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HomeBuilder - Further COVID-19 Stimulus Measures

HomeBuilder - what is it and who is eligible? 

The Government has announced the $680m HomeBuilder grant.  Administered through State and Territory governments, grants of $25,000 are available to individual residential home builders and renovators.  There are some quirks to the grant for both individuals and the building and construction industry.  Please read our summary for a quick rundown:

 HomeBuilder 

Further information can be found here:

                                                

Restrictions Easing and End of Financial Year

1 June 2020 Restrictions Eased and the End-of-Year Approaching


Firstly - the team here at Davies, Thompson & Wright haven't stopped working!  We are here to service our clients as professionally as always, and we continue to take our client's health and well-being seriously.  Now that restrictions have started to ease we will observe the following:

From 1 June 2020

  • Our doors will be open again  for document drop off and document signing only
  • Face to face meeting times to sign documents will be limited to 15 minutes
  • Maximum two people in reception at any one time in addition to our staff

From 20 July 2020

  • Commencement of 2020  Income Tax Returns - documents can be dropped off or sent via email 

Everyday

As always, our staff are happy to assist you via telephone and email every weekday. Please don't hesitate to contact our office on 6543 2766.


JobKeeper

The $1,500 JobKeeper Subsidy

Valued clients , JobKeeper Subsidy is here and the time frame to claim for April 2020 is very short and requires your immediate attention.  

Following is a basic summary of the Government's new JobKeeper scheme.  We urge you to consider carefully if this is applicable to your business.  

Both the employer and each employee are responsible for assessing their eligibility before applying, with written supporting evidence.  It is vital that each employee understands they can only claim from one employer as the ATO will not treat double-dipping lightly.  If any overclaim occurs, repayment plus interest and penalties may apply.

The scheme extends to persons actively engaged in a business through a sole trader, partnership, company or trust – but not employed.  This claim is limited to only one working owner in a partnership, company or trust.  The same business revenue reduction test (down 30%) applies.  This area is still being finalised.    

As always we are here to assist you, so please contact us should you wish to discuss your individual situation, including the 30% decline in turnover required to qualify.

Steps required:

1.     Set up a MyGovID to access your ATO Business Portal (if you have not already done so) – this will allow you to electronically register and report.  ATO Setting up your MyGovID and Business Portal

1.     Establish your eligibility as an employer.  You MUST calculate a 30% downturn in your GST reportable turnover for one of the following periods:

  • March 2020 compared to March 2019 
  • April 2020 compared to April 2019 
  • Apr-Jun 2020 quarter compared to Apr-Jun 2019 quarter (projected turnover based on current circumstances)

This is a once-off test, once eligibility is established you will not need to calculate again.  WARNING – you must get this right or risk repaying the ATO plus penalties. ATO Employer Eligibility

3.     Determine eligible employees - ATO Eligible Employees

4.     Provide Nomination Forms to ALL eligible employees and have them signed and returned ASAP – you cannot claim without these. JobKeeper Employee Nomination Form   JobKeeper Employee Nomination Form

5.     REGISTER electronically for JobKeeper via the Business Portal (from 20 April 2020). This is different to the registration of interest you may have already completed.

6.     Ensure all eligible employees (who have accepted nomination) have been paid at least $1,500 for the fortnights ended 12 April 2020 and 26 April 2020.  These payments must have been made NO LATER than 26 April 2020 to qualify for the subsidy.  These payments need to be recorded in your normal payroll system and reported to the ATO via Single Touch Payroll (where applicable).

7.     Apply for the JobKeeper payment on the ATO Business Portal (from 4 May 2020).

8.     Employers MUST then advise all eligible employees IN WRITING that they have been nominated under the JobKeeper scheme.

9.     Ongoing monthly reporting will be required via the Business Portal.

IMPORTANT NOTE: This is a basic summary only.  Each step has rules and regulations, and you are required to keep full documentation and supporting evidence. Links are provided as a reference only and we strongly advise to complete your own review of your individual requirements. 

A full overview is available here: ATO JobKeeper Payment

If you require any assistance with any of the above steps, please contact our office.  It is our intention to assist all our clients as much as possible, so please contact us to discuss your individual situation on 02 65432766.

 

Response to COVID-19

DAVIES THOMPSON & WRIGHT  COVID-19  NOTICE

In response to the current COVID-19 pandemic and in the best interests, health and safety of our valued clients, our employees and their families, from Monday 30 March 2020 access to our office is limited to employees only.  We will still be here, however we are locking the front internal door and placing a stop (phone or email) notice on the door to reduce direct contact with our clients.  If you can contact us by phone or email, please do, we are here to help.

Our aim and focus is still the same - our clients.   Our success is built on the strong individual relationships we maintain with our clients, and to this end we will be working hard to ensure we are across all the government's response to COVID-19 and to pass this information onto our clients.  Our team knows our individual clients, and will endeavour to match the stimulus measures available to each individual situation.  This is changing very rapidly, with new measures being announced almost daily.  For further information please see below, and if you wish to discuss, please don't hesitate to call our office.

Following are links to government websites where a range of up-to-date information and fact sheets are available - these websites are updating daily with the changes available.

If you are affected by Coronavirus we urge you to seek immediate medical assistance.  Further information can be obtained by contacting:

Visit the following sites for information on caring for mental health:

Stay home, stay safe and stay well.  We'll be happy to see you all on the other side.

2019-2020 Bushfire Crisis

As 2020 begins, we hope all our clients have had a safe and happy New Year.

Sadly, we know that many people and communities are, and have been, impacted by the bushfires currently affecting much of Australia. While the crisis has affected us all in some way, our hearts go out to those whose lives and homes have been devastated beyond repair. It is at time like these, we reflect the most important things in our lives are not "things" but family and friends.  From everyone here at the Davies Thompson & Wright team every good wish to you all, and a huge thank you to our firies, our everyday heroes.  If you have been impacted in any way, and there is something we can do to assist, please let us know.  We will endeavour to provide a priority service for those affected by bushfires.

The ATO has also offered support, stating "If you've been impacted by these bushfires, we don't want you to be concerned about your tax affairs. Now is the time for you, your family and community. We'll help you sort out your tax affairs later." 

Automatic ATO Lodgement Deferral: Automatic deferrals have been put in place for both lodgements and payments if your postcode is listed as an affected area.  

Do not be concerned if your postcode does not appear, the tax office will still recognise that you have been impacted.  Let us know and we can assist by contacting them on your behalf. If you are in an area impacted, the automatic deferrals are as follows:

Self-preparers:

  • For quarterly BAS due on 11 November 2019, the new deferred date is 28 January 2020
  • For monthly BAS due 21 November 2019, the new deferred date is 21 January 2020
  • For monthly BAS due 21 December 2019, the new deferred date is 21 January 2020
  • For 2018–19 income tax bills due on 21 November 2019 the new deferred date is 21 January 2020

Tax and BAS Agents

  • For quarterly BAS due on 28 November 2019, the new deferred date is 28 January 2020
  • For monthly BAS due 21 November 2019, the new deferred date is 21 January 2020
  • For monthly BAS due 21 December 2019, the new deferred date is 21 January 2020
Government Assistance: Immediate financial assistance is available from the Department of Human Resources for people who have been impacted.  Refer to the Department of Human Services website for more information:

Mental & Emotional Wellbeing: We all know these types of disasters have ongoing ripple effects into the lives of those both directly and indirectly affected, and their loved ones.  While the adrenaline is running high this may not be as obvious, so we all need to watch out in the many months of recovery we have in front of us. Please take care of yourselves and those around you.  If you are struggling, or know someone who is, there is help available and it is important to seek it:  

2019 Christmas Office Hours


 

Image result for merry christmas clip art       

The team at Davies, Thompson & Wright take this opportunity to thank all our valued clients for your continued support throughout 2019. 

We wish you all a Merry Christmas and a safe and Happy New Year for 2020 - along with some much needed rain!

Our office will close at 5:00 pm Thursday 19 December 2019 and re-open 9:00 am Monday 6 January 2020.  

 

Business & Tax Update - December 2019

Silly season is here, and it seems to be getting more so each year as we are inundated with new trends such as the 'Black Friday' and 'Cyber Monday' sales that go for weeks...  For many Australians, Black Friday is just confusing – shouldn't 'Black Friday' be on Friday 13th? 

Superannuation - are you making sure your payments are made in time to claim them as a tax deduction?  Beware of the trap a lot of business's fall into without knowing...

On a more serious note, those affected by bush fires have been granted an extension of time for lodgement and payment of Activity Statements usually due in November and December 2019.  Check out our update for more information.

Read more about these items and more...

 Business and Tax Update December 2019


Business & Tax Update - November 2019

Can the ATO take money out of your bank account? Following on from the media "Your Right to Know"campaign, we discuss some of the ATO's powers in our November 2019 update.

Capital Gains Tax and the family home: expats and foreign residents in the ATO's sights again.  Read more about the governments plans to remove the main residence exemption for non-residents.  Following from our September update where tax residency does not always align with other residency rules, expats or other non-residents with Australian property should be aware of these proposed changes.

Finally legislation has been passed to close the superannuation loophole preventing employers from claiming any salary sacrifice superannuation as part of their Superannuation Guarantee Contribution commitments.  We provide an update on this welcome rule due to commence July 2020.

Holding vacant land with the intention of building an investment property? Read here for an overview on the changes which will affect 'Mum & Dad' investors from 1 July 2019:

Business and Tax Update November 2019

 

Business & Tax Update - October 2019

Superannuation Guarantee Amnesty - for those employers that are behind in their superannuation guarantee payments, the amnesty legislation is again before parliament. This will give those employers the chance to "self-correct" without facing crippling penalties.  However, be warned, those that do not take advantage of the amnesty to voluntarily disclose short payments or non-payment of superannuation guarantee amounts will face tougher penalties under the proposed new legislation.  Find out more in our October update.

Falling Interest Rates - what does this mean to you?  Economist Emmanuel Calligeris discussed the impact of low interest rates.

Read more here:  Business and Tax Update October 2019

Business & Tax Update - September 2019

The ATO's 'gloves off' approach to overseas income.  Determining your tax residency is not always straight forward, nor is determining the overseas income and assets that need to be reported.  Our September update covers this topic in more detail.

Rental Property Expenses - the tax office's favourite subject and always open to close scrutiny.  Read more here to refresh your memory or learn more about what you can and can't claim.

 Business and Tax Update September 2019

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