PDD Advisory Group - Important Updates

 

15th June 2020

TO OUR VALUED CLIENT

 

As the end of the financial year is just around the corner, we thought it would be a good opportunity to revisit some tax planning measures. 

Superannuation 

  • You can now claim a personal concessional (deductible) contribution in your individual income tax return even if you have employer contributions being made on your behalf. You are allowed a maximum concessional (deductible) superannuation contribution of $25,000 per annum. This is the total allowed for both employer (SGC and Salary Sacrifice) and personal concessional contributions. This is a great way to get an additional tax deduction and also help with your retirement planning. If you intend to claim a deduction for your personal contributions you will need to ensure you complete a “Notice of Intent to Claim as a Tax Deduction” form with your superannuation fund, before you lodge your income tax return. 

 

  • If you have paid for your personal term life insurance from your personal funds, you should check to see if the term life insurance is through superannuation. If it is, you will have the opportunity to claim those payments as a tax deduction if you follow the steps as per the above point. If you are unsure, please contact our Wealth Management team. 

 

  • Just another reminder for those receiving an income stream from their Self-Managed Superannuation Fund that the Government in April cut the minimum pension percentage in half. If you are unsure what your new minimum payment should be please contact your accountant. Also, now is a good time to go back though your payments for the financial year to ensure that you have indeed met the minimum payment! 

 

  • Finally, as we are about to start a new financial year, it is always a good time to review your superannuation & personal insurance needs to ensure that they are still relevant to your circumstances. If you need to talk to someone - Josh (jhamblin@pdd.com) and Jane (jcooper@pdd.com.au) from our Wealth Management team are available to help with these matters. 

 

Work Related Expenses 

Now is the time to be looking at whether you should be bringing forward potential expenses that you will be incurring in the next few months. Obviously, if you are considering purchasing some tools or equipment for work, or needing to update your work uniform, or laptop that you use for work etc … you should consider spending the money now as it will enhance your potential tax refund when you lodge your 2019/20 income tax return. 

 

Business Expenses and Options 

  • As above – now is the time to be reviewing what you will be needing in the near future and if cash flow permits … taking action now. 

 

  • If you prepare your return on a cash basis – look to catch up on any bills that you owe so that you can bring forward the tax deduction to the current financial year. 

 

  • Consider prepaying some of your expenses - as a small business you can claim a deduction for any prepayments that you make up to 12 months in advance – this can be applied to rent, utilities and even your accounting fees.

 

  • Also, don’t forget that the Government is allowing an instant write off for assets up to the value of $150,000 … again if it is on your radar to buy any item of plant in the near future you can consider bringing in forward.

If you have any questions on the above please contact your accountant or you can send an email to admin@pdd.com.au if you are unsure of your accountant’s email address.

Stay safe and take care. 

Pdd Advisory Group 

 

 

21 May 2020

PDD ADVISORY GROUP UPDATE

In line with Stage One NSW Government changes to restrictions, Pdd Advisory Group will be implementing the following changes to the way we are currently operating.

As of Monday, 25th May 2020 the following changes will take place:

  • Our doors will remain closed but we will be increasing our operating hours to  9.00am - 4.00pm Monday to Friday, however you will still be able to drop off and collect your work as usual
  • Our Accountants and Financial Planners will now be available for limited appointments. Pdd preference is that where possible we continue with phone/skype appointments but in circumstances where a face to face appointment is necessary please contact Pdd reception or email admin@pdd.com.au
  • Please note face to face appointments will be subject to strict conditions and these will be explained to you at the time of making the appointment.  These measures are to keep both you our client and all of our staff safe.

Due to the increased work demands on our Accountants & Financial Planners our preference is for you to contact your Accountant/Planner via email.  Please be patient as they will contact you in due course.  If you do not have their email address please send to admin@pdd.com.au and this will be passed on.

Stay safe and take care.

Pdd Advisory Group

 

15 April 2020

Support For Individuals and Households  -  https://treasury.gov.au/coronavirus/households

 

1.  Job Keeper Payment

Employees will receive a notification from their employer.

Minimum payment of $1,500 per fortnight, before tax from 30 March to 27 Sept 2020.

Payments commence the first week of May.

Need to be an eligible employee.

 

2.  Income Support

Two separate $750 tax free payments to certain social security, veteran and other income support recipients.

First payment from 31 March.

Second payment from 13 July.

 

3.  Coronavirus Supplement

Additional $550 per fortnight, commencing 27 April 2020.

Paid to individuals who are currently eligible for certain income support payments.

Boosts the Jobseeker Payment to $1,100 per fortnight.

 

4.  Early Access To Superannuation Benefits

Individuals who have lost their jobs, or who have had their working hours reduced by 20% or more can apply to their super funds to allow the release of $10,000 in super this financial year and next financial year.

Sole traders can also access where business was suspended or a reduction in turnover of 20% or more.

Applications to be made to fund from 20 April 2020.

https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-your-super/?anchor=Compassionategrounds#Compassionategrounds

 

5.  Reducing Superannuation Minimum Drawdowns

The minimum drawdown amounts for account based pensions and similar products will be reduced by 50% for the 2020 and 2021 financial years.

The above means that the minimum pension will be halved for this financial year, and for next financial year as well.

 

6.   Reducing Social Security Deeming Rates

As of May 2020, the upper deeming rate will be reduced from 3% to 2.25% and the lower deeming rate will be reduced from 1% to 0.25%.

The reductions reflect the low interest rate environment. Social security deeming rates apply for the income test purpose to determine the amount of income an individual is deemed to earn on investments.

 

Support For Businesses  - https://treasury.gov.au/coronavirus/businesses

 

1.  Job Keeper Payment

Businesses significantly impacted by the Coronavirus outbreak will be eligible for the subsidy of $1,500 per fortnight, payable monthly in arrears.

First fortnight commences 30 March to 12  April, and only employees on the payroll will be eligible, must cover all eligible employees (wages can only be backdated for two weeks).

Need to show that turnover has reduced by 30% relative to a comparable period a year ago. Can be done on a monthly or quarterly basis.

https://www.ato.gov.au/General/JobKeeper-Payment/

 

2.  Cash Flow Support – Small & Medium Business

Temporary cash flow support from $20,000 to $100,000 is being provided to assist businesses in paying their operating costs.

Commencing from lodgement of the March 20 BAS. ATO will automatically calculate tax free payment from 28 April 2020.

If the measure creates a refund, these will be paid within 14 days by the ATO.

 

3.  Temporary Relief for Financially Distressed Businesses

The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond.

The threshold for companies issuing a statutory demand will increase from $2,000 to $20,000.

 

4.  Increasing The Instant Asset Write Off

The instant asset write off has been increased from $30,000 to $150,000.

 Assets installed and ready for use between 12 March and 30 June 2020 will be eligible.

  

5.  Backing Business Investment

New time limited 15 month investment incentive to accelerate depreciation deductions.

Deduction of 50% of the cost of an eligible asset. 

Small business entities will be able to depreciate newly acquired pooled assets at 57.5% (rather than 15%).

 

6.  Supporting Apprentices and Trainees

Eligible employers can apply for a wages subsidy of 50% of the apprentices or trainees wage paid from 1 Jan 2020 to 30 Sept 2020.

Employers will be reimbursed up to a maximum of $21,000 per eligible employee ($7,000 per quarter).

Where small business receives the Job Keeper payment, they are not eligible to receive the apprentice and trainee wage subsidy from 1 April.

  

7. Support For Affected Regions and Communities

Newly established programs will provide up to $1Billon in assistance to the tourism, agriculture and education industries.

 

Other Measures

 

1.  NSW Payroll Tax Relief

https://www.revenue.nsw.gov.au/news-media-releases/covid-19-tax-relief-measures/covid-19-coronavirus-and-payroll-tax

 

2.  NSW $10k Govt. Grant for Highly Impacted Businesses

https://www.nsw.gov.au/your-government/the-premier/media-releases-from-the-premier/10000-grants-to-provide-fast-relief-for-nsw-small-businesses-battling-covid-19/

 

3.  Bank Loan Payment Deferrals and Low Interest Loans

https://www.ausbanking.org.au/covid-19/

 

4.  Variation of 2020 Income Tax Instalments to $Nil

https://www.ato.gov.au/General/Gen/Varying-your-PAYG-instalments/

 

5.  National Cabinet Mandatory Code Of Conduct for Commercial Tenancies

https://www.pm.gov.au/sites/default/files/files/national-cabinet-mandatory-code-ofconduct-sme-commercial-leasing-principles.pdf

 

6.  Childcare Operators Assistance

https://www.dese.gov.au/covid-19/childcare

 

7.  Work From Home Deductions Shortcut Calculations

https://www.ato.gov.au/General/COVID-19/Support-for-individuals-and-employees/Employees-working-from-home/

 

8.  Bushfire Grant Relief

https://www.service.nsw.gov.au/transaction/apply-small-business-bushfire-support-grant

 

 

1 April 2020

ARE YOU ELIGIBLE FOR NSW SMALL BUSINESS BUSHFIRE SUPPORT GRANT??

I know it is weird that we are raising a bush fire grant when we are in the midst of the Covid 19 pandemic but …. It could be worth $10,000 to your small business.

To be eligible you need to tick off the following criteria:

  •  Be a small business owner
  • Hold an Australian Business Number (ABN) 
  • Have been engaged in carrying on a small business in a defined disaster area
  • Have suffered a decline in revenue of 40% or more in a relevant three (3) month period (compared to a relevant three (3) month period in the previous year) as a result of the eligible disaster.

If you believe you qualify follow the following link to register.

https://www.service.nsw.gov.au/transaction/apply-small-business-bushfire-support-grant

Please note applications may be subject to audits.

If you need a hand to work your way through this please contact your accountant via their email.

Stay safe and take care.

Pdd Advisory Group

 

27 March 2020

PDD IMPORTANT UPDATE 

We want to reassure you, our clients, that we continue to be available for you and it is business as usual.

Even if the Government should place our offices in lockdown, we are working on contingency measures so that all our Accountants and Advisers will still be available to you and will still be able to service your needs when they arise. We will update you via Facebook, our website and email should a lockdown of our business eventuate on how our business will continue to operate.

At this stage, should you require us to complete work for you in the near future please get that work to us sooner than later.  Obviously, it will be easier for us to get your work now then if we are in lockdown.

Again, if you need to communicate with your Accountant and Adviser it is best to contact them via email and they will respond to you as soon as they can.  As you can appreciate this may not be immediately, please be patient.

As discussed in our last correspondence we will keep you abreast of issues that affect you now.

For those of you that are receiving an income stream from your superannuation fund you can now decrease your minimum drawdown by 50% for the 2020 and 2021 financial years. So in these uncertain times with the investment markets being very volatile you now have the option to decrease the amount you take from your superannuation funds and leave more in there to work for your future. For those of you who have already drawn an amount equivalent to your reduced amount before the announcement – you do not need to take any further payments from your funds. For further information email your adviser or accountant.

The Government has announced it will reduce the pensioner deeming rates for financial investments from 1st May 2020 by 0.75%.  So the upper deeming rate will be reduced from 3% to 2.25% and the lower deeming rates will be reduced from 1% to 0.25%. Should you require further details or assistance with this please email Josh at jhamblin@pdd.com.au

If you employ apprentices and trainees the Government has announced that you can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020. Employers (with fewer than 20 full time employees) will be reimbursed up to a maximum of $21,000 per eligible person ($7,000 per quarter). The Government advises employers to contact your Australian Apprenticeship Support Network (AASN) provider. If you need assistance please email your accountant.

Finally for this update, regarding the Government’s stimulus package for small to medium business. This incentive is directed at businesses with annual turnovers of less than $50 million and who are registered as employers with the ATO. To put simply, the government will allow credits on your Integrated Client Account (ICA) based on the amount of Pay As You Go Withholding that you declare on your Business Activity Statements (BAS) for the periods ending March 2020 to September 2020.  As these credits will not be applied to your ICA until after lodging your March 2020 BAS we believe it is best to email your Accountant and they can provide estimates of the credits that will be applied and timing re same. Also, due to the current uncertain times, we advise that all ATO debts after January 2020 are not due and payable until 28th May 2020 and as such we believe that all clients should defer ATO payments until that time and then discuss with their accountant the best course action to deal with that debt.

Stay safe and take care and we will be back in touch soon with more information.
Pdd Advisory group

Any advice or information in this publication is of a general nature only and has not taken into account your personal circumstances, needs or objectives. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.
 

 

25 March 2020

PDD IMPORTANT UPDATE 

Our doors are closed, but only to protect our staff as advised by the Department of Health. Our accountants are still accessible to you, our clients.

We are contactable by phone and email and we are currently not having face to face meetings with our clients but can certainly replace these with phone conferences and skyping. Please contact our reception to organise a time if you need a “meeting” with us. If you want to contact your accountants it is preferred if you email them and they can get back to you in due course.

We plan to keep you updated via emails and Facebook as best we can but as you can appreciate these are very testing times for all of us.

As you can appreciate we are experiencing a high volume of enquiries and also working through a considerable amount of information from the Government, Australian Taxation Office, Banks and other institutions so please be patient with us and we will get back to you ASAP.

As a starting point, we encourage you to contact your bank NOW to organise deferral of repayments on your homes loans, business loans and asset finance loans. We believe banks are offering a deferral of repayments of up to 6 months BUT YOU NEED TO CONTACT YOUR BANK to organise. Don’t wait until you are in financial difficulties – contact them now to get it in place.

Also, the Government announced as part of the rescue package that an Australian Business with less than $50 million turnover may be eligible for an unsecured overdraft facility of up to $250,000. From our enquiries, you will need to apply to your bank for this facility and it will be treated as a normal application for finance to the bank. We suggest you contact your bank ASAP to get the process underway and don’t wait for the Government to make an announcement that your business will be closing. We are available to help you through this process. Please contact your accountant if you require assistant to get this in place after you have spoken to your bank to find out exactly what they require.

Finally, to all of you who are still employed keep in mind that if your employer is forced into shutdown we believe that employers are not legally required to pay any wages to employees as per Fair Work Act Sec 524-525. We have requested legal advice on this matter but to date have not received anything back. Speak to your employer now and ask them what you will be entitled to if the worst should happen and they need to shut down. We believe employers will be offering their staff to use up annual leave accruals and then long service .... If you have limited annual leave and long service leave we suggest you look to register with Centrelink NOW which will help to speed up the any application process when you find yourself in need of their help (hopefully this won’t happen!).

We will keep rolling out these updates over the next few days as we do not want to overload you with information. We believe these are the more important issues that our clients need to deal with immediately.

Stay safe and take care and we will be back in touch soon with more information.

Regards
The Team at Pdd Advisory Group

* Any advice or information in this publication is of a general nature only and has not taken into account your personal circumstances, needs or objectives. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.