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.
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:
Assistant Treasurer’s media release
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
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:
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:
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.
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
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: