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Here is what the sole traders need to know about JobKeeper 2.0

Here is what the sole traders need to know about JobKeeper 2.0

It’s been a while since the introduction of the government scheme called JobKeeper to keep the working-class people of Australia employed. But recently some modifications were introduced in this scheme to make it more convenient and accessible for the people who need it the most. In any moment like this, the sole traders are in a state of panic as they don’t know where to find the most relevant and authentic information about this refreshed scheme. As the people are already aware of the strict rules of the department for tax return Melbourne, they need to be updated about the latest information to avoid any trouble. You don’t have to worry much about it as we bring to you the most relevant information about it in this blog.

These changes will come into effect from September 28, 2020, in order to make this scheme more suitable for the sole traders. Later sections of this blog will provide you all the essential information about the changes made if you are a sole trader.

The following updates have been made in JobKeeper 2.0:

  1. Who is eligible for JobKeeper 2.0?
  • You have to keep in mind that only those persons are referred as sole traders who run the business not those who are working in that businessman.
  • As of the regulations mentioned in the new scheme, from 28 September 2020, any business that has seen a drop in their turnover is eligible for this as well as all the future versions of this scheme.
  • In case, you meet all the criteria except for a few, then there is no need to worry. Because there is a way that enables the Commissioner to exercise his power of discretion. In that case, you may get some additional time to gather all the other documents for eligibility. You should appeal to the commissioner for this opportunity.
  • Only those businesses will be eligible for this scheme who meet the eligibility criteria described in the new scheme.
  • In case you have any difficulty in any of these processes, the department for online tax return Melbourne is always there to help you.
  1. What can one do if he/she is not available on the specified date for qualification due to sickness or injury?
  • If you have missed the specified date for qualification, there are some special arrangements for you. Go to the page of the Coronavirus Economic Response Package. On this page, you should read the Sole Trader or Small Partnership with Sickness, Injury or leave.
  1. How much money will I get from JobKeeper 2.0?
  • There are different tiers that have been made under this program. How much money you are going to get from this scheme depends on the tier for which you have qualified. As the situation has become so harsh for business owners that they doubt whether they will be able to gather enough money enough for individual tax return, they are constantly asking about the amount of money they are going to get from this scheme. For more information, you should go to the JobKeeper payments section on the official website of ATO.
  • Broadly speaking, if you are a sole trader and you have worked for less than 20 hours a week in the last four weeks before 1 March 2020, you will qualify for the lower tier of JobKeeper. And, in case you have worked for more than 20 hours a week before 1 March 2020, you now qualify for the higher tier of payment of the JobKeeper scheme.
  • Take a look at the payments plan for the higher and lower tier of JobKeeper:

Lower tier:

  • $650/fortnight from 4 January 2021 to 28 March 2021.
  • $750/fortnight from 28 September 2020 to 3 January 2021.
  • $1500/fortnight until 27 September 2020.

Higher tier:

  • $1000/fortnight from 4 January to 28 March 2021
  • $1200/fortnight from 28 September 2020 to 3 January 2021
  • $1500/fortnight from until 27 September 2020.
  • There are some discretions over the eligibility hours for this scheme. These discretions are valid for those who have either volunteered in the bushfires or they were unable to work because of the restrictions put due to COVID-19.
  1. What about the new employees arriving in your business:
  • No any employee is eligible for this scheme if he has joined your business after 1 July 2020.
  1. Guidelines about the Advance payment of JobKeeper amount:
  • There have been several appeals from the sole traders about the cash flow demands of this scheme. The government reimburses the money in arrears even in the new system.
  1. What can one do if he is seeing a decline in the turnover after March 1?
  • There may be some instances where someone’s business had started declining after March 1, 2020. So, in the new scheme, a way has been designed that enables them to enroll for JobKeeper 2.0.

The Australian government is trying its best to make the business owners capable of coping with this situation. They are introducing new schemes. Such a situation has challenged the people working under the governmental department. That is why the government is always looking for officers who are recruited after giving them the best tax training. That enables them to work under any situation.


In any matter associated with economy and tax, Accounts NextGen is always there to provide you authentic information about the situation going.

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.

Are you looking to Maximize your Tax Refund? But How?

Everything, you must be aware of about the ATO’s flat rate if you’re planning to use it for your tax return.

The end of the ‘financial year’ is on edge. Lots of challenging and unforgettable curves have already bumped into people’s lives, both financially and physically, and anticipating more tax refunds is a usual thing.

Shortcuts can provide you relief to some extent, but your entire efforts may turn out a big failure because already, a team of experts has been assigned with the work to collect the entire expenses, bills, and receipts on your name. So they don’t miss out even a little chunk of dollars to be mentioned in your tax return.

To battle with Coronavirus, the lockdown has forced people to turn their lounge room into an office area. Therefore, after mapping out the entire situation, the Australian tax office (ATO) has also introduced higher Flat rates.

Accordingly, ATO uses a simplified process that brings easiness for people to claim rates. For instance- people who are following “work from home” ATO come across the decision to lift the standard hourly rates from 52 cents to 80 cents per working hours.

Before opting for the flat rate and rather than working out on calculating expenses, with an alerting message, the tax experts outline various reasons why figuring out things and taking steps ‘carefully’ are essential.

Spokesperson Andrew Gardiner, from National Tax and Accountants’ Association, mentioned it the most important thing. Although, the concession (flat-rate) includes cooling, electricity bill, off heating, expenses incurred on office expenses like printer, computer, paper, and cartridge.

Certainly, it’s not a big claim; hence people must be sensible and careful as they’re only getting 80 cents per hour for standard 40 hours a week, which means only $32.

Choosing the flat rates will imply that the taxpayer is washing hands from claiming the amount on purchasing the new computer, chair, and desk while they were working from home.

Remember, you can’t think about opting ATO’s 80 cents per hour claim if you are choosing this option. Lately, you also have to forgo your right to the claim of office expenses. Like for electricity, internet, or telephone expenses, you can’t expect to claim separately. The right to claim for deprecation on a computer printer, paper, and cartridge will also be forfeited.

The Ways To Maximize Your Tax Refund


As mentioned by (Platinum Accounting & Platinum Professional Training’s CPA and managing director), Coco Hou, travel can be necessary for the following reasons:-

  • You may have to go out of your home to purchase some essential items; hence, you incur costs.
  • You incur a cost as you have to put petrol in a car while traveling.

The things you may leave unnoticed

Expenses that you incur while subscription for services or car insurance are some of the most notable costs you incur while working from your home, and that you must include.

Slip up on ‘what to claim?’

Global pandemic with giving rise to lots of problems has also introduced some confusing situations related to claim. What to claim, and what can’t be claimed? However, according to Ms. Hou, the answer is clear: every item that comes out of your employment work is un-claimable since they aren’t part of your regular working environment. Like toilet paper or food.

Final statement ‘what do I need?’

The ATO (Australian Tax Office) always asks people for a number of hours and a list of expenses they have incurred in the last four weeks while working from home- said Mr. Gardiner. Hence, you should always be ready with the documents that hold the record of your expenses.

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.

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