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JobKeeper Notes

JobKeeper Comes to an End

The ATO has advised that the final JobKeeper payment were processed in April 2021.
Once a business is no longer claiming JobKeeper Payments, it may start to be eligible to receive the JobMaker Hiring Credit for any additional employees that started employment on or after 7 October 2020.

Keep up to date every day by visiting the Australian Government   website at https://treasury.gov.au/coronavirus/jobkeeper 

ATO “Keeping JobKeeper Payments Fair”

The ATO is using its compliance resources to maintain the integrity of the JobKeeper measure.
While most businesses and employees have done the right thing, the ATO has identified concerning and fraudulent behaviour as well as claims by a small number of organisations and employees, and will actively pursue these claims.
Some of the concerning behaviours the ATO is currently examining include:

Businesses that have:

  • made claims for employees without a nomination notice
  • have not paid their employees the correct JobKeeper amount (before tax)
    made claims for employees where there is no history of an employment relationship
  • amended their prior business activity statements to increase sales in order to meet the turnover test
  • recorded an unexplained decline in turnover, followed by a significant increase

Individuals who have knowingly:

  • made multiple claims for themselves as employees or as ‘eligible business participants
  • made claims both as an employee and an ‘eligible business participant’.

The ATO encourages all JobKeeper applicants to review their applications and contact the ATO if they have made mistakes (and the ATO may not pursue repayment of an overpayment in certain circumstances, such as for honest mistakes).
If anyone is concerned that someone is doing the wrong thing in relation to the JobKeeper payment, they are encouraged to tell the ATO about it.  The ATO will be examining JobKeeper Tip-Offs and contacting businesses where it has concerns and needs more information.

ATO Loses Case on JobKeeper and Backdated ABNs

On 24 March 2021, the Full Federal Court handed down its decision in a case concerned with the requirement that an entity claiming JobKeeper must have had an ABN on 12 March 2020, or a later time allowed by the ATO.
The Registrar of the Australian Business Register had reactivated the relevant entity’s previously cancelled ABN after 12 March 2020, but with a backdated effective date on or before 12 March 2020.
The Court held that backdating an ABN to have an effective date on or before 12 March 2020 did not satisfy the requirement for the entity to have had an ABN on 12 March 2020.
However, the Court also held that the ATO’s decision not to allow the entity a “later time” to have an ABN was a “reviewable decision”, and that the Commissioner’s discretion should be exercised in these circumstances (i.e., the Court held that the entity should be entitled to JobKeeper).
The Court’s decision does not change the need to satisfy all of the other eligibility requirements.
Editor: Where the ATO has postponed finalising a decision regarding a taxpayer’s eligibility for JobKeeper (and/or the cash flow boost) pending the Court’s decision, the ATO will contact the affected taxpayer shortly to provide them with an update.

First Criminal Conviction for JobKeeper Fraud

A person claiming to be a sole trader was convicted of three counts of making a false and misleading statement to the Commissioner of Taxation, in order to receive $6,000 in JobKeeper payments to which he was not entitled, as he was not operating a genuine business and he had already agreed to be nominated by his full-time employer for the allowance.
The ATO has a dedicated integrity strategy that supports the administration of the Government’s stimulus packages, with robust and efficient compliance systems that make it very easy to identify fraudulent behaviour and stop it.
ATO Deputy Commissioner Will Day said, “Since the first payments were made in April, the ATO has monitored every payment, every day, every month, and will continue to do so until the last payment is made.”

Contact Us to keep up to date with all of the accounting and tax issues that may affect your business with Bayview Accounting & Tax Practice Updates. 

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. You are welcome to contact our office on 03 9587 7316   or email info@bayviewaccounting.com.au for further advice and assistance.

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Federal Budget 2020/2021

Hand out provided by National Tax & Accountants’ Association (NTAA)

 

1. Personal income tax changes

1.1 Changes to personal income tax rates

1.2 Changes to the Low Income Tax Offset(‘LITO’)

2. Changes affecting business taxpayers

2.1 Expanding access to Small Business Tax Concessions

2.2 JobMaker Hiring Credit

2.2.1 Who is an eligible employee?

2.2.2 Who is an eligible employer?

2.3 Tax-free business support grants

3. Changes affecting companies

3.1 Temporary loss carryback for eligible companies

3.2 Clarifying the corporate residency test

3.3 Meetings conducted via virtual attendance

4. FBT changes

4.1 FBT exemption for retraining and reskilling employees

4.2 Reducing the compliance burden of FBT recordkeeping

5. Other budget announcements

5.1 Removing CGT for ‘granny flat arrangements’

5.2 Superannuation reforms

5.3 Clarifying income tax exemptions for individuals engaged by the IMF and the World Bank group

5.4 Additional funding to address serious and organised crime in the tax and superannuation system

5.5 Supporting the mental health of Australians in small business – COVID-19 response package

5.6 Insolvency reforms to support small business

© National Tax & Accountants’ Association Ltd: 06 October 2020

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Nicole Wright Launches Her New Website at Mordialloc!

The new owner of Bayview Accounting launched her new website at Mordialloc this Easter. Like any good ‘Easter Egg Hunt’ the new website is full of surprises with lots of really valuable information ranging from choosing the best tax structure to sourcing the best possible deal on the mortgage market…

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New Accountant for Bayview Accounting is definitely not all at sea!

Bayview Accounting has a new owner and she loves the sea. Alvin Toffler in his famous book ‘Future Shock’ wrote “There is nothing so constant as change”. Well new owner Nicole Wright is an excellent sea – scape photographer as well as being a very accomplished small business Chartered Accountant.

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