 As expected, the Reserve Bank of Australia kept the cash rate at 0.25% at its meeting today as the country continues to deal with the COVID-19 pandemic.
The RBA, conscious of reductions in consumer spending, further falls in house prices and the flow on economic impact of stage four restrictions in Victoria, has consistently stated that it sees a cash rate of 0.25% as the floor. With rates at a record low and lenders continuing to offer very competitive rates, why not review your situation to ensure you have the right product for you right now?
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 It is with a great pleasure to say that our practice has been voted in the top 10 performing Accounting practices. It is among 90+ other Australia wide within the Success Tax Professional Franchise. We were voted the best one in 2019 and ranked second in 2020. We are very pleased with the result and a very big thank you goes to all of our loyal and valued clients. It gives our team a lot of encouragement and joy to continue to thrive and help you all at our best capacity. Again thank you for your trust in us.
Have a nice day ahead Kervin and team  The RBA has announced that the cash rate will remain unchanged for July with the rate remaining at 0.25%.
The RBA is mindful of rising concerns around unemployment post-JobKeeper, falls in housing and home loan approvals, decreasing property values and decreasing credit growth. The RBA maintains the stance that negative interest rates are not the best option for the economy at this point. If the COVID-19 crisis is affecting your financial situation, please get in touch so we can formulate a plan to manage your loan repayments during these unprecedented times. With lenders continuing to offer very competitive rates, we can help review your situation to ensure you have the right loan for your circumstances. If you'd like to chat about the best way to manage your mortgage as the COVID-19 crisis continues to unfold, please don't hesitate to give us a call.  If you have been thinking about building a new home or carrying out an extension or renovation, now might be the time to meet with me and work through your options.
The Federal Government's new $680 million HomeBuilder program announced on 4 June 2020 makes available $25,000 grants to help build or substantially renovate your home. On top of this, the West Australian Government unveiled a $117 million Building Bonus scheme to provide homebuyers who build new houses with a $20,000 grant. How does the federal government's HomeBuilder scheme work?*
How does the WA government's Building Bonus scheme work?*
We are here to help. If you're a first home buyer, there are a range of first home buyer and state government grants, stamp duty concessions and rebates as well as the federal First Home Loan Deposit Scheme and First Home Super Saver Scheme that are available and work in conjunction with both the HomeBuilder and Building Bonus packages. If you would like to discuss how you could take advantage of these programs, either for an extension or renovation on your existing home or to build a new home, please feel free to get in contact.  The cash rate decision for June has been announced by the RBA with the rate unchanged at 0.25%.
The Bank withstood calls for further reductions, with some commentators suggesting negative interest rates remain a future possibility. Whilst the RBA will be mindful of concerns around the rising value of the Australian dollar and its impact on exports, reductions in property prices and uncertainty around employment post JobKeeper, it stuck by its view that a rate of .25% is an appropriate floor. If the COVID-19 crisis is affecting your financial situation, please get in touch so we can formulate a plan to manage your loan repayments during these unprecedented times. With lenders currently offering very competitive rates, we can help review your situation to ensure you have the right loan for your circumstances. If you'd like to chat about the best way to manage your mortgage as the COVID-19 crisis continues to unfold, please don't hesitate to give us a call.  If you're not sure if an ATO interaction is genuine, don’t reply to it. Instead:
Do not provide the requested information and be reminded that JobKeeper payments are only made to employers. Source : ATO Below are the links to two article publish by the www.smallbusiness.wa.gov.au/ . They are both very useful to read. If you need any help with the above. Feel freet to contact the office.   Extension of time to enrol for the JobKeeper schemeThe Australian Commissioner of Taxation has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.
If you enrol by 31 May you will still be able to claim for the fortnights in April and May, provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight. For the first two fortnights (30 March – 12 April, 13 April – 26 April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by the end of April. You can enrol and claim for JobKeeper earlier if you choose. For example, you can enrol by the end of April to claim JobKeeper payments for the two fortnights in April. Source ATO  ATO announces extension for wage payments
The ATO has just announced that it has extended the time in which employers need to pay employees for JobKeeper fortnights 1 and 2 until 8 May 2020. One of the key requirements of the JobKeeper Scheme is that employers must first pay their employees before they can apply to receive JobKeeper Payments. Originally, a concession was available that allowed employers to make the payments for JobKeeper fortnights 1 and 2 by 26 April 2020 (being the end of fortnight 2). The ATO then extended this to 30 April 2020. However, under this new announcement, a further extension has been granted until 8 May 2020 providing employers with additional time to ensure they have paid each eligible employee $3,000 for JobKeeper fortnights 1 and 2. As a warning, employers must be aware that, despite the fact they can now pay their employees as late as 8 May 2020 and still be eligible for JobKeeper Payments for fortnights 1 and 2, they are still required to pay their employees a further $1,500 by 10 May 2020 in relation JobKeeper fortnight 3 (which ends on the same date). At the current time, no extension to this date has been announced, and it would be unwise for employers to anticipate that there will be one. Reference can also be made to the following: ATO website https://www.ato.gov.au/general/JobKeeper-Payment/ Assistant Treasurer’s media release https://ministers.treasury.gov.au/ministers/michael-sukkar-2019/media-releases/jobkeeper- payment-extension-help-business-cashflow-0 Source NTAA  One of the main concerns for employers wanting to enrol for the JobKeeper Scheme is that they have to make the $1,500 payments to employees before they are eligible to receive the JobKeeper Payment. For many employers, this is simply impossible.
Yesterday, the Treasurer (Josh Frydenberg) spoke with the ‘Big 4’ banks and they have agreed to establish dedicated Hotlines for employers to call in relation to accessing bridging finance. Those Hotline numbers are: Westpac - 1300 731 073 NAB - 1800 562 533 (1800 JOBKEEPER) CBA - 13 26 07 ANZ - 1800 571 123 Source NTAA  If you have been financially affected by COVID-19, you may be able to access some of your superannuation early.
Eligible citizens and permanent residents of Australia or New Zealand can apply for up to $10,000 in 2019–20 and up to a further $10,000 in 2020–21. Eligible temporary residents are able to apply once to access up to $10,000 of super in 2019–20. Applications can be submitted online through myGov:
On this page:
EligibilityEligibility:
It is important that you assess your eligibility accurately. We are administering this measure on behalf of all Australians and will manage the eligibility criteria with strict guidelines to ensure we can support those financially affected by COVID-19. There are penalties for making false and misleading statements. You can't access your super early for a dependant. If your dependant is financially affected by COVD-19, they must apply themselves. You can only submit one application for COVID-19 early release of super per financial year. You are still able to apply for COVID-19 early release of super if you have previously accessed your super early in other circumstances. Implications of accessing your super earlyAccessing your super early will affect your super balance and may affect your future retirement income. Withdrawing superannuation may also affect your:
See also:
You can only submit one application for COVD-19 early release of super in each financial year:
The application form on myGov will display all your superannuation accounts, as reported to us by your funds. You can request the release of your super from up to five super accounts. For example, if you want to receive a total of $10,000 you can request $5,000 from one fund and a second $5,000 from another fund. This must be done within one application form. Current super balanceWe encourage you to check your fund's online portal to confirm your current accurate balance. Your current super balance may be lower or higher than what is shown in the application form. The amount shown in the form is the amount last reported to us and your fund does not need to report your current balance to us. You can apply for an amount higher than the balance shown in the application form (up to $10,000), provided your current balance is sufficient. This includes if a 'nil' amount is showing in the application form. For example, if you've confirmed your fund balance is $8,000, but the amount showing in ATO Online is $0.00 you can still apply for a release up to $8,000. If you apply for an amount greater than your current balance, your fund will release the amount currently available (up to $10,000). For example, if you request $8,000, but your current balance is only $7500 your fund will release $7500. Application tipsYou can only submit one application for COVID-19 early release of super per financial year. To make the application process as smooth as possible, please check the following information is correct before you submit your application:
An application can't be withdrawn or cancelled once it has been submitted. If you no longer want the release of your super, you will need to contact your fund. Next step: After you applyIt will take us up to four business days to process your application and send you a letter of approval or rejection to your myGov Inbox. Once your application is approved you do not need to contact us or your fund. Your fund will make the payment to you without you needing to apply to them directly. The Australian Prudential Regulation Authority (APRA) have issued guidance to super funds and expect payment to be made to members within five business days. However, this time may increase where funds need to contact you to clarify information. More information can be found on APRA's websiteExternal Link. If your fund is a SMSF, you will need to let them know that you have received the determination so they can make the payment to you. Be aware of scams and schemesEarly access of your super is a free government service to help and support you during the impacts of COVID-19. Be aware of scams and schemes asking you to pay to release your super. We’re concerned about scams or schemes where people:
Source : ATO  Key dates
Source : ATO  JobKeeper payments - Everything you need to know now!
Businesses, charities and not for profit entities impacted by the Coronavirus can access the Government’s JobKeeper Payments subsidy to continue paying their employees. The key points include:
To receive the JobKeeper payment, employers must:
 The Australian Taxation Office (ATO) is announcing special arrangements this year due to COVID-19 to make it easier for people to claim deductions for working from home.
The new arrangement will allow people to claim a rate of 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses. Multiple people living in the same house can claim this new rate. For example, a couple living together could each individually claim the 80 cents per hour rate. The requirement to have a dedicated work from home area has also been removed. Working from home claims for 1 March to 30 JuneThere are three ways that you can choose to calculate your additional running expenses for the 1 March – 30 June period:
To claim a deduction for working from home, all of the following must apply:
Expenses you can claim If you work from home, you will be able to claim a deduction for the additional running expenses you incur. These include:
The shortcut method rate covers all deductible running expenses, including:
If you use the shortcut method to claim a deduction for your additional running expenses, you cannot claim a further deduction for any of the expenses listed above. You must keep a record of the number of hours you have worked from home as a result of COVID-19. Examples are timesheets, diary notes or rosters. If you use the shortcut method to claim a deduction and you lodge your 2019-20 tax return through myGov or a tax agent, you must include the note ‘COVID-hourly rate’ in your tax return. Records you must keepIf you use the shortcut method, you only need to keep a record of the hours you worked at home, for example timesheets or diary notes. If you use the other methods, you must also keep a record of the number of hours you worked from home along with records of your expenses Complimentary of the Australian Tax office as at 08/04/2020= More informationFor more information, visit ato.gov.au/home or speak to us  The key points include:
Temporary Relief for Financially Distressed Individuals and Businesses On 24th March 2020, the Federal Government’s Coronavirus Economic Response Package Omnibus Act 2020 came into force. This legislation aims to provide temporary relief for financially distressed businesses by lessening the threat of actions that could unnecessarily push them into insolvency and force the winding up of the business. The changes only apply for the six months from 25th March 2020 to 25th September 2020. The four main differences are: 1. Changes to statutory demands made by creditors The minimum amount for which a creditor can make a statutory demand has increased from 21 days to 6 months. Also, the response time for a debtor responding to a statutory demand has increased from 21 days to 6 months. 2. Individual bankruptcy The minimum debt that allows a creditor to initiate bankruptcy proceedings against an individual debtor has increased from $5,000 to $20,000. Also, an individual now has six months, instead of 21 days, to respond upon receipt of a bankruptcy notice. 3. Protection for director’s liability for trading while insolvent. Directors have temporary relief from any personal liability for trading while insolvent. 4.Treasurer’s temporary flexibility to amend the Corporations Act Amending the Corporations Act gives the Government power to provide targeted assistance from the provisions of the Act to deal with unforeseen events that ariseas a result of the Coronavirus health crisis. Before the advent of technology, man had to go extra mile, put in more effort to accomplish certain things. In the area of business, man had to make use of their bare hands, simple crude implements to produce things. Doing these was quite stressful as man had to put in a lot of effort, time and energy to create things. In modern day, technology has ensures that man can do things with ease and at a very fast rate. To ensure that a business is successful, it is advised that it makes use of technology to its advantage. The use of technology in a business is very advantageous as it would ensure that goods and service are offered to customers with ease and at a very fast rate. With technology, man does not have to be involved in many things as there are various devices that would handle different aspects of a business with ease and efficiently.  Business enterprises are set up to make profit. These business enterprises go through different means to ensure that their goods and services are purchased by people that would in turn pay for them. Being successful is not only about making sales as business enterprises need to take cognizance of the amount of money spent by them. It is very important for a business enterprise to cash flow in order to know the amount of money entering and leaving it. If a business enterprise is making large profit, but spends more than what it earns, it would run at a loss. Hence, business enterprises are advised to keep track of their cash flow by making use of cash flow worksheet. Using the cash flow worksheet would enable a business enterprise keep proper records of things. The worksheet has been a created a way that would be easy for a business enterprise to keep record of its cash flow  Before a business enterprise takes any risk, it should first understand the risk and the reward attached to the risk. In understanding a risk, a business enterprise has to know what the risk entails, its advantages and disadvantages. Furthermore, a business enterprise should weigh the advantage and disadvantage of taking a particular risk. If it is seen that the level at which a particular risk would yield positive result is not convincing, its best such risks should not be taken. A business enterprise should know and understand a risk and its reward before taking such risk. It could end up killing the business enterprise. A business enterprise should not just jump on a risk without understanding it and fully knowing the things attached to it. A business enterprise is very fragile and a little mistake could ruin what has been in existence for many years.  Business enterprises are involved in providing various s items and materials to customers. The main aim of providing the products to customers is to make profit, though it is also their desire that customers are fully satisfied with the goods and services offered to them. Business enterprises are involved in various activities and basically do not have enough time to be involved in some other activities. Hence, it is not all activities that should be accepted by a business enterprise. Better still, it can shift or postpone the work. Business enterprises should be able to place priority on their work as they cannot be involved in various activities at the same time. They can just let go of some work, shift or postpone it. The activities that are very important should be handled first and such other activities can be handled at a later date.  The basic reason for setting up a business enterprise is to make profit. It is the goal of every business enterprise to make gains from the goods and services offered to the public. In order to ensure that the public keeps buying a product, business enterprises ensure that the products and services offered to the public are of great quality. For a business to be successful and profitable, it has to be very focused. Being focused involves a business not losing its head or the reason for being set up. Furthermore, distractions are to be ward off to ensure that the ultimate goal is achieved. When a business enterprise is focused, it would be able to withstand any obstacle or challenge that comes its way. Staying focus would make a business very successful and profitable. It makes a business enterprise prepared for anything, obstacle, challenge and difficulty.  Business enterprises are created to make profit. It is their aim to make profit by ensuring that the public purchases their goods and services. To ensure that the public keeps patronizing a business enterprise, it ensures it provides quality goods and services needed by the public. Before a business is setup, it has a goal it wants to achieve. This basically referred to as the prize. When a business enterprise has been setup, it has to ensure that it is always focused in the prize. Focusing on the prize would ensure that it scales through any difficulty or challenge that comes its way. It is quite challenging for a business to be successful as it would face various obstacles. If a business enterprise does not focus on the prize, it could give up after being hit by a challenge or even lose its way. A successful business is a business that never let lost its focus on the prize.  Business enterprises are created to make profit. It is the objective of a business enterprise to make sales from the goods and services it offers the public. For a business enterprise to keep growing and excelling, it has to make profit that would be used to invest further in the business. Business enterprises have to ensure that they are able to convince the public to patronize them. in doing that, they have to show their passion to the public. A business enterprise has to show its passion being ready to aid and help the public with their goods and services. When the public see how passionate a business enterprise is, they would patronize the business enterprise. Showing passion makes the public see what a business enterprise has in stock for them and why they should patronize the business enterprise. Successful businesses find means of making the public know how passionate they are.  Business enterprises are involved in providing various goods and products to customers. in most cases, these products are produced by some business enterprises. All thanks to technology, production process has become easier, effortless and faster as things can be produced by making use of equipment. Equipment is seen as assets of a business enterprise as they are needed for production. Money is needed to purchase equipment and also maintaining it. Spending money on equipment could drain the money made by business enterprises as large amounts of money can be spent. To cut down expenses on equipment, it advisable for a business enterprise to either sell or lease idle equipment There is some equipment owned by business enterprises that are not needed. Instead of spending money on the equipment, it can be sold or leased out. With this, money would be made from that equipment. A business enterprise is meant to spend on only things that are needed.  |
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