Levi Wheatcroft | Tax preparation service

Levi Wheatcroft

Phone: +61 8 9842 3753

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16.01.2022 Save Some Tax With the Super RoundaboutThe early access to super isn't available to everyone, but for some it's an opportunity to save between $4k and $5k in tax.

15.01.2022 Mandatory Rent Reductions ? Well... not really. The Prime Ministers office issued a Mandatory Code of Conduct for Commercial Landlords late last week. This is big news for any businesses impacted by COVID-19, and trying to negotiate a rent reduction. It's available from the PMs website here: https://www.pm.gov.au//national-cabinet-mandatory-code-ofc... The Code includes an example: If the tenant’s revenue has fallen by 100%, then at least 50% of total cash flow relief is rent free/rent waiver and the remainder is a rent deferral. If the qualifying tenant’s revenue has fallen by 30%, then at least 15% of total cash flow relief is rent free/rent waiver and the remainder is rent deferral. The code applies to all tenants suffering financial stress or hardship, and that definition specifically includes any business which is eligible for JobKeeper Payments. The code provides some guidelines for tenants and landlords, but there's a real focus on negotiation. Every commercial lease agreement is different, and the long term implications of a rent reduction may be complex. This is absolutely something you should ask your lawyer about before signing off on any reduction, just to make sure you're in the best possible position 6 months from now.

06.01.2022 Mandatory Rent Reductions ? Well... not really. The Prime Ministers office issued a Mandatory Code of Conduct for Commercial Landlords late last week. This is big news for any businesses impacted by COVID-19, and trying to negotiate a rent reduction. It's available from the PMs website here: https://www.pm.gov.au//national-cabinet-mandatory-code-ofc... The Code includes an example: If the tenant’s revenue has fallen by 100%, then at least 50% of total cash flow relief is rent free/rent waiver and the remainder is a rent deferral. If the qualifying tenant’s revenue has fallen by 30%, then at least 15% of total cash flow relief is rent free/rent waiver and the remainder is rent deferral. The code applies to all tenants suffering financial stress or hardship, and that definition specifically includes any business which is eligible for JobKeeper Payments. The code provides some guidelines for tenants and landlords, but there's a real focus on negotiation. Every commercial lease agreement is different, and the long term implications of a rent reduction may be complex. This is absolutely something you should ask your lawyer about before signing off on any reduction, just to make sure you're in the best possible position 6 months from now.

01.01.2022 The JobKeeper Legislation was finally enacted on the 9th of April, you can find it here on legislation.gov.au: https://www.legislation.gov.au/Details/F2020L00419 It's not yet available on austlii, and the ATO is still writing their commentary, but I imagine they'll be publishing that over the next few days.... There's going to be a lot to unpack from this over the next few weeks, but there's two real highlights. Firstly, the required reduction in turnover for small / medium businesses is 30%. Earlier commentary from treasury said 25%. Secondly, businesses will need to report GST turnover within 7 days of the end of each month. So, if a projection of your April 2020 GST turnover will show a reduction of 30% or more from your April 2019 turnover, then you satisfy the eligibility test. However, you'll need to report your GST turnover to the ATO before 7 May. This last requirement could be challenging for a lot of small businesses!