Tammy's Bookkeeping

02/09/2020

https://7news.link/3gMLfvG

Here's what the new payment scheme means for you.

31/07/2020

Getting ‘review-ready’ for an ATO JobKeeper audit

As the ATO begins knocking on the doors of SMEs and sole traders with queries about their JobKeeper eligibility, quality record keeping is proving to be critical when asked to substantiate a claim.

Just like with most tax related matters, businesses and sole traders looking to claim JobKeeper payments are expected to self-assess their eligibility before applying.

In most cases, payments are automatically made to the applicant, but they are subject to reviews and audits by the ATO, even after the money has been paid out. In fact, according ABC News, the ATO has allocated some 3,000 staff to conduct ‘compliance reviews’, and has already rejected more than 6,500 applications as a result of ineligibility or fraud.

The ATO has also sent out letters to 8,000 businesses with warnings that they may have to repay their JobKeeper stipends due to being unable to adequately demonstrate their eligibility upon review.

If COVID-19 has shown us anything, it’s that SMEs are very vulnerable when they don’t have access to cash, and JobKeeper has single handedly kept the doors of thousands of Australian businesses with weak balance sheets open.

For many businesses, being forced to repay these funds will send them into duress and fast track their downfall. But just because you believe that your business is eligible, there’s no guarantee that the ATO will agree, which highlights the importance of doing everything possible to present a strong case of eligibility in the event of an ATO audit.

Three areas to focus when preparing for a JobKeeper audit

There are three key components to accessing JobKeeper:

Being an eligible entity/business
Claiming for eligible staff
Making a valid and correct claim
Each of these components are being scrutinised by ATO representatives conducting compliance reviews, and here are some ways to increase the quality of record keeping for all three of them, so that if the ATO comes knocking, your business can be ‘review-ready’.

READ: JobKeeper 2.0 for small businesses

1. Are you using reliable accounting software?

Being eligible to receive JobKeeper payments comes down to whether a business has seen a 30 percent drop in revenue in comparison to the same period 12 months earlier.

Given the high number of tip-offs about system-rorting that the tax watchdog has received, it has been asking businesses to present older versions of their accounts to see whether any deliberate manipulation has taken place.

For those sole traders and SMEs that use excel spreadsheets and basic filing systems to track their finances, being able to present defensible versions of old accounts can be very challenging and may not be sufficient for the ATO in the event of a review.

If you haven’t been doing so already, make sure to use an accounting software system that tracks your every move.

Using a system that has been specifically revamped to include JobKeeper-related functionality (like MYOB Essentials or AccountRight) is certainly the gold standard and will make it easier for you to maintain compliance and prove eligibility to the ATO.

2. Make sure all recipients are accounted for

For those businesses claiming JobKeeper payments for their employees, part of the due-diligence that the ATO expects is that all employees are accounted for. In the event that a business needs to exclude an employee from its JobKeeper claim, records need to be kept explaining why they’ve been excluded.

Failing to include all eligible employees in a JobKeeper application renders the business ineligible to receive payment.

If the ATO conducts a JobKeeper review on your business, providing records that were created retrospectively will never look as good as those that were prepared as each claim was being made.

So, as part of your process of claiming JobKeeper, make sure that adequate and up-to-date documentation is being kept on all employees regarding their employment and eligibility for JobKeeper.

3. Retain advice and outsource if you need to

When it comes to matters that relate to the tax system or the ATO, it never pays to do things whimsically or without proper process and due-diligence.

It may come at an extra cost but retaining advice from a registered tax agent on your business’s eligibility, the quality of its record keeping and everything in between, is the safest way to go about claiming JobKeeper payments.

Relying on the advice of an accredited tax practitioner (and outsourcing record keeping processes to them) will allow you to rest assured that valid claims are being made each fortnight, record keeping and reporting process are at the highest of standards, subsequently removing panic from an ATO-administered JobKeeper compliance review

30/07/2020

What employers need to know about the new wage increase

Amid an ongoing pandemic, the Fair Work Commission has announced an increase to the minimum wage – but what does it mean for your business?

On 19 June, The Fair Work Commission announced that Australia would see a 1.75 percent rise to the minimum wage.

The increase is in effect as of 1 July 2020, making the new national minimum wage $753.80 per week, or $19.84 per hour.

Although on the surface it may seem like a blanket wage uptick, it’s actually a bit more complicated than that – depending on the industry your business lies in, the increase might not actually affect you until next year.

Getting to grips with the finer details

For business owners worried about budgeting for staff wages in a mere week, it’s important to note that award increases are set to occur in three stages.

The award groups initially affected by the new minimum wage from 1 July include frontline healthcare, social assistance workers, teachers and child care and other essential services.

There are two Awards Groups to follow:

Group 2 consists of construction, manufacturing and other industries and is set to be introduced from 1 November 2020
Group 3 consists of retail, hospitality, aviation and arts and recreation and will be introduced from 1 February 2021
If you’re unsure when your industry qualifies for the rise in minimum wage, the full list of award groupings can be found in the Fair Work Commission’s media release.

And as for the reliably confusing JobKeeper payments?

In these instances, the new minimum wage applies to work an employee performs under the JobKeeper scheme, but only if their pay rate is related to an award or the national minimum wage.

Reasons for the Fair Work Commission’s decision

The Fair Work Commission’s verdict was designed primarily to “establish and maintain a safety net of fair minimum wages” to support lower income earners during these extraordinarily difficult times.

Statistics commissioned by the Fair Work Commission in its wage review report found that a much higher proportion of low-paid households experienced stress related to the following:

Paying electricity, gas or telephone bills on time
Needing to obtain financial help from friends or family
An inability to raise $3000 in a week for something important
Research also supported an increase to the minimum wage to alleviate stress associated with other vulnerable demographics. These include:

Equal remuneration for women: Research found that women were more likely to be award reliant, low paid, and both low paid and award reliant.
Young people: social, economic and health outcomes of young people were found to be much poorer with lower wage and employment levels
Apprentices and Trainees: higher minimum wage contributed to improved economic wellbeing of apprentices
People with a disability: people with disability were not only more likely to be on the minimum wage than people without disability, they also often incurred higher living expenses.
Conflicting viewpoints raised before the announcement

Although the modest increase to the minimum wage will be received warmly by some, not all found the decision agreeable.

Before the Fair Work Commission’s announcement, Sally McManus, Secretary of the Australian Council of Trade Unions, pushed for a four percent increase to the minimum wage, while labour economics expert Professor Mark Wooden instead advised for the panel to “prioritise growth in jobs and hours over a wage increase”.

“Just about every cent a worker on minimum wages receives, they spend,” McManus said. “This is money circulating to local businesses.

“It is the fastest and most effective form of stimulus we can have,” she said, expressing disappointment after the announcement of the decision,

“Wage cuts are confidence killers which hurts business and job creation.”

Wooden took issue with the decision for very different reasons, believing a higher wage will decrease the potential for jobs.

“Given a downward sloping demand curve for labour, increases in wages will (all other things held constant) result in a reduction in the demand for labour, and hence either a reduction in employment or in the number of paid hours worked (or both),” he stated in the Fair Work Commission’s wage report.

26/07/2020

Here’s what JobKeeper 2.0 looks like for Australian small businesses

The Federal Government has thrown a lifeline to small businesses, extending JobKeeper payments for six more months.

A second phase of the JobKeeper program will provide a crucial lifeline to Australian small businesses until March 2021, Treasurer Josh Frydenberg announced on Thursday.

While the program includes lower rates and additional eligibility testing, it’s been welcome with a sigh of relief by the country’s cash-strapped small business owners and soloists.

The Government has opted for a step-down approach to economic support.

From October to December, the payment will reduce to a fortnightly rate of $1200 per full time employee and $750 for employees working 20 hours or less per week. From January until March, that payment will reduce again to $1000 for full time workers and $650 for part time workers.

Small businesses, including sole traders, will need to prove their eligibility again in October and January by showing their turnover has fallen by 30 percent.

Impact on the Federal Budget

While Australia entered the pandemic in a position of economic strength, the support measures extended during recent months have increased debt levels significantly.

But the economic fallout from the pandemic has forced the Federal Government deficit to a record high of $86 billion, with coronavirus causing devastation across the economy.

In announcing the JobKeeper extension today, Treasurer Josh Frydenberg described the country’s economic position has dire, saying the country is in the worst economic crisis since the Great Depression.

Indeed, the economic fallout from forced lockdowns and closures to stop the spread of coronavirus has forced some small businesses to shut their doors for good.

And through no fault of their own, as a result of the pandemic, around 709,000 jobs were lost around the country in the June quarter, government figures reveal.

Despite this, Frydenberg said Australia will escape the pandemic relatively unscathed compared to other nations.

“Australia has performed on a health and economic front better than almost any country in the world,” he said.

JobKeeper 2.0: An economic lifeline

Frydenberg described the Government’s unprecedented economic response as temporary and targeted with measures to support individuals, households and businesses through the crisis, without undermining the structural integrity of the budget.

This includes the $85.7 billion JobKeeper Payment, expanded eligibility for income support payments, the Coronavirus Supplement, support payments for households, temporary cash flow support for employers and increasing and expanding access to the instant asset write-off.

More than 960,000 businesses and not-for-profits and more than 3.5 million individuals have been covered by the JobKeeper payment. As of 16 July, payments totalled more than $30 billion.

As part of the economic plan, the Government also announced $2 billion to give Australians access to retraining and upskilling in sectors with job opportunities, as the economy recovers from the pandemic.

The necessary and unprecedented level of economic support has significantly impacted the country’s budget. The underlying cash balance is forecast to decrease from balance in 2018/19 to a $85.8 billion deficit in 2019/20 and a $184.5 billion deficit in 2020/21.

Welcome relief for small business

The extension of income support comes as welcome relief to many, who were concerned that September could mark doomsday without it.

Australian Small Business and Family Enterprise Ombudsman Kate Carnell said small businesses are breathing a sigh of relief following the announcement that JobKeeper would be extended for a further six months.

“Thousands of small business owners across Australia will be sleeping better tonight, knowing JobKeeper will be maintained in its current form until the end of September,” said Carnell.

She said the payments are reducing at a reasonable rate, in line with predictions of economic recovery and trading conditions picking up.

30/04/2020

Employers: We've extended due dates for JobKeeper payment enrolments to help you finalise your preparations.

If you need some extra time, you’ll now have until:
• 8 May to make sure your eligible employees have been paid a minimum of $1,500 (before tax) for each JobKeeper fortnight in April and
• 31 May to enrol for April payments for your employees.

You’ll also need to meet certain criteria to be eligible for JobKeeper payments - for more info, visit

ATO information on the JobKeeper Payment support for businesses significantly affected by the coronavirus (COVID-19).

23/04/2020

FAQ: Clarifying JobKeeper for sole traders

Yes, sole traders can be eligible to receive JobKeeper, but there is some confusion as to how.

There’s some confusion as to who qualifies for the JobKeeper Stimulus Package and who does not.

This article will hopefully alleviate the myths and misconceptions that are floating around on social media.

Can I apply for JobKeeper as a Sole Trader?

Yes (see Sole Trader Eligibility)

Do I need to qualify for the stimulus package package?

Yes, you need to establish that, as a sole trader, your current turnover has been reduced by at least 30 percent. (Download the Treasury.gov.au factsheet frequently asked questions)

You can use either months of March or April 2020 to qualify for the JobKeeper payment.

What if I am a new business and do not have turnover from March or April 2019 to compare against to confirm I have turned over less than 30 percent?

There will be a follow up in an alternative test to quantify your eligibility which is coming very soon.

How much and for how long will I be paid as a Sole Trader?

If you are eligible, you will be paid $1500 a fortnight starting from the 30th March 2020 and ending on 27th September 2020.

The Treasury is engaged in a range of issues from macroeconomic policy settings to microeconomic reform, climate change to social policy, as well as tax policy and international agreements and forums.

18/04/2020

Keep your business going during the COVID-19 pandemic
Running your business | Financial management | Managing risk

Are you finding it hard to know how you can proactively manage your business during the coronavirus pandemic?

A checklist below to help guide you.

1. Understand your current financial position

It’s essential to make informed decisions about your business based on your current financial position. Pending restrictions imposed by government, your ability to trade through this period, pay outstanding debts, keep employees or meet existing leasing or loan repayments will be determined by your financial position. Contact your accountant to discuss the various options which may be available and make a plan as to what you need to do to minimise the impact on your business. Cash flow is critical, especially if your existing income and trade has been significantly disrupted by COVID-19.

2. Check your eligibility for government assistance

The Australian Government has announced several stimulus packages to help business owners manage the disruptions to their business. For sole traders, this includes access to the JobSeeker Payment, which now includes a coronavirus supplement payment and an increase in the income test for partners to $79,762 to provide greater access to support.

The Western Australian Government has also announced a relief package which may assist businesses that employ staff.

3. Contact your bank and insurer

A new loan deferral arrangement for small business owners is now in place. Contact your bank or financial lender to discuss this arrangement. We also recommend talking to your bank’s hardship team if you would like to discuss the options available if you need relief from any personal mortgages or loans. Visit the Australian Banking Association website for a list of hardship contacts for each bank.

On 2 April 2020, the Australian Competition & Consumer Commission (ACCC) granted interim authorisation to insurance companies and brokers to offer payment deferrals and refunds to businesses impacted by COVID-19. The package allows existing eligible business customers suffering hardship to:

defer insurance premium payments for up to six months (for payments due before 30 June 2020)
request a refund for unused premiums for any policies they need to cancel as a result of the pandemic – without the cost of administration or cancellation fees
receive a credit or refund for unused travel insurance premiums, without the cost of an administration or cancellation fee
The interim authorisation applies to Suncorp, Allianz, QBE Insurance as well as any other insurers or insurance brokers who choose to take part, as long as they notify the ACCC.

4. Communicate with your stakeholders

It’s important to communicate to all your stakeholders about what is happening with your business during the COVID-19 pandemic.

If you have staff, they need to understand what your plans and the likely impact on them. Be as calm and clear in what you are telling them as possible.

Follow up all your debtors to try and get any overdue payments in. You may need to consider negotiating, based on what they are able to pay in the current circumstances. Also communicate with your creditors to see what payments you may be able to defer. Review your trading terms to ensure that you obtain upfront payments (where possible) or a deposit for any new orders.

Keep your customers updated about your services, for example if your business is affected by restrictions, ensure you communicate as early as possible what this means for them. You should also check the latest Australian Competition and Consumer Commission (ACCC) advice on how to manage cancellations, delays or suspension of products and services in relation to your consumer obligations. If you are encouraging customers to buy gift cards for goods or services to support your business, make sure you are up to date with recent gift card laws.

5. Seek advice on deferring tax payments

The Australian Taxation Office (ATO) can grant you a deferral of certain tax obligations if your business is impacted by COVID-19. Call the ATO on 1800 806 218 or speak to your tax professional to discuss your options. Deferring payments may impact on your eligibility for other stimulus package options, so seek professional advice.

6. See if your business can still operate

As the government has announced expanded restrictions to business activity and travel, check our list of the latest restrictions to see if your business can keep operating or if there are any changes you need to make to fit in with these mandatory requirements.

7. Understand your options in relation to employees.

Familiarise yourself with your obligations as an employer. Information is available through Fair Work (for businesses under the national industrial relations system) or WA Labour Relations (for sole traders and partnerships). This information also covers issues such as when you might be able to stand down employees, redundancy information and changing work hours.

On 30 March, a $1500 per fortnight JobKeeper Payment was announced by the Federal Government to support employers in keeping their employees.

On 8 April, the Fair Work Commission inserted a new temporary provision into 99 awards to provide additional leave entitlements in response to the pandemic. More awards may be varied in the future to include similar provisions. Details are available on the Fair Work website.

8. Check your licensing requirements

If you are running your business from home or have changed the way your business operates, you may need approval from your local government authority to carry out certain types of business operations. However, you may not need approvals for certain changes.

For example:

If your restaurant is now offering takeaway instead of dine in food, using your commercial kitchen to prepare the food, no other approvals are necessary.

If your hairdressing salon is now offering mobile services to your customers' homes, you do not require an additional approval. However, check with your insurance broker that you are covered in this situation.

If you are now running your business remotely from home, you do not need any approvals if your operations meet the definition of a home office under the Planning and Development (Local Planning Schemes) Regulations 2015, including that no clients or customers visit you at home, no staff work there with you and you don’t display business signage.
It’s advisable to check with your local government authority for specific advice on any change of use.

9. Commercial leasing – talk to your landlord or call us for help

We encourage you to call your landlord to discuss what arrangements can be put in place regarding your lease, particularly if your business can no longer operate.

On 29 March, the Australian Government announced a moratorium on evictions over the next six months for commercial and residential tenancies in financial distress who are unable to meet their commitments due to the impact of coronavirus. On 7 April, a mandatory code of conduct for commercial tenancies, to be legislated by each state and territory, was also announced. Commercial tenants, landlords and financial institutions are encouraged to sit down together to find a way through this period to ensure that businesses can survive and be there on the other side.

Please note: The State Government is currently working on a number of measures to provide assistance to small business landlord and tenants, including amendments to existing legislation to respond to the mandatory code of conduct for commercial tenancies announced on 7 April.

10. Consider whether you can draw on your superannuation

If you are a sole trader whose hours of work or income has fallen by 20 per cent or more as a result of the pandemic, the Federal Government is allowing you to access your superannuation. This is capped at $10,000 this financial year and a further $10,000 next financial year. The withdrawals will be tax free.

11. Build your networks

This is an important time to reach out to your networks for support and advice. Being able to keep some control over your situation is good for your positive mental health. Keep communicating with your support networks and speak with other small businesses to share ideas and innovative practices.

A good starting point for online networking is our Facebook group I'm a small business owner in Western Australia which has more than 8,000 members and provides a space for small business owners to network, share information and seek help from your fellow business owners.

12. Keep informed of changes

Given the peak volumes of calls to many government departments, being proactive in seeking out trusted sources of information is an important way that you can keep up with the latest developments on coronavirus information for small business owners.

18/04/2020

https://www.australia.gov.au/?gclid=EAIaIQobChMI29j7sovx6AIVlH8rCh1ifQ7HEAAYASAAEgIFKPD_BwE

The official Australian Government response website to provide support and updates to Australians on the Coronavirus pandemic

18/04/2020

https://www.servicesaustralia.gov.au/individuals/services/centrelink/jobseeker-payment

Financial help if you’re between 22 and Age Pension age and looking for work. It’s also for when you’re sick or injured and can’t do your usual work or study for a short time.

18/04/2020

https://www.ato.gov.au/general/JobKeeper-Payment/

ATO information on the JobKeeper Payment support for businesses significantly affected by COVID-19.

03/03/2020

https://www.google.com.au/amp/s/amp.news.com.au/finance/business/breaking-news/rba-rate-cut-remains-a-near-certainty/news-story/79cd6651d8c5a985f5b73ead7205a414

The Reserve Bank of Australia has cut the cash rate to a new record low of 0.5 per cent as it acts to soften the economic impact of the coronavirus.

22/11/2019

As we head into Summer, and with the current fire activity in a number of states,a few simple tips to help you be prepared for weather events in the coming months.
DISCUSS WHAT YOUR FAMILY WILL DO
Many households find that having a discussion over dinner works best as everybody is together and focused. Come up with a bush fire and emergency plan and create an emergency kit to take with you. Don't forget a plan for your pets.
PREPARE YOUR HOME
There are simple things you can do around your home to prepare.
Keep gutters free of debris
Cut any grass low
Trim trees and keep branches away from the house
Ensure loose items such as chairs and garden tools are secured inside the home or a shed.
KEEP ON HAND EMERGENCY NUMBERS, WEBSITES AND APPS
In an emergency, it’s important that you stay up to date on conditions in your area. If there is a fire in your area you can find its alert level on your local Fire Service website and in the ‘Fires Near Me’ app.
Fires Near Me App – iTunes | Fires Near Me App – Android
HELPFUL RESOURCES
These links provide detailed information on how to prepare including step by step guides.
NSW Rural Fire Service - https://www.rfs.nsw.gov.au/plan-and-prepare
QLD Rural Fire Service - https://www.ruralfire.qld.gov.au/Pages/Home.aspx
Victoria Rural Fire Service - https://www.cfa.vic.gov.au/plan-prepare/fire-ready-kit
SA Country Fire Service - https://www.cfs.sa.gov.au/site/home.jsp
ACT Rural Fire Service - https://esa.act.gov.au/rural-fire-service
Be prepared, stay informed and please don't leave it to the last minute.

Collaborating to protect the community from bush fires