October 2020 – Industry and Technical Update 

This edition of our newsletter comes to you close on the heels of the release of the Australian Budget document of 20-21, which we will be analyzing in depth in our special budget report. In the meanwhile, this month’s update will touch upon the following:

• Jobkeeper extension
• Extension to Tax Practitioners Board (TPB) COVID-19 concessions
• Extension of ASIC relief for COVID-19 financial advice by tax agents

We provide some insights on:

• GST & the Commissioner’s discretion on tax invoices
• Closure of Super Guarantee Amnesty Scheme and Election on Super ILBA
• TBAR reporting review for Market linked pension under certain circumstances

Also briefly summarized are our  takes on the following announcements:

• Small and Medium Business relief by Queensland government
• Cash grants and Tax relief by the Victorian government
• Extension to Land Tax concessions by NSW government

Job Keeper Extension – Rates of Payment
The Job Keeper payment rate will be split into two rates and will depend on the number of hours an eligible employee works (or an eligible business participant is actively engaged in the business).

Tier One Rate – Eligibility Criteria

• Employees who have worked for 80 hours or more in the four weeks of pay periods before either 1^st March 2020 or 1^st July 2020, and
• Business Participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.

Tier Two Rate – Eligibility Criteria
Applies to any other employees and business participants other than those mentioned in Tier One.

Extension to Tax Practitioners Board (TPB) COVID-19 concessions

• Continued Professional Education (CPE) concessions extended up to 31st December 2020,
• Renewal concession extended up to 30th June 2021,
• Relevant Experience concession extended up to 30th June 2021, and
• Annual Declaration concession extended up to 31st December 2021.

Extension to Land Tax Relief Scheme by the South Australian (SA) Government

• This scheme has been extended up to April 2021 from October 2020.
• Eligible landlords will now receive up to 50% (previously 25%) reduction on their 2019-20 liability on affected properties.

Small and Medium Business Relief by the Queensland (QLD) Government

• Waiver of Payroll Tax for the months of July and August 2020 for businesses with Annual Australian Taxable Wages up to $6.5 Million,
• Continuing to exempt Job Keeper payments from Payroll Tax,
• Allowing businesses to pay the existing deferred liabilities over the course of 2021, and
• Existing Rent relief extended up to December 2020 for businesses renting out State Government premises and incurring a substantiable COVID-19 impact.

Cash Grants and Tax Relief by the Victorian (VIC) Government

• $1.1 Billion in Cash Grants to support SMEs, including $822 Million as part of the third round of the business support fund,
• $251 Million dedicated Licensed Venue Fund with grants of $10,000 to $30,000 for bars, restaurants, pubs, etc.,
• $20,000 grants for Alpine Resorts to help cover resort fee in the wake of travel restrictions,
• $20,000 grants for local business groups and Chamber of Commerce, and
• Payroll Tax deferrals for businesses with payrolls up to $10 Million for the full FY 2020-21.

Extension to Land Tax concessions by NSW Government

• The Land Tax relief which was set to expire on 25th October 2020 is now extended up to 31st December 2020.
• This enables the landlords to receive up to 25% concession in the liability when they provide rent relief to commercial and residential tenants in financial distress from October to December.

GST – Commissioner’s discretion on tax invoices

• Where a document does not meet the requirements for a valid tax invoice, the ATO officers can exercise the Commissioner’s discretions to treat the document as a valid tax invoice so that a taxpayer can claim an input tax credit.
• The taxpayers do not have the right to objection against a decision to exercise the Commissioner’s discretion.
• However, the taxpayers may ask for an independent internal review by someone not involved in the original decision-making process.
• The taxpayers may also seek judicial review by a court.

GST free cars for the disabled
The ATO has registered a legislative instrument to ensure access to GST free supplies of cars and car parts for disabled people who:

• Have lost the use of one or more limbs to such an extent that they are unable to use public transport, and
• Intend to use the car for personal transportation to or from gainful employment.

Closure of Super Guarantee Amnesty Scheme

• The ATO has reminded the employers has the Super Guarantee Scheme amnesty scheme closed on 7th September 2020.
• Any amnesty applications received after 7th September 2020 will be considered as standard lodgment of a SGC statement.

Super Inactive Low Balance Accounts (ILBA)

• A super fund is required to transfer to the ATO, the ILBAs with less than $6,000 that have not received a contribution for 16 months.
• The ATO has reminded super fund members with ILBAs to make an election directly to their fund to avoid having their account treated as ILBA and transferred to the ATO.
• This election was previously made to the ATO up to 21st June 2020.
• A member’s election is valid for 16 months.

Market Linked Pensions and Transfer Balance Accounts

• The ATO has advised that super funds have until November 2020 to start retrospective reporting to amend TBAR reports for commutations of certain market linked pensions.
• ATO has published the updated guidance on how the value of the debit should be calculated

TBAR reporting review is not required for:
1. SMSFs that have been wound up
2. Deceased member Accounts.

ASIC relief for COVID-19 financial advice by tax agents extended

ASIC has extended its temporary relief measures for COVID-29 financial advice from 15^th Oct 2020 until 15 April 2021.