20 August 2020
NEWS
WA commercial tenancy support
The WA Government passed new laws to help commercial tenants and landlords reach agreements about rent during the COVID-19 pandemic. Since the implementation of the commercial tenancy changes, several real-life situations have manifested as Q&As put to the WA Small Business Development Corporation.
Canberra extends land tax landlord rebate
The ACT Government has announced that the land tax rebate for landlords who provide lower rents to tenants affected by COVID-19 will be extended by three months to December 2020 (note that this is not available to landlords who rent their property to a company in the business of providing short-term rentals, that is, serviced apartments).
Tasmanian registration freeze for light and heavy vehicles
Small businesses in Tasmania looking to suspend activity due to the COVID-19 business downturn and trading restrictions can apply to the Registrar of Motor Vehicles to freeze their business vehicle registrations for both light and heavy vehicles (apply here). Registrations can be reactivated at no cost to them when the business restarts. The maximum period that a registration can be frozen is 12 months.
Victorian Dairy Farm Induction Program
The Dairy Farm Induction Program funded by the Victoria Government will assist to safely, effectively and rapidly on-board new dairy farmhand workers and provide opportunities for people seeking to kick start their career in dairy in Victoria. The program aims to provide a seamless experience for both dairy farmers and job seekers to access the information they need to successfully gain employment on Victorian dairy farms during COVID-19 and beyond. Clients can register their interest here.
19 August 2020
NEWS
JobKeeper amendment rules: Don't miss this Friday's deadline!
The latest amendment to JobKeeper requires employers, by this Friday 21 August 2020, to notify any newly eligible employees in writing of the business’s intention to apply for JobKeeper on their behalf. Meeting the wage condition deadline is 31 August. For more details, see "What employers should do now".
See this Fact and action checklist for all the latest JobKeeper amendments.
SA land tax reform transition fund
The SA Government has in place a measure affecting the previously announced land tax reform transitional relief fund, which is available to eligible taxpayers whose land tax bill will increase as a result of the changes in aggregation of land commencing from 1 July 2020. This will be boosted from 50% to 100% of the increase in an eligible taxpayer’s 2020-21 land tax assessment, and will be subject to the existing criteria. More details here.
Employees guide for work expenses
The ATO has recently updated its Employees guide for work expenses which can help employees decide whether expenses are deductible and what records are needed to be kept to substantiate them.
Guide to continuing business
The Federal Government has issued Guide on continuing in business in the face of the recent bushfires and COVID-19, which have had devastating outcomes for businesses. This guide provides positive steps your client can take now to help keep their business operating, including topics such as planning recovery, getting support, assessing finances, keeping operations running, reaching out to customers, and protecting the business.
18 August 2020
HELPLINE QUESTION
The current JobKeeper rules require that an entity carried on a business in Australia on 1 March 2020 to be eligible. Given the test time for eligible employees appears to be moving from 1 March 2020 to 1 July 2020, will the date at which an entity is required to be carrying on a business also change?
Answer: The information we have from the currently available fact sheets do not indicate any change to this requirement. However we have to wait until the JobKeeper 2.0 rules are released before we can have certainty on this question.
NEWS
JobKeeper employee eligibility expanded
The latest amendment to the JobKeeper 1.0 rules has been released. The major change is the admission of employees who were on the books as at 1 July 2020, from JobKeeper fortnight 10 (3-16 August). And in recognition of the short time available to employers to meet the wage condition for newly eligible employees, particularly in relation to JobKeeper fortnight 10, the ATO has given employers until 31 August 2020 to meet the wage condition for JobKeeper fortnights 10 (3-16 August) and 11 (17-30 August). Many more details here.
JobKeeper updates just keep coming
The ATO has issued some minor updates to JobKeeper guides for employee test requirements, employers reporting through STP, employers not reporting through STP, sole traders and not-for-profits and charities.
Guidance on long-term casual employee JobKeeper eligibility
The ATO has issued some guidance for employers to determine if their employee can be considered a long-term casual employee for JobKeeper purposes. If a casual employee was not an eligible employee prior to 3 August 2020, your employer clients can use the 1 July 2020 test to reassess that employee’s eligibility. The test requires that the employee be employed on a regular and systematic basis for the period 2 July 2019 to 1 July 2020.
17 August 2020
HELPLINE QUESTION
Question: Will the “12 March 2020” tests change in the JobKeeper 2.0 rules?
Answer: The information we have from the currently available fact sheets do not indicate any change to this requirement. However we have to wait until the JobKeeper 2.0 rules are released before we can have certainty on this question.
NEWS
Returning traveller quarantine fees in NSW: Only ex-Vic returning residents get waiver
As mentioned in the 13 August Daily Update, a moratorium on fees is in place for NSW residents returning to the state until 11 September. But the NSW Government has made it clear in a
subsequent announcement that fees will still apply to returning international and domestic travellers who are not specifically returning from Victoria.
PCG for JobKeeper compliance concerns
Practical compliance guideline
PCG 2020/4 deals with the ATO's compliance focus regarding schemes devised to access or increase JobKeeper payments. The guideline takes aim at contrived and artificial arrangements that technically satisfy the eligibility requirements, but have been implemented for the sole or dominant purpose of accessing a JobKeeper payment.
ACT payroll tax exemption for businesses that take on apprentices
The ACT Government, stating that economic impacts of COVID-19 are falling disproportionately on young people, has announced that it will offer
a six-month payroll tax exemption for businesses who take on new or additional apprentices or trainees. The exemption would apply to six months of wages for eligible employees recruited from 1 August 2020 to 31 January 2021. The ACT Public Service graduate, cadet and apprenticeship program will also be extended to provide more positions over the next two years.
Support package for Canberran children, young people and families
Another
ACT Government initiative (scroll down) is the Supporting Children, Young People and their Families Package. This includes:
- One-off payments of $300 for each child and young person in foster and kinship care to support the wellbeing of young people and help ease the financial stress for carers whose employment or income may have been affected during the COVID-19 pandemic.
- An extended carer subsidy for young people in out of home care who turn 18 this year to support living expenses, housing costs or connect them with training and employment.
- Funding to support young carers to meet additional expenses, maintain wellbeing and support educational participation.
- One-off grant payments to non-government service providers to assist with direct service delivery, brokerage and support for young people and their families to respond to increased demand for services.
15 August 2020
JobKeeper 1.0 Changes
Amendments to the JobKeeper 1.0 Rules were released on Friday 14th August. The amendments reflect the changes previously announced by the Treasurer and incorporated into the “JobKeeper Payment” factsheet.
The major change is the admission into the JobKeeper scheme of employees who were on the books as at 1 July 2020, from JobKeeper fortnight 10 (3rd August – 16th August). Additionally there are other tweaks to the 1.0 Rules which, at first glance, appear to be in line with changes Tax & Super Australia and other member advocates have been agitating for.
Tax & Super Australia will fully review the changes and bring you a comprehensive analysis next week
Wage Condition – JobKeeper Fortnight 10 and 11
As previously indicated by Tax & Super Australia, in recognition of the short time available to employers to meet the wage condition for newly eligible employees, particularly in relation to JobKeeper fortnight 10, the ATO have given employers until 31 August 2020 to meet the wage condition for JobKeeper fortnights 10 (3rd August – 16th August) and 11 (17th August – 30th August).
14 August 2020
NEWS
Moratorium on hotel quarantine fee for NSW residents
NSW residents returning from Victoria will have their hotel quarantine fee waived for the next month to ease the financial burden on returnees.
APRA re-starts its engines in phased manner
In March, APRA announced the suspension of the majority of its planned policy and supervision initiatives in response to the impact of COVID-19. In April, the issuing of new licences was also suspended due to the significant challenges new entrants would have faced due to economic uncertainty. But it has this week announced that it will recommence public consultations on select policy reforms and begin a phased resumption of the issuing of new licenses.
Victorian mental health support
Locked-down Victorians should know that the state’s mental health system is to receive a $60 million shot in the arm to help citizens through the pandemic crisis — now and after the pandemic is over and its effects are still being felt.
COVID-19 frequently asked questions
The ATO COVID-19 frequently asked questions have been archived on the ATO’s legal database and embedded within the relevant topic areas on the ATO website. The documents provide a record of the frequently asked questions that were published to the main ATO website in the period following the onset of the COVID-19 pandemic.
Isolation payment increase for Victorians
Victoria will increase coronavirus isolation payments from $300 to $450 to encourage more people to stay home as they wait for COVID test results.The worker support payments are for employees who test positive and do not have any sick leave. More than 17,000 Victorians have applied for the payments so far.
13 August 2020
NEWS
Hotel quarantine fee relief for NSW residents returning from Victoria
NSW residents returning from Victoria will have their hotel quarantine fee waived for the next month to ease the financial burden on returnees, the NSW Government has announced. The charge will be waived retrospectively and apply to NSW residents already in hotel quarantine after travelling from Victoria.
Regional tourism accommodation support for Victoria
The new restrictions mean residents in metropolitan Melbourne and Mitchell Shire, as well as some interstate visitors, are not able to travel to regional Victoria. As a result, there have been significant booking cancellations with regional accommodation providers. Businesses in regional Victoria impacted by these cancellations will be able to apply for a payment of up to $225 per booking, per night up to a maximum of $1,125. Applications are open until the end of the current Stay at Home restrictions or when funds are exhausted. Applications can be made at Business Victoria.
Temporary changes to director obligations
The Federal Government has announced that to lessen the threat of actions that could unnecessarily push otherwise profitable and viable businesses into insolvency and help ensure they can resume normal operations when the crisis has passed, the following temporary measures have been put in place:
- Relief for directors from any personal liability for trading while insolvent
- Increasing the threshold for creditors issuing a statutory demand on a company from $2,000 to $20,000 and extending the timeframe for a company to respond from 21 days to six months
- Increasing the threshold for a creditor to initiate bankruptcy proceedings from $5,000 to $20,000 and extending the time period for debtors to respond to a bankruptcy notice from 21 days to six months and extending the period of protection a debtor receives after declaring an intention to enter voluntary bankruptcy from 21 days to six months
- Providing temporary flexibility in the Corporations Act 2001 to provide targeted relief for companies from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus health crisis.
For more information, read the Federal Government fact sheet.
Find out how your local government can assist
Local governments across the state of Victoria are doing what they can to support businesses and local communities at this time. To find out how your council can help your business, please visit www.viccouncils.asn.au/find-your-council.
12 August 2020
HELPLINE QUESTION
Question: Can I close my business while receiving JobKeeper?
Answer: A business can “hibernate” (the Prime Minister’s phrase) during the pandemic with a view to being in a position to reopen as soon as possible and permitted, and remain eligible for JobKeeper. It is necessary for its employees to remain “on the books” for the JobKeeper payments to be made to those employees. Additionally the eligible business participant must remain “actively engaged in the business”.
Also, an entity does not qualify for the JobKeeper scheme at a time if:
- where the entity is a company—a liquidator or provisional liquidator has been appointed in relation to the company; or
- where the entity is an individual—a trustee in bankruptcy has been appointed to the individual’s property.
NEWS
Last chance to apply for NSW COVID-19 recovery grant
This coming Sunday, 16 August, is the cut-off date for applications for the NSW Government’s COVID-19 Recovery Grant. If your client’s small business or not-for-profit organisation has experienced a decline in turnover as a result of COVID-19, they may be eligible for a small business recovery grant of between $500 and $3000. But applications close in a few days, so your eligible clients will appreciate a phone call. See here for eligibility conditions, and here to apply online.
Tax Practitioners Board offers helping hand
The TPB has reached out to Victorian practitioners with offers of help. It says it has taken temporary measures in revising some of its policies and are providing additional support around registration renewals. These include:
Working for Victoria Fund
The Victorian Council of Social Services and Victorian Trades Hall Council, alongside the Victorian Government, will administer a $500 million Working for Victoria Fund. Displaced workers will be eligible to apply for different opportunities for paid work and to contribute to Victoria’s ability to manage this event and support the community. The initiative also assists businesses to employ Victorian job seekers who have lost jobs as a result of COVID-19. Further information is available for job seekers and for businesses.
Top end closed to the rest of the country for at least 18 months
Northern Territory Chief Minister Michael Gunner has said that he will keep the Territory’s border guarded for at least another 18 months, and aims to recruit extra police to keep the barriers in place. Victorians are likely to be banned indefinitely, he said.
NEWS
Victorian pubs, clubs and restaurants support
Business Victoria has announced a $40 million package of support for pubs, clubs and restaurants in order to provide rent relief to venues that are not covered by the Commercial tenancy relief scheme. This initiative provides eligible businesses with:
- Reimbursement of up to $20,000 per business group for expenses incurred in obtaining specialist business and tenancy advice since 29 March 2020
- Free mediation services to help tenants and landlords reach a fair and proportionate commercial outcome on rental payments
- Relief for commercial rent hardship of up to $150,000 per business group where it can be shown that the business has sought to negotiate in good faith with the landlord with no result.
Liquor licence fee relief
Victorian businesses that have paid for a renewable liquor licence for 2020 will be reimbursed their licence fee and those yet to pay will have the fee waived. The State Revenue Office will administer the reimbursement, regardless of whether the licence fee was paid to it or the Victorian Commission for Gambling and Liquor Regulation.
Payment terms for government suppliers fast-tracked
The Victorian Chamber of Commerce and Industry (VCCI) says that the Government will pay all outstanding supplier invoices within five business days. VCCI says it is urging the private sector to do the same where possible.
Social Security determination regarding JobKeeper re-issued
A determination issued on 28 April this year modified the Administration Act to authorise the provision of JobKeeper information (including TFNs) by the Commissioner to Social Services. It also modified the operating rules to allow determining if a person who benefits from JobKeeper has also made a claim for a social security payment, or indeed qualified for one. The new determination (Social Security (Coronavirus Economic Response—2020 Measures No. 12) Determination 2020) amends the previous one (No. 5) to determine additional modifications for which the Social Services can use JobKeeper information provided by the Commissioner under section 204A of the Administration Act.
CBD business support fund: More details
Mention was made in yesterday’s Daily Update that early registration of interest was being accepted for participation in the Business Victoria CBD business support fund. The City of Melbourne released its local economic stimulus package to support city businesses affected by COVID-19. The package includes the suspension of fees for Food Act registrations and street trading permits for three months, halving rent for eligible tenants in Council owned buildings for three months and rates hardship support. For immediate support, contact the Business Concierge Service on 9658 9658 (press 1 for Business Concierge) or visit City of Melbourne Business for more information.
7 August 2020
NEW CHANGES TO JOBKEEPER LEGISLATION
Today the Treasurer announced two changes to the JobKeeper scheme. The first makes it easier for organisations to qualify for the JobKeeper payment extension from 28 September 2020, while the second change adjusts the reference date for employee eligibility.
- Business Turnover Test
Businesses will need to meet one of the decline in turnover tests for the September 2020 quarter to be eligible for JK for the period 28 September 2020 to 3 January 2021. Further businesses will have to have met the decline in turnover tests for the December 2020 quarter to be eligible for JK for the period 4 January to 28 March 2021.
- Eligible Employee Test
The reference date for assessing which employees are eligible for the JobKeeper Payment is now 1 July 2020 with effect from 3 August 2020. The reference period for employees regarding their hours worked to determine their tier of payment will be the two fortnightly pay periods prior to 1 March 2020 or 1 July 2020. The period with the higher number of hours is to be used
for employees who were eligible at 1 March 2020.
Read more information from Treasury.
Helpline Questions
Do the CFB, JK and the various other Federal and State COVID-19 assistance packages need to be included in the calculation of GST turnover for the decline in turnover tests and monthly reporting?
Only consideration for supplies (as defined in the GST Act) need to be included in the calculation of GST turnover. Government assistance and grants are only considered to be consideration for a supply where the recipient of the grant is required to perform some action, or give up something in order to receive the assistance or grant. This is not the case for the various COVID-19 assistance. Therefore the various assistance packages should not be included in the calculation of GST turnover. Please refer to Law Companion Ruling LCR 2020/1 paragraphs 24 ~ 25 and also see GST and grants
QC 21423.
For more frequently asked questions...
The ATO's COVID-19 frequently asked questions have been archived on the ATO’s legal database and embedded within the relevant topic areas on the ATO website.
NEWS
Employees guide for work expenses
The Employees guide for work expenses to help employees decide whether expenses are deductible, and what records need to keep to substantiate them, has been updated.
Business grants program expanded
The Victorian Government has announced that the one-off support grants that it had earlier established are to be expanded. Grants will be made available to eligible businesses under the Business Support Fund-Expansion program:
- $10,000 for employing businesses in metropolitan Melbourne and Mitchell Shire in recognition of spending longer under restrictions
- $5,000 for employing businesses in regional local government areas (except Mitchell Shire)
Businesses that have already received a Business Support Fund-Expansion grant, or have applied for one, will not need to re-apply. Successful applicants will automatically receive this additional allocation. Also, applications for the program will be extended until 14 September 2020.
Under current law, such grants are assessable under s 6-5 or s 15-10 of ITAA 1997 (ie a bounty or subsidy that is received in relation to
carrying on a
business). See also
TR 2006/3 which provides that a "government payment to industry" to assist a business to continue operating, except where the payment is for agreeing to give up or sell part of the profit yielding structure, is included as assessable income of the recipient under section 6-5 or section 15-10.
Coronavirus payroll tax relief - claim a refund
Businesses with annual Victorian taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived. Eligible businesses can claim an emergency tax relief refund of payroll tax already paid in the 2019-20 financial year (see this SRO page for details).
Commissioner’s pledge to Victorian practitioners
The Commissioner of Taxation Chris Jordan has published a message of support to Victorian tax professionals. He states that the ATO is committed to providing the help you need through this difficult period and that it has a range of practical support options available.
Surgeries on hold in regional Victoria
From midnight last night, public hospitals in regional Victoria have wound back all non-urgent surgery. Where possible, Category 3 and non-urgent Category 2 surgery which is already booked should still take place, however that will be at the hospital’s discretion. No new non-urgent surgeries will be booked.
Worker support payment and test isolation payment
If you or a client test positive for COVID-19 or are a close contact of a confirmed case, you may be eligible for the $1500 Coronavirus (COVID-19) Worker Support Payment that provides financial support while you are quarantining at home. Also available is a $300 Coronavirus (COVID-19) Test Isolation Payment that provides financial support while taxpayers self-isolate to wait for the results of a coronavirus (COVID-19) test.