Category: Newsletters
Economic Stimulus Package Updates
Recently, the Australian Government announced that the JobKeeper program is effectively helping businesses to retain their employees. If your business currently receives JobKeeper, JobKeeper payments at the current rate of $1,500 per eligible employee will continue unchanged until 27 September 2020.
JobKeeper – REMINDER
As a business owner, you may be eligible to access JobKeeper, a temporary wage subsidy, enabling businesses to pay each eligible employee $1,500 per fortnight until 27 September 2020.
If you carried on a business in Australia and employed at least one person within your business on 1 March 2020, then your business is eligible for JobKeeper if it meets the basic decline in turnover test.
Under the basic turnover test, a comparison is made between your business’s GST turnover in a defined 2020 period compared with the same period 12 months prior.
A 30 per cent decline for businesses with a GST turnover of $1 billion or less is required to meet the test. Check your business’s eligibility using these five steps: https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper-tests/Applying-the-turnover-test/?page=2#Basic_test
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
- Click the link below if you are a business owner – and not an employee – for you to receive JobKeeper https://app.hellosign.com/s/Hu4BQXtt
- 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
- employees of an approved provider of childcare services where the employee's ordinary duties are that they are principally engaged in the operation of the childcare centre
- eligible business participants where the business entity is an approved provider of a childcare service
The extended JobKeeper wage subsidy program – JobKeeper 2.0 – will commence on 28 September and run until 28 March 2021.
Additional JobKeeper 2.0 eligibility testing will be conducted due to tighter access of the reduced JobKeeper rates during the second phase of the program. Employers of eligible businesses will need to reassess their eligibility at the end of September 2020 and again in early January 2021.
Turnover Decline Test
Business owners will be required to demonstrate actual decline in revenue against the comparable prior period/s in 2019, rather than use forecasts. Actual GST turnover decline must be shown to be at least 30 per cent for both the June and September quarters to be eligible for JobKeeper payments from 28 September 2020. Similarly, continuing actual GST turnover decline of at least 30 per cent for the December quarter must be shown to be eligible for JobKeeper payments from 4 January 2021 up until 28 March 2021.
Reduced JobKeeper Rates
JobKeeper 2.0 will be based on the hours worked by employees in the four weeks prior to 1 March 2020. There will be two tiers of JobKeeper rates:
High Tier – $1,200 per fortnight until 3 January 2021, reducing thereafter to $1,000 per fortnight – for those employees who worked 20 hours or more per week.
Low Tier – $750 per fortnight until 3 January 2021, reducing thereafter to $650 per fortnight – for those employees who worked fewer than 20 hours per week.
Under JobKeeper 2.0 employers will pay a greater proportion of their employees’ wages because the minimum wage condition will still apply.
If you would like YML to manage the NEW JobKeeper 2.0 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/AQ4JJwKc
NSW Small Business Recovery Grant
The NSW Government has launched its Small Business Recovery Grant scheme to assist small business owners to reopen and/or upscale their businesses as part of NSW’s economic recovery. Eligible businesses may receive a grant of between $500 and $3,000.
To ease the pressure of re-opening or revitalising a business, the up-to-$3,000 cash grant may be used towards paying post-1 July 2020 business costs, including:
- Premises fit-out changes
- Staff training – safe work practices in COVID-19 conditions
- Cleaning products and services
- Marketing expenses
- Advertising costs
- IT upgrades
On 1 March 2020, you must:
- Be a small business or not-for-profit organisation based in NSW and have an ABN registered in NSW;
- Have an annual turnover of more than $75,000 (BAS is used as evidence);
- Employ fewer than 20 full-time equivalent employees;
- Have paid 2019-20 payroll tax below the $900,000 threshold;
- Be a highly-impacted industry (Public Health Order (COVID-19 Restrictions on Gathering and Movement) 2020) See Attachment A https://www.service.nsw.gov.au/small-business-covid-19-recovery-grant-guidelines#attachment-a-list-of-highly-impacted-industries; and
- Have post-1 July 2020 costs associated with reopening or upscaling your business.
Applications close at 11:59pm on Sunday 16 August 2020. Late applications will not be accepted.
If you would like YML to manage the NSW Small Business Recovery Grant 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/4KgGReKO
How can YML help?
We hope that this guide helps you to access the JobKeeper Payment scheme and NSW Small Business Recovery Grant scheme independently if that is your preference. Alternatively, please talk to our Accountants today if you would like to engage YML Chartered Accountants to manage these applications on your behalf. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.
Buying Property through your SMSF
Self-managed superannuation funds (SMSFs) can be used to purchase both residential and commercial properties with or without a mortgage from a lender. If your SMSF has a sufficient balance for a deposit, then you are likely in a position to consider property investment as part of your SMSF investment portfolio.
Investing in property through your SMSF is not as straightforward as property investment without the support of your superannuation. Timing is important and having at least 5 to 15 years until retirement can ensure a steady flow of contributions to your SMSF after purchasing any property.
The Australian Taxation Office (ATO) offers guidance for any property asset bought through a SMSF and these points should constitute part of your investment strategy:
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A) It is important that all investments are in the best interests of fund members and that the Sole Purpose Test is met. Your SMSF must have a sole purpose of providing retirement funds to its member/s.
- each member’s needs and circumstances (age and retirement needs)
- diversification (investing in a range of assets/asset classes)
- liquidity of the fund’s assets (how easily converted to cash to meet expenses)
- fund’s ability to pay benefits (when members retire)
- insurance to protect members and their retirement savings
B.) A property purchase must be made as an ‘arm’s length’ transaction and be maintained on a commercial basis; that is, not be used personally – for example, as a holiday home or leased to a family member.
To be deemed commercial, a SMSF-bought property must provide an income stream and have a realistic prospect of capital growth. Where one or more properties exists in a SMSF investment portfolio, you must consider:
C.) A property asset’s cost price, sale price and rental income must reflect true market rate of return and must not be bought by or sold to any member of your SMSF.
Pros
- Combined investing: Where your personal savings outside of superannuation are not enough for a deposit amount, combining individual superannuation account balances with your partner or your family members may give you the purchasing power for a property asset for retirement investment purposes.
- Repayments from pre-tax dollars: If you can afford to save and have room within your concessional contribution limit, then you can salary sacrifice additional income to your SMSF to help pay off the property loan more quickly from your pre-tax dollars. Paying 15% on salary to make repayments is likely less than paying your marginal tax rate on your income and simply putting money in to a savings account.
- Tax-effectiveness: Superannuation receives concessional tax treatment on assets that are used to save for retirement. The earnings within your SMSF are taxed at 15% and there is a 33% discount for assets held for more than 12 months (that is, 10% CGT). This is most likely less that your marginal tax rate. An attractive bonus is a property held until retirement will result in the earnings within the pension phase being tax-free. This is in addition to any rent if you keep a property or the sale proceeds if you sell a property.
- Support your business’s growth: There are rules preventing you from purchasing a residential property for yourself or for a fund member. You may, however, buy a commercial/industrial property to lease back to your own business, potentially freeing up money to grow your business. Your business must pay a current and true market rate of rent.
- Fund set-up costs:Set-up expenses can seem prohibitive, but appraising mortgage fees and balancing costs against long-term benefits can make property investment achievable. The high cost means purchasing property through your SMSF is generally only suitable for funds with a balance of at least $250,000.
- Cash flow sensitive: You will need a larger deposit to purchase a property through your SMSF than if you borrowed directly. You may not borrow to build or to improve a property, so you will need to ensure that you can meet your repayments and property costs from rental income and any SMSF cash assets. Consider insurance for the term of the loan.
- Unsuitable for negative gearing: If you borrow to buy property through your SMSF and you are negatively geared, the tax offset only applies to other SMSF earnings – taxed at 15%.
- Large, illiquid asset: Your SMSF might not achieve diversification or have a lack of diversification if you have only one or two properties. It is wise to not have all your eggs in one basket, so reexamine your investment strategy by considering insurance, cash holdings and liquidity options to enable future pension payments.
- No personal benefit from property: Property investment within a SMSF must have been purchased as an ‘arm’s length’ transaction and must be maintained on a commercial basis. As such, a residential property may not be purchased from or leased to a related party. The ATO advises that one of the most common breaches of the sole purpose test is SMSF property assets providing pre-retirement benefits to fund members.
- Liquidity at retirement: When your superannuation transfers to the pension phase, you will need to ensure that you have accrued sufficient cash to make pension payments – without the risk of a possible fire sale of any property. Future pension payments currently range from 4% of a fund member’s balance before 65 to 5% from 65 – 75.
How can YML help?
Talk to our YML Super Solutions Team today to see how YML Group can assist you with your SMSF. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.
Digital Automation supporting Remote Work
Remote workers and the virtual workforce rely, by and large, on digital automation to deliver effective and efficient results for businesses. During the COVID-19 pandemic, we have seen a higher than normal need for businesses to automate their processes to support their employees who are working from home.
Working away from an office environment, employees can be assisted by and their work augmented by digital automation, particularly for those tasks not requiring human cognition or soft skills. Mundane manual and repetitive tasks can be programmed with specific software to process automatically, freeing up employees to undertake higher-value tasks that require human emotion and human intellect.
Digital automation can be easily achieved using a few software technologies. By combining Robotic Process Automation (RPA) with Artificial Intelligence (AI) such as Machine Learning (ML) and Natural Language Processing (NLP), a full Business Process Automation (BPA) can handle unstructured data and further reduce the need for human intervention.
Robotic Process Automation (RPA)
RPA is the use of software robots to process high volume, repeatable tasks by converting tasks in to automated steps, providing your business with advantageous propositions to:
- Improve accuracy – reduce human error;
- Save time – improve productivity;
- Standardise workflow;
- Provide consistent delivery of tasks;
- Improve compliance;
- Save money – reduce costs associated with manual processing.
Many industries, such as Banking, Finance, Insurance, Healthcare and Hospitality, use RPA to gain improved value from employees who are sooner freed to focus on building working relationships, developing strategies and performing customer service.
A common application of RPA is the automation of accounts payable. Where companies receive a high number of invoices from several to hundreds of suppliers, the invoices can be automatically scanned, reviewed, matched to purchase orders and approved for payment.
No longer are these tasks the job of human employees, enabling a business to consider fewer full-time employees and to reap the benefit of fewer errors. Within two to three months, RPA can automate large parts of the accounts department of a company enabling employees to focus on jobs that only human can do best.
Another example of successful implementation of RPA is in the hotel industry. Hotels typically run nightly audits – data consolidation of room occupancy, rates, customer credit checks, payments and surcharges – generating reports each morning. Increased customer satisfaction is gained from night-shift employees being able to focus on attending to the customer service of guests.
Hyperautomation
Hyperautomation, also known as Intelligent Automation (IA) is expanding the merit of RPA well beyond the limits of handling structured data, imitating human-computer interactions and performing data entry across multiple automated applications. Hyperautomation can now replace humans in tasks that require judgement and decision making.
Volumes of documents can be processed and approved, even analysed, automatically, eliminating the need for manual intervention including reading documentation, entering relevant data and copying information. Copying information is a chore, especially between different legacy systems, until such time as Hyperautomation and/or general Business Process Automation (BPA) is installed.
Spend your business’s money and your employees’ time on value-added resources, analyses and solutions to better service your customers. With your company’s insights, YML Innovation, one of Australia’s leaders in Business Process Automation (BPA), can successfully design and implement digital automation for your business. We have a team of qualified business analysts and solution architects to develop a bespoke software framework to interact with your internal computer system.
After deployment, regular monitoring and dedicated support is provided by YML Innovation, so that the benefits of digital automation can continue to be tangibly experienced by your business, your clients and your remote workforce.
How can YML help?
Talk to our YML Innovation Team today to see how YML Group can assist you with digital automation. For more for more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.
Funding to help small businesses re-open after COVID-19
If you own and run a small business, you might be eligible for a $3,000 grant to help you revive your business post the economic downturn caused by the COVID-19 pandemic. The new support funding is available from the existing $750 million Small Business Support Fund provided by the NSW Government.Where you have been in survival mode, the NSW Government is encouraging you to kick-start your business by offering an immediate opportunity for small businesses to get back on their feet under its Small Business Recovery Grant scheme.
To ease the pressure of re-opening or revitalising your business, you may use the $3,000 cash grant towards paying for post-1 July 2020 business costs, including:
- Marketing expenses
- Advertising costs
- Premises fit-out changes
- Staff training – safe work practices in COVID-19 conditions
A small business will potentially need to meet criteria. The criteria can be confirmed once the NSW Government has announced it. If you would like to know what it is, we will contact you as soon as it is available. Please click here if you are interested.
One grant per ABN is available and applications for the $3,000 cash grant will open on Wednesday 1 July 2020 until 15 August 2020.
Now is the time to turn your small business around, welcome customers back and attract new ones. Make sure you give your business the best chance to recover and apply NOW.
YML Group has been collaboratively assisting small businesses throughout the difficult economic times of the COVID-19 pandemic. We can help you prepare and lodge your Small Business Recovery Grant application.
How can YML help?
Talk to our 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.
COVID-19 – Workers Compensation and JobKeeper
Workers who have been fortunate enough to continue working in their jobs during the COVID-19 pandemic face the risk of contracting COVID-19 during their employment. Should this occur to an employee of yours, you may be entitled to claim Workers Compensation for the affected employee under amended legislation.
Under a new section – section 19B – in the Workers Compensation Act 1987 (NSW), it is presumed that an affected employee’s ‘prescribed employment’ is the main and substantial contributing factor of any contraction of COVID-19. Thus, there is an automatic entitlement to compensation.
The definition of ‘prescribed employment’ is broad and allows for several industries including hospitality, retail, construction, aged care and health. Take the step to check your business’s eligibility to simplify the Workers Compensation claim process should the time come that your business needs it.
Insurance and Care NSW (icare)
When the wages your business pays are reduced in the current economic climate, report actual wages paid – regardless of whether an employee receives JobKeeper – and icare may refund any unused portion of your premium. Only work undertaken and/or hours worked are used to calculate your business’s icare premium. See table under JOBKEEPER.
JOBKEEPER
Your business financial circumstances, during the COVID-19 pandemic, may be used to determine how to best help pay your employees’ wages. As a business owner, you may be eligible to access the JobKeeper Payment scheme, a temporary government subsidy, enabling businesses to pay their eligible employees $1,500 per fortnight.
Business Eligibility
Did you carry on a business in Australia and employ at least one person within the business on 1 March 2020? If yes, then your business is eligible if it meets the basic decline in turnover test.
Under the basic turnover test, a comparison is made between your business’s monthly or quarterly GST turnover compared with the same period 12 months prior.
A 30 per cent decline for businesses with a GST turnover of $1 billion or less is required to meet the test. Check your business’s eligibility using these five steps: https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper-tests/Applying-the-turnover-test/?page=2#Basic_test
Employee Eligibility
Your employee/s is eligible to receive a JobKeeper payment if they:
- Are a current full-time, fixed part-time or long-term casual employee of your business;
- Were an employee of your business for at least 12 months at 1 March 2020;
- Were aged 18 years or older at 1 March 2020;
- Were an Australian citizen or resident at 1 March 2020; and
- Who agree to be nominated by your business.
- They were employed by your business after 1 March 2020;
- They had ceased to be employed by your business at 1 March 2020; or
- They were nominated by another employer.
From June 2020, you are required to complete a business monthly declaration to keep claiming JobKeeper payments. For each reported month, confirming your eligible employees, your GST turnover and projected GST turnover for the following month will be necessary for you to continue to receive JobKeeper. This information is used only to ascertain the effect the JobKeeper Payment scheme has on your business.
Seek help from your professional financial adviser who can lodge your business monthly declaration on your behalf.
Important – Wages Declaration
Remember to declare actual wages, exclusive of any JobKeeper payments, accurately:
| Scenario | Worker “in hibernation” and receiving JobKeeper Allowance ($1,500) only | Worker working and earning more than just the JobKeeper Allowance | Worker working and earning only the JobKeeper Allowance | Worker at work and earning less than the JobKeeper Allowance (but their pay is increased to $1,500 under JobKeeper) |
| Example | Worker earns no wages | Workers earns $2,000 per fortnight (including JobKeeper subsidy) | Worker only earns JobKeeper Allowance | Worker earns $500 per fortnight but receives $1,500 in line with the JobKeeper Allowance |
| What do you declare? | Nil declarable as wages | $2,000 declarable as wages | $1,500 declarable as wages | $500 declarable as wages |
Source: We're here to support you during COVID19 and beyond.pdf
How can YML help?
We hope that this guide helps you to access Workers Compensation and JobKeeper Payment scheme independently if that is your preference. Alternatively, please talk to our Accountants today if you would like to engage YML Chartered Accountants to manage the these processes on your behalf. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.
COVID-19 – Travel Bans and Exemptions
In March 2020, due to the global COVID-19 pandemic, Australia’s international border was closed. A blanket travel ban was sanctioned and only those people – whether non-citizens, citizens or others – with permission to travel either in or out of Australia have been allowed to do so.
First, travel bans are in place. How do they affect you?
Entering Australia – Travel Ban – Australian Citizens and Residents
If you are an Australian citizen or a permanent resident (or a family member of either) or if you are a New Zealand citizen whose usual residence is in Australia, you may enter Australia from overseas.
Who is deemed to be a ‘family member’?
An immediate family member is a spouse, a de-facto partner, a dependent child or a legal guardian of a child.
Upon arrival in Australia, all travellers must spend 14 days in a designated place (such us a port-of-arrival hotel) under quarantine.
Entering Australia – Travel Ban – Non-citizens
If you are a non-citizen of Australia, over recent months you have been encouraged to leave Australia and return to your place of residence overseas.
Overseas travellers who wish to apply for an Australian visa to come to Australia are urged to reconsider at this time, but any online visa applications will be processed in due course, with consideration first being given to those persons requiring urgent travel. Currently, eligible persons with travel exemptions are being prioritised to receive visas.
Application Processing Delay
Generally, applications might require more time for lodgement and processing. Medical testing, English-language testing and paper lodgements are just some of the services disrupted by the pandemic. YML Migration can help you prepare your application.
Partner (subclasses 100, 309, 801, 820) and Child (subclasses 101, 102, 445) visa holders may enter Australia without requesting an exemption.
Currently, Prospective Marriage (subclass 300) visa holders are not permitted to enter Australia.
Leaving Australia – Travel Ban – Australian Citizens and Residents
If you are an Australian citizen or a permanent resident, you may not leave Australia unless you have an exemption.
Some of the reasons you may leave Australia include:
- To provide aid in response to the COVID-19 pandemic;
- To support critical industries and/or business;
- To receive urgent medical treatment available exclusively overseas;
- To undertake urgent and unavoidable personal business overseas;
- To visit overseas family on compassionate grounds.
These reasons are carefully scrutinised and assessed on an individual basis. A high number of requests for travel exemptions have been denied despite what might seem to be compelling and/or compassionate factors.
In support of your online application for an exemption, you must compile evidence that you have reasonable cause for you to travel outside of Australia during the pandemic.
YML Migration can assist you with your collation of the necessary evidence. All supporting documentation must be in English and you should apply at least one week prior to your need to leave Australia.
How can YML help?
Talk to our Migration Agents today to see how YML Migration can assist you with your travel visa requirements. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.
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.
- Click on the link below to engage us and provide us with your bank account details
If you require further information, please see the link below.
https://www.business.gov.au/Grants-and-Programs/Small-Business-COVID19-Support-Grant-NSW
How can YML help?
By completing the link provided above you are assured that YML will manage the process. If you have any questions please contact YML Group today on (02) 8383 4400, or by visiting the Contact Us page on our website.
SMSF – Would it suit you?
Managing one’s own private superannuation fund (SMSF) may appeal to those individuals with at least $200,000 in superannuation, who have the know-how to make investment decisions and who wish to be more directly involved with investing their life savings. A SMSF differs from a professionally managed industry fund because you, as trustee, are responsible for making all the investment decisions.
There are benefits to having control over your own retirement finances, including being able to understand your investments, choosing a wider range of investments that are accessible to SMSFs, maximising your SMSF’s tax position and reducing costs to manage your SMSF.
So, you have decided to manage your own SMSF…
You have choices. You either engage a financial adviser and work with them to decide what investments your SMSF should hold or you make all the decisions on your own. An adviser may help you articulate your financial goals and assist in formulating an appropriate investment strategy for your funds. Once invested, your portfolio needs ongoing management and reviewing to ensure it remains relevant to market conditions and to your goals. For a SMSF to be compliant, you will be required to keep records of all transactions and accounting matters.
Investments
You have a wider choice of investments under a SMSF. For example, you might invest in areas you already know well, such as direct shares and personal assets, such as artworks and property. Property is a key investment consideration for SMSF trustees because business owners may invest in their premises through their SMSFs, enabling them to lease those premises back to their businesses and thereby generate income and release capital at the same time.
Compared with a traditional industry fund, a SMSF may also borrow money to invest, giving you more flexibility. Rules allowing the borrowing of money by SMSFs mean more diversity of investments – earlier in a lifetime or greater in initial value – is possible with a SMSF.
Taxation
You could benefit from a material impact on your total retirement finances by exploring and taking advantage of a myriad of tax strategies specific to SMSFs.
You, with your financial adviser, can design your SMSF to benefit from tax efficiencies, such as interest deductions from borrowing money; tax-free thresholds in the SMSF Pension Phase; asset segregation inside and outside of your SMSF for a balance that gives you possible access to benefits like the Commonwealth Seniors Healthcare Card or even some Aged Pension.
Costs
Having your own SMSF means you can cut investment costs, especially when transitioning from Accumulation Phase to Pension Phase because you will not need to sell down your assets which invariably incur selling fees and/or taxes. Instead, you may more simply retain your investments upon retirement and enter a Transition to Retirement Income Stream (TRIS).
There might, however, be costs associated with managing your SMSF, such as costs for appropriate insurances, accounting, auditing and financial advice. Your accounting and administration teams will also play a key role in ensuring compliance and legal requirements of an SMSF are met.
Benefits of a SMSF…
Now, you can see the possible benefits of managing your own SMSF are more:
- Control of your assets and investment outcomes
- Freedom to design its structure and develop its strategy
- Tax-efficiencies
- Cost-effectiveness
- Seamless transition to retirement phase
- Flexibility to pass on wealth
How can YML help?
Talk to our YML Super Solutions Team today to see how YML Group can assist you with your SMSF. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.
MyGov – What is it and how do you apply?
MyGov is an online application that provides a simple and secure link to the Australian Government’s services. You will need only one login and one password to access numerous government services including Centrelink and the Australian Taxation Office (ATO).
During the economic downturn caused by the COVID-19 pandemic, many business owners, employers and employees are finding themselves in an unprecedented predicament of fewer or no customers, temporary closure of a business or without a job at all.
If you are one of these people and are seeking to obtain critical funding from the Government’s COVID-19 stimulus packages, you will need to create a MyGov account.
Opening a MyGov account
First, open the MyGov webpage – www.my.gov.au – and press Create Account. After reading and agreeing to Terms of use, enter your email address. MyGov will send a code to your email address. Enter the code, enter your mobile phone number and, finally, create a password and three personal security questions and answers.
| How to open a MyGov account | |
| 1. Press Create Account | |
| 2. Read Terms of use | Agree to Terms of use |
| 3. Enter an email | Enter your email address |
| 4. Enter code | Enter code sent to your email |
| 5. Enter your mobile | Enter your mobile number |
| 6. Create password | Create a password |
| 7. Create secret questions 1-3 | Create secret questions and answers |
Your MyGov account is now ready for you to link government services that you will use.
Already have a MyGov account?
If you already have a MyGov account, check that you also have a Centrelink Customer Reference Number (CRN), so that payments can be made to you.
Requesting a Centrelink CRN
First, sign in to your MyGov account, then select I need a CRN. You will be asked to enter your identity details – from any, or all, of the following: passport, birth certificate, Australian citizenship certificate, Australian visa, driver’s licence and/or other documents. You will be asked to enter your Medicare details and other personal information.
Once you receive a CRN, the Centrelink online service will then be linked directly to your MyGov account.
Jobseeker Payment (formerly Newstart Allowance)
If you find yourself without work or your work hours have been reduced during the COVID-19 pandemic, then using your MyGov online account is the easiest way to apply for the Jobseeker Payment.
Log in to your MyGov online account, go to Centrelink, select Payments and Claims, then Claims and then Make a Claim – Get Started.
You will need a letter from your employer confirming that you have reduced working hours if this is the case. Otherwise, you will be asked to provide supporting documents during the Jobseeker Payment claim process. These supporting documents will vary depending on your personal unemployment circumstances, but they can be efficiently uploaded to Centrelink via your MyGov online account.
Lastly, a phone appointment will be made with Centrelink and when Centrelink calls you – from a private number, you will be able to finalise your claim.
If your claim is approved, reporting your work activity and any earnings to Centrelink every two weeks via your MyGov online account may be required.
There are many people during this crisis who will access Centrelink via MyGov for the first time in their lives. It can be frustrating, but with some guidance here and YML Group able to help you navigate your way, helping your business and/or your employees to survive this difficult time is achievable.
How can YML help?
We hope that this guide helps you to access the government incentives independently if that is your preference. Alternatively, please talk to our Accountants today if you would like to engage YML Chartered Accountants to manage the government incentive processes on your behalf. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.
COVID-19 – Rent Moratorium + Financial Support
For a period of six months from 15 April 2020, the NSW Government has introduced an interim moratorium on evictions of tenants by landlords who are looking to evict due to rental arrears. Conversely, in support of landlords, the NSW Government is offering some financial relief as outlined in new legislation.
The COVID-19 Omnibus (Emergency Measures) Act 2020 contains the interim laws which apply for six months from 29 March 2020. Combined with the Residential Tenancies Act 1997, landlords and tenants are obliged to comply with and work within new parameters designed to brace the rental market during the COVID-19 pandemic.
Residential Landlords – Financial Support Package
The NSW Government has devised financial support for eligible residential landlords who are experiencing financial hardship.
A Land Tax concession is part of the NSW Government’s financial support package. A Land Tax waiver or a rebate of up to 25% of land tax (Jan – Dec 2020 year) is available to eligible landlords and if these savings are then passed on to those tenants experiencing financial hardship of at least 25% income loss.
If you would like YML Group to manage the Land Tax reduction application process for you, please do the following:
Click on the link below to engage us and provide us with your bank account details: https://app.hellosign.com/s/16cLMkVc
Last month, the NSW Upper House proposed an amendment that would see landlords receive up to $2500 per tenancy. This funding would be required to be passed on to tenants as rent reductions.
To be eligible for the $2500 funding, a landlord would need to provide evidence that a tenant has lost at least 25% of their income, has no more than $5000 in savings and pays at least 30% of their income towards rent.
Moratorium on Evictions
Landlords are temporarily banned from terminating a lease or applying for eviction orders due to rental arrears if their tenants are struggling financially to pay rent for reasons relating to the COVID-19 pandemic.
The moratorium is for 60 days from 15 April 2020, during which time a landlord is required to negotiate – in good faith – a rent relief agreement with a tenant. If, after 60 days, a tenant is still unable to meet his/her rent obligation, then a landlord may choose to issue a termination notice or seek an eviction order from the NSW Civil and Administrative Tribunal.
Rent Negotiations in Good Faith
A moratorium on evictions allows time for tenants to receive any government financial support they may be entitled to receive, as well as helping to prevent the spread of the COVID-19 virus by enabling tenants to remain in place. Therefore, NSW Fair Trading has increased funding to facilitate mediation between landlords and tenants, where needed, at no cost to either party.
A rent relief agreement between a landlord and a tenant may be made upon a tenant first providing evidence of a loss of at least 25% of their income due to COVID-19 factors, such as a job termination or reduced hours of work.
Rent Relief Agreement
A rent relief agreement should be made in writing and signed by both the landlord and the tenant. Any temporary agreement made between a landlord and a tenant may consider:
- Any current rent arrears
- A reduction in rent, OR
- A waiver of rent,
- A repayment plan, as agreed.
Tenancy Terminations
If, or when, the time comes that a landlord finds that themselves in a position to seek termination of a lease, there are numerous reasons to do so. These can be seen on a flowchart provided by NSW Fair Trading
To view the various types of tenancy termination, go to:
https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0009/818802/Flowchart-for-landlords-termination-of-tenancy-options.pdf
Next Steps
It is important to obtain accurate information about the COVID-19 rental property changes in relation to your individual mortgage and rental property circumstances. We at YML Group – at the forefront of the latest related news and regulations – can help assess your mortgages and put you in an optimum financial position during the COVID-19 pandemic.
How can YML help?
Talk to our 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.
