Our Blog
#tax2020 - at Davies, Thompson & Wright
Email: tax2020@dtwservices.com.au
Phone: 02 65 43 2766
Mail Us: PO Box 128 Muswellbrook
We know this year has been difficult. Your 2020 tax return doesn't need to be. We'll do your 2020 tax return via email/phone/mail – no visit to our office required*.
*New clients must make a time to come into our Muswellbrook office and provide their identification.
3 Simple Steps - tax2020
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Step 1 Update your Details |
Step 2 Checklist & Info |
Step 3 We Contact You |
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Phone or email our office & update your personal details:
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Read our checklist. When your tax info is ready (check your myGov) ** send your extra information to tax2020@dtwservices.com.au Email, mail or drop it in so we can start work on your tax return.
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Our tax specialists will then be in touch, by phone, to go through your return. We'll send it out for you to review and sign before we lodge. |
tax2020 Checklist for Individuals
Use our tax2020 Individual Tax Return Checklist to determine the extra information we may need to complete your tax return. We will access your information direct from the ATO, however this is not always complete and up-to-date (especially in July and August). So it's always best to send us your original documents to cross-check with.
2020 What's New
NO PAPER COPY of Your PAYG Payment Summary (Employer Group Certificates):
Most employers report your wages information directly to the ATO - by the end of July 2020 via Single Touch Payroll (STP), so your employer is not obliged to give you an end-of-year payment summary. When your end-of-year payment summary is finalised by your employer at the ATO it will be identified as 'Tax ready' in your myGov.
**You should wait until it says 'Tax ready' before asking us to complete your return.
The ATO should send a notification to your myGov inbox when all your income statements are 'Tax ready'.
NO PAPER COPY of Your Annual Health Fund Statement (NIB, BUPA, HCF etc):
Your health fund will automatically send your private health insurance policy info to the ATO in July 2020.
WORKING FROM HOME:
The ATO have a simplified COVID hourly rate method for home office expenses from 1/3/2020. You must keep a record of the number of hours you have worked from home.
Not surprisingly most of the stories in this month's edition are related to COVID-19 and it's financial impact.
- Funding for the arts - the music and performing arts industries and their workers continue to be some of the hardest hit by COVID-19 restrictions. Read more about what help is available to both individuals and organisations.
- ATO's fraud warpath - not surprisingly, with so much government assistance available at the moment the ATO has commenced the weeding out of those who have fraudulently taken advantage of any of the Coronavirus Economic Response Package measures, including those that have entered into schemes to gain access to the stimulus measures. Do not worry though, if you have made a genuine mistake, the ATO has stated if you work with them, they will give you the support you need without needing to repay money or be penalised.
- Minimum wage increases - 2020 wage increases will be rolled out rather than all commence on 1 July 2020. Read more to see where your industry sits in the time line.
- New flexible parental leave payment rules - more flexible arrangements commenced 1 July 2020, so if you're expecting a new addition you can read here how these might change how you return to work.
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:
Further information can be found here:
- Treasury Factsheet
- Media Release - 'HomeBuilder' program to drive economic activity across the residential construction sector
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.
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.
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.
- Government Economic Response to the Coronavirus - general information and updates
- Support for Individuals and Households
- Support for Business
- Supporting the Flow of Credit
If you are affected by Coronavirus we urge you to seek immediate medical assistance. Further information can be obtained by contacting:
- National Coronavirus Helpline – 1800 020 080
- New South Wales - Healthdirect – 1800 022 222
- Online – healthdirect Coronavirus Symptom Checker
Visit the following sites for information on caring for mental health:
- Beyond Blue - Looking after your mental health during the Coronavirus outbreak
- Australian Psychological Society – Tips for coping with Coronavirus anxiety
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.
- ATO Bushfire Information
- ATO Affected Postcode List NSW, other states can also be found on the ATO website.
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
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:
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.
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
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