23 July 2020

The Government has announced their plan for the extension of the JobKeeper program.  The impact on businesses and the economy of the program finishing on the 27^th September has been a concern for many, especially with the rise of COVID-19 infections in the eastern states.  The changes announced will hopefully assist businesses to prepare for the end of the program and plan their future with some certainty.

Highlights include:

• There will be no changes to the JobKeeper payments that businesses are receiving between now and 27 September 2020
• The program has been extended until 28 March 2021
• There will be new eligibility criteria for businesses to access JobKeeper from 28 September 2020
• From 28 September 2020 the JobKeeper payment will become a “two-tiered” payment

No changes to the original JobKeeper

Businesses that have qualified for JobKeeper will continue to receive the payments based on their initial qualification.  Businesses will be required to continue to complete the Monthly Business Declarations and to ensure eligibility of employees e.g. not claiming JobKeeper when employees leave their employment.  Businesses are also still eligible to enter the program based on the current rules.

The current payment of a flat rate of $1,500 per fortnight per employee will not change before 28 September 2020.

From 28 September 2020

From 28 September 2020, businesses will be required to reassess their eligibility to continue to access JobKeeper.  To be eligible, businesses will be required to show an actual reduction in turnover of 30% or more for both the June 2020 quarter and the September 2020 quarter when compared to the same quarters in 2019.

Note the reference to actual results, as opposed to the previous criteria which were based on projected turnover. Furthermore, testing is now only based on quarterly results, as opposed to the previous criteria which allowed testing on either monthly or quarterly periods.

All other eligibility criteria remain the same – e.g. employees were full-time, part-time or a long-term casual employee as at 1 March 2020.

From this date, JobKeeper payment rates will become a two-tiered payment system:

• $1,200 per fortnight for employees or eligible business participants who worked more than 20 hours per week on average in the 4 weeks prior to 1 March 2020 (i.e this is effectively the month of February 2020); or
• $750 per fortnight for all other employees or eligible business participants

From 4 January 2021

From 4 January 2021, businesses will again be required to reassess their eligibility to continue to access JobKeeper to the close of the program on 28 March 2021.  To be eligible for this quarter, businesses will be required to show an actual reduction in turnover of 30% or more for the June, September and December quarters. The 30% reduction must be shown in all three quarters to continue to be eligible for JobKeeper from this date.

The JobKeeper payment rates will reduce again at this point:

• $1,000 per fortnight for employees or eligible business participants who worked more than 20 hours per week on average in the 4 weeks prior to 1 March 2020 (i.e this is effectively the month of February 2020); or

• $650 per fortnight for all other employees or eligible business participants

Will my business be eligible for JobKeeper 2.0?

Use the following flow chart to determine if you are eligible:

If you are currently eligible for Jobkeeper payments, you must continue to lodge your Monthly Business Declarations for July, August and September and the current payments will continue.

Overall the announcements are welcome and will help provide businesses with some certainty.  With increased testing required for JobKeeper 2.0 it may prove more difficult for businesses to meet the eligibility criteria, as our economy begins to get back to normal. Continue to monitor your turnover against last year’s turnover going forward to ascertain eligibility and therefore access to JobKeeper 2.0 when cash flow planning. As always, i2 Advisory are here to assist in determining your eligibility and ensuring your reporting requirements are met on time.

Should you require any further information, please contact our staff on 8132 6400 or via email on admin@nulli2advisory.com.au.

1 June 2020

This is a reminder for any businesses that are either currently enrolled in the JobKeeper program, or may wish to consider registering if their business is now eligible.

For those currently registered in the JobKeeper program

A declaration is required to be lodged each month so you can receive your JobKeeper payment.

The important dates to remember for the May declaration are:-

• 1 June 2020 – May declaration process is open
• 14 June 2020 – May declaration must be completed

You will need to declare the following:-

• Your actual GST turnover for the month of May
• Your projected GST turnover for the month of June
• Confirm that the employees/business participants nominated remain eligible to receive the JobKeeper payment
• That your bank details have not changed

The May declaration is now open via the Business Portal/your tax agent. If i2 Advisory are to lodge the above details on your behalf, we will be in contact shortly to assist you to collate the above information.

For those not currently registered in the JobKeeper program

Please review your figures and discuss the program with your accountant to see if you are now eligible for the program. Just because you have not registered to date, does not mean you won’t ever be able to. Currently, registrations can be entered into up until the end of the program on 27 September 2020.

South Australian Government Small Business Grant – $10,000 Emergency Cash Grant

If you are not currently registered for this grant, and you may be eligible, please get in contact with us as a matter of urgency as registrations close today, 1 June 2020. Further information about the eligibility criteria or the grant can be found here.

If we can assist with the above or any other matters, please do not consider to contact us at admin@nulli2advisory.com.au or 08 8132 6400.

6 May 2020

JobKeeper

• Enrolments for April and May 2020 – you have until 31 May 2020 to enrol. However, please note you only have until 8th May 2020 if you need to ‘backpay’ staff for April 2020 to the minimum $1,500 amount per fortnight required (see below table)
• The next step in the JobKeeper process for identifying eligible employees and business participants is now open. This step needs to be completed in order to receive any subsidies you may be entitled to and includes:-
  • Identifying eligible employees and business participants
  • Stating your April 2020 turnover and your May 2020 projected turnover
  • Confirming information the ATO already have on hand from the enrolment process
• If after lodging this step of the JobKeeper payment process, you do not receive the first payment from the ATO in a timely manner (a week at most), please contact us as there may have been issues with verifying your application. A monthly declaration will be required on an ongoing basis until the JobKeeper period has finished (September 2020).
• Please find below a very useful table regarding the timing of payments for those eligible for the JobKeeper Scheme:-

Please note eligible business participants are not required to have the JobKeeper payment paid to them from the business.

If you have any queries, please do not hesitate to contact us on (08) 8132 6400 or admin@nulli2advisory.com.au

24 April 2020

Cash Boost

• No action required – this will occur upon lodgement of your March to June 2020 BAS’. The first tranche will be between $10K and $50K.
• The 2nd tranche will also automatically occur over the lodgements of your June to September 2020 BAS’ and will match the 1st tranche in amount.

JobKeeper

Immediate

• Assess your business’s eligibility for JobKeeper payments by contacting your i2 Advisory accountant for assistance or alternatively reviewing your eligibility here

From now but by 30 April 2020* (the earlier the better)

• Enrol for JobKeeper payments via the ATO Business Portal
• Should you not have access to the ATO Business Portal or require assistance with the registration please contact your i2 Advisory advisor for assistance.
• As per the ATO as at 23 April 2020, to ensure you receive your JobKeeper payments as early possible, you should enrol by the end of April.

By 30 April 2020

• Communicate with each eligible employee and request they complete the employee nomination form and return it to you.
• Make top up payments to employees (where necessary).
• Identify your eligible employees via your STP enabled payroll software

From 4 May 2020

• Complete information for your specific eligible employees in the online application form (yet to be provided) on the ATO Business Portal or via i2 Advisory.

Ongoing (each month)

• Reconfirm your reported eligible employees have not changed through ATO online services, the Business Portal, or via your i2 Advisory advisor
• Complete your ongoing monthly reporting requirements, known as ‘Monthly JobKeeper Declaration Report’ via the ATO Business Portal or your accountant.
• Continue paying eligible employees the minimum fortnightly amount by the relevant date for that period.

State Government Grant

• If you are an employer and eligible for JobKeeper you should be entitled to a $10,000 grant from the SA Government
• Registrations are now open and if eligible, we recommend registering immediately using the following link

Please do not hesitate to contact us for further information on (08) 8132 6400 or admin@nulli2advisory.com.au. We are doing everything we can to assist you and your business be in a position to bounce back and take advantage of any possible business opportunities that may present themselves as we start to resume normality.

10 April 2020

To assist South Australian (SA) small businesses through the current economic crisis, the SA Government’s $650 million ‘Jobs Rescue Package’ is set to fund eligible businesses with a one off $10,000 cash grant. The grant will work in conjunction with the federal governments stimulus measures.

The eligibility criteria the business needs to meet includes:-

• Employing people in South Australia
• Turnover of more than $75,000
• Payroll less than $1.5 million, and not entitled to a payroll tax waiver under COVID-19 support measures introduced by the SA government
• Having an ABN and carrying on an active business in SA on 1 March 2020
• Having been subject to closure or ‘highly impacted by COVID-19 related restrictions’
• Use the funds to support activities related to business operations
• Apply by 1 June 2020

What does ‘highly impacted by COVID-19 related restrictions’ mean I hear you say? This is defined as those businesses which meet the definition of the Commonwealth JobKeeper payment (i.e. at least a 30% or 50% drop in estimated turnover (depending on scale of business)). Those that do will be deemed to have been ‘highly impacted by COVID-19 related restrictions’.

There are some additional conditions in relation to the grant that may reduce the amount received that you may need to consider which we can help advise on.

Currently, similarly to the JobKeeper payment, there is only an ‘ability to register’ your interest, with applications to open soon. We would recommend at least registering your interest to learn about the next steps if you believe you are, or will be, eligible. This can be done at https://www.treasury.sa.gov.au/Growing-South-Australia/COVID-19/registration

There are some additional SA Government measures in addition to the above to consider, including:-

• Payroll Tax relief – a possible 6 month waiver (April to September 2020) for those businesses with applicable wages of up to $4 million – no application required. Revenue SA will notify these businesses through RevenueSA Online. Businesses with more than $4 million in applicable wages can apply for relief.
• Job Accelerator Grants – some relaxing of the criteria for the existing grants in process, in regards to maintaining overall employment levels https://www.revenuesa.sa.gov.au/grants-and-concessions/covid19-relief
• Cost of Living (COL) concession – a once-off boost of $500 and bring forward of the 2020/21 COL concession for households receiving the federal JobSeeker payments.
• Land Tax – an increase in the existing ‘land tax transition fund relief’ as well as the ability for quarterly land tax payers being able to defer payment of their remaining 2019/20 land tax payments for 6 months.

For those in business in other states, we will also advise on any state related measures that may apply to you and your business.

If you would have any queries, or would like to get in contact with us to discuss the above measures, please don’t hesitate to contact our office on (08) 8132 6400 or admin@nulli2advisory.com.au  and we would be happy to help.

9 April 2020

We have all been affected financially in some way by the impact of COVID-19 from business downturn, our superannuation balances falling, or a decrease in wages.
The goal is to be able to hibernate ourselves financially so we can come out of this crisis in the best financial position possible.
The following tips will assist you in managing through these tough times:

1. Cut costs – we are all saving due to the stay at home guidelines imposed on us – but you should also take the time to review all your items of expenditure to reduce cash burn.
2. Prepare a household budget – this is the best way to understand costs and identify savings.
3. Review your current home loan interest rate – ask the bank for a lower rate or look into fixed rates.
4. Look at refinancing credit cards and combining with home loans to reduce interest costs and monthly repayments.
5. Seek government assistance packages available.
6. Maximise your tax refund – with many of us working from home you are able to claim a deduction for expenses relating to that work. However to be able to claim these expenses you must be able to substantiate such expenditure so start keeping records to maximise your claim:

• A record of the number of hours you are working from home during this period;
• Details of your light and power costs during the period, in order to determine the best method to claim;
• If home internet and home phone are being used, details of the costs incurred based on usage;
• Receipts for stationery costs and computer consumables;
• Receipts for office equipment, computer equipment (laptop, modem, computer screens) and software (anti-virus) costs;
• Records of mobile phone business usage, for emails, telephone calls, mobile hotspot, etc.

If you have been stood down or have a reduction in income from your employment you should consider taking the following actions:

1. Contact the bank and request that they defer home loan repayments – remember this could add a material amount of interest onto your home loan and many months of extra repayments. Some banks are offering to repay some of the interest so ensure you talk to your bank to get the best possible outcome.
2. Apply for:
   1. JobKeeper Payment  – some employers may be eligible and be prepared to continue to employ you under the JobKeeper scheme – if eligible you will be entitled to a fortnightly payment of $1,500 through your employer.
   2. JobSeeker Payment – the income tests and personal assets tests have been changed to make it easier to qualify for the JobSeeker Payment. You should apply through your MyGov Account. Instructions to assist you in this process can be found here:
      https://www.servicesaustralia.gov.au/individuals/services/centrelink/jobseeker-payment/how-claim. You should first check with your employer if they intend to pay you under the JobKeeper scheme. If they advise you are not eligible then you should apply for the JobSeeker Payment as soon as possible.
3. Consider accessing superannuation – Eligible taxpayers are able to withdraw $10,000 before the 30^th June 2020 and another $10,000 in 2020-21.

For more on the concessions that relate to superannuation we refer you to a more detailed paper that can accessed using the following link https://i2advisory.com.au/resources/covid-19/covid-19-superannuation-changes/

Our advice is if you can cut costs during this period, maximise government benefits and achieve a balanced household budget, this will reduce your need to defer home loan repayments and keep superannuation withdrawals to a minimum.  The more successful you are in achieving this, the better financial position you will be in when our lives return to normal.

Please refer to the fact sheets below for additional detail as to what you are entitled to.
Income support for individuals –
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf

Payments to support households –
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Payments_to_support_households.pdf

Temporary early release of superannuation –
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Early_Access_to_Super_1.pdf

i2 Wealth Advisors

Should you not have a financial advisor that can guide you through these tough times regarding your superannuation or investments we can assist through i2 Wealth. Our fully licenced financial advisors Craig Muchamore and Don Sampson are available for a no obligation discussion regarding your financial options, to provide you with some insight and peace of mind. Should you require formal advice this will be provided under the Financial Services Guidelines which Craig and Don can explain in more detail.

Craig Muchamore – 0400 280 365 or cmuchamore@nulli2wealth.com.au
Don Sampson – 0408 081 758 or dsampson@nulli2wealth.com.au

As we head towards an Easter Break like no other in our lives the most important thing is to enjoy the break as we all spend time in isolation. These times make us reflect on what is important to us, namely our friends and family. Look after yourself and those around you, stay strong and let’s come out the other side of this even stronger.

From all at i2 Advisory Happy Easter and take care

7 April 2020

The Government has announced several changes to Superannuation in responses the economic impacts of Coronavirus.

Early access to superannuation

While superannuation helps people save for retirement, due to the unprecedented economic impact of Coronavirus, accessing superannuation today may outweigh the benefits of maintaining those savings until retirement.

As such the Government is allowing individuals affected by the Coronavirus to access up to $10,000 of  their superannuation in 2019-20 and a further $10,000 in 2020-21.

People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.

Eligibility

To apply for early release, you must satisfy one or more of the following requirements:

• You are unemployed.

• You are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.

• On or after 1 January 2020, either  

• • you were made redundant

  • your working hours were reduced by 20% or more

  • if you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.

How to apply

The ATO will have sole responsibility for administering payments from super under the new coronavirus condition of release. You do not need to contact your superannuation fund directly.

MyGov will be the primary and recommended platform to register your intent to access. Simply log in and click the register your intention to access via the Coronavirus support banner on the MyGov homepage. If
you do not have MyGov you will need to contact the ATO directly or register with MyGov.

Once your interest has been registered, the ATO will contact you directly when the application form is available, which is expected to be mid-April.

You will need to provide bank details and amount requested for withdrawal, which will be provided to your superannuation fund along with the release determination. There is no need to contact your
superannuation fund directly.

The maximum allowed to be released prior to 30/06/2020 is $10,000. You can elect which superannuation fund the funds will be released from. The payment can come from multiple funds, as long as the total amount does not exceed $10,000 each financial year.

Applications can be made up to 30 June 2020 for this financial year and from 1 July 2020 until 24 September 2020 for the next financial year.

If you have a SMSF and wish to access the early release of superannuation you will still need to apply to the ATO. You can’t release any funds until you have received a determination from the ATO.

Any unused early access funds can be recontributed back in the superannuation in the future, subject to normal contribution caps.

If you have insurance in your superannuation, care should taken to ensure your balance is sufficient to pay premiums.

Temporary reduction in minimum pension

For many retirees, the significant losses in financial markets as a result of the COVID-19 crisis are having a negative effect on the account balance of their superannuation pension or annuity.

To assist retirees, the Government has reduced the minimum annual payment required for account-based pensions (including TRIS) and market-linked pensions by 50% in the 2019–20 and the 2020–21
financial years. This will apply to account-based pensions (including TRIS) and market-linked pensions within a SMSF.

The temporary reduction is intended to reduce assets required to be sold at lower prices to fund pension payments.

This relief does not apply to defined benefit pensions or lifetime pensions.

Superannuation providers calculate the minimum annual payment required at 1 July each year, based on the account balance. The 50% reduction will apply to the calculated minimum annual payment.

Pensions commenced after the announcement will still eligible for the reduction.

The revised rates for the 2019/20 and 2020/21 years will be as follows:

If you have a SMSF administered by us, we will be making contact shortly advising your new minimum pension.

If you wish to only pay the minimum pension you may need contact your superannuation provider to reduce or stop pension payments.

You may also elect that payments above the minimum pension amounts be treated as a lump sum payment.

Lump sum withdrawals may provide future benefit by crediting your transfer balance pension cap ($1.6m), which will allow future superannuation benefits to be moved into retirement pension (tax free) phase.

If you wish to obtain specific advice on the pension changes please contact your usual contact at i2.

Alternatively, if you wish to obtain specific advice on the pension changes and your investments in light of the market downturn, you should contact your financial adviser.

If you do not have an adviser, please note that i2 Wealth has two in-house fully licenced financial advisers who would be happy to assist if you wish. These advisors (Craig Muchamore and Don Sampson) are experienced and empathetic advisers who can discuss, review and guide you through your investment and portfolio management strategy. Please contact your usual contact at i2, who can put you in touch with the advisors.

Other things to note regarding superannuation

• SMSF with rental properties may consider providing rent relief to their tenants, including related party tenants if it’s commercial viable to do so. Please note any arrangements still have to be on an
  arms-length basis.

• SMSF trustees should be reviewing their investment strategies to ensure, their current investment mix and objectives reflect their current position given the current market volatility.

• Quarterly and annual transfer balance account reporting (TBAR) has not been delayed. Reportable events still need to be reported to the ATO prior to the deadline.