Weekly Digest – 1 December 2021


Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

Q3 Economic Decline Not as Bad as Feared

As the Delta variant put half the population under lockdown, latest data showed Q3 GDP declined by 1.9%. However, this figure was still better than forecasts of a 2.7% decline, and relatively moderate compared to the 6.8% quarterly fall last year when the pandemic first struck.

From 9.6% in Q2, the annual pace of growth slowed to 3.9%. Yet, this again beat forecasts of 3.0%.

Manufacturing Industry Rebounded in November

After several months of flat results due to the Delta variant, the manufacturing industry recovered in November. The Australian Industry Group performance of manufacturing index rose by 4.4 points to 54.8.

However, there are still some concerns about the reliability of supply inputs and the worsening labour shortages.

FBT Implications of Christmas Parties

As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organising gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

  • Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
  • Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
  • Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

If you need help with your FBT, get in touch with us today to avoid running into problems with the ATO.

Upcoming Key Dates for December 2021

Here are the upcoming key dates for the month of December:

21 December

  • November monthly BAS due

Support for Apprentices to be Expanded

The $3.9 billion Boosting Apprenticeship Commencements program will extend support into the second and third year of an eligible Australian Apprenticeship through the $716 million Completing Apprenticeship Commencements program.

From October, eligible employers will receive a 10% wage subsidy in the second year of an eligible apprenticeship, and 5% in the third year. The government’s investment is expected to continue to support the 270,000 anticipated commencements under the Boosting Apprenticeship Commencements program from October 2020 to March 2022.

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