ATO JobKeeper Payment Extension 2 Starting on 4th January 2021

ATO JobKeeper Payment Extension 2 Starting on 4th January 2021

The second JobKeeper Payment extension starts from Monday 4 January 2021.

It covers the JobKeeper fortnights between Monday 4 January 2021 and Sunday 28 March 2021.

It means:

  • if you are eligible for JobKeeper extension 2 you will need to complete a new decline in turnover test
  • the payment rates for your eligible employees will change
  • if you are new to JobKeeper you can enrol in the program to participate in the remaining fortnights.

To support you over December and January the ATO have extended some reporting dates.

For JobKeeper fortnight 20 (Monday 21 December 2020 to Sunday 3 January 2021):

  • You will have until the end of Monday 4 January 2021 to pay your employees (meet the wage condition).
  • Business monthly declarations for JobKeeper fortnights 18, 19 and 20 are now due 28 January 2021.

For JobKeeper fortnights 21 and 22 (starting Monday 4 January 2021 and Monday 18 January 2021):

  • You will have until Sunday 31 January 2021 to meet the wage condition for your eligible employees.

This is to make sure that you have paid your eligible employees before claiming JobKeeper payments in your February monthly business declarations.

Source – https://www.ato.gov.au/Newsroom/smallbusiness/Employers/JobKeeper-Payment-extension-2-starts-soon/

Attention Melbourne: Watch out for tax scams!

Attention Melbourne: Watch out for tax scams!

watch out for tax scams

Large numbers of scammers have been trying to trick people with fake tax debt scams recently. These scammers will tell you that you have a tax debt and if you don’t pay it straight away, you’ll be arrested. If you receive a phone call or message like this, don’t respond.

The ATO will never:

  • threaten you with immediate arrest, jail or deportation
  • request payment of a debt via iTunes, Google Play gift cards or other vouchers
  • insist you stay on the phone until you pay
  • prevent you from discussing your tax affairs with your agent or adviser.

Here are some useful tips.

Tip 1 👉 Know the status of your tax and super affairs! You’re less likely to fall victim to a scam if you’re aware of any refunds, debts and lodgments due. Chat with your tax agent or log into our online services to check your details.

Tip 2 👉 Stay safe online by logging into our online services through our website or ATO app – never via links in emails. For added security, update your myGov sign-in option so you receive SMS codes.

Tip 3 👉 Help protect your family and friends, especially older relatives! 👵 Warn them about tax scams and tactics so they don’t get tricked into paying money or sharing their personal info.

If you’re ever unsure if a contact is really from the ATO, hang up and call us on ☎️ (03) 9904 9261.

Source – https://www.ato.gov.au/Newsroom/smallbusiness/General/Watch-out-for-tax-scams/

You can verify or report a scam here – https://www.ato.gov.au/general/online-services/identity-security/verify-or-report-a-scam/

Have you missed or underpaid superannuation amounts?

Have you missed or underpaid superannuation amounts?

missed or underpaid superannuation

Business downturn due to COVID-19 may be affecting your business and you may have missed, or not paid in full, regular payments.

This includes your employees’ super guarantee (SG) for the quarter ended 30 September 2020.

By law, the ATO can’t extend the due date to pay super.

To meet your obligations, lodge a Superannuation guarantee charge statement to the ATO by 28 November 2020, even if you can’t pay in full. Doing this will mean you avoid penalties and the ATO can work with you to set up a payment plan that suits your circumstances.

The super guarantee charge is different from the regular contributions you pay and comprises:

  • SG shortfall amounts
  • interest on those amounts (currently 10%)
  • an administration fee of $20 per employee, per quarter.

Significant penalties can apply if you don’t lodge a statement by the due date.

Source – https://www.ato.gov.au/Newsroom/smallbusiness/Employers/Missed-or-underpaid-super-amounts/

If you need any help with your business Payroll, Accounting, Taxation or any other business advice, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261.

Are You Claiming Motor Vehicles Expenses For Your Business?

Are You Claiming Motor Vehicles Expenses For Your Business?

You can claim motor vehicle expenses that are part of the everyday running of your business, such as travelling between different business premises and visiting clients.

Common expenses include:

  • Fuel
  • Repairs
  • Lease payments (interest)
  • Insurance registration
  • Rego fees
  • Depreciation.

If you operate your business as a sole trader or partnership and use a car as part of the everyday running of your business, you can work out your claim using the:

  • cents per kilometre method, or
  • logbook method

The rates for the cents per kilometre method are:

  • 68 cents from 1 July 2018 to 30 June 2020
  • 72 cents from 1 July 2020.

It applies for a maximum of 5,000 business kilometres per car.

For the logbook method, you need to keep a logbook for at least 12 continuous weeks and work out the percentage of business use for each car expense.

You can only claim the actual costs of expenses based on receipts if you:

  • operate your business as a sole trader or partnership and use an ‘other vehicle’, such as motorcycles or vans designed to carry loads of at least one tonne
  • operate your business as a company or trust.

Always keep records showing how you calculated your claim.

Remember, if you use your vehicle for both business and private use, you can only claim the business portion of the expenses.

If you need any help with any tax advice or any other accounting advice, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261.

Source – https://www.ato.gov.au/Newsroom/smallbusiness/General/Claiming-motor-vehicle-expenses-/

Australia Federal Budget Highlights

Australia Federal Budget Highlights

The Treasurer delivered the Federal Budget on 6 October 2020.

The announcements include almost $50 billion in tax relief for businesses and individuals with a hope to return the economy to financial health as Australia experiences its first recession in almost 30 years.

What are the major tax implications of the recent budget?

FOR BUSINESSES

  • Temporary loss carry-back to support cash flow
  • Temporary full expensing to support investment and jobs
  • Research and Development Tax Incentive — supporting Australia’s economic recovery
  • JobMaker – new incentives for hiring employees
  • Increase the small business entity turnover threshold
  • Fringe Benefits Tax — exemption to support retraining and reskilling

FOR INDIVIDUALS

  • Changes to tax brackets
  • Low and Middle-Income Tax Offset
  • Exempting granny flat arrangements from capital gains tax

If you need any help with any tax advice or any other accounting advice, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261.

Sources – https://budget.gov.au/index.htm, https://www.minterellison.com/articles/federal-budget-highlights-2020-21

Running your business from home?

Running your business from home?

If your home is your main place of business, you may be able to claim the business portion of some expenses.

You may be able to calculate your home-based business running expenses using:

  • a fixed rate of 52 cents an hour for each hour you operate your business from home
    • This covers heating, cooling, lighting, cleaning and the depreciation of furniture and furnishings.
    • You will need to separately calculate phone and internet expenses, consumables and certain depreciation expenses.
  • the temporary working from home shortcut method of 80 cents an hour
    • This can be used by individuals running home-based businesses from 1 March 2020 until 30 September 2020.
    • This covers all the expenses normally included under the 52 cents rate and all additional deductible running expenses.
  • any other reasonable method.

You may also be able to claim occupancy expenses, like rent, in certain circumstances. Exclude your private living costs and keep records to show how you calculated your expenses.

You can’t claim the same expenses two different ways. The temporary working from home shortcut method is all-inclusive.

For example, you can’t claim the full cost of purchasing a photocopier using instant asset write-off and also claim with the home shortcut method.

If you need any assistance with business restructuring or any other accounting and taxation work, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261.

Source – https://www.ato.gov.au/Newsroom/smallbusiness/General/Running-your-business-from-home-/

New Business Support Grants & JobKeeper 2.0

New Business Support Grants & JobKeeper 2.0

A 3rd Round of Business Support Fund Grants is available from Friday, 18th September 2020 to support Victorian businesses through restrictions.

The Victorian Government has announced a third round of the Business Support Fund to provide direct financial support to businesses impacted by restrictions in Victoria.

The ‘How we work’ roadmapsExternal link  show that many sectors will remain closed, restricted or heavily restricted as metropolitan Melbourne and regional Victoria reopens. Grants from this program will help businesses in these sectors survive the extended period of restricted trading.

Grant applications open on Friday 18 September 2020.

The amount of grants available from this program range from $10,000 to $20,000 depending on the business’ annual payroll. To be eligible for a grant from this program, applicants must:

  • operate a business located within Victoria; and
  • participate in the Commonwealth Government’s JobKeeper Payment scheme; and
  • employ people and be registered with WorkSafe; and
  • have had an annual payroll of less than $10 million in 2019-20; and
  • be registered for Goods and Services Tax (GST); and
  • hold an Australian Business Number (ABN); and
  • be registered with the responsible Federal or State regulator.

An eligible business will receive:

  • $10,000 if its annual payroll is less than $650,000
  • $15,000 if its annual payroll is between $650,000 and $3 million
  • $20,000 if its payroll is between $3 million and $10 million.

Source – https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-resilience-package/business-support-fund-3

JobKeeper 2.0 rules released

The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021.

There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.

The extension periods are:

Source – https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-extension-announcement/

JobKeeper extension 1

This extension period will run from 28 September 2020 to 3 January 2021.

You will need to show that your actual GST turnover has declined in the September 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019). See the actual decline in turnover test.

You also need to have satisfied the original decline in turnover test. However, if you:

  • were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test
  • are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,200 per fortnight (before tax)
  • Tier 2: $750 per fortnight (before tax).

JobKeeper extension 2

This extension period will run from 4 January 2021 to 28 March 2021.

You will need to show that your actual GST turnover has declined in the December 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019). See the actual decline in turnover test.

You also need to have satisfied the original decline in turnover test. However, if you:

  • were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test
  • are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.

You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,000 per fortnight (before tax)
  • Tier 2: $650 per fortnight (before tax).

If you need any assistance with checking your eligibility for these new grants and JobKeeper extension, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261.

#JobKeeper #COVID19 #StateGrants #SROGrant #RentRelief #BusinessSuport #SmallBusinessVictoria #BusinessAccountant #TaxAgent #Accountant #CPA

Made a loss this year? Learn how to treat tax losses.

Made a loss this year? Learn how to treat tax losses.

With COVID-19 pandemic, this has been a difficult year for most businesses, and your business may have made a tax loss.

A tax loss is when the total deductions you can claim, excluding gifts and donations, are greater than your total income for an income year.

If your business makes a tax loss, you may be able to:

  • offset the loss in the same income year against other assessable income, or
  • carry forward the loss and claim it as a business deduction in a later year.

If you’re a sole trader or in a partnership and want to offset a tax loss, first check if you meet at least one of the non-commercial losses requirements.

If you do meet the requirements, then you can offset the loss against other assessable income (such as salary or investment income) in the same income year.

If you don’t meet the requirements, you can defer the loss or carry it forward to future years. For example, you can offset it when you next make a profit.

If your business is a company, you can generally choose the year you want to claim a deduction.

Source – https://www.ato.gov.au/Newsroom/smallbusiness/General/Has-your-business-made-a-tax-loss-this-year-/

If you need any assistance with your business accounting and taxation, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261.

Update: JobKeeper Payment – adding newly eligible employees

Update: JobKeeper Payment – adding newly eligible employees

From the month of August 2020, you may be able to nominate new employees as eligible for the JobKeeper Payment scheme.

These new employees must have been employed by you on 1 July 2020 and meet other eligibility criteria. This can include employees that:

  • you employed after 1 March 2020
  • were employed by you on 1 March 2020 and did not meet the eligibility requirements, but do as of 1 July 2020 – e.g. they turned 18 years old after 1 March 2020 but before 1 July 2020.

For the fortnights commencing on 3 and 17 August 2020, employers have until 31 August 2020 to meet the wage condition for newly eligible employees under the 1 July eligibility test.

Source – https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper-Payment—adding-newly-eligible-employees/

Avoid these mistakes when changing from one business structure to another

Avoid these mistakes when changing from one business structure to another

Many small businesses change their business structure from a sole trader to more complex company or trust structures, especially when the environment changes. This can lead to errors.

Some of the common errors we see include:

  • reporting income for the wrong entity
  • claiming expenses incurred by another entity as business expenses
  • personal use of business bank accounts.

Please remember that:

  • the company is a separate legal entity from them as a shareholder or director
  • money that the company earns, belongs to the company
  • the company owns its assets, and they cannot treat them as their own
  • if a director or shareholder of a company uses company assets for their personal use, it must be properly treated as a benefit to the director or shareholder. The Division 7A or fringe benefits tax (FBT) provisions could apply if not treated correctly. You can use our Using your company’s money or assets guide (PDF 629KB)This link will download a file to help explain this to your clients.

If you move to a trust structure, please keep in mind the trustee’s responsibilities, including:

  • holding the trust property (including assets, investments and income) for the benefit of the beneficiaries
  • managing the trust’s tax affairs
  • paying some tax liabilities.

Source – https://www.ato.gov.au/Tax-professionals/Newsroom/Your-practice/Changing-business-structures/

If you need any assistance with business restructuring or any other accounting and taxation work, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261.

#ATO#TPAR#COVID#COVID19#smallbusiness#businessaccounting#taxagent#accountants#CPA#subcontractor#ATOReporting#atodeadline#smallbusinessaccountin

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