Keeping you updated
Before we bombard you with all of the available stimulus for employers and businesses, we'd like to let the individual clients know that for those that are able to work from home there will be an extra tax deduction concession of being able to claim a higher hourly rate for home office in your 2020 Tax Return – please refer to further details below. Other individual and household assistance, that includes social security and early release of superannuation can be found here.
Business Based Clients
We are sending you this broad summary of the Government's key aspects of assistance to help with the economic fallout that will, and is already beginning to occur.
Boosting Cash Flow for Employers!
[from $20,000 up to $100,000]
[payback not required]
[not to be confused with JobKeeper]
The PAYG Withholding [W2 label] on the March 2020 BAS - through to the June 2020 BAS - will not be necessary for you to pay. It needs to be lodged, but not paid - leaving you with the cashflow to help fund your business. Post 1st July 2020, this is then equally matched in equal credits again - from the June BAS - through to the September 2020 BAS - depending on whether you're monthly or quarterly.
The Government will credit your ATO integrated client account directly.
You do not need to apply for this! It will just be credited automatically.
Please click here for further information.
[More Detail Released]
[Enrolments from 20th April 2020]
[non payroll Directors, Partners and Beneficiaries included - yet limited - see detail on links]
We have provided some links below to websites that are being regularly updated by the Government and the ATO, as they grapple with the introduction of JobKeeper, and the mechanics of how it is to be handled over the coming period.
There are clearly many questions being asked around the employer side of things with respect to managing the cash outflow and administering the processing of payroll – and the delayed receipt of the subsidy, not expected until early May 2020.
ATO concession for the first two JobKeeper fortnights - there are concessions being made available in April - the ATO expects these are to be caught up and paid before the end of April. [see Question 3 on page 8 of the PDF we link to below from one of our associations].
For those of you who process your own payroll, if eligible, we ask that you follow the ATO's step by step process - particularly once the 20th April update occurs. You may wish to start the process beforehand to establish your access to the ATO's Business Portal and myGovID authentication - as we anticipate their systems will be inundated shortly.
We ask that if you have questions, please first browse the content found on the links supplied, as this is also our source of detail on these areas. The content found on these links is being updated regularly, sometimes hourly, so we suggest you re-visit for updates.
We do however also have available our associations JobKeeper summary with more practical tips, questions and answers, that you could read through for those of you who may not find the answers to your questions on the other links supplied above.
For those clients that we process payroll for - we will be in contact with you separately.
Preparation of March 2020 BAS
[Being prepared with lodgement delay]
For those clients that we prepare these for, please know that we are drafting these as rapidly as we possibly can, however, we are not sending them through for approval or lodgement as yet.
We are going to lodge these on their due date and no earlier - as our information from the ATO is that they do not wish these to be lodged, until they have their own system enabled to process the credit, and that this may not be available until 28th April, 2020.
Short Term Interest Only Business Loans
[Of up to $250K]
Our finance broker has been kind enough to outline their experiences, and we ask if you wish to seek this pathway to fund your business through this difficult period, you can refer to the pdf here.
NSW Payroll Tax
Employers that have NSW Payroll Tax obligations, are able to not pay for the months of March, April or May 2020, and will be given an annual tax liability discount of 25% when they lodge their annual reconciliation, due 28th July 2020. For further information please click here.
NSW Government Grants
If eligible, from 17th April,2020, you can apply for the small business COVID-19 support grant. For further information, criteria and to apply online, please click here.
[Working from home tax deduction]
From 1st March 2020 until 30th June 2020, individuals who are working from home, are able to on their 2020 Tax Return, claim under one of the following methods-
- Claim a higher rate of 80 cents for each work hour you work from home
Fixed rate method:
- Claim the standard 52 cents per work hour for running costs
- The work-related portion of your actual costs including phone and internet expenses, computer consumables, stationery
- The work-related portion of the decline in value of computer, laptop or similar device
Actual cost method:
Please click here for further information.
- Claim the actual work-related portion of all your running expenses, calculated on a reasonable basis
ATO Payments Due
[Business or Personal]
If there are any ATO obligations that require payment, the ATO is allowing almost in every case, an interest free deferral until September 2020 if you can advise that COVID-19 has had an adverse effect to your circumstances.
You can contact the ATO directly on their contact number, which would have been disclosed on your Notice of Assessment or Activity Statement. If you wish, or do not have any luck contacting them directly, you may contact our office to assist you.
Disclaimer: All information provided in this newsletter is of a general nature only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.