Important updates
Important updates for individuals and businesses
This newsletter includes a range of information, including:
Tax Cuts - Are you using the new tax tables to withhold the right amount of tax?
Claiming motor vehicle expenses.
JobMaker Plan - Support for businesses and new apprenticeships, and traineeships available to existing workers.
Can't log in to your myGov and ATO online accounts?
2020 Land tax COVID-19 relief - Guidelines.
Increase to maximum age for dependants on private health insurance.
Bush & Campbell Christmas shutdown dates.
Tax Cuts - Are you using the new tax tables to withhold the right amount of tax?
The Australian Government has introduced personal income tax cuts that apply from 1 July 2020.
Updated tax tables are now available for you to reflect the tax cuts in employee’s take-home pay.
You must make sure you are withholding the correct amount from salary or wages paid to your employees for pay runs processed in your system from 16 November onwards.
Payroll software providers will be updating software to implement these tax rate changes. Some payroll software providers may take longer to update their software. Your software provider will keep you updated on these changes.
You don't need to make any other adjustments or refunds.
Any ‘over-withholding’ that occurred prior to updating your payroll software or processes will be included in your employee’s income tax assessment at the end of the year.
Claiming motor vehicle expenses
You can claim motor vehicle expenses that are part of the everyday running of your business, such as travelling between different business premises and visiting clients.
Common expenses include; fuel, repairs, lease payments, insurance registration, and depreciation.
If you operate your business as a sole trader or partnership and use a car as part of the everyday running of your business, you can work out your claim using either methods:
Cents per kilometre method:
The rates for the cents per kilometre method are:
68 cents from 1 July 2018 to 30 June 2020
72 cents from 1 July 2020.
It applies for a maximum of 5,000 business kilometres per car.
Logbook method:
For the logbook method, you need to keep a logbook for at least 12 continuous weeks and work out the percentage of business use for each car expense.
You can only claim the actual costs of expenses based on receipts if you:
operate your business as a sole trader or partnership and use an ‘other vehicle’, such as motorcycles or vans designed to carry loads of at least one tonne
operate your business as a company or trust.
Always keep records showing how you calculated your claim.
Remember, if you use your vehicle for both business and private use, you can only claim the business portion of the expenses.
JobMaker Plan - Support for businesses and new apprenticeships, and traineeships for existing workers
The Government has prioritised skills development as part of its JobMaker Plan. The Government’s plan will support getting people into jobs and ensures that Australians have the right skills for the jobs of the future.
The Government has already put in place the $2.8 billion Supporting Apprentices and Trainees wage subsidy to ensure apprentices and trainees already in work remain engaged and are in a position to support the economic recovery.
This is expected to support 90,000 employers to keep up to 180,000 apprentices and trainees in employment and training.
The Government recognises that apprenticeships are a key pathway into the workforce. To invest further in Australia’s training system and skills pipeline, the Government is committing an additional $1.2 billion through the Boosting Apprenticeship Commencements Wage Subsidy to boost the number of new apprenticeships and traineeships.
This will support up to 100,000 new apprentices and trainees by paying a 50 per cent wage subsidy for commencing apprentices and trainees at businesses of all sizes, in all industries, and in all locations.
Businesses will receive the 50 per cent wage subsidy, up to a cap of $7,000 per quarter, for commencing apprentices and trainees, including those employed by Group Training Organisations, until 30 September 2021.
Existing workers embarking on a new apprenticeship will be included in this scheme to support upskilling and reskilling.
Can't log in to your myGov ATO online accounts?
If you can’t log in to myGov, you won't be able to access ATO online services. You can create a new account online yourself to re-link to the ATO.
ATO online services for individuals and sole traders, accessed through your myGov account, makes it easier for you to manage your tax.
If you're a sole trader, you can lodge activity statements, access the Small Business Superannuation Clearing House and lodge various returns.
Sometimes you may find you can't log in to myGov. This usually occurs when you no longer have access to the device that receives the sign-in security code. This may be because you:
changed phone numbers
went or moved overseas and no longer have access to your Australian mobile number
deleted the myGov Code Generator app.
If this happens, you usually don’t need to call us for a linking code, you can create a new account yourself and re-link online.
Remember, your myGov account is different from the myGovID app which is used with our Business Portal.
2020 Land tax COVID-19 relief - Guidelines
The NSW Government has introduced measures to provide relief to commercial and residential landowners, who provide a reduction in rent to a tenant who is experiencing financial distress as a result of COVID-19.
The 2020 land tax COVID-19 relief is intended to reduce a landowner’s land tax payable for 2020, by up to 50 per cent, for a taxable parcel of land where rent relief has been given to the tenant who occupies that land.
There are two relief periods for which a landowner can apply for relief:
Period 1 - 1 April 2020 to 30 September 2020
Period 2 - 1 October 2020 to 31 December 2020
Increase to maximum age for dependants on private health insurance
From 1 April 2021, the Government will increase the maximum age of dependants for private health insurance policies from 24 to 31 years and remove the age limit for dependants with a disability.
We know everyone is looking forward to a break after what has been an unprecedented year, and we hope all of our clients enjoy a relaxing holiday season.
All Bush & Campbell offices will be closed from 12pm Thursday 24th December, and reopening 8:30am Monday 4th January.