July 2020 Newsletter
- Will a court ruling see the demise of casual workers?
- $150k instant asset write-off extended for 6 months
- Tax time 2020: ATO cautions early lodgers
- Should you buy property with family and friends?
- Do’s and don’ts of the HomeBuilder scheme
- Understanding illegal phoenixing and directors’ personal exposure
Announcements:This month we wish a Happy Birthday to Joanne & Paula and congratulate Brian on achieving 30 years service at Watts Price Accountants.
Important Notice for All EmployersAs 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 STP to provide a Finalistation Report, i.e. no paper forms will be accepted (as in previous years)!
Where Watts Price Accountants or Knights Accounting process your STP obligations:
- We will be in touch this month to get the relevant employee wage information from you
- You will need to provide us with a total by employee of the wages paid to date for the year
- You will need to sign and return to us a ‘STP Finalisation Authorisation to Act’ form to allow us to process the finalisation on your behalf
- Note: If you will not be paying any more wages between now and the end of the month please let us know
- family members of a family business
- directors or shareholders of a company
- beneficiaries of a trust
Superannuation Guarantee Amnesty
On 6 March 2020 the government introduced a superannuation guarantee (SG) amnesty (the amnesty). The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, that they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018. Eligible disclosures will not incur the administration component ($20 per employee per quarter) or Part 7 penalty.
In addition, payments of SGC made to the ATO after 24 May 2018 and before 11:59 PM 7 September 2020 will be tax deductible.
Employers who have already disclosed unpaid SGC to the ATO between 24 May 2018 and 6 March 2020 don’t need to apply or lodge again.
Employers who come forward from 6 March 2020 need to apply for the amnesty by 7 September 2020.
The ATO will continue to conduct reviews and audits to identify employers not paying their employees SG. If we identify these employers before they come forward, they will not be eligible for the benefits of the amnesty. They will also be required to pay:
- SG shortfall
- nominal interest (10%)
- administration component ($20 per employee per quarter)
- Part 7 penalty (up to 200% of the SGC).
In addition, payments of the SGC won’t be tax deductible.
Paying super is an important part of being an employer. If you’re not eligible for the amnesty, or you have unpaid super for quarters that are not eligible, you must still lodge an SGC statement.Source: https://www.ato.gov.au/business/super-for-employers/superannuation-guarantee-amnesty/