All news by: Varun Kumar

Incentivising key employees and retaining talent

Forward thinking businesses understand that retaining key loyal staff, especially in the current environment is critical to business survival and igniting growth, but how do you keep staff happy in such difficult trading conditions?

Daniel Pegdon; Varun Kumar
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The JobMaker Scheme

The Economic Recovery Package (JobMaker Hiring Credit) Amendment Bill 2020 received Royal Assent on 13 November 2020. Final Rules governing JobMaker will be released after public consultation, therefore the information provided in this document is based on the draft rules.  

Varun Kumar
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Loss carry back rules for companies

The loss carry back rules for companies which were announced in the 2020-21 Federal Budget are now law. The Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Bill 2020 (the Bill) received Royal Assent on 14 October 2020.

Varun Kumar
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Temporary Full Expensing Provisions

The temporary full expensing (TFE) of depreciating assets measure announced in the 2020-21 Federal Budget is now law. The Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Bill 2020 (the Bill) received Royal Assent on 14 October 2020. The TFE provisions allow eligible businesses with an aggregated turnover of less than $5 billion to claim a tax deduction for the full cost of an eligible depreciating asset purchased between 6 October 2020 and 30 June 2022 (the relevant period).

Varun Kumar
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Updated PAYG Withholding Tax Tables

The Australian Taxation Office (ATO) have updated the PAYG withholding tax tables to reflect the income tax cuts announced in the Budget last week.

Varun Kumar
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Should the Stamp Duty rules be reformed?

Stamp duty (or transfer duty) is a financial burden that may deter individuals and families from entering the property market and acts as a barrier to investment opportunities. It raises the issue of whether stamp duty is still appropriate in the modern economic landscape and calls for replacing stamp duty with a broad-based land tax are getting louder. This issue was considered by NSW Treasury in a recent report NSW Review of Federal Financial Relations -Supporting the road to recovery (the NSW Report).

Varun Kumar
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Should a review of GST be on the table?

Last week we asked about the future of GST in Australia and as we expected, more than 65% of the respondents felt that change is required. As we come out of COVID-19, revenue collection will be high on the Government’s agenda, primarily to fund the cost of stimulus funding. On numerous occasions, our leaders have stated that they are against increasing taxes and want to encourage consumer spending in Australia. There are media reports of personal tax rate cuts being brought forward to reinvigorate the economy. ​Our GST system is complex and needs improvement. There have been some minor adjustments, such as making certain foreign suppliers of goods and services in Australia being liable for GST, but there is scope to make some targeted changes to improve the efficiency of the GST system. Read more about our thoughts and the options available.

Varun Kumar
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JobKeeper 2.0: The rules explained

The Coronavirus Economic Response Package (JobKeeper Payments) Amendment Bill 2020 was recently passed by Parliament to facilitate the extension of the JobKeeper Scheme to 28 March 2021. The Treasurer has subsequently released amended Rules for the Scheme, which were registered on 15 September 2020.  

Varun Kumar
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Is it time to 'fix' corporate tax rates once and for all?

Last week we asked what the future of the corporate tax system of Australia should look like. More than 64% of respondents felt that Australia should have a single corporate tax rate set at 25%.  The upcoming Federal budget is going to be important for business. Hopefully the Government will carefully consider some issues which in our view require immediate reform. Read more about our thoughts on the complex dual corporate tax system is complex, and why we should be moving towards a single lower corporate tax rate.

Varun Kumar
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Issues company directors should be aware of during COVID-19 and beyond

The last few months have had far reaching implications for many businesses across Australia. Whilst some businesses are starting to show signs of recovery, there are a few ‘ticking’ timebombs you need to be aware of as a company director. Directors may be personally liable for certain actions by the company including situations of insolvent trading and failure to meet employee (PAYG and superannuation guarantee), or GST obligations (in certain scenarios). The Government has provided some relief for directors in relation to insolvent trading due to the impact of COVID-19, but it is important to look out for issues not necessarily covered by the relief.

Varun Kumar
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JobKeeper 1.0: Changes you need to be aware of

The Federal Government recently announced the expansion for the eligibility of the current JobKeeper Scheme.   As part of the changes announced, the Federal Government introduced changes for employees eligible for the JobKeeper Scheme from 3 August 2020. On Friday 14 August, the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 7) 2020 (the Rules) were registered which commence from 15 August 2020. 

Varun Kumar
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Revenue vs Capital: two sides of the coin

The ongoing debate of capital vs revenue was recently raised in a Full Federal Court case - Greig v FCT [2020] FCAFC 25. The case highlights the continuing difficulty in the capital vs revenue distinction. This area of law falls within a grey zone where the outcome turns on the facts of each situation.

Varun Kumar
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Taxable payments annual reporting obligations

Businesses who make payments to contractors in relation to certain services may be required to prepare and lodge the Taxable payments annual report (TPAR) which is due for lodgment by 28 August 2020.  

Varun Kumar
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JobKeeper 2.0 and the next phase of stimulus activity

The Government has released some further detail on what the future of stimulus will look like in Australia.

Varun Kumar
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Australia: how we are faring during COVID-19

We're lucky to be in Australia and even more so in these times with a global pandemic of COVID-19. Businesses have struggled, people have self-isolated and the Government has done its best to prop up businesses with the Jobkeeper payment and other stimulus measures. The economy has suffered greatly, and it will take time to revert to pre-COVID times. Due to our geographical isolation and quick actions of Governments, we were able to contain the number of cases of Coronavirus to a degree, however, with the recent spike in Victoria, we need to remain vigilant. A second wave is occurring, and it is up to states and territories to contain this and keep strategising to reduce the detrimental impact on our economy.

Varun Kumar
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Planning for the worst - what happens when the stimulus runs out?

Businesses who are currently in receipt of stimulus payments have less than three months to get their cashflow in order. 

Varun Kumar
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Superannuation contributions – don’t leave it too late

With 30 June fast approaching, it is necessary to be aware of the timing issues that may impact superannuation deductions and your contribution caps. In general, provided the relevant conditions are met, superannuation deductions can only be claimed in the year the superannuation fund receives the contributions.

Varun Kumar
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Protecting capital losses – common issues with related party loans

The last few months have been tumultuous for Australia and within the tax world, we have seen a raft of new legislation being introduced to save the Australian economy. However, in trying to stay agile and keeping up to date with the changes, we may lose sight of the usual hidden issues contained within our complex tax system. One of these is the personal use assets provision and its impact on the capital gains tax (CGT) treatment of loans advanced by individuals (or any other entity) to prop up struggling businesses.

Varun Kumar
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Extension of the Instant Asset Write Off and how it applies to motor vehicles

The Government has announced that it will extend the instant asset write off (IAWO) to 31 December 2020 for asset purchases below $150,000. Businesses with an aggregated turnover of less than $500 million are currently eligible for the write off and it is intended that this announcement will be legislated soon.

Varun Kumar
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HomeBuilder – the Government’s new $25,000 grant

The Government has announced a new $680 million HomeBuilder package designed to spark life into the residential construction industry by encouraging the building of new homes and substantial renovations.

Varun Kumar
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Rental Assistance – Code of Conduct for commercial tenancies

The Federal Government released a code of conduct (the Code) for commercial tenancies and its purpose is to impose a set of good faith leasing principles for application to commercial tenancies.

Varun Kumar
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JobKeeper payments update

The Coronavirus Economic Response Package Omnibus (Measures No. 2) Bill 2020 (the Bill) was passed by Parliament to introduce the JobKeeper payment.

Varun Kumar
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Government’s Third Stimulus Package designed to save Australian jobs impacted as a result of COVID-19

On 30 March 2020, the Government announced a $130 billion wage subsidy to combat the impact of COVID-19 on the Australian economy. The Government has provided further support to Australian businesses and encouraged businesses to keep their workers employed by providing a “JobKeeper” payment to eligible employers for eligible employees.

Varun Kumar
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COVID-19 Economic Response Package receives Royal Assent

The Coronavirus Economic Response Package Omnibus Bill 2020 received Royal Assent on 24 March 2020 and is now law. The package included various changes which were announced in the two stimulus packages released recently by the Government.

Varun Kumar
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Government’s 2nd Stimulus Package Announced

The government announced a second stimulus package worth $66 billion in an attempt to deal with the impact of COVID-19 on the Australian economy.

Varun Kumar
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Superannuation Amnesty – six months to get your employer obligations in order

The Bill introducing the superannuation guarantee (SG) amnesty received Royal Assent on 6 March 2020 and employers have until 6 September 2020 to correct any historic non-compliance with their SG obligations.

Varun Kumar
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Reduction in Corporate Tax Rate

Changes, changes and more changes - Bringing forward the company tax cuts Following on from the various changes to company tax rates earlier in the year, the Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 was introduced and passed by the Senate relatively quickly last week. The Bill proposes to bring forward the tax cuts for small and medium businesses. The Bill is currently awaiting Royal Assent.

Varun Kumar
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Moore Stephens Tax Alert - Redundancies and ETPs

Redundancies are, unfortunately, a part of doing business. Over the last year or so, there has been a lot of movement within the Western Australian job market with employments being terminated or being made redundant.  As an employer, it is critical that you understand what your responsibilities are. To help you, we have undertaken various reviews of calculations for Employee Termination Payments (ETP) and genuine redundancies

Varun Kumar
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