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ATO Lodgement dates

ATO Lodgement requirements

Below is a table of ATO lodgement dates from 1 April to 31 August 2020.

 

Date

Lodgement Obligation

Announced Payment Concessions triggered by Lodgement

7 April 2020

March 2020 Monthly NSW Payroll Tax

Payment of tax is waived for March, April and May automatically

21 April 2020

March 2020 Monthly BAS/IAS

From $10k to $50k will be automatically paid to your ATO Integrated Client Account from 28 April 2020 if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

 

PAYGI can be varied to NIL & a refund claimed for PAYGI paid for September & December 2019

28 April 2020

March 2020 Quarterly BAS & PAYG Instalments (lodged personally)

From $10k to $50k will be automatically paid to your ATO Integrated Client Account from 28 April 2020 if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

 

PAYGI can be varied to NIL & a refund claimed for PAYGI paid for September & December 2019 quarters

7 May 2020

April 2020 Monthly NSW Payroll Tax

Payment of tax is waived for March, April and May automatically

11 May 2020

March 2020 Quarterly BAS (lodged personally via portal)

From $10k to $50k will be automatically paid to your ATO Integrated Client Account from 28 April 2020 if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

 

PAYGI can be varied to NIL & a refund claimed for PAYGI paid for September & December 2019 quarters

15 May 2020

2020 Tax Returns (lodged via agent)

N/a

21 May 2020

April 2020 Monthly BAS/IAS

From Nil to $50k will be automatically paid to your ATO Integrated Client Account if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

26 May 2020

March 2020 Quarterly BAS (lodged via agent)

From $10k to $50k will be automatically paid to your ATO Integrated Client Account from 28 April 2020 if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

28 May 2020

2020 FBT Return payment due (prior to lodgement due date)

N/a

28 May 2020

March 2020 Quarterly Superannuation Guarantee

N/a

5 June 2020

2020 Individual and Trust Tax Returns if any tax liability is paid by this date (lodged via agent)

N/a

7 June 2020

May 2020 Monthly NSW Payroll Tax

Payment of tax is waived for March, April and May automatically

21 June 2020

May 2020 Monthly BAS/IAS

From Nil to $50k will be automatically paid to your ATO Integrated Client Account if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

30 June 2020

2020 Annual Trust Distribution Resolutions to be adopted

N/a

21 July 2020

June 2020 Monthly BAS/IAS

From Nil to $50k will be automatically paid to your ATO Integrated Client Account if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

 

25% of the $10k to $50k received for the March – June 2020 period (phase 1) will be automatically paid to your ATO Integrated Client Account (phase 2)

25 July 2020

2020 FBT Returns (lodged via agent)

N/a

28 July 2020

June 2020 Quarterly BAS & PAYG Instalments (lodged personally)

From Nil to $50k will be automatically paid to your ATO Integrated Client Account if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

 

25% of the $10k to $50k received for the March – June 2020 period (phase 1) will be automatically paid to your ATO Integrated Client Account (phase 2)

28 July 2020

2020 Annual NSW Payroll Tax Reconciliation

Liability will be automatically reduced by 25% whenyou lodge

31 July 2020

Trust TFN Report for New Beneficiaries in 2020 year

N/a

7 August 2020

July 2020 Monthly NSW Payroll Tax

N/a

11 August 2020

June 2020 Quarterly BAS (lodged personally via portal)

From $10k to $50k will be automatically paid to your ATO Integrated Client Account from 28 April 2020 if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

 

50% of the $10k to $50k received for the March – June 2020 period(phase 1) will be automatically paid to your ATO Integrated Client Account (phase 2)

 

PAYGI can be varied to NIL & a refund claimed for PAYGI paid for September & December 2019 quarters

21 August 2020

July 2020 Monthly BAS/IAS

25% of the $10k to $50k received for the March – June 2020 period will be automatically paid to your ATO Integrated Client Account (phase 2)

25 August 2020

June 2020 Quarterly BAS (lodged via agent)

From $10k to $50k will be automatically paid to your ATO Integrated Client Account from 28 April 2020 if you were registered for PAYG Withholding and an active business prior to 12 March 2020 (phase 1)

 

50% of the $10k to $50k received for the March – June 2020 period(phase 1) will be automatically paid to your ATO Integrated Client Account (phase 2)

 

PAYGI can be varied to NIL & a refund claimed for PAYGI paid for September & December 2019 quarters

28 August 2020

2020 Taxable payments annual report

N/a

28 August 2020

June 2020 Quarterly Superannuation Guarantee

N/a


 

What employers need to know about FBT 2020

What employers need to know about FBT 2020

We are living in difficult times, however the world keeps going and our businesses are still expected to meet their Fringe Benefit Tax (FBT) obligations for this year ended 31 March 2020.

The key issues for employers this FBT year and beyond are outlined below.

Should I be registered for FBT? 

If your business has employees (including Directors of a company or trustees of a trust) then it's highly likely your business needs to register for FBT. Generally, your business needs to register for FBT if you are providing any benefits (not in the form of wages) to employees, that are not exempt from FBT. Examples of common fringe benefits are:

- Provision of motor vehicles for employee use;
- Provisions of car spaces for employee use;
- Entertainment expenses (including meals and recreation);
- Employee discounts on goods;
- Reimbursement of private expenses; or
- A myriad of other non-cash benefits. 

The following benefits could be exempt from FBT:

- Portable electronic devices like laptops and iPads;

- Protective clothing;

- Tools of trade;

- Expenses that would be otherwise tax deductible to the employee; and

- Superannuation.

Further, simply forgoing a tax deduction and GST credit does not provide an exemption from FBT.

We recommend that, even if you only have exempt benefits or no fringe benefits, that your business still be registered for FBT and lodge a yearly FBT return. In completing and lodging a yearly FBT return, your business will limit its exposure to Australian Tax Office (ATO) review for a period of 4 years from the date of lodgement of the FBT return. 

Record Maintenance 

It can be difficult to ensure the required records are maintained in relation to fringe benefits – especially as this may depend on employees producing records at a certain time. If your business has cars and you need to record odometer readings at the first and last days of the FBT year (31 March and 1 April), remember to have your team take a photo on their phone and email it through to a central contact person – it will save running around to every car, or missing records where employees forget.

 

Exempt fringe benefits during emergencies

If your business assists employees during an emergency, for example floods, bushfires, or a pandemic outbreak etc., then fringe benefits tax is unlikely to apply to the assistance you provide. While we doubt anyone would be thinking about FBT during a crisis, it's good to know that the tax system does not disadvantage your generosity. 

Examples of the kinds of benefits exempt from FBT include immediate relief you provide to an employee in the form of:

emergency meals or food supplies
clothing, accommodation, transport or use of household goods

temporary repairs, for example on the employee's home or car. Long-term benefits are not exempt from FBT, such as providing a new house or car to replace one destroyed in the emergency event.

 First aid or other emergency health care you provide to an employee is also exempt if it is provided by an employee (or a related company employee), or is provided at your premises (or those of a related company), or at or near an employee's worksite. 

The exemption applies in a range of scenarios including natural disasters, accidents, serious illness, armed conflict, or civil disturbances. 

Motor Vehicles – using the company car outside of work

Just because your business buys a motor vehicle and it is used almost exclusively as a work vehicle, that alone does not mean that the car is exempt from FBT. If you use the car for private purposes - pick the kids up from school, do the shopping, use it freely on weekends, garage it at home, your spouse uses it - FBT is likely to apply. While we're sure the old, "what the ATO doesn't know won't hurt them" mentality often applies when the FBT returns are completed, it might not be enough. The private use of work vehicles is firmly in the sights of the ATO. 

Private use is when you use a car provided by your employer (this includes directors) outside of simply travelling for work related purposes. 

If the work vehicle is garaged at or near your home, even if only for security reasons, it is taken to be available for private use regardless of whether or not you have permission to use the car privately. Similarly, where the place of employment and residence are the same, the car is taken to be available for the private use of the employee.
Finding out that a car has been used for non work-related purposes is not that difficult. Often, the odometer readings don't match the work schedule of the business. These are areas the ATO will be looking at.

Utes and commercial vehicles –safe harbour rules to avoid FBT for 'workhorse' vehicles

When an employer provides an employee with the use of a car or other vehicle then this would generally be treated as a car fringe benefit or residual fringe benefit and could potentially trigger an FBT liability. 

However, the FBT Act contains some exemptions which can apply in situations where certain vehicles (utes and other commercial vehicles for example) are provided and the private use of the vehicles is limited to work-related travel, and other private use that is 'minor, infrequent and irregular'. 

One of the practical challenges when applying the exemption is how to determine if private use has been minor, infrequent and irregular. The ATO recently released a compliance guide that spells out what the regulator will look for when reviewing the use of the exemption. 

The ATO has indicated that in general, private use by an employee will qualify for the exemption where: 

The employer provides an eligible vehicle to the employee to perform their work duties. An eligible vehicle is generally a commercial vehicle or one that is not designed mainly for carrying passengers. The requirements are very strict and guidance on this is published on the ATO website.

The employer has a policy in place which limits private use and obtains assurance from the employee that the vehicle has only been used for certain purposes.

The value of the vehicle when it was acquired was less than the luxury car tax threshold ($75,526 for fuel efficient vehicles in 2018-19 and $66,331 for other vehicles).

The vehicle is not provided as part of a salary sacrifice arrangement; and

The employee uses the vehicle to travel between their home and their place of work and any diversion adds no more than two kilometres to the ordinary length of that trip

Some private travel is allowed, but the total private travel in the FBT year must not exceed 1000 km and, no single, return journey for a wholly private purpose must exceed 200 km.

 If you meet all these specifications, the ATO has stated that it will not investigate the use of the FBT exemption further. However, the employer will still need to keep records to prove that the conditions above have been satisfied and to show that private use is restricted and monitored. 

If these conditions are not met then this doesn't necessarily prevent the exemption from applying, but you can expect that the ATO would devote more time and resources in checking whether the conditions have actually been met. Employers who do not take active steps to check the way commercial vehicles are being used are at high risk of significant FBT liabilities. There are some practical steps that can be taken to reduce risk in this area.

The ATO's top FBT problem areas

The ATO have identified the following as being problem areas under review:

Fringe Benefits Tax Return and Income Tax Return mismatch. 
FBT contributions made by employees to reduce any FBT liability are considered income for income tax purposes. This income is required to report in the income tax return of the business in the appropriate label.

Non-Lodgement of FBT Returns. 
As discussed earlier, if your business employs staff, it is likely to be subject to FBT and be required to lodge a FBT return. Non-lodgement of returns, could lead to penalties and interest or additional tax payable. 

Business assets used personally. 
The ATO are consistently reviewing business assets that may be used or available for use by directors, employees or associates.  

Entertainment expenses claimed as a tax deduction but not recognised for FBT. 
The ATO have advised that a common area overlooked is where businesses claim a tax deduction for entertainment, but fail to complete the relevant FBT obligations to allow for the claim. The ATO have also advised that a common error made is the misclassification of entertainment expenses as sponsorship, advertising or donations

Motor Vehicle Fringe Benefits. 
The ATO will continue to monitor motor vehicle fringe benefits specifically in relation to business that own a vehicle but do not report or complete an FBT return for personal use of that vehicle. The ATO will also continue to review the incorrect application of FBT exemptions or reductions, especially around Eligible 'workhorse' vehicles such as Utes.

Car Parking Fringe Benefits.
 The ATO have acknowledged that there have been many instances of miscalculating car parking fringe benefits, especially around significant discounts on market values, non-commercial commercial parking rates and lack of supporting evidence. The ATO will continue to have a focus on these benefits. 
 

Billions in tax relief for business, $1 billion fund for jobs, and help for the vulnerable

The NSW Government released the second stage of its economic package aimed at keeping people in jobs, helping businesses and supporting our most vulnerable in the face of the COVID-19 pandemic.

Key elements of the NSW COVID-19 stage two package include:

Keeping people in jobs and helping businesses stay afloat 

  • the creation of a $1 billion Working for NSW fund to sustain business, create new jobs and retrain employees. The fund is already being put in to action with 1000 new staff for Service NSW announced this week to be funded by the program. The Working for NSW fund will comprise $750 million in new funding and $250 million announced last week for additional cleaning services
  • deferral of payroll tax for business with payrolls over $10 million for six months (up to $4 billion deferred). Businesses with payrolls of $10 million or less received a three-month waiver on payroll tax in the first package. These businesses will now get an additional three month deferral as well
  • deferral of gaming tax for clubs, pubs and hotels, and lotteries tax for six months, conditional on these funds being used to retain staff. This improves liquidity and helps these businesses stay afloat
  • deferral of the parking space levy for six months
  • deferral of rents for six months for commercial tenants with less than 20 employees in all Government-owned properties.

Helping the most vulnerable

  • $34 million boost in funding to prevent homelessness
  • $30 million to boost the Energy Accounts Payments Assistance scheme
  • $10 million to support charities and $6 million additional funding for Lifeline's operations in NSW.

Update taken from www.nsw.gov.au 

When can employees be stood down without pay?

When can employees can be stood down without pay?

Employers and employees are encouraged to work together to find appropriate solutions that suit the needs of individual workplaces and staff. Employees who are stood down without pay remain employed for the period of the stand down.

Under the Fair Work Act, an employee can only be stood down without pay if they cannot be usefully employed because of a stoppage of work for any cause for which the employer cannot reasonably be held responsible.

Whether the option of standing down employees is available in circumstances relating to Coronavirus is very fact dependent and an employer should exercise the option cautiously. 

The employer must be able to demonstrate that:

  • there is a stoppage of work 
  • the employees to be stood down cannot be usefully employed (which is not limited to the work an employee usually performs) 
  • the cause of the stoppage must also be one that the employer cannot reasonably be held responsible for. 

If an employer unlawfully stands down employees without pay, the employees will likely be able to recover unpaid wages.

Employers cannot generally stand down employees simply because of a deterioration of business conditions or because an employee has Coronavirus. 

Some examples of when employers may be able to stand down employees include:

• if there was an enforceable government direction requiring the business to close (which means there is no work at all for the employees to do, even from another location)

• if a large proportion of the workforce was required to self-quarantine with the result that the remaining employees/workforce cannot usefully be employed 

• if there was a stoppage of work due to lack of supply for which the employer could not be held responsible.

This is not an exhaustive list.

Enterprise agreements and employment contracts can have different or extra rules about when an employer can stand down an employee without pay, for example, a requirement to notify or consult. Employers should consider whether their obligations are impacted by any applicable enterprise agreement, award, employees' employment contracts or workplace policies.

Employers are not required to make payments to employees for the period of a stand down but may choose to pay their employees. Employees accrue leave as normal.

An employee is not taken to be stood down during a period when the employee is taking paid or unpaid leave that is authorised by the employer or the employee is otherwise authorised to be absent.

The stand down provisions in the Fair Work Act, enterprise agreements or contracts of employment are not usually relied on for casual employees. 

Other options that an employer may consider instead of stand down include:

• seeking employees' agreement to take paid (or unpaid) leave for a period 

• in limited circumstances, directing employees to take paid annual leave 

• in limited circumstances, negotiating with employees to change regular rosters or hours of work 

• terminating the employment of the employees, in which case the employer may have to provide redundancy pay. 

The Fair Work Act includes requirements that employers have to meet before they can terminate an employee's employment, such as providing notice of termination. An employee is also protected from being dismissed because of discrimination, a reason that is harsh, unjust or unreasonable or another protected right. Employers are prohibited from exerting undue influence or undue pressure on employees in relation to making certain agreements or arrangements.

Update taken from https://coronavirus.fairwork.gov.au/


Temporary early release of Superannuation

Temporary early release of superannuation 

The government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans' Affairs payments. 

From mid-April 2020, eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months. 

Eligibility 

To apply for early release, you must satisfy any one or more of the following requirements: 
  • You are unemployed. 
  • You are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.

On or after 1 January 2020, either   

  • you were made redundant ? your working hours were reduced by 20% or more ? if you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more. 
  

How to apply 

If you are eligible for this new ground of early release, you can apply from mid-April directly to the ATO through the myGov website. You will need to certify that you meet the eligibility criteria. 

 

After they have processed your application, you will be issued with a determination. The ATO will also provide a copy of this determination to your superannuation fund, which will advise them to release your superannuation payment. Your fund will then make the payment to you, without you needing to apply to them directly. However, to ensure you receive your payment as soon as possible, you should contact your fund to check that they have your correct details, including your current bank account details and proof of identity documents. 
Separate arrangements will apply if you are a member of a self-managed superannuation fund (SMSF). 

Timing

You will be able to apply for early release of your superannuation from mid-April.

12 Tips for working from home

Our 12 tips for working from home

As the current Covid-19 health crisis is very real and thousands of people are losing their jobs, businesses are looking for ways to continue through this pandemic. If you're fortunate enough where your business is doing ok and can adapt to change and plan for the future.

One change for businesses is working remotely. We list below some of our top tips for working from home:

1.      Create a separate, focused space for work

2.      Invest in technology and have two computer screens

3.      Get dressed each day

4.      Plan your day and stick to your schedule

5.      Be sure to get up and move around don't stay sitting all the time

6.      Eat meals away from your desk so you get a break

7.      Reach out if you're feeling isolated

8.      Maintain regular hours and breaks

9.      Remove distractions

10.   Set deadlines and stay accountable

11.   Keep in touch with colleagues about what they are doing and work as a team

12.   Log off each day like you would at work

Increased and accelerated income support

INCREASED AND ACCELERATED INCOME SUPPORT 

The Government is providing support for individuals to assist them during the next six months.

Summary 

The Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months.  

 

Eligibility 

Payment categories  

The income support payment categories eligible to receive the Coronavirus supplement are: 

• Jobseeker Payment1 (and all payments progressively transitioning to JobSeeker Payment; those currently receiving Partner Allowance, Widow Allowance, Sickness Allowance and Wife Pension) 

• Youth Allowance Jobseeker 

• Parenting Payment (Partnered and Single) 

• Farm Household Allowance 

• Special Benefit recipients 

Anyone who is eligible for the Coronavirus supplement will receive the full rate of the supplement of $550 per fortnight. 

 

Expanded access 

For the period of the Coronavirus supplement, there will be expanded access to the income support payments listed above. 

Expanded access: Jobseeker Payment and Youth Allowance Jobseeker criteria will provide payment access for permanent employees who are stood down or lose their employment; sole traders; the self-employed; casual workers; and contract workers who meet the income tests as a result of the economic downturn due to the Coronavirus. This could also include a person required to care for someone who is affected by the Coronavirus. 

Reduced means testing: Asset testing for JobSeeker Payment, Youth Allowance Jobseeker and Parenting Payment will be waived for the period of the Coronavirus supplement. Income testing will still apply to the person's other payments, consistent with current arrangements. 

• Reduced waiting times:   The one week Ordinary Waiting Period has already been waived. 

 

1. Under changes announced in the 2017-18 Budget, from 20 March 2020, JobSeeker Payment replaces Newstart Allowance as the main income support payment for recipients aged between 22 years to Age Pension qualification age who have capacity to work. 

 Under changes announced in the 2017-18 Budget, from 20 March 2020, JobSeeker Payment replaces Newstart Allowance as the main income support payment for recipients aged between 22 years to Age Pension qualification age who have capacity to work. 

 

2  To further accelerate access to payments, the Liquid Asset test Waiting Period (LAWP) and the Seasonal Work Preclusion Period (SWPP) will also be waived for recipients eligible for the Coronavirus supplement.  : People currently serving a LAWP will no longer need to serve that waiting period.  The Newly Arrived Residents Waiting Period (NARWP) will be temporarily waived for recipients eligible for the Coronavirus supplement. When the Coronavirus supplement ceases, those people that were serving a NARWP will continue to serve the remainder of their waiting period, though the time the person was receiving the Coronavirus supplement will count towards their NARWP. Residency requirements still apply.   Income Maintenance Periods and Compensation Preclusion Periods will continue to apply, as payments under these arrangements are treated as income. 

People will not be permitted, and will need to declare that they are not, accessing employer entitlements (such as annual leave and/or sick leave) or Income Protection Insurance, at the same time as receiving Jobseeker Payment and Youth Allowance Jobseeker under these arrangements. 

From 20 March 2020, Sickness Allowance was closed to new entrants and was replaced by the JobSeeker Payment. This does not mean that people who previously may have been eligible for Sickness Allowance are now unable to access income support. JobSeeker Payment better accommodates individual circumstances, including assisting people who are sick or bereaved. 

Faster claim process 

Accelerated claim process: To ensure timely access to payments, new applicants are encouraged to claim through on-line and mobile channels. If applicants do not have internet access, they can claim over the phone. • From April 2020, Services Australia will allow new applicants to call to verify their identity to reduce the need to visit a Services Australia office. • To claim online, people who do not already deal with Services Australia will need to set up their myGov account, call to verify their identity, and get a link to their Centrelink online account. • Applicants for Jobseeker Payment and Youth Allowance Jobseeker will:  Make an initial declaration about their identity, residency status, income and that they have been made redundant, or had their hours reduced (including to zero) as a result of the economic downturn due to Coronavirus.  In the case of sole traders and the self-employed, applicants will make a declaration that their business has been suspended or had turnover reduced significantly. • Applicants may also declare the amount of rent they pay in this declaration to qualify for Rent Assistance. • Services Australia has effective measures in place to detect those seeking to defraud the social security system. Anyone fraudulently claiming a payment will need to pay the money back and may face imprisonment. 

Streamlined application process: A number of simplified arrangements will be put in place to make it easier to claim, including removing the requirements for: • Employment Separation Certificates, proof of rental arrangements and verification of relationship status; • Job Seeker Classification Instrument assessment for those people who have recently left jobs, recognising they are job ready; and • Job seekers to make an appointment with an employment service provider before they can be paid. 

 

Flexible jobseeking arrangements 

Those receiving Jobseeker Payment have an obligation to actively look for work or build their skills, but the Government is making sure this can be done flexibly and safely.  • Jobseekers who have caring responsibilities, or who need to self-isolate, are able to seek an exemption from their mutual obligation requirements without the need for medical evidence. • Activities can be rescheduled if the job seeker is unable to attend as a result of the Coronavirus. Job Plans will be adjusted to a default requirement of four job searches a month (or one a week) to reflect softening labour market conditions. 

Mutual obligations can be tailored for each individual to suit not only their needs but also the needs of the community. In some circumstances, job seekers can undertake training or volunteer within their community to meet their mutual obligation requirements. 

Sole traders that become eligible for the Jobseeker Payment will automatically meet their mutual obligation requirements during this period by continuing to develop and sustain their business. 

Job seekers are encouraged to stay job ready, connected to their employment services provider and up to date on potential job opportunities in their local area.  

These changes ensure that job seekers can reliably access income support, safely look for work, fill critical vacancies as they emerge, develop their skills and job preparedness, contribute to their community and help the economy to bounce back stronger.  

Timing 

The Coronavirus Supplement and expanded access for payments will commence from 27 April 2020. 

Budget impact 

The expanded access to income support payments and the Coronavirus supplement will operate as a demand driven program. These measures are expected to cost $14.1 billion. 

 

Update taken from www.treasury.gov.au/coronavirus

Applying for Government Stimulus Packages

Applying for Government Stimulus Packages



Adams Triglone are continually working for our clients and their personal circumstances. We are doing a lot of work in the background and one of those areas we are currently focused on our clients with businesses who may be eligible for Government stimulus packages.

If you are a business client and think you might be eligible, we need to get your March Business Activity Statement (BAS) up to date in order to apply for these. If you think you can close your ledger off early then please do so and get in touch with us as soon as it is done. If you need a bit more time, please aim to close off shortly after 31 March 2020 so we can get onto this straight away.

Once you have submitted your March accounts we will be reviewing these and looking for additional Government incentives that may be of benefit to you that you have not yet considered. 

We are continually keeping up to date with the evolving situation and announcements to ensure our clients have access to all relevant packages handed down by the Government.

We hope everyone is doing well. Please feel free to reach out if you have any questions or would like some advice.

We are always here to help.

The Team at Adams Triglone

Temporary Early Access to Superannuation

TEMPORARY EARLY ACCESS TO SUPERANNUATION 

The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their Superannuation in 2019-20 and a further $10,000 in 2020-21.

Summary 

While superannuation helps people save for retirement, the Government recognises that for those significantly financially affected by the Coronavirus, accessing some of their superannuation today may outweigh the benefits of maintaining those savings until retirement.

Eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months (exact timing will depend on the passage of the relevant legislation). 

 

Eligibility 

To apply for early release you must satisfy any one or more of the following requirements:

• you are unemployed; or 

• you are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or 

• on or after 1 January 2020: 

- you were made redundant; or 

- your working hours were reduced by 20 per cent or more; or 

- if you are a sole trader - your business was suspended or there was a reduction in your turnover of 20 per cent or more. 

People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans' Affairs payments.

 

How to apply 

If you are eligible for this new ground of early release, you can apply directly to the ATO through the myGov website: www.my.gov.au. You will need to certify that you meet the above eligibility criteria. 

After the ATO has processed your application, they will issue you with a determination. The ATO will also provide a copy of this determination to your superannuation fund, which will advise them to release your superannuation payment. Your fund will then make the payment to you, without you needing to apply to them directly. However, to ensure you receive your payment as soon as possible, you should contact your fund to check that they have your correct details, including your current bank account details and proof of identity documents. Separate arrangements will apply if you are a member of a self-managed superannuation fund (SMSF). Further guidance will be available on the ATO website: www.ato.gov.au. Timing You will be able to apply for early release of your superannuation from mid-April 2020.

If you would like assistance with this or would like to talk to us please contact our team on 02 8848 3000.

Update taken from www.treasury.gov.au 

Latest Update - 23 March 2020

Dear Friends,

We know that these are unprecedented times and we are all facing many challenges. Things are changing hourly if not faster and Adams Triglone are continuing to work around the clock to keep you up to date with  all of these developments. We have put into place arrangements to allow our team members to continue to work to ensure we are here for you when you need us. We are not going anywhere. For the safety of our team, we may be working from home at times but remain available through all the usual channels - emails and phone numbers remain the same. 


We will be updating our Facebook, Linked in and blog regularly as updates come through rather than continually clogging up your inbox. We encourage you to go to these links and like or follow for updates:

Facebook  

Linked in 
 

We understand everyone's circumstances are different and we will be in touch with each of you in due course to determine how this affects you. In the meantime, if you are concerned please call us today or whenever you need to on 02 8848 3000 or you can also email our office at enquiries@adamstriglone.com.au 


Below is further information about the Government Stimulus package announced yesterday.


Some points to consider:


1) Government Stimulus Programs have been released in various jurisdictions to benefit small business owners, veterans, the unemployed and other groups. The provisions of these programs (and associated processes) are evolving as the situation develops. You may be a beneficiary under these programs.

2) Running Your Business: Your industry, market, regulatory environment and other factors will influence what you need to do. Change in demand for your products, unpredictable supply chains, altered working conditions and reduced access to debt may impact you.  We are seeing businesses that are dramatically affected and those which are unaffected. Some businesses are finding opportunities and will be strengthened through these events. Identify the risks and opportunities you are facing and take appropriate steps.

3) Personal Affairs: Be aware that these events will affect businesses and also the individuals within them. Some will be subject to travel restrictions, stock market volatility or concerns for the well-being or vulnerable friends and family. Employers should be sensitive to this in the course of business decision-making.

4) An Opportunity to Reflect: Dramatic events prompt us to look critically at our situation and take care of our affairs which we may have neglected. Wills, succession planning and asset protection are a good starting point. Who do you depend upon and who depends upon you? What needs to happen to strengthen these relationships? We can help you navigate this.

5) Thinking Long-Term: While many people will think tactically and short term, this may be an opportunity to set longer-term goals ... and get ahead of the competition.  

6) Access to Information: There are many sources of information but, unfortunately, some are not credible. Try to eliminate the 'noise'. It is unlikely that the decisions you need to make require minute by minute updates on 'breaking news'. Important news will find you... so use the 'in-between time' to strengthen your business and personal affairs.

There are going to be some tough times ahead but working through it together one step at a time we will come out the other side stronger.

 

Please be patient and kind to each other in these uncertain times.

 

Look after yourselves and your family.

 

Greg

Latest information

The Government is now providing up to $100,000 to eligible small and medium sized businesses, and not-for-profits (including charities) that employ people, with a minimum payment of $20,000.

On 12 March 2020, the Government announced the Boosting Cash Flow for Employers measure. The measure initially provided up to $25,000 to business, with a minimum payment of $2,000 for eligible businesses. Small and medium sized business entities with aggregated annual turnover under $50 million and that employ workers are eligible.

The Government has enhanced this measure as part of the second economic response package. Not-for-profit entities (NFPs), including charities, with aggregated annual turnover under $50 million and that employ workers will now also be eligible. This will support employment activities at a time where NFPs are facing increasing demand for services.

An additional payment is also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they have received.

This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments. This additional payment continues cash flow support over a longer period, increasing confidence, helping employers to retain staff and helping entities to keep operating.

The cash flow boost provides a tax free payment to employers and is automatically calculated by the Australian Taxation Office (ATO). There are no new forms required.

Eligibility


 


Boosting Cash Flow for Employers payments

Small and medium business entities with aggregated annual turnover under $50 million and that employ workers will be eligible. Eligibility will generally be based on prior year turnover.

·        The payment will be delivered by the Australian Taxation Office (ATO) as a credit in the activity statement system from 28 April 2020 upon businesses lodging eligible upcoming activity statements.

·        Eligible businesses that withhold tax to the ATO on their employees' salary and wages will receive a payment equal to 100 per cent of the amount withheld, up to a maximum payment of $50,000.

·        Eligible businesses that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax.

·        The payments will only be available to active eligible employers established prior to 12 March 2020. However, charities which are registered with the Australian Charities and Not for profits Commission will be eligible regardless of when they were registered, subject to meeting other eligibility requirements. This recognises that new charities may be established in response to the coronavirus pandemic.

Additional payment

To qualify for the additional payment, your business must continue to be active.

For monthly activity statement lodgers, your additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to a quarter of your total initial Boosting Cash Flow for Employers payment following the lodgment of your June 2020, July 2020, August 2020 and September 2020 activity statements (up to a total of $50,000).

For quarterly activity statement lodgers, the additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to half of your total initial Boosting Cash Flow for Employers payment following the lodgment of your June 2020 and September 2020 activity statements (up to a total of $50,000).

This measure will benefit around 690,000 businesses employing around 7.8 million people, and around 30,000 NFPs (including charities).

Timing

 


Boosting Cash Flow for Employers payments

The Boosting Cash Flow for Employers measure will be applied for a limited number of activity statement lodgments. The ATO will deliver the payment as a credit to your business upon lodgment of your activity statements. Where this places the business in a refund position, the ATO will deliver the refund within 14 days.

Type of lodger

Eligible period

Lodgment due date

Quarterly

Quarter 3 (January, February and March 2020)
Quarter 4 (April, May and June 2020)

28 April 2020
28 July 2020

Monthly

March 2020
April 2020
May 2020
June 2020

21 April 2020
21 May 2020
22 June 2020
21 July 2020

Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020.

Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgments. To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (300 per cent) in the March 2020 activity statement.

The minimum payment will be applied to the business' first lodgment.

Additional payment

The additional payment will be applied to a limited number of activity statement lodgments. The ATO will deliver the payment as a credit to your business upon lodgment of your activity statements. Where this places the business in a refund position, the ATO will deliver the refund within 14 days.

Type of lodger

Eligible period

Lodgment due date

Quarterly

Quarter 4 (April, May and June 2020)
Quarter 1 (July, August and September 2020)

28 July 2020
28 October 2020

Monthly

June 2020
July 2020
August 2020
September 2020

21 July2020
21 August2020
21 September2020
21 July 2020

Quarterly lodgers will be eligible to receive the additional payment for the quarters ending June 2020 and September 2020. Each additional payment will be equal to half of your total initial Boosting Cash Flow for Employers payment (up to a total of $50,000). 

Monthly lodgers will be eligible to receive the additional payment for the June 2020, July 2020, August 2020 and September 2020 lodgments. Each additional payment will be equal to a quarter of your total initial Boosting Cash Flow for Employers payment (up to a total of $50,000).

 

Early release of superannuation

The Government will allow individuals in financial stress as a result of the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.

Eligible individuals will be able to apply online through myGov for access of up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for another three months. They will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans' Affairs payments.

This measure is estimated to cost $1.2 billion over the forward estimates period.

 

Temporary reduction in Minimum Drawdown Requirements

The Government has announced that the minimum pension requirements for 2019/20 and 2020/21 will be re-set to half the normal rates and there will be changes to the deeming rates used to calculate an individual's income for a range of important government benefits (including the age pension). 

 

Similar to the approach taken in the 2008/09 Global Financial Crisis, the minimum drawdown requirements for account based pensions and similar products will be temporarily reduced by 50% for the 2019/20 and 2020/21 years.

The revised rates for the 2019/20 and 2020/21 years will be as follows:

Age of Member

Percentage Factor

Under 65

2

65 – 74

2.5

75 – 79

3

80 – 84

3.5

85 – 89

4.5

90 – 94

5.5

95 +

7

Reducing social security deeming rates

On top of the deeming rate changes made at the time of the first package, the Government is reducing the deeming rates by a further 0.25 percentage points to reflect the latest rate reductions by the RBA.

As of 1 May 2020, the lower deeming rate will be 0.25 per cent and the upper deeming rate will be 2.25 per cent.

The change will benefit around 900,000 income support recipients, including Age Pensioners.

This measure is estimated to cost $876 million over the forward estimates period.

 

 

 

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