After dissecting the Government’s Federal Budget announcement last week, we now provide you with the key tax and accounting points we think you should be aware of.

This year’s Budget was touted as the most significant Budget in decades, reflecting an extraordinary year that has Australia reeling from the impacts of a global pandemic.

Focusing on spending, employment and health, it paves the way for the long road back to surplus, and out of the first recession in 30 years.

Key points to note:

• Changes to personal income tax rates, effective from 1 July 2020.  Subsequent to the Budget announcement last Tuesday, both Houses have passed the legislation, now awaiting Royal Assent;
• Expanding the access to Small Business Tax Concessions for businesses, including a JobMaker Hiring Credit;
• Extension and expansion of the immediate deduction for depreciable assets;
• For eligible companies, temporary loss carry back; and
• Only very minor changes to superannuation.

For a full summary of the Budget, we enclose a link below, to the 2020 Federal Budget Summary as prepared by NTAA (National Tax & Accountants’ Association Ltd).

Please read through this document for a full analysis of the announcements.

NTAA Budget Summary: Budget Handout 2020-21 NTAA

Should you require specific advice regarding the new measures, please don’t hesitate to contact our office on
07 5532 4555.

Kind Regards
The Lutz Team

Following our earlier emails, we can confirm the government has extended JobKeeper for the periods following 28 September 2020 (i.e. JobKeeper 2.0). However, in comparison with the original JobKeeper scheme, the qualification rules and subsidy amounts have changed.

We provide only a brief explanation of JobKeeper 2.0 in this email (below) as we have linked some detailed information regarding the updated qualification rules and amounts from the National Tax and Accountants Association, which provide greater detail and more in depth information surrounding this.

EXTENSION OF JOBKEEPER

The JobKeeper extension is broken into two separate periods, as follows:

Extension Period 1 – Applies to fortnights that start after 28 September 2020 and end before 4 January 2021. Simply, to qualify, an entity’s actual GST Turnover for the September 2020 quarter must have declined by relevant percentage (likely 30%), compared to the September 2019 quarter.

Extension Period 2 – Applies to fortnights that start after 3 January 2021 and end before 29 March 2021. Simply, to qualify, an entity’s actual GST Turnover for the December 2020 quarter must have declined by relevant percentage (likely 30%), compared to the December 2019 quarter.

Unlike the original JobKeeper scheme, qualification is based on actual turnover for JobKeeper 2.0, not projected turnover. This means, the actual GST turnover for an entity must decline for the September 2020 and/or December 2020 quarter, relative to the same quarter in 2019.

Potentially, an entity/business can still qualify for JobKeeper 2.0 using an “alternative turnover test” if the September or December 2019 quarter is not an appropriate comparison period for a number of reasons (sickness, drought, natural disaster, business restructure etc). If you consider this is a possibility, we suggest you contact our office to discuss this further.

We note, an entity/business that qualified for the original JobKeeper scheme is required to “requalify” to be entitled for the either of the JobKeeper 2.0 extensions. However, an entity/business that did not qualify for the original JobKeeper scheme can still qualify for JobKeeper 2.0. Also, if an entity does not qualify for JobKeeper 2.0 Extension Period 1, it can still qualify for Extension Period 2.

REVISED PAYMENT RATES

Under the original JobKeeper scheme, there was a payment rate of $1,500 for each “eligible employee” per fortnight, regardless of the number of hours worked. However, JobKeeper 2.0 has a 2 tiered payment system, as follows:

Extension Period 1

Higher Rate: $1,200 per fortnight – For employees with 80+ hrs over a 28 day reference period.
Lower Rate: $750 per fortnight – For employees with less than 80 hrs over a 28 day reference period.

Extension Period 2

Higher Rate: $1,000 per fortnight – For employees with 80+ hrs over a 28 day reference period.
Lower Rate: $650 per fortnight – For employees with less than 80 hrs over a 28 day reference period.

Like the original JobKeeper scheme, the “wage condition” must be satisfied before an entity can receive the JobKeeper amount (i.e. the employer must have already paid the employees the fortnightly amount required before the employer can receive the amount for JobKeeper 2.0). For fortnights starting 28 September 2020 and 12 October 2020 only, the ATO has indicated it will allow employers up to 31 October to satisfy this. Effectively, this allows an entity/business some time to assess its eligibility before it pays employees the required JobKeeper amount.

JobKeeper 2.0 is still available in respect of business participants of qualifying entities (i.e. sole traders, companies and trusts). However, the tiered payment systems for employees in relation to hours worked effectively applies.

We hope this provides you with a brief outline of JobKeeper 2.0 for you to consider if your business may be eligible and the potential amount your business may be entitled to. As the rules are quite detailed and therefore you may need further guidance, we have linked some detailed information regarding the updated qualification rules and amounts for further reference and consideration below.

NTAA Reference Papers:

Determining supplies under new actual GST DIT

JK 2.0 – Alternative DIT tests

Extension of JKPs

However, if you require specific advice or you have any other questions relating to this, please do not hesitate to contact our office on 07 5532 4555.

Kind Regards
The Lutz Team

As you are aware, we have previously provided information to keep you updated on the JobKeeper wage subsidy introduced by the Government in March/April 2020.

Under the initial rules, the Jobkeeper payment was only available to business in respect of “eligible employees”, which required employees to be employed at 1 March 2020. However, this is has just been amended by the Government and now requires the employees to be employed at 1 July 2020.

Where employees now qualify (who previously did not), businesses can obtain the JobKeeper payment from 3 August 2020 in respect of these employees (if the conditions are satisfied).  However, employers must take action immediately to ensure new eligible employees are provided with an employee nomination form (link below) by Monday 24 August 2020.

For more specific and detailed information regarding this please refer to the links below or contact our office.

We also note that JobKeeper 2.0 has been announced by the Government. This extends JobKeeper from October 2020 to December 2020 and/or March 2021, at reduced rates, for businesses (if they qualify).  We will provide additional information regarding this in the coming weeks as more details are released.

Please click on the below links for further information:

NTAA Paper: Urgent JobKeeper Action Required

NTAA Paper: JK_New_Employees

ATO Employee Nomination Notice: Employee Nomination Notice (1 July Employees Only)

If you require specific advice or you have any other questions relating to this, please do not hesitate to contact our office on 07 5532 4555.

Kind Regards
The Lutz Team

Welcome to our July 2020 newsletter.

Amidst a year plagued by the worst pandemic in over a century, we have somehow managed to reach a new financial year (although I think we all wish it was a new calendar year!).

In this bulletin, we will look at some of the tax highlights, both due to COVID-19 and the new financial year, that may be of interest to you and your business.

As usual, please contact us directly for specific advice or further information about anything you read here.

We wish you all the best navigating through this new financial year and hope that you, your families and your businesses stay healthy throughout these difficult times.

Click here to read the newsletter: Newsletter July 2020

Following on from our post last Friday, of the latest details of the Federal Government’s JobKeeper Stimulus Package, we are now pleased to provide a summary of State (& Territory) COVID-19 Stimulus Packages.

Whilst the majority of our clients are Queensland specific, a number of clients have interests in multi-state jurisdictions.

Therefore, we provide the full package, as prepared, requiring a partial ’scroll-down’ to get to Queensland.

Please click on the below link to view the document.

https://www.lutzassoc.com.au/wp-content/uploads/2020/04/SandT-COVID19-checklist.pdf

Again, our membership allows our firm to pass this newsletter on, in its current format.

Please do not hesitate to contact our office on 07 5532 4555 if we can assist further.

Regards,

The Lutz Team.

As many of you would be aware, a wage subsidy payment directly from the Government to “eligible employers” (called the JobKeeper Payment) has been just been announced and legislated. The payment will be $1,500 per fortnight, for each “eligible employee” from 30 March 2020 to 27 September 2020 (a period of 26 weeks).

For a typical Small to Medium sized business to qualify, an employer must be able to show it has/will suffer a decline in its “projected turnover” (i.e. projected income/sales) by at least 30% for either a calendar month, from March 2020 to September 2020, or for the quarters ending 30 June 2020, or 30 September 2020. Applications applying to later periods will not be eligible for the JobKeeper payments in earlier periods.

As the JobKeeper payment is aimed to encourage employers to retain staff, “eligible employers” are then required to pay each eligible employee at least $1,500 per fortnight during the period.

Please also note, either: a sole trader, a partner in partnership, a shareholder/director of a company or a beneficiary of a trust can also receive the JobKeeper payment, if they are ‘actively engaged’ in the business, but not officially employed as an employee (in certain circumstances). However, only one individual is permissible, per entity application.

For more specific and detailed information surrounding the JobKeeper payment, please click on the below link, that we can share with you, as a subscribing member of the NTAA:

NTAA Paper: JKP 15.04.20

If you believe your business will qualify for the JobKeeper payment, details of how to enrol and apply are contained in the link below:

https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/

You can enrol anytime from Monday 20th April through to Sunday 26th April, for the month of April. Due to this very short enrolment period, we strongly urge you to enrol as early as possible.

Before enrolling, you will need to ensure you have registered for your myGovID, linked it to your business and have access to the Business Portal, for the applying entity. In our experience, registering your myGovID can be a tricky process, so we suggest setting this up as soon as possible.

If you are not sure whether your business can qualify for the JobKeeper payment and you would like to discuss further, or if you have any other questions relating to this, please do not hesitate to contact our office on 07 5532 4555.

Kind Regards
The Lutz Team

Earlier this week, the Federal Government announced the extraordinary “Job Keeper” stimulus package, which will see it pay the salaries of up to six million Australians employed and hence, provide much needed financial relief for many businesses during this uncertain time.

With an offer of $1,500 per fortnight, per ‘eligible employee’, many questions arise.

To address many of the queries our office has fielded so far, we have compiled the attached information as a general guide, which may assist you in following the guidelines and rules as they have currently been announced by the Australian Government.

At this point however, there is no draft legislation available and even the ATO have been unable to provide the specific information required for many businesses, at this point. It is however, in this context that we offer this information as a general guide at this stage.

Click here to view the document: https://www.lutzassoc.com.au/wp-content/uploads/2020/04/Job-Keeper-Stimulus-Package.pdf

Click here to register your interest with the ATO: https://www.ato.gov.au/general/gen/JobKeeper-payment/

We will continue to bring you more information, on both this package and other government announcements, as they come to light.

In the meantime, should you wish to discuss any of this in further detail, please contact our office on 07 5532 4555.

We look forward to assisting you where we can, to get through these challenging times.

Kind Regards
Steven Lutz & Team

As the impact of the coronavirus continues to evolve, we, along with many of you, face further uncertainty and inevitably challenging times ahead.

The COVID-19 pandemic is affecting all of us and we wanted to let you know how we are addressing it for the foreseeable future.

Our top priority is to protect the health and well being of our employees, clients and families.

Another top priority of ours is you, our clients, and your businesses.

Currently we are open and trading as normal. We have increased the cleaning and hygiene practices within our office and are complying with government instructions to help combat the spread of the virus.

We have some staff already working remotely, with measures in place to facilitate the rest of our team to work remotely, should this be best practice in the coming days or weeks.

We kindly ask that you please bear with us as we navigate these times of change.

We are fully committed to continuing to serve our clients, striving to provide solutions and professional services, with minimal disruption, where possible.

IMPORTANT INFORMATION: ATO RELIEF

Businesses impacted by the coronavirus should contact the ATO to discuss relief options.

Options include:

• Deferring by up to four months – the payment date of amounts due through the Business Activity Statements (BAS), including: PAYG instalments, income tax assessments, FBT assessments and excise.
• Allowing businesses on a quarterly reporting cycle, to opt into monthly GST reporting, in order to get quicker access to GST refunds they may be entitled to.
• Allowing businesses to vary PAYG instalment amounts to zero for the March 2020 quarter. Those that do so, can also claim a refund for any instalments made for the: September 2019 and December 2019 quarters.
• Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.
• Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low-interest payment plans.

Please note that all of the above options must be applied for. Please contact the ATO directly on 1800 806 218 or contact our office, for assistance.

Please note: Superannuation Guarantee obligations, remain the same at present, meaning payable as per usual.

FURTHER INFORMATION: GOVERNMENT STIMULUS PACKAGES

We also attach below, some important and helpful information regarding the Government’s stimulus packages and updates that may be useful for your businesses.

As usual, none of this is provided as advice, but merely trying to breakdown some of the information and provide some helpful resources all in the one place.

We hope you find some value out of these documents, and encourage you to reach out and contact us should you have any questions or require further explanation.

Government Stimulus Package: https://www.lutzassoc.com.au/wp-content/uploads/2020/03/Coronavirus-special-update.pdf

Payroll Tax Relief: https://www.lutzassoc.com.au/wp-content/uploads/2020/03/payroll-tax-relief-QLD-as-at-Tues-24-March-2020.pdf

We thank you for your understanding during these times.

Should you wish to discuss any of this in further detail, please contact our office on 07 5532 4555.

– The Lutz Team.

With technology now at the forefront of almost everything we do, our aim is to utilise it more than ever, to enhance efficiencies and streamline client communication.

We understand that in our role as a professional services firm, we are responsible for extremely sensitive and confidential information. Therefore, we must remain vigilant in keeping this information secure and minimising the risk of exposure to hackers and the ill-intentioned.

We also understand that as a document intensive business, paper production has a significant impact on our environment. By utilising technology, we can dramatically reduce our carbon footprint and conserve natural resources and landfill space.

Will all of this in mind, we are pleased to offer an exciting new service, which will transform the way you sign and return documents to us.

Enter, DocuSign.

What is DocuSign?

DocuSign is a cloud-based, electronic signature service that allows you, our clients, to receive, sign and return documents to us with just a few simple clicks.
No more printing, signing, scanning and emailing back signed documents. And certainly no more visits to roadside post boxes or your local post office.

Is DocuSign Secure and legally binding?

Under Australian law, a written signature is not necessarily required to validate an agreement. Contracts are generally valid if legally competent parties reach an agreement, whether verbally, electronically or written on paper.

DocuSign uses world-class security software to protect the integrity of your electronic signature and all associated computer systems and networks that process your data.

Please click on the below link if you would like to know more about DocuSign’s security measures and legality in Australia.

Security Link: https://www.docusign.com/trust/security/esignature

Legality Link: https://www.docusign.com/how-it-works/legality/global/australia

How does DocuSign work?

You will receive an email asking you to review and sign documents.
By clicking on “Review” it will take you to a secure website to access the documents.

Note: You can sign on almost any device with an internet connection – mobile phone, tablet or computer.

Follow the prompts, adopt a signature and hit finish. Once completed, we will automatically receive a signed copy of the signed document.

Need multiple people to sign the document? The same email will be sent to them for signing. Once signed by all parties, we will receive one completed document, with all signatures. No need to forward the email on to other signatories or email us back once completed.

If you would like a step by step tutorial on how to sign a document using DocuSign, please click on the below link:

Link: https://support.docusign.com/en/articles/How-do-I-sign-a-DocuSign-document-Basic-Signing

We trust this initiative will be a very positive experience for our clients and greatly assist in the timeliness of returning these important documents to us.

Should you have any question or queries about anything you have read here, please don;t hesitate to get in touch with our team on (07) 5532 4555 or email questions@lutzassoc.com.au

Welcome to a new decade!

Like most, we are now well and truly back into the swing of things after a well deserved break over the Christmas period.

And with this, we are pleased to deliver our first newsletter of 2020.

Consisting of all the important updates in the wonderful world of tax, please take a moment to click on the below link and have a read.

If you have any questions or queries about how you or your business might be affected by anything you see here, please reach out to our office for further information.

We look forward to bringing you more updates as the year progresses, and wish you well for another big year ahead.

Click Here: Newsletter Jan 2020

The Lutz Team