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We had the Jobkeeper Act and legislative instruments, but there are now three more Jobkeeper rulings.
Jobkeeper Rulings
There are three new Jobkeeper rulings – Practical Compliance Guideline PCG 2020/4, Practice Statement Law Administration PSLA 2020/1 and a Law Companion Ruling LCR 2020/1. So a guideline, a statement and a ruling.
In this episode, Andrew Henshaw of Velocity Legal in Sydney will tell you what these are about.
Here is what we learned but please listen in as Andrew Henshaw explains all this much better than we ever could.
To listen while you drive, walk or work, just access the episode through a free podcast app on your mobile phone.
Practice Statement Law Administration – PSLA 2020/1
PSLA 2020/1 is all about the commissioner’s discretion when there is no ABN registration as of 12 March 2020 or no BAS or tax return for 2018/19 lodged before 12 March 2020.
Law Companion Ruling 2020/1 – LCR 2020/1
LCR 2020/1 is an omnibus ruling covering six different issues regarding the turnover test. The most important one is that you can use value of supplies, so not just accrual or cash, but also value.
1 – You can apply the turnover test on a monthly or quarterly basis.
2 – You only need to pass the turnover test once.
3 – Exclude input taxed supplies and supplies not connected with Australia.
4 – Keep records to show how you applied the test.
5 – You can use accrual or cash as well as value of supplies.
6 – It is ok to get an estimate wrong as long as your estimate is reasonable.
Practical Compliance Guideline 2020/4 – PCG 2020/4
PCG 2020/4 is all about anti-avoidance – the ATO telling you what they are looking for – listing 8 scenarios.
1 – Deferring the date of your invoices.
2 – Bringing the date of your invoices forward.
3 – Moving turnover from one entity to another.
4, 5 and 6 – Relationship between service and operating company.
7 and 8 – Parent company and management fees.
There is talk of reducing the jobkeeper for some and increasing it for others. So we will do an update when this comes through.
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Disclaimer: Tax Talks does not provide financial or tax advice. All information on Tax Talks is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.
Last Updated on 16 March 2021
Tax Talks spoke to Andrew Henshaw - Director at Velocity Legal - for more details.
