In this Sky Update, we bring you all the latest tax news along with some other items that may pique your interest.
JobKeeper Key Dates
Businesses who are participating in the first JobKeeper extension period that concludes on the 3rd of January can submit their monthly declaration from the 4th of January.
Ordinarily, the monthly declaration needs to be submitted by the 14th of the month. However, due to the holiday period, that due date has been extended to the 28th of January.
Additionally, those businesses wishing to participate in the second JobKeeper extension from the 4th of January to the 28th of March must test their eligibility and meet the wage condition by the 31st of January.
In assessing eligibility, businesses will need to test the decline in turnover for the quarter ending the 31st of December 2020 to determine whether it exceeds the relevant threshold, being:
- 50% for businesses with turnover in excess of $1b;
- 15% for ACNC registered charities; and
- 30% for all other businesses.
Businesses should also be mindful that the fortnightly payment rates in the second extension period will be dropping to:
- $1,000 for Tier 1 employees; and
- $650 for Tier 2 employees.
If you need assistance to test your businesses eligibility for the second extension period, please get in touch.
JobMaker Hiring Credit
In last month’s SkyUpdate we included a status update on the JobMaker Hiring Credit scheme that was announced in the October Federal Budget.
Under the JobMaker Hiring Credit scheme, employers will receive a credit when they create new jobs and hire young people who have been receiving JobSeeker income support payments.
The official scheme rules have now been finalised and are included in Part 3 of the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020.
Businesses wishing to participate in the scheme can now establish their eligibility and register with the ATO.
If you need assistance to assess eligibility or to register, please get in touch.
Fair Work Act Amendments
On the 9th of December, the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020 was introduced into the House of Representatives.
One of the most notable items in the Bill, is a statutory definition of a casual employee.
The intention is to provide greater clarity for employers as to when an employee will be considered casual in order to avoid unintended outcomes.
This will be welcome news for many employers, particularly those in the retail, tourism and hospitality industries who have traditionally had higher levels of casual employment.
Should the amendments pass into law, it will eliminate the uncertainty created by the decision in WorkPac Pty Ltd v Rossato  FCAFC 84 earlier on in the year.
The Bill has been referred to the Senate Education and Employment Legislation Committee which is due to report on the 12th of March.
We will keep a close eye on the Bill and provide updates as it moves through the legislative process.
In the meantime, please get in touch if you have any questions about the use of casual employees in your business.
We wish to take this opportunity to bid a fond farewell to Tony Smith who is moving on to bigger and better things in sunny Queensland with his family early in the new year.
First they take the AFL Grand Final and now Tony!
Tony is a top-notch accountant and all-round nice guy. Those who know him know that he works tirelessly to support clients and colleagues alike.
Whilst Tony will be greatly missed, we wish him the very best for his next chapter in the sunshine state.
We are signing-off on 2020 on the 22nd of December and will be back in the office after a short break on Monday the 4th of January.
We take this opportunity to wish you all the best for a safe and relaxing holiday period.
We also wish to extend our gratitude to all the people in the retail, tourism and hospitality industries who work hard to make the festive season an enjoyable time.
Quote of the Month
As 2020 draws to a close, many of us will be taking some time to reflect of the year that was and what lies ahead.
Those that are inclined may also be starting to turn their mind to new year’s resolutions.
If you are in need of some inspiration, you can’t go past Winston Churchill who said “we make a living by what we get, but we make a life by what we give.”
We hope you all get an opportunity to contemplate what really matters to you so that you can start 2021 focused on building your best life.
Sky Accountants Ballarat
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437