Happy New Financial Year - 2021
Added on by Etairos Accounting
Happy New Year, and welcome everyone to the start of FY2021 !
Hopefully it will be a better year for everyone compared to the COVID-19 affected FY2020. Hope you have all made your new year financial resolutions (whether they be plans for relaunching, new targets, new marketing ideas, new products etc). Whilst the adverse economic effects for some have passed, it is just starting for others, who have had a delayed effect through existing forward orders/workload in place in March that has carried forward to date.Don’t forget there are numerous economic measures in place to assist both businesses and individuals affected by COVID-19, summarised as follows;
Jobkeeper
JobKeeper is available to businesses that have had a 30% downturn in sales in a period since March, with benefits of $1,500 per fortnight per qualified employee and business owners/participants (maximum of 1) until the end of September. Ongoing monthly reporting is required to maintain payments. The new requirements of the JobKeeper extension (see below) do not affect a business’ eligibility for the period up to 27 September 2020.JobKeeper Extension
JobKeeper will continue to apply for eligible businesses past the planned 27 September 2020 end date, with the extended date being moved to 4 January 2021 for the first extension period, and then to 28 March 2021 for a second extension period - Click here for more information
Cash Flow Boost
Cash Flow Boost for employers with PAYG withholding on employees’ wages being paid to a minimum of $10,000 and maximum of $50,000 for the period 1/1/2020 to 30/6/2020, that being called cash flow boost 1, then that value being matched in the period from 1/7/2020 to 30/9/2020, that being called cash flow boost 2. (BAS' for the month of June 2020 or quarter ending June 2020 should be lodged as early as possible to confirm your Cash Flow Boost 1 amount, so Cash Flow Boost 2 entitlements can be automatically calculated by the ATO and paid at the earliest possible date. (Note that a BAS prepared and lodged early determines your net tax result for that period, but does not change the payment due date (being the 21st day of the next month for monthly BAS lodgers, or the 56th day after quarter end - 8 weeks, where we lodge for you, or next business day if that falls on a weekend/public holiday)Early Release of Super
The early release of super is in place where an initial component of up to $10,000 could have been claimed up until 30/6/2020, and then a second component of a further $10,000 available to be claimed between 1/7/2020 and 30/9/2020. The withdrawal is tax free to valid applicants, who are those that have more than a 20% loss of their earnings or hours, lost as a result of COVID-19. Please ensure you meet the time frame if you qualify. Please note that the ATO has announced penalties of up to $12,000 for claims whereThere has not been the required 20% reduction, orThe individual withdraws the amount and re-contributes as a tax-deductible super contribution solely for a tax advantage, orThe individual contributes the amount as a tax deductible contribution to enable them to withdraw solely for a tax advantageApprentices or Trainees
If you had apprentices or trainees in place on 12 March 2020, then the Government is offering wage subsidies up to $21,000 per employeeInstant Asset Write Off
The instant asset write off incentive providing accelerated or up front deductions for purchases up to $150,000 (subject to the car depreciation cost limit of $58K) has been extended from FY2020 to 31 December 2020 for any eligible small business entities for any plant and equipment or vehicles (depreciable assets), so take advantage if you are going to purchase this year by purchasing prior to 31 December 2020.Other Assistance
- Loan relief is potentially available if you are COVID-19 affected and your bank/lender offers deferrals. Many banks have this week announced that they will extend this period of assistance by a further 4 months for lenders that can prove ongoing impact
- Rent relief is potentially available if you are COVID-19 affected and your Landlord offers reductions or deferrals
- Qld government grants are available on application but are subject to specific conditions as previously advised.
