October 2020 Newsletter

Please click on the following link to view our monthly accounting/tax newsletter for

October – 2020

We would like to highlight the following articles in this month’s newsletter:-

COVID-19 early release of super extended – As part of the Economic and Fiscal Update in July 2020, the Government announced that it would extend the application period to allow those dealing with adverse economic effects of COVID-19 to access up to $10,000 of their super (tax-free) for the 2020–2021 year. Applications for the 2020–21 year opened online through myGov on 1 July 2020 and will close at 11.59pm Australian Eastern Daylight-saving Time (AEDT) on 31 December 2020.

To be eligible, a citizen or permanent resident of Australia and New Zealand must require the COVID-19 early release of super to assist them to deal with the adverse economic effects of COVID-19. In addition, one of the following circumstances must apply:

  • you are unemployed
  • you are eligible to receive one of the following
    – JobSeeker payment
    – Youth Allowance for job seekers (unless you are undertaking full-time study or are a new apprentice)
    – Parenting payment (which includes the single and partnered payments)
    – Special Benefit
    – Farm Household Allowance
  • on or after 1 January 2020 either
    – you were made redundant
    – your working hours were reduced by 20% or more (including to zero)
    – you were a sole trader and your business was suspended or there was a reduction in turnover of 20% or more (partners in a partnership are not eligible unless the partner satisfies any other of the eligibility).

COVID-19 and FBT: updated ATO advice – Items provided to employees to allow them to work from home (or otherwise offsite) due to COVID-19 will usually  be exempt from FBT if they are primarily used by employees for work. Also, the minor benefits exemption or the otherwise deductible rule may apply if an employer:

  • allows an employee to use a monitor, mouse or keyboard that they otherwise use in the workplace;
  • provides them with stationery or computer consumables; or
  • pays for their phone and internet access.
    Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.