Menu

Adams Triglone Blog

The ATO Increases the Instant Asset Write-off

What is an Instant Asset Write-off?

The instant asset write-off allows small to medium-sized businesses to claim immediate deductions for plant and equipment asset purchases (both new and second-hand). Equipment includes vehicles, tools, machinery and office equipment. The asset must be installed and/or used in the income year you're claiming for.


How much can I write-off?

Originally the maximum threshold was $30,000 but now this has been increased to $150,000 for businesses with aggregated annual turnover between $50m-$500m. The write-off threshold is dependent on your annual turnover. This applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe.


The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets.

Eligibility to use instant asset write-off depends on:

  • Aggregated turnover (the total ordinary income of your business and that of any associated businesses)

  • Date the asset was purchased and when it was installed or first used

  • Cost of each asset being less than the threshold.

From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.

Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.

Find more information and apply here: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/


Six-month moratorium on residential tenancy evictions

    The NSW Government is introducing measures to help landlords and tenants work together. The support package includes a six-month moratorium on landlords making applications for evictions due to rental arrears:

    • for tenants who are financially disadvantaged by COVID-19, and 
    • where landlords and tenants try to negotiate rental reductions in good-faith and
    • it would not be fair and reasonable in the circumstances to terminate the tenancy.

    As well the moratorium on applications for forced evictions due to rental arrears, the package will also immediately:

    • put a 60 day stop on new termination notices and termination applications to the NSW Civil and Administrative Tribunal where these are for terminations due to rental arrears as result of a household being unable to pay their rent due to the COVID-19 emergency
    • extend notice periods for certain other lease termination reasons to 90 days.

    The support package is available to tenants who can prove they have been impacted by COVID-19. The tenant is considered to be impacted by COVID-19 when one or more rent-paying members of the household:

    • have lost their employment, income or work hours due to COVID-19 business closures or stand-downs, or
    • have had to stop working or substantially reduce work hours due to illness with COVID-19 or to care for a household or family member with COVID-19, and
    • this resulted in a reduction in the weekly household income (including government assistance) of at least 25%.

    https://preview.nsw.gov.au/covid-19/financial-support


    National Cabinet Mandatory Code of Conduct

     

    SME Commercial leasing principles during COVID-19

     

    The National Cabinet has agreed that states and territories will implement a mandatory code of conduct for commercial tenancies. More information here 

     

     

     

     

    Working from home because of Coronavirus? You're now eligible for a new 80 cents per hour tax shortcut

    The Australian Taxation Office (ATO) is introducing a new method which will allow people to claim 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses.

    The change will apply from March 1 to June 30, after which the ATO will review the arrangement for the next financial year as the COVID-19 situation progresses.

    "If you choose to use this shortcut method, all you need to do is keep a record of the hours you worked from home as evidence of your claim," Assistant Commissioner Karen Foat said.

    "We needed something to help people through this time to make it easier to work out how much they can claim.

    "We think the 80 cents per hour method is much simpler for people. It's quite generous and we envisage a lot of people will want to use that rate."

    Multiple people living in the same house will be able to claim the new rate.

    And the requirement to have a dedicated work-from-home area has also been removed.

     

    "This recognises that many taxpayers are working from home for the first time and makes claiming a deduction much easier," Ms Foat added.

    The new arrangement does not prohibit people from making a working-from-home claim under existing arrangements, where you calculate all or part of your running expenses.

    "Claims for working-from-home expenses prior to March 1, 2020 cannot be calculated using the shortcut method and must use the pre-existing working from home approach and requirements," Ms Foat said.

    If the Federal Government announces a prolonged lockdown extending into the next financial year the ATO is likely to extend the new claiming method.

    "We can't predict the future ... but if people are still being encouraged to work at home by the Government then we would extend it into the new financial year," Ms Foat confirmed.

     

    https://www.abc.net.au

     


     

    ATO crack down on COVID-19 tax rorts

    ATO crack down on COVID-19 tax rorts

    The ATO and the Tax Practitioners Board have now warned of "firm and swift action" against tax agents who defraud the government's stimulus package, with a dob-in hotline now established. 

    The joint regulators have now sent a clear warning to tax agents and their clients that any attempt to change a business structure or change the characterisation of payments to access the government's stimulus measures will be met with scrutiny and disciplinary action.

    The warning comes after the profession was advised to steer clear of engaging in schemes to help clients access the government's cash-flow boost measure, with promoter penalties, general interest charges and disciplinary action listed as potential consequences.

    The professional accounting bodies had also warned that the marketplace was rife with strategies to help businesses fall within the eligibility criteria to access the payments of up to $100,000.

     

    "The intent of the government's relief measures is to help the economy withstand and recover from the economic impact of COVID-19 by supporting businesses to manage cash-flow challenges and retain employees," a joint statement by ATO second commissioner Jeremy Hirschhorn and TPB chair Ian Klug said.

     

    "We ask that tax agents and businesses be mindful that it is not acceptable to backdate or artificially change a business structure or employment arrangements, including changing the characterisation of payments, in order to obtain a benefit or payment that would not otherwise have been paid.

     

    "The ATO and TPB will take firm and swift action should this be the case."

    www.accountantsdaily.com.au

    JobKeeper Payment - FAQs

    JobKeeper - Frequently Asked Questions

    WHAT IS THE JOBKEEPER PAYMENT? 

    The JobKeeper Payment is a payment made to eligible businesses and not-for-profits affected by the Coronavirus to support them in retaining employees. 

    Eligible businesses that elect to participate will receive a payment of $1,500 per fortnight per eligible employee to support the people they employed as at 1 March 2020 who are retained in employment.  

    Businesses must have paid their employees before they are entitled to receive the JobKeeper payment. Where an employee's total remuneration is less than $1,500 per fortnight (before tax), or has been stood down, the employer must provide the employee at least $1,500 per fortnight (before tax). Where an employee earns more than $1,500 per fortnight, employers can use the payment to subsidise the employee's wages. 

    Self-employed individuals will also be eligible to receive the JobKeeper payment. 

     

    WHEN WILL THE JOBKEEPER PAYMENT COMMENCE?

    The JobKeeper Payment will be available from 30 March 2020. 

     

    HOW LONG WILL THE JOBKEEPER PAYMENT LAST FOR?

     The JobKeeper Payment will be available for the period until 27 September 2020. 

     

    Employers 

    IS MY BUSINESS ELIGIBLE?

    Employers (including not-for-profits) will be eligible for the subsidy if:  

    • their business has a turnover of less than $1 billion (and if part of a group for income tax purposes, the group has a combined turnover of less than $1 billion) and estimate their turnover has fallen or will likely fall by 30 per cent or more; or  

    • their business has a turnover of $1 billion or more (or if part of a group for income tax purposes, the group has a combined turnover of $1 billion or more) and estimate their turnover has fallen or will likely fall by 50 per cent or more; or 

    • their business is not subject to the Major Bank Levy. 

    For charities registered with the Australian Charities and Not-for-profits Commission (ACNC), they will be eligible for the subsidy if they estimate their turnover has fallen or will likely fall by 15 per cent or more relative to a comparable period.  

    JobKeeper Payments are paid in respect of each eligible employee who was employed at 1 March 2020 and is currently employed by the business (including those who are stood down or re-hired).  

     

    WHAT TYPE OF ENTITIES ARE ELIGIBLE?  

    All business types, including not-for-profits, will be eligible with the exception of those listed below.  The following entities will not be eligible: 

    • Australian Government and its agencies,  

    • State and Territory governments and their agencies,  • Foreign governments and their agencies; 

    • Local council governments; 

    • Wholly-owned corporations of any of the above; and  

    • A business subject to the Major Bank Levy. Additionally, a company that is in liquidation, or a partnership, trust or sole trader in bankruptcy, will not be eligible.  

    Some sectors may not be eligible if they are separately provided with support from the Government that explicitly requires them to forgo access to the JobKeeper Payment. 

     

    WHAT DO I NEED TO DO IF I WANT TO PARTICIPATE? 

    Eligible employers need to determine if they want to participate in this program by electing into it. More details will be provided about how to do that.  The JobKeeper Payment will be administered by the ATO.  If you want to participate, you can register your interest on the ATO website to keep updated on information about the JobKeeper payment.  If you register you will receive updates and information from the ATO about how and when to claim the JobKeeper payment.  If you are a BAS or Tax agent you do not need to register each client separately, unless you are registering each client to receive the information directly.  

     

    HOW DO I WORK OUT WHICH OF MY EMPLOYEES ARE ELIGIBLE EMPLOYEES?

    You will only be able to claim the JobKeeper payment for eligible employees that were in your employment on 1 March 2020, and continue to be employed while you are claiming the JobKeeper payment.  

    An eligible employee is an employee who:  

    • is currently employed by the eligible employer (including those stood down or re-hired);   

    • is a full-time or part-time employee, or a casual employed on a regular and systematic basis for longer than 12 months as at 1 March 2020;  

    • was aged 16 years or older at 1 March 2020;   

    • was an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020; 

    • was a resident for Australian tax purposes on 1 March 2020; and  

    • is not in receipt of a JobKeeper Payment from another employer.  

    You can only claim JobKeeper payment for eligible employees if you pay the $1,500 per fortnight (before tax) to each eligible employee.  

    These payments should be made using your payroll system and reported to the ATO via Single Touch Payroll. This will support the online claim process when it is available.  

    If you do not report through Single Touch Payroll, you can still claim the JobKeeper payment; however there will be a manual claim process.  

    You will be required to advise your employees whether you have nominated them as an eligible employee for the purposes of the payment. 

     

    WHEN WILL I RECEIVE THE FIRST PAYMENT? 

    The first payments by the ATO will be received by employers in the first week of May. 

     

    HOW OFTEN WILL THESE PAYMENTS BE MADE?

     The payments will be made by the ATO monthly in arrears. 

     

    WHAT ARE THE ELIGIBLE PAYMENT PERIODS FOR REIMBURSEMENT FOR A JOBKEEPER SUBSIDY? 

    Employers will need to satisfy payment requirements for their eligible employees in respect of each 14 day period covered by the scheme. The first period starts on Monday 30 March 2020 and ends on Sunday 12 April 2020.  

    The payment requirement is that they pay their eligible employees a minimum of $1,500 per fortnight in the scheme payment periods. Where an employer pays their staff monthly, the ATO will be able to reallocate payments between periods. However, overall an employee must have received the equivalent of $1,500 per fortnight. 

    The final period will start on Monday 14 September 2020 and end on Sunday 27 September 2020.  

    IF I HAVE STOOD DOWN MY EMPLOYEES AFTER 1 MARCH 2020, AND ARE NO LONGER PAYING THEM, DO I NEED TO PAY THEM, FOR WHAT PERIOD AND BY WHEN?

     Yes. You can claim JobKeeper for employees that were stood down after 1 March 2020. To be eligible in relation to these employees, you will need to pay them a minimum of $1,500 per fortnight (before tax) for the payment periods of the JobKeeper Scheme.  

    The first payment period under the scheme is from 30 March 2020 to 12 April 2020. Where an employer pays their staff monthly the monthly payment must be equivalent to the required fortnightly payment. 

    For all following payment periods you will need to continue to pay your employees a minimum of $1,500 per fortnight (before tax), before the end of the payment period.  

     

    WHAT IS THE DEFINITION OF TURNOVER?   

    Turnover will be defined according to the current calculation for GST purposes and is reported on Business Activity Statements. It includes all taxable supplies and all GST free supplies but not input taxed supplies.  There are some modifications for businesses that are part of a GST group. Further information on GST turnover, and how to calculate it, is available at ato.gov.au. 

     

    IS THIS TURNOVER TEST RELATED TO ONLY TURNOVER IN AUSTRALIA, OR DOES IT INCLUDE OVERSEAS OPERATIONS AS WELL?

    Under the GST law, only Australian based sales are included and therefore, only Australian based turnover is relevant. A decline in overseas operations will not be counted in the turnover test. 

     

    MY BUSINESS HAS ONLY JUST STARTED OR MY BUSINESS HAS "LUMPY" INCOME. HOW CAN I SELF-ASSESS THAT MY TURNOVER HAS FALLEN 30 PER CENT?

    To establish that a business has faced or is likely to face a 30 per cent or more or 50 per cent or more fall in turnover, most businesses would be expected to establish that their turnover has fallen in the relevant month or quarter (depending on the Business Activity Statement reporting period of that business) relative to their turnover in a corresponding period a year earlier. 

    Where a business was not in operation a year earlier, or where their turnover a year earlier was not representative of their usual or average turnover, (e.g. because there was a large interim acquisition, they were newly established, were scaling up, or their turnover is typically highly variable), the Tax Commissioner will have discretion to consider additional information that the business can provide to establish that they have been adversely affected by the impacts of the Coronavirus. 

    The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in specific circumstances (e.g. eligibility may be established as soon as a business ceases or significantly curtails its operations). There will be some tolerance where employers, in good faith, estimate a 30 per cent or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall. 

     

    MY TURNOVER HAS NOT DECREASED BY 30 PER CENT THIS MONTH, BUT I BELIEVE IT WILL IN THE COMING MONTH. AM I ELIGIBLE?

    You can apply for the payment if you reasonably expect that your turnover will fall by 30 per cent or more (or 50 per cent or more for businesses with a turnover of $1 billion or more) relative to your turnover in a corresponding period a year earlier. The ATO will provide guidance about self-assessment of actual and anticipated falls in turnover. 

     

    IT IS UNLIKELY THAT MY TURNOVER WILL DECREASE BY 30 PER CENT IN THE COMING MONTH, BUT CAN I APPLY LATER IF MY TURNOVER DECREASES IN ONE OF THE SUBSEQUENT MONTHS? 

    If a business does not meet the turnover test at the start of the JobKeeper scheme on 30 March 2020, the business can start receiving the JobKeeper Payment at a later time once the turnover test has been met. In this case, the JobKeeper Payment is not backdated to the commencement of the scheme. Businesses can receive JobKeeper Payments up to 27 September 2020.  

    MY BUSINESS IS STILL OPERATING AND MY EMPLOYEES ARE STILL WORKING. HOW WILL MY PAYMENTS TO THEM BE AFFECTED?

    In many cases, your payments and obligations to eligible employees will not change. Your business, if eligible, will receive a $1,500 per fortnight subsidy to support their continued employment. However, if any eligible employee currently earns less than $1,500 before tax per fortnight, you will need to pay them $1,500 per fortnight before tax to receive the JobKeeper payment. 

     

    WHAT IF I PAY MY EMPLOYEES LESS THAN $1,500 PER FORTNIGHT BEFORE TAX?

      To be able to claim the JobKeeper payment for an eligible employee, that employee must be paid a minimum of $1,500 income per fortnight, before tax is withheld.  If you want to claim the subsidy for an eligible employee and they have not been paid $1,500 per fortnight since 30 March 2020, employers must pay a 'top-up' payment to employees so that they are eligible. The ATO will provide further guidance on how this will work. The employer will be reimbursed $1,500 per fortnight for each eligible employee.  Employers cannot pay their employees less than $1,500 per fortnight and be entitled to a payment for that employee.  

     

    WHAT IF I PAY MY EMPLOYEES MORE THAN $1,500 PER FORTNIGHT BEFORE TAX? 

    If the eligible employee is paid more than $1,500 a fortnight before tax, the employer will only be reimbursed $1,500 per fortnight.  

     

    IF I HAVE STOOD DOWN MY EMPLOYEES WITHOUT PAY AFTER 1 MARCH 2020 CAN I 'BACK PAY' THEM TO 30 MARCH 2020? 

    Yes. If you want to claim the JobKeeper Payment for your employees you will need to confirm your eligible employees want to be part of the scheme and arrange for them to be paid a minimum of $1,500 per fortnight before tax from 30 March 2020.  

     

    I LET MY EMPLOYEES GO AFTER 1 MARCH 2020. IF I RE-HIRE THEM, AM I ELIGIBLE TO RECEIVE THE PAYMENT?

    Yes. You can receive the payment if you re-hire any eligible employees you had at 1 March 2020. You can receive the payment even if you then need to immediately stand them down, so long as they remain employed. 

     

    WHAT HAPPENS IF I DON'T HAVE THE MONEY TO CONTINUE PAYING MY ELIGIBLE EMPLOYEES UNTIL THE PAYMENTS ARE MADE?

    The JobKeeper Payment is a reimbursement scheme that will be paid by the ATO monthly in arrears.  In cases where this may present cash flow difficulties, those businesses may want to speak to their bank to discuss their options. The banks have said businesses may be able to use the upcoming JobKeeper payment as a basis to seek credit in order to pay their employees until the scheme is making its first payments. 

     

    AM I REQUIRED TO PAY PAYGW AND SUPERANNUATION ON THE JOBKEEPER PAYMENT?

    You must pay a minimum of $1,500 per fortnight to your eligible employees, withholding income tax as appropriate. The $1,500 per fortnight per employee is a before tax amount. Where an employee is paid more than $1,500 per fortnight, the employer's superannuation obligations will not change. 

    Where an employee is having their wages topped up to $1,500 per fortnight by the JobKeeper Payment, it will be up to the employer if they want to pay superannuation on any additional wages paid by the JobKeeper Payment.  


    WHAT HAPPENS IF MY EMPLOYEE RESIGNS?

    If an employee for whom you are receiving the JobKeeper Payment resigns, you must notify the ATO. You may need to refund some money to the ATO. 

     

    I HIRED AN EMPLOYEE AFTER 1 MARCH 2020. CAN I RECEIVE THE JOBKEEPER PAYMENT FOR THEM?

    No. The employee must have been engaged as of 1 March 2020.  

     

    I PURCHASED A BUSINESS IN THE LAST 12 MONTHS AND RETAINED SOME CASUAL EMPLOYEES WHO WORKED FOR THE PREVIOUS BUSINESS OWNER. ARE THE CASUAL EMPLOYEES ELIGIBLE?

    Employers must assess whether their casual employees satisfy the test of working for 12 months on a regular and systemic basis. A casual may still meet this condition even if the entity operating the business has changed recently.  

     

    I ACCEPTED SOME CASUAL EMPLOYEES FROM ANOTHER MEMBER OF MY CORPORATE GROUP. ARE THE CASUAL EMPLOYEES ELIGIBLE?

    Employers must assess whether their employees satisfy the test of working for 12 months on a regular and systematic basis. A casual may still meet this condition even if they were they were transferred from another member of a corporate group within the last 12 months. 

    WHAT SHOULD I DO IF I WANT TO RE-HIRE AN ELIGIBLE EMPLOYEE WHO RECEIVED A REDUNDANCY PACKAGE?

    If an eligible employee has received a redundancy package and you wish to re-hire them, you will need to consult with the employee and consider prevailing workplace arrangements to settle redundancy terms.  

     

    WILL THE ATO USE THE JOBKEEPER PAYMENTS TO OFFSET A BAS DEBT?

    The payment will generally be paid directly to the employer and not used to offset tax liabilities, as the intent is that it is a payment that facilitates employers to pay their employees.  

     

    I RUN A LABOUR HIRE COMPANY. WILL EMPLOYEES BE ELIGIBLE IF THEIR 'HOST EMPLOYER' CLAIMS THE JOBKEEPER PAYMENT?

    Employees are only eligible in respect of their direct employer.  

     

    CAN I RECEIVE THE JOBKEEPER PAYMENT FOR EMPLOYEES IN RECEIPT OF WORKCOVER?

    Employees will not be eligible for the JobKeeper scheme if they are fully incapacitated, unable to work and being supported by a workers compensation scheme. In other cases, employees would be eligible as they are in an employment relationship with their employer, provided their employer has an obligation to pay some component of their salary or wages. If your employee is fully compensated under your workcover insurance, they will be ineligible for the JobKeeper scheme. 

     

    SOME OF MY EMPLOYEES ARE NOT ELIGIBLE EMPLOYEES FOR THE JOBKEEPER SCHEME. WHAT SUPPORT IS AVAILABLE FOR MY BUSINESS SO I CAN TRY AND RETAIN ALL OF MY EMPLOYEES?

    The Government is providing a range of support to businesses to address the significant economic consequences of the Coronavirus. The Government is boosting cash flow for employers by providing up to $100,000 to eligible small and medium-sized businesses, and not-for-profits, that employ people, with a minimum payment of $20,000. These payments will help businesses with their cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff. 

    Other measures to support businesses include temporary relief for financially distressed businesses, increasing the instant asset write-off and backing business investment.  

    Further information on the economic response to the Coronavirus is available on the Treasury website at treasury.gov.au/coronavirus.  

     

    Employees 

    HOW DO I KNOW IF I AM AN ELIGIBLE EMPLOYEE FOR THE JOBKEEPER PAYMENT?

    Eligible employees are employees who: 

    • are currently employed by the eligible employer (including those stood down or re-hired);   

    • are a full-time or part-time employee, or a casual employed on a regular and systematic basis for longer than 12 months as at 1 March 2020;  

    • were aged 16 years or older at 1 March 2020;   

    • were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;  

    • were a resident for Australian tax purposes on 1 March 2020; and  • are not in receipt of a JobKeeper Payment from another employer.  

     

    I AM AN ELIGIBLE EMPLOYEE IN AN ELIGIBLE BUSINESS. HOW MUCH WILL I RECEIVE?

    Eligible employees will receive, at a minimum, $1,500 per fortnight before tax. You will receive a payment from your employer.  

     

    I AM STILL WORKING OR ON PAID LEAVE AND EARN MORE THAN $1,500 PER FORTNIGHT BEFORE TAX. WILL MY PAY CHANGE?

    No. If you receive $1,500 or more in income per fortnight before tax, you will continue to receive your regular income according to your prevailing workplace arrangements. The JobKeeper Payment will assist your employer to continue operating by subsidising part of your income. 

     

    I AM STILL WORKING OR ON PAID LEAVE AND I EARN LESS THAN $1,500 PER FORTNIGHT BEFORE TAX. HOW MUCH WILL I RECEIVE?

    For eligible employees, if you receive less than $1,500 in income per fortnight before tax, your employer must pay you, at a minimum, $1,500 per fortnight, before tax. Your employer will continue to pay you your ordinary income according to your prevailing workplace arrangements and provide a 'top-up' so you receive $1,500 per fortnight, before tax.  

     

    I HAVE BEEN STOOD DOWN. HOW MUCH WILL I RECEIVE?

    If your employer is eligible for the JobKeeper Payment, and they elect to participate, your employer will receive $1,500 per fortnight for each eligible employee. They will be required to pay you $1,500 (before tax) per fortnight. The payment will be treated as income, and so will have tax withheld by your employer on your behalf. 

     

    I HAVE TAKEN UP OTHER WORK AFTER BEING STOOD DOWN. WILL I STILL RECEIVE A PAYMENT?

    Yes. The JobKeeper Payment is not income-tested, so you may earn additional income without your payment being affected as long as you are eligible and maintain your employment (including being stood down) with your JobKeeper-eligible employer. However, you can only receive the JobKeeper payment from one employer, your primary employer. 

     

    I WAS EMPLOYED ON 1 MARCH 2020, BUT I WAS STOOD DOWN OR LET GO AND I HAVE APPLIED FOR OR AM CURRENTLY RECEIVING INCOME SUPPORT (SUCH AS THE JOBSEEKER PAYMENT) FROM SERVICES AUSTRALIA. WILL I RECEIVE THE JOBKEEPER PAYMENT?

    You will be eligible for the JobKeeper Payment if you have been stood down from work, or if your former employer re-hires you. However, the JobKeeper Payment is treated as ordinary income for the purposes of social security payments. You must therefore report your change in circumstances to Services Australia if you are receiving income support, and this is likely to make you ineligible for the JobSeeker Payment or other income support payments or eligible at a reduced rate. 

     

    WILL MY EMPLOYER PAY SUPERANNUATION ON THE JOBKEEPER PAYMENT? 

    No superannuation guarantee payments are required to be paid on any additional payment made because of the JobKeeper Payment.  

     

    I STARTED WORK WITH MY CURRENT EMPLOYER AFTER 1 MARCH 2020. WILL I RECEIVE THIS PAYMENT FROM THAT EMPLOYER?

    No. The JobKeeper Payment supports businesses to maintain eligible employees who were in their employ on 1 March 2020. You may be eligible for the JobKeeper Payment if you are currently stood down by your 1 March 2020 employer or if you are re-hired by that employer.  

     

    I AM A CASUAL WORKER. AM I ELIGIBLE TO RECEIVE THE PAYMENT?

    You are eligible for the payment if you have been with your employer for 12 months at 1 March 2020 on a regular and systematic basis. Apart from this, casual employees are not eligible for the JobKeeper Payment. If you are ineligible for the JobKeeper Payment, you may be able to apply for support through Services Australia depending on your personal circumstances. 

     

    I AM ON A FIXED TERM CONTRACT WITH MY EMPLOYER. AM I ELIGIBLE TO RECEIVE THE PAYMENT?

    Fixed term contractors are eligible for the payment if you were employed at 1 March 2020 and meet the other eligibility criteria for the JobKeeper Payment. 

     

    I HAVE MULTIPLE EMPLOYERS. WILL I RECEIVE MULTIPLE PAYMENTS?

    No. Every employee is only able to receive one payment from one employer, their primary employer. Your employers who have elected to participate in the JobKeeper Payment scheme may ask you to indicate whether they are your primary employer. If you are employed by more than one employer, you should contact your employers and indicate to them which is your primary employer. The ATO will provide guidance on how to determine your primary employer. You can continue to receive non-JobKeeper supported income from your non-primary employer. 

    I AM A CASUAL EMPLOYEE AND THE BUSINESS OWNER CHANGED WITHIN THE LAST 12 MONTHS. AM I ELIGIBLE? 

    You may still be eligible if you have been working for the business for at least 12 months as at 1 March 2020 on a regular and system basis, even if the entity operating the business has changed recently. Your current employer will need to assess whether you meet this test.  

    I AM WORKING IN AUSTRALIA ON A TEMPORARY VISA. AM I ELIGIBLE?

    To be eligible for the JobKeeper Payment, an employee must be an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020.  

     

    I WAS WORKING IN AUSTRALIA ON 1 MARCH. I HAVE BEEN STOOD DOWN, AND RETURNED TO MY HOME COUNTRY. AM I ELIGIBLE?

    You may be eligible to receive the payment if you are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder who has temporarily left the country. You will be eligible for the payment if you are a resident of Australia for tax purposes and if you have been stood down from work, or if your former employer re-employs you. If you have ceased employment, and are not rehired, you will not be eligible for the payment. 

     

    I AM 15 YEARS OLD AND, APART FROM AGE, I MEET THE ELIGIBILITY CRITERIA. AM I ELIGIBLE FOR THE JOBKEEPER PAYMENT WHEN I TURN 16 LATER IN THE YEAR?

    No. Employees must be at least 16 years of age on 1 March 2020 to be eligible.  

     

    I AM ON UNPAID OR PAID LEAVE. WILL I RECEIVE THE PAYMENT?

    Yes, unless you are in receipt of Government Paid Parental Leave or Dad and Partner Pay. If you are an eligible employee and your employer is an eligible employer, they will receive the payment whether you are working, on leave, or have been stood down.  

    I AM NOT ELIGIBLE FOR THE JOBKEEPER PAYMENT. WHAT SUPPORT CAN I GET FROM THE GOVERNMENT?

    If you are not an eligible employee, you may be able to access income support through Services Australia.  More information is available on the Services Australia website at servicesaustralia.gov.au/individuals.  

     

    I AM RECEIVING WORKERS COMPENSATION. AM I ELIGIBLE?

    If you are still working - such as reduced hours - then you will be eligible to receive the JobKeeper Payment. However, if you are not currently working due to incapacity and you are being supported through workers' compensation arrangements then you will not be eligible for the JobKeeper Payment.  

     

    I AM RECEIVING PARENTAL LEAVE PAY OR DAD AND PARTNER PAY THROUGH SERVICES AUSTRALIA. AM I ELIGIBLE?

    For the period that you are receiving Parental Leave Pay or Dad and Partner Pay then you will not be eligible for the JobKeeper Payment.  

     

    I CURRENTLY HAVE A SALARY SACRIFICE ARRANGEMENT WITH MY EMPLOYER. CAN IT CONTINUE?

    Yes. The JobKeeper payment may be paid to an employee in cash or as a fringe benefit or extra superannuation contribution where the employee and employer agree. 

     

    Self-employed and other eligible businesses 


    I AM SELF-EMPLOYED. AM I ELIGIBLE FOR THE PAYMENT?

    Yes. People who are self-employed will be eligible for the payment provided, at the time of applying, they: 

    • estimate their turnover has or will fall by 30 per cent or more; 

    • had an ABN on or before 12 March 2020, and – either had an amount included in its assessable income for the 2018-19 year and it was included in their income tax return lodged on or before 12 March 2020 (or such later time as allowed by the Commissioner), or – made a supply during the period 1 July 2018 to 12 March 2020 and provided this information to the Commissioner on or before 12 March 2020 (or such later time as allowed by the Commissioner); 

    • were actively engaged in the business; 

    • are not entitled to another JobKeeper Payment (either a nominated business participant of another business or as an eligible employee);  

    • were aged at least 16 years of age as at 1 March 2020; and  

    • were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020.  

     

    MY BUSINESS IS A PARTNERSHIP. CAN EACH PARTNER RECEIVE A JOBKEEPER PAYMENT?

    No. Only one partner can be nominated to receive a JobKeeper Payment along with any eligible employees, noting a partner cannot be an employee.  

     

    CAN TRUSTS RECEIVE THE JOBKEEPER PAYMENT?

    Trusts can receive JobKeeper payments for any eligible employees. Where beneficiaries of a trust only receive distributions, rather than being paid salary and wages for work done, one individual beneficiary (that is, not a corporate beneficiary) can be nominated to receive the JobKeeper Payment.  

     

    I AM A COMPANY DIRECTOR THAT RECEIVES DIRECTOR FEES. AM I ELIGIBLE?

    An eligible business can nominate only one director to receive the payment, as well as any eligible employees. Only one person in a director capacity may receive the payment and that individual may not receive the payment as an employee. 

    I AM PAID AS A SHAREHOLDER. AM I ELIGIBLE?

    An eligible business that pays shareholders that provide labour in the form of dividends will only be able to nominate one shareholder to receive the JobKeeper Payment.  

     

    I RECEIVE RENTAL INCOME AS A LANDLORD BUT AM NOT REGISTERED AS A BUSINESS. AM I ELIGIBLE?

    No. Only businesses with employees or self-employed people are eligible for the JobKeeper Payment. 

     

    I AM SELF-EMPLOYED. HOW CAN I APPLY FOR THE JOBKEEPER PAYMENT? 

    The ATO will administer the program with an online application process. You may be asked to provide your ABN and a single Tax File Number for the eligible recipient of the JobKeeper Payment, and a declaration of business activity. 

     

    I AM SELF-EMPLOYED AND ALSO HAVE A JOB. AM I ELIGIBLE FOR THE JOBKEEPER PAYMENT?

    An individual can only receive JobKeeper Payments from one source. However, if you are eligible for a JobKeeper Payment, you can also receive income from other sources including another job. Other programs 

     

    WILL THE JOBKEEPER PAYMENT BE INCLUDED IN MY CHILD SUPPORT ASSESSMENT?

    The JobKeeper Payment is included in adjusted taxable income. Parents should continue to report any change to their income or wages as they normally would. A key principle of the child support scheme is that children are supported by their parents in accordance with their financial capacity to do so. 

     

    MY BUSINESS RECEIVED A WAGE SUBSIDY THROUGH AN EMPLOYMENT SERVICES PROVIDER. ARE WE ELIGIBLE TO RECEIVE THE JOBKEEPER PAYMENT? 

    There have been no changes to wage subsidies administered by employment services providers. The Government's announcement of the JobKeeper Payment is intended to encourage employers, who might make staff redundant due to the Coronavirus outbreak, to retain or rehire their employees. This measure is a temporary measure, accessed through the Australian Taxation Office. Where an employer received a wage subsidy when they engaged an employee, they can still access the JobKeeper Payment if all other eligibility criteria for this payment are met. 

     

    CAN EMPLOYERS RECEIVE BOTH THE JOBKEEPER PAYMENT AND THE SUPPORTING APPRENTICES AND TRAINEES WAGE SUBSIDY? 

    Eligible small businesses can receive the 50 per cent wage subsidy for apprentices and trainees in the Supporting Apprentices and Trainees measure from 1 January to 31 March 2020, and the JobKeeper Payment. Where small businesses receive the JobKeeper Payment, they are not eligible to receive the apprentice and trainee wage subsidy from 1 April 2020 onwards. Further information on the Supporting Apprentices and Trainees measure is available on the Treasury website at treasury.gov.au/coronavirus/businesses.  Compliance  

     

    WHAT WILL BE DONE TO ENSURE COMPLIANCE?

    This program will be subject to ATO compliance and audit activities. There will be a positive obligation on employers to establish their eligibility and that of their employees. In addition, the ATO will cross-check payments with Services Australia data, and data from other government agencies, and undertake activities designed to identify multiple or ineligible payments to individuals. 

    WHAT IS THE GOVERNMENT GOING TO DO TO ENSURE COMPANIES DON'T MANIPULATE THEIR TURNOVER TO ENSURE THEY QUALIFY?

    The ATO will provide guidance to help businesses self-assess their eligibility. This will include for circumstances that do not fit neatly into more general circumstances that the majority of businesses are in.  The Government will include appropriate integrity rules to prevent employers from entering into artificial schemes in order to get inappropriate access to payments. 

    There are serious consequences, including large penalties and possible imprisonment, for those trying to illegally get benefits under the scheme. 

     

    WHAT IMPACT DOES THE JOBKEEPER PAYMENT HAVE ON WORKPLACE ENTITLEMENTS AND OBLIGATIONS? 

    Employers must continue to comply with their obligations in the Fair Work Act. The JobKeeper Payment does not remove any workplace protections for employees. Enforcement in relation to Fair Work entitlements will continue to sit with the Fair Work Ombudsman.  Enforcement and compliance to ensure the JobKeeper Payment is passed on to employees will be done by the ATO.

     

    Update taken from  https://treasury.gov.au/

    The Coronavirus scams you need to watch out for

    The Coronavirus pandemic has changed our way of life and while many people have responded to situation with kindness and compassion, there are some people who are taking full advantage of the pandemic.

    Scammers try to steal your personal and access financial information for the personal gain.

     

    Some of the scams that have been reported so far:

     

    Flight cancellations

    So many people have had to cancel or reschedule flights and scammers are taking advantage of this by calling people and pretending to be the airline. Be careful if you receive a call like this, most airlines are offering credits, not refunds.

     

    Phishing emails

    Phishing emails and phone calls impersonating entities. These include the World Health Organisation, government authorities, people confirmed to have the coronavirus, and legitimate businesses such as travel agents and telecommunications companies

     

    Impersonations 

    Scammers are impersonating health experts and are requesting personal information and offering health advice.

     

    Other scams

    • people receiving misinformation about the Coronavirus, being sent by text, social media and email
    • products claiming to be a vaccine or cure for the Coronavirus
    • investment scams claiming Coronavirus has created opportunities.


    Protecting yourself?

    • Be aware of fraudulent emails, phone calls and text messages
    • Be careful when shopping online and only use reputable websites and payment methods
    • Don't click on links or attachments sent from email addresses you don't recognise
    • Keep your anti-virus software up to date
    • As always, please do not give out your personal information over the phone or email. If in doubt, call the organisation yourself to check the authenticity

    PM says financial hardship will be reflected in rental waiver

    Addressing the country today, Prime Minister Scott Morrison said that the anticipated industry code of practice for commercial tenants, designed to address particularly the small and medium sized tenancies, has not yet been finalised.

     

    "An industry code of practice for commercial tenancies has been worked on by the various stakeholder groups. That industry code has not got to the point that we believe it needs to get to ensure a sufficient security for tenants and landlords affected," the Prime Minister said.

    "I had hoped we had been in a position to finalise this today, and we're very close. "

    He explained that the "code of behaviour", mandatory under state and territory laws, will apply to tenants with turnover under 50 million, that are a part of the JobKeeper program.

    PM Morrison suggested that landlords will be forced to give rental reduction to tenants who have suffered revenue loss. 

    "The turnover reduction of the tenant needs to be reflected in the rental waiver of the landlord," said Mr Morrison.

    "How that's done in the lease is up to the landlord and the tenant."

    The PM assured landlords that they too will be protected, with banks expected to step up and join the table.  

    "The banks will need to come to the party as well, the banks are not party to those arrangements so legally that makes it a bit more difficult…. We would expect banks to be very supportive of the agreements reached under this code."

    Although stressing the importance of mutual understanding, the PM assured that mediation will be made available in the event that landlords and their retail commercial tenants are unable to reach an agreement.

    The Prime Minister also warned tenants that haven't had a reduction in their business turnover, that their leasing arrangements stand.

    "You should be still paying your rent to the landlord. Those things haven't been suspended."

    It is now expected that the code will be announced next week, bringing relief to thousands of businesses across the country.  


    Update taken from www.mybusiness.com.au

     

    $10,000 grants to provide fast relief for NSW small businesses battling COVID-19


      Thousands of small businesses across NSW struggling to cope with the COVID-19 shutdown will receive grants of up to $10,000 under a new assistance scheme announced today by Premier Gladys Berejiklian, Treasurer Dominic Perrottet and Minister for Finance and Small Business Damien Tudehope.


      The NSW Government will put $750 million into the Small Business Support Fund as the centrepiece of a third wave of support measures to keep small businesses afloat.

      Ms Berejiklian said the new fund was based on the hugely successful scheme rolled-out during the recent NSW bushfires, which provided $42 million to 4200 businesses within the first ten days of launching.

      "This is about getting cash into small businesses when they are struggling right now in the face of an unprecedented situation," Ms Berejiklian said. 

      These grants will provide a big boost, and we will make the application process easy to ensure small businesses can receive some cash-flow as soon as possible to meet pressing needs." 

      Mr Perrottet said the fund was designed to provide help fast and would benefit tens of thousands of businesses across NSW.

      "Many local cafés, restaurants, corner shops, gyms and small accommodation providers will be eligible to apply," Mr Perrottet said.

      "We have the structures in place after the bushfires and expect to see this money rolling out the door shortly."

      "This is real, rapid relief for tens of thousands of businesses and it will help ensure many businesses that are not eligible for payroll tax waivers and deferrals can live to trade another day."

      Mr Tudehope said the fund would offer a vital lifeline for businesses across NSW.

      "This is the largest support package for small businesses in the history of NSW, it will make a huge difference to many lives," Mr Tudehope said.

      To be eligible, businesses will need to:

      • have between 1-19 employees and a turnover of more than $75,000
      • a payroll below the NSW Government 2019-20 payroll tax threshold of $900,000
      • have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020
      • be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020
      • use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice
      • provide appropriate documentation upon application. 

      Applications for a small business grant of up to $10,000 will be available through Service NSW within a fortnight and remain open until 1 June 2020.

      This latest move follows two assistance packages from NSW in the past fortnight, whose combined value far exceeds the support offered by any other state, including:

      • more than $5 billion in payroll tax waivers, deferrals and other tax deferrals
      • a $1 billion Working for NSW fund to create jobs 
      • $700 million in additional funding for the health system 
      • $250 million to bring forward capital works and maintenance on public assets
      • $500 million to bring forward capital works, maintenance and shovel ready infrastructure projects
      • $80 million to waive a range of fees and charges
      • $80 million to help the vulnerable through a range of measures.

       

      Update taken from nsw.gov.au



       

      JobKeeper payment

      JobKeeper Payment

      The Government is introducing a subsidy program to support employees and businesses. The JobKeeper Payment is designed to help businesses affected by the Coronavirus to cover the costs of their employees' wages, so that more employees can retain their job and continue to earn an income.  Keeping Australians in work and businesses in business will lay the foundations for a stronger economic recovery once the Coronavirus crisis passes.  

      Summary   

      The economic impacts of the Coronavirus pose significant challenges for many businesses – many of which are struggling to retain their employees.   

      Under the JobKeeper Payment, businesses significantly impacted by the Coronavirus outbreak will be able to access a subsidy from the Government to continue paying their employees. This assistance will help businesses to keep people in their jobs and re-start when the crisis is over. For employees, this means they can keep their job and earn an income – even if their hours have been cut.  

      The JobKeeper Payment is a temporary scheme open to businesses impacted by the Coronavirus.  The JobKeeper Payment will also be available to the self-employed.  

      The Government will provide $1,500 per fortnight per employee for up to 6 months.

      The JobKeeper Payment will support employers to maintain their connection to their employees. These connections will enable business to reactivate their operations quickly – without having to rehire staff – when the crisis is over.  

      Eligibility 

      Employers (including non-for-profits) will be eligible for the subsidy if: 

      • their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or  

      • their business has a turnover of $1 billion or more and their turnover will  be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and 

      • the business is not subject to the Major Bank Levy. 

      Employers must elect to participate in the scheme. They will need to make an application to the Australian Taxation Office (ATO) and provide supporting information demonstrating a downturn in their business. In addition, employers must report the number of eligible employees employed by the business on a  monthly basis. 

      Eligible employers will receive the payment for each eligible employee that was on their books on 1 March 2020 and continues to be engaged by that employer – including full-time, part-time, long-term casuals and stood down employees. Casual employees eligible for the JobKeeper Payment are those employees who have been with their employer on a regular basis for at least the previous 12 months as at 1 March 2020. To be eligible, an employee must be an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder. 

      Eligible employers who have stood down their employees before the commencement of this scheme will be able to participate. Employees that are re-engaged by a business that was their employer on  1 March 2020 will also be eligible. 

      In circumstances where an employee is accessing support though Services Australia because they have been stood down or had their hours reduced and the employer will be eligible for the JobKeeper Payment, the employee should advise Services Australia of their change in circumstances online at my.gov.au or by telephone.  

      Self-employed individuals will be eligible to receive the JobKeeper Payment where they have suffered or expect to suffer a 30 per cent decline in turnover relative to a comparable a period a year ago (of at least a month).  

      Where employees have multiple employers – only one employer will be eligible to receive the payment. The employee will need to notify their primary employer to claim the JobSeeker Payment on their behalf. The claiming of the tax free threshold will in most cases be sufficient notification that an employer is the employee's primary employer. 

       

      Payment process  

      Eligible employers will be paid $1,500 per fortnight per eligible employee. Eligible employees will receive, at a minimum, $1,500 per fortnight, before tax, and employers are able to top-up the payment.  

      Where employers participate in the scheme, their employees will receive this payment as follows. 

      • If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements. The JobKeeper Payment will assist their employer to continue operating by subsidising all or part of the income of their employee(s).  

      • If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax. • If an employee has been stood down, their employer must pay their employee, at a minimum,  $1,500 per fortnight, before tax. 

      • If an employee was employed on 1 March 2020, subsequently ceased employment with their employer, and then has been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax. 

      It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.    

      Payments will be made to the employer monthly in arrears by the ATO.

       

      Timing

      The subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May. Businesses will be able to register their interest in participating in the Payment from 30 March 2020 on the ATO website. Budget impact This measure is expected to cost $130 billion across 2019-20 and 2020-21. 

       

      Budget impact

      This measure is expected to cost $130 billion across 2019-20 and 2020-21.

      Update taken from https://treasury.gov.au

      Chartered Accountants Australia + New Zealand MYOB Intuit Quickbooks Xero