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  • 11Nov2020

    Get Ready for ATO Payment Plans – with Strings Attached!!!

    Get Ready for ATO Payment Plans – with Strings Attached!!!

     Taxpayers will need to prepare for tougher rules around tax debt payment plans and justifying historical JobKeeper payments.

    In a recently published article in the accounting press, a newly appointed tax controversy partner at Holding Redlich, Sue Williamson FCPA, warned that accountants and their clients were going to need to work together to prepare for new ATO compliance measures.

    Ms. Williamson, who is also a member of CPA Australia’s Taxation Centre of Excellence, said that the first frontier was likely to be businesses needing to prove their JobKeeper entitlements were justified if they were selected for audit. To substantiate that they received the right amount under JobKeeper, companies must have records on how it was estimated and proof that the money was passed on to employees.

    “The issues we’re starting to see come through around JobKeeper claims typically relate to calculations around turnover,” Ms. Williamson said.

    The ATO is warning,  that while it remains sympathetic to the plight of struggling businesses, there will come a day soon where new tax payment plans will require businesses to provide a plan for repayment of the monies.  

    Senior tax advisers throughout the country have been told that the ATO will soon be wanting greater clarity and understanding of why businesses cannot pay their current tax obligations and a future business plan showing how and when they expect to get out of debt.

    And while it is unlikely to be this year, at some not too distant point Williamson said she expected the ATO to become far less patient with repayments unless there were good grounds to have them delayed. Simply requesting a delay would not be enough. Taxpayers would need to provide proof of why they need extra time to start paying and where the money would be coming from.

    Ms. Williamson said the key to preparing for this tougher ATO compliance regime, was the ability for accountants and clients to have frank discussions about these issues and put solid plans in place.

    It is understood the ATO has no intention of clawing back money where honest mistakes have been made with JobKeeper but will crack down heavily where they uncover deliberately fraudulent behaviour.

    It is worth noting that the ATO has redeployed 3000 staff to focus on audit activities. 


    Affinitas Accounting offers all your financial needs under the one roof

     

    Contact Us If you Need Help

    For help with tax debt payment plans and JobKeeper, contact 07 3359 5244 or email

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  • 05Nov2020

    Refunds for Tax Losses

    2019 tax cuts

    Refunds for Tax Losses

    If your company has made a loss, you may be able to claim a tax refund for tax previously paid on profits.

    In the 2020-21 Federal Budget, the Government announced that businesses with turnover under $5bn* will be able to offset any losses made between 2019-20 and 2021-22 against previously taxed profits between 2018-19 and 2020-21.

    The loss carry-back rules enable a company to offset tax losses against profits taxed in a previous year, generating a refundable tax offset. The amount carried back can be no more than the earlier taxed profits, limiting the refund to the company’s tax liabilities in the profitable years. The company can choose to carry-back a loss or carry it forward. That is, tax losses for 2019-20, 2020-21, or 2021-22 income years can either be:

    •  Carried forward and deducted against income derived in later income years; or
    • Carried back against income of earlier income years as far back as the 2018-19 income year to produce a refundable tax offset.

    Previously, tax losses could only be carried forward and deducted against income in later income years.

    This is not the first time that carry-back losses have been allowed. The loss carry-back rules were introduced some years ago by the Gillard government for the 2012-13 year, then repealed.

    The loss carry-back rules also interact with the Government’s Budget measure allowing immediate expensing of investments in capital assets (See Tax deductions for investing in your business). The new investment will generate significant tax losses in some cases which can then be carried back to generate cash refunds for eligible companies.

    What entities are eligible to carry-back losses?

    Corporate tax entities are eligible to carry-back losses – a company, a corporate limited partnership, or a public trading trust – BUT only if the entity has lodged an income tax return for the current year and each of the five years immediately preceding it. If your company has not kept up to date with its reporting obligations, it might not be able to use the new rules.

    Claiming the refundable tax offset

    Businesses will need to elect to utilise their carry-back losses when they lodge their 2020-21 and 2021-22 tax returns. That is, even if the company made a loss in the 2019-20 year, it cannot claim that loss until the 2020-21 tax return is lodged.

     For the 2020-21 income year, a loss carry-back tax offset may be available to a company if:

    •  It has a tax loss in the 2019-20 income year and/or the 2020-21 income year;
    • It has an income tax liability in the 2018-19 income year and/or the 2019-20 income year; and
    • For the 2020-21 income year and each of the previous five income years, either the entity has lodged an income tax return; the entity was not required to lodge a return, or the Commissioner has made an assessment of the entity’s income tax.

     The carry-back cannot generate a franking account deficit. That is, the refund is further limited by the company’s franking account balance.

     

    Source: Knowledge Shop Newsletter Oct 2020.


    Affinitas Accounting offers all your financial needs under the one roof

     

    Contact Us If you Need Help

    If you have any questions, you can contact 07 3359 5244 or email

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  • 30Oct2020

    Latest Tax News and Budget Announcements

    Latest Tax News and Budget Announcements

    The 2020-21 Budget delivered a range of incentives for businesses to invest.

    If you would like us to review your position and the tax impact of any investments you are contemplating, please contact us at or 07 3359 5244  and we can assist you to get the best possible outcome.

    The following is a summary of where things are at with some of the big-ticket Budget items.

    JobMaker Hiring Credits: What We Know So Far

    The JobMaker hiring credit announced in the 2020-21 Federal Budget. The legislation enabling the JobMaker scheme has not passed Parliament as yet and until this occurs, the JobMaker rules are not certain and may change. More details should be available soon and we’ll let you know as soon as we have some certainty. Here is what has been announced so far:

    What is JobMaker?

    JobMaker is a credit available to eligible businesses for hiring additional employees (not if you are merely replacing someone who left). The hiring credit is available for jobs created from 7 October 2020 until 6 October 2021.

    The credit provides:

    • $200 per week for new employees between 16 to 29 years of age, and
    • $100 a week for new employees between 30 to 35 years of age.

    Payment is from the start date of the employee for 12 months.

    When do the credits start?

    Assuming the legislation passes Parliament and your business and the employee are eligible, and the ‘additionality’ test is passed, credits can be claimed for employees hired from 7 October 2020 until 6 October 2021. The credit will be claimed quarterly in arrears by the employer from the ATO from 1 February 2021. The credit is an incentive for the employer to support wage costs and not passed onto the employee.

    For an extended article on JobMaker, including frequently asked questions, visit our blog on JobMaker Hiring Credits.

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    Tax deductions for investing in your business

    Stimulating investment spending is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses with turnover under $5bn* to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use. This means that an asset’s cost will be fully deductible in the year it’s installed ready for use, rather than being claimed over the asset’s life. And, there is no cap on the cost of the asset.

    When it comes to second-hand assets the rules are a bit different depending on the size of the business. Businesses with an aggregated turnover under $50 million can claim an immediate deduction for the cost of second-hand assets under the new measures.

    Businesses with aggregated annual turnover between $50 million and $500 million can still deduct the full cost of eligible second-hand assets costing less than $150,000 that are purchased by 31 December 2020 under the existing enhanced instant asset write-off. Businesses that hold assets eligible for the enhanced $150,000 instant asset write-off will have an extra six months, until 30 June 2021, to first use or install those assets.

    For an extended article on Immediate Asset Write-offs for business, visit our blog on Tax Deductions.


    Refunds for Business Tax Losses

    If your company has made a loss, you may be able to claim a tax refund for tax previously paid on profits.

    In the 2020-21 Federal Budget, the Government announced that businesses with turnover under $5bn* will be able to offset any losses made between 2019-20 and 2021-22 against previously taxed profits between 2018-19 and 2020-21.

    The loss carry-back rules enable a company to offset tax losses against profits taxed in a previous year, generating a refundable tax offset. The amount carried back can be no more than the earlier taxed profits, limiting the refund to the company’s tax liabilities in the profitable years. The company can choose to carry-back a loss or carry it forward. That is, tax losses for 2019-20, 2020-21, or 2021-22 income years can either be:

    • Carried forward and deducted against income derived in later income years; or
    • Carried back against income of earlier income years as far back as the 2018-19 income year to produce a refundable tax offset.

    Previously, tax losses could only be carried forward and deducted against income in later income years.

    Tax table reminder

     The 2020-21 personal income tax cuts announced in the Federal are now law. Employers need to ensure that the tax withheld from employee salaries is correct. The ATO has published updated tax tables that apply from 13 October 2020. Employers have until 16 November 2020 to implement the changes.

    For an extended article on refunds and tax losses, visit our blog on refunds for tax losses.

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    JobKeeper Clawback Begins

    At the recent Senate Estimates hearing, Jeremy Hirschhorn, the ATO’s Second Commissioner, stated that $120 million in JobKeeper payments had been clawed back from those either deliberately seeking to rort the system or who had made reckless mistakes.

    Mr. Hirschhorn went on to say that there did not appear to be widespread fraud across the Government’s stimulus measures and most mistakes were honest. In the cases identified so far, JobKeeper had not been clawed back from employers making honest mistakes but these employers were prevented from making future claims.

    In September, the ATO noted that compliance checks had halted 55,000 JobKeeper applications at the very first stage, because they did not meet the eligibility criteria, and delayed $1bn in payments to more than 75,000 applicants for further review.

    Eleven matters have been referred to as Serious Financial Crime Taskforce operations and around 50 matters referred for criminal investigation. But overall, the Tax Commissioner stated, “the vast majority of Australians have done the right thing and only claimed the amounts they were entitled to.”

     Source: Knowledge Shop Newsletter October 2020


    Affinitas Accounting offers all your financial needs under the one roof

     

    Contact Us If you Need Help

    If you have any questions regarding the JobMaker hiring credits or scheme, you can contact 07 3359 5244 or email

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  • 30Oct2020

    Tax Deductions for Investing in Your Business

    Tax Deductions for Investing in Your Business

    Stimulating investment spending is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses with turnover under $5bn* to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use.  

    This means that an asset’s cost will be fully deductible in the year it is installed ready for use, rather than being claimed over the asset’s life. And, there is no cap on the cost of the asset.

    When it comes to second-hand assets, the rules are a bit different, depending on the size of the business. Businesses with an aggregated turnover under $50 million can claim an immediate deduction for the cost of second-hand assets under the new measures.

     

    Instant asset write-off thresholds

    Aggregated turnover under $10m

    Aggregated turnover under $50m

    Aggregated turnover under $500m

    Aggregated turnover under $5bn

    1 July 2018 – 28 January 2019

    $20,000

    29 January 2020 – 2 April 2020

    $25,000

    2 April 2020 – 11 March 2020

    $30,000

    $30,000

    12 March 2020 – 31 December 2020

    $150,000

    $150,000

    $150,000

    6 October 2020+ – 30 June 2022

    unlimited

    unlimited

    unlimited

    Unlimited

    Businesses with aggregated annual turnover between $50 million and $500 million can still deduct the full cost of eligible second-hand assets costing less than $150,000 that are purchased by 31 December 2020 under the existing enhanced instant asset write-off. Businesses that hold assets eligible for the enhanced $150,000 instant asset write-off will have an extra six months, until 30 June 2021, to first use or install those assets.

    For small business entities that have assets in a general pool, the changes seek to ensure that pool balances are completely written-off for tax purposes in the 2021 and 2022 income years.

    These super-charged immediate deduction rules tie into the existing instant asset write-off for businesses with a turnover under $500 million (summarised below).

    The instant asset write-off only applies to certain depreciable assets. There are some assets, like horticultural plants, capital works (building construction costs, etc.), and certain intangible assets that don’t qualify for the new rules.

    If your business will make a tax profit this year, this measure is likely to reduce the taxable income of the business for the year and it may be possible to vary upcoming PAYG installments to improve cash flow. If your business operates through a company and will make a tax loss, you might be able to use the loss to offset tax paid in previous years. Alternatively, tax losses can generally be carried forward to a future year.

     Source: Knowledge Shop Newsletter Oct 2020


    Affinitas Accounting offers all your financial needs under the one roof

     

    Contact Us If you Need Help

    If you have any questions regarding the JobMaker hiring credits or scheme, you can contact 07 3359 5244 or email

    bookkeepers brisbane people using a calculator
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  • 30Oct2020

    JobMaker Hiring Credits: What We Know So Far

    The JobMaker hiring credit announced was in the 2020-21 Federal Budget. The legislation enabling the JobMaker scheme has not passed Parliament as yet and until this occurs, the JobMaker rules are not certain and may change. More details should be available soon and we’ll let you know as soon as we have some certainty. Here is what has been announced so far:

    What is JobMaker?

    JobMaker is a credit available to eligible businesses for hiring additional employees (not if you are merely replacing someone who left). The hiring credit is available for jobs created from 7 October 2020 until 6 October 2021.

    The credit provides:

    • $200 per week for new employees between 16 to 29 years of age, and
    • $100 a week for new employees between 30 to 35 years of age.

    Payment is from the start date of the employee for 12 months.

    When do the credits start?

    Assuming the legislation passes Parliament and your business and the employee are eligible, and the ‘additionality’ test is passed (see How Can We Access JobMaker?), credits can be claimed for employees hired from 7 October 2020 until 6 October 2021. The credit will be claimed quarterly in arrears by the employer from the ATO from 1 February 2021. The credit is an incentive for the employer to support wage costs and not passed onto the employee.

    How Can We Access JobMaker?

    There are three tests for JobMaker:

    Employer eligibility

    • Has an ABN
    • Up to date with tax lodgements
    • Registered for PAYG
    • Reporting through single touch payroll
    • Keeps adequate records of the paid hours worked by the employee they are claiming the credit for
    • Another employer is not claiming JobMaker for the same employee

    Employee eligibility

    • Received the JobSeeker Payment, Youth Allowance (Other) or Parenting Payment for at least one month within the three months before they were hired
    • Between 16 and 35 years of age at the time their employment started
    • Worked at least 20 hours per week on average for the full weeks employed for the period being claimed. If the employee worked less than 20 hours, the employer cannot claim JobMaker for them during that period
    • Started work between 7 October 2020 and 6 October 2021
    • The first year of employment with the employer
    • The employer is not receiving other forms of assistance from the Commonwealth Government for the employee, for example, JobKeeper or an apprenticeship subsidy

    Additional employee test (additionality test)

    The employer’s:

    • Total employee headcount on the last day of the reporting period increased by at least one additional employee compared initially to 30 September 2020, then to the previous reporting period.
    • Total payroll for the reporting period increased compared initially to the September quarter 2020 (July, August, September 2020), then to the previous reporting period. The hiring credit cannot exceed the increase in payroll.

     

    Government entities or agencies, banks, and other institutions subject to the bank levy, businesses in liquidation, and foreign Government entities (unless a resident entity), are unable to access JobMaker.

    jobkeeper 2.0

    Key Questions Answered

    • I can only claim JobMaker if the number of employees and payroll increases. What happens if one of my team resigns through no fault of the business?

    Your business can only receive JobMaker for your eligible employees if the total employee headcount and payroll increases. If the headcount or payroll decreases or remains the same, JobMaker cannot be claimed for that period.

    For example, if you had three staff in September 2020 and hired an additional two employees in late October 2020, your business can claim JobMaker for the two new employees assuming the business and the employer are eligible and payroll has increased compared to the September 2020 quarter. However, in December 2020, one of your original staff members resigns. As a result, your business can only claim JobMaker for one eligible employee in December as your headcount has increased by one, not two, compared to the September 2020 baseline.

    A similar baseline concept applies to payroll. If you employed new eligible employees in October 2020 but your overall payroll remained the same or only increased marginally because the hours of your existing staff reduced when the two new employees were employed, then the JobMaker credit will only be the additional payroll amount. That is, if the JobMaker credit for the two employees for the quarter is $8,960, but payroll compared to the September 2020 quarter only increased by $1,200, then the JobMaker credit you receive would be $1,200. The JobMaker credit cannot exceed the increase in payroll.

    Each month, employers will need to ensure they pass these ‘additionality’ tests before claiming.

    Your headcount and payroll increase is measured on the last day of each reporting period from the date your first new employee started. For example, if your first new employee joined in October 2020, your baseline is set at that point. If a new employee starts in January 2021, your payroll and headcount baseline is measured from the last reporting period, in this case, December 2020 for headcount and the December quarter for payroll.  That is, your baseline commences from the date your new employee starts and then is reassessed each reporting period to ensure there is an increase.

     

    • If I don’t hire new staff until January 2021, can I claim JobMaker for 12 months or only up to 6 October 2021?

    JobMaker is available for 12 months for eligible employees hired from 7 October 2020 until 6 October 2021. If you hire new employees from January 2021, JobMaker is available for 12 months for these employees assuming that the employees and business are eligible and the ‘additionality’ test is passed.

    The baseline for the ‘additionality’ tests – headcount and payroll – starts from the start date of your new employee. The Government has indicated that the baseline for the ‘additionality’ test will be adjusted in the second year of the program to ensure an employer can only receive JobMaker for 12 months for each additional position created.  The detail of exactly how these rules will work has not been released as yet.

     

    • My business did not have employees in September but I hired my first employee in late October. Can I claim the JobMaker credit for them?

    Businesses with no employees on 30 September, cannot claim JobMaker for their first employee. However, JobMaker can be claimed for your second and any subsequent employees that started on or before 6 October 2021.

     

    • Can the business get JobKeeper and JobMaker?

    No. Once your business exits JobKeeper and is no longer receiving JobKeeper payments for any employees or business participants, if eligible, the business could then start to receive JobMaker credits. The business is eligible for the hiring credit in the reporting period following your JobKeeper exit date.

     

    Caution

     The JobMaker credit and the details of how the rules will apply are subject to change. Please do not make decisions based on the JobMaker information available as the final shape of the legislation could change. We will provide a summary of the rules and how you can claim the JobMaker hiring credit as soon as the rules are confirmed.  (Source: Knowledge Shop, Newsletter 10 Oct 2020)

     


    Affinitas Accounting offers all your financial needs under the one roof

    Contact Us If you Need Help

    If you have any questions regarding the JobMaker hiring credits or scheme, you can contact 07 3359 5244 or email

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  • 22Oct2020

    ATO Tax Update: Where are My Tax Cuts?

    ATO Tax Update: Where are My Tax Cuts?

    You’ve heard about them…

    You’ve read about them…

    But when (and how) are you going to receive the personal tax cuts announced in the Federal Budget earlier this month??

    Part of the announcement was that the tax cuts were backdated, for all employees, to 1 July 2020. Does that mean you are due a lump sum catch-up amount? Unfortunately, that is not how it will work in practice.

    The extra dollars you are eligible for (via the tax cut) will be calculated across the entire year – but it will be paid to you in even installments in your weekly/fortnightly or monthly pay.

    The ATO issued updated tax tables on October 13 to allow for these tax changes.

    Employers throughout Australia have until November 16 to implement these new tables in their payroll cycle. Those who use payroll software will be provided with system updates to implement the new tax rates. Most people will see an extra $20 per week in their pay packets starting from mid-November.

    And the final check will be via your annual 2020-21 tax return. In other words, if you have not received the full benefit of the tax cuts before 30 June 2021, you can expect some extra back in your end of the year tax return.

    So, while a lump sum would be nice – as long-term, professional tax accountants our motto is: ANY TAX CUT IS A GOOD TAX CUT!!!

     


    Contact Us If you Need Help

    Employers who are unsure about how to implement the new tax tables can contact 07 3359 5244 or

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  • 28Sep2020

    Beware: New Alternative Tests for JobKeeper 2.0

    jobkeeper 2.0

    Beware of New Alternative Tests for JobKeeper 2.0

     The introduction of JobKeeper 2.0 will be starting from 28 September 2020 onwards. The new levels of payments and how they will be assessed have been widely publicised – you can read more about that here.

    The original JobKeeper legislation included various alternative tests that could be applied to various businesses to help determine whether they pass the decline in the turnover test. If an entity has already passed the original decline in the turnover test for a JobKeeper fortnight before 28 September 2020 then there is no need to apply the original test again.

    The updated alternative tests released by the Commissioner of Taxation are broadly similar to the alternative tests that were released in connection with the original decline in the turnover test. However, there are some key differences.

    ‘Projected’ GST Turnover No Longer Applies

    The new alternative tests use the concept of projected GST turnover. The comparison only uses current GST turnover. In other words, you will only be using actual GST turnover figures with previous periods – and not using any estimates or projections.

    Capital Asset Sales Included in GST turnover

    One of the key differences between the concept of current GST turnover compared with projected GST turnover is that proceeds from the sale of capital assets are included in current GST turnover calculations (unless the sale of the asset is input taxed), while proceeds from the sale of capital assets are ignored when calculating projected GST turnover. This is likely to make it more difficult for entities to access the JobKeeper extension if they have sold plant and equipment, vehicles, property etc during the test period.

    GST Reporting Method Must Be Consistent with Accounting

    The timing of supplies for the JobKeeper decline in turnover tests apply to these new alternative tests as well. This means that if an entity is registered for GST it needs to calculate current GST turnover using the same accounting method that is used for GST reporting purposes (ie, cash or accruals). Entities that are not registered for GST can choose which method, but must use a consistent approach.

    Substantial Increase in Turnover Test Modified

    The “substantial increase in turnover” test has been modified to provide an additional level of flexibility in accessing this test. Under the original version of the rules, you had to start by checking if there was an increase in turnover of at least 50%, 25%, or 12.5% in the 12, 6, or 3 months before the test period. While this is still possible under the updated version of this test, an entity can also access the test if there was an increase in turnover of at least 50%, 25%, or 12.5% in the 12, 6, or 3 months before 1 March 2020.

    Irregular Turnover Test Modified

    A similar modification has been made to the “irregular turnover” test and the wording used for this test has been updated. Under the original version of the rules you started by looking at whether the entity’s lowest turnover quarter was no more than 50% of the highest turnover quarter for the quarters ending in the 12 months immediately before the applicable turnover test period. However, under the updated version you look at whether the entity’s current GST turnover for any consecutive 3-month period before the applicable test period or 1 March 2020 is no more than 50% of the highest of the entity’s current GST turnover for any other of those 3-month periods.

    Changes to Sole Trader or Small Partnership Test

    When applying the test for sole traders or small partnerships where the sole trader or a partner could not work for at least part of the comparison period because of sickness, injury, or leave, the updated version of the test requires you to look at the current GST turnover for the month immediately before the month in which the sole trader or partner did not work. The original version of the test looked at the turnover for the month immediately after the month in which they returned to work.

    Sole Trader Eligible Business Participants

    To be able to claim the Tier 1 JobKeeper 2.0 payment as a sole trader (initially $1200/fortnight),  eligible business participants need to have been actively engaged in the business for 80 hours or more in February and provide a declaration to that effect. All other eligible business participants will qualify for Tier 2 benefits (initially $750/fortnight)


    Contact Us If you Need Help

    We’re here if you need help with JobKeeper 2.0, including support to apply the alternative tests. Contact Affinitas Accounting on 07 3359 5244 or

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  • 18Sep2020

    Reason to Celebrate Our Great Family Businesses

    In case you missed it, we celebrate National Family Business Day each year on Friday 18th September.

    During this 2020 year of its Covid-19 challenges, it is, more than ever, a day to say thank you to a sector of our economy that represents over 70% of Australian businesses and employs over 50% of the nation’s workforce.

    If you don’t run a family business yourself, you definitely know someone who does. Whether it’s your plumber, gardener, local newsagent, florist, or your doctor – every one of those is its own family business.

    The Affinitas Accounting team, during the past 20 years, has been proud to be associated with some great clients who have started and continue to run their family businesses. They are loyal, hardworking, and justifiably proud of what they are able to achieve.

    The Affinitas group is a family business – one that continues to provided tax advice, accounting services, financial planning, and financial advice to other family businesses.  

    So, we’d like to take a moment today to acknowledge all family businesses and thank them for the hard work and sacrifice that makes them so significant to our communities and our broader economy. Keeping a family business alive and continuing to operate in 2020 has been a feat worth celebrating.

     

     

    Contact Affinitas Accounting on 07 3359 5244 or

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  • 04Sep2020

    JobKeeper 2.0 – What We Know So Far!

    The end of September will soon be upon us and businesses needing ongoing support must get familiar with the rules of JobKeeper 2.0.

    The first thing to note is that businesses need to qualify separately for each extension period.

    • To qualify for the first extension period, running from 28 September 2020 to 3 January 2021, small businesses will need to satisfy the 30% decline in the turnover test for the September 2020 quarter.
    • To qualify for the second extension period, running from 4 January 2021 to 28 March 2021, small businesses will need to satisfy the 30% decline in the turnover test for the December 2020 quarter.
    • Then, businesses need to understand the reduced payment rates that apply under a two-tiered system per period.

     

    For the first extension period, employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020 will receive $1,200 per fortnight, while all other employees will receive $750. For the second period, these rates will drop to $1,000 per fortnight and $650 per fortnight, respectively.

    The ATO has announced that businesses currently enrolled in JobKeeper will not need to re-enroll for JobKeeper 2.0, nor will they need to provide an employee nomination notice again.

    Further guidance on calculating the decline in the turnover test will be announced soon, but it will be expected to rely heavily on Total Sales (G1) less GST (1A) reported on business BAS for each relevant quarter. This figure will then be compared with figures from the same quarterly BAS, lodged 12 months prior.   

    An ATO spokesperson said additional turnover information may be allowed to demonstrate that businesses met the decline in the turnover test for the September quarter from the start of October onwards.  The information must be provided before you complete your November monthly declaration.

    Affinitas Accounting will be keeping up to date with any additional JobKeeper 2.0 information as it is released, so stay in touch and keep a lookout for more updates via email and social media.

    Contact 07 3359 5244 or service@affinitasaccounting .com.au for more info

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  • 19Aug2020

    Employers MUST Review JobKeeper By Friday 21 August

    Employers must assess by this Friday (21 August) whether they are able to add extra employees to their August JobKeeper claim, following last Friday’s announcement by Treasurer Josh Frydenberg.

    While the specific rules dealing with JobKeeper 2.0 have not yet been released, Treasurer Frydenberg announced some changes relating to employee eligibility under the current scheme.

    Employers must understand the rules (see below), then identify and nominate all additional employees who could be eligible for JobKeeper by Friday 21 August to ensure that they comply with the “one in, all in” principle and that they meet the nomination requirements.

    There has been lobbying to extend this deadline, but at this stage, the extra employee nomination notices must be provided within seven days of last Friday’s week’s announcement.

    New test date for employees

    Under the original JobKeeper rules, an employee generally needed to have been employed by the entity on 1 March 2020 and to have met certain conditions as at that date to qualify as an eligible employee. However, the Government has updated the rules to ensure that 1 July 2020 will be the relevant test date rather than 1 March 2020 from 3 August 2020 onwards, which means that some additional employees might become eligible for JobKeeper from the 10th JobKeeper fortnight onwards. Employees who met the conditions on 1 March 2020 will continue to be eligible assuming they are still employed.

    In practical terms this means:

    • If someone commenced employment with an entity after 1 March 2020 but by 1 July 2020 and they were an employee of the entity on that date then they can potentially be eligible for JobKeeper from 3 August 2020 onwards, assuming all other basic conditions are met.
    • Casuals who had not been employed for at least 12 months leading up to 1 March 2020 can potentially be eligible for JobKeeper if they have been employed on a regular and systematic basis for at least 12 months leading up to 1 July 2020 (assuming all other basic conditions are met).
    • Individuals who failed the age-related conditions or residency conditions on 1 March 2020 can potentially be eligible employees if they met those conditions on 1 July 2020.

    Extended deadline for top-up payments

    Crucially, the ATO has announced that the deadline for making payments for newly eligible employees for JobKeeper fortnights starting on 3 August 2020 and 17 August 2020 has been extended to 31 August 2020 (to meet the condition for employers to pay at least $1500 to eligible employees in each JobKeeper fortnight).

    Employees who have moved to a new employer

    The other key change to the rules is that someone who was previously nominated for JobKeeper with one entity as an eligible employee or eligible business participant can potentially be nominated for JobKeeper with a different entity if certain conditions are met. The individual must have ceased to be employed or actively engaged in the business (as a business participant) of the original entity after 1 March 2020 but before 1 July 2020. They must also meet the conditions to be treated as an eligible employee of the new employer at 1 July 2020.

     

    Don’t Wait Until Deadline Day!!!

    Businesses should get this done within the next week so that any changes can be calculated and included in the next JobKeeper lodgement is made for August. Let your accounting firm know early if you need help. Contact Affinitas Accounting on 07 3359 5244 or

     

    Read more

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  • I’ve been dealing with Affinitas Accounting for about 3 years now and I have found them to be nothing but friendly and helpful. I’m a Bookkeeper and on occasions have been stuck with various accounting problems. Affinitas have not hesitated to spend time with me until the problem was solved. Any queries or questions have always been answered in a timely manner.

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    I’ve been using Deb from Affinitas Accounting now for many years and have found her to be excellent in looking after my taxation needs. I’m in Tasmania, Affinitas Accounting is in Queensland and distance is no barrier. She understands my business needs, everything is done in a friendly and efficient manner and I happily recommend to anyone looking for ‘down to earth’ taxation advice.

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    We’ve been with Affinitas Accounting for over 5yrs when they were known as Online Accounting & Taxation Solutions. From our initial phone call with Brad looking for an accounting team that would meet our expectations as well as provide efficient service, we’ve been really impressed with the team’s professionalism, knowledge & expertise.

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    Have been coming here for years (when it was then called online tax). Deb has been happy to always go the extra mile and doesn’t mind dispensing helpful advice throughout the year.

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    Thanks Affinitas you for all your assistance and I would strongly recommend them to anyone to use

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