The government will roll out a $1.2 billion stimulus package across the travel and tourism industries, along with an extension to its SME Loan Guarantee Scheme once JobKeeper expires at the end of the month.
The support package will subsidise 50 per cent of 800,000 domestic flights to select tourism destinations across Australia. The discounts will be based on average air fares, subject to final discussions with airlines, and will commence from 1 April.
The 50 per cent subsidies on about 800,000 plane tickets will be focused on destinations that usually rely heavily on foreign tourists, including Alice Springs and Kangaroo Island, and will be available from Apr 1 until the end of July.
The country’s two major airlines, Qantas Airways and Virgin Australia, slashed flights and put planes into hibernation while thousands of people across the industry became reliant on a federal government wage subsidy programme, which expires this month.
The support package includes A$200 million for Qantas Airways and Virgin Australia from April to October to help maintaining mothballed aircraft, bringing planes out of storage and wages for international flying staff.
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.
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.
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.
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.
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.
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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.
If you need any assistance with your business accounting and taxation, give our team at SPS Business Consultants a call on (03) 9904 9261.
(03) 9904 9261.
(03) 9904 9261.
