2020-2021 Federal Budget delayed until October

The release of the Federal Budget has been postponed from its traditional date in May until 6 October. We will keep you advised of any changes that may impact you or your business when this is released.

Company Tax Rate

The company tax rate for small companies with turnover less than $50 million remains at 27.5% for the 2020 financial year. This rate is scheduled to reduce to 26% for the 2021 financial year.

Jobkeeper Payments

At present, JobKeeper is set to continue until 27 September 2020. It’s been a complicated process due to government regulations, so if you have any questions please contact your advisor to discuss.

 

SUPERANNUATION

  • Superannuation Guarantee Amnesty

If you have any outstanding superannuation owing to employees for periods up until 31 March 2018, there is a provision that will allow you to disclose and pay your employees without penalties and claim a deduction for the superannuation that you wouldn’t normally receive. You will need to disclose and pay the superannuation owing before 7 September 2020 to access these benefits.

  • Employees Superannuation – June 2020 Quarter

To claim a deduction for employee superannuation in this financial year, you should start making the payments now! There have been delays with processing payments to clearing houses, with some taking up to two weeks. The employee’s super funds need to receive the payment before 30 June 2020 to be eligible for a deduction.

Any superannuation paid after 30 June must be received by the funds by 28th July 2020.

  • Other Superannuation Contributions

If you plan on making any other superannuation contributions for directors or employees, they need to be paid as soon as possible. Before you make any additional payments, please contact us.

  • Early access to Superannuation

Have you heard about the government’s early access to superannuation in response to COVID-19? Please contact us before making any decisions about accessing your super or making any recontributions.

 

INSTANT ASSET WRITE-OFF FOR SMALL BUSINESS

Are there any assets you were thinking of investing in? There is currently an opportunity to claim an immediate deduction for some assets costing less than $150,000.

There are some other matters to consider before you do this, please contact us if you would like more information.

 

TOP TAX TIPS FOR BUSINESS

Do any of the below apply to your business? If so, contact to us to talk about utilising some potential deductions in this financial year.

  • Do you have stock or merchandise on hand? If so, you will need to undertake a stocktake at 30 June 2020. Contact us for an explanation on how to do this.
  • Do you have any bad debts that you don’t expect to recover?
  • Can you prepay any expenses such as rent or insurance?
  • Can you bring forward any other expenses (eg. repairs, donations) that you were planning on making next financial year?

 

TOP TAX TIPS FOR SOLE TRADERS AND INDIVIDUALS

  • Working from home

From 1 March 2020 until at least 30 June 2020, you can claim 80 cents for each hour worked. Remember to keep a record of the hours you have worked at home such as a diary or timesheet.

  • Use your car for work, but don’t keep a log book?

It is possible to claim up to 5,000 kms at a rate of 72 cents per km for the 2020 financial year.

  • Travel expenses

Generally, you need to keep a travel diary if you travel away from home for six or more nights in a row to claim a deduction for your expenses. You are required to keep receipts for all work-related travel, except in some circumstances where you are employed and receive a travel allowance.

 

APRA AMCOS Royalties 

Any APRA AMCOS Royalties need to be included in your individual tax return. Foreign withholding tax will need to be assessed on an individual basis to see if a tax offset is available.

Study Loan Repayment Threshold

If you have study and training loans (HELP, VSL, SFSS, SSL, ABSTUDY SSL and TSL), the 2019-2020 compulsory repayment threshold is $45,881.