Carry-forward Unused Superannuation Contributions 14th April 2021

From 2019-2020, carry-forward rules allow you to make larger concessional contributions if you haven’t used all of your concessional cap in an earlier year, without having to pay extra tax.

If you make or receive concessional superannuation contributions of less than the annual concessional contributions cap of $25,000 pa, you may be able to accrue these unused amounts for use in subsequent financial years.

Concessional contributions include contributions from employment, salary sacrifice and after-tax personal contributions.

2018/19 was the first financial year you could accrue unused cap amounts and these amounts can be used from 1 July 2019. Unused cap amounts can be carried forward for up to five years before they expire.

To use your unused cap amounts you need to meet two conditions:
• Your total super balance at the end of 30 June of the previous financial year is less than $500,000;
• You made concessional contributions in the financial year that exceeded your general concessional contributions cap ($25,000).

The oldest available unused cap amounts are used first. For example, unused cap amounts from 2018-19 would be applied to increase your cap first before unused cap amounts from 2019-20.

Important things to consider:
• To use up carried forwards cap amounts, you may want to make salary sacrifice or personal deductible contributions (will help reduce tax payable);
• You can’t access your super until you meet a condition of release such as reaching preservation age and retiring, ceasing employment on or after age 60 or turning 65.

Should you have any queries or require further information, please contact our office – (08) 8431 1644.

Boosting Apprenticeship Commencements Program 7th April 2021

Under the Boosting Apprenticeship Commencements Program, employers may be eligible to receive a wage subsidy if they employ an Apprentice.

Any business or group training organisation that engages an apprentice between 5 October 2020 and 30 September 2021 may be eligible for a subsidy of 50 per cent of wages paid to a new or recommencing apprentice or trainee for a 12-month period from the date of commencement, to a maximum of $7,000 per quarter.

Further, there is no cap on the number of eligible trainees/apprentices under the program.

The government said it will extend the program for a full 12 months for new apprentices and trainees signed up prior to 30 September 2021.

It is estimated the expansion will generate around 70,000 new apprentice and trainee places, with the government investing around $1.2 billion.

Director ID Deadline – YOU CAN’T HIDE BEHIND THE MASK 30th March 2021

The new dates have been announced as the government looks to introduce the director ID regime to prevent illegal phoenixing by ensuring directors can be traced across companies, while also preventing the use of fictitious identities.

The new regime will require all directors to provide a number of documents to establish their identity with the Commonwealth Registrar in order to receive a unique director ID, which they will keep permanently, even if they cease to be a director.

The testing period is anticipated to end by 31 October. Once the testing period concludes, existing directors will be required to obtain a director ID by 30 November 2022.

The Commonwealth Registrar, operating as a separate statutory function of the ATO, will now conduct testing of the director ID system by inviting a controlled number of existing directors “to ensure the new platform delivers a robust, reliable and consistent user experience”.

This time frame will apply for both existing directors who were appointed prior to the commencement of the director ID regime and directors appointed during the testing phase.

Individuals who are seeking appointment after 30 November 2022 will be required to obtain a director ID prior to being appointed as a director.

The Treasury expects the director ID regime to cover 10 per cent of Australia’s 25.7 million population.
There will be civil and criminal penalties for directors who fail to apply for a director ID within the applicable time frame, and for conduct that undermines the new requirements, including providing false identity information to the Registrar or intentionally applying for multiple director IDs.

Directors of Indigenous corporations which are governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) will be required to get a Director Identification Number (Director ID) by 30 November 2023.

Directors of an organisation registered under the Corporations Act can face a civil penalty of 5,000 penalty units (currently $1.11 million), while directors of a CATSI organisation can face a civil penalty of up to $200,000.

Super Contribution Caps Set To Increase From 1 July 2021 1st March 2021

From 1 July 2021, the concessional and non-concessional contribution caps are set to increase due to indexation for the first time ever since July 2017.

The concessional contribution cap, currently set at $25,000 will increase to $27,500 from 1 July 2021.

The non-concessional cap will also increase from $100,000 to $110,000 from 1 July 2021.

In addition, the maximum amount a member who is under 65 at 1 July 2021 can contribute under the non-concessional contribution cap bring-forward rule is also set to increase from $300,000 to $330,000.

Therefore, only members who are aged under 65 at the beginning of the financial year will be eligible to trigger the bring-forward rule.

For clients who have already triggered the bring-forward rule, they won’t be able to make extra non-concessional contributions due to the increased cap until their bring-forward period expires.

The $1.6 million general transfer balance cap is also increasing to $1.7 million from 1 July 2021.

Should you need more information, please give us a call at the office (08) 8431 1644.

Alert Over New TFN Scam 23rd February 2021

The ATO are receiving increasing reports of people losing money to automated phone scams.

The new scam involves a robo-call impersonating the ATO with a pre-recorded message informing a target that their TFN has been suspended following suspected fraudulent activity.

The victim is then persuaded to transfer money from their bank account to a fake ATO holding account to “protect” their funds.

According to the ATO, 638 reports of this scam have been received since the start of the year, with seven victims losing nearly $118,000. Whilst the number of people paying these scammers is low, the large amounts being lost per person is alarming.

Instead of scammers asking for a specific amount of money, they’re requesting victims to transfer every last dollar in their bank account. What’s most malicious is that, these scammers are stealing money under the guide of saving it from other fraudsters trying to access the victims account.

This is a reminder to everyone to keep their guard up when answering any unexpected calls.

Business Advisory Services Program 8th February 2021

We are thrilled to announce that Henson Lloyd Accountants, has been approved as a provider of the SME Business Advisory Services Program run by the Department for Innovation and Skills.

The SME Business Advisory Services Program helps eligible small and medium sized businesses access professional services to grow and transform their business. This initiative is open to any business type or industry sector.

Applicants are eligible to apply for a maximum of $10,000 (excluding GST) of matched funding to get access to professional business advice in key areas. If approved, this funding can help support business growth and transformation, and contribute to future business viability.

To be eligible, business applicants must:
• be a business whose operations are primarily based in South Australia
• have less than 100 full time equivalent employees
• be looking to transform and grow their business
• hold an Australian Business Number (ABN)
• not be a public company, charitable business or body corporate under the Body Corporate and Community Management Act 1997
• be a sole trader, partnership, co-operative, private company or trust that carries on a for-profit business
• have a business that is being developed and in the opinion of the Department will be developed into a for-profit business that will be carried on.

Professional services which businesses can access through the funding includes:
• business planning
• marketing
• e-commerce
• finance matters
• workforce planning
• transformation of business and operating models
• identification of new business opportunities, including research and development
• analysis of growth opportunities
• information technology
• business future proofing, including how to maximise technology
• business continuity planning (including both emergency planning and managing occurrences such as supply chain disruptions)
• other advice as deemed appropriate by the assessment panel where the Applicant can demonstrate benefit of transformation and growth to their business.

Applications must be received by Dept for Innovation & Skills by 5:00pm 17 May 2021

All expenditure must be incurred by 30 June 2021.

If you are interested, please contact Wayne or one of the team to discuss both eligibility criteria and opportunities to help your business transform and grow in 2021. 

JobMaker Hiring Credit 14th January 2021

The JobMaker Hiring Credit will give businesses incentives to take on additional young job seekers.
Employers do not need to satisfy a decline in turnover test to be eligible.

The JobMaker Hiring Credit will be available to employers for each new job they create over the next 12 months for which they hire an eligible young person, aged 16 to 35 years old.

From 7 October, eligible employers will be able to claim $200 a week for each additional eligible employee they hire aged 16 to 29 years old; and $100 a week for each additional eligible employee aged 30 to 35 years old.

New jobs created until 6 October 2021 will attract the JobMaker Hiring Credit for up to 12 months from the date the new position is created.

To be eligible, the employee must have received the JobSeeker Payment, Youth Allowance (Other), or Parenting Payment for at least 28 consecutive days within the 84 days prior to the start of employment.

Visit the ATO website via the links below for more information:
JobMaker Hiring Credit
JobMaker Hiring Credit Guide
JobMaker Eligible Employers
JobMaker Key Dates
JobMaker Fact Sheet

Should you require any further information or assistance, please do not hesitate to contact our office (08) 8431 1644.

JobKeeper Key Dates Extended 18th December 2020

The ATO have given us all some breathing space to enjoy the festive season .

In a nut-shell the ATO have extended the JobKeeper lodgement due dates, the extensions are as follows:

If you are currently in receipt of JobKeeper (Phase 2) – the normal date for lodgement of your monthly declaration would have been – by 14 January 2021 – this has been extended to 28 January 2021.

If you are determining eligibility for JobKeeper Phase 3 – the forms for this will be available from 4 January 2021 and must be submitted by 31 January 2021 to receive JobKeeper for the month of January. Later submission is acceptable if you are not going to claim for January wages.

If you are eligible for JobKeeper Phase 3 – you will need to ensure you have paid your eligible employees the fortnightly amounts of either $1,000 for Tier 1 or $650 for Tier 2 – these payments must be made to your employees by Sunday 31 January 2021 to meet the wage condition.

The link to read more about the extension is here:

The link to determine Tier 1 and Tier 2 wage levels is here:

Eligibility determination for JobKeeper extension 2 (Phase 3)

As with the most recent phase of JobKeeper (Phase 2), eligibility is determined by comparing your BAS figures for the same quarter last year. To clarify:
•    if you report your BAS on a cash basis you need to compare cash (monies received) for the periods,
•    if you report your BAS on an accruals basis you need to compare accrual figures (invoiced amounts) for the periods.

Should your results of the above not satisfy the 30% decline and you believe you should be eligible, there are further tests that can be undertaken, however we recommend you seek our assistance with these tests.

State Government Small Business Grant – Round 2 11th November 2020

A second round for the State Government Small Business Grant has been announced for those who are on JobKeeper 2.0.

The second round of the Small Business Grant includes a $10,000 grant for eligible small businesses that employ staff and are receiving JobKeeper (2.0) from 28 September 2020.

The second round of the Small Business Grant also introduces a $3,000 grant for small businesses that do not employ staff, are operating from a commercial premises, and are receiving JobKeeper (2.0) from 28 September 2020.

Visit the Treasury website for more information:

Applications for the second State Grant close 14th December 2020. Please contact us at the office should you require any assistance with the application process – 08 8431 1644

CLICK HERE to complete your application.

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 or the ATO Fact Sheet.