With so many announcements on COVID-19 assistance it is difficult to collate all the information into a meaningful reference source. In conjunction with one of our key knowledge partners we now bring you a comprehensive, interactive summary of everything you need to know and how to access the various packages. I think you will find The COVID-19 Stimulus & Support Measures guide a valuable comprehensive reference.
Interestingly, Treasury have just clarified what is meant by "turnover" in determining eligibility for the Jobkeeper payments. Turnover for these payments will carry the meaning used for reporting GST on the Business Activity Statements. It includes all taxable and GST free supplies but not input taxed supplies. Based on this definition, it is noteworthy that only Australian based sales are included so International affiliates will not impact the eligibility for businesses to access the Jobkeeper entitlements.
We must not forget about taxes
Unrelated to the COVID-19 situation, and as in life, taxes always seem to be on the agenda. At this time of the year we are thinking Fringe Benefits Tax of course. I attach a detailed FBT checklist that you can use as a guide to manage your FBT reporting. However, the most timely matter is to capture the vehicle odometer readings as at 31 March 2020. Under the current circumstances I suspect a lot of affected motor vehicles will not have travelled much since then!
Time to act for foreign residents wishing to claim the main residence CGT exemption
Another interesting tax aspect is the law that has now passed through Parliament concerning foreign residents and the main residence capital gains tax exemption. For those affected they only have until 30 June 2020 to dispose of affected property and claim that exemption. Time to act now. Learn more about this...
And in breaking news:
New working from home rate
The Australian Taxation Office (ATO) is announcing special arrangements this year, due to COVID-19, to make it easier for people to claim deductions for working from home. The new arrangement will allow people to claim an increased rate of 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses.
Multiple people living in the same house can claim this new rate. For example, a couple living together could each individually claim the 80 cents per hour rate. The requirement to have a dedicated work from home area has also been removed and now you will only be required to keep a record of the number of hours worked from home. The new rate does not prohibit people from making a working from home claim under existing arrangements, where you calculate all or part of your running expenses. Claims for working from home expenses prior to 1 March 2020 cannot be calculated using the new rate, and must use the pre-existing working from home approach and requirements. Worked examples are appended.
As usual, please do not hesitate to call us on (02) 9891 6100 should you wish to discuss how any of the points raised in the report specifically affect you, or click here to send us an email.
Martin Roughley, Director
Spry Roughley Services Pty Limited
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