lawson-accounting

ASIC Annual Company Requirements

admin@lawsonaccounting.com.au (Daniel Foelz) — Tue, 04 Mar 2025 06:20:23 GMT

ASIC Annual Company Requirements: What You Need to Know

Every company registered in Australia must meet annual compliance obligations set by the Australian Securities and Investments Commission (ASIC). One of the key requirements is the annual statement, which ASIC issues to companies shortly after their annual review date - typically the anniversary of their registration.

What is an ASIC Annual Statement?

Shortly after a company’s annual review date, ASIC sends out an annual statement. This document includes:

• Company’s Current Details: A summary of the company’s information as recorded by ASIC.

• Annual Review Fee Invoice : An invoice detailing the fee required to maintain the company’s registration.

• Corporate Key: A unique identifier that allows secure access to ASIC’s online services for updating company information.

Companies must carefully review this document to ensure their information is correct and take action to maintain their registration.

Annual Obligations for Companies

To remain compliant and avoid penalties, companies must complete the following steps each year:

1. Pay the Annual Review Fee

ASIC requires companies to pay a yearly fee to maintain their registration. The amount varies depending on the type of company (e.g. Private Company or SMSF Trustee Company). Payments must be made by the due date to avoid late fees and possible deregistration. These fees are included within our invoice issued to you.

2. Verify and Update Company Details

Companies should check their annual statement to confirm that all details - such as registered office address, directors, and shareholders are accurate. If any changes are needed, they must be updated with ASIC by contacting our office.

3. Pass a Solvency Resolution

Within two months of the annual review date, company directors are required to pass a solvency resolution. This resolution confirms that the directors have reasonable grounds to believe the company can pay its debts as they become due. While the resolution doesn’t need to be lodged with ASIC, it must be documented and kept with the company’s records.

Consequences of Non-Compliance

Failing to meet ASIC’s annual requirements can result in penalties, late fees, and even company deregistration. It is crucial for companies to adhere to these obligations to maintain their good standing and ensure uninterrupted operation.

What Happens If You Don’t Receive Your Annual Statement?

If the annual statement isn’t received within a week of the review date, companies should contact ASIC to avoid compliance issues and potential penalties.

Deregistration Considerations

If a company is no longer operating, it may apply for voluntary deregistration to avoid ongoing fees and obligations. Contact our office to discuss.

Stay Compliant to Avoid Penalties

By staying on top of annual reviews and ensuring all obligations are met on time, companies can remain in good standing and avoid unnecessary complications.

For comprehensive information on annual statements and company obligations, refer to ASIC official website or contact our office.

JobKeeper Update 27/07/2020

Sun, 26 Apr 2020 22:42:47 GMT

Details on Treasury update to the JobKeeper Payment

Hi All,

The JobKeeper payment is the largest Government subsidy payment in the history of Australia.

Keeping that in mind, it has been one of the quickest legislation to be passed through parliament. Because of this the Government has had to update the legislation as issues come to hand. This has proven to be difficult for us as we are limited to what the current legislation is at the time of giving advice. So we ask that you please keep this in mind.

Over the weekend, the important pieces of the latest update is as follows:

16 & 17 YEAR OLD EMPLOYEES

• These employees are not eligible for the JobKeeper payment if they are not classified as financially independent.

• Therefore full-time students will not be eligible for the JobKeeper payment.

• Because this adjustment to the legislation has come in late, it is implied that the Government will honor payments made in April only (to bring their pay up to $750/wk)

• So please be careful with these employees moving forward.

EMPLOYEES EMPLOYED THROUGH A SPECIAL PURPOSE ENTITY, RATHER THAN AN OPERATING ENTITY

• The Government has also addressed this circumstance and suggested that the turnover for the operating entities be considered as an alternate test for turnover rather than the payroll entity.

• This one still raises some questions, so if you are in this category please contact our office for further clarification.

REGISTRATION DATE EXTENDED UNTIL 31st MAY 2020

• The Government has also extended the registration period for payments starting from the 30th March until the 31st May (previously was the 30th April).

• However please keep in mind, in order to receive payments for wages paid in the month of April, you will still need to show $ 1,500 minimum fortnightly payments have been made through both months.

• April is the only month that you can pay ‘catch up’ payments to prove the $ 1,500/fortnight payments.

MyGovID Setup Instructions

Wed, 15 Apr 2020 07:39:31 GMT

Details on how to set up your MyGovID (To apply for JobKeeper on the ATO Business Portal)

MyGovID is your digital identity which makes it easier to prove who you are online - it's like the 100 point ID check but on your smart device. It has replaced the AusKey and allows you to access ATO data online as well as other online government services. Please note that your myGovID is different to myGov. MyGovID lets you prove who you are when using government online services whereas myGov lets you select and link to government online services.

What you will need:

1. A smart device with; IOS 10 or later or Android 7.0 or later

2. An email address – it should NOT be a shared work address like ‘admin@...’

3. To be 15 years or older

Step 1 - Set up MyGovID

This is where you create your myGovID Profile (Please be aware that this is a different profile entirely to your myGov account and is NOT associated in any regard) . So you may have myGov access but not a myGovID.

a. To set up myGovID you need to download the myGovID app on your smart phone (Available on iOS and Android OS) the app is a green thumbprint with myGovID on it.

b. Once in the app, you will be prompted to set up your profile. Please follow the on screen instructions at this point. You will need to enter your full name (Per ATO Records), DOB and email address (Can be a work email or a private email). At this point your identity strength will show ad Basic.

c. You then need to fill out the section that asks for 2 forms of government issued identity documents – this can include License, Medicare, Birth Certificate or Passport.

d. Once you have all this entered your app should show that you then have Standard identity strength – you need this to be able to access any business on the portal.

Step 2 – Linking Primary Contact

(For clients trading in a Trust with Corporate Trustees only – Sole Traders, Companies and Individuals as Trustees please skip to step 3)

To get your Trust with a Corporate Trustee linked to your MyGovID account you first have to register yourself as a primary contact on each entity with the ATO’s Relationships Authorization Manager (RAM) Team. To do so you will need to contact the RAM team directly on 1300 287 539 and then select Option 3 when prompted. You will then need to advise the operator that you wish to link yourself as the primary contact to your Trust’s that have a corporate trustee. They should then be able to process this for you. So you need to advise that you require “Your Company Pty Ltd as Trustee for The Your Trust” linked to yourself.

Step 3 - Set up Relationships Authorisation Manager (RAM)

a. This is where you link each entity to your MyGovID

b. You will need to go to authorisationmanager.gov.au and login with the account that you just set up

c. You then will need to click on ‘Link your Business’ type in your address and click continue.

d. A list of your entities should come up allowing you to then select all and attach them to yourself.

e. This is then done and you should be able to login into the business portal using MyGovID then and see all entities.

JobKeeper Payment Legislation Summary

Mon, 13 Apr 2020 07:55:48 GMT

Update to JobKeeper details after legislation on 8th April

Entitlement

There are only two points to be entitled to the JobKeeper payment as a business. These being that you:

• Must have carried on a business in Australia on the 1st March 2020

• Must have satisfied the decline in turnover test (30% for most businesses or an Alternative test per below)

Carried on a business

This means that you don’t have to have employed staff. Business owners are eligible

This is limited to one person (so no more than one business owner is eligible). It does not matter if both yourself and your spouse work in the business, only one business owner will be eligible for the payment.

You can also be trading in a Trust, Sole Trader, Partnership or Company to be eligible (i.e. not just for sole traders).

If you are in this category, the eligible person is as follows:

Sole Trader The entity (yourself)

Partnership - One partner in the partnership

Trust - An adult beneficiary of the Trust (no children)

Company - A shareholder in or a director of the company

Turnover Test

30% decline in Turnover

The main point here is to you need to be able to show a 30% decline in turnover (total sales as you would report on your BAS) – so all GST reportable income. To calculate the 30% decline – it is taken from the comparative Month/Quarter in the 2019 year. For example, if your sales in April 2019 was $100,000 – 30% of this is $30,000, so sales for April 2020 would have to be less than $70,000 to be eligible. The turnover is your ‘GST Turnover’. Therefore, if you report your BAS on a cash basis (sales received by you), this is the basis that you must report your test period on. If Accruals (sales incurred/invoiced, but not necessarily paid), then your test period must be Accrual sales.

Decline in Turnover – Test periods

Ok, so you must demonstrate that you have had a 30% or more decline in turnover for a specific test period. The tests periods can be for a calendar month (not 4 weeks) and can only be for a period after 30th March 2020 (so the full months of either March, April, May, June, July, August, September 2020). Or a quarter beginning 1st April 2020 (June Qtr) or 1st July 2020 (September Qtr).

The big thing here is that you only have to show a single month (or quarter) decline to be eligible from that month (or quarter) onwards. So, if you don’t show decline in March don’t worry – you may show it in say May. If this is the case you will be eligible for May, June, July, Aug & Sept payments. You don’t have to pass the test again to get the future months payments.

Decline in Turnover – Alternative decline period

If your business does not have a realistic test period, for example your business was new in the 2020 year, or your business suffered in the 2019 year say from drought or bushfires or something else that was out of your control, you can apply to the Commissioner to use an alternative test period. This may be the 2018 year or a prior month (if your business is new).

Time period of JobKeeper payments

Starts on the pay week beginning 30th March 2020 and will end on the 27th September 2020.

Eligible Employees

These are as follows:

• Individuals who is employed by the entity at any time in the fortnight

• They must have been aged 16yrs or over on the 1st March 2020 and be an Australian resident (or hold a Subclass 444 special category visa)

• They must have been employed by your business on the 1st March 2020 (so doesn’t cover new employees)

• If they are casual employees, they must have been employed by the business for 12 months prior to the 1st March 2020.

• They employee can not be nominated for the payment more than once (so no other employer is receiving the payment for this employee).

• They also can’t be on Parental Leave, Dad & Partner pay, totally incapacitated for work throughout the fortnight (no sick leave in the fortnight) or receiving payments under Workcover.

How Much and When Is It Paid?

Amount

We all know this is $1,500 per employee (including the business owner) per fortnight.

This is the minimum and the maximum amount. Therefore, the amount of wages paid to an employee must be $1,500 per fortnight.

If you do not pay your employee this amount, you will not be entitled to claim the JobKeeper payment AT ALL for that employee (You cannot get portions of this amount).

Therefore, you must ensure that your employee’s pays are ‘topped up’ to the $1,500 a fortnight pay.

Understand this is PER FORTNIGHT not $750 per week. The pays can vary per week, so long as the fortnight’s total pay add up to $1,500.

When is it Paid?

The JobKeeper payment will be paid to you shortly after the end of each calendar month (so first payment beginning of May, another beginning of June, then July, August, September and finally October 2020).

The payments will include the fortnights ended within that calendar month. These will be paid in arrears, meaning that you must register what you have paid your employees the month before (usually via your Single Touch Payroll program) to then get the payment made to you the following month. You will have to have cashflow available to you in the month of April to cover these pays in April.

You must notify your employee in writing

You must notify your employee in writing that you have given their details to the ATO and that you are enabling that employee to be eligible for the JobKeeper payment.

The employee is also required to provide a notice to their employer agreeing to the following:

• To be nominated by the employer as an eligible employee under the JobKeeper Scheme

• That they confirm they have not agreed to be nominated by another employer; and

• That they do not have permanent employment with another employer if they are employed as a casual employee

I have attached a sample of wording that I would use for this purpose.

Note – it is up to the employee which employer they chose to receive the JobKeeper payment from (it is not the employer’s choice).

Also, as a side note, the payment will come directly to you as an employer (not to the staff at all). It is a reimbursement payment to you.

The JobKeeper fortnights

The eligibility is per the below fortnights. If your fortnightly pays don’t fall on these end dates, then you may have fortnightly pays that are ineligible for the JobKeeper payments (as you need to have a full fortnight of pay included). This may be a little messy. It may be easier to change your fortnightly wage periods to run in line with the ATO’s fortnights. I would need to find out more on how strict they are with this one.

April Fortnights - 12/04/2020 & 26/04/2020

May Fortnights - 10/05/2020 & 24/05/2020

June Fortnights - 7/06/2020 & 21/06/2020

July Fortnights - 05/07/2020 & 19/07/2020

August Fortnights - 02/08/2020, 16/08/2020 & 30/08/2020

September Fortnights - 13/09/2020 & 27/09/2020

Superannuation Obligations

As an employer, you are still required to pay superannuation on your employee’s gross ordinary earnings even if payments are made under the JobKeeper arrangements.

Superannuation obligations do not form part of the JobKeeper minimum payment of $1,500.

If your employee in a normal circumstance earns under $1500 per fortnight and you have increased their wages to a minimum $1500 per fortnight. It is up to the employer if they pay superannuation on the extra amount that you pay the employee to be eligible for the JobKeeper payment. For example, if their normal fortnightly pay is $1,000 gross and you have increased their pay by $500 per fortnight to be eligible for the JobKeeper payment, you do not have to pay superannuation of the extra $500 (you do however need to pay the superannuation on the normal $1000 gross payment).

Overpayments

There is details in the legislation for the requirement to payback any JobKeeper payments that you have received but may not have been eligible for. This could happen because the proof of your reduction in income is based on your estimates for April whereas actuals may not have resulted in a loss of turnover.

You could also be required to payback the payments if the Commonwealth sees fit that you contrived schemes aimed at falsely making an entity entitled to the payment. We strongly believe that the ATO in the coming year will actively target audits towards these businesses.

The ATO will charge interest and backdate this interest to the first payment date of the JobKeeper payments.

Reporting Requirements

The ATO will require you to report on the current month’s turnover together with an estimate of your future months projected GST turnover. If you anticipate your future months turnover to increase, this does not mean you will not be eligible for the JobKeeper payment. The future months predictions are for the Commonwealth to ascertain the economic impact of the Coronavirus on a monthly basis across Australia.

Registration

If you believe that you are entitled, you need to register with the ATO (registration is via the ATO’s website at www.ato.gov.au). You can not wait until the end of the periods to register – as the payments are meant to assist with your business throughout the period – not after the end of the period.

We will have a look at each of our clients that we prepare BAS’s for to let you know if we believe that you are entitled or not. If we don’t prepare your BAS’s and have questions, please let us know. The ATO has not yet released the actual form that you will be required to complete yet. Once this becomes available (should be very soon) we will let you know – but we anticipate that once you are registered the ATO will automatically issue you with the required form.

Updates to PAYG Withholding Credits

Tue, 31 Mar 2020 07:32:00 GMT

Update to prior announcements regarding PAYG Credits on BAS's

What I am talking about here is the credit on your PAYG Withholding for employers (which every employer will get).

FOR QUARTERLY LODGERS THAT THEIR MARCH 2020 PAYG WITHHOLDING IS LESS THAN $10,000

What you will get is:

1. $10,000.00 as a credit on your ATO Activity Statement Account upon lodgement of your BAS (or the 28th April)

2. $5,000.00 as a credit on your ATO Activity Stement Account upon lodgement of your June 2020 Qtr BAS in July 2020 (or the 28th July)

3. $5,000.00 as a credit on your ATO Activity Statement Account upon lodgement of your September 2020 Qtr BAS in October 2020 (or 28th Oct)

It doesn’t matter what you report on your June & September Qtr’s BAS’s – so long as your business is still active.

_____________________________________________________________________________________________________________________________________________

FOR QUARTERLY LODGERS THAT THEIR MARCH 2020 PAYG WITHHOLDING IS MORE THAN $10,000.00

What you will get is:

1. A credit for 100% of your PAYG Withholding reported for the March Qtr due April 2020 – Lets say for example its $12,000.00

2. I think a credit will come through of 100% of your PAYG Withholding reported for June Qtr (eg say $13,000) plus and additional credit of 50% of the March & June 2020 Qtr PAYG Withholding due July 2020 – so this would be $13,000 + 12,500

3. A credit of 50% of the March 2020 & June 2020 Qtr PAYG Withholding per above on the September 2020 BAS due Oct 2020 – so this would again be $12,500 – bringing the total to $38,000 as an example.

It doesn’t matter what you report on your June & September Qtr’s BAS’s – so long as your business is still active.

_____________________________________________________________________________________________________________________________________________

FOR MONTHLY LODGERS

What you will get is (get ready for this ride):

1. A credit of 300% of your March 2020 months reported PAYG Withholding due April 2020 (so whatever March’s month of PAYG Withholding was x 3 will be your credit)

2. A credit of 100% of April 2020 months PAYG Withholding for April 2020’s IAS due May 2020

3. A credit of 100% of May 2020 months PAYG Withholding for May 2020’s IAS due June 2020

4. A credit of 100% of June 2020 months PAYG Wihholding for June 2020’s BAS due July 2020

5. A credit of 25% of all of the above added to June 2020’s BAS due July 2020

6. A credit of 25% of all of the above for July 2020’s IAS due Aug 2020

7. A credit of 25% or all of the above for Aug 2020’s IAS due Sept 2020

8. A credit of 25% of all of the above for September 2020’s BAS due October 2020

The first 4 above is maximized at $50,000 – so the credits stop at $50,000 and then the following four will be maximized at $12500 per quarter.

*Disclaimer - All information posted in this update is true and correct at the time of posting. Legislation surrounding this situation is constantly changing. We will provide additional updates as required upon further government announcements or legislation changes. *

JobSeeker Payment Announcement

Tue, 31 Mar 2020 02:30:03 GMT

Federal Government JobSeeker Details

WHAT IS IT

The JobSeeker Payment is financial help if you’re between 22 and Age Pension age and looking for work. It’s also for when you’re sick or injured and can’t do your usual work or study for a short time. This payment was previously known as Newstart Allowance.

ELIGIBLE INDIVIDUALS

• Must be between 22 years and Age Pension age (66 years)

• Your income is under the test limits (Mentioned below)

• You meet residence rules (Basically are a permanent Australian resident)

ELIGIBLE CRITERIA

You may get a payment in any of the following circumstances. These include if you’re:

• not able to work or don’t have work

• in isolation or hospitalised

• caring for children

Depending on the payment you’re claiming, your parent’s or partner’s income may affect your eligibility to claim a payment. Centrelink has also waived the ordinary waiting period and the need for employment separation certificates or proof of reduced hours for the time being. The assets test for JobSeeker Payment, Parenting Payment and Youth Allowance has also been temporarily waived.

INCOME LIMITS TEST

Income limits vary depending on your family situations. We have listed the most common situations below however if none of these apply to you please visit the link below. Please note that JobSeeker payments will reduce to nil once your income reaches the amounts mentioned below per fortnight.

• Single - No Kids | $1,086.50 Income limit per fortnight

• Single - With Kids | $1,673.25 Income limit per fortnight

• Partnered | $993.50 each Income limit per fortnight

https://www.servicesaustralia.gov.au/individuals/services/centrelink/jobseeker-payment/how-much-you-can-get/income-and-asset-limits

HOW MUCH WILL I BE PAID?

Unfortunately we cannot provide you this information as every circumstance is different for each individual. However if you are Single with no Kids and do not have a job you will be entitled to the full amount per fortnight of $565.70 plus the additional $550.00 coronavirus supplement making your payment $1,115.70 per fortnight .

HOW CAN I CLAIM?

You can apply to Centrelink for the JobSeeker Payment which will automatically include the additional Coronavirus supplement of $550.00 online through myGov ( my.gov.au ) using a Centrelink online account.

JobKeeper Payment Announcement

Mon, 30 Mar 2020 10:01:16 GMT

Federal Government JobKeeper Announcement

Right, I’ll get straight into it as this one creates more questions than answers

ELIGIBILITY AS AN EMPLOYER

• Turnover must have reduced by more than 30% relative to a comparable period a year ago (of at least a month). So if you want to claim the JobKeeper payment for the month of March 2020, you have to prove that March 2019 month you turned over more than 30% compared to March 2020. It is not a comparison of the prior month or longer period of time, but of the same month or same longer period in 2019.

• Sole traders who do not employ are eligible (so long as their turnover has dropped per above)

ELIGIBLE EMPLOYEES

• Must be current employees (including those that are stood down or re-hired). Which means if you have already stood down (not terminated employees) you can put these employees on the payment.

• Were employed by the employer at the 1st March 2020

• Are full-time, part-time or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1st March 2020 – so must have been employed before the 1st March 2019).

• Must be at least 16 years old, an Australian citizen with a permanent visa and is not in receipt of the JobKeeper Payment from another employer.

OBLIGATIONS OF EMPLOYERS

• You must pay the entire payment as a gross payment to the eligible employee. This means that if you employ someone and they normally don’t earn $750/week gross (before tax) – they just got a pay rise! You must pay them the entire amount as a gross wage (just to confuse you, if you don’t normally pay them this, you only have to pay super on what you would normally pay them – don’t think payroll programs are going to be able to calculate this, but we will see how we go)

• You have to notify the employee if they will be getting the JobKeeper payment (even though it comes through you, you have to let the employee know they are a registered employee for the payment).

• You will also have to provide monthly updates to the ATO regarding eligibility for employees and turnover eligibility.

WHEN DO PAYMENTS START

• First payments won’t come through until the first week of May.

• It looks like it might be a monthly application for the payment (i.e. for the Month of March, payments in May – the month of April payments in June – this is just my guess at this stage)

HOW TO REGISTER

Go to the ATO website – there is a button down the bottom. Or here is the link (Be prepared – this site is going to crash):

https://www.ato.gov.au/general/gen/JobKeeper-payment/

OUR SUGGESTIONS

• You would have to have your Activity Statements and income tax returns lodged up to date to get this.

• You would also need to be registered (you should be registered anyway) for single touch payroll so the ATO can get up to date information on what you are paying employees.

• Be prepared for audits down the track on this, so don’t be greedy.

• Make sure you register now for this, it is going to take the ATO time to get their systems right to cope with this.

WHAT I DON’T KNOW

• If payment will go to your bank account or as a credit on your ATO Account.

• If turnover can be reported as Cash or Accruals to prove the 30% downturn (some businesses might not fall in turnover, but are not being paid regularly as a result of the virus which will result in bad debts (this is what I will hopefully find out for you).

• Why they put dumb-arse reporters in front of the Prime Minister that asks dumb-arse irrelevant questions.

State Announcement 1

Mon, 30 Mar 2020 02:39:45 GMT

State Government Business Loan Announcement

Hi All,

I have had a lot of questions regarding the $250k state government business loan.

I have summarised the state governments $250,000 business loan guidelines below:

Can be used for the following reasons:

• Paying employee wages

• Paying Creditors and existing business loan and equipment finance payments

• Paying rent and rates

• Buying goods, including fuel, for the purposes of carrying on the business

Can’t be used for the following reasons:

• Refinancing existing business loans or equipment finance (so not a way to get a cheap loan)

• Purchasing new equipment or other assets (so not a way to invest in equipment etc)

To be eligible

• Must be a business registered for GST

• Have one or more full-time employee’s

• Been in business since 1st July 2017

• Have suffered a loss of income as a result from COVID-19

If you believe that you are eligible then I encourage you to begin the application process.

Please be aware before you begin:

• You will have to have your 2019 financials and tax returns and BAS’s lodged up to date.

• Funding is only open until 25th Sept 2020 and is assessed in a date order format (i.e. first in first assessed)

• Funding can be audited by the State Government at anytime.

Applications can be submitted at:

http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme

Stimulus Package 2

Sun, 22 Mar 2020 06:05:00 GMT

Government Stimulus Package 2 Announcement

1. Banking Industry 6 months deferred payments

Firstly, I just want to make a note on the Banking Industry’s announcements to defer small business loans for 6 months. I have had a lot of questions regarding this, so here goes... THIS IS NOT AUTOMATIC AND IS NOT GUARANTEED. This announcement just means that the banks can, if you meet their individual criteria, you MAY be able to defer your small business loans for up to six months. What this means is that you will need to apply to your bank for this. What it doesn’t say is:

• Whether it includes equipment funding…

• Whether they will be charging interest during this period….

• When you will have to pay back the six months deferral (will it be added to end of the loan period or whether they will require catch up repayments, for instance double payments in the six months after)….

These are the questions you will have to ask your bank when you apply for the deferrals. Unfortunately, this is not a blanket deferral and you will need to individually apply for this if you need this. We can’t do this for you. However, it is important that you ask these three points above before you accept what they can offer you. If you have any trouble or need information to support your case here please let us know.

2. State Governments $250,000 small business loan

The Qld State Government is also sprucing their $250,000 small business loans. They have stated can be interest free for up to 12 months. You do usually need collateral for these loans available (usually property to offer as mortgage or possibly equipment). This loan is available through QRIDA. Their website is below. At the moment, it is just a “register of interest” (on the left-hand side of the screen) and then they will contact you with the application process. So absolutely no further information available. I’m not a fan of the State Government, and this is another reason why. http://www.qrida.qld.gov.au/homepage

3. Federal Government Package

Boosting Cash Flow for Employers

FOR QUARTERLY LODGERS THAT THEIR MARCH 2020 PAYG WITHHOLDING IS LESS THAN $10,000

What you will get is:

1. $10,000.00 as a credit on your ATO Activity Statement Account upon lodgement of your BAS (or the 28th April)

2. $5,000.00 as a credit on your ATO Activity Stement Account upon lodgement of your June 2020 Qtr BAS in July 2020 (or the 28th July)

3. $5,000.00 as a credit on your ATO Activity Statement Account upon lodgement of your September 2020 Qtr BAS in October 2020 (or 28th Oct)

It doesn’t matter what you report on your June & September Qtr’s BAS’s – so long as your business is still active.

FOR QUARTERLY LODGERS THAT THEIR MARCH 2020 PAYG WITHHOLDING IS MORE THAN $10,000.00

What you will get is:

1. A credit for 100% of your PAYG Withholding reported for the March Qtr due April 2020 – Lets say for example its $12,000.00

2. I think a credit will come through of 100% of your PAYG Withholding reported for June Qtr (eg say $13,000) plus and additional credit of 50% of the March & June 2020 Qtr PAYG Withholding due July 2020 – so this would be $13,000 + 12,500

3. A credit of 50% of the March 2020 & June 2020 Qtr PAYG Withholding per above on the September 2020 BAS due Oct 2020 – so this would again be $12,500 – bringing the total to $38,000 as an example.

It doesn’t matter what you report on your June & September Qtr’s BAS’s – so long as your business is still active.

FOR MONTHLY LODGERS

What you will get is (get ready for this ride):

1. A credit of 300% of your March 2020 months reported PAYG Withholding due April 2020 (so whatever March’s month of PAYG Withholding was x 3 will be your credit)

2. A credit of 100% of April 2020 months PAYG Withholding for April 2020’s IAS due May 2020

3. A credit of 100% of May 2020 months PAYG Withholding for May 2020’s IAS due June 2020

4. A credit of 100% of June 2020 months PAYG Wihholding for June 2020’s BAS due July 2020

5. A credit of 25% of all of the above added to June 2020’s BAS due July 2020

6. A credit of 25% of all of the above for July 2020’s IAS due Aug 2020

7. A credit of 25% or all of the above for Aug 2020’s IAS due Sept 2020

8. A credit of 25% of all of the above for September 2020’s BAS due October 2020

The first 4 above is maximized at $50,000 – so the credits stop at $50,000 and then the following four will be maximized at $12500 per quarter.

Asset Investments

These have not changed so remain at:

1. $150,000 asset write off for assets purchased between 12th March 2020 and 30th June 2020 (so not for assets purchased before 12th March 2020 – the $30,000 still stands on this one).

2. The 50% initial year depreciation rate (up from 15%) for assets purchased from 12th March 2020 and 30th June 2021.

These aren’t bad and are great in a normal economic environment. However, my estimate is that most businesses owners will have a knee jerk reaction now and be holding money back at this time. Understandably so as we have no basis on how long this will go on for. Generally businesses do try to keep their staff on over purchasing a new car... Anyways... moving on.

Apprentices and Trainees

This remains at 50% of these wages for the period 1st January 2020 to 30th September 2020. Can’t apply for this until April, I’ll forward through the forms once they are released. So this was great – they will cover 50% of our cheapest staff members!!!

Temporary Relief for Financially Distressed Businesses

Not really much here…

Basically, the government is just making it a bit harder for creditors to push businesses into receivership by lifting the thresholds that creditors can issue statutory demands on businesses.

There is also a lift on the personal liability for directors of companies with the ‘trading insolvent’ section of the law being more ‘flexible’. I imagine this would mean if your business does go bankrupt as a direct result of the Coronavirus, they won’t be able to come after personal assets of directors under the trading insolvent law.

Government’s Supporting the flow of Credit

What this means:

The Government will provide 50% guarantee’s for small business loans to banks. This meaning that the small business will only have to provide the other 50% guarantees (by way of property etc).

The Government is also cutting some of the red tape that was enforced by the previous banking royal commission. This is aimed at businesses being able to get loans quicker.

The Government has also made available to the banks $90 billion in funding at a fixed interest rate of 0.25%. So the cost of funding for banks should reduce (therefore this should run through to consumers… Hmmm – we all know that happens all the time…).

Further Help for Individuals and Households

There isn’t much here for anyone unless you are a recipient of Government Payments or want to withdraw your super..:

• Temporary Early Release of Superannuation (up to $10,000). This will also be tax free (this is usually taxed as an early payment).

• Reduction of deeming rates for pensioners (this is the interest rate the government deems pension recipients’ investments to earn – whether they earn it or not)

• Implementing an extra income support payment of $550 per fortnight. This will be paid to Jobseeker Payments, Youth Allowance Jobseeker, Parenting Payments, Farm Household Allowances and Special Benefit recipients.

• Eligible concession card holders and recipients of welfare payments will get a couple payments of $750 each.

Small businesses that don’t employ and sole traders.

Nothing here for you guys at all – other then pull money from your retirement savings and if eligible, welfare payments.

ATO Debts

Absolutely no mention if the ATO will allow interest free periods or payment deferrals or payment plans with the ATO.

My suggestion would be if you need help in this department, definitely ring the ATO to see what you can get. Use the words ‘drought effected’, ‘bushfire effected’, ‘Coronavirus income effected’, ‘mental & physical strain’ & ‘can’t afford to pay interest on this debt’. These sorts of words are triggers with the ATO, so may work for you in your favour. We can help with this if you need (however we do have to charge for this service, as it can take us up to an 1hr to get the payment plans in place – it is normally $55).

Please be aware, the ATO will not hit the ‘delete’ key on debt, and once this is over, ATO debts can affect your future funding with financial institutions. But do what you need to do here.

That’s it folks.

Please let us know if you have any further queries, but this is pretty much what we know at this time.
We also ask that you email the office at this stage and we will attempt to return your queries as soon as possible.
admin@lawsonaccounting.com.au

Talk soon

Stimulus Package 1

Tue, 17 Mar 2020 05:34:05 GMT

Government Stimulus Package 1 Announcement

Hey all,

Just thought I’d give a quick update on the happenings in this crazy world.

Firstly, when looking at your share holdings, its ok to cry. I do every day. That’s about all the advice that I can legally give you on this at this point in time.

Secondly, we have decided to instigate a work from home policy here. This is not because I watched any sort of ‘Pandemic’ movie at all, or because I don’t want anyone’s germs. I just decided that because we can we should. Possibly limiting the spread of the virus. Also so I don’t have to get out of my pj’s . Please be aware that it is still working as normal. My staff are covered with strict confidentiality legislation together with today’s technology this was an easy task for us to undertake. You can still contact all staff via the normal office phone number (07) 4613 1833 and appointments will be limited to telephone appointments at this stage. I still have a small number of staff at the office, so you can still drop off and pick up information if need be. However we ask that you please call ahead.

I have also summarised below the current governments stimulus package based on what I know. I understand there may be more come out and I will let you know when I know.

1. $25,000 PAYG Withholding Credit – this is a payment that will be applied as a credit to your business activity statement account with the ATO. This applies to all our clients that employ staff. The maximum that you will receive as a credit is $25,000 and the minimum is $2,000 (even if you don’t withhold). This is calculated as 50% of the PAYG Withholding that you have reported on BAS’s for the six months between 1st January and 30th June 2020. This payment is tax free. This one is actually pretty good of the gov’t.

2. 50% wages grant for Apprentices and Trainees – this payment is 50% of the gross wages paid to apprentices for the 9 months period between 1st January and 30th September 2020. You have to apply for this one and you can’t apply for it until the 2nd April 2020. Let us know if you need help with this one (applications are not available yet though).

3. $150,000 immediate asset write off before 30th June 2020 – WOW!! – this one is quite big, however can have a bit of a cash flow impact for your business. Keep in mind that if you intend to purchase any equipment before the end of June and you intend to finance this equipment, the deduction will be in the 2020 tax year, however your repayments will run over the next 3-5 years and repayments are not tax deductible (only interest on the repayments are). Talk to us if you intend to utilize this, just so you are fully aware of the taxation and cash flow implications.

4. 50% accelerated deprecation – After the 30th June 2020 or if your asset purchase is higher than $150k, the ATO will allow you to claim a 50% initial year depreciation amount. This is pretty good too for any equipment purchase (an increase from the current 15% depreciation rate).

5. There are also some assistance to businesses who may be struggling to pay their ATO debts. There could be interest and penalty remissions available and the ATO may put into place low interest payment plans (although they haven’t suggested how low this interest rate will be yet). AT this stage we highly suggest keeping ATO lodgements up to date, so you know your obligations early and can implement measures to assist in cashflow during this time. Most of my clients BAS’s for December Qtr are not due for payment until the 28th May, however keeping in mind that the March Qtr is also due on the 28th May (so 6 months of BAS’s due on the same day). My preference is not to utilize payment plans with the ATO, but if you are in need you can work with the ATO to get any debts under control. If you have trouble with this please let us know.

Anyway, this is definitely a weird time in the business world.

Work hard and keep washing your hands!

Carmen Lawson B.Com CPA C.Dec