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D’Omkara Knowledge 💰 May Edition

The New Directors ID

Inside this month, we look at the new lifetime Director ID regime and what it will mean to existing and new directors, the impending CGT exemption for granny flat arrangements, and the questions we get on SMSF expenses and investments that are not at arm’s length.

Directors will be required to register for a unique identification number that they will keep for life, much like a tax file number under a rewrite of Australia’s business registers. We explore how and why.

To protect older Australians, the Government has moved to formalise ‘granny flat arrangements’ by providing an incentive to protect all parties in the arrangement. We look at how the exemption is likely to work and the issues it seeks to resolve.

D’Omkara Knowledge March & April 2021

In a blink of an eye, the first three months of 2021 have gone by, 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 to propel themselves forward into the ‘new normal.

This month’s newsletter discusses the most recent issues of:

  • Why some businesses are voluntarily returning JobKeeper
  • Covid-19 vaccinations and the workplace
  • A review of Fringe Benefit Tax (FBT)
  • The productivity gap between top-performing companies and others
  • The 1 July 2021 superannuation changes
  • Professional services firm profits under fire
  • JobMaker fails to boost employment; and
  • Tax treatment of JobKeeper payments handed back to ATO

Contact our office at (03) 9579 4450 or email us at team@domkara.com.au for any questions you may have!

Fund Accountants for The Australian Fuel Fund (AFF)

An opportunity has presented itself, allowing a partnership to be formed with D’Omkara Accountants, as Australian Fuel Fund’s fund administrator. With the new appointment, we will oversee all the accounting needs for Australian Fuel Fund.

To find out more, please refer to the pitch deck available here.

Why are some businesses returning JobKeeper?

D’OmkaraKnowledge –March20211Why are some businesses returning JobKeeper?Super Retail Group -owner of the Supercheap Auto, Rebel, BCF and Macpac brands -handed back $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 will return $18 million in JobKeeper payments after a record fourth quarter. And, Domino’s Pizza has also handed back $792,000 of JobKeeper payments.

COVID-19 Vaccinations and the Workplace

The first COVID-19 vaccination in Australia rolled out on 21 February 2021 preceded by a wave of protests. With the rollout, comes a thorny question for employers about individual rights, workplace health and safety, and vaccination enforcement.

FBT2021: Tax & Employee Benefits

Fringe benefits tax (FBT) is one of Australia’s most disliked taxes because it’s cumbersome and generates a lot of paperwork. The COVID-19 lockdowns have added another layer of complexity as many work patterns and behaviours changed

The 1 July 2021 superannuation changes

Changes from 1 July 2021 will impact on how much money you can contribute to superannuation and how much you can have in your retirement phase superannuation account

Professional servicesfirmprofits under fire

The Australian Taxation Office (ATO) has been concerned for some time about how many professional services firms are structured –specifically, professional practices such as lawyers, architects, medical practices, engineers, architects etc., operating through trusts, companies and partnerships of discretionary trusts and how the profits from these practices are being taxed.

JobMaker fails to boost employment

D’OmkaraKnowledge –April20216JobMaker fails to boost employmentThe Government’s JobMakerscheme has created 609 new jobs since registrations opened on 1 February 2021, despite around 15,000 businesses registering their interest in the scheme.

D’Omkara Knowledge February 2021

D’Omkara Knowledge February 2021

2021 has definitely been an interesting year for most. Nevertheless, COVID-19 is still at large, greatly affecting businesses, each in their own way different way. This month's newsletter educates our clients on how to sell their business and explores the final phase of JobKeeper and how it could be accessed.

The topics included in this month’s newsletter are:

  • Selling your business
  • Assessing JobKeeper
  • Debt Restructuring
  • Streamlined insolvency

Contact our office at (03) 9579 4450 or email us at team@domkara.com.au for any questions you may have!

Sell your Business

D’Omkara Knowledge – Selling your business

Two key components are at play; structuring the transaction and positioning the business to the market. In order to sell, you need to get an objective assessment of how the business compares in its market, its competitive position, and what, if any, impediments to sale exist.

D’Omkara Knowledge – Accessing JobKeeper & FAQs

If employers have experienced a sufficient downturn (a 30% threshold applies to most entities) in their actual GST turnover in the December 2020 quarter compared to the same period in 2019, they will be eligible for JobKeeper.

Accessing JobKeeper & FAQs
Debt Restructuring

D’Omkara Knowledge – Debt Restructuring

On 1 January 2021, new laws came into effect that introduce a new, simplified debt restructuring and liquidation framework for small businesses.

D’Omkara Knowledge November 2020

Dear Valued Client & Partners,

No doubt 2020 has been a challenging year for many! However, in the recent Federal Budget, the government has announced different incentives that would continue helping Australian businesses & individuals get back up on their feet.

  • The topics included in this month’s newsletter are: JobMaker Hiring Credits
  • Tax deductions for investing in your business
  • Refunds for Tax Losses
  • JobKeeper clawbacks
  • Updated Tax Tables – 2020-21 personal income tax cuts Superannuation Early Release

Contact our office at (03) 9579 4450 or email us at team@domkara.com.au for any questions you may have!”

D’Omkara Knowledge – Extended December JobKeeper deadline

The ATO has extended the JobKeeper monthly business declaration deadline for the month of December until 28 January 2021 (from 14 Jan 2021).

This applies to the JobKeeper fortnights ending on 6 December 2020 and 20 December 2020.

The deadline for meeting the minimum wage condition for the JobKeeper fortnight ending on 3 January 2021 has been extended to Monday, 4 January 2021.

D’Omkara Knowledge – Extended December JobKeeper deadline

The ATO has extended the JobKeeper monthly business declaration deadline for the month of December until 28 January 2021 (from 14 Jan 2021).

This applies to the JobKeeper fortnights ending on 6 December 2020 and 20 December 2020.

The deadline for meeting the minimum wage condition for the JobKeeper fortnight ending on 3 January 2021 has been extended to Monday, 4 January 2021.

D’Omkara Knowledge – Refunds For Tax Losses

If your company has made a loss, you may be able to claim a tax refund for tax previously paid on profits.

D’Omkara Knowledge – Tax deductions for investing in your business

Stimulating investment is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses with turnover under $5bn to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use.

D’Omkara Knowledge – JobKeeper clawbacks

If your company has made a loss, you may be able to claim a tax refund for tax previously paid on profits.

D’Omkara Knowledge – Updated Tax Tables – 2020-21 personal income tax cuts
Superannuation Early Release

Stimulating investment is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses with turnover under $5bn to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use.

D’Omkara Knowledge December 2020

What a year it has been! As Christmas draws near, it also signals a fresh start 2021 can bring. In this month of D'Omkara Knowledge, we bring you a summary of the key information you would need to end the year the best you can:

  • Extended December JobKeeper deadlines
  • Last chance to access Covid-19 early access to super
  • 2021 Risks & Opportunities

Contact our office at (03) 9579 4450 or email us at team@domkara.com.au for any questions you may have!

Extended December JobKeeper deadline

The ATO has extended the JobKeeper monthly business declaration deadline for the month of December until 28 January 2021 (from 14 Jan 2021).

This applies to the JobKeeper fortnights ending on 6 December 2020 and 20 December 2020.

The deadline for meeting the minimum wage condition for the JobKeeper fortnight ending on 3 January 2021 has been extended to Monday, 4 January 2021.

Last chance to access Covid-19 early access to super

31 December 2020 is the last day you can apply to access your superannuation early under the Covid-19 early access measures. The ATO has warned that those wanting to access their superannuation pre-Christmas will need to complete the application by 11 December 2020.

*Eligibility criteria can be found in the ‘Read more’ section below

2021 Risks & Opportunities Opportunities:

Employers & Job Building

  1. Home Builder & the housing industry
  2. Extended rules for writing off assets: Australian subsidiaries of global companies to benefit

Risks

  1. Covid-19 rules & regulations
  2. Australia’s relationship with China
  3. Cashflow crunch