August 2020 Newsletter

Contents:

  • Job Keeper extension – what you need to know
  • SME loan scheme extended
  • Job Seeker Changes
  • 90,000 SMEs to benefit from new JobTrainer program
  • 65% of retirees are worried about their retirement income
  • End-of-year finalisation through STP
  • Announcements

Job Keeper extension – what you need to know

On 21 July, the Government announced it is extending the JobKeeper Payment until 28 March 2021 and is targeting support to those businesses and not-for-profits which continue to be significantly impacted by the Coronavirus. From 28 September 2020, eligibility for the JobKeeper Payment will be based on actual turnover in the relevant periods, the payment will be stepped down and paid at two rates.
 
 

SME loan scheme extended

The Coronavirus SME Guarantee Scheme has now been extended to 30 June next year, to support a larger number of small and medium-sized businesses adapt and innovate during the coronavirus crisis.
The scheme’s popularity has been limited to date, with only 15,600 businesses getting their hands on loans worth a combined $1.5 billion, compared to the scheme’s planned value of $40 billion.
 

Job Seeker Changes

The Australian Government is extending the Coronavirus Supplement until 31 December 2020. There are also changes to our income support payments.
 
From late September, there’ll be changes to the amount of supplement we pay you as well as to the eligibility of some income support payments.
 
 

90,000 SMEs to benefit from new JobTrainer program

The government has announced a $2.5 billion JobTrainer program, giving 340,000 Australians the opportunity to retrain or upskill into sectors with job opportunities, including an additional $1.5 billion to expand the apprentice and trainee wage subsidy.
 
 

65% of retirees are worried about their retirement income

Most Australian retirees are now worried about their retirement income (65%), according to new research from investment management firm Challenger.

A quarter of retirees surveyed in May have cut back on basic grocery costs and 37% are minimising clothing and accessory spending as an immediate response to financial uncertainty caused by COVID-19.

 
End-of-year finalisation through STP

If you have 19 or fewer employees, you have until 31 July 2020 to make the finalisation declaration. Before making your finalisation declaration, make sure your STP information is correct. If you can’t make a finalisation declaration by the due date, you will need to apply for a deferral. You can finalise your data earlier if it’s ready. The sooner you finalise your employees’ information, the sooner they will be able to lodge their tax returns.

 


Announcements:

This month we wish a Happy Birthday to Phoebe, Paul & Hayley and congratulate Cris (19), Joanne (9) & Paul (14) on achieving work anniversaries at Watts Price Accountants.
 

Phoebe McPherson

Paul Mackereth

Cris Semmler

Joanne Dreckow

Paul Mackereth

 

Workcover Rateable Remuneration

About this time of year employers will be receiving a Workcover Rateable Remuneration Declaration which they will need to action. The easiest way to do this is using the log in details attached to the premium invoice when it arrives. Anyone that needs assistance should contact Watts Price Accountants or Knights Accounting and we will can lodge the declaration on your behalf.
 
It is important to review your Rateable Remuneration each year because:
  • If you do not certify your rateable remuneration for the current year, it will be assessed to be a minimum of 20% above the highest previous figure
  • Where rateable remuneration is not certified, or is incorrectly certified, penalties may be applied.

If your actual rateable remuneration differs from your estimate you are required to revise your estimate of rateable remuneration if:

  • it exceeds, or is likely to exceed the WorkSafe estimate, or
  • your own previous estimate, by more than 20%, or
  • if at any time (prior to 30 April ) the rateable remuneration you have paid, or
  • you are liable to pay, is greater than the last estimate you provided

 

What is Rateable Remuneration?
Rateable Remuneration is used to calculate the premiums for your WorkCover Insurance which is provided to cover the costs if any of you workers are injured or become ill because of their work. For most Victorian businesses that employ staff it is a legal requirement to hold WorkCover Insurance.
 
How is Rateable Remuneration Calculated?
Your Rateable Remuneration is the total of gross wages, salaries and other benefits provided to your workers. Unfortunately calculating the amount is not as easy as it sounds due to a number of complexities like:
  • Deductible benefits
  • How workers and contractors are treated
  • Rules around Interstate workers
  • Exemptions for some apprentices and trainees
  • Allowances for motor vehicle and accommodation
It is important to identify your rateable remuneration accurately. You need to know what should, or should not, be included as there are penalties for underestimating your rateable remuneration. Employers that need assistance should contact us at Watts Price Accountants or Knights Accounting.
 
 

Finalisation of Single Touch Payroll

Over the last 3-4 weeks we have assisted close to 60 employers to finalise their Single Touch Payroll reporting. However it seems some employers that do their own payroll and reporting are still to process this final but important step to finish off the 2020 Financial Year. If you need assistance please contact our office asap as STP Finalisation is due by 31 July 2020!
 

Important Notice for All Employers

As the 2019 – 2020 financial year draws to a close, employers need to be aware of their obligation to lodge a Finalisation Report by July 14, 2020 (for employers with 20 or more employees). All employers will need to: Use their STP solution to ensure the Finalisation Report is lodged no later than 31 July 2020 (for employers with 19 or fewer employees) and inform their employees that:

  • They will not be issued with a payment summary
  • They can access their salary information via their myGov account via the ‘Income Statement’
  • Let employees know that they should not lodge their tax return until their status reads ‘Tax Ready’ (check myGov or ask your accountant)

NB: Employers that started doing their own STP reporting this year must use their STP solution to provide a Finalistation Report, i.e. no paper forms will be accepted (as in previous years)!

 

NB: Single Touch Payroll for Closely Held Payees If you only have closely held payees then you are not required to start STP reporting until 1 July 2021. A closely held payee is one who is not at arm’s length. This means they are directly related to the entity from which they receive payments, for example:

  • family members of a family business
  • directors or shareholders of a company
  • beneficiaries of a trust

We are here to Help!

Both Watts Price Accountants and Knights Accounting are still operating at normal capacity with a mixture of team members working from home and behind closed doors.
 
We appreciate that not being able to conduct business face to face is a challenge for many, including ourselves, but we are still here to assist you via phone, email, video conferencing, post and the mail slots at each office. 
 
If you need assistance please contact us on:
 
Watts Price Accountants
P: 03 5382 3001
E: mail@wattsprice.com.au
M: PO Box 118, Horsham VIC 3402
 
Knights Accounting
P: 03 5385 5330
E: info@knightsaccounting.com.au
M: 16 Cromie Street, Rupanyup VIC 3388
 
All the best from the Watts Price Team!