarantee

Posted on | by Allan Hall

Fresh support announced as NSW gets back to business

As part of the Economic Recovery Strategy, the NSW Government has committed to provide a Summer Holiday Stock Guarantee grant for Small and Medium Enterprises.

Under the SME Summer Holiday Stock Guarantee, hospitality and retail businesses will be able to apply for a grant of up to $20,000 to compensate for loss of perishable stock, or claim $10,000 for reduced capacity to sell non-perishable items, if they’re forced to close their doors between 1 December 2021 to 31 January 2022, due to a public health order.

Eligible hospitality and retail businesses with an annual turnover between $75,000 and $50 million will be able to apply via the Service NSW website: https://www.service.nsw.gov.au/.

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Please be aware that there is a high level of scamming activity around COVID-19 rules and regulations and, in particular, grants and relief. These scams are increasingly sophisticated and many involve impersonation such that they may appear to come from legitimate advisors (such as Allan Hall).

At Allan Hall, we will never request money upfront, deposits, transfers to personal accounts, payments via gift cards or other unexpected or unusual payment methods. If in any doubt, contact us via phone before taking actions that appear to be at the request of Allan Hall.

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NSW COVID-19 support packages

Posted on | by Allan Hall

Major new COVID-19 support package to help NSW businesses

The NSW Government has announced a major new grants package and Dine & Discover changes to help small businesses and individuals across NSW impacted by the current COVID-19 restrictions.

We will release further updates on eligibility requirements as information is released by NSW Treasury.

The package includes grants of between $5,000 and $10,000 for small businesses, payroll tax deferrals for all employers, an extension of the Dine & Discover program to 31 August 2021 and the ability for people to use Dine & Discover vouchers for takeaway delivered directly to their home by the venue itself.

The centrepiece of the package is the small business support grants which will help businesses by alleviating cashflow constraints while trading is restricted. This can be used for business expenses such as rent, utilities and wages, for which no other government support is available.

Three different grant amounts will be available for small businesses depending on the decline in turnover experienced during the restrictions:

  • $10,000 for a 70% decline
  • $7,000 for a 50% decline, and
  • $5,000 for a 30% decline.

Unfortunately businesses continue to incur costs such as rent, power and lost produce whilst the current restrictions are in place. The new grants will be available across NSW and available to sole traders and non-profit organisations, with expanded criteria to assist most hospitality and tourism operators impacted by COVID-19 restrictions during the school holiday period.

Businesses will be able to apply for the grants through Service NSW from later in July and will need to show a decline in turnover across a minimum two-week period after the commencement of major restrictions on 26 June 2021.

Business grants will be divided into two streams

1. Small Business COVID-19 Support Grant

Available to businesses and sole traders with a turnover of more than $75,000 per annum but below the NSW Government 2020-21 payroll tax threshold of $1,200,000 as at 1 July 2020. These businesses must have fewer than 20 full time equivalent employees and an ABN registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW.

2. Hospitality and Tourism COVID-19 Support Grant

Available to tourism or hospitality businesses that have a turnover of more than $75,000 and an annual Australian wages bill of below $10 million as at 1 July 2020. These businesses must have ABNs registered in NSW or be able to demonstrate they are physically located and primarily operating in NSW.

NB: Full criteria for both streams will be available in coming days on the Service NSW website.

Other key elements of the announced package

  • Dine & Discover vouchers will be able to be used for takeaway from eligible and registered Dine businesses during the restriction period, but food must be delivered direct to the home by the restaurant or café and not picked up. Dine & Discover vouchers cannot be redeemed for takeaway using third party delivery platforms.
  • A further one-month extension of Dine & Discover vouchers until 31 August 2021 to allow more time to use them.
  • Optional deferral of payroll tax payments due in July 2021 and the deferral of hotel June quarter gaming machine tax, with the Chief Commissioner of State Revenue able to provide for appropriate repayment arrangements on a case by case basis.

More information on small business support grants including Dine & Discover program changes will be available on the Service NSW website soon.

Applicants will require an accountant’s prepared declaration as part of the grant submission process. Allan Hall will be able to provide assistance to our clients as we have done with previous NSW grant programs.

To prepare a grant application or check proof of identity and auditing requirements, call Allan Hall’s team on the Northern Beaches on 02 9981 2300.

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Money in callipers federal budget

Taxable payments reporting system

Posted on | by Allan Hall

ATO’s taxable payments reporting system helps tradies compete on the level

The ATO’s taxable payments reporting system (TPRS) is a black economy measure designed to assist the ATO identify contractors who don’t report or under-report their income.

The ATO estimates that around 280,000 businesses need to lodge a Taxable payments annual report (TPAR) for 2019-20, 60,000 of which are overdue.

It’s not just businesses that pay contractors in the building and construction industry that need to lodge a TPAR.

2020 was the first year that businesses that pay contractors to provide road freight, information technology, security, investigation or surveillance services may need to lodge a TPAR with the ATO. This is in addition to those businesses providing building and construction, cleaning or courier services.

Businesses that have not yet lodged their TPAR need to as soon as possible in order to avoid penalties. Forms were due to be lodged by 28 August 2020 and are now well past that deadline.

Some businesses may not realise they need to lodge a TPAR but may be required to, do so depending on the percentage of payments received for deliveries or courier services.

Many restaurants, cafés, grocery stores, pharmacies and retailers have started paying contractors to deliver their goods to their customers. These businesses may not have previously needed to lodge a TPAR. However, if the total payments received for these deliveries or courier services are 10 per cent or more of the total annual business income, you’ll need to lodge.

More information

The ATO’s ‘Black Economy Taskforce’ estimates that Australia’s black economy is costing the community as much as $50 billion, which is approximately three percent of Gross Domestic Product (GDP).

Got a question on lodging your TPAR form correctly or want to know if your business is required to do so? Get in touch with our Tax & Accounting team in Brookvale on 02 9981 2300 for advice and assistance.

Additional information and resources in the form of videos, fact sheets, webcasts and examples to help businesses work out if they need to lodge, how to lodge and what to report is available at ato.gov.au/TPAR.

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Happy young people having hot drinks outdoors in cafe

Dine & Discover NSW

Posted on | by Allan Hall

Dine & Discover NSW program

The NSW Government has launched Dine & Discover NSW to encourage the community to get out and about, support dining, arts and tourism businesses and stimulate spending in our economy. 

Hospitality, entertainment and tourism businesses in New South Wales are being encouraged to sign on to the state government’s Dine & Discover program as it enters its second phase by expanding to more areas around the state.

Dine & Discover NSW is being piloted this month with a group of participating business in Sydney CBD, Northern Beaches and Bega Valley. A state-wide rollout will commence in March.

Every NSW resident aged 18 and over will be eligible for 4x $25 vouchers worth $100 in total. The vouchers can be used at participating NSW businesses who are registered as COVID safe. The Dine & Discover NSW vouchers are divided into two categories:

  • 2 x $25 vouchers to be used for eating in at restaurants, cafes, bars, pubs and clubs from Monday to Thursday, excluding public holidays
  • 2 x $25 vouchers to be used for entertainment and recreation, including cultural institutions, live music, and arts venues, available 7 days a week, excluding public holidays.

Business eligibility

To be eligible for Dine & Discover NSW, your business needs to:

  • have an active ABN and be registered for GST. To be accepted into the scheme, your registration information will be validated with your ABN. Check that your details are correct and make any updates via the Australian Business Register
  • operate in NSW in one of the eligible industries
  • be registered as COVID-safe and have a COVID Safety Plan in place.

For further eligibility requirements including eligible industries, or to participate in the program, please see the Dine & Discover NSW registration page. COVID-safe businesses must follow public health orders. 

Got a question on the tax implications of a state government voucher subsidy scheme in your business? Get in touch with our Tax & Accounting team who will be able to assist you on 02 9981 2300.

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