DRMS Accountancy Blog

Christmas/New Year Office Closure Dates

Please note that our office will be closed from 5pm Friday the 18th December 2020 until 9am Monday the 11th of January 2021. We would like to wish all our clients all the best over the holiday period and we look forward to working with you in the New Year.

 

 

The Queensland Government is extending the Small Business COVID-19 Adaption Grant Program. Round 2 will open on 1 July 2020. The available grant amount is a minimum of $2,000 and up to a maximum of $10,000 per eligible small or micro business.

More information can be found on the Queensland Government website:

https://www.business.qld.gov.au/starting-business/advice-support/grants/adaption?utm_source=Master+Client+List+2020&utm_campaign=4f2361de0d-EDM_QLD_Marketing&utm_medium=email&utm_term=0_078527ad18-4f2361de0d-50148034

JobKeeper Enrolment Now Live

JobKeeper Enrolment Now Live!

You can enrol for the new JobKeeper Scheme now via your ATO Business Portal.

If you don't already have access to the Business Portal you will first need to create a MyGov ID. You can find more information at https://www.ato.gov.au/Business/Business-Portal/ 

We can also complete the enrolment process on your behalf via our Tax Agents Portal.

If you have any questions on the enrolment process please feel free to give us a call.

 

JobKeeper Application Process

The application process for the Governments JobKeeper Scheme has been released. If you had previously registered your interest then you should have received notice from the ATO of the process.

The enrolment process will begin from 20 April onwards.

The claims application process will begin from 4 May 2020 onwards.

The full process can be found on the ATO's website at:

https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/

You will need to provide each eligible employee with a . The form can be found on the ATO's website at:

https://www.ato.gov.au/Forms/JobKeeper-payment---employee-nomination-notice/

In order to complete the Enrolment and Application Processes you will need access to the Business Portal. If you do not have access we can process the Enrolments and Applications via our Tax Agents Portal.

 

 

 

JobKeeer Update - Fact Sheets

Treasury has now updated its guidance on the yet-to-be-legislated JobKeeper payments, including significant information on eligibility and compliance.

 

Treasury has released two Fact Sheets including a 'Frequently asked questions'.

The Link to the Fact Sheets can be found at ....

 

 

Early Release of Super

Applications for early release of superannuation will be accepted through myGov from 20 April.

 

You can register your interest now by logging in to your myGov account and following the Intention to access Coronavirus support instructions. If you don't already have a myGov account, you can set one up by selecting 'create an account'.

The ATO will notify you by email or SMS when applications open. You do not need to phone the ATO.

Those who experience financial stress as a result of the Coronavirus are eligible to access up to $10,000 in 2019/20, and a further $10,000 in 2020/21, from their super. These withdrawals will be tax free and will not impact Centrelink of DVA entitlements.

The withdrawals use a new, specific arm of the compassionate grounds condition of release. In order to be eligible, an applicant must meet one of the following conditions:

- Be unemployed,

- Be eligible to receive JobSeeker Payment, Parenting Payment, Special Benefit, Youth Allowance (other than as a full-time student or apprentice), or Farm Household Allowance,

- Be made redundant on or after January 1, 2020 or have had working hours reduced by 20% or more, or

- Be a sole trader who suffered a reduction in revenue of 20% or more.

JobKeeper Scheme


If you think that you might be eligible for this scheme you first need to register for the JobKeeper Scheme via the Australian Taxation office.

You can register at https://www.ato.gov.au/general/gen/JobKeeper-payment/?=redirected_JobKeeper

There is no legislation for the scheme as yet so this is our interpretation of the scheme so far and some thoughts on possible issues:

• Your business needs to demonstrate a drop in revenue of more than 30% over a comparable period from a year prior. The media are currently reporting that this reporting period will mean a comparison of data for the March 2019 period and March 2020 period. I would like to see the legislation to confirm this. I would think that Given the ATO is to administer this scheme they could just look at the Total Sales reported on Activity Statements for the March Quarter and compare to prior years or something along those lines rather than sorting through piles of applications with data on March 2019 compared to March 2020. Anyway let's wait and see.

• The comparison of March 2019 to March 2020 may be an issue for Townsville business also as the Floods had a negative effect on Turnover for the March 2019 period so proving a 30% or more drop in revenue may be difficult. Stephen has already reached out to our local MP for comment on this so we will await his response.

• The $1,500 will be paid to the employer every fortnight for a maximum period of 6 months.

• Eligible businesses will receive $1500 per fortnight for each eligible employee on their books on March 1, 2020 who continues to be on their books. These include full-time, part-time, long-term casual and stood down employees. Casual employees are considered long-term if they were on the employers books and regularly employed for at least 12 months up to March 1, 2020. For an employee to be eligible they must be an Australian citizen, hold a permanent resident visa; or hold a Protected Special Category, Special Category (Subclass 444), or non-protected Special Category visa. Non-protected Special Category visa holders must have been residing in Australia continuously for 10 years to be eligible.

• An employee can be eligible even if the business let them go after March 1, 2020 and subsequently re-engaged them.

• No word if these payments will be tax free to the employer. Most wage subsidies are taxable but have no GST. I would expect the same treatment to apply to the JobSeeker payments.

• The full $1,500 must be paid to the employee – pre-tax. We are not certain if tax is to be withheld on these payments and if they are tax free to employees. I don't think they will be tax free and I think tax would still need to be withheld.

• If an employee earns less than $1,500 you still need to pay the full amount to the employee. For example if your employee only works enough hours to be paid $1,000 per fortnight then you would still need to pay them the full $1,500. Conversely if any employee's pay is normally more than $1,500 per fortnight then you pay them as normal.

• If an employee has been stood down then you still need to pay them the full $1,500 per fortnight, even if they perform no work. • There is no Super Guarantee payable on the $1,500 paid to employees who are stood down.

• There will be Super payable on ordinary wages still. I think the way it will work is that, and using the example above, if you paid an employee $1,000 for work performed you would need to pay the Super Grantee on the ordinary wages of 9.5%, or $95 in this example, but you would not be required to be Super Guarantee on the remaining $500.00 that makes up the minimum $1,500.00 fortnightly minimum payment. If they earned more than $1,500 per fortnight while actually working then you need to pay the Super Guarantee on the full amount, for example if they earned $2,000 per fortnight you would need to pay $190.00 in Super Guarantee.

• Where an employee has multiple employers, only one will be able to claim JobKeeper Payment on their behalf.

• The Government has stated that the whole scheme will be somehow monitored and administered by the ATO via the new Single Touch Payroll (STP) system. I'm not sure how any extra payments above the ordinary wages will be reported in the various payroll software's and then in turn via STP.

• The Government has also said Sole Trader are covered but they don't report via the STP so again they are just making this stuff up as they go.

• They also mentioned self-employed persons but they have not mentioned Partnerships and Trusts so let's see what happens in this space.

We will let you know when we know more. Until then stay Safe.

 

PAYG Withholding Support Scheme

An enhanced version of the wage support announced in the first stimulus package will be implemented.

100 per cent of tax withheld on the salary and wages of employees paid by small businesses and not-for-profits will be reimbursed by government, up to a maximum of $50,000.

The minimum payment will be $10,000 and will be applied regardless of whether tax is withheld on the salary and wages by the employer. Payments will be based on:

• For monthly activity statement lodgers – March (at 300 per cent to cover January and February), April, May and June 2020 lodgements.

• For quarterly activity statement lodgers – Quarter 3 (Jan-Mar) and Quarter 4 (Apr-Jun) lodgements.

Payments are only available to businesses that were established and active prior to March 12, 2020. Charities registered with the ACNC will be eligible regardless of their date of commencement.

Additional payment:

Additional payments will also be made that will double the amount paid in the first tranche of support. Businesses and not-for-profits who received payments as outlined above will receive the same amount again later in 2020. For monthly activity statement lodgers, one quarter of the total payments made under the scheme outlined above will be paid again following the lodgement of the organisation's June, July, August and September 2020 statements.

For quarterly activity statement lodgers, one half of the total payments made under the scheme outlined above will be paid again following the lodgement of the organisation's June and September 2020 statements.

Applying:

Businesses need not actively apply for this support – it will be automatically provided through the ATO's activity statement process.

COVID-19

In light of the current situation we will be taking extra precautions to mitigate the risk and further possible spread of COVID-19.

We will be implementing the following procedures:

* Our Office remains open at this stage however we continue to monitor the situation.

* Clients are encouraged to send their documents to us electronically via email. If necessary the use of passwords on sensitive documents is recommended.

* Documents can be sent to either our practice email info@drabbitt.com.au, or direct to our staff at the following emails: neil@drabbitt.com.au, stephen@drabbitt.com.au, and christine@drabbitt.com.au.

* Documents can also be dropped into the office and collected from the office. New social distancing laws will be adhered to.

* To minimise the risk to both clients and our staff we have installed a door bell on the front door. Please ring the door bell and Chrissie will open the door to allow you to enter. This will enable us to control the numbers of persons in the office at any one time and to minimise the contact with the front door.

* We have set up a signing table and drop box inside the office reception for clients to drop their documents into us.

* We have temporarily suspended face to face interviews.

* Interviews will, where possible, be carried out via Phone.

* Although phone and email are our preferred communication methods, we can also arrange for interviews to be carried out via other medium such as Face Time and Skype. Please call the office to make arrangements if you would preferred any other communications method.

* If you must visit our office we would please ask that you do not attend if you have any flu like symptoms or have been in contact with anyone that has also displayed flu like symptoms.

* We will do our best to source hand sanitiser and have available to you when you come to the office and we encourage you to use it. However due to the current short supply we won't always be able to provide sanitiser and would ask that, if possible, you provide and use your own when coming into the office.

* Non-cash payments will be encouraged. Payments can be made via Bank Transfer (details can be found on your Invoice) and Eftpos over the phone.

* In the event that we are required to close the office our staff will be contactable by phone and email during office hours.

Thank you for your understanding and please be assured that we are committed to maintaining & our high level of professionalism and service.

Wishing all our clients and their families continued health from all the team here at DRMS Accountancy.

Address

203 Ross River Road, Aitkenvale Qld 4814

Call Us

07 4725 1952

Mail Us

info@drabbitt.com.au