September 2020 Newsletter

Contents:

  • 860,000 businesses hit with ATO compliance letters
  • Super fund selection now enshrined as law
  • JobKeeper extension bill introduced
  • Boost your super in the comfort of your own home
  • COVID rental eviction moratorium extended
  • ATO confirms important issue on pension payments
  • Announcements

860,000 businesses hit with ATO compliance letters

The Tax Office has now reached out to 860,000 businesses to remind them of their superannuation guarantee obligations ahead of the one-off amnesty deadline.
 
The ATO has now confirmed that it has begun contacting 860,000 business owners through emails and letters to “encourage them to assure themselves that they have met their super guarantee obligations to their employees”.
 

Super fund selection now enshrined as law

Australians will no longer be forced into super funds because of enterprise bargaining agreements, after a new law was approved by the Federal Parliament.

Passing both the House of Representatives and the Senate today, the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 will ensure 800,000 Australians covered by enterprise agreements can make choices about where their retirement savings are invested.

JobKeeper extension bill introduced

JobKeeper legislation giving effect to the extension of payments to 28 March 2021 has now been introduced in Parliament. The bill introduces the extension of the JobKeeper scheme that was announced by the government in late July, pushing the end date of the wage subsidy to 28 March 2021.

Rules giving effect to the new eligibility criteria based on the decline in turnover for the previous quarter and the new two-tier payment rate have yet to be released.

 

Boost your super in the comfort of your own home

The Australian Taxation Office (ATO) has confirmed that a part disposal of a home can work with the “downsizer” contribution, meaning SMSF retirees and regular retirees can simultaneously top up their superannuation savings and remain in their place of residence.
 
 

COVID rental eviction moratorium extended

Tenants will be further protected from rent increases and evictions, and landlords will be able to apply for cash payments, under a suite of measures announced by the Victorian Government.
The measures include extending a moratorium on rental increases and evictions for both residential and commercial tenants until December 31.
 
 

ATO confirms important issue on pension payments

The ATO has confirmed only payments made to a member after 24 March in excess of the reduced minimum pension can be treated as a lump sum, even where a valid election was previously in place, says the SMSF Association.
In an online opinion piece, SMSF Association technical manager Mary Simmons said where members opt to take withdrawals in excess of their minimum pension as a lump sum, it is a common industry practice to put documentation in place at the start of the financial year electing that these amounts above the minimum be treated as a lump sum withdrawal.
 

Announcements:

This month we congratulate Jenny (12) & Nicole (6) on achieving work anniversaries at Watts Price Accountants.
Nicole De Zoete  
     
 

Your Communication Preferences

Over the coming weeks we intend asking many of you if you are happy to receive correspondence from us via other channels rather than the postal service.
 
We have been trialing electronic delivery & signing software with many of our Salary & Wage clients over the last month and in the last few weeks with some BAS clients and have received very positive feedback. We believe that this method of delivery would provide a faster, safer and more efficient experience for many of you!
 
To that end we are looking at expanding the trial to BAS clients that would prefer to receive their compliance correspondence from us going forward electronically. In the future we are likely to expand the offering to include correspondence such as: Tax Returns; Financial Statements; Engagement Letters; Tax Checklists; Invoices; Monthly Statements; Scheduling Letters to name a few. 
 
Receiving correspondence electronically is likely to suit clients that regularly check their emails and are happy to receive documents in pdf form rather than printed documents. It would also suit clients that live outside of Horsham that would benefit from the electronic signing feature!
 
We understand that not everyone has an email address, access to the internet and that some people just like to retain paper copies of documents for their records. For these clients we will continue to support you with post or phone and collect options. 
 
To participate in the extended trial look out for the survey coming soon. If you have any queries email Cris and the team at Watts Price Accountants on mail@wattsprice.com.au or Margaret at Knights Accounting on info@knightsaccounting.com.au.


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!