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.
3 June 2020
If you are claiming the JobKeeper payments, you are required to complete a business monthly declaration with the ATO. You must do this in the first 14 days after the month you are claiming for.
The ATO will ask you to re-confirm the business participant details and your eligible employees (ensuring they’ve been paid at least $1,500 per fortnight). You will also need to provide the ATO with information about your GST turnover for May and projected GST turnover for June.
The information you provide is not a re-test of your eligibility.
If any of your eligible employees change or leave your employment, you will need to update this employee information through your monthly declaration.
For instructions on how to complete your monthly declaration, please click here.
If you require help completing your declaration or would like more information, please contact your local Boyce accountant.
23 May 2020
Amidst everything that has been happening in Australia since COVID-19, the Super Guarantee Amnesty finally came into effect with The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 receiving Royal Assent.
The amnesty provides employers with an opportunity to self-correct historical superannuation guarantee (SG) non-compliance, without incurring the administration component or penalties. The amnesty period applies from the 24th May 2018 to 7 September 2020.
Ordinarily, where an employer fails to pay an employee’s super on time, the employer will be required to lodge a Super Guarantee Charge (SGC) statement and pay the SG charge on any SG shortfall amounts.
The SGC is made up of:
- SG shortfall amounts;
- Interest on those amounts;
- An administration fee of $20 per employee per quarter.
Additionally, if any employer lodges their SCG statement late, they are also liable for a “Part 7” penalty. This penalty is paid on top of the SGC that employers owe, with the maximum penalty being 200% of the SCG amount. The Commissioner of Taxation currently has the power to remit all or part of the penalty payable.
No part of the SCG payment or penalties is tax deductible.
3 April 2019
On Tuesday 2nd April, the Federal Treasurer, the Hon Josh Frydenberg, handed down the Coalition Government’s national budget for the 2019-20 Financial Year. In the budget the Treasurer announced a return to a budget surplus, with a surplus of $7.1 billion for 2019-20.
The clear focus was to bring the budget back to surplus without increasing taxes. There is no significant taxation reform announced in this budget, but there are a number of mostly minor tweaks to the current system.
There is a theme in this budget to provide for future growth without burdening future Australians to fund these measures while still delivering tax relief.
This is a budget preceding an election, so there are a number of measures within this budget that are designed to improve the Morrison Government’s standing with voters.