Super Guarantee Charge (SGC) Amnesty

By | General

If you haven’t paid the right amount of super guarantee (SG) to your workers, the SG amnesty is the time to come forward. If you disclose your SG shortfalls during the amnesty, you can rectify past unpaid SG without incurring charges or penalties.

The SG amnesty runs until 6 September 2020 however, given this is a Sunday, applications are accepted until 11.59pm on Monday 7 September 2020.

SG shortfalls for any quarter between 1 July 1992 and 31 March 2018 may be eligible if you have not been told we are examining your SG obligation for the period your disclosure relates to.

If you disclose your SG shortfalls and are found eligible:

  • you must pay the SG shortfall plus interest
  • any payments you make before 11.59pm on Monday 7 September 2020 in your local time are tax deductible, including payments through a payment plan.

However, you must pay your SG shortfalls (or payment instalments) to remain eligible. If you default on your payment plan, you will no longer be eligible for the amnesty.

It’s important you act on this opportunity now to get your obligations up to date. If you’re aware of any unpaid SG for the periods covered under the amnesty and choose not to come forward, the consequences will be significant. Penalties include:

  • up to 200% penalty on top of the SG and interest you owe (minimum 100% penalty)
  • administration charges ($20 per employee per quarter).

If you’ve been impacted by recent bushfires, we understand that your priority is on your family and community at this time. However, the law doesn’t allow us to vary the due date for lodgment of an SG amnesty application.

Next step:

See also:

Coronavirus Stimulus Package

By | General
 Coronavirus Stimulus Package
 The real details are below
 KEEP SCROLLING DOWN…..
There has been a lot of press around the health impacts of the Coronavirus.

Obviously there has been fear and uncertainty on the economic front, and the government has appeared to get on the front foot and prime the pump to stimulate the economy.

The government has recently announced some significant measures in response to the economic impact of the Coronavirus outbreak. These measures are quite bold, generous and heavily targeted towards business’s. Although they haven’t received royal assent as yet (ie they aren’t passed as law yet), they are scheduled to be introduced to Parliament next week, and from all the noise it appears that the opposition will support them.

We have taken some time out to write and explain the measures, and any benefits that may flow to you and your business.
1.    Increasing the instant asset write-off from $30,000 to $150,000.
From Thursday 12th March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with turnover of less than $50 million) to $150,000 (for business with an a turnover of less than $500 million) ONLY UNTIL 30 June 2020

 

This is a big incentive for businesses to purchase new equipment and receive a full and immediate tax deduction – again this incentive is only available though from now until 30 June 2020.

This measure applies to equipment purchased using finance.
2.    Accelerated Depreciation
Depreciation deductions for equipment purchased which fall outside the instant asset write off will receive accelerated depreciation deductions with 50% able to be claimed upfront and the remainder at existing depreciation rates.
3.    Cashflow assistance
This measure will provide a once-off payment of between $2,000 and $25,000, to business owners who have employees and turnover less than $50 million . This payment will be tax-free.

The government is tying the payments to the amounts that are spent on wages tax by the employer. Business’s will get a payment equal to 50% of the PAYG withholding amount payable on the BAS.
The payment will be delivered by the Australian Taxation Office (ATO) as a credit via your April Business Activity Statement (BAS) – if you lodge a monthly activity statement you will get 3 times the amount for the March quarter to make up for the two previous months.

This benefit will effectively apply to tax withheld on wages paid during the period from 1 January 2020 to 30 June 2020.  The total credit available will be capped at $25,000.

 

Businesses who have employees though who are not required to withhold tax (such as casual staff earning below the tax-free threshold) will receive a minimum payment of $2,000.
5.    Apprentices & Trainees
Employers with less than 20 full-time employees – and that have an apprentice or trainee who was employed by them and in training as at 1 March 2020 –   may be entitled to apply for Government funded wage subsidies.  The subsidies amount to 50% of their apprentice’s or trainee’s wage for the 9 month period from 1 January 2020 to 30 September 2020.  Importantly, where a business is not able to retain an apprentice or trainee, the subsidy will be available to a new employer that employs that apprentice.

Employers will be reimbursed up to $21,000 ($7,000 per quarter) and payments will be administered made by the National Apprentice Employment Network. It is proposed that employers will be able to register for the subsidy from early April 2020.
.
6.    Stimulus payments to households
The government will provide a once-off $750 payment to social security, veteran and other income support recipients and eligible concession cardholders. To be eligible, you must be residing in Australia and be receiving one of the following payments, or hold one of the following concession cards, as at 12 March 2020:

  • Age Pension
  • Disability Support Pension
  • Carer Payment
  • Parenting Payment
  • Wife Pension
  • Widow B Pension
  • ABSTUDY (Living Allowance)
  • Austudy
  • Bereavement Allowance
  • Newstart Allowance
  • Youth Allowance
  • Partner Allowance
  • Sickness Allowance
  • Special Benefit
  • Widow Allowance
  • Family Tax Benefit, including Double Orphan
  • Pension
  • Carer Allowance
  • Pensioner Concession Cardholders
  • Commonwealth Seniors Health Cardholders
  • Veteran Service Pension; Veteran Income Support Supplement; Veteran Compensation payments, including lump-sum payments; War Widow(er) Pension; and Veteran Payment.
  • Veteran Gold Cardholders
  • Farm Household Allowance

Payments will be made automatically from 31 March 2020 by Services Australia or the Department of Veteran’s Affairs.
7.    Assistance to regions
The government has also committed to set aside $1 billion to assist specific regions who have been disproportionally affected by the economic impacts of the Coronavirus, including those regions heavily reliant on industries such as tourism, agriculture, and education.

This measure will also include the waiver of the Environmental Management Charge for tourism businesses who operate in the Great Barrier Reef Marine Park and the waiver of entry fees for Commonwealth National Parks.

Read More

SuperStream is coming soon!

By | General

 

Superstream-4

Are you ready for SuperStream? From 01 July 2015 ALL employers must send their contribution data and payments in an electronic format. It is expected that by 30 June 2016 all employers have finished implementing this system.

To find out more information about how SuperStream works or might affect you, you can visit the ATO website or give us a call today on (02) 4228 0011 and speak to one of our very lovely accountants about what you need to be doing!

Check out our Facebook page to keep informed with regular updates like this!