Year end 2020
Before you say goodbye to 2020
With end of year quickly approaching we wanted to bring a few items to your attention. Please see below for our final newsletter for 2020. And I am sure we can all agree that 2020 cannot end quickly enough!
JobKeeper - What do I need to do in January?
At the beginning of January we will send out the monthly declarations that will need to be completed and lodged with the ATO to receive the final Jobkeeper extension one payment. You will have until the 31st of January to do this.
The second extension period covers the JobKeeper fortnights between 4 January 2021 and 28 March 2021. The payment amounts also reduce per below.
Tier 1 - $1,000 (reduced from $1,200)
Tier 2 - $650 (reduced from $750)
Entitlement to the tier 1 or tier 2 rate is based on whether an individual meets the 80-hour threshold. You will to ensure you pay your eligible employees at least the above amounts per fortnight.
To claim JobKeeper payments for this period, you will need to show that your actual GST turnover has declined in the December 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019).
If there were events or circumstances outside the usual business setting that resulted in the December 2019 comparison period not being appropriate, then an alternative test may apply.
The ATO have provided an extension of time to 31 January 2021 to complete the December declaration, enrol and submit the decline in turnover calculations for the second extension and meet the required wage conditions for same. Some further detail on the decline in turnover test can be found at below link.
Click here for ATO factsheet
JobMaker - You can now register
Eligible employers can claim the JobMaker Hiring Credit payment for each JobMaker period from 1 February 2021, with payments made in arrears.
Eligible employers will receive:
$200 per week for each eligible employee aged 16 to 29
$100 per week for each eligible employee aged 30 to 35
See below link for more details. Some key items from the link:
Eligible Employers
Cannot be claiming JobKeeper during a JobMaker claim period
Must be up to date with BAS and Income Tax lodgements
Must satisfy the headcount increase rules
Eligible Employees
Must have been in receipt of JobSeeker, Youth Allowance or Parenting payment for at least 28 consecutive days (or two fortnights) within the 84 days (or six fortnights) before commencing employment
Cannot be part of JobMaker scheme with another employer
Christmas parties and Fringe Benefit Tax
With restrictions easing we are hoping businesses will be able to celebrate the end of this challenging year. See below for some basic guidelines for employers and the tax consequences of funding a Christmas party.
Click here for ATO factsheet
ATO's Instant Asset Write Off finishers 31 December
If you want to take advantage of the measure you must purchase and have the asset installed and ready for use before midnight 31st December. Basics below:
Immediate tax deduction for asset purchases up to $150,000
Does not include
Capital works
Software development pools
Horticultural plants
Assets to be leased out more than 50% of the time
Cars only up to the car limit of $59,136
As of January 1, this threshold reduces to $1,000
We would never advise businesses to spend money just to get a tax deduction. However, if you are looking at adding new equipment to your business, the timing of the purchase can have significant tax advantages per above.
Click here for ATO factsheet
PAYG Instalments Notices - ATO looking to phase out paper
Some of you may have received text messages from the ATO indicating that they will no longer be sending paper statements. This can be inconvenient for those who do you use a computer or do not have an active MyGov account. If you have received a text but would still like to receive paper statements, please let us know and we will arrange with the ATO.
Xero Discount
Xero are continuing to offer large discounts to sign up. If you are considering moving to cloud software or changing from your current provider, contract our office to discuss.
Save 50% off for five months on new subscriptions to Xero Business Edition plans. Subscribe using the promo code SUMMER2021 before midnight (AEDT), Thursday 31 December 2020*.
Office Closure
Please note the office will be closed from Wednesday 23rd December and reopening on Monday 4th of January. We will still be checking emails intermittently during this time so if something urgent is needed, please email.
From the team at Whitson and Associates Pty Ltd we wish you all a safe and enjoyable holiday season.