Fact sheet: HomeBuilder
Preparation of Finalisation Declaration - Single Touch Payroll
If you are using the Single Touch Payroll (STP) you'll be exempt from issuing payment summaries to your employees if you have made a "Finalisation Declaration". The Finalisation Declaration requires the employer to declare that all of the information relative to the financial year for each employee has been provided through your STP reporting.
Finalisation Declaration lodgement requirements:
· Employers with 20 or more employees – by 14th July 2020.
· Employers with 19 or less employees – by 31st July 2020.
Coronavirus SME guarantee loans
A reminder that these loans are available from banks and other financial institutions until 30th September 2020.
The loans are for a maximum of $250,000 unsecured repayable over a three-year period. The Australian government is guaranteeing 50% of the loan amount.
The funding for these loans was made available by the Reserve Bank to the trading banks on the understanding that the banks would utilise their usual lending criteria for these loans. This means that you'll probably require a business plan, budgets and cashflow forecasts, together with financial accounts for 2018/19 and interim financial accounts to 30th April 2020.
If you would like our assistance in the preparation of the loan application, can you please contact us at your earliest opportunity so that the necessary supporting documentation can be prepared for submission to your nominated bank.
Apply now for COVID-19 Land Tax relief
If you're a commercial or residential landlord who has reduced your tenants' rent due to COVID-19, you may be eligible for the NSW Government's land tax relief.
Relief is available to landlords:
- whose tenants can prove financial distress due to COVID-19, and
- who have reduced their tenants' rent for any period between 1 April 2020 and 30 September 2020.
If eligible, the relief available may:
- reduce up to 25% of your 2020 land tax liability
- defer your land tax payments by up to 3 months
- provide a refund on the amount of rent reduction you've given a tenant, or
- reduce the amount of 2020 land tax payable if you have not yet completed payment.
See eligibility and apply online
Start your COVID-19 Safety Plan
Apply now for the $3,000 Small Business Recovery Grant.
Under the new Small Business Recovery Grant, small businesses will be able to apply for funding up to $3,000.
The grant can be used to cover marketing and advertising expenses, make fit-out changes and train staff in how to work safety under the current Covid-19 health conditions.
Applications are open on the Service NSW website until Sunday 16 August 2020.
Be a Covid Safe Business
Let customers know they can safely do business with you by downloading and completing your Covid-19 Safety Plan. There are different plans available for different industries, each has useful advice for creating a COVID safe workplace.
Once you have completed your COVID-19 Safety Plan, register it online. Then promote that you're a COVID Safe business by displaying a badge and poster your premises.
Start your COVID-19 Safety Plan.
Instant Asset Write Off
If your business has an annual turnover of less than $50 million, you can write off expenditure on individual items acquired in the period 1st July 2019 to 11th March 2020 up to an individual value of $30,000.
If your business has an annual turnover of less than $500 million you can write off expenditure on individual items installed and ready for use by 30th June 2020 up to a value of $150,000 for an individual item.
On the 9th June 2020 the Federal Treasurer announced that the Instant Asset Write Off for individual components of up to $150,000 would be extended from 1st July 2020 to 31st December 2020.
From 1st January 2021 the Instant Asset Write Off amount reverts to $1,000 per individual item for businesses with turnovers of less than $10 million per annum.
Small business tax cuts
The tax rate for small businesses structured as companies with turnovers of less than $50m will decrease from 27.5% to 26% while the unincorporated tax discount will increase from 8% to 13% to ensure that sole traders benefit from the corporate tax cut.
Temporary early access to superannuation
While superannuation helps people save for retirement, the Government says it recognises that for those significantly financially affected by COVID-19, accessing some of their superannuation today may outweigh the benefits of maintaining those savings until retirement.
Eligible Australian and New Zealand citizens and permanent residents will be able to apply online through myGov to access up to $10,000 of their superannuation from 1 July 2020 to 24 September 2020.
COVID-19 Fourth Stimulus Package
The Federal government's recent announcement relating to the fourth COVID-19 Stimulus Package should assist the building and construction industries and some tradie businesses. The $25,000 grants are available to eligible people who are building a new home or renovating an existing home.
Applications for the grants are now open with the closing date for applications of 31st December 2020.
COVID-19: ATO announces Div 7A assistance
The ATO has announced that taxpayers affected by COVID-19 will now be able to request an extension of the repayment period if they are unable to make their minimum yearly repayment by the end of the lender's 2019/20 income year (generally 30 June) on complying Div 7A loans.
When there is a complying loan agreement between a private company (and certain interposed entities) and a borrower, the borrower must make the minimum yearly repayment by the end of the private company's income year.
This avoids the borrower being considered to have received an unfranked dividend, generally equal to the amount of any minimum yearly repayment shortfall (referred to as the shortfall). Borrowers can now request the extension by completing a streamlined online application.
The ATO will ask borrowers to confirm the shortfall that the COVID-19 situation has affected them and that they are unable to pay the minimum yearly repayment as a result. A separate form needs to be lodged for each amalgamated loan.
When the ATO approves an application, it will let the borrower know he/she will not be considered to have received an unfranked dividend. This is subject to the shortfall being paid by 30 June 2021. It will not be necessary to submit further evidence with the application.
This streamlined process only applies to applications for an extension of up to 12 months for COVID-19 affected borrowers. If you have further questions in regards to this please don't hesitate to contact the office.