9 August 2020
In response to the ongoing pandemic and the tougher restrictions in Victoria, the Treasurer has announced changes to the eligibility requirements for JobKeeper 2.0, as well as a change in the relevant date for employment for both the existing scheme as well as JobKeeper 2.0.
Please note that the changes to the decline in turnover tests under JobKeeper 2.0 will not affect JobKeeper 1.0 which will run until 27 September 2020.
Key change to JobKeeper 1.0
From 3 August 2020, the relevant date for employment will move from 1 March 2020 to 1 July 2020. This change is intended to increase employee eligibility both under the existing scheme (JobKeeper 1.0) as well as the extension (JobKeeper 2.0).
Under this announced change, employees will be eligible if they:
- Are currently employed by an eligible employer (including where they were stood down or rehired)
- Work for the eligible employer (or another entity in their wholly owned group) either: a full-time, part-time or fixed-term employee at 1 July 2020; or a long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 and not a permanent employee of any other employer.
- Were aged 18 years or older at 1 July 2020 (if an employee is 16 or 17 they can also qualify if they are independent or not undertaking full time study).
Please note the other employee eligibility requirements around nomination of eligible employer, Australian residency and government payments remain unchanged.
We are awaiting further details of how the ATO will be managing this change at the time of this e-Alert.
6 August 2020
Earlier this year, we proudly and successfully released our next generation management reporting application Boyce MI (BMI).
BMI was designed to take the guess work out of the monthly reporting process; putting easy to understand information into your hands so you can make better business decisions.
BMI was built from the ground up as a web application that connects with accounting data in the cloud, so you easily connect and access your information from anywhere with a modern web browser.
Benefits of BMI
- Boyce’s unique management reporting system at your fingertips
- Know where your business’s cash flow is and flexibly change your plans to meet demands
- Work on your business, not in your business, by proactively planning your year and then reporting progress against the budget
- Readily adapt to change by creating additional budgets or reforecasts for what-if planning
- Work wherever, whenever. Accessible from a modern web browser over any internet connection
- Fast multi-level reporting (whole of business, enterprise and summary)
- Built in help documentation for step by step guidance
- Receive monthly updates to keep you in the loop with new developments & features
Features of BMI
- Works with Xero, MYOB AccountRight Live (cloud only) and any accounting system with Excel export
- Import a budget in the Boyce format
- Reforecast - export actuals over your existing budget
- View reports on screen or export to Excel and PDF
BMI is available in a monthly reporting package or to purchase directly.
If you would like more information on how Boyce MI can streamline your reporting process and help you to strengthen data-driven decision making for your business, please speak to your accountant.
25 June 2020
30 June is just around the corner, which means the start of another financial year. 2020 has been a whirlwind but it is time to start preparing to finalise the 2020 financial year to complete budgets and scenario modelling for the new financial year.
Effective tax planning reduces tax payable and that is so important in these times as it puts more money in the bank to help your business survive & grow.
What's changing in terms of legislation this year?
The Federal Budget has been delayed this year until 6th October amid COVID-19. .
The Company Tax Rate reduces to 26% starting on the 1st July 2020. This is for Companies with a turnover of less than $50m. This is down from 27.5% in this current year and will reduce to 25% on 1st July 2021.
Single Touch Payroll
Since the implementation of STP employers will no longer need to send employees their payment summary/group certificate for the financial year. Instead they will receive their payment summaries now known as an ‘Income Statement’ directly from the ATO via their MyGov account.
For employers you will need to lodge a finalisation for the financial year in your accounting software via the STP channel by the 14th July 2020. Please note this process will differ for each accounting program.
10 June 2020
The Federal Government’s $150,000 instant asset write-off scheme will be extended until the end of December 2020 to support millions of businesses which are set to benefit from the accelerated deductions.
After expanding the scheme from covering assets with a cost of less than $30,000 to a cost of less than $150,000 and extending access to the scheme to include medium sized businesses in response to the COVID-19 pandemic, the Federal Government has announced that it plans to extend the deadline for accessing the scheme from 30 June 2020 to December 31 2020.
The Treasurer, Josh Frydenberg, said the extended timeframe would help firms to invest in assets to support their business as the economy reopens and coronavirus health restrictions continue to be eased.
The instant asset write-off scheme allows small and medium-sized businesses to bring forward tax deductions on eligible asset purchases.
Businesses with a turnover of up to $500 million per year will be able to claim an immediate tax deduction on certain asset purchases that cost less than $150,000.
5 June 2020
Following on from the previous Payroll tax relief measures, the NSW Government has now announced that any top up payments made to employees for JobKeeper will be exempt from payroll tax.
Further, The State Insurance Regulatory Authority (SIRA) has determined that only payments made for work undertaken or hours worked are to be included as wages to calculate workers compensation premiums.
Employers must pay their eligible employees a minimum of $1,500 per fortnight to receive the JobKeeper payments. Any additional wages paid to employees to meet the requirements of the JobKeeper scheme will be exempt from payroll tax and workers compensation.
If you're an employer who pays wages in NSW, you must register for payroll tax if your total Australian wages exceed the relevant monthly threshold.
If you're a member of a group, the total Australian wages paid by all members of the group determines whether you should register for payroll tax.
For more information on payroll tax or workers compensation, contact your Boyce Accountant.