This month we bring to you top three lodgement issues highlighted by ATO for FY2019-20, CGT improvement threshold for FY2020-21.
And summarised below are extensions announced on various COVID relief measures.
ATO’s top 3 lodgment issues for FY2019-20
- Claiming multiple working from home methods for the same period.
- Copying and pasting last year’s deductions.
- Forgetting to include some income. For E.g. Cash Wages, Foreign Income, Cryptocurrency Gains, etc.
CGT improvement threshold for FY2020-21
- The ATO has increased the CGT improvement threshold from $153,093 in FY2019-20 to $155,849 in FY2020-21.
- This threshold is relevant for determining if an improvement to a Pre – CGT asset is treated as a separate asset for CGT purpose.
Extension of WFH shortcut rate
- The ATO has extended the WFH shortcut rate of 80c/hour till 30th September 2020.
- This was originally meant only for the period from March to June.
- Taxpayers are advised maintain a record of the number of hours worked from home.
Victorian government announces more business support
- Eligible businesses with payrolls up to $10 million can defer the payroll tax for the 1st half of FY2020-21.
- Expanding the business support fund to provide a new $5,000 grant.
- This grant previously applied only to 12 postcodes linked to outbreaks. It will now apply to all areas under stage three restrictions.
Extension to the Job keeper program
- The Job keeper subsidy program has been extended till March 2021 at lower rates and with additional eligibility testing for small businesses and sole traders.
- Under the additional eligibility testing, businesses should demonstrate an actual decline in the revenue against a comparable period rather than forecasts.
- Refer to the reduced subsidy amount below:
Fortnightly Period Full Time Part Time28th September 2020 to 3rd January 2021$1,200$7504th January 2021 to 28th March 2021$1,000$650
Extension to the early release of super
- The early super release of $10,000 has been extended up to 31st December 2020.
- The timeline for the 2nd application has also been extended from 24th September 2020 to 31st December 2020.
Extension to apprentice & trainees wage subsidy scheme
- This scheme has been extended up to 31st March 2021. This was originally meant to last only up to 30th September 2020.
- According to the scheme, 50% of the apprentice or trainee’s wages for 9 months, up to $7,000/quarter will be provided as subsidy to the employers.