Business representatives can no longer link an ABN to their individual MyGov account or sign into the Business Portal using an Auskey.

To access the Business Portal they will now need to login and link their business with a MyGovID.

The process is as follows:

1.  Each associated individual needs to download MyGovID app and set up their IDs to a ‘standard’ level of authorisation (upload details of 2 primary identification documents).

2.  The primary authorised contact (as listed with the Australian Business Register (ABR)) for the business needs to login to Relationship Authorisation Manager (RAM) using their MyGovID:

https://info.authorisationmanager.gov.au/

If the authorised contact with ABR is not up-to-date, an associated person will need to login to the ABR and update this:

https://www.abr.gov.au/business-super-funds-charities/updating-or-cancelling-your-abn/update-your-abn-details

Please also note that Griffin & Associates can also update ABR on our client’s behalf.

3.  They then need to select ‘Link your business’ and enter their details. This will search the ABR database for any businesses where they are listed as an Authorised Individual.

If the business only has an Authorised Organisation with the ABR (such as Corporate Trustee), the Director or Secretary of that Organisation will need to call RAM on 1300 287 539, identify themselves and get an authorisation code which is entered into the RAM login.

4.  After the business is linked they can then add additional users by selecting ‘View or manage authorisations’, select the relevant business, then ‘add new user’ and follow prompts to enter user details and access level. The new user will receive an authorisation code to link this business to their own MyGovID.

5.  Once the above is complete, authorised users will now be able to login to the ATO Business Portal using their MyGovID and see their linked businesses:

https://bp.ato.gov.au/

Date: 22/04/2020

Eligibility

You will be eligible to receive the cash flow boost if you are a small or medium business entity, including not-for-profit organisations, sole traders, partnership, company or trust that:

• held an ABN on 12 March 2020 and continues to be active
• has an aggregated annual turnover under $50 million (generally based on prior year turnover)
• made eligible payments you are required to withhold from (even if the amount you need to withhold is zero).

Eligible payments include:

• salary and wages
• director fees
• eligible retirement or termination payments
• compensation payments
• voluntary withholding from payments to contractors.

In addition, you must also have either:

• Derived business income in the 2019 income year and lodged your 2019 tax return before 12/03/20
• Made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant BAS before 12/03/20.

The ATO will generally determine whether you are a small or medium business entity based on your most recent income tax assessment for a prior year.  However, where you do not have any income tax assessments for prior years, you may still be eligible if the ATO are satisfied, based on other information we hold, that you are in business and would have an aggregated annual turnover under $50 million.

The ATO may also give you further time to provide notice that business income or supplies were made.  This will generally be the case where you have a lodgment deferral in place.  If you did not have a lodgment deferral in place, you will not become eligible if you lodge or amend returns for those periods now.

Accessing the cash flow boost

You do not need to apply for the cash flow boosts.  If you are eligible, the cash flow boosts will be automatically applied to your account when you lodge your activity statement for the relevant periods.

To access the cash flow boost, you must lodge your activity statement.  If you do not need to lodge an activity statement in respect of you PAYG withholding we are working through a solution and will update our website with more information on what you need to do.

The cash flow boosts will be applied to reduce liabilities arising from the same activity statement. This will result in eligible entities being required to pay less to the ATO.

Generally where a credit exceeds your other tax liabilities, we will provide you with a refund of the excess amount. Where a credit exceeds your other tax liabilities, we will provide you with a refund of the excess amount.

Tax consequences

All cash flow boosts are tax free (non-assessable non-exempt income) and are not required to be paid back when your cash flow improves.  However, if you have been paid more cash flow boosts than you are entitled to, you will be required to repay the excess.

The boost is not subject to GST as you are not making or agreeing to make a supply for the payment.

You will still be entitled to a deduction for PAYG withholding paid.

There is no effect on tax paid by employees in respect of their salary and wages.

Schemes

You will not be eligible for cash flow boosts if you (or a representative) have entered into or carried out a scheme for the purpose of:

• becoming entitled to cash flow boosts when you would otherwise not be entitled, or
• increasing the amount of the cash flow boosts.

This may include restructuring your business or the way you usually pay your workers to fall within the eligibility criteria, as well as increasing wages paid in a particular month to maximise the cash flow boost amount.

Any sudden changes to the characterisation of payments made may cause the ATO to investigate whether the payments are in fact wages.   If the payments are wages, the ATO may consider the characterisation of past payments, including whether they should have been subject to PAYGW and whether super guarantee contributions should have been made.  You may also have FBT obligations that have not yet been met.

Source (30/03/2020): Australian Taxation Office

Overview

The Government is enhancing the Boosting Cash Flow for Employers measure it announced on 12 March 2020.  The Government is providing up to $100,000 to eligible small and medium-sized businesses, and not for-profits (NFPs) that employ people, with a minimum payment of $20,000.

Small and medium-sized business entities with aggregated annual turnover under $50 million and that employ workers are eligible.  NFPs, including charities, with aggregated annual turnover under $50 million and that employ workers will now also be eligible. This will support employment at a time where NFPs are facing increasing demand for services.

Under the enhanced scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000.

An additional payment is also being introduced in the July – October 2020 period.  Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments.

Eligibility – Boosting Cash Flow for Employers payments

Small and medium sized business entities and NFPs with aggregated annual turnover under $50 million and that employ workers will be eligible.  Eligibility will generally be based on prior year turnover.

The payment will be delivered by the ATO as an automatic credit in the activity statement system from 28 April 2020 upon employers lodging eligible upcoming activity statements.

Eligible employers that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 100 per cent of the amount withheld, up to a maximum payment of $50,000.

Eligible employers that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax.

The payments will only be available to active eligible employers established prior to 12 March 2020. However, charities which are registered with the Australian Charities and Not-for-profits Commission will be eligible regardless of when they were registered, subject to meeting other eligibility requirements. This recognises that new charities may be established in response to the Coronavirus pandemic.

Eligibility – Additional payment

To qualify for the additional payment, the entity must continue to be active. For monthly activity statement lodgers, the additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to a quarter of their total initial Boosting Cash Flow for Employers payment following the lodgment of their June 2020, July 2020, August 2020 and September 2020 activity statements (up to a total of $50,000). For quarterly activity statement lodgers the additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to half of their total initial Boosting Cash Flow for Employers payment following the lodgment of their June 2020 and September 2020 activity statements (up to a total of $50,000).

Timing – Boosting Cash Flow for Employers payments

The Boosting Cash Flow for Employers payment will be applied to a limited number of activity statement lodgments. The ATO will deliver the payment as a credit to the entity upon lodgment of their activity statements.  Where this places the entity in a refund position, the ATO will deliver the refund within 14 days.

Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020.  Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgments.  To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (300 per cent) in the March 2020 activity statement.  The minimum payment will be applied to the entities’ first lodgment.

Timing – Additional payment

The additional payment will be applied to a limited number of activity statement lodgments. The ATO will deliver the payment as a credit to the entity upon lodgment of their activity statements. Where this places the entity in a refund position, the ATO will deliver the refund within 14 days.

Quarterly lodgers will be eligible to receive the additional payment for the quarters ending June 2020 and September 2020. Each additional payment will be equal to half of their total initial Boosting Cash Flow for Employers payment (up to a total of $50,000).

Monthly lodgers will be eligible to receive the additional payment for the June 2020, July 2020, August 2020 and September 2020 lodgments.  Each additional payment will be equal to a quarter of their total initial Boosting Cash Flow for Employers payment (up to a total of $50,000).

For further information, please click here to read the full fact sheet.

Source (23/03/2020): Australian Government

Given the advice regarding social distancing and the escalating situation surrounding COVID-19, all of the accountants at Griffin & Associates will commence working from home next week.

We have long embraced technology and flexible work practices, so working home is essentially business as usual for our team.

If you need to contact any of our staff members, please phone the office number during work hours and your call can still be transferred through to the relevant staff member who will have their work phone at home.

At this stage Brett Zecchini is still available for face to face meetings, but we are understandably being sensible about the volume of these meetings.

Please also note that if you have not yet completed your 2019 income tax return, our staff members can still attend to the completion of your tax return either by email, phone or zoom.  As self-isolation quickly becomes the norm, we encourage those clients with outstanding tax returns to utilise this time to email through your information to ensure it is lodged prior to the due date.

Our team is closely monitoring developments on the outbreak and will continue to take the appropriate steps to ensuring the safety of our employees and clients.  Accordingly, we also kindly ask that you advise our receptionist by phone if you are or have been unwell prior to entering our office.

If you have any questions or if our office can be of any further assistance during this difficult time, please don’t hesitate to contact us.

This assistance will support businesses to manage cash flow challenges and help businesses retain their employees. These two measures are designed to support employing small and medium enterprises and to improve business confidence. In addition, the wage subsidy for apprentices and trainees will help to ensure the continued development of the skilled workforce that employers need.

Boosting Cash Flow For Employers

The Boosting Cash Flow for Employers measure will provide up to $25,000 back to business, with a minimum payment of $2,000 for eligible businesses.  The payment will provide temporary cash flow support to small and medium businesses that employ staff.  The payment will be tax free.

Small and medium business entities with aggregated annual turnover under $50 million and that employ workers will be eligible.  Eligibility will generally be based on prior year turnover.

The payment will be delivered by the Australian Taxation Office (ATO) as a credit in the activity statement system from 28 April 2020 upon businesses lodging eligible upcoming activity statements.

Eligible businesses that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 50 per cent of the amount withheld, up to a maximum payment of $25,000.

Eligible businesses that pay salary and wages will receive a minimum payment of $2,000, even if they are not required to withhold tax.

This measure will benefit around 690,000 businesses employing around 7.8 million people.

The Boosting Cash Flow for Employers measure will be applied for a limited number of activity statement lodgements.  The ATO will deliver the payment as a credit to the business upon lodgement of their activity statements.  Where this places the business in a refund position, the ATO will deliver the refund within 14 days.

Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020.  Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgements.  To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (150 per cent) in the March 2020 activity statement.  The minimum payment will be applied to the business’ first lodgement.

Supporting Apprentices and Trainees

The Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer.

Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).

Support will also be provided to the National Apprentice Employment Network, the peak national body representing Group Training Organisations, to co-ordinate the re-employment of displaced apprentices and trainees throughout their network of host employers across Australia.

For further information, please click here to read the full fact sheet.

Source (12/03/2020): Australian Government

Griffin & Associates is currently owned as an equal partnership between the respective entities of David Griffin and Brett Zecchini.

From 1^st July 2019, and after 33 years of working for Griffin & Associates, David Griffin will be retiring from the accounting profession.  Griffin & Associates will therefore be restructuring with Brett Zecchini becoming the sole Director and owner.

The following is a message from David to his many valued clients:

To the many clients and staff of Griffin & Associates,

I would like to say thank you for your support over the many years.

With very mixed emotions I need to accept my age and pass on the Chartered Accountants practice which I commenced at the ripe age of 27 to my good friend and colleague Brett Zecchini.

I have every confidence in Brett’s professional skill, integrity and ethics and know he will retain the standards I have always upheld.

I intend to dedicate my time to maintaining my other businesses and real estate investments.

As I slowly roll into retirement, I know I will long for the interaction the accounting profession offers and the vibe our office generated with the laughter, fantastic Christmas parties and simply watching the families evolve as children grew.

As of 30^th June 2019, I will relinquish my final equity and will exit with a smile and wish all clients and staff a fantastic future.

Regards

David Griffin

Should you wish to contact David Griffin prior to his retirement from the accounting profession, he will still have access to email on david@griffinassociates.com.au

The above restructure of Griffin & Associates will result in existing clients being transferred to a new tax agent number in July 2019.  Please note that our office will continue to operate from the same location, with the same staff and provide the same services.

Please contact our office should you not wish for your file to be changed to a new tax agent number with the Australian Taxation Office.

Date – 26/06/2019

Overview – Federal Budget

This is a Federal Budget that is designed to showcase the return to surplus.  Some of the budget highlights include:

• Personal income tax cuts
• Low and middle income tax offset increased
• Business income tax cuts
• Superannuation work test watered down
• Instant asset write off increased
• Flood grants to be tax free
• Division 7A changes postponed
• ABN status stripped for non-compliance

Personal income tax cuts

The personal tax changes mean a tax saving of $855 for someone on an annual taxable income of $45,000 per annum until 2022, then $1,080 until 2024 onwards.  This round of tax cuts includes the following:

• Increases the top threshold of the 19% personal income tax bracket to $45,000 from 1 July 2022
• Reduces the 32.5% marginal tax rate to 30% from 1 July 2024-25

Please download Federal Budget 2019-20 for further details of the personal income tax cuts.

Low and middle income tax offset increased

The low and middle income tax offset (LMITO) will increase from a maximum amount of $530 to $1,080 per annum and the base amount will increase from $200 to $255 per annum.

The LMITO will provide a reduction in tax of up to $255 for taxpayers with a taxable income of $37,000 or less. Between taxable incomes of $37,000 and $48,000, the value of the offset will increase at a rate of 7.5 cents per dollar to the maximum offset of $1,080. Taxpayers with taxable incomes between $48,000 and $90,000 will be eligible for the maximum offset of $1,080. From taxable incomes of $90,000 to $126,000 the offset will phase out at a rate of 3 cents per dollar.

The LMITO is received after you have lodged your tax return.

Business income tax cuts

The company tax rate for small and medium-sized companies with an annual turnover of less than $50 million will be lowered initially to 27.5%. This rate will be lowered further to 25% by 2021-22.

Superannuation work test watered down

As previously announced, from 1 July 2020, Australians aged 65 and 66 will be able to make voluntary superannuation contributions (concessional and non-concessional) without meeting the Work Test.

Currently, voluntary contributions can only be made if the individual has worked a minimum of 40 hours over a 30 day period (Work Test). Those aged 65 and 66 will also be able to make up to three years of non-concessional contributions under the bring-forward rule.

In addition, the age limit for spouse contributions will be increased from 69 to 74 years. Currently, those aged 70 years and over cannot receive contributions made by another person on their behalf.

Instant asset write-off increased

The threshold for the popular $20,000 instant asset write-off will increase to $30,000* from Budget night until 30 June 2020 when it will potentially return to its original $1,000 level on 1 July 2020. We say ‘potentially’ because the threshold has been at or above $20,000 since 12 May 2015.

The Government had previously announced an increase to the threshold for the instant asset write-off to $25,000 from 29 January 2019 but this measure was not legislated prior to the release of the Budget. The Government however intends to honour the announced rate increase.

In addition, the number of businesses that can access the instant asset write-off will increase. Currently, to qualify for the write-off, only businesses with an aggregated turnover under $10 million qualify. From Budget night, businesses with an aggregated turnover under $50 million will also be able to access the write-off.

This initiative is subject to the passage of legislation so don’t go out on a spending spree just yet!

Flood grants to be tax-free

The Government will ensure that qualifying grants paid to primary producers, small businesses and non-profit organisations affected by the North Queensland floods will be treated as non-assessable non-exempt income, which means that they should be tax-free.

Qualifying grants include Category C and Category D grants provided under the Disaster Recovery Funding Arrangements 2018, and grants provided under the On-Farm Restocking and Replanting Grants Program and the On-Farm Infrastructure Grants Program.

Division 7A changes postponed

Division 7A captures situations where shareholders access company profits in the form of loans, payments or the forgiveness of debts. The rules are drafted broadly and have become more complex as amendments close perceived loopholes.

Division 7A treats certain events as triggering “deemed” dividends for tax purposes. Where a private company makes a payment or loan to a shareholder or associate, the amount may be treated as a dividend for tax purposes. Where a debt owed by a shareholder or associate to a private company is forgiven, these amounts may be subject to the same treatment.

Significant changes to the way Division 7A works were intended start taking effect from 1 July 2019. These reforms have now been pushed back to 1 July 2020.

ABN status stripped for non-compliance

From 1 July 2021, Australian Business Number (ABN) holders will be stripped of their ABNs if they fail to lodge their income tax return. In addition, from 1 July 2022, ABN holders will be required to annually confirm the accuracy of their details on the Australian Business Register.

Currently, ABN holders are able to retain their ABN regardless of whether they are meeting their income tax return lodgement obligations or the obligation to update their ABN details.

Full budget notes

For a comprehensive Federal Budget summary, please click Federal Budget 2019-20 to download a 16 PDF document.

Griffin & Associates

Please click here for further information how our office can assist with your taxation and compliance requirements.

Date – 03/04/2019

Overview – ATO Flood Deferrals

From 25 January 2019, North Queensland received heavy rainfall originating from a monsoon trough. This resulted in some locations receiving rainfall in excess of 1500mm causing a significant flood.

If your business or residential address is in one of the identified impacted postcodes, the ATO will automatically make arrangements to defer all income tax, activity statement and FBT lodgments and payments due in February, March, April and May 2019, to the deferred due date of 31 May 2019 (you don’t need to apply for a deferral). All deferrals granted for later dates will still apply.

These arrangements are in line with the financial assistance made available through Disaster Recovery Funding Arrangements (DRFA).

These deferrals do not apply to large withholders (withholding more than $1 million annually or are part of a corporate group).

Employers will still need to meet their superannuation guarantee obligations for their employees.  The ATO cannot vary the contribution due date or waive the Superannuation Guarantee Charge on late super guarantee payments.

If employers or Digital Service Providers in the affected areas have a deferral for Single Touch Payroll (STP) reporting and it is due to expire, then the ATO will provide an automatic extension to the deferral.

If you have a tax debt or overdue lodgment and your business or residential address is within the identified impacted postcodes, the ATO will defer recovery and other action until after 31 May 2019.

Pay as you go instalments

If you are a quarterly pay as you go (PAYG) instalments payer you can:

• Vary your PAYG instalments to nil on your activity statement for the December 2018 quarter
• Claim a credit (at item 5B) on your December 2018 activity statement (i.e. September 2018 quarter)

If you’ve already lodged your December 2018 activity statement, you can still vary the instalment or claim a credit by revising your activity statement by the deferred due date of 31 May 2019. You can also vary your PAYG instalments in future periods.

The ATO will not apply penalties or interest to varied instalments for taxpayers within the impacted postcodes in the 2019 financial year.

Fast tracking refunds

If you are in one of the identified impacted postcodes, the ATO will automatically fast track refunds.

Monthly GST credits

Businesses that are making purchases in coming months to replace stock and other losses can elect to change the GST reporting cycle to monthly in order to get quicker access to net amount refunds.

Changing your GST reporting cycle to monthly does not require you to change your PAYG Withholding reporting cycle. You can manage this by specifying the roles you are changing. If you elect monthly reporting now, your monthly reporting will start on 1 April 2019.

If your GST turnover is more than $20 million, you cannot change your election back to quarterly until 12 months after you elected to change to monthly.  This will also require to you lodge your fuel tax obligations monthly (if registered).

Affected flood postcodes

Following are the local government areas and postcodes in Queensland that have been granted disaster funding.

Please click here to view a list of eligible post codes.

Additional postcodes may be added to the list once damage assessments have been finalised.

Griffin & Associates

If you are affected by this flood disaster and you need further assistance, or your business is affected but is outside the identified postcodes, please contact our office.

Source – Australian Taxation Office

Date – 21/03/2019

Overview – Disaster assistance loans

Disaster Assistance Loans and Working Capital Loans are now available to small businesses that have been impacted by the devastating floods in North Queensland over the past week.

Disaster assistance has been activated for small businesses under the joint Commonwealth-State Disaster Recovery Funding Arrangements (DRFA).

DRFA Category B assistance is available in the following local government areas:

• Burdekin Shire Council
• Cloncurry Shire Council
• Douglas Shire Council
• Flinders Shire Council
• Hinchinbrook Shire Council
• McKinlay Shire Council
• Richmond Shire Council
• Townsville City Council

Types of loans available

Affected small businesses may be eligible for:

• Disaster assistance loans of up to $250,000
• Essential working capital loans of up to $100,000

Disaster assistance loans – Up to $ 250,000

Small Businesses whose assets have been significantly damaged as a direct result of an eligible disaster may be able to access low interest loans of up to $250,000.

Concessional loans are provided to assist you to re-establish the normal operations of your primary production enterprise by covering costs such as:

• repairing or replacing damaged plant and equipment
• repairing or replacing buildings
• supplying stock for up to one month to replace lost stock and maintain liquidity of the business
• meeting carry-on requirements including:
• sustenance
• paying rent and rates

The loan terms are as follows:

• Loan amount – maximum of $ 250,000
• Maximum term – up to 10 years
• Repayments – if needed, up to 2 years interest only may be available
• Security – a loan must be secured by a mortgage of land and other assets satisfactory to QRIDA
• Fees – no establishment fees, no account maintenance fees and no fees for early payout.
• Interest rate – 1.37%

Essential working capital loans – Up to $ 100,000

Small businesses which have suffered a significant loss of income as a result of an eligible disaster (such as through loss of electricity, water or road access for extended periods) may be able to access low interest loans of up to $100,000.

Concessional loans are provided to assist you with essential working capital for expenses such as:

• paying salaries/wages, creditors, rent or rates
• buying goods, including for example, fuel essential to carry-on the small business

The loan terms are as follows:

• Loan amount – maximum of $ 100,000
• Maximum term – up to 10 years
• Repayments – if needed, up to 2 years interest only may be available
• Security – a loan must be secured by a mortgage of land and other assets satisfactory to QRIDA
• Fees – no establishment fees, no account maintenance fees and no fees for early payout.
• Interest rate – 1.37%

Griffin & Associates

Please contact our office should you require any further information regarding the Disaster Assistance Loans and Working Capital Loans.

Please click here for further information how our office can assist with your taxation and compliance requirements.

Source: Business Queensland