The year is quickly drawing to a close and as we reflect on the year that was, we can all agree that it has been a year like no other!
The team at McDonnell Hume Partners would like to wish you all a very Merry Christmas and a safe and happy New Year.
We wish to advise that our office will be closed from Thursday 24 December 2020 and will re-open on Monday 4 January 2021.
We would like to take this opportunity to thank our clients for a wonderful year and we look forward to continuing to work with you all in 2021.
In House Tidbits
The administration of JobKeeper has kept us on our toes and as it winds up in March next year, we anticipate that the office will be a sea of tax return processing!
If you haven't already, please forward your 2020 financial year tax work for processing. You can drop this to our office or email it through to us at email@example.com. Appointments are also welcome. Please call the office to schedule your preferred time.
We are almost half way through the tax year. If you are planning on any new ventures in the new year, be sure to contact us to help you through any of your personal or business changes.
In the Christmas rush don't forget to attend to the following (where applicable);
Monthly Activity Statement due date for lodging and payment21 December 2020
QBCC Annual Reporting Due31 December 2020
Coal Mining LSL Audit Due31 December 2020
JobKeeper Declaration for Decemberdue by14 January 2020
October-December Superannuation Contributions Due by28 January 2021
Tax Time 2020/2021
Should you have any questions or queries relating to any of the following information please give us a call to assist you understand your obligations and any changes.
The JobKeeper extension has been rolled out which sees it extended until 28 March 2021. There are two separate extension periods. Extension one is from 28 September 2020 to 3 January 2020 and the second, from 4 January 2021 to 28 March 2021.
For each of these extension periods, an additional actual decline in turnover test applies and the rate of JobKeeper payment is different.
Important points relating to the extension of the JobKeeper Payment are outlined in the ATO fact sheet below.
Registrations for the JobMaker Hiring Credit scheme have now opened.
This is administered by the ATO and will run for 12 months from 7 October 2020 to 6 October 2021.
Eligible employers are able to access up to $200 per week for each eligible additional employee aged 16 to 29 years and up to $100 per week for each eligible additional employee aged 30 to 35 years.
To be eligible, the employee will need to have worked for a minimum of 20 hours per week averaged over a quarter, and received the JobSeeker payment, Youth Allowance or Parenting Payment for a least one month of the three months prior to when they are hired.
Links below provide further information on eligibility and registration
Australian Taxation Office. (2020). JobMaker Hiring Credit. Available: https://www.ato.gov.au/General/JobMaker-Hiring-Credit/. Last accessed 9/12/2020.
The HomeBuilder grant for eligible owner occupiers building a new home or substantially renovating an existing home will be extended to 31 March 2021.
The following changes were announced;
Eligible owner occupiers will receive a $15,000 grant for new build contracts signed between 1 January 2021 and 31 March 2021
For new build contracts signed from 1 January 2021, the property price cap will be increased to $950,000 for NSW and $850,000 for Victoria
The construction commencement deadline will be extended from 3 Months to 6 months for all eligible contracts signed on or after 4 June 2020
The existing program criteria continues to apply, including the new build property price cap of $750,000 for all other states and territories. The $25,000 grant will continue to be available for eligible contracts signed on or before 31 December 2020.
Wolters Kluwer. (2020). Home Builder Grant Extended. Available: https://iknow.cch.com.au/document/xatagnewsUio3311406sl1206777457/homebuilder-grant-extended. Last accessed 9/12/2020.
HomeBuilder program criteria
Contracts signed between 4 June and 31 December 2020 (inclusive)
Contracts signed between 1 January and 31 March 2021 (inclusive)
Grant amount (new builds and substantial renovations)
Construction commencement timeframe
Construction must commence within six months of the contract being signed.
New build price cap
Property value cannot exceed $750,000
Property value cannot exceed:
$950,000 in NSW;
$850,000 in Victoria; or
$750,000 in all other States and Territories.
Substantial renovation price cap
The value of the property cannot exceed $1.5 million (pre renovation).
Applications must be submitted to the relevant State Revenue Office by 14 April 2021.
Licensing requirements for builders/developers
Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
Other eligibility criteria
Existing program eligibility criteria remains.
Australian Government-Treasury. (2020). HomeBuilder. Available: https://treasury.gov.au/coronavirus/homebuilder. Last accessed 9/12/2020.
(1) Australian Taxation Office - Home
Holiday home owners: Renting out your property to family or friends at 'mates rates' over the holiday?
Remember: If they're only paying a percentage of what you'd normally charge for rent, you'll need to apportion your deductions; usually equal to the amount of of rent received.
Sick of running laps of the house trying to find your receipts every tax time?
Or maybe you're struggling to read the numbers on the bottom of your faded receipts?
If your shoebox filing system just isn't cutting it anymore, our myDeductions tool is for you! Simply snap a pic of your receipts, and they'll be at your fingertips the next time you need them. Download the app and get started now at http://www.ato.gov.au/.../Online.../ATO-app/myDeductions/
(1) Australian Taxation Office - Home
Employers: Have you updated your payroll software or processes to reflect the updated tax tables?
Remember you must be withholding the correct amount from payments you make to employees by 16 Nov 2020. Check out the updated tax tables at www.ato.gov.au/Rates/Tax-tables/
(1) Australian Taxation Office - Home
Australian Taxation Office. (2020). Facebook Updates. Available: https://www.facebook.com/atogovau. Last accessed 9/12/2020.
Out Of Interest
Planning on Splurging at the Boxing Day Sales?
Before you think about buy now pay later services make sure you understand how they work and what fees you'll pay.
Buy now pay later payment services allow you to delay payment or pay by instalments (often fortnightly) over a period of time. Here Money Smart explains how these payment services work, what fees you'll pay and how to avoid getting into financial trouble if you're using these services
Australian Securities and Investments Commission. (2019). Buy Now Pay Later Services. Available: https://www.moneysmart.gov.au/borrowing-and-credit/other-types-of-credit/buy-now-pay-later-services?fbclid=IwAR16-lhh0CgYeOsrhuy3jjsOf8MZddOB5PVEa51Uoi3LIb6gsREBmwdjk5o. Last accessed 10/12/19.
Harvard Reference Generator Study Tool: Referencing a Web Page for a Student's Essay, Dissertation or Thesis | Neil's Toolbox
Please contact us for any clarification on any tax matters or issues pertaining to your individual circumstances.
Be sure to check out the links below and keep up to date with the due dates for your tax obligations.
You can also organise an appointment with one of our staff via our special online appointment form. This is particularly useful if you struggle to find the time during normal business hours to phone. Simply click here to book an appointment.