Don’t forget that the JobKeeper scheme ends on 28 March 2021.
The second JobKeeper extension has started and covers the JobKeeper fortnights between Monday 4 January and Sunday 28 March 2021.
If eligible, you can enrol for the second JobKeeper extension until the end of the program. To be eligible you will need to show that your actual GST turnover declined in the December 2020 quarter relative to a comparable period (generally the December 2019 quarter).
You might be eligible for the second JobKeeper extension even if you weren’t eligible for the first extension.
The payment rates for your eligible employees in the second extension period are:
- Tier 1 – $1,000 per fortnight (before tax)
- Tier 2 – $650 per fortnight (before tax).
We have previously told you about 2 temporary measures to encourage business investment:
- full expensing for the cost of new depreciating assets acquired from 7:30pm (AEDT) on 6 October 2020 (i.e. 2020–21 Budget night) and first used or installed by 30 June 2022 (see the October 2020 Special Budget Edition of TaxWise News); and
- an accelerated rate of depreciation for new depreciating assets first held on or after 12 March 2020 and first used or installed ready for use on or after 12 March 2020 and before 1 July 2021 (see the April 2020 edition of TaxWise News).
The law has been changed so that you can now choose not to apply full expensing or accelerated depreciation to particular depreciating assets. But once you make that choice, you are locked in (i.e. you cannot reverse it).
Tip! Talk to Southern Business Solutions if you are contemplating buying new assets for your business.
Varying your PAYG instalments
To assist taxpayers experiencing financial difficulty as a result of COVID-19, the ATO is providing added flexibility to manage your instalments to suit your circumstances. If you are a PAYG instalment payer, you can vary your PAYG instalments on your activity statement.
You can vary your instalments if you think using the current amount or rate will result in you paying too much by instalments when compared to your estimated tax for the year.
The ATO has said that it will not apply penalties or charge interest to varied instalments that relate to the 2020–21 income year (including if you have a substituted accounting period) when you have made your best attempt to estimate your end of year tax liability.
You should review your tax position regularly. You can vary your instalments multiple times throughout the year. Your varied amount or rate will apply for all your remaining instalments for the income year or until you make another variation.
If you realise you’ve made a mistake working out your PAYG instalment, you can correct it by lodging a revised activity statement or varying a subsequent instalment.
Tip! Talk to Southern Business Solutions if you think you may need to vary your PAYG instalments or if you have made a mistake working out your instalments.
Ref: TaxWise Business News February 2021