This month we bring to you the latest updates on Payroll Tax Relief by the South Australian Government and Extension to Shortcut method for WFH. We touch upon Implication of Job Keeper Payments in relation to Work Test and the New PAYG Withholding Tax Rates. Concession on SMSF Assets Valuation is also briefly explained.
- This relief will be available to businesses based on the returns for the months of September to November 2020.
- 3 months waiver for businesses with annual payroll (grouped) of up to $4M.
- 3 months deferral until 14th January 2021 for businesses with annual payroll (grouped) of more than $4M.
- In case of businesses eligible for deferral, any tax deferred previously relating to the periods April to September 2020 can also be further deferred until 14th January 2021.
New PAYG Withholding Tax Rates
The Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Bill 2020 has passed all stages without amendment and awaits Royal Assent.
- The ATO has issued updated tax withholding schedules to reflect the 2020-21 personal tax cuts.
- Employers must implement the new tax rates on or before 16th November 2020.
- The ATO has announced that it will not apply any penalties on the SMSF for 2021 and 2021 financial years for not obtaining valuation evidence due to COVID-19.
- Instead, the ATO will send the SMSF trustee a letter advising them to get the valuation evidence before the next audit.
- The SMSF auditor has to provide reasons on the ACR as to why the trustee was unable to obtain the appropriate evidence, if the ACR is deemed necessary.