April 2021 Newsletter

Contents:

  • Government defines casual work – but what does it mean for you?
  • Treasury reveals director ID regime details
  • Tax Office outlines STP Phase 2 changes
  • Be Prepared for the End of JobKeeper
  • ATO locks in permanent review service for small businesses
  • Turning point: the 2020s baby boom retirement surge
  • Announcements

Government defines casual work – but what does it mean for you?

While much of the government’s industrial relations reforms failed to please the Senate, the Morrison government was successful in seeing through the definition of a casual employee for the first time in history.
 
The controversial IR Omnibus Bill was introduced to Parliament in December last year, containing provisions regarding casual work, wage theft, award simplification, enterprise bargaining and greenfield agreements.
 

Treasury reveals director ID regime details

Close to 2.5 million directors will soon be required to apply for a unique director identification number as the Treasury reveals more details on the incoming program.
Laws passed in June last year will soon see new and current directors required to apply for a director identification number (director ID) which they will keep permanently, even if they cease to be a director.
 

Tax Office outlines STP Phase 2 changes

Key changes being introduced under the Single Touch Payroll Phase 2 regime have now been detailed by the ATO, including categories of payments that employers will now need to report.
Mandatory STP Phase 2 reporting is now set to commence from 1 January 2022, as the government looks to reduce the reporting burden for employers who are currently required to provide employee information to multiple government agencies.
 
 

Be Prepared for the End of JobKeeper

All good things must end. And after Sunday 28 March, the JobKeeper amendments to the Fair Work Act 2009 (the Act) providing businesses with enabling directions to help keep their businesses afloat will expire.

There may be further amendments to the Act that support businesses like JobKeeper enabling directions further down the line but for the moment, it looks like we’ll be returning to pre-COVID business arrangements.

ATO locks in permanent review service for small businesses

After trialling the service on a three-year pilot program, the ATO’s independent review service will be made available to small businesses on a permanent basis.
 
The ATO on Friday announced that it will permanently instate its independent review service following a successful three-year pilot program which scored the approval of its participants, whether they got the outcome they wanted or not. 
 

Turning point: the 2020s baby boom retirement surge

And so, what can we expect of the balance of the 2020s beyond the coronavirus?

It is likely for example that there will be greater use of technology and a lesser engagement with China. It is also possible that the community will take a renewed interest in hand washing, in appreciating family, in having the freedom to travel beyond Australia. These ‘reactions’ to events triggered by the pandemic are logical enough, I suppose, but there is something else sitting out there, lurking (with intent) in the middle of the decade.

 

Announcements:

This month is a busy one for team member birthdays. We wish a very happy birthday to Richard, Laurie, Katrina & Cris!
Richard Kemp  
Cris Semmler  

Important ATO Dates


Lodgement Program Due Date
FBT Odometer Readings to Watts Price/Knights Accounting (if applicable) 31/03/2021
March monthly activity statements 21/04/2021
Quarter 3 (January–March) PAYG instalment activity statement 21/04/2021
Quarter 3 (January–March) activity statements 28/04/2021
Quarter 3 (January–March) PAYG instalment notices (forms R and T) 28/04/2021
Quarter 3 (January–March) GST instalment notices (forms S and T) 28/04/2021
Quarter 3, (January–March) super guarantee contributions 28/04/2021
 

How to renew a Basic MyGovID authorisation

Basic users can only be authorised for up to 12 months. Before a Basic authorisation expires, you’ll receive:
  • email reminders to the email address you used to link to the business
  • a notification in RAM.
An authorisation can be renewed from 40 days before it expires. If a Basic user has customised permissions, for example, in the ATO’s Access Manager, these will be removed when you renew their authorisation. We recommend you note these permissions before you renew, to help you set them up again afterwards. To renew a single Basic authorisation:
  • select View or manage authorisations, machine credentials and cloud software notifications
  • select the relevant business
  • select Renew next to the person’s name
  • complete the renewal details, accept the declaration and select Submit
  • you’ll receive a notification to confirm the authorisation has been successfully renewed in RAM
  • set permissions (if required) – for example, in the ATO’s Access Manager.

Farm Safety Rebate Scheme

The Victorian Government (through Agriculture Victoria) has provided an opportunity to improve safety outcomes on farms with the establishment of the Farm Safety Rebate Scheme.

Rebates of up to $5,000 excluding GST are available with at least 50% co-contribution to assist eligible farm businesses within Victoria to invest in infrastructure and equipment to improve safety for farming families, workers and visitors to Victorian farms.

Only one rebate payment is permitted, and all eligible claims must be included on your Application Form.

The availability of rebates is subject to funds being available. No rebates will be offered beyond the allocated total Victorian Government funding of $3 million (ex GST).

Applications open 25 February 2021 and close on 31 December 2021, rebates are available until the closing date or when program funds are fully allocated, whichever is sooner.

 

To find out more visit: https://www.ruralfinance.com.au/industry-programs/farm-safety-rebate-scheme

Application Form: https://www.ruralfinance.com.au/uploads//grant_files/farm-safety-rebate-application-form.pdf

Farm Safety Rebate Scheme Guidelines: https://www.ruralfinance.com.au/uploads//grant_files/farm-safety-rebate-guidelines.pdf


Tax Planning

It’s not too early to be thinking about Tax Planning. With 30 June just around the corner we encourage you to think about applying legitimate tax strategies now to minimise your tax obligation.
 
To book an appointment please contact our team:
 
Watts Price Accountants
P: 03 5382 3001
E: mail@wattsprice.com.au
 
Knights Accounting
P: 03 5385 5330
E: info@knightsaccounting.com.au
 
 

Point-of-sale record manipulation

An electronic sales suppression tool (ESST) is a hardware or software tool connected to a business’s point-of-sale (POS) system that manipulates sales records and allows sales and income to be under-reported. The ATO is warning that if you do not remove your ESST when they have one, or do not come forward when you are involved in producing or supplying an ESST, you will be at serious risk of an ATO audit, amendments to tax assessments and significant penalties. Coming forward now could result in remission of penalties that apply.
 

QuickBooks Online Users

QuickBooks Online Windows and Mac desktop apps will no longer be supported after 20 April 2021. From this date onwards you should log into your file via a supported browser like Chrome or Safari.

The monthly retail price for Quickbooks Online software will be standardised i.e. discounted licenses phased out.

Additionally, for those using payroll (the Employees tab) this has been de-bundled and will be an additional monthly charge, only when it is used to pay employees. For the months in which you pay employees the cost will be an additional $2.50 per employee paid. Clients that pay Watts Price Accountants or Knights Accounting directly have been sent new engagements reflecting the changes. If you have any queries please contact our office!    

 

All the best from the Watts Price Team!