Category Archives: Uncategorized

Extensions to the JobKeeper Payment

 

The government has announced extensions to the JobKeeper Payment. Once legislated, these changes take effect from 28 September 2020.

 

The required fall in GST turnover percentages will remain the same

 

  • 30% for an aggregated turnover of $1 billion or less
  • 50% for an aggregated turnover of $1 billion or more
  • 15% for ACNC-registered charities other than universities and schools.

 

There will be a tier 1 and a tier 2 JobKeeper rate.

 

  • Tier 1 rate applies for:
    • eligible employees who were working for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and
    • eligible business participants who were actively engaged in the business for 20 hours or more per week on average.

 

  • Tier 2 rate applies for other eligible employees and business participants.
  • Employers and businesses will need to nominate the rate they are claiming for the eligible employees and/or eligible business participants.

Extension 1

 

The first extension period is from 28 September 2020 until 3 January 2021.

 

You will need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).

 

The tier 1 rate will be $1,200 per fortnight.

 

The tier 2 rate will be $750 per fortnight.

Extension 2

 

The second extension period is from 4 January 2021 until 28 March 2021.

 

You will need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter (October, November, December) relative to a comparable period (generally the corresponding quarter in 2019).

 

The tier 1 rate will be $1,000 per fortnight.

 

The tier 2 rate will be $650 per fortnight.

Contact Expert Tax on 0449 952 855 or 1300 869 829 for further assistance.

 

 

Study and training loan repayment thresholds and rates

2020-21

 

All study and training loans are covered by one set of thresholds and rates.

 

The hierarchy in which compulsory repayments are applied to study and training loans is:

 

  • HELP
  • VSL
  • SFSS
  • SSL
  • ABSTUDY SSL
  • TSL

 

Note repayment income (RI) is taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amount, reportable super contributions and exempt foreign employment income.

 

Repayment income (RI) Repayment rate
Below $46,620 Nil
$46,620 – $53,826 1.0%
$53,827 – $57,055 2.0%
$57,056 – $60,479 2.5%
$60,480 – $64,108 3.0%
$64,109 – $67,954 3.5%
$67,955 – $72,031 4.0%
$72,032 – $76,354 4.5%
$76,355 – $80,935 5.0%
$80,936 – $85,792 5.5%
$85,793 – $90,939 6.0%
$90,940 – $96,396 6.5%
$96,397 – $102,179 7.0%
$102,180 – $108,309 7.5%
$108,310 – $114,707 8.0%
$114,708 – $121,698 8.5%
$121,699 – $128,999 9.0%
$129,000 – $136,739 9.5%
$136,740 and above 10%

Contact Expert Tax on 0449 952 855 or 1300 869 829 for further assistance.

 

 

Medicare levy reduction for low-income earners

 

Your Medicare levy is reduced if your taxable income is below a certain threshold. In some cases, you may not have to pay the levy at all.

 

The thresholds are higher for low-income earners, seniors, and pensioners. If your taxable income is above the thresholds, you may still qualify for a reduction based on your family taxable income.

 

In 2019–20, you do not have to pay the Medicare levy if you are single and your taxable income is equal to or less than $22,801 ($36,056 for seniors and pensioners entitled to the seniors and pensioners tax offset).

 

You will pay only part of the Medicare levy if you are single and your taxable income is between $22,801 and $28,501 ($36,056 and $45,069 for seniors and pensioners entitled to the seniors and pensioners tax offset).

 

You may still qualify for a reduction based on your family taxable income.

 

If you do not qualify for a reduction in the Medicare levy, you may still qualify for a Medicare levy exemption.

 

Contact Expert Tax on 0449 952 855 or 1300 869 829 for assistance on tax related matters.

 

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