Newsletter – May 2020

May 2020 Newsletter

Contents:

  • Summary of all the key COVID-19 Stimulus Measures to date
  • Claiming Business Motor Vehicle Expenses Change
  • Working from home? Filing a 2019-20 tax return just got easier
  • What To Do When Employees Keep Calling In Sick?
  • Announcements

Summary of all the key COVID-19 Stimulus Measures to date

There have been a number of stimulus announcements over the last month both from the Federal and State Governments to assist small businesses and their employees through the current economic downturn.

There have been a number of amendments to both eligibility and deadlines for some stimulus packages so it may pay to re-look at your options.

For example, Job Keeper has seen the enrollment extended to 8 May for organisations looking to claim  the $1,500 JobKeeper payments for the fortnights between March 30 to April 12, and April 13 to April 26 and some younger workers excluded as eligible employees.

 

Claiming Business Motor Vehicle Expenses Change

Earlier this year there was a change to how input tax credits on motor vehicles should be calculated.

The Addendum states that for the purpose of determining the extent of creditable purpose (e.g. GST) for motor vehicle expenses, taxpayers may use one of the following two methods: Cents per kilometre method & Logbook method

Given the pro’s and con’s of each option we would recommend that from 01/07/2020 clients should use the Logbook method.

 

Working from home? Filing a 2019-20 tax return just got easier

Recognising that a number of individuals are now working from the comfort of their own home for the first time due to COVID-19, the ATO has made it far easier to claim associated tax deductions. 

It is temporarily implementing a “shortcut method” – a flat claim rate of 80 cents per hour to cover all running expenses, which aims to make it easier for these workers to claim on expenses incurred in the carrying out of their employment duties.

 

What To Do When Employees Keep Calling In Sick?

Getting sick is a part of life and happens to the best of us.

While covering sick employees is tough, the last thing you want is staff members coming to work if they’re not feeling well. Not only can they infect others but their job performance and productivity might suffer.

But what happens if you have the opposite problem and an employee is constantly calling in sick? You most likely start to question their motives and honesty.


Announcements:

This month we wish a Happy Birthday to Lyndel and congratulate Margaret on achieving 9 years service at Knights Accounting.
 
Lyndel Delahunty  
     
 

Trouble connecting your Trust with myGovID

To gain access to ATO Online Services for a Trust business structure you must ring the ATO, and the ATO officer can make the connection.

* You cannot make this connection online using RAM yourself – the ATO must do it over the phone.

Call 1300 287 539 and select option 3

How to connect your Trust

  • You will need to identify yourself over the phone (as per normal)
  • You will need to have your ABN of the Trust.
  • You will need to be the Authorised Person of the Trust as listed on the ABN details.
  • Estimated time of call is approximately 15 minutes, but then it will be done and you will be up and running.

For any business who needs to connect multiple ABNs (i.e. more than 3), ring them and ask for the form that has to be submitted.

Note: If you are setting up myGovID for Single Touch Payroll (STP) purposes you will also need to register your STP enabled software with the ATO. Instructions for this will be in the Payroll area of your software along with the unique code you will need to provide the ATO.
 

ATO Debts & Payment Arrangements

Anyone with Tax Office debts can call the Tax Office, on 131142 if they are in hardship. 
 
You will need to pass a proof of ID check by providing information from a recent Notice of Assessment or activity statement Document Identification Number. 
 
The ATO will look at the debt on a case by case basis, so no one answer for everyone. 
 
Clients can enter into a payment arrangement in the first instance, but if you can’t pay anything at all you will be asked a series of questions and maybe the debt be put on hold for an agreed period of time.
 
 
All the best from the Watts Price Team!