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August 2020 Round Up - JobKeeper 2.0, Div 7A, and home office problem areas

by Knowledge Shop Editor, on 03/08/20 09:23

JobKeeper has been extended for another 13 fortnights albeit with additional eligibility criteria and reduced payment rates.

And once again, the popularity of accountants and advisers has skyrocketed - everyone expects that you have the answers. However, at present, the fine detail of eligibility and access to JobKeeper 2.0 has not been released. As soon as we see anything, we’ll let you know. For immediate updates, keep an eye on our twitter feed @knowledgeshopAU.

Note: Further changes have been announced to JobKeeper since this update was published. See JobKeeper: Expanded access and eligibility test changes.

Also of note this month is the Division 7A relief for those impacted by COVID-19 and unable to make the minimum yearly repayments by the end of the 2020 income year.

Finally, the ATO has extended the shortcut method for working from home deductions but has also reiterated the rules – if your clients are forced to work from home, they cannot necessarily claim occupancy costs for home office expenses.

Members, download the full August 2020 Tax Round Up (login first) from the member-only website. To see what Knowledge Shop membership offers, call the team on 1800 800 232 or take an online tour.

 

Join Michael Carruthers (Tax Director, Knowledge Shop) and Lisa Armstrong (MD, Knowledge Shop), for just the juicy bits of change for accountants and advisers:

  • JobKeeper 2.0 released - On 21 July, the Treasurer announced an extension of the JobKeeper scheme beyond 27 September 2020 and released high level details on modifications to the scheme. JobKeeper has been extended for an additional 13 fortnights commencing 28 September 2020 until 28 March 2021. The modifications apply in two stages: 28 September – 3 January 2021, and 4 January 2021 to 28 March 2021. To continue receiving JobKeeper payments, employers will need to reassess their eligibility with reference to actual GST turnover for the June and September 2020 quarters (for payments between 28 September to 3 January 2021), and again for the June, September and December 2020 quarters (for payments between 4 January 2021 to 28 March 2021).However, the detail of eligibility and access has not been released. What we know about jobKeeper 2.0 is limited to the announcement.
  • Division 7A and the minimum repayment relief – The state of play with the sweeping Division 7A reforms, and the administrative relief for taxpayers affected by COVID-19 who were unable to make the minimum yearly repayments on their Division 7A loans by the end of the 2020 income year.
  • Simplified work from home deductions extended and the problem areas - The shortcut method allows qualifying individuals to claim a deduction using a standard rate of 80 cents per hour, for each hour worked from home. Originally intended to apply from 1 March 2020 until 30 June 2020, these have now been extended until 30 September 2020, with the ATO indicating that this might be extended further. But, there are some problem areas emerging!

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COVID-19 Tax Issues Webinar - where outcomes are different to the norm

 

Topics:Tax Round Up

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