No images? Click here 17 September 2020 Synstrat Update - September 2020September 2020 update While Victorians are grappling with the frustrations of extended lockdowns, there seems to be a glimmer of hope on the horizon. The sun is coming up a little earlier, the days are a little warmer, and the case numbers are coming down. Our state and federal governments have been keeping busy enacting new legislation to prop up our economy – as detailed below. It’s amazing what can be done via video link these days. JobKeeper 2.0 details New rules have now been registered for the JobKeeper extension beyond 28th September 2020 by the Treasurer. These rules clarify the turnover tests which can be used when calculating a 30% fall in turnover for the September 2020 quarter. Passing the test means that you and your staff will be eligible for JobKeeper payments on wages paid between 29th September 2020 and 3rd January 2021. To determine if your employees get the full rate of JobKeeper or the lower amount, you will need to go back to their wage records to see if they worked more than 80 hours in a 28 day period prior to either 1 March 2020 or 1 July 2020. If they did, they will get the full rate of $1,200 per fortnight until 3 January 2021. All other eligible employees will get $750 per fortnight. The same tests will apply for the December quarter; for wages paid between 4th January and 29th March 2021. The difference here is that the payments fall to either $1,000 or $650 per employee per fortnight. We recommend that you review your income – be that on a cash or accrual basis – for the September 2020 quarter to see if you may be eligible. We do not expect that there will be a new application process, merely that it will carry on from the original reporting cycle. The onus will be on us, the taxpayers, to keep accurate records of eligibility and wage payments. More detail and clarification will come in the next week or so. As always, we are here to help with any questions you may have. Refer to our website for our contact details while we are working remotely. Employer directions when ineligible for JobKeeper 2.0 Employers that have not seen a 30% fall in turnover in the September 2020 quarter will no longer be eligible for the JobKeeper payments as noted above. This does not mean that business has returned to normal and staff may still need to work reduced hours. Those businesses that were previously receiving JobKeeper and have at least a 10% reduction in turnover can still give JobKeeper Directions to an employee under the Fairwork Act, provided they have a ‘10% decline in turnover certificate’. These certificates must be issued by a registered tax agent (ie Synstrat), a BAS agent or a qualified accountant. Please contact us if you require a certificate for this purpose. State support extensions Various state governments have increased their support for small businesses recently. The lists below give a summary (not an exhaustive list) of the support we expect will be used most by our clients: Victoria (applications open Friday 18th September 2020):
Queensland:
South Australia:
Federal Budget 2020 The annual Federal budget for 2020/21 is due to be handed down on 6th October – a far cry from its usual May release. It will be interesting to see what comes out of the budget, given the amount of stimulus already offered by treasury this year. We will keep you informed of what comes. Synstrat contact While our main phone line is not manned, all voicemail messages are being attended to. If you need to contact any of our staff, please refer to our website for direct phone numbers or send us an email at office@synstrat.com.au. Best wishes, The Synstrat team The Synstrat Group provides Business Advice, Accounting and Financial Services. Prepared by Synstrat Accounting Pty Ltd for clients of Synstrat Group. Liability Limited by a scheme approved under Professional Standards Legislation Synstrat Accounting Pty Ltd P. 03 9843 7777 ACN 053 416 149 If you are not the intended recipient of this communication please delete and destroy all copies of this message and telephone Synstrat on +61 3 9843 7777 immediately. If you are the intended recipient of this communication you should not copy, disclose or distribute this communication without the authority of Synstrat. Any views expressed in this communication are those of the individual sender, except where the sender specifically states them to be the views of Synstrat. If you do not wish to receive this email in future, please reply to the sender requesting termination of service. |