News

Extension of the JobKeeper Payment 21st September 2020

The JobKeeper Payment extension has now been registered for eligible businesses and not-for-profits until 28 March 2021.

The changes take effect from 28 September 2020 and will see the introduction of tier 1 and tier 2 JobKeeper Payment rates for the periods:
• 28 September 2020 to 3 January 2021
• 4 January 2021 to 28 March 2021.
JobKeeper Payment rates for employees will change based on the total hours worked during their reference period.

To be eligible for the JobKeeper extension, you must satisfy the decline in turnover test. Your GST turnover for the quarter ending 30 September 2020 (July, August and September) must have declined by 30% in comparison to your GST turnover for the quarter ending 30 September 2019.

To claim JobKeeper after 28 September 2020, you must:
• nominate the rate you are claiming for each eligible employee and business participant
• demonstrate a decline in actual GST turnover relative to a comparable period.


Learn more about the tier 1 and 2 rates, when they apply and other changes to JobKeeper at ato.gov.au/jobkeeperextension or the ATO Fact Sheet.

JobKeeper 2.0 Stimulus Calculator 24th August 2020

View our new JobKeeper 2.0 Stimulus Calculator to determine your on-going income eligibility for JobKeeper beyond September 2020.

Click the link below to view the calculator.

We have designed this to help determine if your business meets the eligibility requirements to receive the extended JobKeeper payment as recently announced by the Federal Government. The steps to complete the spreadsheet are outlined below;

1. Replace *Business Name* with the name of your business.

2. In row 11, input your monthly revenue figures for the months of July, August and September 2019.

3. In row 15, input your monthly revenue figures for July, August and September of this year. The chart in rows 23-24 will then provide a graphical display of how you are tracking with regard to eligibility.

4. In row 27, if you incurred an overall downturn of 30% or more, you are eligible for the first phase of the JobKeeper 2.0 Stimulus.

5. Save this spreadsheet as you go, you are welcome to email your accountant at Henson Lloyd to discuss further.

If you have any issues with accessing the Calculator, please contact our office and we will be more than happy to assist you.

 

View Calculator Here – Jobkeeper Phase 2 Calculator

JobKeeper Recipients – Ensure you comply with new legislation 21st August 2020

Urgent Action Required

The Government has amended the JobKeeper rules to allow more employees to qualify for the JobKeeper payment. This is achieved by extending the eligible employee test to also include eligible employees who were employed on 1 July 2020 (in addition to those employed on the original 1 March 2020 employment date), where they are not currently nominated for JobKeeper payments with another entity.

As a result, more employees may qualify for JobKeeper payments from 3 August 2020 (i.e., JobKeeper fortnight 10), if they were employed on 1 July 2020 and meet the other eligibility criteria.

This includes employees who:

  • were hired after 1 March 2020 (and are still employed on 1 July 2020);
  • satisfied the 12-month employment requirement under the definition of a ‘long-term casual employee’ for JobKeeper purposes by 1 July 2020 (where they had not previously satisfied this requirement by 1 March 2020); or
  • did not qualify on 1 March 2020 due to their age or visa status but have since met the relevant requirements by 1 July 2020 (e.g., employees who have since obtained the necessary visas).

Importantly, as part of these recent modifications to the JobKeeper scheme, participating employers must take action immediately to ensure that any newly eligible employees (as a result of these recent changes) are provided with an employee nomination form by Monday 24 August 2020. This is to ensure compliance with the ‘one in, all in’ principle, which broadly requires all eligible employees to be offered the opportunity to receive JobKeeper payments via their eligible employer who has opted to participate in the JobKeeper scheme.

Ultimately, the responsibility is on employers to ensure that all of their employees who are now eligible for JobKeeper payments as a result of the new 1 July 2020 test date are given the opportunity to be included.

The following checklist provides a summary of the key dates (and actions) that participating JobKeeper employers must consider in relation to their newly eligible employees as a result of the new 1 July 2020 eligible employee test.

 

Applicable Date

 

Action Required

 

By Monday 24 August 2020

 

Provide all newly eligible employees under the 1 July 2020
eligible employee test with an employee nomination form. 
By Monday 31 August 2020

 

Satisfy the $1,500 ‘wage condition’ for each newly eligible
employee (where they have nominated with the employer) for
JobKeeper fortnights commencing 3 August 2020 and 17
August 2020 (i.e., JobKeeper fortnights 10 and 11). 
From 1 September 2020
(the August monthly declaration must be lodged by
14 September 2020)
Claim JobKeeper payments for the newly eligible employees
who have agreed to be nominated for the JobKeeper scheme
with the employer (along with existing employees) by lodging
the August 2020 monthly declaration.

 

For more information, please refer to the ATO Media Release of 19 August 2020 More employees now able to access JobKeeper and the ATO’s website.

JobKeeper 3.0 – Update 14th August 2020

On 21 July 2020, the Government announced that the JobKeeper Payment (‘JKP’) would be extended until 28 March 2021 (i.e., for a further six months beyond its original end date of 27 September 2020).

As a result, JKPs would now be made over two separate extension periods, being:
• Extension period 1 – which covers the seven new JobKeeper fortnights that commence on 28 September 2020 and end on 3 January 2021; and
• Extension period 2 – which covers the six new JobKeeper fortnights that commence on 4 January 2021 and end on 28 March 2021.

The adjustments contained within JobKeeper 3.0 will apply nationwide, and the crucial amendments include the following:
• Adjustments to employee eligibility – From 3 August 2020, the relevant date of employment (which is used to determine an employee’s eligibility to JKPs) will move from 1 March 2020 to 1 July 2020. This is designed to increase employee eligibility for both the existing JKP scheme, as well as for the new extension periods from 28 September 2020. Casual employees will still be required to have been employed on a regular and systematic basis for a minimum of 12 months (as is required under the existing JKP scheme).
• Adjustments to the ‘Decline in Turnover Test’ – To qualify for the JKP in the extension periods, businesses will now only have to demonstrate that their actual GST turnovers have significantly decreased in the previous quarter under JobKeeper 3.0.

Importantly, the dual payment rate system originally proposed in JobKeeper 2.0 will remain, with the full rate of payment decreasing from $1,500 to $1,200 per fortnight from 28 September 2020
and then to $1,000 per fortnight from 4 January 2021.

Please be advised, this is not as yet legislated and is subject to change.

Should you require any further information on this matter, please contact our office (08) 8431 1644 or email hl@hensonandco.com.au.

One-Off Pandemic Leave Payment 4th August 2020

Prime Minister Scott Morrison has announced that employees who need to self-isolate in accordance with public health orders but have no sick leave available will be able to access a one-off pandemic leave disaster payment.

In a press conference today, Mr Morrison said those with no sick leave available to them will be eligible for a $1,500 payment for the fortnight they would be required to be in isolation.

He said that payment will be modelled on the exact same set of criteria that the Victorian government has put in place for it’s paid pandemic leave scheme.

“Those payments are principally made to those who are on short-term visas who otherwise wouldn’t have accessed Commonwealth payments,” Mr Morrison said.

“We will make sure that everyone else who finds themselves in this situation and they don’t have that leave available through their sick leave because it’s been exhausted will get a $1,500 payment for that fortnight”.

The announcement comes after both the Business Council of Australia and the Australian Council of Trade Unions united to lobby the government earlier today to implement a paid pandemic leave scheme as COVID-19 transmission in workplaces spikes in Victoria.

 

Should you have any queries, please do not hesitate to contact our office – (08) 8431 1644

It’s Tax Time Again – Receiving your Payment Summary 30th June 2020

For Employees

The way you receive your payment summary is changing

Many employers are now required to report your pay, tax and super information direct to the ATO each payday, so you can find all your information in one place when you need it. All employers will eventually report this way, and most are.

  • An employer who does report to the ATO this way will not have to give you a payment summary. Instead, you will get an end-of-year income statement in ATO online services through MyGov.
  • An employer who does not report to the ATO this way will still need to give you a payment summary at the end of the financial year (as they have previously).

Your payment summary information will be available in the following ways:

  • ATO Online Services via MyGov
  • Your Employer
  • Via your Tax Agent.

If you have not as yet set up a MyGov account, please follow this link:

MyGov – Create New Account

 

For Employers

If you are enrolled in STPR, the way you finalise your payroll has changed. The links for the new process in both Xero and MYOB are provided below:

Xero – Single Touch Payroll

MYOB – Single Touch Payroll

 

If you have any queries regarding end of year payroll processing, please contact our office – (08) 8431 1644.

June BAS Cash Flow Boost 24th June 2020

The ATO is due to disburse the much-anticipated additional cash-flow boosts to eligible employers via their BAS lodgements from 1 July 2020, and has issued some guidelines to help businesses understand the process.

Employers that have received the initial cash-flow boost, delivered as credits in the activity statement system (in either their March 20 quarterly BAS and/or April 20 & May 20 IAS), are eligible for the second round when they lodge their activity statements for each monthly or quarterly period from June to September 2020.

In a new notice published this week, the ATO has explained that the additional amount will be equal to the total initial cash-flow boost received by businesses and will be split evenly over the lodgements for the periods June to September.

This means that businesses lodging quarterly will receive 50 per cent of their total initial cash-flow boost for each activity statement, while those lodging monthly will receive 25 per cent per statement.

An example provided by the Tax Office shows that if an employer, lodging quarterly, received an initial cash-flow boost of $10,000 (the minimum credit), they will receive two additional boosts of $5,000 each when they lodge their June and September activity statements (BAS).

Similarly, a business lodging monthly that initially received a total of $50,000 (the maximum credit) will receive four payments of $12,500 when they lodge their June to September activity statements (BAS & IAS).

The ATO has cautioned businesses that may have revised their activity statements after lodgement that this may affect the amount of cash-flow boost they were due to receive.

 

If you would like more information on what Cash Flow Boost you could be expecting in your upcoming BAS, or if you want to ensure you are utilising the full potential of the Cash Flow Boost please contact us as soon as possible to ensure you do not miss out – (08) 8431 1644.

Instant Asset Write-Off Extension 12th June 2020

It was announced on Tuesday, the Government will extend the $150,000 instant asset write-off until 31 December 2020.

Prior to this announcement, the Instant Asset Write-Off threshold was set to reduce to $1,000 from 1 July 2020.

If you’ve purchased or are planning to purchase assets for your business, you may be eligible to claim an immediate deduction for assets less than $150,000.

The following tips can ensure you get your claim right:

  • check if you’re an eligible business
  • both new and second-hand assets can be claimed, provided each asset costs less than $150,000
  • assets must be first used or installed ready for use between 12 March and 31 December 2020 (Before 30 June 2020 in order to claim in 2020 Financial Year)
  • a car limit applies to passenger vehicles. The limit is $57,581 for the 2019–20 income tax year
  • if your asset is for business and private use, you can only claim the business portion
  • different eligibility criteria and thresholds apply to assets first used, or installed ready for use, prior to 12 March 2020.

If you require any assistance or further information, please do not hesitate to contact our office. We are more than happy to help!

EOFY Tax Planning Strategies 11th June 2020

All taxpayers are allowed to arrange their affairs in a manner that remains legal but which minimises their taxation liabilities.

Income tax is one of the largest expenses for most businesses and individuals, so it requires careful planning, budgeting and monitoring.

It is possible to manage your taxes and gain control over their effect on your finances through Tax Planning Strategies, such as the following: 

Purchase of Assets:
Purchase of assets costing $150,000 or less can be claimed 100% as a tax deduction.
This threshold is for EACH asset purchased, there is no limit to the number of assets you can buy and includes second hand assets.
If a commercial car is purchased this can be claimed 100%.
If a non-commercial car is purchased, you can claim a % up to the tax deductible limit of $52,346 ex GST for business use.

Prepayment Strategies:
Small Business Entity taxpayers making prepayments before 1 July 2020 can choose to claim a full deduction in the year of payment where they cover a period of no more than 12 months (ending before 1 July 2020).

Superannuation:
Contributions up to $25,000 to a complying superannuation fund can be tax deductable, to the extent contributions are actually made (i.e., they cannot be accrued but must be paid by 30 June).

If you would like to discuss any of the above or other tax planning strategies, please contact our office.

HomeBuilder Scheme Announced – $25K to build or renovate 4th June 2020

The government has announced the HomeBuilder scheme, which will see eligible owner-occupiers who are either building or undertaking a substantial renovation given $25,000 for doing so. But who will actually benefit from the stimulus?

HomeBuilder will provide eligible owner-occupiers, inclusive of first home buyers, a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020.

Construction works on the home must commence within three months of the contract being signed.

Who is eligible for HomeBuilder?

To access HomeBuilder, property purchasers and renovators must be an owner-occupier of the property.

They must also:

  • Be a natural person (not a company or a trust)
  • Be aged 18 years or older
  • Be an Australian citizen

Eligibility will also require having an income below one of the following income caps:

  • $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
  • $200,000 per annum for a couple based on both 2018-19 tax returns or later

The building contract must be entered into between 4 June 2020 and 31 December 2020 and must fall into either of the following categories:

  • The construction of a new home must be for the purpose of being a principal place of residence, where the property value (of the house and land) does not exceed $750,000; or
  • Substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million.

Construction must be commenced within three months of the contract details.

According to the Treasury, HomeBuilder will complement all existing state and territory First Home Owner Grant programs, stamp duty concessions and other grant schemes.

It will also complement the Commonwealth government’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

Who is not eligible for HomeBuilder?

  • Owner-builders and anyone who is seeking to build a new home to be used as an investment property will not be eligible for HomeBuilder.
  • Investors seeking to renovate an existing home in use as an investment property will also not be eligible for the scheme.