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We commonly see situations with delayed payments or disputes over quality, occasionally money is lost through the buyer going into liquidation.

Often in delayed payments, the buyer has the ability to pay, they just do not want to incur extra cost (bank fees, interest, overdraft extensions etc.) to make it happen, and instead they use you as their overdraft.

HERE ARE SOME TIPS TO MINIMISE THE RISK:

1. Payment on/before delivery
    -  Funds transferred in and cleared in your bank account before delivery.
    -  Alternatively paid into a lawyer trust account to release on delivery, this ensures you do not keep the money and not deliver.
Read more…

Tax Cuts: Time to change withholding amounts


The Australian Government has introduced personal income tax cuts that apply from 1 July 2020.

Updated tax tables are now available for you to reflect the tax cuts in employee's take-home pay.

You must make sure you are withholding the correct amount from salary or wages paid to your employees for pay runs processed in your system from 16 November onwards.

Payroll software providers will be updating software to implement these tax rate changes. Some payroll software providers may take longer to update their software. Your software provider will keep you updated on these changes.

You don't need to make any other adjustments or refunds.

Any 'over-withholding' that occurred prior to updating your payroll software or processes will be included in your employee's income tax assessment at the end of the year.

Federal Budget 2020

The Federal Budget has announced additional spending on the back of initiatives that have already been implemented by the Government during the year as a result of the economic impact of COVID19.

The key announcements include:
•  the bringing forward of the individual tax relief planned for 2021, backdated to 1 July 2020
•  a new loss carry-back for losses incurred up to June 2022 for companies with turnovers of up to $5 billion
•  allowing most businesses to fully deduct any investment into depreciable assets until 30 June 2022 and
•  a new JobMaker Hiring Credit for companies employing staff aged between 16 to 35 years old.

There were no changes to GST rules and changes to Superannuation were mostly limited to minor administrative changes.

For a more detailed overview of how the Federal Budget may affect business owners please click here.

JobKeeper 2.0 Update

Following the recent second wave of lockdowns in Victoria, the Government has announced the extension of JobKeeper from the original end date of 27 September 2020, until 28 March 2021.

Businesses must be eligible for JobKeeper 1.0 in order to receive payments after 27 September 2020.

NO BACK-DATING OF ENROLMENT: To claim JobKeeper for a particular month, you must be enrolled in the program before the end of that month and declare business turnover by the 14th of the following month.

1. THE PAYMENT AMOUNT

The payment for eligible employees is being reduced for the extension period – as outlined below:

Fortnightly Payment
(working >20 hours) (working <20 hours)
Original JobKeeper
Until 27 Sep 2020
$1,500 $1,500
Extension period 1
28 Sep 2020 - 3 Jan 2021
$1,200 $750
Extension period 2
4 Jan 2021 - 28 Mar 2021
$1,000 $650

2. DECLINE IN TURNOVER FOR ELIGIBILITY

The reduction in turnover amount test has remained the same as the initial JobKeeper eligibility, being:
   -  30% reduction of turnover (so long as your turnover is less than 1 billion); or
   -  15% reduction of turnover if you are a registered charity.

However, the new change is that employers will need to meet the minimum decline in percentage of their turnover in each quarter. The quarterly periods are:
   -  April – June;
   -  July – September; and
   -  October – December.

Click here for a full technical update.

JobKeeper 2.0 - Simplified

You've probably seen a lot of new information in the media about JobKeeper 2.0 and are trying to make sense of it all...

To try to help clarify, we wanted to share this handy info-graphic with you, as we found it a very helpful visual and easy to understand.

JobKeeper 2.0

As always though, if you require further assistance, please don't hesitate to contact us.

Welcome, New Director - Megan Inverarity


On July 1st, Megan Inverarity became Murray Nankivell's newest Director. We asked her to share how she got there...

How did you get to become an accounting firm director?

Like a lot of high school students I was trying to work out which subjects to pick for my senior years while wading through Uni courses options, not really sure what I wanted to do. The 'old man' said "You like sorting out and organising figures; what about accounting?". As a teenager I didn't really know what an accountant did, but his suggestion wasn't a bad one and I've been on the accounting pathway ever since.

Read more…

HomeBuilder

 

 

 

 

 

Australians will be offered $25,000 grants to build a new home or start a major renovation under near-$700 million federal government housing package in a bid to boost the economy and act as a lifeline to the home construction industry.

Called 'HomeBuilder', the grant will complement existing State and Territory grants and schemes.

Here are some of the main details around the grant and its eligibility criteria:

  • restricted to people on middle incomes and to new homes and major renovations valued between $150,000 to $750,000
  • the pre-renovation value of the house must not exceed $1.5 million
  • excludes sheds, pools, granny flats and any other structures not attached to the property
  • it is a temporary scheme that will last until the end of the year, aiming to build 30,000 homes by Christmas
  • construction of a new home or a substantial renovation must be contracted to begin within three months
  • the grant(s) will be means tested, allowing singles who earned up to $125,000 the previous financial year and couples who earned up to $200,000 to access the scheme.

This is obviously a significant opportunity for anyone looking to built or renovate but you'll need to be prepared and have your finances in place.

For more information please download this Info Sheet or the Government's HomeBuilder Fact Sheet

Please get in touch with us if you're considering this scheme and need some assistance.


We have been seeking clarification on the JobKeeper 30% income reduction and its impact on farmers over the past few weeks.

Originally the information was that income had to be down over 30% due to COVID-19 or the economy.

We had confirmation yesterday in a webinar with the Deputy Commissioner of the ATO, that they will assess on the turnover dollars not the reason why. Therefore a loss of production this year (wool price drop or frost on grapes) may apply.

Read more…

JobKeeper Registration Deadline Extended

The Tax Commissioner has confirmed that the registration deadline for the April and May JobKeeper payments has been extended to 31 May 2020. See the ATO's JobKeeper homepage

While the extra time is very welcome, it will not remove the urgency to determine eligibility for April 2020 JobKeeper payments.

To be eligible for April JobKeeper payments, employers will need to ensure that staff have been paid at least $1,500 for the first two JobKeeper fortnights (30 March – 12 April and 13 April – 26 April) by the end of April.

Unless the situation is clear cut, employers should be careful about making top up payments to staff until they have assessed their eligibility and have received the JobKeeper nomination forms back from staff (unless they want to risk being ineligible and not being reimbursed for these top up payments).

JobKeeper Registrations

This may not apply to you, but the JobKeeper Scheme opens for registrations on the 20th of April (if you haven't already, register your interest in the scheme by going to https://www.ato.gov.au/Job-keeper-payment/).

You will find a link to the form that you need to have all eligible employees complete, here.

The form does not need to go anywhere and should be kept on file by you, but you may need details from it once the registration opens up.

You will need to be up to date with your MyGov ID to access the business portal for registration. If you have any difficulties, please contact us.

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