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On the 6th of December 2022, the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Act) received Royal Assent and became law. Some of the changes have already come into effect, whilst others will be rolled out over the next 12 months. Employers should start planning and preparing for the impact of these significant reforms. See below a summary of some of the legislation changes to be implemented in 2023. Prohibiting Pay Secrecy – Commencement Date 7th December 2022 The Act introduces a workplace right for employees to disclose (or not disclose) information about their remuneration and ask any other employee (whether employed by the same or a different employer) about their remuneration. The Act invalidates any existing pay secrecy terms in contracts of employment. Given that it is a workplace right, employees will be protected from being adversely treated concerning their exercise of this right. For example, an employer could not now dismiss someone for discussing their pay with a colleague. This workplace right is partly intended to address the use of pay secrecy to conceal gender pay gaps, which means employees are now free, if they choose, to discuss their pay with others without fear of adverse action from their employer. What Does This Mean for Employers? This change means employers can no longer include pay secrecy clauses in a worker’s employment contract, and no employment agreement should have pay secrecy clauses. This prohibition is enforceable by the Fair Work Ombudsman (FWO), which has the power to initiate court proceedings for any alleged breaches of this new prohibition, which could result in penalties to the employer. Job Ads – Commencement Date 7th January 2023 The new laws also include prohibiting job ads with pay rates lower than the legal minimum entitlements that apply to the job. The act also amends the Fair Work Act to prohibit employers from advertising employment at a rate of pay that would contravene the Fair Work Act or a fair work instrument. Before advertising for a position, businesses should ensure that the rate of pay and other workplace conditions offered comply with the Fair Work Act or other fair work instruments, including Modern Awards and Enterprise Agreements. These requirements apply from 7th January 2023, regardless of when the ad was initially posted. Flexible Work – Commencement Date 6th June 2023 Under the Fair Work Act, employees can request flexible working arrangements in certain circumstances (such as where they are a carer or have a disability). The personal circumstances giving rise to a right to request such an arrangement have been expanded to include employees who are pregnant or where they have experienced family and domestic violence. An employer can now only refuse such a request where the request has been discussed with the employee, and the employer has genuinely tried to reach an agreement. If the refusal is on reasonable business grounds and the employer has provided the employee with detailed reasons for the refusal in writing. If an employer and the employee have discussed the request and agreed to make changes to the employee’s working arrangements that are different to what the employee requested, the employer needs to confirm these agreed changes in writing within 21 days of the request. We may see more orders to increase wages in low-paid industries with high proportions of female workers, e.g. aged care, childcare, health, etc. Fixed Terms Contracts – Commencement Date 6th December 2023 (unless the Australian Government sets an earlier date) One of the fundamental changes arising from the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 relates to changes to fixed-term and outer-limit (also known as maximum-term) contracts. Almost one in three workers in Australia are in insecure work arrangements, which limit their ability to bargain for better wages and security. A fixed-term contract is where employment is offered to a person for a specific period. An outer-limit contract is where a contract has an end date, but the employer has the right to terminate the contract before that date. From the 6th of December 2023, employers will have to give employees they’re engaging on new fixed term contracts a Fixed Term Contract Information Statement. This statement will be available on the Fair Work Ombudsman website before then. The Act prohibits using fixed term contracts for a period greater than 2 years (including renewals). In addition, fixed term contracts cannot be extended more than once. An employer must also provide an employee who will be engaged on a fixed term basis with a copy of the Fixed Term Contract Information Statement (which the Fair Work Ombudsman has been tasked to prepare). Gender Equality The Gender Pay Gap in Australia has refused to close and has recently gotten worse, with women earning $472 less than men on average. Workplaces with collective bargaining can deliver higher wages for women. This Bill will make it easier to bargain, including by allowing bargaining over measures to reduce the pay gap for the first time and allowing women to negotiate across workplaces, particularly in industries where their work has been undervalued. The Bill will also strengthen the equal pay laws in the Fair Work Act by:
Respect at Work Bill The Respect at Work legislation introduces two critical changes to the law. Positive duty to eliminate sexual harassment and discrimination The new legislation places a positive responsibility on employers to implement measures to eliminate, as far as possible, sex discrimination and sexual harassment. This duty will not be enforceable until 12 months after the Bill receives “royal assent” (i.e. the date the Bill achieves final approval – likely to be in the next few days – so not before December 2023). The significance of this change is that whereas the law currently “bites” when there is an incident of sexual harassment in the workplace (and holds employers liable if it is found that they did not do all they reasonably could to prevent it from occurring), under these new duties, an employer will have breached their responsibility (and can be subject to financial penalties) even if no sexual harassment has occurred. Regulators will be able to assess whether the employer is currently taking active steps to eliminate any potential sexual harassment and discrimination in the workforce, even before an incident has occurred. Source: Employment Innovations: Huge Changes to Employment Law on the Way Sexual Harassment From 6th March 2023, the Fair Work Act will prohibit sexual harassment in connection with work, which includes in the workplace. The protection won’t apply to sexual harassment of a worker that starts before 6th March 2023. Employers will now be liable for sexual harassment in their workplaces which non-employee workers and contractors perpetrate. Employers will be liable for sexual harassment which occurs in their workplaces unless they can demonstrate they took “all reasonable steps” to prevent it. The FWC will now have the power to order compensation to be payable to victims of sexual harassment. These changes will take effect in March 2023. Employment Innovations will have materials and resources to assist with these matters available shortly. 
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 Be Business Ready for a Cyber Incident In its annual cyber threat report, ACSC assessed that medium sized businesses had the highest average loss per cybercrime where a financial loss occurred. The rise in the average cost per cyber incident is more than $39,000 for small businesses, $88,000 for medium businesses and $62,000 for large business. Source: ACSC Annual Cyber Threat Report, July 2021 to June 2022 Australian Cyber Security Centre (ACSC) has launched a free online tool to help prepare small and medium enterprises (SMEs) in the event of a cyber incident. Exercise in a Box guides users through cyber security exercises and includes everything you need to plan, set up and deliver the exercises to your organisation. It also includes a post activity report function that allows you to capture any findings you make during the exercise and use these findings to make meaningful changes to your cyber security posture. Exercises start by introducing an event, which could be for example an organisation’s IT being attacked, these events are referred to as ‘injects’. Subsequently, the exercise continues by asking a set of questions relating to the ‘inject’. Exercise in a Box does not require users to enter a simple answer to these questions; they are intentionally worded in order to solicit discussion. One will often find there is no simple answer. The online tool will keep evolving to ensure it stays current, relevant, and engaging.  Discussion Based Exercises Think about what aspects of cyber threat management you would like to explore. These exercises help identify cyber security practices that can be employed at a low cost and provide a solid foundation for cyber security management.
A simulation exercise mimicking a cyber threat present on an organisation’s network.  ASBFEO provides assistance to small business and family enterprises and offers a way to provide their views on policy and programs to government. ASBFEO also assists and advocates for small businesses and family enterprises and provides access to dispute resolution services to assist businesses to resolve disputes. Disputes & Assistance Problems arise every day between businesses, their customers, suppliers and employees. Most of them are dealt with quickly and efficiently through common sense, but sometimes they turn into a dispute which needs further understanding to resolve it. The ASBEFO Assistance Team works with a broad range of businesses to provide one-to-one assistance for business disputes, including referral to government support and arranging alternative dispute resolution. In general, there are five steps to dispute resolution:  If you require further assistance, the Australian Small Business and Family Enterprise Ombudsman Information Line can provide information and assistance, including helping you to identify the most appropriate service to resolve your dispute. You can contact the Information Line on 1300 650 460 or see ASBFEO – Disputes Assistance
Policy & Advocacy ASBFEO understand the challenges facing small and family business. Their Advocacy Team undertakes a number of different activities to advocate for small businesses and family enterprises to improve policies affecting them.
Resources The Advocacy Team works with the Assistance Team to ensure that Australia is the best place to start, grow and transform a small business and family enterprise. They provide practical tips on handling everyday worries such as cash flow, staff concerns or paying suppliers, as well as mental health resources such as the NewAccess for Small Business Owners Program. ASBFEO work closely with industry peers and networks to achieve better outcomes for small business and family enterprises. At ASBFEO, their role is to support small businesses and family enterprises to enable them to grow and thrive. They provide resources to help you solve many problems. See link ASBFEO –Resources & Tools Centre  The Vital Role Bookkeepers Play in Helping Business
Bookkeeping plays a vital role in small business operations, but how much business owners know about the profession? What do Bookkeepers do, and what are some of the benefits of bookkeeping? Bookkeeping is more than just keeping the financial records up to date and accurate. It is about understanding business process and efficiency. Bookkeepers have evolved to become so much more. Bookkeepers are now payroll officers, software implementation and integration managers, strategic analysts, and business consultants. A Professional Bookkeeper has the expertise to assist small business in a way that can often make a massive difference to the overall capabilities of that business. Most of all, a Bookkeeper can help a business owner implement and maintain the best business processes leading to a better, up-to-date, and timely understanding of the business’s operational and financial health, allowing the business owner to make smarter decisions. According to recent research performed by Intuit Quickbooks Back to Business, Bookkeepers have played a major role as a positive influence on confidence levels for small business in Australia, with key findings from the research including 70% saying their accountant or Bookkeeper helped them through the pandemic. What Makes a Bookkeeper Exceptional? Organised, Efficient & Experienced A good Bookkeeper should understand the industry a business is in, the business process, and the requirements of a business. They make sure that processes are streamlined to provide business owners with reports and assists small business owners to meet the requirements and deadlines for compliance. A Professional Bookkeeper should be connected to a professional association providing support, resources, and accreditation. They have a commitment to continual education, learning and development of skills. Ethical & Trustworthy A Bookkeeper has a trusted and respected role. Ethics and trustworthiness are paramount. The business owner and the Bookkeeper should feel comfortable with each other to build a relationship that is founded on trust. Bookkeepers should only ever be honest and thorough in their dealings. For instance members of the ICB are not allowed to engage in dishonest activities even if they’re unaware, which means due diligence in taking on clients is of the utmost importance. A Bookkeeper has a duty to do the right thing and take steps to put things right when something goes wrong (which does happen). The bottom line is that the bookkeeper is honest and accurate. Everything else will follow from working to this fundamental attitude. Training & Accreditation Every Bookkeeper should have some sort of formal bookkeeping or accounting training and if a contract Bookkeeper be a registered BAS Agent. A registered BAS Agent means that the Tax Practitioners Board are satisfied that the Bookkeeper has the required skills, qualifications, and a minimum amount of experience to correctly account for GST and prepare your BAS according to legislation. Latest Technical Knowledge Due to an increase in the reliance on digital technologies a Bookkeeper should have the latest software knowledge. According to the Intuit Quickbooks Back to Business research, among those small business who have implemented new technologies or plan to do so, the most common focuses are financial processes (43%), making the digitisation of bookkeeping a priority for many small businesses in Australia. Source: Accountants Daily – 1 in 5 SMEs flag accountants and bookkeepers as key to business survival Communication Skills Bookkeepers are a community that helps, and Professional Bookkeepers need to have fundamental characteristics in order to be successful, established, and compliant. Excellent communication skills are necessary for a smooth flow of interaction within the business. Good communication with the business owner means a better flow of deadlines and requirements to ensure the business meets their reporting obligations. A good Bookkeeper asks the relevant questions. They will also share ideas with the business owner on matters of financial planning, methods of increasing revenue, budgeting, cash flow, and cost-saving strategies they can adopt to improve the performance of the business. Benefits for Business Owners We know what a Bookkeeper does and what their day-to-day responsibilities look like. But how do these job duties translate as benefits for a business? Great bookkeeping goes beyond refined record keeping and balanced books.
Bookkeeping is integrated business system management: It is working with the business – and the best technology-based solutions that apply to the business – to improve their business efficiency, which leads to achieving the other purposes of bookkeeping; effective business process, technology based efficient solutions, efficient and streamlined record keeping, efficient and streamlined invoice generation, and purchase processing. In having a Professional Bookkeeper on the team, a small business gains an expert, allowing the business owner to focus on what they do best. Having an expert means the business wins!  You May Be Thinking… What’s the Difference?
Firstly, not all Bookkeepers need to become BAS Agents! A Bookkeeper can also be a BAS Agent! However, if a business requires a contract Bookkeeper to provide a BAS service, they must be a registered BAS Agent. It is only a BAS Agent that can interact with the ATO and your obligations to the ATO, on your behalf, unless they are your employee. A Bookkeeper and BAS Agent play an integral part in any business. They are engaged with an expectation to keep or assist in keeping accurate and up to date financial records for every month, quarter, and at the end of the financial year. Thankfully, we are both! However, it is imperative to note there is a distinct line between the two roles and responsibilities as detailed below. Responsibilities of a Bookkeeper Bookkeeping can look different from business to business, however the most common tasks that a Bookkeeper will generally undertake include:
A registered BAS Agent must have the required qualifications and experience as outlined in the Tax Agent Services Regulations 2009 (TASR). Refer to the Tax Practitioners Board (TPB). BAS services / Advanced bookkeeping services include but are not limited to:
Contracted Bookkeepers providing BAS services for a fee, must be registered BAS Agents. Additionally, undertake continuing professional education programs throughout each year. Summary Boox the Bookkeeping Experts are a registered BAS Agent. We can perform all duties and responsibilities that your business needs to fulfil your accounting needs. Contact us for more information on how we can help you and your business! - [email protected]  10% Super Guarantee (SG) Rate applies to all payroll “paid” on or after 1st July so Payroll Software setup will have to be changed before any pay is processed to ensure the 10% rate is applied properly.
Ensure that all payroll systems are up-to-date and comply with Single Touch Payroll (STP) & Superannuation requirements: these changes may not happen automatically so confirm with your Bookkeeper or BAS Agent on these changes have been updated. When processing a payroll be mindful the latest 10% rate is applied to Ordinary Times Earnings amounts paid after 1st July 2021, irrespective of when those amounts accrued. If a payroll is paid after the 30th of June 2021 then the whole amount for that period (even if some of the payroll period is in the month of June) will incur the 10% super increase. Do not use both rates. When Amounts are Accrued The 9.5% rate applies to Ordinary Time Earnings salary paid up to 30th June 2021. The new 10% rate will apply to OTE/salary amounts paid from 1st July 2021. Super Guarantee Contributions Act Section 19 stipulates that SG is payable on payment date rather than earned date. Quarterly salary or wages base, for an employer in respect of an employee, for a quarter means the sum of:
 Being a small business owner is a unique experience which can involve stress and pressure coming from many directions. If you aren’t sleeping, struggling to concentrate, or are just feeling overwhelmed by day-to-day challenges, consider NewAccess for Small Business Owners. Developed by Beyond Blue, NewAccess for Small Business Owners is a free mental health coaching program offering flexible phone and video call support options for small business owners so they can manage stress and improve their mental wellbeing. Coaches of the NewAccess for Small Business Owners program all have a small business background, allowing them to better understand the challenges small business owners may face. No doctor’s referral is required. “One great thing about NewAccess was the accessibility. I was under so much stress financially and it was free.” — NewAccess participantTo find out more or enquire today visit beyondblue.org.au/newaccess-SBO, or if you know a small business owner, let them know about the new program. 
  Most businesses will need to lodge a tax return during end of financial year. A tax return is basically a summary of your income and expenses for the financial year. See our end of financial year calendar for key dates.
Self-employed and sole traders need to lodge an individual tax return at year end. Your business income and expenses go in your individual tax return using a separate business schedule. Individual tax returns can be submitted online via through myTax (accessed through myGov), by paper or through a registered tax agent. If you’re an Australian resident for tax purposes, you have to declare all income you earned both in Australia and internationally on your Australian tax return. Companies lodge a separate company tax return each year. You must also lodge an individual tax return for income you earn via wages, shares and dividends from the company. Company tax returns can be lodged using SBR enabled software, through a registered tax agent or by paper. If you are unsure what you need to do. Contact us - [email protected]  The ATO’s small business independent review service will be offered permanently as a dispute resolution option for eligible small businesses with a turnover less than $10 million.
It provides small businesses an additional opportunity to resolve a dispute with the ATO where they disagree with the audit position related to most income tax and indirect tax obligations. The transition of this service from pilot to business as usual is consistent with recent recommendations made by the Australian Small Business and Family Enterprise Ombudsman. Eligible small businesses who have an audit in progress will be offered the opportunity to request an independent review. All independent reviews are completed by an ATO officer who has not previously been involved in the audit, and is from a separate area of the ATO. The review is completed before any assessment, or amended assessment, is issued. Source: ATO – Independent review for small businesses with turnover less than $10 million  The minimum percentage employers are required to pay is set to increase over time, with the next increase to 10% due on 1st July 2021. This should be considered in part, a wage increase.
What This Means for Small Business The proportion of wages that employers must contribute to their workers’ superannuation is legislated to increase half a percent a year before reaching a final value of 12% by 2025. The superannuation guarantee is paid in addition to base salary. For example, if an employee’s contract is $60,000 plus super, as an employer you will pay a gross income of $60,000 to the employee (less personal income tax withheld) and then make an additional $5,700 superannuation guarantee (or 9.5% of the base salary) to the superannuation fund. This worker’s total income (salary plus super contribution) is $65,700. In this instance when the superannuation guarantee increases to 10%, an employee’s base income does not change. The employer will be required to make an additional $300 contribution to the employee’s superannuation fund (a total of $6,000). The worker’s total income is now $66,000. Further to this, an employee on a minimum award wage cannot be paid less than the minimum rate already being paid, so therefore the SG at 10% is to be calculated on top of and without reduction to the original base amount. Another factor to consider is if the employment agreement or other industrial relations instrument permits it, the components of an employee’s salary package can be altered to increase the SG to 10% and reduce the gross pay (before tax). It would be recommended reviewing the appropriate agreements and seek HR advice. When the compulsory SG contribution level is increased, a business will need to adjust their payroll systems to pay the increased amount of super. If they don’t pay the correct rate of SG into employees’ super accounts by the quarterly due date, they may have to pay the Superannuation Guarantee Charge (SGC). Manage Cash Flow With the increase in compulsory super contributions coming out of the same business budget as wages, and all other on-costs such as workers compensation, payroll tax, PAYG and superannuation, businesses need to plan ahead to ensure they are able to afford the ongoing costs of superannuation increases? This pending increase – and all future increases – need to be built into a business budget as to be considered part of wage increases over time. Best practice is that it is better to overestimate than underestimate. Accurate and up-to-date financial records will help a business manage cash flow. By regularly reviewing your business’s performance, the business owner, Bookkeeper, and Tax Agent can address financial problems immediately. Assess the total employment costs of the business and add a percentage on top of the total costs to cover not just the rise in superannuation, but also any miscellaneous expenses and unforeseen blow-outs. Every employer’s obligation to pay superannuation will increase as of 1st July 2021. This is an increased cost to business that must be considered for cashflow and budgeting purposes.  Changes for Employee Superannuation OptionsFrom the 1st of January 2021 the law relating to employees and their choice of superannuation fund has changed.
New workplace determinations and enterprise agreements made on or after this date must now offer employees the right to choose the super fund to which you pay their compulsory super contributions. Once a new determination or agreement is in place, an employer needs to offer choice of super fund to:
Alternatively, employers can give their employee a Superannuation (super) standard choice form to complete. An employer must then pay the employee’s compulsory super to their nominated fund. If an employee doesn’t nominate a fund, an employer can continue to pay an employee’s super to the same fund previously contributed to, or into a default fund. Source: ATO – Employees now have more super choice Note: This is not the same as the legislation implemented on the 1st of July 2005, where the primary objective was to make it law to give employees the right to choose which superannuation fund will receive their employer superannuation contributions. This change is in regard to agreements made at an enterprise level between employers and employees and their union, about terms and conditions of employment. What is An Enterprise Agreement?An enterprise agreement is between one or more national system employers and their employees, as specified in the agreement. Enterprise agreements are negotiated by the parties through collective bargaining in good faith, primarily at the enterprise level. Under the Fair Work Act 2009, an enterprise can mean any kind of business, activity, project or undertaking. Enterprise agreements made on or after 1st January 2021 need to provide employees with a choice of superannuation fund. Any restrictions placed on employees’ choice of superannuation fund in enterprise agreements made on or after 1st January 2021 are not enforceable. Failure to pay superannuation into an employee’s choice of superannuation fund may result in employers having to pay superannuation charges. Source: FWO – Enterprise bargaining  The New SME Recovery Loan Scheme will Begin as of 1st April 2021 through to 31st December 2021.With the first federal government’s SME Loan Guarantee Scheme helping over 35,000 expanding the scheme aims to support more businesses affected by the pandemic and boost the economy.
The government will now accept a higher responsibility of the guarantee, moving from a 50/50 backing with banks to the Government providing the banks with guarantee 80% of the loan. The banks will still assess the credit worthiness of applicants. Understanding the Eligibility CriteriaA business is eligible for the SME Recovery Loan Scheme if it meets the following conditions:
If your business has previously accessed a loan under the SME Guarantee Schemes you are still eligible to apply for this new extended scheme. What are The Loan Details?The loans are up to $5 million in total and can be either secured or unsecured, and for a repayment period of up to 10 years. Lenders are also able to offer a repayment holiday period of up to 24 months. The interest rate offered is determined by each lender and will generally be capped at 7.5%. If eligible, your business can use the loan for a number of purposes including:
The process is as follows:
Why Apply for the Loan Scheme?Some sectors still remain under pressure. For those businesses, the new scheme will provide targeted support and will also help to close the funding gap, giving businesses more time to recover. Participating banks are also offering loans, including overdrafts, at very low interest rates, to help bridge cash flow gaps. The Australian Banking Association provides some detail on participating banks: The Australian Banking Association – The Business Relief Package Contact us for more information - email: [email protected]  From 1st January 2021, eligible businesses experiencing financial distress can access a new, simplified debt restructuring process that allows them to restructure their existing debts while remaining in control of their business.
The reforms are intended to reduce the cost of external administration for small businesses and the compliance burden for insolvency practitioners, thereby assisting more businesses to remain viable or increasing returns to creditors and employees in situations where they are not salvageable. The process allows financially distressed small businesses to access a single, streamlined process to restructure their debts, while allowing the owners to remain in control of their business. This will support more small businesses to survive, meaning better outcomes for businesses, creditors, employees, and the economy. To access this relief, a business can declare intention to access the restructuring process by publishing the declaration on the published notices website from 1st January 2021. A company’s period of temporary restructuring relief begins on the day the declaration is published. A business will also need to notify ASIC within 5 business days that they have made this declaration. The form for doing this is available on the ASIC website from 1st January 2021. The ability to declare intention to access the restructuring process is available until 31st March 2021. Treasury have released a comprehensive fact sheet explaining the process of application and eligibility. If you want to know more about Insolvency Reform, contact us at Boox the Bookkeeping Experts - [email protected]  With the current focus on a change in tax record-keeping obligations to encompass all things digital plus the need to businesses to adapt to a new era in the way they operate, going digital is more important than ever.
The virtual world that we’re currently living in doesn’t allow for the same face-to-face interaction that many of us have become accustomed to and there is a concern for many businesses that this inadvertent transformation in the way business has traditionally operated will mean they have already fallen behind. It is not too late to get started! The future of business is digital and small business needs to pivot away from traditional practices and realise success is now dependant on operating via digital channels. The first stepThe first step to going digital is to understand how it can benefit a business. The benefits of digital mainly come from the following sources:
Embracing new digital technologies can save time, help find new customers and assist businesses to become more efficient. How to prepare your business to be digitally readyThere are several tools you can use to convert to a digital platform. Business.gov.au have developed a digital transformation guide to understand the benefits of going digital and what that means for small business. The Australian Small Business and Family Enterprise Ombudsman (ASFBEO) have also developed advice on helping small business to digitise. Boox the Bookkeeping Experts are always here to help and answer any questions. Contact us for more information - [email protected] The ATO has issued a comprehensive set of guides and factsheets to fully explain the JobMaker Scheme.Employers can claim JobMaker Hiring Credit payments to help with the cost of hiring additional employees. For more information ATO JobMaker User Guide.   News from our Support Team
Over the next couple of months, we have a number of public holidays coming up. So, how do you treat these in JobKeeper? Public holidays (extract from Fair Work Ombudsman) Public holiday pay needs to be included when calculating an employee’s usual pay if the employee:
Employees who are stood down without pay by their employer under the Fair Work Act are still entitled to be paid for public holidays that fall during the stand down period. This applies if the employee would normally have ordinary hours of work falling on the day of the public holiday. Example from Fair Work Ombudsman Example: Public holiday during stand down Shashi is a full-time employee who normally works Monday to Friday at Sheepish Shoes in Victoria. The business is a qualifying employer receiving JobKeeper payments from the ATO for Shashi. Sheepish Shoes gives Shashi a JobKeeper enabling stand down direction to work no hours from 1 June 2020 to 15 June 2020. Monday, 8 June 2020 is a public holiday in Victoria (Queen’s Birthday). If Shashi worked as normal, he’d be entitled to 7.5 hours off work (his normal hours on Mondays) without loss of pay. As Shashi is entitled to be away from work on the public holiday, the JobKeeper enabling stand down direction doesn’t apply to him on this day. This means Sheepish Shoes has to pay Shashi at his base pay rate for 7.5 hours (his normal Monday hours). When calculating how much it needs to pay Shashi for the fortnight, Sheepish Shoes needs to include the amount Shashi is entitled to be paid for the public holiday. They must pay Shashi either the JobKeeper payment amount or the amount they would normally pay Shashi for the public holiday, whichever is higher. Sheepish Shoes needs to pay Shashi an amount equal to the JobKeeper payment for this fortnight, because it’s higher than the amount Shashi would be paid for the public holiday. Bookkeeping for Public Holidays and JobKeeper The employee is entitled to the normal amount they would have been paid for the Public Holiday, even if they are subject to a standdown provision. Then consider the JobKeeper fortnight total amount being paid. The employer must pay the greater of:
Contact us if you have any questions - phone: 07 4774 3266 or email: [email protected]  JobKeeper 2.0
Less employers, less employees, lower rates and two different tiers. And Fair Work JobKeeper discretions continue (for some). Which Employers? If the business currently receiving JK experiences an ongoing decline in actual GST Turnover of 30% (50% large, 15% NFP). Or A business is allowed to enter JK if they meet all eligibility requirements including decline in turnover. Noting it continues to include Eligible Business Participants (EBPs) specifically including the self-employed. “Ongoing actual decline in turnover” An assessment of the decline in actual GST Turnover results for the quarter ended 30th September 2020 will mean an employer is eligible for JK for October to December, and a decline in turnover for the quarter ended 31st December 2020 will mean eligibility for JK for January to March 2021. “Actual GST Turnover” is the GST exclusive taxable value of supplies made during the period (GST & FRE but not Input Taxed). We do not yet have confirmation of cash vs accrual or whether it is the same method as you report JK now. Note: JK 2.0 does not require you to be GST registered and JK does not require you to lodge BAS or lodge BAS quarterly. Currently the sale of assets is included in the GST turnover calculation. Alternative tests may be allowed by the ATO. Refer to the existing alternate tests. Timing issue: Employers may have to pay staff immediately after 28th September before being able to assess the decline in actual turnover for the quarter ended 30th September. Impact: Employers who did not decline 30% in their ACTUAL GST turnover for the September quarter will cease JK as from 28th September. It is a QUARTERLY test of actual turnover this year compared to same quarter last year. How Much JobKeeper? Employees who work 20 hours or more per week. In the four weeks of pay periods before 1st March 2020 (the time period is still in discussion). Employees working for 20 hours or more per week on average and EBPs actively engaged in the business for 20 hours or more per week on average during February:
Employees who work less than 20 hours per week in the 4 weeks before 1st March 2020:
Employers will nominate which payment rate they are claiming for each employee or EBP. There will be “alternate tests” to assess hours where hours worked in February 2020 were not “usual”. Actual GST Turnover
Fair Work JobKeeper Directions The proposed law is before Parliament as of 31st August 2020 - it is not final yet! Then the rules will need to be issued by the Treasurer, and the Fair Work Ombudsman (FWO) will need to issue their guidance. The proposal is: To extend the Fair Work JobKeeper Directions until 28th March 2021
Legacy employers have modified provisions, including:
 IntroductionEmployers need to satisfy record keeping requirements to be entitled to JobKeeper payments. These include:
The ATO states: “If you've made a claim and made genuine mistakes, we'll help you resolve them. We want to give you the support you need, without the worry of accruing a debt, repaying money or getting penalised for genuine mistakes. We know that most Australians are honest and do the right thing. However, there are a handful of people who try to take advantage and exploit the system for their own financial gain. We will not tolerate anyone engaging in illegal behaviour or developing contrived schemes designed to take advantage of the COVID-19 stimulus packages. Where people deliberately exploit the system, we will take action. We've already seen some examples of people doing the wrong thing, and we've acted quickly and decisively.” Documented JobKeeper Compliance IssuesSome behaviours that are attracting ATO attention include:
Hi All
Happy end of financial year!! With the end of financial year fast approaching, I’m sure that everyone is very busy with preparations for finalisation of payroll, June’s JobKeeper and finalising files for the 30/6/2020. There are a couple of things, I’d like to remind you of and/or bring to your attention:
If you need help in locating your award, or the minimum wages rates for your employees please let us know - https://www.fairwork.gov.au/
These classes will be of between 5 & 10 people only, for ½ day sessions (mornings 9:00am – 1.00PM. As a start, I will be offering the following, as well as any other Bookkeeping related information sessions that many be suggested:
Please email Ida at: [email protected] to register your interest. Many thanks & please stay safe!! Kind regards Sally  Submission of the Claim Form
The submission of the Monthly Form on the ATO website is:
GST Turnover ATO have now advised that the GST Turnover fields on the monthly report should be:
The ATO system provides a different experience depending on whether the employee has used payroll software with STP reporting and again a slightly different experience if you are using JobKeeper Codes in that software. Payroll Software with STP and using JobKeeper Codes The ATO are informed of the employers “eligible employees” through the use of the JobKeeper-Start codes. Employer will NOT (currently) see the employee list nor be able to maintain it on the ATO website. The ATO will prefill the number of employees – if it is incorrect then “edit” them, check the software is reporting the correct employees to ATO through STP. Payroll Software with STP and NOT using JobKeeper Codes The ATO are informed of the employers’ employees through STP reporting. The Employer will be provided with the employee list and will be able to indicate JK status on the ATO website. They will also be able to add any missing employees. The ATO will not prefill the number of employees in April, but will do so in May and following. Payroll without STP software. The ATO do not have the eligible employees and therefore the employee must add them.
The ATO will not prefill the number of employees in April, but will do so in May and following. We are always here to help with any questions you might have, please contact us directly. Sally  We are here to help you...
Our team is committed to helping you ease the stress and burden, in short let us make it easy for you. Here is what we currently know and for all these steps we will be providing you with authorities to enrol you in the system and templates to meet all your eligibility and record keeping requirements and help you determine your business eligibility. Decline in Turnover Each individual entity has to test if their individual entity turnover did decline. If so, they then apply either the 30% or 50% test (that was determined by the Group Aggregated Turnover). Aggregated turnover of all entities that are connected or affiliated with you is used for the purpose of determining if the decline in turnover % of 30% if turnover of the group is below $1b or 50% if over. NFPs registered with ACNC are only 15%. Comparing Turnover: Compare one of
Eligible Employees You cannot claim for employees who:
After you have worked out you and your employees are eligible If you meet the eligibility criteria and want to start claiming the JobKeeper payment on behalf of your employees, you need to start paying them at least $1,500 per fortnight (before tax) and continue to pay them for as long as you keep claiming. When do I have to pay? For the first two fortnights (30 March – 12 April, 13 April – 26 April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by 8 May. This means that you can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April. You cannot claim the JobKeeper payment on behalf of employees who were not paid at least $1,500 before tax during each JobKeeper payment period. You cannot claim the JobKeeper payment in advance. The JobKeeper payment is a reimbursement from the ATO to an employer in arrears and cannot be paid in advance in any circumstances. Employees who were stood down or on long term leave Employees who have been stood down from work under the Fair Work Act without pay may still be eligible employees as long as they were in your employment and met the eligibility criteria on 1 March 2020. You will need to have paid them at least the minimum amount of $1,500 for each fortnight you claim in order to receive the JobKeeper payment. Employees who have been terminated If you terminated an employee after 1 March 2020, you can re-engage them, and they will be eligible if they met the eligibility criteria on 1 March 2020. If you want to claim the JobKeeper payment for employees you have re-engaged, you will need to:
You as an Employee or Business Participant for JobKeeper If you are an employee of your business, then you will follow all the guidance as an employee and complete all paperwork necessary for eligibility and continue to pay yourself at least the $1500 (before tax) per fortnight. If you are a self-employed, sole trader, partner in a partnership or trustee in a trust then it is not necessary that you pay yourself $1500 per fortnight. We are able to assist you with all steps and processes involved in the JobKeeper scheme which includes the setup in your payroll system and the respective reporting to the ATO. We will also be in communication with you and your accountants to ensure a consistent and appropriate interactions and provision of service. Contact us for further information - [email protected] Best wishes Sally I’m sure you are all aware of the JobKeeper payments being rolled out in the coming months.
Please find the latest information released from Treasury, to help you negotiate yours & your employee questions. As always, the team at Boox are ready to help you out with your queries regarding this & any other issues in this worrying time. Treasury updates JobKeeper guidance Treasury has now updated its guidance on the yet-to-be-legislated JobKeeper payments, including significant information on eligibility and compliance. Treasury has now released an updated frequently asked questions fact sheet on the proposed JobKeeper payments ahead of draft legislation being tabled before Parliament on Wednesday. The 12-page fact sheet details responses to a raft of questions that have arisen in the wake of the government’s announcement to roll out a flat $1,500 payment per fortnight to businesses as a wage subsidy for employees retained in the business. The update comes after the Commissioner of Taxation was given discretion to determine eligibility where businesses are unable to demonstrate impact through turnover reduction test. Please also review the JobKeeper Payment - Information for Employers. Take care everyone. Many Thanks Sally 
 As announced on 22 March, the government is providing up to $100,000 to eligible small and medium sized businesses and not-for-profits (including charities) that employ people, with a minimum payment of $20,000. These payments will help business and not-for-profit cash flow so they can keep operating, pay their bills and retain staff. Small and medium sized business entities with aggregated annual turnover under $50 million and that employ workers are eligible. Not-for-profit entities (NFPs), including charities, with aggregated annual turnover under $50 million and that employ workers will now also be eligible. This will support employment activities at a time where NFPs are facing increasing demand for services. Under the enhanced scheme, employers will receive a payment equal to 100% of their salary and wages withheld (up from 50%), with a:
Eligible entities will receive an additional payment equal to the total of all the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000, up to a total of $100,000 under both payments. This additional payment continues cash flow support over a longer period:
The cash flow boost provides a tax-free payment to employers. We will automatically calculate it. Eligibility for Boosting Cash Flow for Employers payments Small and medium sized business entities and NFPs with aggregated annual turnover under $50 million and that employ workers will be eligible. Eligibility will generally be based on prior year turnover. We will deliver the payment as an automatic credit in the activity statement system from 28 April 2020 upon employers lodging eligible upcoming activity statements. Eligible employers that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 100% of the amount withheld, up to a maximum payment of $50,000. Eligible employers that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax. The payments will only be available to active eligible employers established before 12 March 2020. However, charities that are registered with the Australian Charities and Not-for-profits Commission will be eligible regardless of when they were registered, subject to meeting other eligibility requirements. This recognises that new charities may be established in response to COVID-19. Eligibility for additional payment To qualify for the additional payment, the entity must continue to be active. Monthly activity statement lodgers For monthly activity statement lodgers, the additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to a quarter of their total initial Boosting Cash Flow for Employers payment following the lodgment of their June 2020, July 2020, August 2020 and September 2020 activity statements (up to a total of $50,000). Quarterly activity statement lodgers For quarterly activity statement lodgers the additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to half of their total initial Boosting Cash Flow for Employers payment following the lodgment of their June 2020 and September 2020 activity statements (up to a total of $50,000). Timing of Boosting Cash Flow for Employers payments The Boosting Cash Flow for Employers payment will be applied to a limited number of activity statement lodgments. We will deliver the payment as a credit to the entity upon lodgment of their activity statements. If this places the entity in a refund position, we will deliver the refund within 14 days. Quarterly & Monthly lodgers  Quarterly lodgers will be eligible to receive the first payments for the quarters ending March 2020 and June 2020. Monthly lodgers will be eligible to receive the first payments for the March 2020, April 2020, May 2020 and June 2020 lodgments. To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (300%) in the March 2020 activity statement. The minimum payment will be applied to the entities’ first lodgment. Timing of additional payment The additional payment will be applied to a limited number of activity statement lodgments. We will deliver the payment as a credit to the entity upon lodgment of their activity statements. If this places the entity in a refund position, we will deliver the refund within 14 days.  Quarterly lodgers will be eligible to receive the additional payment for the quarters ending June 2020 and September 2020. Each additional payment will be equal to half of their total initial Boosting Cash Flow for Employers payment (up to a total of $50,000).
Monthly lodgers will be eligible to receive the additional payment for the June 2020, July 2020, August 2020 and September 2020 lodgments. Each additional payment will be equal to a quarter of their total initial Boosting Cash Flow for Employers payment (up to a total of $50,000). Please note that if you have a debt with the ATO, either for BAS or for Income tax, the ATO will transfer the incentive amount to those debt accounts first and then send you the residual, if applicable, 14 days after processing. Also, while this amount appears to not have to be paid back in full, the ATO may reduce the expenses on your next Income Tax return by the amount of the payment, so that you pay a bit more tax, but it remains to be seen how that will go. Please keep in mind that we will process your BAS returns as soon as we have ALL relevant information to hand, so please start to get your information together NOW. Thank you for your support in this very trying time, we will certainly be working very hard in the next week to get as up to date as we can to ensure smooth and efficient workflow for BAS lodgement for our valued clients. Many Thanks Sally  Background Context
Single Touch Payroll reporting means that the ATO is now able to see:
We might get an amnesty period for getting Super Guarantee up to date. The ATO discretion to reduce penalties will be diminished thereafter. An employer must lodge the SGC forms if super is late or missing. Late payment does not stop the penalties accruing. The paperwork must be done. The proposed Superannuation Guarantee Amnesty is not yet law! The Bill is currently being considered by Parliament for the second time. It is before the Senate and likely to be considered in February 2020 (politics dependant). The ATO says not to wait for the Amnesty law “We understand some employers may be ‘holding off’ lodging an SGC statement in anticipation of the amnesty,” Mr. O’Halloran (ATO Deputy Commissioner – Employer Obligations) said. “We advise them not to do this as the law requires them to lodge the SGC; if they hold off and they’re notified we’re examining their affairs, they won’t be eligible for the amnesty; and if they lodge now and the law is passed, in its current form it is retrospective.” Meaning that if employers lodge SGC forms as they are required to and:
Contact us to find out what is required if you have outstanding superannuation guarantee lodgements/payments. |
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