JobKeeper Package

Details of the WA State Government’s Second Economic Relief Package

On 31 March 2020, the WA State Government announced economic relief measures for West Australians.

Key details of the package are:

Small and medium businesses:

  • $2,500 one-off credit to Synergy and Horizon customers who consume less than 50 megawatt hours per year (expected to help 95,000 businesses)
  • Payroll tax waived for 4-month period from 1 March to 30 June 2020 for businesses with taxable wages less than $7.5m.  This replaces the previously announced deferral of payroll tax.
  • Range of license fees to be waived for four months for small and medium businesses
  • Businesses impacted by COVID-19 can apply for interest-free payment arrangements and penalty remissions for payroll tax, transfer duty, landholder duty, vehicle duty and land tax
  • Small businesses impacted by COVID-19 will not be disconnected from water or electricity due to late payments, and no interest will be charged on deferred payments.

Household assistance:

  • Eligibility for the previously announced Energy Assistance Payment boost has been expanded to include new eligible applicants until 30 September 2020.  This means those who are unemployed due to COVID-19 who become eligible for a concession card will receive an upfront $305 credited against their electricity bill (from 11 May 2020) and up to a further $305 credited over the course of the next year.
  • No water and electricity disconnections, and no interest charged on deferred payments
  • The same interest-free deferral of payments referred to above for small businesses.

Should you have any questions regarding this relief package, please do not hesitate to contact this office on (08) 6212 7200 to discuss.

JobKeeper Package

Details of the Government’s Third Stimulus Package: The JobKeeper Payment:

On 30 March 2020, the Federal Government announced further economic stimulus measures for businesses and employees, called the JobKeeper Payment.

The payments will assist eligible employers that have experienced a downturn due to COVID-19 to retain eligible employees by providing a subsidy of $1,500 per fortnight per employee.

Businesses are encouraged to register via the ATO website their intention to apply for this stimulus payment.  Further details on how to register can be found below.

What payments will be made: 

  • Program commences on 30 March 2020
  • First payments to be made in first week of May 2020
  • Payments to be made for up to six months
  • Flat $1,500 per eligible employee

Eligible Employers are: 

  • Annual turnover less than $1b
  • Reduction in revenue of 30% or more since 1 March 2020 relative to a comparable period a year ago (of at least a month) – we expect further announcements on how to calculate and verify this requirement in the coming days
  • Applies to companies, trusts, partnerships and sole traders

Eligible Employees are: 

  • On the employer’s books as at 1 March 2020
  • Has been retained, and continues to be engaged by that employer (including recently stood down employees)
  • At least 16 years of age
  • Full time employees
  • Part time employees
  • Casual employees who have been with the employer for at least the previous 12 months
  • Employee is only eligible to receive this payment from one employer
  • Self-employed sole traders are also eligible
  • Must be Australian residents, or
  • New Zealand residents who hold a subclass 444 special category visa, or
  • Migrants who are eligible to receive the JobSeeker Payment

Other Important Information:

  • Employers must notify employees that they are receiving the JobKeeper payment
  • The payment must be paid in full to employees (after taking out withholding tax as required), including to employees whose usual salary is less than $1,500 per fortnight
  • If the employee’s wage inclusive of tax is usually under $1,500 per fortnight, then Super Guarantee is only required on their usual salary (not on the additional top up)
  • If the employee’s wage inclusive of tax is $1,500 or above per fortnight, then Super Guarantee applies as usual
  • Employees in receipt of the JobKeeper payment will not be eligible for the JobSeeker payments
  • Businesses will be self-assessing their eligibility.  Note that the ATO will likely conduct compliance activity in the future to ensure eligibility requirements were satisfied at the time
  • Employers will be required to provide monthly information to the ATO regarding the eligible employees.  This will be pre-filled with Single Touch Payroll data.

Further updates to come: 

The JobKeeper Payment has not yet been legislated and the full details on eligibility for the payment for both employers and employees are not yet fully disclosed.

We will continue to keep you updated with future developments.

Register intention to apply for the JobKeeper Payment: 

Employers can register their intention to apply for the payment at the below website:

https://www.ato.gov.au/Job-keeper-payment/

Information required to register your interest is:

  • Business Name
  • ABN
  • Contact Name
  • Email Address
  • Mobile No.

The ATO will then continue to provide updates and request confirmation of eligibility at a later time.

Should you have any questions regarding this stimulus package, please do not hesitate to contact this office on (08) 6212 7200 to discuss.

Further updates will be provided when available.

Details of the Government’s Second Stimulus Package

On 22 March 2020, the Federal Government announced further economic stimulus measures for individuals, businesses and the banking sector, to support Australia through the unprecedented impact of COVID-19.

This economic plan will provide significant benefits to small and medium-sized businesses and households in addition to the stimulus package announced on 12 March.

The key announcements relate to:

  • Additional payment to small businesses (up from $2k-$25k, to $20k-$100k)
  • SME loan guarantees
  • Temporary relief under ASIC and Corporations law requirements
  • Early release of Super benefits
  • Reduction in minimum pension payments
  • Increased access to welfare

More details below:

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$25,000 cash booster for your business: Details of the government’s $17.6 billion coronavirus stimulus package

The Federal Government last week unveiled their $17.6 billion stimulus package — which includes grants of up to $25,000 for small business, support for those employing apprentices and accelerated depreciation amongst other measures.

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GROW ACHIEVE PROTECT with Brentnalls WA – Newsletter, March 2020

  1. Getting Your Strategic Focus Right in 2020
  2. The question all CEOs should ask?
  3. Navigating Challenging Times: Myer – A Case Study on Growth Profit and Cashflow
  4. 2020 Mindshop Business Leader Survey – Business Leader Insights for Success

Read more

Newsletter

GROW ACHIEVE PROTECT with Brentnalls WA – Newsletter, November 2019

  1. Focus on Your Cashflow in the Lead up to the Christmas and New Year Holiday
  2. Fringe Benefits Tax at Christmas
  3. How to Get the Most From Your People in 2020
  4. Brentnalls WA News

Read more

Brentnalls WA BGN September 2019

Business Growth Network September 2019

Business Growth Network round 3, 2019: Discovering what every leader needs to know to keep their business innovative.

Read more

Newsletter

GROW ACHIEVE PROTECT with Brentnalls WA – Newsletter, August 2019

  1. 4 Ways to Increase Your Sales Revenue
  2. Trust – Why Trust is the Crucial Component for Customer Relationships and Business Development
  3. The Importance of a Professional Online Presence

Read more

Financial lender

Changing Market Creates a New Lending Environment

Australian financial markets are constantly changing and with these changes comes a new lending environment.

It is important to stay on top of and to understand these changes when approaching financial institutions (banks/lenders), to ensure your business receives a positive outcome.

We spoke to Ledge Finance Ltd, one of the markets leading finance facilitators, about their thoughts on the debt market as they currently see it, with a primary focus on the small-medium enterprises (SME) market and how it is being impacted. Further focus is on how this impacts the equipment finance market over the short to medium term – the lifeline of capital intensive balance sheet businesses.

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growth workshop in boardroom

Taking Control of Sustainable Growth 2019

Taking control of growth

How to address the challenges of sustainable growth in 2019 was under the spotlight at the recent BGN breakfast workshop. Using the idea of ‘learning in the flow of work’ we linked insights about business growth directly to day-to-day challenges of attendees. 

Looking at taking control of growth we discussed: 

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Newsletter

GROW ACHIEVE PROTECT with Brentnalls WA – Newsletter, May 2019

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Federal Budget update

Federal Budget Update – Key Takeaways

On 2 April, the Government released the Federal Budget for 19/20.

Below are the key takeaways that may be relevant to you and your group:

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News Flash - Single Touch Payroll

Mandatory Single Touch Payroll

The Government has passed legislation that requires real time reporting of payroll data to the ATO at each pay period, making it mandatory for all employers to use Single Touch Payroll from 1 July 2019.

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tax policy

Snapshot of the ALP Key Tax Policies

Snapshot of the ALP Key Tax Policies

Snapshot Of The ALP Key Tax Policies (Compared To Coalition Tax Policies)
The table below outlines some of the key ALP tax policies of interest.

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BGN_Leadership resilience

Leadership Resilience Strategies

Our recent Business Growth Network (BGN) event  focused on the important topic of leadership resilience.

Attendees discovered emerging leadership trends for 2019 and discussed boosting their probability of personal change success.

Interesting highlights included the idea of being more contrarian as a leader, why we think less is going to be more in 2019 and identifying (and dealing with) that one third of your team holding you back.

Attendees challenged each other on strategies to 100% guarantee success, including initiating 90-day accountability cycles then discussed ‘putting some rubber on the road’ with practical tips and tricks to put ideas into effect back in the office.

Please contact us if you’d like to discuss the thought-provoking leadership strategies and/or would like to learn more about our quarterly BGN breakfast events.

Christmas tree with presents

Season’s Greetings & Best Wishes from Brentnalls WA!

Season’s Greetings & best wishes for a happy, healthy and prosperous New Year from your team at Brentnalls WA!

 

P.S. Please note that our office will be closed from1:00pm on Thursday, 20 December 2018 and will re-open at 8:00am on Monday, 7 January 2019. In case of emergency, please leave a message at our office number 08 6212 7200. We will be checking our messages over the holiday period and will get back to you as soon as possible.
Christmas Fring Benefits

Christmas Fringe Benefit Tax (FBT) reminder

With Christmas fast approaching, it is usually the time of year where employers provide gifts or throw parties for their employees.

Follow this link to our article, which includes examples of how Fringe Benefits Tax (FBT) rules are applied and in some cases minimised, while also considering the other tax and GST rules to be aware of.

Please contact our office if you have any questions about FBT.

Newsletter

November 2018 Newsletter

Focus on Your Cashflow in the Lead up to the Christmas & New Year Holiday
Brentnalls Affiliation National Conference 2018
My Learnings from China – What Makes a Success Business & Do You Measure Your Competitive Advantage?
Proposed Changes to Division 7A
Practical Advice on Agile Leadership
Brentnalls Affiliation in the Top 100 Accounting Firms for 2018
Every Bit Counts
Did You Know We’re on LinkedIn?

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crowdfunding

Crowdfunding: Tax & GST Implications

In this article we explore what exactly crowdfunding is and the implications of crowdfunding for both the entity receiving funding and the entities that contribute or pledge money.

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The habits of Effective

The Top Habits of Effective CEOs: Agile Leadership

In this blog, we continue to explore the topic of agile leadership, which we covered in a recent breakfast we facilitated with business owners and CEOs.

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Agile leadership strategy

Intro to Agile Leadership

The focus of our recent Business Growth Network (BGN) event was agile leadership and what exactly this means for individuals and businesses as a whole.

According to the simplest definition, the word “agile” means having the ability to move quickly and easily and being able to think and understand quickly.

Given the huge number of publications on the concept, it may seem like it is just another buzzword in today’s world of business. However, this is not the case when it comes to agile leadership. In its recent report, the World Economic Forum published a list of top skills required to be successful as leaders in 2020, many of them related to being more agile.

The Agile Business Consortium (the UK based not-for-profit body) released their first white paper on the topic in late 2017. To this day, this document remains to be an extremely relevant guide on how to be agile as a business leader. According to it, the keys to agile leadership lie in the concepts of Communication, Commitment and Collaboration. Much of our discussion during the BGN centred around these three words and in particular, the following nine principles:

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Targeted amendments to Division 7A – Treasury consultation paper

Today, Treasury has released a consultation paper relating to the proposed amendments to the Div 7A rules that are due to apply from 1 July 2019.

 

The release of this paper is significant as it is the first detail provided by the Government on how the new proposed rules are intended to apply.

Prior to today’s release, the Board of Taxation’s report outlining recommendations to Government (finalised in 2014) was all we had available as a guide on how the new rules may be applied. Treasury has made substantial changes from those original recommendations.

The notable points that may affect your group are:

  • New Div 7A loans will be straight line 10 year – principal and interest paid each year (previously 7 years)
  • Interest rate will increase from current ATO benchmark rates, and will be the “Small business; Variable; Other; Overdraft – Indicator Lending rate most recently published by the Reserve Bank of Australia prior to the start of each income year”. This will result in substantially higher interest and repayments over the term of the loan
  • Existing Div 7A loans will transition to new rules, however loan terms will not be extended
  • 25 year loans WILL NOT be grandfathered. Transitional rules will allow for 2 years to transfer the loan to a new 10 year loan. Failure to convert these loans will result in a deemed dividend
  • The concept of “distributable surplus” is being removed – this will result in previously exempt loans and payments being captured by the Div 7A rules and triggering tax that previously would not be payable
  • Self-correction mechanism will apply to rectify Div 7A breaches – make good catch up payments will be allowed
  • Amendment period relating to Div 7A loans, payments and forgiveness will extend to 14 years as an integrity measure (up from 5 year amendment period)
  • Post December 2009 Unpaid Present Entitlements (UPE’s) will be captured by the new Div 7A rules (this includes Sub Trust arrangements set up under the Practice Statement 2010/4)
  • IMPORTANTLY, IT IS STILL NOT YET CLEAR whether Pre December 2009 Unpaid Present Entitlements (UPE’s) will be included in the new rules. The consultation paper is specifically asking feedback asking “Should UPEs arising prior to 16 December 2009 be brought within Division 7A?”
    The proposed changes will affect a large number of taxpayers and in some instances will require proactive tax planning to ensure tax effective structures are maintained during the transition.

We will continue to keep you informed of the changes as further updates come to hand.

August 2018 Newsletter

The latest edition of our Newsletter is on its way to your Inboxes! In it, you will find our Director’s reflection on the current financial market situation, Levi’s take on the importance of understanding the numbers, GrowthCon update & more.

Follow the link to access the Newsletter Download PDF of our August newsletter.

FBT exemption for minor private use of vehicles

Fringe Benefit Tax Update

The ATO has this week finalised the guideline relating to the “minor, infrequent and irregular” use of Fringe Benefit Tax (FBT) exempt motor vehicles, and there are some notable changes from the previously released draft guideline.

These updates can affect any business that provides utes, vans and similar exempt vehicles to their employees and Directors.

Employers can rely on the exemption from FBT provided under this guideline, if:

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