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JobKeeper Employee Nomination Notice

Aftering registering your intent to claim the JobKeeper Payment, the next step is to have all eligible employees sign a JobKeeper Employee Nomination Notice. An employer will not be able to apply for JobKeeper payment without a signed nomination from each eligible employee. The notice is available from the ATO website or from here.

Business will be able to apply for the JobKeeper payment from 20 April, by following the steps on the ATO website here.

Job Keeper Payment - Latest Updates

Treasury have released updated fact sheets regarding eligibility and the payment of the job keeper payment. Some issues have been clarified around the claiming of the job keeper payment by self-employed. Where family members operate a business through a company, trust or partnership, only one person can be nominated as the eligible employee for job keeper payment. Similarly, a self-employed person cannot be eligible for job keeper payment is they have a permanent job elsewhere (they can be eligible as an employee of the other business).

More details are available in the fact sheet for employers, fact sheet for employees, and frequently asked questions.

Commercial Tenancies

The Government has released a rent relief package for commercial tenants and landlords.

"The mandatory code will apply to tenancies where the tenant or landlord is eligible for the JobKeeper program. So that defines a a tenant or landlord who would be in a position of distress, where they have a turnover of 50 million or less.
    
"So the code is designed to support those small and medium sized enterprises, be they a tenant or indeed a landlord. The code brings together a set of good faith leasing principles. Landlords must not terminate the lease or draw on a tenant's security. Likewise, tenants must honour the lease. Landlords will be required to reduce risk proportionate to the trading reduction in the tenant's business over the course of the pandemic period through a combination of waivers of rent and deferrals of rent.
    
"Waivers of rent must account for 50% at least of the reduction in the rent provided to the tenant during that period. And deferrals must be covered over the balance of the lease term, and in no less period than 12 months...
 
"if the lease only has another six months to run, the tenant would have a minimum of 12 months after the pandemic period in order to cover the deferrals of the rental payments. The arrangements will be overseen through a binding mediation process, all of this will be run by the states and the territories."

Covid-19 Update - Job Keeper Payments

The Job Keeper payment is a life line to business that will enable business owners to retain employees during the Covid-19 restrictions. Workers that have been stood down or retrenched since 1 March can be brought back on the books and paid a minimum of $1,500 per fortnight from 30 March 2020. Employers will be re-imbursed this amount monthly, in arrears, commencing in May. See more details at JobKeeper Payment - Information for employees. See also JobKeeper Payment - Information for employers

Self employed can also apply for job keeper regardless of whether you trade in a trust, company or as a sole trader; if the business turnover has reduced by 30% you are eligible.

Business Owners can register for the JobKeeper payment at www.ato.gov.au

 

Tax Tips for Small Business - 2019

If you're a small business owner, here are a few ideas to reduce your tax burden and clean up those books before 1 July 2019.

Consider deferring some income. Your sales are counted as taxable income from the date you produce an invoice; not when you receive the payment. If you can delay producing an invoice till after 30 June, it wont become taxable income till next year.

Can you prepay some expenses? You can prepay expenses like rent, travel, supplies before 30 June and claim the deduction in the current year.

Check your accounts receivable/debtors. If there are any debtors that are becoming doubtful, write them off. No point in including them in your sales for the year if they are not going to pay. You can always add them back next year if they do make payment.

Pay your employee's super before 30 June, otherwise you can't claim the deduction till next year. Same with any employee bonus you pay.

If you have stock/inventory, do a stock take and write off any old/damaged stock. The lower your inventory level, the lower your profit.

Consider whether you need any plant and equipment, or vehicles, in the next couple of months. Any purchases less than $30k are eligible for an immediate write off, so bring the purchase forward to before 30 June and claim the write off now.

Super Tips for 2019

There was a lot of talk about superannuation in the lead up to the election, but, thankfully there will be no changes to the rules regarding superannuation. This is great news because there are some great opportunities to reduce your tax burden and boost your super balances!

Tax deductible member contributions for everyone.

Everyone can claim a tax deduction for Super

The concessional contribution limit is $25k for everyone. All employees, contractors, business owners, can make a member contribution to their super fund and claim it as a tax deduction. If you have some spare cash, and you contribute to your super fund before 30 June, you can reduce your taxable income.

Unused concessional contributions can be carried forward for 5 years.

Lets say you earn $100k and your employer pays $9,500 into your super fund every year. You have not used $15,500 of your annual $25k limit. You can save up these unused contributions for 5 years and make a contribution of $77,500 in a single year. Why would you do this? You would do this in a year when you sold an investment and made a large capital gain, saving a lot of tax, and boosting your super! (Conditions apply)

Let the Government Contribute

The government Co-contribution is payable to members who make a non-concessional contribution, and have annual income less than $52k. The maximum co-contribution is $500 (on a $1,000 contribution for a member with annual income less than $37k) and is paid directly into the member's super account.

Don't forget the spouse!

The spouse offset is another benefit available when a spouse has assessable income less than $40k. The high income spouse contributes up to $3,000 into the low income spouses super fund, and the high income spouse receives a tax offset of up to $540 (an 18% ROI).

What do you mean "Concessional Contribution"?

Concessional contributions are employer contributions and member contributions for which a tax deduction is claimed (Max $25k per annum). Non-concessional contributions are member contributions for which no tax deduction is claimed (Max $100k per year, $300k over 3 years)

Downsizer Contributions

The new downsizer contribution allows older Australians to top up their superannuation accounts when they sell the family home.

People aged over 65 can unlock the equity in their home and, by adding to their superannuation balances, access a greater tax-free pension to improve their lifestyle in retirement.

You must be aged 65 years or older, have owned your home for at least 10 years, and the home must have been your residence for at least part of the time. You and your partner can contribute up to $300,000 each from the proceeds of the sale of the property.

A downsizer contribution can be a great strategy to unlock the wealth in the family home and increase your tax-free pension from super, but we also need to keep in mind the effect this may have on your Centrelink benefits. This is because the family home is an exempt benefit for Centrelink purposes, but your super account balance is not. Give us a call for a free consultation to see if the downsizer contribution is right for you.

Concessional Contributions 2018

There are some great changes to the rules governing concessional contributions in 2018. Concessional contributions are contributions to super that are claimed as a tax deduction; either by your employer, or, by yourself. Concessional contributions are limited to $25,000 per tax payer per year. From 1 July 2017 anyone can claim a tax deduction for making a concessional contribution to super (In the past, only self-employed could do this). This makes is easy to contribute extra to super and reduce your taxable income. Don't forget to take into account any employer contributions, as they also count towards your $25k concessional limit. Another great change, coming from 1 July 2018 is the ability to carry over un-used portions of your concessional contribution limit for up to 5 years. For example, an employee on $100k would have employer contributions of $9,500 going into super. If they made no extra contributions, they have not used $15,500 of their limit that year. This can be carried forward for 5 years, and it is possible that the tax payer could make a tax deductible contribution into super in year 5 of $77,500. Imagine the tax saving if this coincided with the sale of an investment property with significant capital gains.

Welcome to our new website!

Welcome to Asset Accounting(QLD) new web site and blog. We will endeavour to bring you interesting and informative articles and ideas to help you understand the tax regime that we all have to live with, and some strategies to help you achieve your goals.

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