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Personal Tax Returns - Deductions you can claim

To claim a work-related deduction:

  • you must have spent the money yourself and weren't reimbursed
  • it must directly relate to earning your income
  • you must have a record to prove it.

https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/

COVID-19 Early Release of super

If you have been financially affected by COVID-19, you may be able to access some of your superannuation early. https://moneysmart.gov.au/covid-19/accessing-your-super

Be aware of scams and schemes asking you to pay to release your super.

If you receive a phone call, text message or email offering to help you release your super early, do not:

  • provide your personal information
  • click on any links
  • share your myGov login details.

A closely held (related) payee is someone who is directly related to the business, company or trust that pays them, such as:

  • family members of a family business
  • directors or shareholders of a company
  • beneficiaries of a trust.

In response to the COVID-19 crisis, ATO has extended the exemption deadline from 1 July 2020 to 1 July 2021.

JobKeeper Payments

If you are eligible for JobKeeper payments and haven't registered/requested us to register, please do so as soon as possible. If you are unsure please contact us. If you haven't enrolled, the time to enrol for the initial JobKeeper periods has been extended from 30 April 2020 until 31 May 2020.

Those of you who have registered can now submit the monthly declaration (for April) to ATO. The declaration requires the following information;

1.       Employees date of birth

2.       Employees tax file number

3.       The fortnights you are claiming

If employers wish to apply for the JobKeeper Payment, they must first have paid their employees for each JobKeeper fortnight they plan to claim for. The first two eligible fortnights are 30 March to 12 April and 13 April to 26 April. They must make two fortnightly payments of at least $1,500 per fortnight (before tax), or one payment of at least $3,000 for the month, before 8 May, to each listed employee.

Cash Flow Boost

Please note that only small and medium businesses that employ staff are eligible to receive the Cash Boost of between $20,000 and $100,000.

If your business does not employ staff and does not report wages on your BAS you will not be paid this Cash Boost. Please be wary of hearsay/information passed on by other business owners as each business is treated differently based on how the business has been set up. If you are in doubt please contact us.

https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/#Eligibility

The ATO says it will scrutinise every tax return lodged and will use hi-tech data matching systems to identify fraudulent claims.

The ATO uses benchmarks to identify small businesses that may be doing the wrong thing by not reporting all of their income or over claiming expenses. Businesses operating outside the benchmarks trigger red flags that attracts ATO's attention.

The ATO has warned that it is not acceptable to backdate or artificially change a business structure or employment arrangements, including changing the characterisation of payments, in order to obtain a benefit or payment that would not otherwise have been paid.

Tax payers can face criminal penalties for making false statements and attempting to obtain a financial advantage by deception and may have to repay any Stimulus payments that they may receive.

Jobkeeper Payment

The Government has announced a $130 billion JobKeeper payment to help keep more Australians in jobs and support businesses affected by the significant economic impact caused by the Coronavirus.

Around 6 million workers will receive a fortnightly payment of $1,500 (before tax) through their employer.

The payment ensures eligible employers remain connected to their workforce and will help businesses restart quickly when the crisis is over.


Fact Sheet - Jobkeeper Payment.pdf

Supporting the flow of Credit


Under the Coronavirus SME Guarantee Scheme, the Government will provide a guarantee of 50 per cent to SME lenders to support new short-term unsecured loans to SMEs. The Scheme will guarantee up to $40 billion of new lending. This will provide businesses with funding to meet cash flow needs, by further enhancing lenders' willingness and ability to provide credit. This will assist otherwise viable businesses across the economy who are facing significant challenges due to disrupted cash flow to meet existing obligations.

Fact Sheet - Supporting the flow of credit.pdf

The economic impacts of the Coronavirus and health measures to prevent its spread could see many otherwise profitable and viable businesses temporarily face financial distress. It is important that these businesses have a safety net to make sure that when the crisis has passed they can resume normal business operations. One element of that safety net is to lessen the threat of actions that could unnecessarily push them into insolvency and force the winding up of the business.

The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive. The package also includes temporary relief for directors from any personal liability for trading while insolvent, and providing temporary flexibility in the Corporations Act 2001 to provide temporary and targeted relief from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus health crisis.

The ATO will tailor solutions for owners or directors of business that are currently struggling due to the Coronavirus, including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups.


Fact Sheet - Temporary Relief for Financially Distressed Businesses.pdf


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