JobKeeper changes and extension – starts January 4.

JobKeeper 2.0 has been extended until March 28 with details outlined below.

Key points:

  • Completion of the December business monthly declaration has been extended from the usual 14th of each month to 28 January 2021.
  • From 4 January, the second extension period for JobKeeper will begin and covers the fortnights between 4 January and 28 March. Payment rates will fall to $1,000 per fortnight for those on the tier 1 rate, and $650 per fortnight for those on tier 2.
  • To claim JobKeeper payments for this period, you will need to show that your actual GST turnover has declined in the December 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019). See more information here: Actual decline in turnover test | Australian Taxation Office (ato.gov.au)
  • All former criteria for JobKeeper eligibility remain the same. (New enrolments in JobKeeper are also accepted from 4 January providing all criteria for decline in turnover are met.)
  • Remember that JobKeeper payments are made in arrears. You must have made payments to your employees (met the wage condition) to be reimbursed.

New employers

If you are enrolling for the JobKeeper payment for the first time, the ATO advises that you will need to complete the following actions by the end of the month that you wish to claim for:

  • Enrol for the JobKeeper payment online (be aware that it may take up to three days to process before you can submit your decline in turnover form and identify your eligible employees).
  • Submit your decline in turnover form.
  • Identify your eligible employees or business participant and tell the ATO whether the tier1 (higher) or tier2 (lower) payment rate applies to them.
  • Eligible employers will be able to access and submit the decline in turnover form to determine their eligibility to participate in the second JobKeeper Payment extension period from 4 January 2021 to 28 March 2021.

More information on JobKeeper for 2021 is available here: JobKeeper key dates | Australian Taxation Office (ato.gov.au)

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HomeBuilder Grant – new extension for contract signing, now 31 March 2021

The HomeBuilder Grant is available through the South Australian Government, with funding provided by the Federal Government.

The grant is available to eligible owner-occupiers (including first home buyers) who build a new home, substantially renovate an existing home, or buy an off the plan/new home. It is also means-tested.

A contract with a licenced builder must be signed between 4 June 2020 and 31 March 2021 inclusive.

The amount available is:

  • $25,000 where the contract is signed between 4 June 2020 and 31 December 2020
  • $15,000 where the contract is signed between 1 January 2021 and 31 March 2021

Applications must be submitted by 14 April, 2021. More information is available here: HomeBuilder Grant – RevenueSA

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Tips – Budgeting for Christmas 2020

Christmas is almost here and shoppers everywhere are getting ready for their annual shopping spree. While consumption seems the name of the game at this time of year, it is worth considering some ideas to make sure the spending doesn’t get out of hand.

  1. Have a budget. This sounds simple, but a large number of people hit the shops each year without one. Decide the essential people you really need to buy for and shop around for the gifts that suit your budget. Try not to rack up the credit card by keeping a close track of your spending.
  2. Being thrifty has always had slightly negative connotations, but it shouldn’t. Not spending more than you have to is a skill worth cultivating. Check out several stores before you buy as prices may vary, save a little in advance over the year for the Christmas spending, only buy what is required when the time comes. Don’t be tempted by Boxing Day sales unless you really need something.
  3. Consider cutting down on the number of gifts you buy each person. It’s far better to buy one nice present, rather than lots of small ones that might cost more. Tell the kids to manage their expectations this year – training them about the real meaning of Christmas early is probably a good idea. Ask them to write a list of five things they really want (within limits), that way you can be sure to choose one thing that will make them happy without breaking the bank.
  4. Handmade gifts are all the rage. Consider giving someone a babysitting voucher (for your own services), make your own wrapping paper and cards, try baking a cake or cookies to present in a nice jar. Giving some a gift you make yourself is a touching gesture of kindness.
  5. Relax. Christmas shouldn’t be about how much you spend on people, it’s about getting together with friends and family for a reflection of the year that has past and a rest before a new one begins.
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Tips for working from home

Working from home is fast becoming the new normal.

In South Australia, which is relatively unaffected by COVID these days, only around 60 per cent of workers have returned to the CBD. Many are still working from home and are likely to continue doing so for the foreseeable future. In fact, companies like Facebook have said 50 per cent of its jobs will be remote within 10 years; Twitter is letting almost all its global workforce work from home forever.

Here are some helpful tips to make the work from home experience more productive:

  1. Dress for the day – don’t start and finish in your PJs. Pretend you are going to the office at a regular starting time each day and make sure you finish work at a set time too.
  2. Have a designated space to work – forget squeezing onto the kitchen table, if this is a long-term arrangement, arrange a space that is suitable for working with a suitable chair and access to light. And keep the space neat and tidy like any office area.
  3. Take time out and leave the office for a walk each day – it’s important to get out of the house every now and again to take a break from desk activities. Try to catch up with a colleague face-to-face if possible a few times a week.
  4. Manage your time effectively. Keep a checklist of jobs to complete each day and work your way through them, checking each one off.
  5. Feeling grateful. Think about all the things that are great about working from home and try to make the most of it. That might mean being able to get to school pick-up earlier, not having to rush as much in the mornings, not sitting in traffic, or having a nicer outlook from your desk. Reflecting on these points will aid mental health.

 

For more tips on working from home and boosting productivity go to:

https://www.canva.com/learn/work-from-home-tips/

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HomeBuilder Grants – are you eligible?

Applications are now open for the HomeBuilder Grant.

The HomeBuilder grant is a tax-free grant program initiated by the Federal Government to stimulate the residential construction sector in response to the economic downturn caused by COVID-19. It provides eligible applicants with a $25,000 grant to help build a new home, or to renovate an existing home.

Although the program targets first home buyers, all eligible homeowner-occupiers can receive the grant — provided you meet the income criteria, are spending more than $150,000 on the home or renovations, and that the cost of the new home is under $750,000, or the value of the existing home is not more than $1.5 million.

You can buy off the plan as well as house and land packages, but the buyer must be an owner-occupier.

To be eligible for the HomeBuilder grant you must enter into a comprehensive home building contract between 4 June 2020 and 31 December 2020 (inclusive) and the new home must be your principal place of residence. Construction must commence within three months of the contract date.

For more detailed information on the Commonwealth HomeBuilder program here is useful link: http://revenuesa.sa.gov.au/grants-and-concessions/homebuilder-grant

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Launch of JobKeeper 2.0

JobKeeper 2.0 is set to begin on September 28 and will run until March 28, 2021. Many businesses will still be eligible for payments, but others may find the new criteria makes them ineligible to continue in the program. Although the finer details are still being worked out by the ATO, here are the main points:

 

Extended access to the program

Good news. If you employed a permanent staff member before 1 July, they may now be eligible for JobKeeper. In addition, if you have casuals who have been employed with you for 12 months on or before 1 July 2020, they may also be able to participate in the program. (Please call our office for details of how to register new staff members if your business will still qualify for JobKeeper.)

 

Eligibility

To be eligible for JobKeeper 2.0 payments, businesses must show an actual fall in turnover of at least 30 per cent for the September 2020 quarter, including calculations of GST for the September 2019 comparison quarter. (Entities will now be required to demonstrate that their actual GST turnover has declined by the required percentage, rather than projected GST turnover under the first phase of the wage subsidy scheme.)

 

Assessment

While many of the details are still to be finalised, it is likely business activity statements will play a large role in eligibility for the scheme. For those who are ineligible in September for the new JobKeeper 2.0, it is important to remember that you can still apply if circumstances change.

 

Payment levels

JobKeeper 2.0 will now examine how many hours are worked by staff in any month, and there will be two tiers of payments, to be paid on a fortnightly basis.

  • From 28 September until 3 January 2021, all eligible employees who worked 80 hours or more in the four weekly pay periods before either March 1 or July 1 will receive the tier one rate, worth $1,200 per fortnight before tax. All other eligible staff that do not meet this threshold will be paid under the second tier, worth $750 a fortnight.
  • From 4 January 2021 to 28 March 2021, the payment rate will drop back to $1,000 per fortnight for all eligible employees and $650 per fortnight for employees who were working for less than 20 hours a week on average. Once again, participants will need to prove their reduced income for the December quarter compared with the same quarter in 2019

 

Sole traders

 Sole traders will need to provide declarations about their involvement in their businesses during February. Eligible business participants must have been actively engaged in their business for 80 hours or more in February to claim the higher tier of payments, worth $1,200 per fortnight. (They will also need to prove the relevant drop in turnover for the September quarter.)

Further information about how to qualify for the new scheme will be released by the ATO shortly, until then this is an excellent summary: https://www.accountantsdaily.com.au/tax-compliance/14835-ato-guidance-imminent-as-jobkeeper-rules-land.

 

For assistance with any questions about JobKeeper 2.0, please contact our office and our advisers and we will be happy to assist.

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Welcome Kirsten to the dmca advisory team!

We had an amazing new team member start last month, which we are thrilled to share with you all. Read a little bit about Kirsten and her first week below:

“I am a foodie at heart, I enjoy cooking and baking, but most importantly I love eating and discovering new and exciting recipes! I love going on road trips down the coast and exploring new places. My dog Bella keeps me busy with walks through national parks and down the beach most days. An important part of my life is spending time with family and friends, having a laugh over a few beverages.The first week at dmca advisory, I was welcomed with some amazing gifts and afternoon tea to get to know the team on the first day. Everyone here at dmca advisory have been very kind and friendly, helping me as I learn the ropes. I have enjoyed getting to know the clients that have come into the office over the past week, and look forward to meeting and getting to know many more.”
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Scam Alerts

Clients should be aware of the rising level of scam alerts that have been occurring since February this year.

Many scammers are taking advantage of the COVID-19 pandemic to play on people’s fears. There have been multiple reports of phishing scams sent via email or text message that claim to be providing official information on COVID-19, but are really attempts to obtain personal data.

Scammers pretending to be from the ATO have also been calling or texting members of the community, telling them that they have a tax debt and if they don’t pay they will be arrested. Scammers will often request payment through unusual methods, such as cryptocurrency, pre-paid credit cards or gift cards.

If you receive a communication like this, do not send payment or provide any personal information. Hang up or delete the message immediately. If you wish to confirm if the message is from the ATO, call 1800 008 540 to check.

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