In this article we asked Registered Tax Agent USHA AGARWAL to provide an update on the changes to Jobkeeper payments that came into play from the end of September and the relevant dates and deadlines to keep in mind when it comes to tax matters.
Below is a summary of the announced extension to the Jobkeeper Payment to run from 28 September 2020 until 28 March 2021.
The JobKeeper extension was passed by parliament and received Royal Assent on 3 September 2020.
|28 September 2020 to 3 January 2021||4 January 2021 to 28 March 2021|
|Eligibility||You will need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).||You will need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter (October, November, December) relative to a comparable period (generally the corresponding quarter in 2019).|
|Payment Rates||Tier 1: $ 1200 per fortnight (before tax)
Tier 2: $ 750 per fortnight (before tax)
|Tier 1: $ 1000 per fortnight (before tax)
Tier 2: $ 650 per fortnight (before tax)
Tier 1: This rate will apply to:
- eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and
- eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.
Tier 2: This rate will apply to:
- any other eligible employees and eligible business participants.
Tax on Jobkeeper
Jobkeeper payments are assessable income and need to be included in your tax return. If you have lodged your tax return but did not include these payments, the return will need to be amended.
If you are a sole trader, the payments need to be included as business income in your individual tax return.
If you are a partnership or trust, the payments need to be reported as business income on the partnership or trust tax return.
Companies need to report the payments as income on their company tax return.
The normal rules for deductibility apply in respect of the amounts the employer pays to its employees where those amounts are subsidised by the Jobkeeper payment.
Shortcut Method – you can claim 80 cents per hour for each hour you work from home to calculate your deduction for working from home. This method is temporary and only available for the period 1 March 2020 to 30 September 2020.
All employees working from home in this period can use this method. If you use this method, you can’t claim any other expenses for working from home.
Important dates to remember
28 October 2020:
- Payment of super guarantee contributions for Quarter 1 (July-September 2020).
- Final date for lodgement and payment of Quarter 1 (July – September 2020) activity statements unless you lodge electronically where due date is 11 November 2020.
31 October 2020:
- Due date for lodging your own 2020 tax return on myGov.
If you need assistance with your Tax or have any questions contact Usha Agarwal by calling her on 044 808 2704 or send her an email. Usha is a Registered Tax Agent and she has been working in tax for over 20 years and has been registered with Tax Practitioners Board since 2012.
General Advice Warning: This blog is not designed to replace professional advice. It has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the advice, in light of your own objectives, financial situation or needs before making any decision as to what is appropriate for you.