Talking Concepts

Talking Concepts September 2020

2020 Income Tax Return

Don’t delay doing your return. You may be entitled to a refund. Better the money in your pocket.

This year because of the restrictions and until further notice, individual returns which would normally be done on the spot in the office, will be done via a telephone or internet meeting.

Once you have everything ready, contact our office on (03) 9569 5676, post to PO Box 61, Holmesglen, or email your paperwork to concepts@cr.com.au. The current restriction do not allow for you to drop off your paperwork to the office.

Once we have done a preliminary check of your information, if there are any queries or items that need to be clarified we will be in touch via email or telephone.

We have lots of handy checklists for individuals, trusts, companies, rental properties, etc, and also Fact Sheets of deductions for specific occupations. These are available on our webpage https://www.cr.com.au/get-results/tax-checklists/, or call our office on (03) 9569 5676.

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Quote 4 Profit Job Estimator

Never quote a job and lose money again.

This easy spreadsheet will help you set the right margin and achieve a healthy profit every time you quote.

To receive your free copy go to https://www.alltradesbookkeeping.com.au/quote-4-profit/

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Borrowers turn to government stimulus to pay mortgage

An increasing number of people are using government stimulus payments to pay their mortgages or rent, according to new data from the Australian Bureau of Statistics.

The findings come in the ABS’s Household Impacts of COVID-19 Survey, which involved a telephone interview of approximately 2,500 adults conducted between 7 and 20 June 2020. Building on a similar survey undertaken in May 2020, the June survey aimed to understand behaviours and perceptions around receipt and use of government stimulus payments, as well the level of concern for personal health due to COVID-19 (and actions taken to mitigate the risk of contracting it). Overall, the June survey showed a slight increase in the numbers of Australians who had received a government stimulus payment in response to the COVID-19 pandemic. The proportion of recipients of these payments rose from 32 per cent in May to 35 per cent in June. Moreover, the survey found that a growing proportion of Australians were using their personal government stimulus payments (such as JobKeeper) to pay their bills and mortgages. While around 14 per cent of all people receiving payments were using it to pay their mortgage/rent, a growing proportion of people said that this was the ‘main’ use of their payment. Six per cent of all people receiving payments said the ‘main use’ was to pay their mortgage/rent in May, creeping up to just over 7 per cent in June.

Moreover, more than a quarter of employed people (27 per cent) who received a stimulus payment said they put it towards their mortgage or rent, compared to 8 percent of those not working or not in the labour force. Not only were employed people three times as likely to use it to pay mortgages or rent than those not working or not in the labour force, those who were employed were also found to be paying household bills with their payment (55 per cent compared to 38 per cent).

Overall, the main use of the stimulus payment in June was to pay household bills (32 per cent), which was a change from May when the main use of stimulus payments was to add to savings (29 per cent). The findings around the use of government stimulus and mortgage payments come as many borrowers approach the end of their six-month loan repayment deferral period. The initial deferral periods, first launched in March 2020, were largely for a period of three months (with the option to extend for an additional three months). As at 19 June, nearly 800,000 borrowers had deferred their mortgage repayments. While lenders have agreed to extend the loan repayment period by another four months on a case-by-case basis (to no later than 31 March 2021), many borrowers have already begun repaying their loans.

– The Adviser

Jobkeeper and Government Assistance

If you are experiencing financial difficulties during COVID19 there are many forms of assistance available. If you are unsure if you are eligible for any of the payments, or if you or anyone you know require any assistance with any of the support measures call or email our office and speak to one of our advisers.

C&R Group during Isolation

While our office doors are closed, the Concepts & Results Group including All Trades Bookkeeping, Results Home Loans and C&R Financial Management continue to operate as normal. You can still call our office on 9569 5676 or 1300 880 863 and speak to any of our lovely Admin ladies who if unable to assist, will transfer your call to the relevant team member.

Appointments are still being held, but now via telephone or Go To Meetings.

Stay safe and healthy everyone.

ASIC Fee Increase

From 1^st July 2020 Company Fees increased. The new fees are:

Company Annual Review $273

Special Purpose Company (Trustee of SMSF) $55

Late payment of Annual Review Fees and Late lodgement of changes to company have also increased

Within 1 month after due date $82

More than 1 month after due date $340

Please ensure that you pay your ASIC invoices before the due date and if we have prepared documents to make changes to your company please return immediately to avoid penalties.

myGov account

Do you already have a myGov account? If not it may be time to set one up. Government services you can access via your myGov Account

Australian JobSearch
Australian Taxation Office
Centrelink
Child Support
Department of Veterans Affairs
Housing Vic Online Services
Medicare
My Aged Care
My Health Record
National Disability Insurance Scheme
National Redress

From 1^st July 2019 Single Touch Payroll came into effect and employers do not have to give you a payment summary (Group Certificate). Instead, you will get an end of year income statement in ATO online service through myGov. Your Income Tax Notice of Assessment can also be accessed via your myGov account.

If the Concepts & Results Group lodge your return, you don’t need to do anything if you don’t want. As your tax agent we can download your information via our ATO access portal.

To set up a MyGov account you will need:
– An email address
– A mobile number (optional)

Are you Working from Home?

If you’re an employee who works from home, you may be able to claim a deduction for expenses you incur relating to that work. These can be additional running expenses such as electricity, the decline in value of equipment or furniture and phone and internet expenses.

There are some expenses you can’t claim a deduction for as an employee. Employees who work at home can’t claim costs:

for coffee, tea, milk and other general household items your employer may otherwise have provided you with at work
related to children and their education including setting them up for online learning, teaching them at home or buying equipment such as iPads and desks
that you’re reimbursed for, paid directly by your employer or the decline in value of items provided by your employer – for example, a laptop or a phone.

If you are working from home during COVID-19 speak to one of our advisers about your claim for home office expenses when having your 2020 tax return prepared.

Self Managed Superannuation Fund Update

The Concepts & Results group are always looking for ways of improving our service to our clients. From 1^st July 2020 we began to utilise the technology provided to us by our SMSF software supplier BGL SimpleFund360. This software is used to manage your SMSF and prepare end of year financial and member statements. The new software will allow for more efficiency and accuracy of data entry and reporting.

SMSF Investment Strategies were also required to be updated to comply with requirements under the Superannuation Laws. Importantly an Investment Strategy must look at the members of the Fund, their ages, superannuation benefit requirements such as pensions and plan a strategy to meet their retirement income requirements. If there is primarily one asset class such as property or equities or cash then the Trustee must provide commentary on how that asset class meets the needs of the members. If there is borrowing how the Trustee is to cover leverage risk – which would also apply to derivatives and must be accompanied by a Derivatives Risk Statement. If you have not recently updated your SMSF Investment Strategy you should contact our office to organise the new documentation.

Turnaround times bounce across big 4

Processing lags for mortgage applications have persisted, with turnaround times increasing across all four major banks, the latest Broker Pulse research has revealed.

According to Momentum Intelligence’s latest Broker Pulse statistics – which involves a monthly survey of sentiment towards lenders across the third-party channel – turnaround times for home loan applications increased across each of the big four banks over the month of July. ANZ continues to trail the pack, with its turnaround times increasing for the fifth consecutive month, from an average of 26 business days in June to 27 business days as at 31 July.

However, the Commonwealth Bank of Australia (CBA) and Westpac Group recorded the sharpest monthly increases, up by an average of three business days to nine business days and 14 business days, respectively.

Meanwhile, NAB’s turnaround times increased from an average of nine business days in June to 10 business days. As a result, surveyed brokers downgraded the net promoter scores (NPS) of all four majors. ANZ received the lowest NPS rating (-67), followed by NAB (-33), Westpac (-31) and CBA (0).

– The Adviser

Team Update

Congratulations to Diana Scandizzo-Italia and her husband Frank on the birth of Adrian. A young brother to Domenic.

We would also like welcome to our Bookkeeping team Allan Dori!

Visit us

Want to discuss the above face to face? Come visit our specialised team members to find out more.

612 Warrigal Road, East Malvern PO Box 61, Holmesglen, Vic 3148

Call us

Have any questions? Further discussions on the above can be may be held over a telephone appointment.

(03) 9569 5676

Contact us

For any and all queries regarding the above, you may contact Concepts & Reuslts by emailing us

concepts@cr.com.au

Talking Concepts