Jobkeeper UPDATE – Businesses now able to claim Jobkeeper for new employees

 

The government has registered a new legislative instrument on the 14 August, whereby the eligibility date for assessing employees eligible to Jobkeeper is Now 1 July 2020.

 

As you would recall, the eligibility date for employees to be enrolled in jobkeeper was the 01 March 2020.

Now this date has been shifted to 01 july 2020 providing room for further claims for additional employees initially to September 2020.

 

And there is another change:

There is now an ability for an employee (and eligible business person ) to RE-NOMINATE for Jobkeeper with a new employer under certain circumstances.

 

What does this mean to you as employer:

  • Any employees that were employed as at 01 July 2020 under a permanent part time / Full time basis will be eligible for Jobkeeper (subject to the other eligibility conditions)
  • Any long term casual employees that meet the 12 month test as of 01 July 2020 now become eligible for jobkeeper (not employed by any other entity)
  • You may have employees turning 18 between March and July 2020. These employees would be eligible for jobkeeper now
  • Any employees whose immigration status changed between March and June 2020 may be eligible for Jobkeeper

 

Few clarifications that I am sure you have circling your head at the moment:

 

  • The change starts for jobkeeper fortnights commencing on 03 August 2020.

 

  • The ATO has confirmed that for fortnights commencing on the 3rd August and 17 August employers will have until the 31 August to meet the wage payments for employees who are now included in the Jobkeeper under the 1 July eligibility test (not for the prior employees though…..)

 

  • No, you do not need to satisfy the turnover test again, at least until the 28th September

 

  • Remember that ALL eligible employees must be in job keeper if they qualify and accept to be nominated.

This is known as the “one in, all in” principle

 

  • Since August is a 3 fortnight period for the purposes of jobkeeper, you must ensure that your employees receive the minimum $1500 per fortnight for the three fortnights, otherwise you will not be eligible to receive the payment

 

  • For any new employees entering the scheme you will need to Complete the nomination form as soon as possible (just like you did at the beginning of the scheme.

 

Feel free to contact us with any enquiries

 

The team at KARDIA GROUP.

 

End of Financial year end – Last few reminders

Since we are on the last few days of the financial year we thought it would be useful to send a couple of reminders to ensure you are all up to speed with all compliance issues coming up. Short and straight to the point:

 

  • For individuals, COVID 19 brought up the opportunity to have an early access to your super provided you satisfy certain conditions.
    • You can access up to $10,000 before the 30 June

Ensure you really meet the conditions such as being unemployed or having suffered a reduction in your work hours by more that 20% among other conditions. Check the full eligibility on the link below: https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-your-super/#Compassionategrounds

 

    • If you are intending to make personal deductible superannuation contributions ,Today or tomorrow would be the last few days you have to pay those so they count towards your 2020 year.

Remember to keep in mind the concessional Caps and the bring forward rule.

 

  • For small businesses:
    • The second round of the Small Business COVID 19 adaptation Grant program will open on the 1st of July 2020.

Check the details here https://www.business.qld.gov.au/starting-business/advice-support/grants/adaption

 

    • Remember the $150,000 instant asset write off is still available and it has now been extended to 31 December 2020.

 

    • If you are receiving Jobkeeper payments, these will be TAXABLE INCOME for your business. Keep this in mind for your tax planning

 

    • If you are considering paying extra super for the business owners, these need to be made within the next two days so the funds are cleared in your superannuation fund by the end of the month

 

    • If applicable, remember to attend your stock take, you can value the items at cost or market value.

 

    • By now, you would be using your Single touch payroll (STP) compliance system to process your wages. These has various implications when coming to the end of the financial year:
      • You do not need to supply your employees with a payment summary unless you want to. Notify your employees that they will not be receiving the annual PAYG certificate.
      • You do not need to lodge annual payment summaries with the ATO anymore
      • You will need to attend the finalisation process for your wages in your STP system. This is basically an electronic declaration processed through your payroll system.
      • The key dates for you to complete the declaration are:
          • 14 July for employers that have 20 or more employees
          • 31 July for employees that have 19 employees or LESS
    • Remember your June Jobkeeper reporting is due by the 14 July

 

    • Remember your Super guarantee payment for the quarter ended 30 june 2020 is due on the 28th july

 

    • Remember the BAS for June 2020 will be due on 28 July for quarterly lodgers or 21 July for monthly lodgers.

 

  • For Property  Investors

 

    • From 01 July 2019 there is no deductions for Vacant Land unless the land is used in carrying on a business (e.g. an active farm)

This means there is no deduction for things like Interest, rates or maintenance expenses.

 

    • There is an additional 10% CGT discount for those Individuals who provide affordable rental housing for periods totalling at least three years.

 

    • From 01 July 2020, there is no Main residence exemption to foreign residents except in limited circumstances

 

If you have any questions regarding the above, please do not hesitate to contact us here at KARDIA GROUP.