Category: Newsletters

Economic Stimulus Package Updates

1. Small Business Grant Applications

    To be eligible, businesses will need to:

Applications for a small business grant of up to $10,000 are now available through Service NSW and will remain open until 1 June 2020.

If you would like YML to manage the Business Grant application 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/Ec6LMXZA

2. JobKeeper Extended Dates

The ATO has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.

If you enrol by 31 May 2020, you will still be able to claim for the JobKeeper fortnights ending in April and May, provided you meet all the eligibility requirements for each for those fortnights. This includes having paid your employees by the appropriate date for each fortnight.

For the first two fortnights (30 March – 12 April, 13 April – 26 April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by 8 May 2020. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.

If you would like YML to manage the JobKeeper Incentive process for you, please do the following urgently:

  1. Click on the link below to engage us and provide us with your bank account details

    2. https://app.hellosign.com/s/JTYX1jRe

  1. Click the link below if you are a business owner (and not an employee) in order for you to receive JobKeeper

    2. https://app.hellosign.com/s/Hu4BQXtt

  1. 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)

    2. https://app.hellosign.com/s/JhE06wTy

3. Land Tax Support Package

The NSW Government is introducing measures to help commercial and residential landlords manage their rental properties.

The support package includes a reduction of up to 25% of the land tax payable on a parcel of land in the 2020 land tax year. It is available when: Financial distress is considered to be: To be eligible for the land tax support package, you must have a land tax liability in 2020.

You must also meet the requirements outlined in the support package, namely:
How to apply:

Revenue NSW are currently streamlining the application process which will soon be available on the Revenue NSW website.

Supporting documents may include BAS statements, or a letter from an accountant.

Eligible landowners will be able to apply for a land tax reduction via refund. The amount of refund provided will be up to 25 per cent of a landlord’s 2020 land tax liability.

If you would like YML 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

4. Superannuation Minimum Pension Requirements

For many retirees, the significant losses in financial markets as a result of the COVID-19 crisis are having a negative effect on the account balance of their superannuation pension or annuity.

To assist retirees, the Government has reduced the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50 per cent in the 2019-20 and the 2020-21 financial years.

Superannuation and annuity providers calculate the minimum annual payment required at 1 July each year, based on the account balance of the member or annuitant. The 50 per cent reduction will apply to the calculated minimum annual payment.

Example

Robert is 67 years of age. At 1 July 2019, Robert’s account based pension balance was $480,000. Robert’s minimum annual payment was calculated at

5% (the percentage applicable to his age) of his pension balance, which is $24,000. Following the law change, Robert’s required annual minimum pension payment for 2019-20 is $12,000.

Please note that If Robert has already withdrawn more than $12,000 for 2019-20, he is not able to put the amount above $12,000 back into his superannuation account unless he’s eligible to make superannuation contributions and subject to any other rules or limits such as contribution caps.

How can YML help?

By completing the links provided above you are assured that YML will manage the process.  If you have question please contact YML Group today on (02) 8383 4400, or by visiting the Contact Us page on our website.

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:


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:

In order to take advantage of the SG amnesty, you will calculate the amount of SG payable (shortfall plus nominal interest) and prepare and lodge with the ATO a SG Amnesty payment form. Furthermore, you will pay the outstanding amount within the deadline.

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:

  1. Click on the link below to engage us and provide us with your bank account details

    2. https://app.hellosign.com/s/JTYX1jRe

  1. AND Click the link below if you are a business owner (and not an employee) in order for you to receive JobKeeper

    2. https://app.hellosign.com/s/Hu4BQXtt

  1. 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)

    2. 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:


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.

Superannuation and Pension Payment Changes

To apply for early release of your super, you must satisfy any one or more of the following requirements:


How to Apply


Temporary Reduction of Minimum Pension Payments

To provide retirees with more flexibility in managing their retirement incomes, the Government has announced it is reducing the minimum pension payment requirement for account-based pensions and similar products by 50% in both 2019-20 and 2020-21.

All account-based pension holders are eligible. To request to reduce the amount of your pension payment, you will need to get in touch with us so we can check with your respected superannuation provider about their processes.

The amount by which you can reduce your pension payment will depend on your age:

Age Minimum annual pension payments New minimum annual pension payments for 2019-20 and 2020 -21
Under 65 4% 2%
65 – 74 5% 2.5%
75 - 79 6% 3%
80 - 84 7% 3.5%
85 - 89 9% 4.5%
90 - 94 11% 5.5%
95 + 14% 7%


Self-Managed Super Funds with Direct Property

The ATO has announced that it will allow SMSFs that have a lease agreement in place with a related-party business tenant to temporarily reduce rent due to the business and economic impact of Coronavirus / COVID-19.

The following has been provided from the ATO on their website in regards to SMSF Rent Relief COVID-19 Temporarily Reducing Rent:

Question: My SMSF owns real property and wants to give my tenant – who a related party is – a reduction in rent because of the financial impacts of the COVID-19. Charging a related party, a price that is less than market value is usually a contravention. Given the impacts of the COVID-19, will the ATO act if I do this?

Answer: Some landlords are giving their tenants a reduction in or waiver of rent because of the financial impacts of the COVID-19 and we understand that you may wish to do so as well. Our compliance approach for the 2019–20 and 2020–21 financial years is that we will not act where an SMSF gives a tenant – who is also a related party – a temporary rent reduction during this period.

We understand that during the extreme business and economic conditions relating to COVID-19, many businesses would have already stopped paying their SMSF landlord rental under their current lease agreement to help ensure their survival of their business.  This announcement on the ATOs approach to SMSF rent relief is welcomed and provide some minor, but potentially important relief for SMSFs trustees that have a rental agreement in place with a related party business or company.

How can YML help?

Talk to our YML Super Solutions 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

Economic Stimulus Package – JobKeeper Payment

Use the link to register your interest now. The payments do not start until 01/05/20 but they will be backdated to 30/03/20 and will last for up to 6 months. Payment from the Government to your business is $1,500 per fortnight per eligible employee for you to keep the employee employed (even if you have to stand them down). This is only for full time, part-time, sole trader and casuals (that have been employed for 12 months).

Note that the JobKeeper Payment is more than the JobSeeker Payment that the employee would need to apply for if you needed to terminate the employee.

For more detailed information, please refer to JobKeeper Payments – Information for Employers.

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.

Annualised Salaries – New Rules from 1 March 2020

The Fair Work Commission earlier this year – on 12 February 2020 – announced its new determinations for annualised salaries or annualised wage arrangements concerning a number of awards. New rules came in to effect on 1 March 2020 and started from the first full pay period thereafter.

An annual salary must at least cover a full-time employee’s minimum pay entitlements under an industry award and meet the National Employment Standards (NES) – the 10 minimum entitlements that must be provided to all employees. The onus is on employers to ensure that full-time employees receive an annual salary no less than they would be paid under an award.

Therefore, an employer and an employee may agree that an annual salary covers such entitlements as: Minimum weekly wages, Penalties, Overtime, Allowances and Annual Leave Loading.

An annual salary agreement should be outlined and the specifics detailed in writing and this written document copied, signed and kept by both employer and employee. The Fair Work Commission offers a template for use by employers – LINK TO PDF ATTACHMENT

Furthermore, employees must sign their acknowledgement of hours worked, start/finish times and breaks taken. It is important that employers create a record, either written and/or digital, for each pay cycle.

An employee’s annual salary must be reconciled: every 12 months from commencement, as well as when an arrangement ends or when an employee’s employment terminates.

Summary of Changes by Category

    Category 1
    Category 2
    Category 3
    Employee Agreement – No
    Employee Agreement – Yes
    Employee Agreement – Yes
    Annual Wage Calculation – Reference to Overtime and Penalty Rates
    Annual Wage Calculation – Reference to Overtime and Penalty Rates
    Annual Wage Calculation – Additional % as a Minimum

Awards impacted by New Rules

Note, for best practice, it is critical that employers read the annual wage arrangement clause pertaining to each award as each award has its own criteria.

Category 1 – Effective date 1 March 2020


Category 2 – Effective date 1 March 2020


Category 3 – Effective date delayed pending further submissions


How can YML help?

Talk to our Accountants today to see how YML Chartered Accountants can assist you with your employee salary agreements. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.

FBT 2020 – What do you need to consider?

The FBT year in Australia is from 1 April and ending 31 March the following year, so now is the time to ensure that you are up-to-date with the latest FBT developments in the areas of focus for the ATO.

For the FBT year ended 31 March 2020, the FBT rate remains at 47% in line with last year’s FBT rate.

FBT applies to benefits, given to employees in lieu of or in addition to salary or wages, received and this tax is paid directly to the ATO by employers. Benefits received may include such items as vehicles, car parking, housing and private loans.

The ATO has identified two concerns - employers’ failure to identify and report FBT on qualifying items and employers’ incorrect application of exemption provisions when reporting taxable value on items – in areas of concern for the ATO. Let’s delve further…

Where an employer is required to lodge a FBT return, what do you need to know about:

FBT Rebate?

Some employers claim a FBT rebate despite being ineligible to do so. You need to check that you are a rebatable employer and if you are not, then you should ensure you are eligible to receive a FBT rebate before making a claim.

Employee Contributions?

To ensure that an employer reports employee contributions as income on their income tax return and does not overstate the employee contribution amount in order to reduce an FBT liability, the ATO focuses on finding accurate declarations on both the FBT return and the employer’s income tax return.

Motor Vehicles?

It is necessary for an employer to verify that a FBT exemption applies to the provision of a motor vehicle to an employee for private use. In addition to supplying this verification to the ATO, the ATO is looking for an employer to keep sufficient records to support an exemption.

An employer will need to look carefully at the complex rules of FBT car parking (slight increase in car parking threshold 2019) and will need to be aware of the Practical Compliance Guideline 2018/3, applicable to car and residual benefits claimed in 2020 and later FBT years. If an employer provides an employee with an eligible vehicle to perform work duties, then this guideline may be applicable.

 Living Away From Home Allowance (LAFHA)?

An employer pays a LAFHA to an employee to compensate an employee for additional expenses incurred and for the fact of being away from home whilst employment duties require an employee to live away from their usual residence.

It is important to only claim FBT for eligible employees and to obtain declarations from those eligible employees. Claiming for invalid circumstances or keeping insufficient records of the accommodation and meal components is also closely looked at by the ATO.

The ATO’s LAFHA reasonable total food and drink expenditure for one adult in Australia increased in 2019 by just under 7.5% from 2018. It would behove an employer to check the ATO’s LAFHA guidelines for 2020.

It pays to understand how FBT applies in these areas. To minimise your FBT liability, at YML Group we can prepare and lodge your FBT return and/or calculate any employee contribution.

Our fee for the preparation and lodgment of an FBT return is from $550 + GST and for the calculation of an employee contribution is $270 + GST per item.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with FBT. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.