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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.

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…

Profit & Loss Statements - The Basics

Defining a Profit and Loss Statement

Before you can read a profit & loss statement, you have to first understand what it is. 

A profit and loss statement is key to determining your business's taxes. It helps to determine your business's tax liability, and a simple mistake can end up costing you thousands. 

Read more…

Increase Your Efficiency with Cloud Accounting

Rapid advances in technology are now allowing businesses to enhance the speed and accuracy of record keeping and financial analysis – not only the cash in and cash out but payroll, superannuation, invoicing, contacts and more.

New requirements from the Tax Office for payroll and superannuation reporting for employees, mean cloud accounting is also an efficient and hassle free way to meet these requirements, and increase the efficiency of your bookkeeping at the same time.

Read more…

Single Touch Payroll starts 1 July 2018

  

For medium to large scale businesses, 1 July 2018 will bring a huge change in how they report payroll information to the ATO. That's the date the Government will roll out Single Touch Payroll, their new streamlined reporting solution. This system will allow employers to report wages, salaries, withholding, workplace giving, and super information to the ATO at the same time they pay their employees. 

Read more…

Understanding Cash Flow

Thanks a lot for finding your way to the Murray Nankivell blog on understanding cash flow.

First, what is cash flow?
In simple terms cash flow is "the cash you have coming in, and the cash you have going out."

Now while the meaning of cash flow may be relatively simple, learning how to understand and manage cash flow is another thing entirely.

In fact not understanding and mismanaging cash flow is what puts most businesses out of businesses.

Read more…

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