D’Omkara Knowledge March & April 2021
In the blink of an eye, the first three months of 2021 have passed, and the 2021 financial year is quickly coming to an end. While the economy is bouncing back from the pandemic, businesses continue to find their footing as they move into the “new normal”.
This month’s newsletter discusses the following issues:
- Why some businesses are voluntarily returning JobKeeper
- COVID-19 vaccinations and the workplace
- A review of Fringe Benefits Tax (FBT)
- The productivity gap between top-performing companies and others
- The 1 July 2021 superannuation changes
- Professional services firm profits under fire
- JobMaker’s failure to boost employment
- Tax treatment of JobKeeper payments returned to the ATO
Contact our office on (03) 9579 4450 or email us at team@domkara.com.au if you have any questions.
Fund Accountants for the Australian Fuel Fund (AFF)
An opportunity has arisen for D’Omkara Accountants to become the fund administrator for the Australian Fuel Fund. Under this appointment, we will oversee the accounting requirements of the Australian Fuel Fund.
To find out more, view the Australian Fuel Fund investor presentation.
Why are some businesses returning JobKeeper?
Super Retail Group, owner of the Supercheap Auto, Rebel, BCF and Macpac brands, returned $1.7 million in JobKeeper payments in January after releasing a trading update showing sales growth of 23% to December 2020. Toyota announced that it would return $18 million in JobKeeper payments following a record fourth quarter, while Domino’s Pizza returned $792,000 in JobKeeper payments.
COVID-19 Vaccinations and the Workplace
Australia’s first COVID-19 vaccination was administered on 21 February 2021, preceded by a wave of protests. The rollout raises difficult questions for employers concerning individual rights, workplace health and safety, and vaccination requirements.
FBT 2021: Tax and Employee Benefits
Fringe Benefits Tax (FBT) is one of Australia’s most disliked taxes because it can be cumbersome and generate significant paperwork. The COVID-19 lockdowns added another layer of complexity as working patterns and behaviours changed.
The 1 July 2021 Superannuation Changes
Changes taking effect from 1 July 2021 will affect how much money you can contribute to superannuation and how much you can hold in your retirement-phase superannuation account.
Professional Services Firm Profits Under Fire
The Australian Taxation Office (ATO) has been concerned for some time about the structures used by many professional services firms. This particularly affects professional practices such as legal firms, architects, medical practices and engineers operating through trusts, companies, partnerships or discretionary trusts, and how profits from these practices are taxed.
JobMaker Fails to Boost Employment
The Government’s JobMaker scheme created 609 new jobs after registrations opened on 1 February 2021, despite approximately 15,000 businesses registering their interest in the scheme.
