COVID-19 - Latest Update 23 April 2020
Aegis Business Services is here to support you!
Breaking News – Updates from the ATO
First of all, thank you to all our clients who have contacted us and thanked us for keeping them up to date on a regular basis. At Aegis Business Services, we see ourselves as an extension and part of our clients’ businesses and therefore are really trying to understand what each and everyone of you are going through. We as a team are working tirelessly to be updated on the latest information and opportunities that can help our clients and thank you all for your patience, even if it is taking us longer than normal to get back to you at this time.
Today we want to cover the following to keep you updated on the latest releases from the ATO:
- Jobkeeper enrolments are open
- Business CashFlow Boost credits are being applied & refunds are being issued
- Extension to lodgement dates for 2018-19 Company Tax Returns
- JobKeeper Alternative Turnover Test
JobKeeper Enrolments are open
Once you have identified you are an Eligible Employer (including Sole Trader) it is important to enrol through the ATO portal as detailed in our previous update - https://www.aegisbusinessservices.com.au/blog/covid-19-latest-update-17-april-2020-jobkeeper-application-process/
Please note that you need to make sure that you are meeting the Turnover Test, and other criteria, correctly as the ATO have confirmed there will be large penalties applied if the enrolment is not correct and it will also result in the business being ‘out of pocket’ for the payments already passed onto the employees.
All recipients of the JobKeeper payments (either employees or partners/beneficiaries/directors) need to complete the appropriate form and it needs to be kept on records by the Eligible Employer.
JobKeeper Employee Nomination Notice https://www.ato.gov.au/uploadedfiles/content/cr/d1aab7f2-fbe8-44b8-9ec1-4885ded1088e.pdf
JobKeeper Nomination Notice for Eligible Business Participants (Excluding Sole Traders) https://www.ato.gov.au/assets/0/104/300/362/5f4639ad-8475-4d66-a4f3-4ff0ef2d79f7.pdf
Updated information to note as you have until end of May to enrol and identify your employees. For clients that are ready remember the enrolment process is now open.
Cash Flow Boost
This is available to eligible businesses who report PAYG Withholding through either monthly IAS’s or quarterly BAS’s. If you qualify for this boost a credit will be applied to your ATO Integrated Client Account and once the ATO acknowledges a credit balance on this account a refund will be issued.
It seems that ATO’s system is running sooner than they first thought and credits are being applied now & refunds issued even though the expected date for this to happen is 28 April 2020 to those businesses who qualify. In most cases this boost refund is NOT being applied to any existing ATO debts, however this is hit and miss until the ATO system fully updates on the 28th April, so if you have an existing ATO debt, we will not lodge your IAS/BAS until the 28th. Remember this is the government supporting businesses with a minimum of $20,000 & maximum of $100,000 over the next six months. If you are unsure if you qualify please contact the team at Aegis Business Services for assistance.
Extension to Company Tax Return Lodgement Date
The ATO confirmed that a 3 week extension has been automatically applied for the 2018-19 tax year with the new lodgement date of 5 June 2020 for any 2019 Company Tax returns.
https://www.ato.gov.au/General/COVID-19/Support-for-tax-professionals/#Lodgmentdeferrals
JobKeeper Alternative Turnover Test
For those businesses who are unable to satisfy the Basic Turnover Test, we have heard whispers that the ATO will be issuing the Alternative Test by tomorrow. This is for businesses who perhaps did not have relevant 2019 comparative figures, or had a different structure in 2019, were not operating or were affected by 2018/2019 drought
Please contact us if you need any clarification on the above or you would like us to answer any questions regarding your individual circumstances. At Aegis Business Services we are dedicated to assisting you & your business in this time and look forward to speaking with you.
Please also feel free to share any of our information with friends or family with businesses struggling to understand how the changes in legislation can impact their business.
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