Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

JobKeeper Changes Coming in September

These changes are yet to be legislated, we will keep you updated. In the meantime if you are receiving JobKeeper talk to us regarding eligibility and future cash flow implications.  As mentioned previously:

• JobKeeper 2.0  – will start at the end of September at a reduced rate of $1200 per fortnight for full-time workers and those working for more than 20 hours per week, from $1500 per fortnight previously. Those working for less than 20 hours a week will receive $750 per fortnight.
• JobKeeper 3.0 – From 4th January 2021 the payments will further decrease to $1000 per fortnight for full-time workers, and to $650 per fortnight for those working less than 20 hours per week.
• Reassessments in October and January – From 28 September 2020, organisations seeking to claim JobKeeper payments will be required to reassess their eligibility for the JobKeeper extension with reference to their actual turnover in the June and September quarters 2020. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in both of those quarters to be eligible for JobKeeper from 28 September 2020 to 3 January 2021. Organisations will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in each of the previous three quarters to remain eligible for the March 2021 quarter.

It is important to note that these changes are yet to be legislated, which means that they are subject to change. As the finer details become available, we will pass them on. If you need help in evaluating the impact of these changes to your current situation, feel free to contact us for guidance.

Government-backed COVID-19 Loans Extended

The government is extending the small business COVID-19 loans scheme until June 2021. The second phase will kick off on October 1 with the following changes:

• Loans will be provided for purposes other than working capital;
• Secured loans (i.e. where collateral is presented) will be permitted in addition to unsecured loans;
• The maximum loan size will increase four-fold to $1 million, up from $250,000 per borrower;
• The maximum loan term will increase to five years, up from three years; and
• Lenders will have additional discretion to offer repayment holidays.

If you need advice, please contact us to speak to one of our team.

Superannuation Amnesty for Employers

The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018.

Other benefits, if you are not up to date, include:-

1. Eligible disclosures will not incur the administration component ($20 per employee per quarter) or Part 7 penalty.
2. In addition, payments of SGC made to the ATO after 24 May 2018 and before 11.59 pm on 7 September 2020 will be tax deductible.

Employers who come forward from 6 March 2020 need to apply for the amnesty by 7 September 2020.

The ATO will continue to conduct reviews and audits to identify employers not paying their employees SGC. If the ATO identifies these employers before they come forward, they will not be eligible for the benefits of the amnesty. They will also be required to pay:

• SGC shortfall
• nominal interest (10%)
• administration component ($20 per employee per quarter)
• Part 7 penalty (up to 200% of the SGC).

In addition, payments of the SGC won’t be tax deductible.

Paying super is an important part of being an employer. If you’re not eligible for the amnesty, or you have unpaid super for quarters that are not eligible, you must still lodge an SGC statement.

Should you have any questions or concerns regarding any aspect of SGC or the Amnesty, please give us a call to discuss.

ATO Audit Activity

We are starting to see an increase in activity from the ATO in respect of the cash flow boost and JobKeeper. The ATO are continuing to improve their systems and techniques to identify incorrect claims. We expect that the ATO audit activity will increase in the coming months.  The ATO have also announced the following target areas:

1. Working from Home Expenses
2. Work related Travel Expenses
3. Rental Deductions
4. JobKeeper for Sole Traders
5. CGT Small Business concessions

If you are contacted by the ATO you should immediately contact us to discuss your position. If you are a tax client of ours and have not taken up audit insurance and would like to, this needs to be in place before any questionnaire arrives from the ATO.

Our audit insurance is through Accountancy Insurance and here is a link to their website https://www.accountancyinsurance.com.au/

Any questions please do not hesitate to contact us.

QLD closing border to travellers from Greater Sydney

Queensland is closing its borders to Greater Sydney as COVID-19 cases in New South Wales continue to increase. Queensland Premier Annastacia Palaszczuk announced the border closure, confirming Greater Sydney will become a COVID-19 hotspot from 1am on Saturday.

As Victoria and New South Wales battle second waves of the coronavirus, it is important to know where you can travel to and from.

Boosting Your Digital Capabilities

Small businesses across Australia can access individual support to grow their digital capabilities through the Australian Small Business Advisory Services Digital Solutions. This program offers small businesses with fewer than 20 full-time employees and sole traders with high quality advice on a range of digital solutions to meet their business needs at a subsidised rate. More information can be found here.

State grants and support programs

Along with national assistance, each state and territory has announced various grants and assistance packages which you may be eligible for. You can find a roundup of these grants on the Government’s Business website. Alternatively, you can also contact us so we can discuss which options are most suitable for your business.

What’s next?

We will keep you updated as we get more news and updates. Now we have started the new Financial Year and given the current climate, it is more important to prepare a budget and cashflow forecast so you are ready and well prepared for the coming months.  Good accounting advice has never been more relevant than it is now, so please do not hesitate to call one of our team at Cadenze if you feel you need us.