Month: April 2020
EOFY Removal of Main Residence CGT Exemption for Non-residents
Expatriate Australians are currently listing their Australian family homes for sale in reaction to the Australian Government’s upcoming scrapping of the Capital Gains Tax (CGT) exemption which has been applicable on the Australian family home for over 35 years.Changes to tax law made by the Australian Government will see the end of the main residence exemption from CGT for all non-resident Australians, regardless of how long they have been living and working overseas. Australians currently offshore have until 30 June 2020 to sell their main residence – held since prior to 9 May 2017 – and thereby benefit from the current CGT exemption.
For those who choose to sell – and finalise a sale – prior to the deadline, these expat homeowners may claim an exemption on the tax payable on any capital gain from the sale of their main residence.
For those who choose not to sell - or do not finalise a sale – prior to the deadline, consider that the new law will apply retrospectively to a property, meaning tax will be payable on the accumulated capital gain for the entire time a property was owned.
You will need to consider your intention to return to Australia to live. You will need to assess your personal situation about living in your main residence or selling it, and the possible tax consequences of both scenarios.
Foreign residents for tax purposes are affected by the change of law:
- for property held prior to 7:30pm (AEST) on 9 May 2017
- you can only claim the CGT main residence exemption for disposals that happen up until 30 June 2020 and only if you meet the other requirements for the exemption
- disposals that happen from 1 July 2020 are no longer entitled to the CGT main residence exemption unless you satisfy the life events test (https://www.ato.gov.au/General/Capital-gains-tax/International-issues/Foreign-residents-and-main-residence-exemption/)
- for property acquired at or after 7:30pm (AEST) 9 May 2017
- the CGT main residence exemption no longer applies to disposals from that date unless you satisfy the life events test
Take Action NOW
Urgently entreat professional guidance on the tax implications for you (and your family) of a possible sale of your main residence in light of the impending removal of the main residence CGT exemption for non-residents.
How can YML help?
Talk to our Accountants today to see how YML Chartered Accountants can assist you with your CGT obligations. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.
Superannuation Guarantee Amnesty 2020
Are you an employer with unpaid (or underpaid) superannuation guarantee (SG) charges that you didn’t disclose to the ATO under the SG amnesty from 24 May 2018 and 5 March 2020? Well, now you can still apply to disclose and pay previously unpaid SG charges under this SG amnesty.If you haven’t already previously applied for SG amnesty, from 6 March 2020, you will need to lodge an application with the ATO for amnesty and you must do so prior to 11:59pm on 7 September 2020.
What does the SG amnesty mean to me as an employer?
You may:
- Disclose any or all unpaid SG charge amounts owed to past and current employees;
- Pay any or all unpaid SG charge amounts owed to employees – either directly or via the ATO;
- NOT incur the ATO’s administration fee of $20 per employee per quarter;
- NOT incur the ATO’s Part 7 penalty of up to 200% of any outstanding and un-repaid SG charge amounts; and, in addition,
- Be able to claim SG charge amounts, paid between 24 May 2020 and 7 September 2020, as tax deductible. (See below: What help is there during the COVID-19 pandemic?)
From when should I calculate the unpaid SG charge amounts?
Undeclared SG charge amounts owing to employees between 1 July 1992 and 31 March 2019 are allowed under the SG amnesty.
What help is there during the COVID-19 pandemic?
At this difficult time for employers, during the COVID-19 pandemic, the ATO will allow under its SG amnesty that the payment of SG charges to employees be fully tax deductible. The period for these payments to be refunded is 24 May 2020 to 7 September 2020.
You remain eligible under the SG amnesty so long as you commit to a payment plan to repay outstanding SG charge amounts and comply with the payment plan. The ATO will notify you to help you avoid a default or failure-to-comply.
Next Steps
There is no expiry date on the obligation to pay superannuation to your employees, so making the most of the current SG amnesty will result in mitigation or removal of penalty for past non-compliance.
To help ensure future compliance, real-time reporting using mandatory single-touch payroll (STP) software will allow the ATO to see that you are up-to-date on your SG charge payments to employees and if you are not up-to-date, the ATO can readily and timely communicate with you.
At YML Group we can guide you through the SG amnesty period by identifying your unpaid SG charges, assessing your eligibility and then preparing and lodging your SG Amnesty payment form.
How can YML help?
Talk to our YML Super Solution Team today to see how YML Group can assist you with the SG Amnesty. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.
GOVERNMENT INCENTIVES UPDATE
The COV19 Stimulus and Support Measures article provides both a summary and a detailed explanation of the support available to you. This is an updated version of previous information we have provided to you through our newsletters. We hope that it is helpful to you.COVID 19 Stimulus and support Measures .pdf
How can YML help?
Talk to our team today to see how YML Group can assist you with your ‘COVID-19’ business strategy. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.
JOBKEEPER INCENTIVE – ENROLMENT REQUIRED 30/04/20
We have created an efficient and innovative process to assist you with the JobKeeper incentive process. If you would like YML to manage the JobKeeper incentive process for you, please do the following urgently:- Click on the link below to engage us and provide us with your bank account details
https://app.hellosign.com/s/JTYX1jRe
- AND Click the link below if you are a business owner (and not an employee) in order for you to receive JobKeeper
https://app.hellosign.com/s/Hu4BQXtt
- AND Provide the link below to your employees so that we can collate the employee information required for you to receive JobKeeper (you will also need to provide your employees with your ABN)
https://app.hellosign.com/s/JhE06wTy
Please feel free to provide the above to your family and friends that also need assistance with JobKeeper.
How can YML help?
Our Accountants are extremely busy assisting clients at the moment. If you require YML to manage the JobKepper process, the above links are the most efficient way for us to do this for you.
Economic Stimulus Package – Small Business Grants
To be eligible, businesses will need to:- Have between 1-19 employees and a turnover of more than $75,000;
- A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;
- Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
- Be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020;
- Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
- Provide appropriate documentation upon application.
Applications for a small business grant of up to $10,000 will be available through Service NSW within a fortnight and remain open until 1 June 2020. Please see the link below for more information.
https://www.nsw.gov.au/your-government/the-premier/media-releases-from-the-premier/10000-grants-to-provide-fast-relief-for-nsw-small-businesses-battling-covid-19/
How can YML help?
Talk to our YML Chartered Accountants Team today to see how YML Group can assist you. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.
