We hope that you are all staying safe during this pandemic which has caused so many changes to so many things. We have been updating you as the incentives are released to support you and your business. We have now summarised the most relevant and frequently asked questions to assist you.
WITHDRAWING FROM YOUR SUPER
You can withdraw up to $10,000 now, and another $10,000 after July 1.
This does not apply to self-managed superfunds.
To be eligible you must either be unemployed, made redundant, eligible for Job Seeker, youth allowance or parenting payment through Centrelink, have had your hours reduced by more than 20%, or if you are a sole trader, have had your turnover reduced by more than 20%. Please remember that you are accessing your own money before retirement, this cash injection is not funded by the government.
The due date to lodge your intention to claim Job keeper has been extended to 31st May. You must lodge your intention through the ATO portal or website.
Employers must pay the employees they intend to receive Job keeper payments for before 8th May (for the fortnight ended 12th April).
Employees must have completed the required forms and these are to be held by the employer.
Employers must pay the gross amount of $1,500 per fortnight less any tax withheld and HECS deduction as per normal payroll rules.
There is no super guarantee payments for these job keeper wage supplements.
If you have paid an eligible employee less than this amount in the past, you must pay them their full entitlement of the $1,500 less tax and not keep this amount yourself.
If you let go of any employees after March 1, you can reemploy them and register them for Job keepers payments.
The Job keeper payment is taxable income to your business but there is no GST on this income.
You (as the employer) must have had a 30% downturn in income as a result of the pandemic.
These payments are being paid to your account next week, and in the third week of May.
BUSINESS VICTORIA GRANTS
The $10,000 grant for eligible businesses is still open for applications. You must either be in one of the listed categories or have had to close because of the government health regulations. You can apply through the Business Victoria website until 1st June 2020.
This payment is through Centrelink using your MyGov account. It is not related to the ATO and our office cannot assist you with these payments and applications.
BAS PAYMENT REDUCTIONS
If you withhold tax for your employees, the ATO will automatically apply a credit of up to $10,000 for those amounts upon lodgement of your BAS. Our office recommends that you only pay the GST payable this quarter if you would like the cash flow relief to help you through this pandemic. You can also defer your PAYG Instalments on this year’s BAS returns.
Payroll tax will be waived for this financial year and will be automatically reversed by the State Revenue Office, however, you must continue to lodge your payroll tax reconciliations.
You can apply to defer some land tax payments to help your cash flow.
EVIDENCING YOUR DOWNTURN AND APPLICATIONS
Your business must have experienced a downturn as a result of the pandemic. This criteria must be able to be proven by you. The self-substantiation rules apply here, and it is your responsibility to ensure you have had the downturn in your turnover and that this can be proven. Our office is not responsible to ensure that your business has had this downturn unless you request an audit service.
PROCESSING BY THE ATO
The ATO has begun processing and paying these stimulus amounts. They will check your lodgements with them previously and your business status to automatically approve and pay into your bank account they have listed with them.
However, not all businesses are straight forward, so if you have circumstances which do not fit the “norm”, the ATO will ask for further information from you. We can assist with these to ensure that the ATO has all of the information required for your business to receive these payments, so please contact us if you require our help.
We hope this summary helps to clear up some of the confusion and panic surrounding all these changes. As always, please contact us is we can support you further
The Team at Miranda Accounting.