[vc_row][vc_column][vc_column_text]It has been some weeks since our last update but that doesn’t mean that there hasn’t been a lot happening.

May applications (months 2 of 6) for JobKeeper are substantially complete and we remind you of the right to claim JobKeeper having satisfied the decline in turnover test once.

The second round of Cash Flow Boost (“CFB”) payments will begin to flow. in July (typically 4 instalments up to $50,000) but dependant on a number of factors including entitlements to the first Cash Flow.

Instant asset write-offs up to $150,000 for depreciable assets for many businesses has just been extended to December 31 2020.

In W.A. the legislation for rent relief has also been gazetted. Year- end matters may be impacted by the above.[/vc_column_text][vc_column_text]Further detail as follows: [/vc_column_text][mk_divider style=”thick_solid” border_color=”#000000″][vc_column_text]Year End Trust Distribution Minutes and CFB

We remind all Trustees of Family Trusts of the need to prepare and sign the necessary income/corpus distribution minutes before June 30 2020.

CFB’s are not assessable income and with proper drafting these amounts may be able to be distributed tax-free to natural person beneficiaries.

Where possible these amounts should not be distributed to corporate beneficiaries.

As usual, it is all about the Trust Deed and its definitions of income of the Trust so please take care when drafting distribution minutes. In some cases pre-June 30 Trust Deed variations may be required.[/vc_column_text][vc_column_text]Second CFB

Entities that qualified for the first CFB payment should soon receive instalments of the second CFB amount.

The second CFB amount will be the same as the first CFB payment received.

For large and medium withholders, the second CFB payment will be received in 4 equal instalments for the months of June 2020, July 2020, August 2020 and September 2020.

For small withholders the second CFB payment will be received in 2 equal instalments for the quarters ending on 30 June 2020 and 30 September 2020.

Entities are still required to notify the Commissioner in the ‘approved form’ (i.e. BAS) in respect of their entitlement to the second CFB.

The second CFB payment will generally be made upon lodgement of the activity statement containing the GST return of the entity for the period.

For most taxpayers the Commissioner must pay the second CFB no later than the latest of the following times:

• the time which the entity notifies the Commissioner in respect of its entitlement in the approved form; and
• the time at which the entity must give the Commissioner its GST return for the tax period corresponding to the period; and
• the time at which the entity actually gives the Commissioner that GST return.

[/vc_column_text][vc_column_text]Job-Keeper: May entitlements

You must make a monthly declaration each month to claim your entitlements.

Currently this is required between the 1st and 14th of each Month.

The May declaration requires you to advise May turnover, estimated June turnover and confirm eligible employees.[/vc_column_text][vc_column_text]Instant Asset Wite-offs

The ability for eligible entities (i.e. entities with an aggregated annual turnover of less than $500m) to claim the $150,000 instant asset write-off has been extended for another six months to 31 December 2020.

These provisions apply to depreciating assets with a cost of less than $150,000 that are first used, or installed ready for use, at any time from 12 March to 31 December 2020.
[/vc_column_text][vc_column_text]New Tenancy Legislation

The WA Government released on 29 May the Commercial Tenancies (COVID-19 Response) Regulations 2020 (“the Regulations”) (refer links to the legislation below).

These Regulations provide guidance as to the application and operation of the Commercial Tenancies (COVID-19 Response) Act 2020.

Some of the key provisions include:

Under the Regulations the following persons must comply with the new adopted Code of Conduct:

• Landlords under a small commercial lease; and
• Tenants under a small commercial lease

‘Small commercial lease’ is defined as:

• a retail shop; or
• a lease where the tenant owns or operates a small business; or
• a lease where the tenant is an incorporated association; or
• any other lease that is of a class prescribed by the regulations.

A tenant under a small commercial lease is an eligible tenant where the following conditions are satisfied:

• the tenant had turnover of less than $50m in 2019; and
• the tenant qualifies for the JobKeeper scheme; or
• the tenant satisfied the requisite decline in turnover test (i.e. 30% for most entities) during the period 30 March to 29 September.

Requests for rent relief by a tenant must be in writing and accompanied by:

• a statement by the tenant that the lease is a small commercial lease and the tenant is an eligible tenant;
• evidence that the tenant is an eligible tenant;
• evidence of the tenant’s reduction in turnover associated with the business conducted at the premises that the tenant has experienced during the emergency period

Upon receipt of a request for rent relief from an eligible tenant a landlord must offer rent relief to the eligible tenant within:

• 14 days after receiving the request; or
• such other period as agreed between the parties.

The landlord’s offer must be in writing and must be at least proportionate to the reduction in the tenant’s turnover.

In addition, at least 50% of the rent relief must be in the form of a waiver, unless otherwise agreed in writing between the parties.

Rent relief can be more than 50% where failure to provide less would compromise the tenants’ capacity to fulfil its obligations under the lease, or the landlord has the financial capacity to provide more.

The tenant must pay the deferred rent to the landlord over the greater of the balance of the lease or 2 years.

The landlord must offer the tenant an extension of the term of the lease for the period for which the rent is deferred on the same terms and conditions that applied immediately before the emergency period.[/vc_column_text][vc_column_text]New Superannuation Carry Forward Rules

From 1 July 2019 individuals are entitled to carry forward unused concessional superannuation contribution amounts.

Unused amounts are available for a maximum of five years, and after this period will expire.

The maximum amount allowable to be carried forward is $25,000 each year.

Accordingly, for the 2020 financial year individuals may contribute a maximum of $50,000 in unused concessional superannuation contributions and obtain an income tax deduction for that amount.

Contributions tax of 15% is payable by the super fund on these amounts.[/vc_column_text][vc_column_text]Please contact us should you require assistance with respect to any of the above.[/vc_column_text][vc_column_text]See relevant links to legislation below.[/vc_column_text][vc_column_text]Tenancy Act[/vc_column_text][mk_button dimension=”flat” size=”medium” url=”https://www.legislation.wa.gov.au/legislation/statutes.nsf/law_a147263.html” target=”_blank” margin_top=”10″ margin_bottom=”40″ btn_hover_bg=”#c4b097″]Click here[/mk_button][mk_padding_divider size=”1″][vc_column_text]Regulations[/vc_column_text][mk_button dimension=”flat” size=”medium” url=”https://www.slp.wa.gov.au/gazette/gazette.nsf/searchgazette/ED1D69910EB33D6E48258576000ADC41/$file/TocGg086.pdf” target=”_blank” margin_top=”10″ margin_bottom=”40″ btn_hover_bg=”#c4b097″]Click here[/mk_button][mk_padding_divider size=”1″][/vc_column][/vc_row]