September 18, 2020
JOBKEEPER PAYMENT: IMPORTANT KEY DATES
It is very important to keep up to date with the JobKeeper Payment key dates to ensure you don’t miss critical deadlines to receive payments.
Upcoming JobKeeper Payment Key Dates:
1-14 June: If you wish to be reimbursed for JobKeeper Payments in May, you will need to complete your declaration between 1-14 June, 2020.
Each month you must make a business monthly declaration each month to:
re-confirm your business and employee eligibility
provide your business’s current and projected GST turnover.
You need to do this between the 1st and 14th of the following month (for example, to be reimbursed for JobKeeper payments in May you need to complete your declaration by 14 June).
When paying eligible employees, you do not need to adjust your pay cycle through your existing payroll solution. If you usually pay your employees less frequently than fortnightly, the payment can be allocated between fortnights in a reasonable manner.
JobKeeper Payment Key Steps Recap: The ATO has identified 3 key steps in order to receive the JobKeeper payment: 1. Enrol 2. Identify and maintain eligible employees 3. Make monthly declarations
Monthly Declarations: Declarations via the Business Portal opened on Monday the 4th of May. If your business has been accepted into the scheme, you are required to make monthly declarations to the ATO via the Business Portal, to reconfirm your number of eligible employees and report your current and projected turnover. The next monthly declaration for JobKeeper is NOW DUE. To be reimbursed for JobKeeper Payments in May, you will need to complete your declaration between 1-14 June, 2020.
Declarations will need to be reconfirmed every month for the duration of the scheme. It is critical to ensure that your bookkeeping requirements and your Payroll software are up-to-date, so you can report actual turnover. VICTORIAN LAND TAX DISCOUNT AND DEFERRAL RELIEF TO ELIGIBLE PROPERTY OWNERS
The Victorian Government recently announced a range of tax relief measures in response to COVID-19 to assist landlords and businesses. The State Revenue Office (SRO) has now provided further guidance on these initiatives.
There are two separate relief measures:
Land tax discount for eligible commercial and residential landlords, which includes the deferral of the balance of their assessed liability until up to 31 March 2021; and
General land tax deferral for landowners with at least one taxable non-residential property and total taxable landholdings below $1 million, to be paid in full by 31 March 2021.
Land tax discount for eligible landlords The Government is providing $420 million in land tax relief to landlords who provide tenants impacted by the Coronavirus with rental reductions. Landlords who provide rent relief to tenants due to the impact of the Coronavirus may be eligible to access a 25% reduction on the property’s 2020 land tax liability and defer the balance of their assessment until up to 31 March 2021. The relief is also available to land owners who are unable to secure a tenant (residential or commercial) because of the Coronavirus.
Eligibility criteria for tenanted properties Land tax relief is available to landlords of residential properties and commercial properties (which includes retail, office and industrial) where the following eligibility criteria is satisfied:
Residential properties The owner of a tenanted residential property is eligible for land tax relief where the following is demonstrated:
all or part of the property is rented;
at least one of the tenants’ ability to pay their normal rent is affected by COVID-19;
both the landlord and tenant have agreed to a reduced rent; and
the rent reduction is at least an amount equivalent to the 25% proportional 2020 land tax for that property.
Commercial properties The owner of a tenanted commercial property is eligible for land tax relief where the following is demonstrated:
all or part of the property is rented; at least one of the tenants’ ability to pay their normal rent is affected by COVID-19;
both the landlord and tenant have agreed to a reduced rent;
the rent reduction is at least an amount equivalent to the 25% proportional 2020 land tax for that property; and
the tenant has an annual turnover of up to $50 million and is eligible for the Federal JobKeeper payment.
Evidentiary requirements to support application for discount The SRO has advised that the following information must be provided with applications for relief. Information/evidence to be provided: Tenanted – residential or commercial
The lease agreement or written evidence of the arrangement existing between the landlord and tenant prior to the Coronavirus pandemic;
Written evidence of the rent reduction or waiver that has occurred as a result of the impact of the Coronavirus pandemic;
Anything else that can support the claim.
Untenanted- residential or commercial
The date when the property became available for rent;
Description of how the Coronavirus pandemic has impacted the landlord’s ability to secure a tenant;
The advertised rental amount and date of advertisement (if applicable);
Copy of the property advertisement, for example via screenshot from online media or PDF (if applicable);
Exclusive managing and leasing authority agreement with the real estate agent / property manager (if applicable);
Anything else that can support the claim.
f the application is allowed, the SRO will automatically defer payment of any outstanding land tax from the owner’s 2020 assessment up to 31 March 2021.
General Land Tax Deferral Land owners who own at least one taxable non-residential property and have total taxable landholdings below $1 million have the option of deferring their 2020 land tax payment. Where this relief applies, a land owner can defer their entire assessment, which may include residential land, to the final payment date of 31 March 2021.
An eligible land owner must own at least one taxable non-residential property. A ‘non-residential property’ includes commercial property, industrial property and vacant land (excluding vacant residential land, being property in inner and middle Melbourne that has been vacant for more than six months in the preceding calendar year). Land owners who have already paid their 2020 land tax can request a return of the tax. The tax will then need to be paid in full by 31 March 2021.
We note that land owners of solely residential property will not be eligible for deferral, even if their total landholdings are below $1 million. Where a land owner owns non-residential property together with residential property, and total landholdings are under $1 million, the whole of the owner’s land tax liability is deferred, including the liability attributed to their residential property holdings.
The SRO has advised it will contact all taxpayers who are eligible for land tax deferral.
How can JMp help? If you are a property owner who has provided rental relief to at least one of your tenants, or who cannot secure a tenant due to COVID-19, we can work with you to determine whether you are eligible for land tax relief in respect of each of your properties.
Where a landlord has multiple tenants in the one property, if the eligibility requirements are met for at least one tenancy, then it appears that the whole property will be eligible for relief. However, the reduction of rent for the one tenancy must be at least an amount equivalent to the 25% proportional 2020 land tax for that property.
We can assist you in completing the application for relief, together with ensuring all supporting documentation is provided, and we can also lodge this application on your behalf.
In respect of the general land tax deferral, if you believe you may be eligible for deferral relief but have not been contacted by the SRO, we can apply for relief directly to the SRO on your behalf. * The above information is based on current guidance as advised by the State Revenue Office. While the Victorian Government may settle further conditions of eligibility for land tax relief, the SRO advises that land owners can apply for relief if they satisfy the above general criteria.
As always, if you have any queries please contact us. Kind Regards, JMP Accountants