80¢ per hour work-from-home deduction method extended

Taxpayers continuing to work from home in the new year will be allowed to continue using the simplified working-from-home deduction method following a third extension by the ATO. The 80¢ per hour shortcut method, introduced in April 2020 in response to COVID-19, will now be in place until 30 June 2021. This is the third time the Tax Office has chosen to extend the shortcut method, after it was first…  Read more

Temporary full expensing available for businesses

Last October, the government announced the JobMaker Plan to support businesses. One of these incentives is temporary full expensing. In their 2020–21 and 2021–22 income years, eligible businesses can immediately deduct the: business portion of the cost of eligible new depreciating assets cost of improvements to existing assets. If your business’s aggregated turnover is less than $5 billion, you can use temporary full expensing. If you can claim an immediate…  Read more

JobMaker Hiring Credit Passed

The government has passed legislation to establish the JobMaker Hiring Credit, which is part of the economic response to the COVID-19 pandemic. The JobMaker Hiring Credit is specifically designed to encourage businesses to take on additional young employees and increase employment. It does this by providing employers with a fixed amount of $200 per week for an eligible employee aged 16 to 29 years, and $100 per week for an eligible employee aged 30 to 35 years, paid quarterly in…  Read more

COVID-19 Business Update

Australia Opens Up More Borders in Domestic Travel Australia will lift more internal state border restrictions in a boost for tourism as new COVID-19 cases slow to a trickle, while the first vaccines could be available in March. Queensland will allow visitors next week from New South Wales and Victoria, after closing its borders in August. Meanwhile, NSW will ease restrictions on arrivals from Sydney on December 1 and will…  Read more

Special COVID-19 Super Condition of Release Extended

If you have been adversely financially affected by COVID-19, you may be able to access some of your superannuation early. The ability to withdraw up to $10,000 from superannuation for individuals experiencing financial difficulties due to COVID-19, was initially set to expire on 24 September 2020, however, this has now been extended until 31 December 2020. Eligible citizens and permanent residents of Australia or New Zealand can apply once in the 2020–21 financial year to access up…  Read more

JobKeeper Updates

JobKeeper 2.0 – tweaks to the ‘Decline in Turnover’ Tests On 21 July 2020, the Government announced that the JobKeeper Payment (‘JKP’) would be extended until 28 March 2021 (i.e., for a further six months beyond its original end date of 27 September 2020).  As a result, JKPs will now be made over two separate extension periods, being: Extension period 1 – which covers the seven new JobKeeper fortnights that…  Read more

JobKeeper 2.0 eligibility and payments

JobKeeper extension The Government announced that JobKeeper will be extended but with changes in turnover tests and payment rates: First stage (from 28 September 2020) Turnover decline will initially be based on actual decline for June and September 2020 quarters to qualify for two reduced tier rates; Next stage (from 4 January 2021) actual turnover decline for June, September and December 2020 quarters to qualify for further reduced rates. HERE is link to the new fact sheet…  Read more

Tax Time Toolkits

This tax time will be unlike any other, and it promises to be one of the most challenging yet. The 2019–20 financial year has seen our country, our people, our wildlife and our land affected by unprecedented events. From drought and water shortages, to severe bushfires and more recently the COVID-19 pandemic – every Australian has been affected in some way. To make things as easy as possible, the ATO…  Read more

ATO Flags Work-Related Hotspots

The ATO has now announced a number of deduction hotspots that it will pay close attention to this year, in light of COVID-19. The Tax Office has begun bracing for a substantially different tax time this year, noting that it will likely see a flow-on effect from COVID-19 restrictions on work-related expenses claims. ATO Assistant Commissioner Karen Foat, has urged taxpayers to reduce claims for work-related expenses in the last…  Read more

Shortcut to claiming working from home deductions

As the situation around COVID-19 continues, the ATO understands many employees have been working from home. To make it easier when claiming a deduction for additional running costs you incur as a result of working from home, special arrangements have been announced. A simplified method has been introduced that allows you to claim a rate of 80 cents per hour for all your running expenses, rather than having to calculate…  Read more

Coronavirus: Government JobKeeper Payment

A major part of the Government’s response to the Coronavirus (or ‘COVID-19’) pandemic is the ‘JobKeeper Payment’ Scheme. The JobKeeper Payment is a wage subsidy that will be paid through the tax system (i.e., it will be administered by the ATO) to eligible businesses impacted by COVID-19. Under the scheme, eligible businesses will receive a payment of $1,500 per fortnight per eligible employee and/or for one eligible business participant (i.e.,…  Read more

Supporting businesses to retain jobs

The Government is introducing a subsidy program to support employees and businesses. The JobKeeper Payment is designed to help businesses affected by the Coronavirus to cover the costs of their employees’ wages, so that more employees can retain their job and continue to earn an income. Keeping Australians in work and businesses in business will lay the foundations for a stronger economic recovery once the Coronavirus crisis passes. Jobkeeper Payment…  Read more

Economic Response to Coronavirus

On 12 March 2020, the Australian Government announced a $17.6 billion targeted stimulus package to support the Australian economy through the challenges of the coronavirus. The package is designed to keep small businesses afloat and employees in work, and will focus on supporting the most affected sectors. The government has stated that the measures are temporary, targeted and scalable. The main areas of support relevant to small businesses are: Cash…  Read more

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