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.
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.
You can verify or report a scam here – https://www.ato.gov.au/general/online-services/identity-security/verify-or-report-a-scam/
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.
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.
Business industry code tool
A business industry code (BIC) is a five-digit code you include on relevant tax returns and schedules that describes your main business activity.
BICs are derived from the Australian and New Zealand Standard Industrial Classification (ANZSIC) codes and have been simplified for tax return reporting purposes.
Find the correct BIC for your business
Use the BIC tool to help you find the correct BIC for your business.
- If you know your ANZSIC code or BIC
- enter the code in the search field
- click through the relevant link and check that it covers your activities.
- If you don’t know your code you can search by entering your main business activity or a key word that describes what you do into the search field (see example).
- Click through the relevant link and check that it covers your activities.
About the codes
The codes are very broad. One code might cover many different work types, activities and industries. If the codes are not an exact match to your role or title, choose the code that is closest.
If you have more than one work type or business:
- use the activity that gives you the highest gross income or smallest loss
- report this at the relevant labels on your tax return.
Example: search for codes
Search the broadest term for your business and select the closest match. If you’re a:
- copywriter – search ‘writing’
- financial manager – search ‘finance’ or ‘management’ separately
- ride-sourcing driver for Uber, Shebah, GoCatch or others – search ‘taxi’
- teacher – search ‘teaching’, ‘school’ or ‘tutoring’.
End of example
How to update your code
As your work or business changes or expands you may need to update your BIC. Do this by:
It’s important to get it right
Using the right code is important as it ensures you are lodging your return in the right category. This helps:
- avoid delays in the processing of your return
- reduce the risk of your business being incorrectly targeted for compliance activities
- ensure you receive services and materials that are relevant for your business type.
After you have the right BIC, you can also use the small business benchmarks to compare your business’ performance against similar businesses in your industry.
Do you need to pay FBT?
You may be required to pay fringe benefits tax (FBT) if you provide certain fringe benefits to an employee (or their associate) in respect of employment. An employee can be a current, future or past employee, or a director of a company or trust.
You will need to pay FBT even if the benefit is provided to an associate of your employee or by a third party under an arrangement with you.
Examples of fringe benefits include:
- allowing your employee to use a work car for private purposes
- giving your employee a discounted loan
- paying an employee’s gym membership
- providing entertainment by way of free tickets to concerts
- reimbursing an expense incurred by your employee, such as school fees
- giving benefits under a salary sacrifice arrangement with an employee.
Some employers, including charities, need to assess the status of their workers when working out their FBT liability. Generally, benefits provided to volunteers and contractors don’t attract FBT.
You must self-assess your own FBT liability each FBT year (1 April to 31 March) and lodge an FBT return before the due date.
Income and expenses for tax returns
Your tax return will show whether you have made a tax profit or a loss and will determine how much tax you should pay.
You need to keep comprehensive records explaining all transactions that relate to your tax affairs. This will help you complete and lodge your tax returns each year.
Keeping good records also ensures you are meeting your reporting obligations.
Records you need for your tax return
Your business records must contain enough information to calculate the income, expense and other amounts you must report in your tax return.
You will need to keep records of your transactions; cash, online, EFTPOS, bank statements, credit or debit card, covering:
- gross earnings or proceeds from your business including
- sales
- income earned from the sharing economy
- other money received such as
- foreign income
- personal services income
- crowdfunding
- payments outside of ordinary business activities
- government payments
- commissions, investment earnings, gratuities and compensation payments
- expenses you will claim as a deduction such as
- business travel expenses
- motor vehicle expenses
- salary, wages and super
- repairs, maintenance and replacement expenses
- home office expenses for a home-based business
- other operating expenses
- capital assets and expenses
We may review your tax return and ask for copies of your records to check the information provided. If we are unable to verify these claims, we may adjust your return. We will contact you before this occurs.
See also:
Keeping your tax return records up to date
It is easier for you to lodge your tax return if you update your records regularly. We recommend you use the following practices to help:
- Reconcile daily sales to ensure all sales are accounted for.
- Keep specific records showing when you use business purchases for private purposes or make cash payments and drawings. This will ensure your business finances can be easily separated from your personal finances.
- If you use a bookkeeper or a registered agent, regularly summarise your expenses. This may reduce the time it takes them to prepare your tax return or activity statements.
There are commercial business accounting packages which can automatically update and summarise your income and expenses records for you. Alternatively, you can do it manually by keeping a record of cash book totals for the period.
Use our record keeping evaluation tool to evaluate how well you are keeping business records.
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.
Warn them about tax scams and tactics so they don’t get tricked into paying money or sharing their personal info.
(03) 9904 9261.
(03) 9904 9261.
