The Federal Government has announced that JobKeeper will be extended to 28 March 2021 subject to the following amendments, we will help you understand what this means for your Business.
From 28 September 2020 JobKeeper will operate a tiered wage subsidy system:
$1200 per fortnight for employees who averaged 20 hours or more per week during February 2020
$750 per fortnight for employees who averaged less than 20 hours per week during February 2020
From 4 January 2021 the wage subsidy will reduce to:
$1000 per fortnight for those employees who averaged 20 hours or more per week during February 2020
$650 per fortnight for employees who averaged less than 20 hours per week during February 2020
Click here for an overview of the JobKeeper Extension guidelines.
Workplace Face Coverings (Masks)
The Victorian Government announced on Sunday, 19 July the requirement for wearing face coverings when leaving home for residents residing in metropolitan Melbourne and the Mitchell Shire following a concerning increase in coronavirus cases in recent days. It is advised employers continue to meet their Occupational Health and Safety obligations by reducing risk in the workplace.
- Maintaining 1.5 metre distancing where possible
- Hygiene and sanitisation protocols
- Whereby staff are in close contact with patrons or other staff members, consider the introduction of face masks
- Composition of staff lunch rooms / change rooms taking into account social distancing and room density measurements
If a staff member approaches an employer to wear a face mask, the employer should not unreasonably refuse the request.
Cash Flow Boost (CFB) is split into two components:
The April to June BAS returns can be prepared and lodged. More than likely your business will be entitled to the next CashFlow Boost component. Here is summary of the CFB’s from the ATO website.
Remember, the CFB Credit will be applied to the amount due to be paid to the ATO for that BAS and any excess should be refunded.
- Based initially on the March BAS an amount of between $10k and $50k will be added to the ATO Activity Statement Account (and possibly generating a refund). BAS’s for the months of April, May and June may provide further amounts of component 1.
- March monthly BAS should receive a credit of 3 times the PAYGW on March.
- March quarterly BAS should receive a credit of the PAYGW for the quarter.
- April through to and including June will provide further credit if the PAYGW then exceeds the $10k minimum but only up to the $50k maximum.
- Based on either the Quarterly BAS for each of June & then the September BAS: the employer should receive an amount of CFB equal to 50% for each BAS of the total paid in component 1.
For monthly BAS the employer should receive an amount of 25% of component 1 for each BAS for the months of June, July, August and September.
The information provided here is of a general nature for Australia and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’s circumstance will vary for end of financial year.
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