Fuel tax credits rates indexation March 2021 BAS

Who can claim Fuel Tax credits?

You may be eligible to claim fuel tax credits for fuel purchased for use in your business. To be eligible you must:

  • Be registered for GST
  • Use the fuel for an eligible activity including but not limited to:
    • Use in heavy vehicles travelling on public roads if the vehicle has a gross vehicle mass (GVM) greater than 4.5 tonnes.
    • Use in business activities such as agriculture, forestry, mining, construction and manufacturing if the vehicle (including light vehicles) was travelling on private roads and off public roads.

Further details regarding eligible fuels and business activities can be found on the ATO website.

Indexation of rates:

The rates for fuel tax credits are now indexed bi-annually on 1 February and 1 August in line with the Consumer Price Index (CPI).

The indexed rates for the period from 1 February 2021 to 30 June 2021 are as follows:

  • Increase from 16.5 to 16.9 cents per litre for liquid fuels used in a heavy vehicle on public roads;
  • Increase from 42.3 to 42.7 cents per litre for liquid fuels in all other business uses;
  • Increase from 18.16 to 18.305 cents per litre for E85 (85% ethanol/15% petrol) in all business uses except heavy vehicles on public roads;
  • Increase from 13.8 to 13.9 cents per litre for liquefied petroleum gas (LPG) ; and
  • Increase from 29.0 to 29.3 cents per kilogram for compressed natural gas (CNG) and liquefied natural gas (LNG).

These changes will affect fuel tax credit calculations for March quarter Activity Statements.

If you claim less than $10,000 in fuel credits each year you can calculate your fuel tax credit using the rate that applies at the end of the BAS period.

The ATO fuel tax credit calculator can be found here.

Please contact us on 1300 885 761 for more information.  

All employers are now 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:  

Quarter

Period

Payment due date

1

1 July – 30 September

28 October

2

1 October – 31 December

28 January

3

1 January – 31 March

28 April

4

1 April – 30 June

28 July

 

When a due date falls on a weekend or public holiday, you can make the payment on the next working day.

If you miss the due date your payment will NOT be tax deductible.

Please note the above due dates in your calendar and ensure all superannuation guarantee payments are made on or before these dates. 

 

Next date for payment:

Period: 1 October 2020 – 31 December 2020

Payment due date: 28 January 2021

 

 

If you would like any further information or assistance with complying with your super guarantee obligations please contact us on 1300 885 761.

Update - ATO Scam Alerts

The Australian Taxation Office (ATO) is urging all Australians to keep their personal information secure and to report any suspicious activity immediately.

Latest scam alerts:-

Email scam: scammers are sending fake ATO emails about JobKeeper and backing business investment claims. The fake emails say ATO is investigating your claims. They ask you to provide valuable personal information, including copies of your driver's licence and Medicare card. Do not provide the information requested, and delete the email straight away.

Text message scam: scammers are sending scam text messages asking you to verify your myGov details with a link to log on to your myGov account. Don't click any links and don't provide the information requested.

Phone scam: scammers are contacting people by using technology to make it look like the calls originate from a legitimate ATO phone number and leaving voicemail messages threatening the recipients with arrest due to an unknown tax debt or suspected tax evasion. Do not return the call.

Tips on How to spot an ATO scam

The ATO will not:

  • be abusive or offensive to you
  • threaten you with immediate arrest
  • ask you to transfer money into an account with a BSB that is not held with the Reserve bank of Australia
  • request payment via unusual methods such as iTunes gift cards, bitcoin or other prepaid cards
  • stay on the phone with you while you go to the bank, post office or shops to make a payment
  • request personal security information such as your TFN or your bank details via email or SMS or social media sites
  • ask you for money up front in order to receive a refund or other payment
  • refuse to allow you to speak with a trusted advisor or your regular tax agent
  • present a phone number on caller ID
  • direct you to download files from the internet.

The ATO will:

  • provide you with a range of options for paying debts, which are all set out on the ATO website at ato.gov.au/howtopay
  • contact you by phone:
    • if you are in doubt about the authenticity of a call claiming to be from the ATO, you can call the ATO on 1800 008 540 to verify.  You will generally be aware of any debt before it is due for payment, but you can check with us first if required.
  • send emails and SMS asking you to take specific action such as:
    • provide additional information required to process a BAS or tax return lodged
    • provide additional information regarding an application that has been made
    • verify changes to an account
  • send general notifications and reminders via SMS or email
  • send promotional and informational SMS and emails.

More detail regarding ATO scam alerts can be found here.

If you have any concerns regarding correspondence from the ATO please contact us on 1300 885 761 or contact the ATO directly on 1800 008 540.

Younger Australians will be offered new incentives to fill a growing jobs gap in the regions as part of a budget package that aims to boost farm production to $100 billion within a decade.

To support the agricultural sector and young Australians affected by the economic impact of the coronavirus pandemic, the Government temporarily introduced a new pathway for achieving independence for the purposes of Youth Allowance (student) and ABSTUDY. It will allow young people who choose to work on farms, faster access to Youth Allowance and ABSTUDY.

The new measures seek to encourage young people to take farming jobs when the industry cannot recruit enough foreign workers during the pandemic

Under the new criteria, a person can be considered independent if they meet both the following:

  • earn $15,000 through employment in an agricultural industry between 30 November 2020 to 31 December 2021
  • have combined parental income under the parental income threshold of $160,000 per year plus $10,000 for each additional child.

This change is subject to the passage of legislation.

For more information about this measure, visit the Department of Social Services website (dss.gov.au), or contact us on 1300 885 761.

2020/21 Federal Budget Highlights

The Federal Treasurer, Josh Frydenberg, handed down the 2020/21 Federal Budget on Tuesday 6 October 2020.

The key changes that may impact you are set out below:

1.       Personal income tax

The changes that were due to apply from 1 July 2022 will now apply from 1 July 2020, comprising:

  • increasing the upper threshold of the 19% personal income tax bracket from $37,000 to $45,000;
  • increasing the upper threshold of the 32.5% personal income tax bracket from $90,000 to $120,000;
  • increasing the maximum Low Income Tax Offset (LITO) from $445 to $700.

2.       Businesses

  • From 1 July 2020, eligible businesses with an aggregated annual turnover of at least $10 million and less than $50 million will be able to immediately deduct certain start-up expenses and certain prepaid expenditure;
  • From 1 April 2021, eligible businesses will be exempt from FBT on car parking and multiple work-related portable electronic devices, such as phones or laptops, provided to employees;
  • Uncapped immediate write-off for depreciable assets
    • Businesses with an aggregated annual turnover of less than $5 billion will be able to claim an immediate deduction for the full (uncapped) cost of an eligible depreciable asset, in the year the asset is first used or is installed ready for use:
      • The asset was acquired from 7:30pm AEDT on 6 October 2020.
      • The asset was first used or installed ready for use by 30 June 2022.
      • The asset is a new depreciable asset or is the cost of an improvement to an existing eligible asset, unless the business has annual turnover less than $50 million, in which case the asset can be second hand.
    • As is currently legislated, businesses with aggregated annual turnover between $50 million and $500 million can still deduct the cost of eligible second-hand assets costing less than $150,000 that are purchased from 2 April 2019 and first used or installed ready for use between 12 March 2020 and 31 December 2020 under the enhanced instant asset write-off. The Government has announced that it will extend the period by 6 months, until 30 June 2021.
    • Small businesses (with aggregated annual turnover of less than $10 million) can deduct the balance of their simplified depreciation pool at the end of the income year while full expensing applies (i.e., up to 30 June 2022).
  • Introduction of a JobMaker Hiring Credit for each additional employee hired aged 16 to 29 years old ($200/week) or 30 to 35 years old ($100/week).

3.       Superannuation

From 1 July 2021, your existing superannuation account will follow you to avoid the creation of a new account when you change employment.

Please feel free to contact us on 1300 885 761 if you have any questions or would like further information in regards to any of the above changes.

All employers are now 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:  

Quarter

Period

Payment due date

1

1 July – 30 September

28 October

2

1 October – 31 December

28 January

3

1 January – 31 March

28 April

4

1 April – 30 June

28 July

 

When a due date falls on a weekend or public holiday, you can make the payment on the next working day.

If you miss the due date your payment will NOT be tax deductible.

Please note the above due dates in your calendar and ensure all superannuation guarantee payments are made on or before these dates. 

Next date for payment:

Period: 1 July 2020 – 30 September 2020

Payment due date: 28 October 2020

 

If you would like any further information or assistance with complying with your super guarantee obligations please contact us on 1300 885 761.

Drought Community Support Initiative - Round 2

The Drought Community Support Initiative (DCSI) is an Australian Government funded project that provides a one-off payment to farmers, farm workers and farm suppliers/contractors who have been financially impacted by drought.

DCSI Round 2 is a second round of funding being provided for immediate financial assistance of up to $3000 per eligible household, including sale yard and abattoir workers.

Eligibility:

  • 18 years old or older
  • An Australian citizen or permanent resident
  • Living and/or working in an eligible Local Government Area (LGA)

Payments may cover numerous expenses such as groceries, vehicle maintenance, energy & utility bills, health & medical expenses, for example.

How to apply:

Round 2 funding is available through The Salvation Army and St Vincent de Paul Society. Each eligible LGA has been allocated to one of these agencies. Only one DCSI (Round 2) payment is allowed per household from one of the delivery organisations.

How we can help?

If you would like any further information or assistance in regards to Drought Community Support Initiative, please contact us on 1300 885 761.

Running your business from home?

If your home is your primary place of business, you may be able to claim the business portion of some expenses. You can't claim deductions for private costs.

Examples where your home is considered a place of business include:

  • a small business operator whose main office is in their home
  • a tradesperson or craftsperson who has their workshop at home
  • a doctor or dentist who has their surgery or consulting room at home.

You may be able to calculate your home-based business running expenses using:

  • a fixed rate of 52 cents an hour for each hour you operate your business from home
    • This covers heating, cooling, lighting, cleaning and the depreciation of furniture and furnishings.
    • You will need to separately calculate phone and internet expenses, consumables and certain depreciation expenses.
  • the temporary working from home shortcut method of 80 cents an hours
    • This can be used by individuals running home-based businesses from 1 March 2020 until 30 September 2020.
    • This covers all the expenses normally included under the 52 cents rate and all additional deductible running expenses.
  • any other reasonable method.

You may also be able to claim occupancy expenses, like rent, mortgage interest, water rates, land taxes and house insurance premiums, in certain circumstances. However, if you earn personal services income (PSI), you may not be able to claim a deduction for occupancy expenses.

Exclude your private living costs and keep records to show how you calculated your expenses.

You can't claim the same expenses two different ways. The temporary working from home shortcut method is all-inclusive.

For example, you can't claim the full cost of purchasing a photocopier using instant asset write-off and also claim with the home shortcut method.

If you would like any further information or assistance in regards to Home Business Expenses, please feel free to contact us on 1300 885 761.

Did you know that if your business has been affected by the coronavirus (COVID-19) and is enrolled for the JobKeeper Payment, you may be able to claim payments for an eligible business participant?

An eligible business participant is an individual who is not an employee of your business, but who is actively engaged in its operation.

For example, they might manage the sale of your business's goods or exercise control over your business strategy.

To be eligible for JobKeeper payments, the business participant must be an individual who is:

  • a sole trader (and is not bankrupt)
  • a director of a company
  • a shareholder in a company
  • a partner of a partnership (but not through an interposed entity, for example an individual trustee of a trust that is a partner in a partnership)
  • an adult beneficiary of a trust (who is not the trustee).

The individual must also meet other criteria, including:

  • having been actively engaged in the business at 1 March 2020
  • at least 18 years old. If you are 16 or 17 you can also qualify if you are independent or not studying full time
  • an Australian resident (under section 7 of the Social Security Act 1991), or a resident for income tax purposes and the holder of a Special Category (Subclass 444) visa
  • not receiving government parental leave or Dad and Partner Pay
  • not totally incapacitated for work and receiving payments under an Australian workers' compensation law in respect of your total incapacity to work
  • not an employee (other than a casual employee) of another entity.

You can only nominate one eligible business participant, even if several people meet the criteria.

Unlike employees, the key date for assessing business participants' eligibility is still 1 March 2020.

As of 20 July 2020, approved providers of child care services can't claim JobKeeper payments for business participants.

The individual must be engaged in the fortnight that the JobKeeper payment is claimed. For instance, if your eligible business participant is on leave, you cannot claim JobKeeper payments for JobKeeper fortnights that fall in that time period.

How can we help?

If you have any questions or would like further clarification in regards to JobKeeper payment for eligible business participants, please feel free to contact us on 1300 885 761.

Changes to JobKeeper eligibility

On 7 August 2020, the government announced further changes to the JobKeeper scheme, including easing of rules to determine employee eligibility and to make it easier for employers to qualify for the JobKeeper extension. From 3 August 2020 the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension.

Eligible employees:

  • are currently employed by an eligible employer (including if you were stood down and rehired)
  • were for the eligible employer (or another entity in their wholly-owned group) either:
    • a full-time, part-time or fixed-term employee at 1 July 2020; or
    • a long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 and not a permanent employee of any other employer.
  • were aged 18 years or older at 1 July 2020 (if you were 16 or 17 you can also qualify if you are independent or not undertaking full time study).
  • were either:
    • an Australian resident (within the meaning of the Social Security Act 1991); or
    • an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at 1 July 2020.
  • were not in receipt of any of these payments during the JobKeeper fortnight:
    • government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010; or
    • a payment in accordance with Australian workers compensation law for an individual's total incapacity for work.

Changes to payment rate:

From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:

  • $1,200 per fortnight for all eligible employees who were working in the business or not-for-profit 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 for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and
  • $750 per fortnight for other eligible employees and business participants.

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:

  • $1,000 per fortnight for all eligible employees who were working in the business or not-for-profit 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 for business participants who were actively engaged in the business for 20 hours or more per week on average; and
  • $650 per fortnight for other eligible employees and business participants.

Additional turnover tests

In order to be eligible for the JobKeeper Payment after 27 September 2020, businesses and not-for-profits will have to meet a further decline in turnover test for each of the two periods' extension, as well as meeting the other existing eligibility requirements for the JobKeeper Payment.

In order to be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen in the September quarter 2020 (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).

In order to be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, businesses and not-for-profits will again need to demonstrate that their actual GST turnover has significantly fallen in the December 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019).

How can we help?

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