Adams Triglone Blog

JobKeeper from 28 September 2020 We have summarised the key details in this update please download here.  The first tranche of JobKeeper ends on 27 September 2020. Those needing further support will need to have their eligibility reassessed and prove an actual decline in turnover.   To receive JobKeeper from 28 September 2020, eligible employers need to assess their decline in turnover with reference to actual GST turnover for the September 2020 quarter (for JobKeeper payments between 28 September to 3 January 2021), and again for the December 2020 quarter (for payments between 4 January 2021 to 28 March 2021).   From 28 September 2020, the JobKeeper payment rate will reduce and split into a higher and lower rate based on the number of hours the employee worked in a specific 28 day period prior to 1 March 2020 or 1 July 2020.   To access JobKeeper payments from 28 September 2020, there are three questions that need to be assessed: 1.      Is my business eligible? 2.      Am I and/or my employees eligible? and 3.      What JobKeeper rate applies?   Please contact our office if you would like assistance with this 02 8848 3000.

As many business owners look to life after COVID-19, an important question comes up: how do we plan to reopen our business? For most businesses, the easing of restrictions doesn't mean a return to business as usual.

Extension of the $150,000 threshold for the instant asset write-off rules As announced earlier last week, the Government is planning to extend the $150,000 instant asset write-off threshold for a further 6 months until 31 December 2020. This means that the higher threshold can apply to assets that are first used or installed ready for use for a taxable purpose on or after 12 March 2020 and by 31 December 2020 (assuming all other basic conditions are satisfied). The Bill also extends the temporary suspension of the 5 year lock-out rules that can apply when an SBE chooses not to use the simplified depreciation rules. The suspension of these rules will be extended to 30 June 2021. Modifications will also be made to the rules for entities that have a substituted accounting period to improve access to the higher instant asset write-off thresholds. The way these rules are currently drafted has meant that entities with a year-end other than 30 June have not had the same level of access to the rules as entities using a standard 30 June year-end date.

The 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 Prime Minster has announced that the states and territories will legislate a mandatory code of conduct for commercial tenancies – see National Cabinet Mandatory Code of Conduct .

ATO releases JobKeeper alternative test   The alternative tests will only kick in if an entity cannot satisfy the basic decline in turnover test. These include where an entity commenced business after the relevant comparison period in 2019 or the business did not exist in the relevant comparison period and as a result there was no relevant comparison period in 2019. It will also cover a circumstance where an entity acquired or disposed of part of their business after the relevant comparison period in 2019, and where an entity has restructured part or all of their business after the relevant comparison period in 2019. Entities who had an increase in turnover by 50 per cent or more in the 12 months immediately before the applicable turnover test period, or 25 per cent or more in the six months immediately before the applicable turnover test period, or 12.5 per cent or more in the three months immediately before the applicable turnover test period, will also be covered. The alternative test will also cover entities affected by a drought or other natural disaster in the relevant comparison period in 2019, and entities who have an irregular turnover that is not cyclical, such as what can occur in the building and construction sector. A sole trader or a small partnership where the sole trader or one of the partners did not work for all or part of the relevant comparison period because they were sick, injured or on leave during the relevant comparison period, and those circumstances affects the turnover of the sole trader or partnership, will also be covered. Each of the seven circumstances has its own alternative test that is detailed in the legislative instrument. Update from Accountants Daily

Automatic ATO lodgement and payment deferrals    The Tax Office will now apply automatic lodgement and payment deferrals for company 2018–19 income tax returns to a new due date of 5 June 2020.   Further, SMSF 2018–19 annual returns will now be due on 30 June 2020.   2019–20 fringe benefits tax (FBT) annual returns have also been automatically deferred to 25 June 2020.   2018–19 income tax returns for individuals, partnerships and trusts can be lodged by the 5 June concessional due date, provided clients pay any liability by this date.  

What is an Instant Asset Write-off? The instant asset write-off allows small to medium-sized businesses to claim immediate deductions for plant and equipment asset purchases (both new and second-hand). Equipment includes vehicles, tools, machinery and office equipment. The asset must be installed and/or used in the income year you're claiming for. How much can I write-off? Originally the maximum threshold was $30,000 but now this has been increased to $150,000 for businesses with aggregated annual turnover between $50m-$500m. The write-off threshold is dependent on your annual turnover. This applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe. The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets. Eligibility to use instant asset write-off depends on: Aggregated turnover (the total ordinary income of your business and that of any associated businesses) Date the asset was purchased and when it was installed or first used Cost of each asset being less than the threshold. From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000. Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off. Find more information and apply here: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/

Six-month moratorium on residential tenancy evictions The NSW Government is introducing measures to help landlords and tenants work together. The support package includes a six-month moratorium on landlords making applications for evictions due to rental arrears: for tenants who are financially disadvantaged by COVID-19, and  where landlords and tenants try to negotiate rental reductions in good-faith and it would not be fair and reasonable in the circumstances to terminate the tenancy. As well the moratorium on applications for forced evictions due to rental arrears, the package will also immediately: put a 60 day stop on new termination notices and termination applications to the NSW Civil and Administrative Tribunal where these are for terminations due to rental arrears as result of a household being unable to pay their rent due to the COVID-19 emergency extend notice periods for certain other lease termination reasons to 90 days. The support package is available to tenants who can prove they have been impacted by COVID-19. The tenant is considered to be impacted by COVID-19 when one or more rent-paying members of the household: have lost their employment, income or work hours due to COVID-19 business closures or stand-downs, or have had to stop working or substantially reduce work hours due to illness with COVID-19 or to care for a household or family member with COVID-19, and this resulted in a reduction in the weekly household income (including government assistance) of at least 25%. https://preview.nsw.gov.au/covid-19/financial-support

JobKeeper from 28 September 2020 We have summarised the key details in this update please download here.  The first tranche of JobKeeper ends on 27 September 2020. Those needing further support will need to have their eligibility reassessed and prove an actual decline in turnover.   To receive JobKeeper from 28 September 2020, eligible employers need to assess their decline in turnover with reference to actual GST turnover for the September 2020 quarter (for JobKeeper payments between 28 September to 3 January 2021), and again for the December 2020 quarter (for payments between 4 January 2021 to 28 March 2021).   From 28 September 2020, the JobKeeper payment rate will reduce and split into a higher and lower rate based on the number of hours the employee worked in a specific 28 day period prior to 1 March 2020 or 1 July 2020.   To access JobKeeper payments from 28 September 2020, there are three questions that need to be assessed: 1.      Is my business eligible? 2.      Am I and/or my employees eligible? and 3.      What JobKeeper rate applies?   Please contact our office if you would like assistance with this 02 8848 3000.

As many business owners look to life after COVID-19, an important question comes up: how do we plan to reopen our business? For most businesses, the easing of restrictions doesn't mean a return to business as usual.

Extension of the $150,000 threshold for the instant asset write-off rules As announced earlier last week, the Government is planning to extend the $150,000 instant asset write-off threshold for a further 6 months until 31 December 2020. This means that the higher threshold can apply to assets that are first used or installed ready for use for a taxable purpose on or after 12 March 2020 and by 31 December 2020 (assuming all other basic conditions are satisfied). The Bill also extends the temporary suspension of the 5 year lock-out rules that can apply when an SBE chooses not to use the simplified depreciation rules. The suspension of these rules will be extended to 30 June 2021. Modifications will also be made to the rules for entities that have a substituted accounting period to improve access to the higher instant asset write-off thresholds. The way these rules are currently drafted has meant that entities with a year-end other than 30 June have not had the same level of access to the rules as entities using a standard 30 June year-end date.

The 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 Prime Minster has announced that the states and territories will legislate a mandatory code of conduct for commercial tenancies – see National Cabinet Mandatory Code of Conduct .

ATO releases JobKeeper alternative test   The alternative tests will only kick in if an entity cannot satisfy the basic decline in turnover test. These include where an entity commenced business after the relevant comparison period in 2019 or the business did not exist in the relevant comparison period and as a result there was no relevant comparison period in 2019. It will also cover a circumstance where an entity acquired or disposed of part of their business after the relevant comparison period in 2019, and where an entity has restructured part or all of their business after the relevant comparison period in 2019. Entities who had an increase in turnover by 50 per cent or more in the 12 months immediately before the applicable turnover test period, or 25 per cent or more in the six months immediately before the applicable turnover test period, or 12.5 per cent or more in the three months immediately before the applicable turnover test period, will also be covered. The alternative test will also cover entities affected by a drought or other natural disaster in the relevant comparison period in 2019, and entities who have an irregular turnover that is not cyclical, such as what can occur in the building and construction sector. A sole trader or a small partnership where the sole trader or one of the partners did not work for all or part of the relevant comparison period because they were sick, injured or on leave during the relevant comparison period, and those circumstances affects the turnover of the sole trader or partnership, will also be covered. Each of the seven circumstances has its own alternative test that is detailed in the legislative instrument. Update from Accountants Daily

Automatic ATO lodgement and payment deferrals    The Tax Office will now apply automatic lodgement and payment deferrals for company 2018–19 income tax returns to a new due date of 5 June 2020.   Further, SMSF 2018–19 annual returns will now be due on 30 June 2020.   2019–20 fringe benefits tax (FBT) annual returns have also been automatically deferred to 25 June 2020.   2018–19 income tax returns for individuals, partnerships and trusts can be lodged by the 5 June concessional due date, provided clients pay any liability by this date.  

What is an Instant Asset Write-off? The instant asset write-off allows small to medium-sized businesses to claim immediate deductions for plant and equipment asset purchases (both new and second-hand). Equipment includes vehicles, tools, machinery and office equipment. The asset must be installed and/or used in the income year you're claiming for. How much can I write-off? Originally the maximum threshold was $30,000 but now this has been increased to $150,000 for businesses with aggregated annual turnover between $50m-$500m. The write-off threshold is dependent on your annual turnover. This applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe. The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets. Eligibility to use instant asset write-off depends on: Aggregated turnover (the total ordinary income of your business and that of any associated businesses) Date the asset was purchased and when it was installed or first used Cost of each asset being less than the threshold. From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000. Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off. Find more information and apply here: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/

Six-month moratorium on residential tenancy evictions The NSW Government is introducing measures to help landlords and tenants work together. The support package includes a six-month moratorium on landlords making applications for evictions due to rental arrears: for tenants who are financially disadvantaged by COVID-19, and  where landlords and tenants try to negotiate rental reductions in good-faith and it would not be fair and reasonable in the circumstances to terminate the tenancy. As well the moratorium on applications for forced evictions due to rental arrears, the package will also immediately: put a 60 day stop on new termination notices and termination applications to the NSW Civil and Administrative Tribunal where these are for terminations due to rental arrears as result of a household being unable to pay their rent due to the COVID-19 emergency extend notice periods for certain other lease termination reasons to 90 days. The support package is available to tenants who can prove they have been impacted by COVID-19. The tenant is considered to be impacted by COVID-19 when one or more rent-paying members of the household: have lost their employment, income or work hours due to COVID-19 business closures or stand-downs, or have had to stop working or substantially reduce work hours due to illness with COVID-19 or to care for a household or family member with COVID-19, and this resulted in a reduction in the weekly household income (including government assistance) of at least 25%. https://preview.nsw.gov.au/covid-19/financial-support