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WMC Accounting, Geelong, Colac, Bellarine Peninsula
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Past Newsletters

To view our range of archived newsletters click on the links below:

August Newsletter 2014 

July Newsletter 2014

May Newsletter 2014

April Newsletter 2014

March Newsletter 2014

February Newsletter 2014

December Newsletter 2013

November Newsletter 2013

October Newsletter 2013

September Newsletter 2013

August Newsletter 2013

June Newsletter 2013

May Newsletter 2013

April Newsletter 2013

March Newsletter 2013

February Newsletter 2013

January Newsletter 2013 - Not Available

 

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Our 2015 Income Tax Return Checklist is now available on our website. Please click here to download a copy.

If you would like a copy sent to you in the mail, please e-mail us at [email protected] or call us on 03 5222 3200. We'd be happy to send it to you!

Regards
WMC Accounting

Geelong Office
72 - 76 Ryrie Street
Geelong VIC 3220
Ph: 03 5222 3200

Colac Office
90-98 Wallace Street
Colac VIC 3250
Ph: 03 5231 6711

PS. If there are other people you know who would like to subscribe to this newsletter, they can sign up.

If you have received this message in error (presumably someone used your email address to register), please refer to the removal instructions at the bottom of this email.

Our 2016 Income Tax Return Checklist is now available on our website. Please click here to download a copy.

If you would like a copy sent to you in the mail, please e-mail us at [email protected] or call us on 03 5222 3200. We'd be happy to send it to you!

Regards
WMC Accounting

Geelong Office
72 - 76 Ryrie Street
Geelong VIC 3220
Ph: 03 5222 3200

Colac Office
90-98 Wallace Street
Colac VIC 3250
Ph: 03 5231 6711

PS. If there are other people you know who would like to subscribe to this newsletter, they can sign up.

If you have received this message in error (presumably someone used your email address to register), please refer to the removal instructions at the bottom of this email.

Our 2016 Superannuation Fund Checklist is now available on our website. Please click here to download a copy.

If you would like a copy sent to you in the mail, please e-mail us at [email protected] or call us on 03 5222 3200. We'd be happy to send it to you!

THE FUTURE OF SUPERANNUATION ADVICE

You may be aware of the changes taking place in the accounting industry in relation to the provision of Self Managed Superannuation Fund (SMSF) and superannuation advice in future.

As of the 1st of July 2016, we will not be able to legally advise you about SMSFs and superannuation related issues unless we are licensed under an Australian Financial Services (AFS) licence.

Basic questions that will need to be answered under a licence include:

  • How much should I contribute into super?
  • Should I direct some of my company profit to super?
  • When do you think I should start my super pension?
  • What is the best structure to purchase property in my SMSF?

In order to ensure we are meeting our clients' expectations in relation to advice and to maintain our service standards, we have decided to join an AFS licence.

Being authorised under an AFS licence does require us to adjust the way in which we provide our superannuation advice to you:

  • When we provide advice for the first time, we will provide you with a Financial Services Guide (FSG) which we will ask you to sign off.
  • The information that supports our recommendations (your current situation and objectives) will need to be documented and held on file.
  • Any advice given to you will be presented in writing in a document called a Statement of Advice (SOA).  This will also require your sign off.

While these things will change in the delivery of our service, we have worked to ensure that this will have minimal impact on our day-to-day dealings with our clients.

We felt that it was important to communicate these changes so you are aware of what to expect when we next discuss superannuation.

If you wish to discuss the above matter in more detail, please feel free to contact us on 03 5222 3200.

Regards
WMC Accounting

Geelong Office
72 - 76 Ryrie Street
Geelong VIC 3220
Ph: 03 5222 3200

Colac Office
90-98 Wallace Street
Colac VIC 3250
Ph: 03 5231 6711

PS. If there are other people you know who would like to subscribe to this newsletter, they can sign up.

If you have received this message in error (presumably someone used your email address to register), please refer to the removal instructions at the bottom of this email.

We are emailing you in response to the ATO's increased activity with regards Fringe Benefits Tax (FBT) on Motor Vehicles.  We will explain the requirements in greater depth at a later stage individually.  However, due to the reporting period for FBT ending 31 March each year, we ask that you please reply with the following for any vehicles owned within your related business entities and individual names.

There will be quite a lot of vehicles that may be recorded amongst our client base that wont have any FBT liability, however, technically, we still need to identify some records for these vehicles. 

Could you please provide the following for each vehicle as at 31 March 2017:

Basic Car Description/Details:

Registration Number:

Odometer Reading

Again, we reiterate that recording these details does not mean you are liable for FBT.  But, instead helps us comply with the requirements to also avoid FBT.

If you wish to discuss the above matter in more detail, please feel free to contact us on 03 5222 3200.

Regards
WMC Accounting

Geelong Office
72 - 76 Ryrie Street
Geelong VIC 3220
Ph: 03 5222 3200

Colac Office
90-98 Wallace Street
Colac VIC 3250
Ph: 03 5231 6711

If you have received this message in error (presumably someone used your email address to register), please refer to the removal instructions at the bottom of this email.

We are emailing you in response to the ATO's increased activity with regards Fringe Benefits Tax (FBT) on Motor Vehicles.  We will explain the requirements in greater depth at a later stage individually.  However, due to the reporting period for FBT ending 31 March each year, we ask that you please reply with the following for any vehicles owned within your related business entities and individual names.

There will be quite a lot of vehicles that may be recorded amongst our client base that wont have any FBT liability, however, technically, we still need to identify some records for these vehicles. 

Could you please provide the following for each vehicle as at 31 March 2017:

Basic Car Description/Details:

Registration Number:

Odometer Reading

Again, we reiterate that recording these details does not mean you are liable for FBT.  But, instead helps us comply with the requirements to also avoid FBT.

If you wish to discuss the above matter in more detail, please feel free to contact us on 03 5222 3200.

Regards
WMC Accounting

Geelong Office
72 - 76 Ryrie Street
Geelong VIC 3220
Ph: 03 5222 3200

Colac Office
90-98 Wallace Street
Colac VIC 3250
Ph: 03 5231 6711

If you have received this message in error (presumably someone used your email address to register), please refer to the removal instructions at the bottom of this email.

 

Please be aware that users of Docusign may receive an email where the subject reads: Completed *company name* - Accounting Invoice *number* Document Ready for Signature. As we use Docusign for electronic signature some of our clients may receive this email. Please be assured that WMC Accounting has not been hacked and is not associated with the email scam.  

The email contains a link to a downloadable Word Document which is designed to trick the recipient into running what's known as macro-enabled-malware. 

These emails are not associated with DocuSign or WMC Accounting. The emails are going out to users of Docusign services. They originate from a malicious third-party using DocuSign branding in the headers and body of the email. The emails are sent from non-DocuSign-related domains including [email protected]. Legitimate DocuSign signing emails come from @docusign.com or @docusign.net email addresses. You can read updates on the malicious email campaign at DocuSign; https://trust.docusign.com/en-us/personal-safeguards/

Please remember to be particularly cautious if you receive an invitation to sign or view a Document you are not expecting. If you have received a copy of the above email, DO NOT OPEN ANY ATTACHMENTS. Instead, forward the email to [email protected] and then immediately delete the email from your system.

For further advice on how to recognize malicious emails and how to protect yourself you can visit our Trust Center here: https://trust.docusign.com/en-us/personal-safeguards/fraudulent-email-websites/ 

Regards
WMC Accounting

Geelong Office
72 - 76 Ryrie Street
Geelong VIC 3220
Ph: 03 5222 3200

Colac Office
90-98 Wallace Street
Colac VIC 3250
Ph: 03 5231 6711

If you have received this message in error (presumably someone used your email address to register), please refer to the removal instructions at the bottom of this email.

Please be aware that users of Docusign may receive an email where the subject reads: Completed *company name* - Accounting Invoice *number* Document Ready for Signature. As we use Docusign for electronic signature some of our clients may receive this email. Please be assured that WMC Accounting has not been hacked and is not associated with the email scam.  

The email contains a link to a downloadable Word Document which is designed to trick the recipient into running what's known as macro-enabled-malware. 

These emails are not associated with DocuSign or WMC Accounting. The emails are going out to users of Docusign services. They originate from a malicious third-party using DocuSign branding in the headers and body of the email. The emails are sent from non-DocuSign-related domains including [email protected]. Legitimate DocuSign signing emails come from @docusign.com or @docusign.net email addresses. You can read updates on the malicious email campaign at DocuSign; https://trust.docusign.com/en-us/personal-safeguards/

Please remember to be particularly cautious if you receive an invitation to sign or view a Document you are not expecting. If you have received a copy of the above email, DO NOT OPEN ANY ATTACHMENTS. Instead, forward the email to [email protected] and then immediately delete the email from your system.

For further advice on how to recognize malicious emails and how to protect yourself you can visit our Trust Center here: https://trust.docusign.com/en-us/personal-safeguards/fraudulent-email-websites/ 

Regards
WMC Accounting

Geelong Office
72 - 76 Ryrie Street
Geelong VIC 3220
Ph: 03 5222 3200

Colac Office
90-98 Wallace Street
Colac VIC 3250
Ph: 03 5231 6711

If you have received this message in error (presumably someone used your email address to register), please refer to the removal instructions at the bottom of this email.

Click here to view your WMC Accounting Christmas Party Invite.

Our records show you have not set up a login to access your portal. Please respond to this email or send an email to [email protected] requesting a login and a new welcome email will be sent to you with instructions.

Did you know your secure client portal went live in August 2017? The client portal will be used to send electronic correspondence of ATO mail, your tax returns, and if you have a business; financial statements. You can access your documents anytime and share content directly with third parties for example, sharing financial statements and tax returns with your bank if you are seeking a loan.

You can also download our app from Google Playstore or the App Store and access the portal from your smartphone any time.

 

If you have any queries please do not hesitate to contact out client Services Team on 03 5201 1223 or 03 5201 1215.

Regards,
WMC Accounting

 

Effective 3 April 2018, please note our new office hours will be 8.30am to 5.00pm Monday to Thursday and 9.00am to 5.00pm Friday.

Regards,
WMC Accounting

 

Scam Warning – ASIC Business name renewal

Please be on the lookout for a letter that is doing the rounds at the moment. The letter prompts the business owner to renew their business name through a BNrenewal website.

ASIC have confirmed that this correspondence is not from them.

Business Name Renewals get sent from ASIC via email ONLY. ASIC will only issue a renewal notice 30 days before your renewal date (the date your business name was registered). Please be aware of spam emails. If WMC Accounting registered your business name, your renewal notice will come to us. If you registered your business name, the renewal notice will be sent to the email you used when registering your business name. Below is a link with further information regarding spam emails.

http://asic.gov.au/online-services/service-availability/scams-targeting-asic-customers/#warning-signs

Watch out for a third party hard copy letter from BN Renewal. This correspondence is not a renewal notice in accordance with the Business Names Registration Act 2011 by ASIC. BN Renewal will charge you a fee to renew your business name. BN Renewal charge $199 for a 3 year business name renewal. You can renew your business name yourself for $82 (3 year registration).

Please do not hesitate to contact Julie Pante in Corporate Services on 03 5201 1230 in relation to any queries, emails or correspondence you might receive relating to your business or company name.

Regards,
WMC Accounting

 

 

Our 2018 Income Tax Return Checklist is now available on our website. Please click here to download a copy.

If you would like a copy sent to you in the mail, please e-mail us at [email protected] or call us on 03 5222 3200. We'd be happy to send it to you!

Further to our email on 14 June 2018 titled 'Important - Please read if claiming work related deductions', we feel it is timely to share the information the ATO may ask from you if you receive a request for further information. Read the schedule of supporting documentation required. Further details can be found on the ATO's website https://www.ato.gov.au/Individuals/Ind/supporting-documentation/. Please refer to original email for further information. 

Regards
WMC Accounting

Over the years, we have had the pleasure of hosting an annual Christmas mingle for our staff and clients to celebrate the end of the year and great relationships the partners and staff at WMC Accounting have with our clients.

This year, we have decided to pay it forward to those less fortunate and are directing our party funds to help families in the community who are in desperate need of a Christmas blessing.

In 2018, we are supporting the Bethany Giving Tree Appeal and our aim is to help 10 families wake up with the joy of Christmas in their home. Further info can be found at Bethany Giving Tree.

If you would like to get involved by donating gifts, please contact Tracey, Brianna or Kelly on 5222 3200 for more information. The last collection will be on 21 December 2018.

 

 

We wish you all a wonderful festive season.

Over the years, we have had the pleasure of hosting an annual Christmas mingle for our staff and clients to celebrate the end of the year and great relationships the partners and staff at WMC Accounting have with our clients.

This year, we have decided to pay it forward to those less fortunate and are directing our party funds to help families in the community who are in desperate need of a Christmas blessing.

In 2018, we are supporting the Bethany Giving Tree Appeal and our aim is to help 10 families wake up with the joy of Christmas in their home. Further info can be found at Bethany Giving Tree.

If you would like to get involved by donating gifts, please contact Tracey, Brianna or Kelly on 5222 3200 for more information. The last collection will be on 21 December 2018.

 

 

We wish you all a wonderful festive season.

Our 2019 Income Tax Return Checklist is now available on our website. Please click here to download a copy.

If you would like a copy sent to you in the mail, please e-mail us at [email protected] or call us on 03 5222 3200. We'd be happy to send it to you!

Further to increased emphasis by the Australian Taxation Office on work related deductions since 2018, we remind you to read the schedule of supporting documentation required. Further details can be found on the ATO's website https://www.ato.gov.au/Individuals/Ind/supporting-documentation/.  

Regards
WMC Accounting

The Second $66.1 bn Stimulus Package: What You Need To Know

The Government yesterday released a second, far reaching $66.1 bn stimulus package that boosts income support payments, introduces targeted changes to the superannuation rules, provides cash flow support of up to $100,000 for small business employers, and relaxes corporate insolvency laws. 

The stimulus measures are not yet legislated. Parliament will reconvene on Monday 23 March.

The Prime Minister has warned that there are no "quick solutions" and that business should prepare for 6 months of disruption. 

In Summary
Business

  • Tax-free payments up to $100,000 for small business and not-for-profit employers. An increase in the previously announced initial tax-free payments for employers to a maximum of $50,000. In addition to this, a second round of payments will be made up to a maximum of $50,000, accessible from July 2020. 
  • Solvency safety net – temporary 6 month increase to the threshold at which creditors can issue a statutory demand on a company from $2,000 to $20,000, and an increase in the time companies have to respond from 21 days to 6 months. Directors also are provided with temporary relief from personal liability for trading while insolvent for 6 months.
  • Access to working capital – Introduction of a Coronavirus SME guarantee scheme protecting financial institutions by guaranteeing 50% of new loans to SMEs.
  • Sole traders and self-employed eligible for Jobseeker payment – the eligibility criteria to access income support relaxed for the self-employed and sole traders.
  • Temporary relief from some Corporations Act requirements

Individuals

  • Early release of superannuation – individuals in financial distress able to access up to $10,000 of their superannuation in 2019-20, and a further $10,000 in 2020-21. The withdrawals will be tax-free and will not affect Centrelink or Veterans' Affairs payments.
  • Temporary reduction in minimum superannuation draw down rates – superannuation minimum drawdown requirements for account based pensions and similar products reduced by 50% in 2019-20 and 2020-21.
  • Deeming rates reduced – from 1 May, superannuation deeming rates reduced further to a lower rate of 0.25% and upper rate of 2.25%.
  • Supplements increased, access extended and eased – for 6 months from 27 April 2020:
  • A temporary coronavirus supplement of $550 will be paid to existing income support recipients (people will receive their normal payment plus $550 each fortnight for 6 months).
  • A second one-off stimulus payment of $750 will be paid automatically from 13 June 2020 to certain income support recipients (in addition to the payment made from 31 March 2020).
  • Eligibility for access to income support eased to include sole traders and the self-employed, and to those caring for someone infected or in isolation.
  • Waiting periods and assets tests temporarily waived.  
  • Bankruptcy safety net – temporary 6 month increase to the threshold for the minimum amount of debt required for a creditor to initiate bankruptcy proceedings against a debtor from $5,000 to $20,000.

The Government has flagged that additional stimulus packages will be required. 

In detail

Support for business

Tax-free payments up to $100,000 for employers

  • From: 28 April 2020
  • Eligibility: Small and medium business entity employers and not-for-profit entities, with an aggregated annual turnover under $50 million.

The Government has increased the previously announced measures to provide cash flow support to business.

Now, eligible businesses with a turnover of less than $50 million will initially be able to access tax-free cash flow support, with the minimum amount being increased to $10,000 and the maximum amount increased to $50,000 (previously $2,000 to $25,000). However, additional support will be provided in the July – October 2020 period so that eligible entities will receive total minimum support of $20,000 and up to $100,000.

In order for a business to qualify for this support it must have been established prior to 12 March 2020. The rules are more flexible for charities because the Government recognises that new charities might be established in response to the pandemic.

The cash flow support measures will be provided in the form of a credit in the activity statement system. The support will be provided in two phases.

  • The first phase ensures that eligible employers receive a credit equal to 100% of the PAYG amounts withheld from salary and wages paid to employees during the relevant period, up to the maximum amount of $50,000.
  • The second phase ensures that eligible employers receive another series of credits, equal to the credits that were received under the first phase. For example, if a business received $40,000 of credits in the first phase it will receive a further $40,000 of credits in the second phase. These additional credits will be spread over two or four activity statement periods, depending on whether the employer lodges on a quarterly or monthly basis.

If a business pays salary and wages to employees but is not required to withhold any tax then a minimum payment of $10,000 will be made in the first phase and a further payment of $10,000 will be made in the second phase.

The credits are automatically calculated by the ATO and employers will need to lodge an activity statement to trigger the entitlement. If the credit puts the business in a refund position the excess amount will be refunded by the ATO within 14 days.

Businesses that lodge activity statements on a quarterly basis will be eligible to receive credits in the first phase for the quarters ending March 2020 and June 2020. Credits in the second phase will be available for the quarters ending June 2020 and September 2020. The minimum $10,000 payment will be applied to the first lodgement.

Business that lodge on a monthly basis will be eligible for the credits in the first phase for the March 2020, April 2020, May 2020 and June 2020 lodgements. Credits in the second phase will be available for the June 2020, July 2020, August 2020 and September lodgments. The minimum $10,000 payment will be applied to the first lodgement.

Eligibility for the measure will be based on prior year turnover. We will have to wait for the legislation for the finer details.

Not-for-profit employers, including charities, with an aggregated turnover under $50 million will also be able to access the cash flow support.

Solvency safety net

A safety net has been put in place to protect businesses in temporary financial distress as a result of the pandemic by lessening the threat of actions that could unnecessarily push them into insolvency and force the winding up of the business. These include:

  • A temporary 6 month increase to the threshold at which creditors can issue a statutory demand on a company from $2,000 to $20,000.
  • The time a company has to respond to statutory demands will increase from 21 days to 6 months.
  • For 6 months, directors will be provided with temporary relief from personal liability for trading while insolvent.
  • See also bankruptcy safety net below

It will be more important than ever for business to stay on top of their debtors.

Debts incurred will still be payable by the business. Only those debts incurred in the ordinary course of the business will be subject to the safety net measures.

Access to working capital for SMEs – supporting lenders

The Government has announced a Coronavirus SME guarantee scheme that will guarantee 50% of new loans to SMEs up to $20 billion. These loans are new short-term unsecured loans to SMEs.

SMEs with a turnover of up to $50 million will be eligible to receive these loans.

  • The Government will provide eligible lenders with a guarantee for loans with the following terms:
  • Maximum total size of loans of $250,000 per borrower.
  • The loans will be up to three years, with an initial six month repayment holiday.
  • The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.

Loans will be subject to lenders' credit assessment processes with the expectation that lenders will look through the cycle to sensibly take into account the uncertainty of the current economic conditions.

This latest measure builds on the previous initiatives to ensure small business can access capital, including:

Sole traders and self-employed eligible for Jobseeker payment

The eligibility criteria to access income support payments will be relaxed to enable the self-employed and sole traders whose income has been reduced, to access support.

More:

Temporary relief from Corporations Act requirements

The Treasurer has been given a temporary instrument-making power to amend the Corporations Act to provide relief or modifications to specific compliance obligations.

ASIC has announced measures for those companies with a 31 December financial year that need to hold their AGMs by 31 May 2020, providing a two month no action period and enabling hybrid virtual AGMs.

Individuals

Early release of superannuation

From mid-April, individuals in financial distress will be able to access up to $10,000 of their superannuation in 2019-20, and a further $10,000 in 2020-21. The withdrawals will be tax free and will not affect Centrelink or Veterans' Affairs payments.

To be eligible to access your superannuation you need to meet the following requirements:

  • you are unemployed; or
  • you are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or
  • on or after 1 January 2020:
    • you were made redundant; or
    • your working hours were reduced by 20% or more; or
    • if you are a sole trader - your business was suspended or there was a reduction in your turnover of 20% or more.

For those eligible to access their superannuation, you can apply directly to the ATO through the myGov website from mid-April.

More:

Temporary reduction in minimum superannuation draw down rates

Superannuation minimum drawdown requirements for account-based pensions and similar products will be reduced by 50% in 2019-20 and 2020-21.

Age

Default minimum drawdown rates (%)

Reduced rates by 50 per cent for the 2019-20 and 2020-21 income years (%)

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 or more

14

7

 
The upper and lower social security deeming rates will be reduced further. As of 1 May 2020, the upper deeming rate will be 2.25% and the lower deeming rate 0.25%.

Time limited fortnightly $550 'coronavirus supplement'

For the next 6 months, the Government is introducing a new Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients in the eligible payment categories.

The payment will be made to those receiving:

  • Jobseeker payment (and those transitioning to the jobseeker payment)
  • Youth allowance jobseeker
  • Parenting payment
  • Farm household allowance
  • Special benefits recipients

In addition, eligibility to income support payments will be expanded to:

  • Permanent employees who are stood down or lose their job
  • Casual workers
  • Sole traders
  • The self-employed
  • Contract workers who meet the income test

The Government notes that these criteria could include those required to care for someone affected by the Coronavirus.

Asset testing has also been reduced and will be waived for 6 months. Income testing will still apply.

The payment is not available if you have access to any employer entitlements such as annual or sick leave or income protection insurance.

More:

Second $750 payment to households

The Government is now providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders residing in Australia (see the full list here). The payment will be exempt from taxation and will not count as income for the purposes of Social Security, Farm Household Allowance and Veteran payments.

  • Payment 1 from 31 March 2020 (previously announced on 12 March): Available to people who are eligible payment recipients and concession card holders at any time between 12 March 2020 to 13 April 2020;
  • Payment 2 from 13 July 2020: Available to people who are eligible payment recipients and concession card holders on 10 July 2020.

The payments will be made automatically to those that meet the criteria.

More:

Bankruptcy safety net

A temporary 6 month increase to the threshold for the minimum amount of debt required for a creditor to initiate bankruptcy proceedings against a debtor will increase from $5,000 to $20,000. In addition, the time a debtor has to respond to a bankruptcy notice will be temporarily increased from 21 days to six months.

Where someone declares their intention to enter voluntary bankruptcy, the period of protection from unsecured creditors will be extended from 21 days to 6 months.

More:

More information:

 We will continue to keep you informed as more information is released. We appreciate your patience and understand as we navigate through the measures of relief available. 

 

Should you have any questions, please don't hesitate to contact us and we will navigate through these times together.

Regards
WMC Accounting

$130 billion JobKeeper payment to keep Australians in a Job

Detailed below is information and resources regarding the JobKeeper payment announcement by Scott Morrison last night.

The package has not been legislated and details are yet to be finalised by parliament. Therefore, you may wish to hold off from any employee action until more details are known.

Please note as new information comes to hand, we will continue to send information and newsletters.

 

Clients should register their interest direct with the ATO to receive updates from them.

Resources:

Based on limited information provided by the government to date, we have already identified the following questions and issues that you may have and we are waiting to seek clarification on these matters:

  • It is not apparent whether qualifying for one month of JobKeeper payments will automatically qualify employers for the full 6 months. If not, we will need further information on whether employers report their revenue each month.
  • What happens if you don't qualify for payment, based on revenue drops of 30% or more, until after April?  E.g.  If you have 30% reduction in revenue in May.  Can you get back pay for April and then May payment also? Does it automatically qualify you for June?
  • It appears self-employed individuals are eligible; however, will this extend to a partnership of individuals?
  • It appears owners of companies and trusts receiving only dividends or distributions (not wages) do not qualify, but may for other employees.  We await more information.
  • Since 1 March, if an employee has been stood down, it is unclear as to what superannuation will be paid on their JobKeeper payment.
  • Based on the following information contained in the fact sheet, "If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements."  It is unclear whether the employee could work reduced hours (number of days etc) to match the $1,500 payment per fortnight.
  • Receiving the $1,500 from the government may enable some employers to help fund paying out leave entitlements to staff, which they may not have been able to currently pay out of cashflow.
  • There is no clarification on whether an employee who is stood down must or can return to work to be eligible for the payment. Further to this, there is no clarification whether a reduced hours agreement also qualifies for the JobKeeper payment.
  • It is unclear what circumstances leave entitlements will accrue for recipients of the JobKeeper payment. Please seek advice from Fairwork or an employment lawyer in relation to this.

Should you have any questions, please don't hesitate to contact us and we will navigate through these times together.

Regards
WMC Accounting

State Government Stimulus Packages

Alongside the Australian Government's response to COVID-19, all states have outlined their own specific economic assistance packages. We encourage you to review potential opportunities for support. We have provided information regarding Victoria and included links to other states below. You still may be eligible in other states if your business extends operations outside Victoria.

Victorian Economic Survival Package
The Victorian Government has established an economic survival package to support Victorian businesses and workers through the devastating impacts of the COVID-19 pandemic. The $1.7 billion Economic Survival Package complements the work of the Federal Government. The package includes the following key programs:

Payroll Tax Refund
Businesses with annual taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived. This will support 24,000 businesses and up to 400,000 workers. The State Revenue Office will directly contact eligible businesses to reimburse them for payroll tax already paid in the financial year. Eligible businesses must continue to lodge returns but do not need to make further payments for this financial year. These businesses can also defer paying payroll tax for the first quarter of the 2020-21 financial year. More information about the administration of these relief measures will be sent directly to eligible businesses.

SRO Tax Relief for Eligible Businesses

Liquor licence fees waived
Renewable liquor licence fees for 2020 will be waived. Businesses that have already paid will be reimbursed. The State Revenue Office will administer the reimbursement, regardless of whether the licence fee was paid to it or the Victorian Commission for Gaming and Liquor Regulation.

SRO Tax Relief for Eligible Businesses

Business Support Fund
The $500 million Business Support Fund will support the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.  Funding of $10,000 per business is available and will be allocated through a grant process.

The Government will work with the Victorian Chamber, Australian Hotels Association and Australian Industry Group to deliver the Fund, which will help these businesses – which may not be eligible for payroll tax refunds due to their size – survive and keep people in work.

Victorian Business Support Fund

Fact Sheet - Economic Survival Package

Working for Victoria Fund
Under the $500 million Working for Victoria Fund, displaced workers will be eligible to apply for different types of work. This presents opportunities for paid work and an opportunity to contribute to Victoria's ability to manage this event and support the community.

Some displaced workers will have skills that can be readily transferred to new roles. The Government can also assist skills development or help people in obtaining immediate accreditation to commence work.

The Government will work across the public sector, local government, the not-for-profit sector and key private sector employers to facilitate job matching.

$50 million support package for Victorian workers

Land tax deferral
Land owners that have at least one non-residential property and total taxable landholdings below $1 million have the option of deferring their 2020 land tax payment until after 31 December 2020.

The State Revenue Office will contact all taxpayers who are eligible for this deferral.

SRO Tax Relief for Eligible Businesses

Fast tracking outstanding supplier invoices
The Government will pay all outstanding supplier invoices within five business days – releasing up to $750 million into the economy earlier. The private sector is urged to do the same where possible.

Rent relief for commercial tenants in government buildings
The Government will work directly with commercial tenants in government buildings who can apply for rent relief. Private landlords are also being encouraged to provide rent relief or holidays to help businesses.

Stimulus package resources for other states are outlined below:

Should you have any questions, please don't hesitate to contact us and we will navigate through these times together.

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