CASH FLOW BOOSTS

The cash flow boosts for employers are tax free payments which, nevertheless, represent reportable income for accounting purposes, but are not assessable income for tax purposes, for the recipient employer, self employed

COMPANY TAX RATES

The 2019/2020 company tax rate of 27.5% for “base rate”entities (turnover less than $25m, passive income less than 80%) falls in 2020/2021 to 26% and in the following 2021/2022 year to 25%.

EARLY ACCESS TO SUPERANNUATION

There are no tax implications for the “early access $10,000” coronavirus measures, and access now extended to 31 December 2020.

JOBKEEPER PAYMENTS

The support payments to employers and the self-employed are assessable income for employers and the self-employed, and subsequent payments of Jobkeeper to employees are also assessable.

PAYG WITHHOLDING

From 1 July 2019 payments to employees, directors, contractors are only deductible if the PAYG withholding obligations as to payment and ATO reporting have been met.

WORKING FROM HOME

The shortcut claiming method of 80c/hour available from 1 March 2020 to 30 June 2020 has now been extended into the 2020/2021 financial year, to 30 September 2020.

If you have need assistance with any of these , CONTACT US today without delay!

 Salary sacrifice – employer superannuation obligations

Where an employee has an effective salary sacrifice arrangement in place, it is now mandatory for employers to calculate the superannuation guarantee charge of 9.5% on the gross, before salary sacrifice salary of the employee eg.

Notes:

1.  The salary sacrificed superannuation needs to be recorded on the annual payment summary as reportable employer superannuation contributions (RESC)
2. The salary sacrificed amount can not be included as part of the employer’s superannuation guarantee charge.

The changed basis for calculation of an employer’s superannuation guarantee charge was introduced from 1 January 2020 hence adjustment may need to be made in respect of any salary sacrifice arrangement in place on and from that date.