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.

 

JobKeer UPDATE operative provisions

UPDATE JOBKEEPER SUBSIDY PROGRAM

 

Some of you would have received a text message on your phones yesterday about 5:48 pm directly with the ATO with some updated information regarding the Jobkeeper subsidy.

 

So, we thought it would be good if we summarise and give you an updated view of how this program is likely to work.

The actual document is presented by the ATO on the following link: https://www.ato.gov.au/General/JobKeeper-Payment

 

The operation in broad details is as follows:

  • The scheme requires an initial registration with the ATO. The application for the scheme will start on the 20th April 2020 via online application.

Cant’ give you a link until that date, however would be important to receive updates directly from the ATO. You can subscribe to the updates here: https://www.ato.gov.au/Job-keeper-payment/

As soon as the registrations open we will notify you. You will be able to enrol or we will be able to do it for you.

 

  • You must check your eligibility as employer.Here is where the ATO has provided some additional information:
    1. Determine if you as employer are eligible – AKA the 30% drop in turnover test. / 15% drop in Turnover for ACNC registered Charities

There are three ways to determine the turnover test:

  • Compare your turnover in March 2020 to March 2019
  • Compare your projected turnover in April 2020 to April 2020
  • Compare your Projected turnover April to June 2020 to April to June 2019
  • An alternative test as approved by the ATO .

 

Few things to mention here:

  • The turnover is based on your GST Turnover. (regardless of your reporting cycle, monthly or quarterly)
  • You only need to meet the test ONCE, however you will have ongoing reporting requirements (not yet defined by the ATO)
  • If you do not qualify as at 30 March 2020, you can apply the tests above for any month or quarter, and once met you will be eligible for the subsidy from that fortnight onwards.

 

  • Determine eligibility of the employees.
    1. Permanent / part time employed by you at 01 March 2020
    2. Casual employees employed systematically for at least 12 months prior to 01 March 2020
    3. At least 16 years of age
    4. Australian permanent residents / Citizens
    5. Special visa holders

 

  • Your employees must be Nominated for the jobkeeper program
    1. Notify your employee that you are nominating them
    2. Employee must agree to the nomination by signing the JOBKEEPER EMPLOYEE NOMINATION NOTICE (form can be downloaded from this link:  https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/
    3. This form is only for your records.
    4. This form is to be returned to the employer before the end of April 2020.

 

  • Payment must be made:
    1. Once you have determined the eligible employees and your eligibility as employer for the program, you NEED TO PAY the employees at least $1,500 per fortnight.
    2. Continue to pay them for as long as you continue claiming the subsidy or until the end of the program.
    3. Tax must be withheld as appropriate.

 

  • The employer will be required to process a Claim for the Jobkeeper Payment at the end of the month :
    1. Process claim via ATO portal , likely performed by us, tax agents.
    2. Report No. of eligible employees
    3. report to the ATO on an ongoing basis the number of employees, terminated employees etc.

 

  • Superannuation:

There seems to be some new rules being introduced by the government to not require super guarantee on the additional payments as a consequence of the Jobkeeper. However this is not finalised.

So, for the moment the position seems to be as follows:

 

– If your employee earns over $1500 per Fortnight, full super applies as normal.

– If your employee is receiving the payment but not performing any work, there is no requirement for super to be calculating on the amount to $1500.

– If your employee’s wages are less than the Jobkeeper, you only pay super on the actual portion related to the hours worked, any extra payment to reach $1500 is not subject to superannuation

 

Final Comments:

– All Jobkeeper payments are assessable income for the EMPLOYER

– No GST is applicable in this income

– The final details of the program are not yet released in full, the ATO is still fine-tuning the final details, so we will continue providing updates as they get released.

 

 

If you have any questions regarding the above, please call us and we will be happy to discuss further.

The Team at Kardia Group 

T: 07-33924900

 

 

 

LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION.

 

 

JobKeeper Subsidy

Another development in the fight to keeps businesses afloat:

This time around, the government has released a subsidy program called the JOBKEEPER program.

This is mainly designed to assist employers / sole traders cover the costs of their wages.

Eligibility Criteria for small businesses just like yours:

– Turnover of less than $1 Billion per annum
– The turnover of your business is REDUCED BY MORE THAN 30% relative to a comparable period a year ago
(This period is at least a month )

Eligible employees:

– Full time / Part Time / long term  casuals / stood down employees
– Casual employees eligible if they have been with the employer on a regular basis for the previous 12 months as of 01 March 2020
– Employee Immigration status: Only those that are Australian citizens, Permanent resident visa holders, New Zealanders with 444 visa, special category visa holder residing in Australia continually for 10 years or more
– Re-engaged employees who were employed with the same employer on 01 March 2020
– SELF EMPLOYED individuals will be eligible to receive the jobseeker payment where their income has reduced over 30% compared to a prior year (period being at least one month)

The Process:

In order to receive the subsidy you must:
– elect to participate in the scheme by completing an expression of interest here https://www.ato.gov.au/general/gen/JobKeeper-payment/?=redirected_JobKeeper
– You will be required to :

  • provide supporting information to demonstrate the downturn on your business
  • Report the number of eligible employees employed by the business on a monthly basis going forward.

The Payment:

– Eligible employers will receive a payment of $1,500 per fortnight PER EMPLOYEE FOR UP TO 6 MONTHS
– The payment is the wages BEFORE Tax
– You are able to top up the payment to your employees
– You will receive these payments a month in arrears
– It will be up to you as employer if you want to pay superannuation on any additional wage paid because of the Jobseeker payment.

If you have any questions regarding the above, please contact us immediately
We will be glad to assist in these difficult times

The team at KARDIA GROUP