Immediate business actions for a safe and successful restart
Transitioning into the “next normal” will require a review and reboot of operational plans and capabilities. The speed and steps needed to restart will be different for each business sector and region. This checklist focuses on the key actions that will help you to adapt quickly and efficiently.
Step 1: Are you already enrolled in the JobKeeper scheme? If not, do you meet the core requirements to be eligible to enrol for JobKeeper, such as carrying on a business at 1 March 2020?
Step 2: Check if there has been a decline in your actual GST turnover by at least the relevant percentage applicable to you.
In most cases, this would involve a comparison of the total sales (excluding GST) in the BAS for the quarter ending 30 September 2020 to the total sales (excluding GST) in the BAS for the quarter ended 30 September 2019.
If the requisite decline in turnover is not satisfied, check whether an alternative test applies. The alternative tests will likely be based on the alternative tests for the original phase of JobKeeper, but the ATO is expected to publish some limited modifications.
Step 3: Calculate whether the total hours for your eligible employees and, if applicable, your eligible business participant, were at least 80 hours for the relevant reference period/s. Total hours for employees includes actual hours worked, paid leave and paid absence for public holidays.
The relevant reference period/s will generally be a particular 28 or 29-day period and is not to be confused with the current JobKeeper fortnight.
If the total hours calculated for the reference period is at least 80 hours, the higher rate of $1,200 per fortnight will apply. Note that for your eligible business participant, you must receive a supporting declaration from them specifying they were actively engaged in the business for at least 80 hours.
If the 80 hours is not satisfied, check whether an alternative reference period can be used to satisfy the 80 hours requirement.
Otherwise, the lower rate of $750 will apply in respect of that individual.
For your eligible employees, if you cannot readily ascertain the number of hours worked, consider whether you fall into one of the specified circumstances in which the higher rate is deemed to apply.
Step 4: Make any top-up payments required for JobKeeper fortnights 14 (ending 11 October 2020) and 15 (ending 25 October 2020) by 31 October 2020.
Step 5: Ensure you complete the required notifications within the specified times.
Notify the Commissioner in the approved form of the rate that applies to your eligible individuals.
Notify your eligible individuals in writing within seven days of advising the Commissioner of the payment rate that applies to them.
Step 6: Continue to make your business monthly declarations by the relevant due date (generally early in the following month).
READ:
NSW duty & land tax surcharges – act before December 2020
If you’ve acquired residential property or are looking to acquire residential property through a discretionary trust, the trustee may be liable for surcharges if any one of the ‘potential beneficiaries’ is a foreign person. Depending on your circumstances, you may need to make changes to your trust deed by 31 December 2020 to ensure you’re not exposed to foreign surcharges and don’t pay extra stamp duty or land tax.
Action: If your trust owns property or may purchase property in the future and any one of the potential beneficiaries is a foreign person seek legal advice. You may need to amend the trust deed to avoid being liable for a foreign person surcharge.
READ:
NSW duty & land tax surcharges
Update on Payroll Tax Relief Measures
VIC
In response to the second wave of COVID-19, the Victorian Government has increased the threshold for payroll tax deferral from $3 million – $10 million. Under the new rules, an eligible employer whose Victorian taxable wages did not exceed $10 million for the 2019-20 financial year can defer their payroll tax liabilities for the 2020-21 financial year.
NSW
If you’ve deferred your payroll tax for the period of the July, August and September 2020 periods, it is now payable by 30 October 2020.
For more on the payroll tax relief measures across Australia check out our brief summary.
READ:
Update on Payroll Tax Relief Measures
Read the Previous Checklist here >
Written by: Cameron Martin
Source: William Buck
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