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Extending and adjusting the Coronavirus supplement

Dawson & Partners • Aug 03, 2020

The Government is extending the payment period of its temporary Coronavirus Supplement from 25 September 2020 to 31 December 2020. The amount of the Coronavirus Supplement will be adjusted for this period to reflect the gradually improving economic conditions.

JobSeeker payment

The Government will continue to pay the Coronavirus Supplement to eligible income support recipients until 31 December 2020.

  • The Coronavirus Supplement will continue to be $550 per fortnight for payments up to and including the reporting period ending 24 September 2020.
  • From 25 September 2020 to 31 December 2020, the Supplement amount will be $250 per fortnight.

This supplement is paid in addition to the actual JobSeeker Payment.

Existing JobSeeker Payment recipients and new JobSeeker Payment recipients will be eligible for the Coronavirus Supplement up until 31 December 2020. The Government has not indicated whether it can extend this supplement beyond this date.

Eligibility criteria for the Coronavirus Supplement remains the same.

Changes to the JobKeeper Payment may make recipients of that payment eligible for the JobSeeker Payment.

Adjustments to the JobSeeker Payment income test – 25 September to 31 December

Personal Income test

The income free area for JobSeeker Payment recipients will increase from $106 per fortnight to $300 per fortnight. This means recipients may receive income up to $300 per fortnight without any reduction in JobSeeker Payment.

Under the income test, every dollar received over $300 per fortnight will reduce JobSeeker Payment by 60 cents. Currently the JobSeeker Payment is reduced by 50 cents for every dollar received between $106 and $250 per fortnight and by 60 cents thereafter.

This income test is applied to the JobSeeker Payment only. If you are eligible for any JobSeeker Payment, you will get the full Coronavirus Supplement.

Partner Income Test

The reduction rate under the Partner Income Test will increase from 25 cents to 27 cents. Partners of JobSeeker Payment recipients may receive up to $3,086.11 per fortnight or $80,238.89 per annum before the JobSeeker Payment cuts out. Note, this assumes the JobSeeker Payment recipient has personal income below the income free area.

Asset Test and Liquid Asset Waiting Period to apply from 25 September 2020

The Asset Test will apply from 25 September 2020. For example, single homeowners with assessable assets of $268,000 or more will not be eligible for JobSeeker Payment. Partnered homeowners may have up to $401,500 in combined assessable assets.

The Liquid Asset Waiting Period (LAWP) of up to 13 weeks will be reinstated and the Income Maintenance Period (IMP) will continue.

The Ordinary Waiting Period, Newly Arrived Resident's Waiting Period (NARWP) and the Seasonal Work Preclusion Period will continue to be waived until 31 December 2020.

Instant asset write-off thresholds for small businesses extended until 31 December 2020

Small businesses with aggregated annual turnover of less than $500 million may be eligible for an increased instant asset write-off on assets of up to the value of $150,000 from 12 March 2020 until 31 December 2020. The measure was set to finish on 30 June 2020, but the Government passed legislation to extend the measure until 31 December 2020.

The measure applies to new or second-hand assets first used, or installed ready for use, between 12 March 2020 until 31 December 2020 (inclusive). The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets.

The Government has also introduced a time limited 15-month acceleration of depreciation deductions for businesses with aggregated turnover below $500 million. Legislation to support this measure has already passed.

The deduction of 50% of the cost of an eligible assets on installation will be allowed, with existing depreciation rules applying to the balance of the asset's cost. Eligible assets are new assets acquired from 12 March 2020 and first used or installed by 30 June 2021. Second-hand assets, or buildings and other capital works are not eligible assets.

How can we help?

If you have any questions or would like further clarification in regards to any of the above initiatives, please feel free to contact us on 1300 885 761 .

Christmas 2022

07 Dec, 2022
Christmas 2022

Time is running out to apply for a Director Identification Number (director ID)

22 Nov, 2022
You may have heard about the new rules which require directors of Australian companies to obtain a Director Identification Number (director ID). It is a unique 15-digit identifier that directors apply for once and keep forever. The following provides some useful further information. As a director of my SMSF’s corporate trustee do I need a director ID? The new requirement to obtain a director ID applies to all directors of corporate trustees of an SMSF. The only exclusion applies to a director who has resigned from all director roles during the period 04 April 2021 to 30 November 2022 and has no intention to ever be appointed as a director or alternate director of an Australian or foreign company. How long do I have before I need to get my director ID? Individuals that were a director of any company prior to 1 November 2021 have until 30 November 2022 to get a director ID. This transitional period also applies to newly appointed directors of corporate trustees of an SMSF, provided they were an existing director, of a company, before 1 November 2021. Otherwise, first time directors are now required to have a director ID before they are appointed as director of any company. What is the fastest way to apply for a director ID? With 30 November 2022 fast approaching, we strongly encourage all directors to apply for their director ID now. The fastest way to apply for your director ID is online at abrs.gov.au/directorID . To access the director ID application online, you will use your myGovID to log in to ABRS (Australian Business Registry Services) online. This director ID demonstration video will show you step by step, how to apply for your director ID online. What to do if you do not have a MyGovID already? A myGovID is different to your myGov account. Your myGov account allows you to link to and access online services provided by the ATO, Centrelink, Medicare and more, while myGovID is an app that enables you to prove who you are and to log in to a range of government online services, including myGov. If you do not already have a myGovID you will need to set this up before you can apply for your director ID online. Refer to mygovid.gov.au/setup for more information on setting up a myGovID. You will need to choose your identity strength, noting that ‘standard’ identity strength is the minimum strength required for a director ID. What if I can’t set up myGovID online? Where you are experiencing difficulties setting up your myGovID, the ATO encourages you to contact them on 13 62 50. To speed up the phone application, please have your TFN ready as well as the information listed below, required to verify your identity. If you cannot apply online or over the phone, the ATO will provide you with a paper form to complete. This is the least preferred option and will require you to provide certified copies of your documents to verify your identity. Can we help you get your director ID? You must apply for your director ID yourself, so that the ATO can verify your identity. To verify your identity against your ATO records, once you have logged into ABRS online using myGovID, you'll need your tax file number, your residential address held by the ATO, and information from two of the following documents: bank account details (where your tax refunds or payments are made and received) an ATO notice of assessment a dividend statement a Centrelink payment summary a PAYG payment summary (this is different to your income statement or your PAYG instalment activity statement). How can we help? If you have any questions or would like further information about director IDs, please feel free to give us a call on 1300 885 761, so we can discuss your requirements in more detail. Although we are unable to apply for a director ID on your behalf, we would be more than happy to guide you through the process and where possible, source documents to help you verify your identity with the ATO.  For other information, resources, and timely updates relevant to your SMSF, please refer to the SMSF Association’s trustee education platform, SMSF Connect.

Superannuation Guarantee due date for payment – 28 October 2022

By Dawson & Partners • 23 Oct, 2022
All employers are required to pay and report super guarantee payments electronically to ensure they meet SuperStream requirements. With the introduction of SuperStream it is now easier for the ATO to monitor your payments to ensure they have all been paid on time. Super guarantee payments must be made by employers to their employees' complying funds by quarterly due dates, which are 28 days after the end of each quarter. The due dates for each quarter are as follows: 
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