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Accounting profession latest JobKeeper 2.0 Regulations

Accounting profession latest JobKeeper 2.0 Regulations

The Government of Australia declared six-month extension to its Job Keeper Program whose expiry was scheduled on 27 September. JobKeeper 2.0 will experience diverse payment rates, and likewise, the eligibility requirements too would be different till March 2021.

Job keeper payments are also subjected to reduction from 28 September 2020 to 3 January 2021 with the revised norms having reduction of $1,200 per fortnight for people working for 20 hours or more in a week and $750 for job keeper working less than 20 hours. In order to be eligible, businesses need to substantiate that their GST Turnover has undergone a reduction in both the quarters of June and September 2020.

Also, the rates are again scheduled to decline to $1,000 and $650 for the folks having working hours figures below 20 hours a week with effect from 4 January to 28 March 2021.  Businesses are bound to undergo retest of their eligibility again along with showing off their declining turnover test for quarters of June, September, and December 2020.

The extension is welcomed, but the jobs of accountants have been increased with the frequent change in eligibility criteria. Due to revised GST turnover and eligibility criteria, business houses will now be more careful of their cash flow and billing provisions. During this hard time, treasury’s new fact sheet, which keeps the records of entities, came up with little assistance stating that eligibility will be assessed based on details stated in BAS (Business Activity Statement). It further stated that deadline to file a BAS is ordinarily due in following months and businesses and nonprofit organizations will be required to check their eligibility for JobKeeper before BAS deadline to fulfil the terms of the wages.

Tony Greco, the general manager of the Institute of Public Accountants, stated he hopes that the guidance on actual GST turnover will be mentioned clearly before its implementation. As per the existing norms, turnover is the value of supplies accomplished in the relevant duration comprising of GST-free supplies and excluding input-taxed supplies. Before the issue of LCR 2020/1, the ATO’s website stated many times in a week but actually couldn’t clear that cash and accrual methods were concessionary modes and it got cleared with the release of LCR only.

“The LCR states clearly that the law makes the taxpayer segregate supplies done in each relevant period, and after that, it is required to work upon the value of supplies.

Time to adjust

CPA Australia’s tax policy adviser, Elinor Kasapidis, appreciated the lead duration given to implement the incoming changes as the rate and eligibility changes are subjected to implement from September 2020. He further stated that it is incredibly welcoming to see that government has replied to their feedback and promised that the Jobkeeper’s profession has sufficient notice to comprehend the changes and suggest their business clients accordingly.

Advance notice would aid businesses to seek professional advice to craft the finest course of action and know the things they may be required to become eligible.

Ms Kasapidis also requested the government to lay attention over funding voucher scheme for small business houses to seek expert advice when they couldn’t afford it. Despite this announcement, many businesses still not lookout for advice and would play with their future and business.

To aid small businesses in seeking help, the government should give them vouchers that they can use for professional advice. The tax agents would turn out to be key to the success of JobKeeper.

Understanding Tax Deductions for Charitable Giving

If you also follow charitable giving, and amid this hard time, if you are also coming ahead to help people who are unable to deal with the current situation, you must understand Tax deductions. It’ll not just assist you in trimming down the excessive tax burden from your shoulder; indeed, it may encourage you to help needy people more.

Every year, around one-third of Australians give their significant contribution to Charities. If you are also one of them, you must pay attention to the following rules that are crucial to understanding for every person contributing to charitable giving.

Are you giving money to charity? Don’t forget your gift!

Do you want to give a significant boost to your tax refund? Then tax-deductible donations are the best way to make this possible. You can find plenty of charities around you who rely on donations as it supports them. Your little contribution can help lots of unfortunates.

But remember, if you want to connect with a charity or already you’re a part of any, then make sure the charity is registered by ‘ATO’ if you’re paying more than $2 as a donation to them. According to ATO, it must be “Deductible Recipient organisation” otherwise; you can’t expect any tax deduction.

Most of the charities are apparent in such phases. But if you want to pay double attention, you can also ask them for “deductible gift recipient status,” which will clear your doubts.

Donation That Isn’t A Tax Deduction

ATO marks the following scenarios before providing you with a tax deduction for charitable giving-

  1. If you donate to an organisation that isn’t registered, you can’t claim any tax deduction on your generous donation.
  2. If in the exchange of your donation you receive something from the charitable organisation, such as- a dinner attendance, chocolates, etc. then you aren’t eligible for a tax deduction.
  3. It’s often a significant confusion among people that donating to churches will shed tax burden. Still, it’s not the whole truth. Like a registered charitable organisation, the churches come under registered places for charity. However, leaving essential things unnoticed and requesting ATO for deduction may give rise to problems for you. Don’t claim it unless you’re entirely assured whether it’s eligible or ineligible.

It’s easy to track your Tax Deductible Donations to charities.

Most Australians, during tax time, fail to mention or present some crucial things that hold them back to claim any deduction. For example- people either forget their receipts or deductible donations while filing tax return in Melbourne.

You must be prepared to verify your claim. For this, you must always be ready with entire documents and a series of receipts. No matter; whether your donations were in cash or related to some goods or services, you should always keep a detailed record of your donation in order to become eligible for a refund. However, it would be much better if you’ve made payments with check or donations have been made in the following Tax Year.

So are you ready for your tax deduction?

How to handle your tax returns efficiently this year?

With the advent of the global pandemic, COVID-19’s impact, each country’s economy is going through loads of ups and downs. Each person is facing drawbacks of recession differently. Hence, this tax season, because of COVID-19, Australians are advised not to accept the increased Flat Rates.

Already, the Australian Tax Office (ATO) has simplified the claim process for mass forces due to lockdown. The step has been taken to encourage people to ‘work from home.’ Therefore, the standard hourly rate has been increased from 52 cents per hour to 80 cents per hour.

But Spokesperson Andrew Gardiner from the national Tax and Accountant’s association expresses it with a distinct viewpoint. According to him, it will be unfair with taxpayers who have already paid the tax.

Even though concession covers off electricity, cooling, heading, and incurred expenses on printers, cartridge, papers, and computers; but people still need to be very careful. For instance, the concession includes only 80 cents per hour, which is over a typical 40-hour-week if you factor it.

Similarly, it’s not a massive claim for sure. Hence, you must be acquainted, that by simplifying the affairs, you aren’t going to get more significant claims.

However, choosing the flat rate by the taxpayer will result in losing the right to claim for new computers, chairs, and desk they have already purchased. Because during the pandemic, no one was working in the office.

Adopting ATO 80 cents rate makes you eligible to forfeit your right; thus, you can claim expenses, like electricity, internet, and phone bills, while working from home.

Confusion! What to claim?

It’s a usual question the answer to which is essential to know. After all, the global pandemic has brought a unique working environment across each sector worldwide. But it’s necessary to know that not all expenses are claimable. Only those expenses incurred during working hours or a part of your work are claimable.

What can I do for the claim?

Just reveal the working hours, and pattern of expenses you have incurred during ‘work-from-home’ to the ATO. The taxpayers, who remain well-prepared with entire records, can reap the benefits of claim with ease. But don’t forget to keep receipts of each claim you obtain.

What Medicare Levy Exemption in Australia means for you?

Before we head on to the article, let us understand -What does Medicare mean? Medicare is a universal health scheme of the Australian Government. It is a program that assures access to all the citizens of Australia in wide-ranging services in health at no or little cost.

Medicare works in the way that all that Pay As You Go (PAYG) workers have took off the income tax from each cycle of the pay and roughly equates to 1.5% of the rate of tax, typically paid by us.

So, why do you need to pay this when you don’t get the associated health advantages?

Medicare is the part of the tax rates, however exemption can be filed when the financial year ends or when you permanently leave Australia. Bonus- Where and when applicable, the charges on Medicare shall be reimbursed as a segment of your refund on income tax.

Am I entitled?

Before explaining the details of the exemption procedure, let us have a look at the qualifying factors. To qualify filing for a Medicare exemption, here are the two core criteria:

  • You should be in Australia on a temporary visa like Student Visa, 457 Sponsorship or 417 Working Holiday.
  •  You should have earned more than $21,980 in the financial year.

When you are from any non-Commonwealth nation which does not include the Medicare advantages and fulfill the above criterion, an exemption certificate can be requested. This application cannot be applied if you are dwelling in Northern Ireland, Sweden, Italy, UK, Finland, Netherlands, Slovenia, Malta, Belgium or Norway

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