Companies should note that the government made a determination just before the end of the financial year that permits companies to hold annual general meetings by electronic format. Also, companies may execute a document, without using a common seal, by electronic communication. The determination is to be repealed on 6 November 2020. Annual general meetings...

PAYG instalments is a system that helps you manage your expected tax liability on income from your business or investments for the current income year by making smaller regular payments. To assist taxpayers experiencing financial difficulty as a result of COVID-19, the ATO is providing added flexibility to manage your instalments to suit your circumstances....

The ATO has announced an important tax residency concession for foreign incorporated companies during the COVID-19 crisis. BackgroundOn 24 March 2020, the government announced a ban on Australians travelling overseas, using powers given to it under the Biosecurity Act 2015. The ban is aimed at preventing travellers returning to Australia with COVID-19. There are limited...

When assessing eligibility for JobKeeper assistance, the first question that must be answered is whether the entity was carrying on a business as at 1 March 2020. This question is of particular relevance to entities that have solely or predominantly rental income (other than input taxed supplies). Whereas one Administrative Appeals Tribunal case noted that “the...

The ATO has announced that it has identified some common errors regarding luxury car tax (LCT) claims, but also says there are issues it has identified with LCT that are more associated with actively trying to pay less tax than required. Common errorsSome common errors the ATO has identified when taxpayers report or claim LCT...

While many of the COVID-19 stimulus changes such as the JobKeeper payment  are grabbing headlines, it is easy to overlook the significance of the $150,000 instant asset write off provisions. The key changes for the instant asset write off include the following. Certain business entities can access an immediate deduction for the full cost of...

An alternative decline in turnover test for the JobKeeper payment scheme has now been registered by the ATO. The ATO says the alternative tests will only kick in if an entity cannot satisfy the basic decline in turnover test. The instrument applies to provide alternative bases for a class of entities (more below) to satisfy...

The ATO has been charged with running the JobKeeper Payment scheme, which is intended to support businesses that are financially affected by COVID-19 to help keep their staff employed. Employers will be required to pay their eligible employees a minimum of $1,500 a fortnight, before tax, to claim the JobKeeper payment. This is then paid...

It has been a long time coming, but a planned government amnesty for employers who have missed paying the superannuation guarantee (SG) to their employees has now become law. The amnesty was passed on 6 March 2020, and lasts until 7 September 2020. The amnesty allows employers to make deductible payments, without penalties, of outstanding...

Entering into a remuneration package to secure a vehicle through a salary sacrifice arrangement is a popular option offered to employees. However the ATO has issued a ruling on another particular set of wheels that opens up both a tax and health incentive. ATO guidance covering the use of an electric bicycle (e-bike*) by an...