8 October 2020
Phishing is a method of stealing confidential information by sending fraudulent messages to a victim. It is one of the most prevalent scams reported in Australia.
We’ve become aware that there may be a way for criminals to phish your MyGovID credentials by sending you to a fake website.
Please make sure that whenever you log into MyGovID, the URL starts with https://mygovid.gov.au/ as per the below image. Please note the trailing slash as it is very important.
These are sophisticated scams. We urge our customers to be cautious at all times.
If you have clicked on a link or provided your personal information, contact Services Australia on 1800 941 126.
To stay up to date on the latest online threats and how to respond, visit cyber.gov.au.
7 October 2020
Last night the Federal Government released the 2020-21 Budget “The Economic Recovery Plan for Australia”. The Budget was focused on providing a response to the economic impact of the COVID-19 pandemic. Today we look into the Budget to decipher what it means for our clients.
Bringing forward the Personal Income Tax Plan and retaining the middle-income tax offset
- The Government intends to bring forward the second stage of their Personal Income Tax Plan by two years to 1 July 2020. This second stage involves three tax changes:
- The top threshold of the 19 per cent personal income tax bracket will increase from $37,000 to $45,000.
- The low-income tax offset (LITO) will increase from $445 to $700.
- The top threshold of the 32.5 per cent personal income tax bracket will increase from $90,000 to $120,000.
- The Government also intends to retain the low and middle income tax offset (LMITO) for the 2020-21 income year, this was due to be removed at the commencement of the second stage of the Personal Income Tax Plan. The LMITO provides low and middle income taxpayers with a tax benefit of up to $1080.
Increasing and expanding access to the instant asset write off
The Government has proposed support for businesses with aggregated annual turnover of less than $5 billion by enabling them to deduct the full cost of eligible depreciating assets acquired from 7:30pm AEDT on 6 October 2020 (Budget night) and first used or installed by 30 June 2022. (Please note that we have not received confirmation of what will be eligible an asset).
Small business entities (aggregated turnover of less than $10 million) will also be able to deduct the full balance of their small business depreciation general pool.
27 September 2020
As outlined in our eAlert last week, the ATO has released information on the extension of JobKeeper and the changes that will come into effect today (28 September 2020). Please refer to our original eAlert here for further information, including key dates.
On the 22 September 2020, Treasurer Josh Frydenberg released the legislative instrument which outlines the alternative tests for decline in turnover for business entities where there is no appropriate relevant comparison period.
The alternative tests can be used to determine whether an entity has satisfied the actual decline in turnover test for the September 2020 quarter or the December 2020 quarter.
If an entity satisfies the basic test, it does not need to satisfy an alternative test. Also, you only need to satisfy one of the alternative tests listed below even if more than one could apply.
Please be aware that while the alternative decline in turnover tests for JobKeeper 2.0 remain relatively the same, there have been some minor changes made.
Circumstances where an alternative test applies:
- The entity commenced business after the relevant comparison period but not on or after 1 March 2020
- The entity acquired or disposed of part of its business from the start of the relevant comparison period but before the applicable turnover test period (for multiple acquisitions or disposals the requirement to use the period after the last transaction has been removed)
- The entity restructured the whole or part of the entity’s business from the start of the relevant comparison period but before the applicable turnover test (for multiple restructures the requirement to use the period after the last transaction has been removed)
- The entity’s turnover substantially increased by:
- 50% or more in the 12 months immediately before the applicable turnover test period or before 1 March 2020, or
- 25% or more in the 6 months immediately before the applicable turnover test period or before 1 March 2020, or
- 12.5% or more in the 3 months immediately before the applicable turnover test period or before 1 March 2020.
- The entity was affected by drought or other declared natural disaster during the relevant comparison period in 2019
- The entity has a large irregular variance in their turnover for the quarters ending in the 12 months before the applicable turnover test period or 1 March 2020, excluding entities that have cyclical or regular seasonal variance in their turnover, or
- The entity is a sole trader or small partnership with no employees where sickness, injury or leave have impacted an individual’s ability to work which has affected turnover.
It is important to note that the actual decline in turnover tests only use quarters, the original decline in turnover tests used months or quarters.
For the purposes of the September 2020 actual turnover test, the start of relevant comparison period is 1 July 2019 and the start of the applicable turnover test period is 1 July 2020.
More information on how to apply the alternative tests can be found on the ATO website here or contact your local Boyce Accountant.
24 September 2020
Xero have announced an exciting change to the ‘Starter’ subscription. This is the entry level plan for Xero and is available for $17.50/month when purchased through Boyce (RRP $25/month).
Xero Starter Plan now includes;
- Send up to 20 sales invoices and quotes (previously limited to 5 per month)
- Enter 5 bills
- Unlimited bank reconciliations (previously limited to 20 per month)
- Payroll for 1 person
- Capture bills and receipts with Hubdoc (limited to 5 bills per month)
This change means that this plan would be ideal for people who;
- Want to start some invoicing to their customers
- Want to keep smaller businesses organised with a cashbook that offers an opportunity to take advantage of most of Xero’s features.
- New businesses that want a cost-effective starting plan that is easy to upgrade as the business grows.
- Want to keep track of their personal income/expenses and be able to flag deductible expenses
We also have options for Xero plans that are only available through Boyce. See below.
This new package is a great option for any smaller businesses looking to move to Xero or as a downgrade option for any businesses on a larger plan that would be suited to the adjusted ‘Starter’ Plan.
If you would like to take advantage of the new ‘Starter’ plan or discuss other plans with Xero, please feel free to contact your Boyce accountant to work through what suits you best.
18 September 2020
The following changes will apply to JobKeeper fortnights commencing 28 September 2020.
Actual decline in turnover test:
For JobKeeper fortnights from 28 September 2020 you will need to meet an actual decline in turnover test. An actual decline in turnover test will need to be met for each extension period:
- Extension 1: from 28 September 2020 to 3 January 2021
- Extension 2: from 4 January 2021 to 28 March 2021
The actual decline in turnover test is similar to the original decline in turnover test. However:
- It must be done for specific quarters only. For Extension 1 - September 2020 quarter must be compared to the September 2019 quarter. For Extension 2 - December 2020 quarter must be compared to the December 2019 quarter.
- You must use actual sales made in the relevant quarter, not projected sales, when working out your turnover
- You must allocate sales to the relevant quarter in the same way you would report those sales to a particular business activity statement if you were registered for GST.
If you are not eligible for JobKeeper under Extension 1 because you do not satisfy the turnover test, you may still be eligible for JobKeeper under Extension 2 if you satisfy the later turnover test. If the “basic” actual turnover test is not appropriate to your circumstances, an alternative turnover test may be available. Details of the alternative tests are yet to be released by the ATO or Treasury.
Rates of payment
For an employee or eligible business participant to receive the Tier 1 (higher) rate of JobKeeper payments in each extension period they will need to satisfy the 80-hour threshold:
The Tier 1 rate will apply to:
- Eligible employees who worked for 80 hours or more in the four weeks prior to the last day of the pay period that ended before either 1 March 2020 or 1 July 2020, and
- Eligible business participants who were actively engaged in the business for 80 hours or more in February 2020 and provide a declaration to that effect.
In some circumstances, alternative reference periods may apply for determining the 80 hour threshold (e.g. where the employee was on unpaid emergency leave during the relevant 4 week period).
- Businesses will have to wait until the end of September when they complete their BAS before applying the decline in turnover test for the Extension period 1 (as the test is now based on actual GST turnover).
- For the JobKeeper fortnights stating 28 September and 12 October 2020, the ATO is allowing employers until 31 October to meet the wage condition for employees.
- Monthly business declarations for October (the first two fortnights of the extension) will need to be made by 14 November 2020. If you were eligible for JobKeeper 1.0 you need to tell the ATO whether the Tier 1 (higher) or Tier 2 (lower) payment rate applies to your eligible employees or business participants in the monthly declaration form.
For further information please see the ATO website or contact your local Boyce accountant