Extension of the JobKeeper Payment

The Government is extending the JobKeeper Payment by a further six months to March 2021

Support will be targeted to businesses and not-for-profits that continue to be significantly impacted by the Coronavirus. 

jobkeeper 2.0The payment rate will be reduced and a lower payment rate will be introduced for those who work fewer hours. Other eligibility rules remain unchanged.

Summary
The JobKeeper Payment, which was originally due to run until 27 September 2020, will now continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.

Read more…

ATO JobKeeper audit targets


The ATO's JobKeeper targets

Industries or businesses that have not experienced adverse trading conditions and those that appear to have increased staff numbers are likely to be looked at closely.

jobkeeperThe ATO is looking carefully at businesses that appear to have made adjustments to their circumstances to meet the JobKeeper eligibility requirements where, if those adjustments had not been made, the entity would have been ineligible or had lower JobKeeper payments. Or, where adjustments have been made to enable another entity or subcontractor to meet the decline in turnover test.

In its guidance, the ATO sets out a series of examples that are likely to attract their attention:

  • Increase in staff – where the number of staff the business reports have increased beyond levels that were previously required to run the business prior to 1 March 2020.
  • Deferring supplies – in industries unlikely to be adversely impacted by the pandemic, the business agrees with its customers to defer making supplies, resulting in the company's projected GST turnover declining to the level required to meet the turnover test.
  • Bringing forward supplies  in industries unlikely to be adversely impacted by the pandemic, the business brought forward supplies to be able to meet the decline in turnover test in a following month or quarter.  Read more…

COVID 19 Stimulus HomeBuilder


HomeBuilder: What is it and how do you access it?

The Government has announced grants of $25,000 to encourage people to build a new home or substantially renovate their existing home.

HomeBuilderThe HomeBuilder scheme targets the residential construction market by providing tax-free grants of $25,000 to eligible owner-occupiers, including first home buyers, to build a new home or substantially renovate their existing home.

The grants will be distributed by the revenue office of the State or Territory where you live or plan to live.

There are a few complexities to this grant that both home builders/renovators and the building industry need to be across before jumping in and signing a new contract on the expectation that the grant will apply.

Eligibility

Eligibility criteria apply to the individuals applying for the grant and the building project:  Read more…

JobKeeper estimates error


The JobKeeper estimates error

Hindsight is a dangerous lens as Treasury discovered last month announcing that the number of employees expected to be covered by the JobKeeper scheme was overstated in the original announcement by approximately 3 million. 

jobkeeperThe overstatement reflects "the level and impact of health restrictions not having been as severe as expected and their imposition not having been maintained for as long as expected at the time," the Treasury statement says.

At the time of the Treasury estimates, not long after the country went into lockdown, we simply did not know what to expect. 

The first COVID-19 stimulus measures had been announced and long queues formed in front of Centrelink offices. Supermarket shelves were being stripped of essentials. Alarming daily global updates showed the virus spreading unimpeded in many parts of the world. China demonstrated the need for fast, severe and extended lockdowns to remove the possibility of community transmission.  Read more…

COVID-19 and residential rental property


Many residential rental property owners' rental income affected by COVID-19

As a result, you may ask what can be claimed this tax time.

rentalThe ATO's website provides some frequently asked questions (FAQs) and other information to help you to understand your rental property obligations and what information you need to give to your accountants in order to lodge correctly.

Rental property owners can check the ATO's FAQs to find out:
  • What expenses are claimable if tenants are not paying their rent under the lease agreement due to COVID-19?
  • Will deductions for rental property expenses stay the same if the property owner reduces the rent charged?
  • Must a back payment of rent or an amount of insurance received for lost rent be included as income?
  • Is a deduction on the interest charged on a rental property loan allowed if the bank defers repayments due to the COVID-19 outbreak?
  • Is the new instant asset write-off deduction available for residential rental property assets?
  • Impacts on short term rental properties.
Watch our website for further COVID-19 updates or call the team at Collins Hume on 02 6686 3000.

More resources available at COVID-19 and residential rental property (2020). Available at: https://www.ato.gov.au/Tax-professionals/Newsroom/Lodgment-and-payment/COVID-19-and-residential-rental-property/

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