While some sectors of the economy is suffering, others are booming, if you’re lucky enough to have a small business in a rapidly growing sector, you may be considering a change from a relatively simple sole trader business structure to a more formal structure such as a company or a trust. Changes such as this are complex with each structure having its own distinct advantages and disadvantages. Before you consider a change, experts should be consulted to avoid costly mistakes which may stymie the success of your business.

Many state governments are providing further assistance to a range of their residents to soften the blow of the COVID-19 pandemic. Depending on which state you or your business is situated, there may be further help in the form of payroll tax deferrals or waivers, stamp duty discounts, land tax relief, grants, and extensions of tenancy protection measures. Not surprisingly, the Victorian state government has provided the most comprehensive range of support for small businesses, licensed venues, regional/holiday areas and businesses in general.

Among the many unintended consequences of COVID-19, businesses that provide cars to their employees may now be on the hook for more FBT. Under the FBT regime, where an employee garages a work car at home, the business is deemed to be providing a car fringe benefit. However, with most people still working from home, the ATO notes that this could create unreasonable consequences for businesses. As such, it has outlined certain conditions where it will accept that a business is not holding the car for the purpose of providing fringe benefits to an employee.