In order to support the economy, the government has decided to extend the temporary JobSeeker COVID supplement for a further 3 months until the 31 March 2021, although at a further reduced rate. The temporary supplement was due to end on 31 December 2020, however, with the continued closure of internal State borders, and the lagging economy, the extension will continue the temporary safety net for many individuals.
The Government has released details of what it calls its “JobMaker” hiring scheme. It will take the form of a payment to employers for each new job they create over the next 12 months. It is estimated that the scheme will cost $4 billion and support about 450,000 employees. So it could help a lot of businesses and there is quite a bit of money up for grabs – up to $200 for each “new” employee each week!
The 2020 Budget has been handed down and as expected, the government has brought forward the previously legislated stage 2 tax cuts from 1 July 2022 to 1 July 2020. Other measures include the bringing forward and retaining various low-income offsets, targeted CGT exemption for granny flats, and cash payments for some income support recipients.
The Treasurer has handed down his second Budget amid challenging economic conditions, it is perhaps no surprise that in a Budget “all about jobs” that there would be plenty of sweeteners for businesses. Some of the more salient measures announced include the extension of small business tax concessions, outright deductions of capital assets until 30 June 2022, loss carry-back, and clarification of the corporate residency test.
With the ongoing nature of the COVID-19 pandemic continuing to affect the economy along with the effect of border closures, it is no surprise that many state governments have opted to increase the amount of support offered to businesses and individuals situated in their respective states.
With the country officially in recession, the ATO is getting ready to help businesses that are struggling due to the economic downturn caused by COVID-19. It expects that for the 2019-20 and 2020-21 years, many businesses that ordinarily turn a profit may be making a loss, and for some businesses it may be the first time that they are making a loss. Businesses that find themselves in a loss-making position are urged to keep proper records to ensure that they can claim the deduction they are entitled to.
With the COVID-19 pandemic affecting all aspects of the economy, it is not surprising that some managed funds have suspended or cancelled the ability of investors to withdrawal their money. Broadly, managed funds include any fund in which the money you invest is pooled together with other investors. The fund manager or responsible entity then uses the pooled money to buy and sell assets (including shares or bonds) on your behalf.
The government’s super guarantee amnesty has now officially ended. If your business applied to the ATO and the application was received on or before the cut-off date of 7 September, your work isn’t done yet. Remember, to retain the benefits of the amnesty, your business is required to either pay the amount in full or enter into and adhere to a payment plan for any unpaid amounts.
If you run a business which may have a super guarantee shortfall, inadvertent or otherwise, be quick as time is running out to take advantage of the one-off government amnesty. The amnesty was passed by Parliament earlier this year and businesses could be forgiven if they missed the announcement which happened around the same time as COVID-19 started to take hold around the world.
In an effort to reduce the instances of phoenixing, where the controllers of a company deliberately avoid paying liabilities by shutting down indebted companies and transferring assets to another company, a new initiative of director identification numbers (DINs) has been passed and will come into effect in the near future.
In a bid to improve the experience of taxpayers when dealing with the ATO in relation to deceased estates, the Inspector General of Taxation and Taxation Ombudsman (IGTO) has recently completed a report which identified opportunities to improve tax administration and cut unnecessary tax compliance.
The COVID-19 pandemic has presented some of the toughest challenges to businesses and the economy in recent memory. No surprises then that the superannuation industry has also been heavily impacted both in terms of early withdrawal of super and in investment opportunities. In the context of an uncertain future, ASIC has released information about what it expects from super funds including SMSFs, in order to provide a semblance of certainty to trustees.