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JobMaker hiring credit: What you need to know

February 4, 2021

The JobMaker Hiring Credit scheme was passed into law in mid- November 2020. JobMaker was part of the 2020-21 Federal Budget, and will operate until 6 October 2021. It is designed to improve the prospects of young individuals getting employment, by incentivising employers to hire them, following the devastating impact of COVID-19 on the labour…

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A run down of the new loss carry back measure

A run-down of the new loss carry back measure

December 2, 2020

The last Federal Budget carried with it a number of tax changes that were designed to assist the Australian economy recover from the impact of the COVID-19 pandemic. Among the changes announced was the temporary re-introduction of the loss carry back rules for corporate tax entities (it was previously briefly in force for 2012-13). The…

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JobKeeper extensions alternative turnover tests

JobKeeper extension’s alternative turnover tests

November 6, 2020

New residential property is a popular investment for many, and can be especially so for self-managed superannuation funds, however the ATO is concerned that not every investor in residential property is fully aware that it is an option that may bring with it unexpected GST obligations. The ATO says that from 1 July 2018, most…

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JobKeeper rules conditions and payment rates have changed

JobKeeper rules, conditions and payment rates have changed

October 2, 2020

Legislation has been put in place to extend the JobKeeper scheme beyond its original sunset date, although the rates of payment and certain other details have been altered. The scheme is now to run until March next year, with one version lasting until 3 January and another version in place from then until 28 March.…

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Fears of Div 7A danger from COVID relaxed loan repayments unfounded

Fears of Div 7A danger from COVID-relaxed loan repayments unfounded

October 2, 2020

The ATO has clarified its position regarding loans, and the repayments of loans that may have been put on hold for the period that COVID-19 has a grip on the economy and our lives. An important sidebar to the ATO’s announcement is the implications regarding Division 7A — just in case you have had some…

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Electronic execution of documents during COVID 19

Electronic execution of documents during COVID-19

October 2, 2020

The COVID-19 pandemic has prompted state and territory governments to temporarily ease the manner in which documents are executed. It is now possible under multiple jurisdictions to sign and witness certain documents electronically or via audio visual links. The changes address difficulties in executing documents amid social distancing and stay-at-home restrictions. However the requirements for…

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COVID 19 payments and some issues for companies and trusts

COVID-19 payments and some issues for companies and trusts

September 1, 2020

With many having received cash flow boost and JobKeeper payments, there can arise some unique issues where these amounts are received within a trust or company. The cash flow boost and JobKeeper payment have been flowing to eligible businesses for some time now. These stimulus payments have differing tax treatments, which are: the cash flow…

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The JobKeeper scheme gets an update plus an extension

The JobKeeper scheme gets an update, plus an extension

August 3, 2020

The JobKeeper payment, which was originally due to end after 27 September, will now continue to be available to eligible businesses (including the self-employed) until 28 March 2021. However there are some changes to consider. The JobKeeper payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 from…

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Varying PAYG instalments because of COVID 19

Varying PAYG instalments because of COVID-19

July 7, 2020

PAYG instalments is a system that helps you manage your expected tax liability on income from your business or investments for the current income year by making smaller regular payments. To assist taxpayers experiencing financial difficulty as a result of COVID-19, the ATO is providing added flexibility to manage your instalments to suit your circumstances.…

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Rental passive income and carrying on a business for JobKeeper eligibility

Rental (passive) income and ‘carrying on a business’ for JobKeeper eligibility

June 3, 2020

When assessing eligibility for JobKeeper assistance, the first question that must be answered is whether the entity was carrying on a business as at 1 March 2020. This question is of particular relevance to entities that have solely or predominantly rental income (other than input taxed supplies). One Administrative Appeals Tribunal case noted that “the…

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