Here is crucial Assistance for your Business

JobKeeper 2.0

The authorities have declared changes to the scheme of JobKeeper. The workers, who missed out JobKeeper as they were unemployed on 1 March 2020 could be eligible now. These alterations will enable the employees on July 1, 2020, to get JobKeeper payment from August 3 if they will stand eligible. JobKeeper will get extended even after September 27, 2020. The employers will be required to reassess their eligibility with actual GST turnover for September 2020 and December 2020 quarter, to get JobKeeper from September 28.

Many of the businesses will make use of BAS (Business Activity Statement) for assessing eligibility. BAS will not be generally due till a month after ending of the quarter, the eligibility will be required to get accessed prior to BAS reporting deadlines to meet wage conditions for the workers. The ATO can extend the time that a body has to pay its employees to meet the wage conditions.

The payment rates for Jobkeeper will be reduced and split to lower and higher rates. It depends upon the number of hours that an eligible employee worked during the 4-week test period to access the higher or lower rate. The higher rates shall be applicable to the employees who worked a minimum of 20 hours a week in four weeks of pay periods before March 1, 2020, or July 1, 2020. The higher rate is $1200 each fortnight and between January 4 and March 28, 2021, it is $1000 each fortnight. The lower rate is $750 between September 28, 2020-January 3, 2021, and $650, between January 4, 2021 – March 8, 2021.

Cashflow Boost Payments

You will get a cash flow boost from June to September quarters of the the amount same as that you got in first cashflow boost tranche. The cashflow boost will be paid in two similar payments for the months of June and September, by reporting quarterly. The cashflow boost is provided in four equal payments, by reporting monthly.

The cashflow boost is applicable to eliminate any liabilities in the same reporting period and any excess amount will be paid as a cash refund from the side of ATO.

Assistance for Business Employing Apprentices and Trainees

Job Trainer gives a reimbursement of 50% to eligible employers for the cost of trainee wages to $7,000 each quarter. The small businesses that are having less than 20 employees the apprentice had to be employed on March 1, 2020, or on July 1, 2020, for claims after this date.

The medium-sized businesses that are having less than 200 employees, the apprentice had to be employed on July 1, 2020, the claim will open on October 1, 2020. The subsidy will end on March 31,  2021.

Support based on State and territory

Every State and Territory has some form of support accessible to certain businesses impacted by COVID-19, in spite of general waivers, reductions or rebates on some Government licensing and fees.

Australian Capital Territory

New South Wales

Northern Territory

Queensland

South Australia

Tasmania

Victoria

Western Australia

Assistance for individuals

If you are influenced by COVID-19, Services Australia has an online payment guide that assists you through the payments available.

Pandemic Leave Disaster Payment – Victoria

You could be eligible for $1500 payment if you have self-isolated or quarantined yourself due to COVID-19 and are incapable to earn.

Limiting access to income support

The assets test and the Liquid Assets Waiting Period will be reintroduced for access to income support payments from September 25, 2020, and shall be applicable to people with assets like savings over $5500 in case of singles and $11000 in case of singles with children.

Moreover, partner income testing will initiate from September 25, 2020, with higher thresholds than those before COVID-19. Consequently, you will not stand eligible for income support if you are not earning an income but your partner earns $3,086.11 each fortnight or $80,238.89 per annum. The Job seeking requirements that were stopped from March 24, 2020, have been started from June 9, 2020.

Coronavirus supplement

The Coronavirus supplement will start into effect, on a decreased rate of $250 each fortnight (from $550), from September 25^th, 2020 till December 31^st, 2020.

Early access to superannuation

The data from the Australian Prudential Regulation Authority describes that more than $30 billion were taken from superannuation. If you are a Citizen or permanent resident of Australia or New Zealand, you can apply to get $10000 of superannuation from July 1, 2020, to December 31, 2020, if the working hours reduced by 20% or more and you have been drastically influenced by COVID-19. You must not access superannuation if you are not facing any hardships. You could have to bear a penalty of up to $12000 for giving misleading information.

SMSF and COVID-19

Coronavirus has influenced many of the SMSF’s. A glance at the basic issues:

SUPERANNUATION’S EARLY RELEASE

Under Measures of COVID-19, there are some crucial steps that the trustees are required to take if a member of the fund wants to access up to $10,000 of early superannuation. The trustees will be required to prove that the deed allows for early release, they did not receive any funds from ATO and the member meets the criteria of eligibility.

RELIEF FROM TENANT RENT

It is a breach of the law of superannuation to set up the rent for a tenant which is less than the market value in SMSF. the situation could be trickier if the relief of rent is given to the related party since the difference between the rent charged and the market value of that can amount to loan.

The ATO has stated that for financial years 2019-20 and 2020-21, it shall not take any actions where the rental relief is given on the terms of arms-length. The relief is collateral with the National Cabinet Mandatory Code of Conduct for the guidelines of commercial leasing having set the timeframe.

RELIEF FOR PARTY LOANS

It would be a breach of superannuation rules if SMSF has less borrowing arrangements with a related party and that party gives repayment relief.  If the relief is given on reasonable terms, the ATO will accept it.

DIMINISHED ASSET VALUE

You must notice that whether the current asset allocation is moving inconsistency with the investment strategy of the fund when the assets of SMSF falls in value.

If you are required to sold assets and maintain a capital loss, like a loss on residential real estate, this loss can be considered offset against gains in capital. If Capital Loss > Gains, the loss can be further carried and are applicable in future capital gains. For unrealized gains, no deductions are available.

MINIMUM PENSION PAYMENTS

Minimum drawdown rates for the 2019-20 and 2020-21 years has been halved, for funds drawing a pension.

Reliable Bookkeeping Services in Melbourne offers extensive services to the clients to get all the incentives and benefits as mentioned by Government and avail the services at competitive prices. Get in touch with our professionals today!