From November 2021, all Australian company directors are required by law to verify their identity with the Australian Business Registry Service and obtain a director identification number (director ID).
 
A director ID is a unique identifier you need to apply for once and will keep forever. It will help prevent the use of false or fraudulent director identities and trace your relationships to companies.
 
Who needs to apply and when – If you’re an eligible officer of:

• a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)

• an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).

 
If we are the registered ASIC agent for your companies, the directors will receive a follow-up email from us, in relation to the director ID application process and further information.
 
Should you require our assistance regarding any of the above, please do not hesitate to contact our office on 07 5532 4555.

Kind Regards
The Team at Lutz & Associates

The QLD Government has made available “2021 COVID-19 Business Support Grants for lockdown-impacted businesses in Queensland”. These include:

• $10,000 grant to employing small businesses and not-for-profit organisations with an annual payroll in Queensland of less than $1.3 million
• $15,000 grant to employing medium sized businesses and not-for-profit organisations with an annual payroll in Queensland between $1.3 million and $10 million
• $30,000 grant to employing large sized tourism and hospitality focused businesses and not-for-profit organisations with an annual payroll in Queensland of greater than $10 million.

To be eligible for these grants, you must:

• have turnover of greater than $75,000 per annum; and
• have been impacted by the South East Queensland lockdown commencing 31 July 2021 or the Cairns and Yarrabah lockdown commencing 8 August 2021 or any other Queensland lockdown in the month of August 2021.

You can demonstrate “impact” from the lockdown as either:

• direct impact: essentially, you could not operate your business at all due to lockdown compliance
• indirect impact: demonstrate a 30% or greater reduction in turnover for a one week period that includes at least one day of a lockdown (compared to the same period in 2019).

Applications must be completed electronically by the owner of the business (or a registered officer) by 16 November 2021 at http://www.business.qld.gov.au/supportgrant.
 
For greater detail on eligibility requirements and the application process, please also see attached guidelines from the QLD government: https://www.lutzassoc.com.au/guidelines-2021-covid19-business-support-grants-16-august-2021/
 
Covid support grants and payroll tax relief is also available for affected businesses in NSW and Victoria. For greater detail or further information regarding these, please contact our office directly.   

For a full summary of the 2021 Budget, we enclose a link below.
 
Please read through this document for a full analysis of the announcements.
 
Budget Summary: 2021-2022 Federal Budget Summary
 
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

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