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How did the accountants tackle the challenges of COVID-19?

This pandemic has changed the world in a very different way. These challenges also brought too many challenges for Accountants all around the world. As most of the employees were forced to work from home, they had to learn about various technologies for doing that. Even the conventional works got a digital taste.

In this blog, we are going to talk about Kylie Baxter and the situations that she along with her firms faced due to this pandemic. She is the managing partner of IQ Accountants. Just like all other firms, she had to instruct all her employees to work from home.

But she knew the challenges that the employees of her firm were about to face in the coming future.

Facing the truth

It was hard to believe in the beginning. But after she saw that one of the employees in her company tested positive for COVID-19. Because of that many others were also isolated for a specified duration of time. After this, Baxter realized that it is time to change the way they work.

Many employees were not ready to adapt to this change but at last, Baxter told the truth. She told everyone that they will be out of the business if they are not willing to change theta working style.

Changing the priorities

In this section of the blog, we are going to talk about Stephannie Jonovska, manager of BlueScope Steel. She also had to face tough situations due to this pandemic.

Now that everyone was in the middle of the pandemic, they had to make the final changes. This was the most important thing to do for maintaining the presence of business in the market.

The first thing was to maintain the cash in the firm. It is the most important thing to run a business. As the situation was not a temporary one.

Then the firms started to find out the most important things in the business, the most important projects, and several other things. Wise employers were busy in maintaining the things that mattered the most and had the ability to breed the most outcome.

As everyone was working from the home so, there was a short of disconnect between them. We had to make sure that the employees feel connected to each other like they are inside the walls of the company. And all the employees were motivated a lot to maintain to cope with this extraordinary challenge.

At last, Jonovska said that she was very happy to see that all employees were very helpful in reaching out to each other. Though it was hard for the employees to understand the emotions of others via the screen, all of them were able to get used to this situation very quickly.

Conclusion

This pandemic has taught us several things. People in business had to deal with the changing environment and at the same time, they were very short on cash. This was quite a challenging time for them. It has taught the world that businesses need to be prepared for the worst situation even if they are working in normal situations.

Most important accounting skills for the post-pandemic time

COVID-19 has affected our lives in such a way that we are experiencing several changes in our lifestyles. With the rise of Corona, most of the employees were forced to work from home. And several other changes also took place.

CPA Australia performed research on the pre-COVID-19 situation of the accounting industry. This research was completely focused on studying the skills that would be suitable for even changing situations. This research will help the accountants in making them able to continue their work progress in changing situations. So, the loss that one has suffered due to COVID-19 will be minimized from the next time.

In this article, we will consider the opinions of some of the experts in this field. Let us take a look at it.

David Cawley

David Cawley is the Regional Director of Hays Accountancy and Finance. He has the following things to say when we asked about this situation.

In this time of crisis, Accountants are the ones who have helped a lot of people, like employers and clients. People around the world have come to know about the value of good advice only because of this tremendously harsh situation. The relationship between accountants and the clients has improved to a vast extent. As the accountants have helped the firms in getting back on track. So, we can expect the same behavior of clients in the coming future. Even when the world gets out of this situation, the clients will know about the value of expert advice from accountants.

As a result of it, we can expect that the accountants who are good at providing insights to the clients and have better-consulting skills will have more opportunities in the future. So, those accountants will be demanded more who have adapted to the situation of the pandemic. As businessmen are focusing more on return for every investment they make.

Based on these trends, you will see that the demand for management accountants will increase in the future. Clients are now looking for the accountants who can not only perform data analysis but they are also able to make a strategic decision in the hard times.

But it doesn’t mean that accountants with conventional skills will no longer be demanded. As the situation gets back to normal, the working environment will also shift to the normal state. As a consequence of it, the demands for such accountants will also increase.

Alain Boey

Alan Boey is the Chief Transformation Officer at Media Prima Berhad. He also has something to say about this situation. He provided some valuable information about this extraordinary situation.

We never knew that technology will become such an important thing in professional life as now. This change in the mindset and working environment took place due to Coronavirus COVID-19. The work culture in the field of accounting has changed in such a way that an accountant is supposed to have knowledge about the technology in order to be called a complete accountant.

Softwares are used widely in the field of accounting for specific purposes. As technology is advancing at a high pace, this is very important In this ever-shifting world of technology, an accountant needs to be compatible with the changing technology. Now there is some other big stuff coming in the market like Blockchain and Big Data. Accountants need to be aware of the effects that these things will have on the market.

Accountants need to be treated as partners in business rather than someone who works with the numbers in the background.

You need to have some precise skills to deal with the numbers using the machines. Because the machines have their own way to work and the numbers are interpreted using the machines in a quite different way.

But what makes the accountants more important than the machines and software is the fact that machines can’t make strategic decisions as an accountant can do.

About the experts

David Cawley

He has experience of 17 years in accounting with Hays. Along with his work in accounting, he has also worked at various other positions in Australia and the United Kingdom. In this company, he has worked in making some of the very important permanent recruitments.

Alain Boey

Though he is an accountant by profession, he is more passionate about the use of technology in this sector. He is also a member of CPA Australia’s Disciplinary Panel. Along with these positions, he is also a member of the Digital Technology Working Group for Professional Accountant in Business of the Malaysian Institute of Accountants.

 

To get success a right mind is needed, Sanchi Kriyawasam

Abandoning one’s comfort zone is a powerful initiative for the success of Sanchi Kriyawasam CPA’s recipe for Success.

How I played well in changing the company

From age 22, I have begun practicing in medical fields and small traders and specialized in that. But I widened my knowledge in the realm of consultancy work and as a result, I ended up working as a virtual CFO.

As of late, I was offered the CFO part at Melbourne-based Safe working Solutions (SWS), an extraordinary job, where I have been asked to re-engineer the business and the vast majority of its processes, inserting innovation into all zones of the business. It has not just uncovered which parts of the business are beneficial, yet the innovation has additionally upgraded workers’ ranges of abilities and improved efficiency.

A portion of SWS’s fundamental customers incorporates Metro Trains, V-Line, John Holland Group and different other rail wellbeing ventures around Victoria. The company required more exact cost control around ventures. After some examination, I suggested Sage CRE, a forward-thinking development programming.

The company additionally expected to streamline its IT processes, rostering and time the board frameworks, contract the executives of partners, obtainment, and so forth With data storage, we tried to put different functions on a cloud-based server – and the entirety of this must be managed without influencing energy.

My difficulties: dealing with mentalities 

The difficulties are not unreasonably astounding. There I was at 16, functioning as an accountant, and I was as yet observed as an outsider who had just emigrated from Sri Lanka a couple of months already. I’m not saying individuals were by and large legitimately bigoted, however at the time I felt like an untouchable, a lady of shading.

Individuals do in general segregate, regardless of the amount they may state they don’t. They have their questions. She’s a lady, youthful and of shading, yet I realized the outcomes would do the talking for me.

For the difficulties ahead, I realize that what I advocate at work may cause opposition – dealing with the progressions you’re achieving for others is consistently troublesome. Some may be more agreeable just enduring as opposed to flourishing.

I need staff to have a sense of safety that changes to frameworks are not tied in with replacing them, but rather about upgrading their viability. As far as I might be concerned, man-made reasoning and genuine knowledge are similarly important. The test is to change a fixed attitude into a development mentality and develop positive change.

Exercises learned and best exhortation 

Authority is about character 

The administration isn’t a title or a position, however a trademark inside you to enable and rouse people around you to give a valiant effort. Be credible and act naturally.

Commend the smallest advancement 

Don’t simply stand by until you hit a specific objective or objective to celebrate; all things being equal, esteem progress. Not all exercises work out as expected, but rather even now and again of strain and stress, discovering approaches to appreciate the advancement caused will to make a far-reaching influence of bliss.

Have different interests 

Normal pastimes or interests change up your life, and can truly support execution on a work level. As far as I might be concerned, it’s the enthusiasm for gastronomy, loaning some assistance to individuals out of luck, and a lot of self-care to elevate my brain, body, and soul.

Learn constantly 

Learning is good, however realizing how to manage it is vital. I have made it training to assign at any rate 30 minutes day by day for personal development or to peruse an article to discover some new data, or even to revive my insight into something I know. It will help you with evading stagnation and help you in arriving at your maximum capacity.

4 brilliant Keys To Writing A Resume That Gets Results

We should move the awful news first: The job market is overwhelmed with applicants across numerous businesses at this moment. What then is good news? Emergencies are likewise opportunities, particularly when you’re thinking about exchanging profession ways to additionally develop your career.

Coronavirus tore through the worldwide economy this spring, leaving expanded closures, stay-at-home requests, and mass cutbacks afterwards. It probably won’t seem like the ideal opportunity to get another line of work, however, hanging tight for the ideal second will just expand your danger of a lifelong slowdown. Regardless of whether you’ve been laid off because your industry or organization cut back or you simply need to begin alternately moving your career, it’s an ideal lucky break to take advantage of the day and begin interfacing with employing administrators.

For some job searchers, tarrying takes over because they’re apprehensive about the dismissal. One approach to support your certainty is to reevaluate your list of references, increasing the volume on your image while zeroing in on the motivating attributes of the job you need—not the unbending desires for the jobs you’ve had. Albeit individual marking is situated in credibility, there’s an optimistic component to it. Here are how you can set yourself ready for recruiting achievement when you’re wandering into an alternate field close by an overwhelming number of applicants:

Work on composing an individual marking explanation.

Individual marking explanations resemble organization statements of purpose, which are straightforward and express their centre message when all is said in done terms. For instance, Tesla points “to quicken the world’s progress to economical energy.” Notice how this mission doesn’t allude to vehicles by any means. You have to create a marking explanation that mentions to bosses what your centre intention is, regardless of which job you land.

In your marking explanation, address the worth you will bring to associations. Contact on the issues you unravel, the one of a kind manners by which you do as such, and who profits by your answers. An individual marking explanation is an extraordinary method to accumulate consideration from employing administrators and scouts, but at the same time, it’s an instrument to enable you to choose what you look for from the following period of your career. You might need to consider changing your assertion marginally for each position you apply for.

Rebuild your encounters for the profession change.

Your current (or past) job probably showed you significant aptitudes, yet you’ll need to outline those encounters such that suits your ideal profession. Spotters will very likely depend on applicant global positioning frameworks to filter through all the list of qualifications they get, and that product depends generally on watchwords. Recognize the watchwords most usually secured in your objective position depictions and fuse them all through your list of references where pertinent.

You ought to likewise consider invigorating the instruction part of your list of references, particularly if you haven’t been in school for quite a while. On the off chance that your higher education isn’t pertinent for the career you’re planning to progress into, list any ongoing classes or courses you’ve taken that may be more material. On the off chance that you haven’t done any self-coordinated learning, there’s an abundance of free online assets and instructional classes you could take to help your list of qualifications stick out.

Feature your adaptable abilities.

What undertakings did you have to act in your last job? At the point when you consider that question, the main abilities that strike a chord are likely job-explicit. Think further and pinpoint adaptable abilities that your potential future boss will esteem. Is it true that you were an administrator? Have a go at posting aptitudes like “individuals improvement” or “collaboration,” for instance. Add aptitudes that apply to any profession, for example, “money related astuteness,” “composed correspondence,” or “individual inspiration.” More critically, what’s unique about how you apply those abilities? Imbue your image while you’re rejuvenating those aptitudes. Which of those aptitudes is the reason for your superpowers?

Here’s an extraordinary model from the scholarly world. Isaiah Hankel, author and CEO of Cheeky Scientist, urges degree-holders to advance what makes them remarkable. Just about 2% of the U.S. grown-up populace (ages 25 and up) has a PhD, as per 2018 Census information. Why would that be? “Since adding to a field is hard,” Hankel clarifies. “Anybody can get the hang of something and afterwards repackage it. Anybody can spew data. That is simple. It’s such a great amount of harder to make data — to bring information into reality for the absolute first time. If you have a PhD, you are a maker of data. This is one of your generally significant and most adaptable abilities.”

The show, don’t tell, why you’re a decent competitor.

Anybody can make grand cases about their past job execution, yet an incredible applicant realizes how to approve those triumphs. Would you be bound to enlist somebody who “drove fruitful showcasing efforts that arrived at new business sectors and yielded an unmistakable degree of profitability?” Or would you rather enlist the individual who “initiated three effective promoting efforts that developed the organization’s crowd by 43% and acquired a normal ROI of 560%?” The principal applicant is revealing to you they would be a solid match (and trusting you’ll concur), while the subsequent applicant is demonstrating to you why they merit the job.

As indicated by Ryan Corbalis, a business selection representative at Indeed, managers are searching for applicants who can measure and impart the capacities they’re searching for. “Perhaps the greatest thing I’d pressure that applicants need to pass on is versatility — this was valid before Covid-19, yet I believe it’s significantly more the case now,” he says. “Moreover, I’d express this to anybody searching for another job, yet it’s much more significant for those hoping to change ventures or careers: Show how your capacities adjust to this new field and spotlight on aptitudes something other than encounters since abilities can be applied from numerous points of view.”

In case you’re contemplating holding up until a more fortunate chance to switch professions, recollect that who knows when the vulnerability will pass. That is the reason you should accept ventures toward the position you had always wanted. Tap into your expert organizations for certifiable counsel, and utilize the bunch free online assets to learn new aptitudes and find significant job openings. Your most significant asset is your own time, so don’t squander it on a job or an industry that no longer energizes you.

Anybody Can Learn to Be a Better Leader

At the point when you’re an individual benefactor, your capacity to utilize your specialized skill to convey results is central. Whenever you’ve progressed into a leadership job, notwithstanding, the toolbox that you depended on to convey singular outcomes seldom prepares you to prevail through others. Be careful with falling into the sensible snare of “if I can accomplish this function admirably, I ought to have the option to lead a group of individuals who accomplish this work.” This would be valid if driving others were much the same as working an all the more impressive adaptation of a similar apparatus you worked beforehand. However, it’s not; hardware doesn’t perform better or more terribly dependent on its opinion about you and how you affect it, while people do.

Possessing a leadership position isn’t something very similar to driving. To lead, you should have the option to interface, spur, and motivate a feeling of responsibility for destinations. Elevating your ability to lead others requires having the option to perceive how you think and act, and how your conduct influences others. Driving great requires a ceaseless journey of self-awareness. However individuals in leadership jobs frequently shun the long and testing work of extending self-understanding for pursuing administration “instruments”— ideally the “snappy ‘n’ simple” kind, for example, character type appraisals that diminish representatives to a couple of oversimplified social propensities, or, for instance, understood predisposition workshops that are utilized as a bandage answer for fundamental segregation, or stack positioning frameworks that indicate to recognize the best ability by expecting chiefs to contrast representatives with one another. Rather than being an alternate route to viable leadership, this unthinking methodology is all the more regularly an impasse that misleads pioneers’ consideration away from the linkage between their conduct and worker results.

For instance, I worked with an association that had withdrawn representatives and baffled administrators who needed to impart more prominent duty and responsibility in their groups. A couple of years sooner, the firm had redesigned its presentation of the board framework. The highlight of the new arrangement was a framework that incited administrators to enter execution objectives and evaluations for their immediate reports, plan execution audit gatherings, and complete the yearly exhibition examination measure inside a predetermined time. At the point when administrators finished execution evaluations on schedule and the appraisals they gave fit the objective circulation, its patrons guaranteed that the framework had expanded exactness and responsibility in execution the executives. What the framework’s dashboard didn’t show — and its backers neglected to acknowledge — was that usage had gone with a descending winding of representative resolve and commitment. Representatives detailed that their supervisors didn’t value their worth and were uninterested in their turn of events. Many were keeping watch for new open doors somewhere else. As far as it matters for them, administrators felt that the association made the execution of the board bulky. They were likewise incognizant in regards to their commitments to a work environment atmosphere that debilitated duty and responsibility.

Instruments can be helpful guides to great leadership. In any case, none of them can replace intrepid reflection, criticism chasing, and submitted endeavors to conduct change for more noteworthy viability and expanded positive effect on others. In my work with the association above, I helped pioneers discover that their most noteworthy influence to improve the responsibility and responsibility of their representatives lay not in following their objective finishing, but rather in establishing and supporting a spurring relational climate. While we utilized instruments, for example, systems and agendas, they could assist pioneers with taking note of the nature of their own and their representatives’ experience of work and move it a more synergistic way; they weren’t to be utilized as swaps for this fundamental work. Pioneers figured out how to perceive how their suspicions molded their conduct and figured out how to intentionally receive outlooks and practices that delivered better leadership results.

Rather than seeking to no end after a wizardry device to go along to assist you with dealing with your group, consider making practices to expand your leadership capability. This includes taking a thought or exploration finding and making an interpretation of it into practices that you can rehash methodically to make the ideal outcome. You can utilize the accompanying strides to plan a learning practice for any developmental test you’d prefer to take on:

Start with a difficult you’d prefer to comprehend or a future outcome you’d prefer to accomplish. What result would have a significant effect on you? For instance, suppose that you’d prefer to see your colleagues become more proactive in recognizing and taking care of issues.

Articulate why it’s critical to you now. Getting clear on your motivation and inspiration builds the innovativeness and industriousness you apply to plan and continuing your practice. Maybe you care profoundly about being a shrewd steward of your association’s HR and about drawing out the best in your colleagues. You accept that all the more completely outfitting every individual’s innovativeness will profit the organization and your colleagues. You’ve been feeling over-burden and accept that recovering a portion of the time you presently spend directing colleagues’ work will assist you with being more powerful. You likewise need to diminish the disappointment you feel at creating all the thoughts and plans for your group.

Look for quality data to put together your methodology concerning. You don’t have the foggiest idea about the most ideal approaches to support proactive critical thinking, so you check in with your mentor or coach or quest for some significant books and articles. If I were training you, I may guide you to viable, research-put together articles for empowering proactivity, creating learning deftness, and encouraging learning in your group.

Distinguish proportions of achievement. What might expand proactivity in recognizing and taking care of issues look like in practice? By what method will you know whether you’re gaining ground? Because of your considering what you need to accomplish and the perusing you’ve done, you conclude that you’ll monitor how now and again colleagues make proposals, offer extra plans to help refine a game-plan, and take responsibility for a choice. You’ll likewise screen your inward state and how you associate with colleagues, searching for diminished dissatisfaction in yourself and more prominent eagerness and possession from colleagues. At long last, you’ll look for criticism from your immediate reports.

Ground yourself with an expectation. You focus on figuring out how to help proactive practices. You place a clingy note with this expectation on your PC where you’ll see it first thing every morning. At whatever point you meet with colleagues, you bring this aim to mind so it capacities like a signal to direct you, keep you on course, and keep you from sliding once again into your propensity for bouncing in with the appropriate response if nobody else approaches immediately.

Pick practices to actualize. From the perusing you’ve done and conversations with your mentor, you plan the accompanying practices:

Offer your experience. To fill in as a good example for self-coordinated learning, share your learning cycle, and encounters. Examine the issues you’re chipping away at and request thoughts from colleagues about how to determine them.

Pose the correct inquiries. At the point when colleagues ask you how they ought to continue, invigorate their intuition with questions instead of answers. Ask colleagues to talk you through how they are considering work issues and what may help. Request that others contribute thoughts.

Come to the situation from their perspective. At the point when you feel disappointment at a colleague emerging inside yourself, name the inclination as an occasion to pick up something about leadership. Take a stab at considering the circumstance from their perspective as opposed to responding from dissatisfaction.

Recognize accomplishments. Perceive and commendation proactive conduct at whatever point you see it happening.

Look for criticism. Tell your colleagues that you’re attempting to help their proactive critical thinking and that you need their input to assist you with improving at this. Request that they let you know at whatever point you accomplish something that either damages or makes a difference. Suppose that a couple of individuals note that you will, in general, destroy others’ proposals and micromanage when you’re under pressure. Given this input, resolve to abstain from condemning thoughts and rather ask colleagues to evaluate the upsides and downsides of every thought.

Audit and commend progress. Inside half a month, you’ll have the option to tell that you’ve gained ground if colleagues are connecting all the more effectively in critical thinking consistently. You’ll have a recently discovered thankfulness for the inventiveness of certain workers. On the off chance that you’ve kept on looking for criticism and the group has reacted, you should now have the option to invest additional time explaining wanted results with colleagues and less time directing their work, bringing about a net increase of time and energy. You’ll feel more energetic about driving your group and understand that you have a greater ability to create yourself as a pioneer than you recently valued.

It’s one thing to need to hold a leadership job; it’s another to need to accomplish the profound work that figuring out how to lead involves. Opposing the developmental journey of leadership resembles travelling to an energizing area, however then investing your entire energy there in the air terminal bar. Then again, premium in and promise to ceaseless learning and improvement as a pioneer will keep you new and fundamental. There’s a valley to cross before you arrive at the pinnacle. Furthermore, there’s another valley between that top and the following one. The developmental journey is captivating and satisfying if you grasp it. You don’t need to stand by to be prepared; you can plan leadership advancement practices any time you need.

What is there for ATO audit activities in 2021?

The world has seen one of the most challenging times in 2020 due to COVID-19. To cope with such a tough situation, governments have provided many financial aids for maintaining economic stability.

At the same time, we saw the Australian Taxation Office and the State Revenue Office be very active in this situation. There were a lot of audit activities during this time. Here are some of the most popular ones.

  • Income tax audits and reviews.
  • Tax investigations regarding payroll
  • Employer obligations audits and reviews.
  • BAS audits and reviews.

As most of the businesses in Australia were unable to keep up with the obligations of superannuation guarantee (SG), this fact alone is enough to draw the attention of ATO. The Single Touch Payroll (STP) allows the ATO to keep an eye on JobKeeper overpayments or underpayments. A large number of mismatches were seen in the JobKeeper payments, STP, and Employee Enrolments so, ATO had to take care of it with the help of audits.

To check whether the businesses applying for a scheme were truly eligible for it or not, ATO had to audit many of them.

What about the upcoming year?

The budget of the year 2020 introduced subsidies for helping businesses that have suffered a lot due to this pandemic. And there was additional funding of A$15.1 million to find the people behind the organized crime in taxation and superannuation systems.

So, it is likely that ATO will be even more active in 2021 because it has to find out the loopholes and the persons who tried their best for cheating the economic structure of their country.

ATO has come with new plans that target the groups (private) that are connected to some individual having wealth of more than A$50 million. The effects of this program can be seen very easily right now but it is expected to increase in the coming future.

Take a look at the areas where you will see even more activities:

  1. Audits of Cash flow boost payment and reviews:
    • ATO is putting a lot of effort into checking whether the entitlements are reaching those who need it the most.
  1. Payment audits and reviews of JobKeeper:
    • You can see that ATO is always active when it comes to reviewing the government schemes launched for the benefit of the common people. As you already know that a large number of Australian Employers have enrolled for this scheme, ATO is definitely going to perform an audit in this area.
  1. SG reviews and audits:
    • Everyone is aware of the fact that a lot of people have not met their obligations for SG amnesty. This has happened mostly due to the pandemic but ATO is likely to perform audits in this field.
  1. STP audits and reviews:
    • The way data is captured is becoming even more complicated as compared to the earlier times. Now the ATO will have more information about people’s activities.

Conclusion:

The ATO was like all other sectors a little inactive this year due to the lockdown. As a result of that, it is being expected that ATO will be very busy in the coming year.

ATO takes back $120 million from JobKeeper funds and highlighted new eligible areas

ATO has recovered about $120 million from the JobKeeper. It was done because a lot of businesses made severe mistakes while claiming assistance from this scheme. New guidelines have been released by the ATO for JobKeeper.

We came to know about it on Tuesday when second commissioner Jeremy Hirschhorn that because of some mistakes made by the businesses claiming assistance from JobKeeper, ATO has permanently stopped the payments of $200 million and it has started reviewing other $100 million. Considering those who have already applied for it but have not got the money yet, the ATO has stopped the other $350 million.

A total of $69 billion has been paid since the JobKeeper scheme was launched in March. Of that $69 billion, about $120 million has been taken back by the ATO.

Mr. Hirschhorn also said that the government has tried to stop the payment to only those who have made reckless mistakes. In the cases where honest mistakes have been made, the money has been released, but we want to make it clear that these people too won’t get JobKeeper payments in the future.

The new strategy for JobKeeper 2.0:

The government has extended JobKeeper 2.0. Based on the mistakes made by the people claiming money from this scheme, there are some new areas where the government will be focusing now. First, it will test the claimed decline in the turnover of the firms who have applied for this scheme, and second the government will point-out the persons who are not eligible for it but they are claiming high-tier rates.

To avoid further mistakes, ATO will closely monitor the decline in turnover by studying the GST turnover in September. When an applicant is chosen for review, he will be required to submit documents for proving their claim. Those documents include trading and sales records, correspondence of customers and sales contracts, invoices issued by you, and bank statements.

The ATO said that they will ask the businesses which are claiming higher rates about how the employees of that firm have met the 80-hour threshold and the firm will be asked to present the documents as evidence for it.

Here is a list of documents that can be used to prove the claim includes payroll data, contracts of employment, business diaries, logbooks and appointment books, invoices, attendance records, etc.

Along with these new areas in focus right now, the focus areas of JobKeeper that were introduced in the beginning are still the same. Here is a list of conditions that devoid a business from getting the benefits of JobKeeper 2.0:

  • If they are claiming for more than one business by showing the other business participant as an employee.
  • If the businesses fail to meet the conditions set for wages.
  • Claiming for business partners who are not eligible.

Tax Gap in brief and how does the ATO measures it

At the end of the year, the ATO sums up the total amount collected and compares this figure with the money that the ATO should have got if everyone had paid their taxes honestly. This is done every year and the difference between these two figures is called Tax Gap.

As per some theoretical calculations, the ATO projects tax amount payable by the people of Australia. And this assumption is based on the fact that every taxpayer pays his tax honestly. These are the benefits of knowing the tax gap:

  • Gives the government an idea about the way they allocate resources.
  • The government gets to know about the transparency in the administration.
  • With the help of the tax gap, the government gets to know about the overall effectiveness of the national tax system.

The reasons behind the creation of the tax gap:

As per the government officials, the majority of the tax gap is created by unintentional mistakes made by the taxpayers. Due to these mistakes, there is a gap between the expected amount and the actual tax paid by the people of Australia.

Here are some ideas about recent gaps found by the ATO:

The most recent example you can have is the tax gap in terms of GST. As per the guidelines of the government, each business individual would be collecting 10% GST from every sale. But there are still some chances of error and that would be caused by those who have not registered for GST and thus such individuals will not be charging any GST on their sales.

For the fiscal year 2018-2019, the total gap was 10% worth $5.8 billion. As per a report from the concerned authorities, the businesses in Australia have paid about 91% of the total GST revenue projected by the ATO.

Conclusion:

The ATO gives an idea about the tax gap in several sectors of the economy like Wine equalization tax gap, Luxury car tax gap, etc.

But for the first time, the Australian government has given information about the overall tax gap for the year 2017-2018. This gap was 6.9% of the total projected amount worth $31.2 billion. So, the government succeeded in collecting 93% of the total tax.

Grab a $1080 tax cut by avoiding tax fines before the 31 October deadline

As per the tax cuts introduced by Josh Frydenberg, the workers in Australia will get some money in their pockets from the beginning of this month. But there are some points to consider to get the money. Due to the cash shortage of cash or any other reason if you are fined with a late fine by your taxman, how can you save money.

The ATO will handout fines to the people who fail to lodge their tax returns in a given time. You can avoid this whole situation of getting a fine by lodging your tax return before 31 October.

Even if you can’t pay the tax in time but you have to lodge it before October 31. Those who lodge their tax return with a tax agent may get a later date to lodge it but they should be in contact with their tax agent to get their books now.

Avoiding fines is most important:

If you get late in lodging a tax return, you may be fined an amount of $1110. The date before which you have to do is 31 October. If you fail to lodge before this date, you will start getting a fine of up $220 each month. You will be fined by $220 every month for 5 months.

If you are unable to do it before the specified date, you should go to an accountant, but make sure that you are approaching him in time. Even if you are lodging your tax return with an accountant, this has to be done in time. Though there are some assistance measures available for those who are in a difficult situation due to COVID-19 but you should try to do it in time nonetheless.

Even if you are seeking help, you should lodge the tax return in time because the ATO needs to be aware of this situation so that they can introduce new plans of payment for your ease.

Things to care about while lodging your tax returns:

You should be ready with all the vital information before lodging your tax return. You should have all the information about your income in the same year.

A lot of information about you is pre-filled by the ATO but you should verify whether that information is true or not. Details like dividend income, interest, bank account details, medical insurance, information about your salaries, and wages will be pre-filled by the ATO.

Before making your final decision in the processing of lodging your tax return, you should have the following details: your tax file number, details of your bank account, your Medicare information, details of your spouse’s taxable income (if you are married), income sources.

The money you are going to get in your pocket:

The table given below will give you an idea about how much cashback is available for people having different levels of their incomes.

Level of incomeExpected cashback
People having an income of up to $80,000$2160
Those who have an income of $60,000$2415
Workers with an income of $150,000$2430
Those with a salary of $40,000$1209
People who earn less than $90,000$1080

One thing you should keep in mind is that you won’t get this cashback in one go. This cashback will be divided into two parts. You will get one part of the cashback this year while the other part will be paid in the tax return of the next year.

 

All you need to know about Family Tax Benefit

Recently, the Australian government has launched a new scheme for the tax benefit of Australian families. This scheme intends to reduce the financial burden of Australian families while raising their children. There are several such schemes that are already in effect but in this blog, we are going to talk about the Family Tax Benefit in detail.

There are two types of it:

  1. Payment is made per family.
  2. Payment is made per child.

No matter which plans you choose, you are free to select the mode of getting the payments: either on a fortnight basis or at the end of the year.

Let us talk about the first plan:

Before going further, you should know that this plan is income tested. The annual income of your family will decide whether you are eligible for this plan or not. If you are eligible for this scheme, the amount of money that you will receive depends on how many children you have and the ages of those children along with how much time you give to your children. The table below will give you an idea about the money you should expect from this scheme:

Payment for each childFor each fortnight
0-12 years$189.56
13-15 years$246.54
16-19 years$246.54
0-19 years$60.90

 

In case your family income is less than $80,000 and you are eligible for this scheme, you will receive an amount of $781.10 at the end of each financial year. Here are some points you should care about if you want to get the benefits of this scheme:

  • If you apply for this scheme, your child should meet the Healthy Start for School requirements. As per the immunizations listed by the National Immunization Program Schedule, your child should be up to date with the immunizations.
  • If you want to apply for this scheme, you should lodge your tax return with ATO so that your income details would be verified.

Now the second plan:

This plan has been designed especially for single parents, and the carers of children who are non-parent. Look at the table below to know about the money you can get from this scheme:

Age of the childThe money you can receive per fortnight
0-5 years$161.14
5-18 years$112.56

 

From this scheme, the eligible candidates can get a financial supplement of up to $379.60.

Eligibility criteria for this scheme:

You will be eligible for the first plan if you have a dependent child aged 0-15 years. In case your child is 16-19 years old, you are eligible for this scheme only if your child is in full-time secondary education.

Here are the eligibility criteria for the second plan:

  • All those are eligible for this scheme if they are non-parent carers of a child or a single parent and their child is below 18 years of age.
  • Those who are a couple with one main income and their dependent child is under 13 years of age.

The income test:

For the first plan:

  • Maximum rate of this plan would be paid to those parents who are earning less than $55,626.
  • If your earning lies between $55,626 to $ 98,988, the rate of money you receive reduces by 20 cents for every dollar that you earn above $55,626.
  • For those who are earning more than $98,988, the rate reduces by 30 cents for each dollar above $98,988.

For the second plan:

  • The main person who is earning should have an income of less than $100,000.
  • The annual income for the secondary earner should be less than $5,767. The rate gets reduced by 20 cents for every dollar earned above $5,767.

Conclusion:

You can’t take the benefits of Parental Leave Pay and the second plan for Family Tax Benefit. All those who are planning to apply for this scheme should spend at least 35% of their time with their children.

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