It can take some planning to get your finances in order for the end of financial year, and this year may look a little different, come 30 June. The COVID-19 pandemic may have impacted your circumstances and therefore your situation could have changed. Read more
Winter is here and we are almost at the end of another financial year, and what a year it’s been! With so many Australians impacted by fires, floods, drought and now COVID-19, let’s hope the new financial year sees a more stable economic environment.
AFS finalists in the Australian Accounting Awards
AFS & Associates has been shortlisted and named as finalists in the Australian Accounting Awards for Wellness Program of the Year and Professional Development Program of the Year! Read all about it in our client update.
We look forward to the awards night in June. Fingers crossed we take home a win or two!
As May unfolded, hopes grew of economic re-opening. Reserve Bank Governor Philip Lowe told a Senate Committee on COVID-19 the economic downturn was less severe than feared due to Australia’s better than expected health outcomes and government stimulus and support. Unemployment rose from 5.2% to 6.2% in April, but without JobKeeper support payments it would have been closer to 9.6%.
We hope you enjoy this edition of our client update. We cover the following:
- Business support during COVID-19
- Take advantage of the instant asset write off before 30 June
- ATO opens applications for early release of superannuation
- Working from home: what can I deduct?
- Scams targeting natural disaster victims
- Employers need to pay superannuation now or be penalised.
Should you wish to investigate any of these matters further, please contact our office on 03 5443 0344.
Updated 1 December 2020
Announced on 4 June 2020, the HomeBuilder Program will provide all eligible owner-occupiers (not just first home buyers) with a grant of $25,000 for those who enter into a contract before 31 December 2020 to build a new home or substantially renovate an existing home or $15,000 for those who enter into a contract before 31 March 2021.
It is hoped HomeBuilder will help to support the residential construction sector including businesses and sole-trader builders, contractors, property developers, construction materials manufacturers, engineers, designers and architects.
It is also a nice boost for Australian’s wanting to build their home or renovate existing houses.
Key details include:
- Applies to contracts entered into between 4 June 2020 to 31 March 2021
- The property value must be worth $750,000 or less (including land value)
- If doing a renovation, the value of property must be less than $1.5 million
- Renovation price range must be over $150,000 up to $750,000
- For singles, taxable income for 2018/19 or 2019/20 must be $125,000 or less
- For couples, combined taxable income for 2018/19 or 2019/20 must be $200,000 or less
- Construction must be contracted to commence by 30 June 2021
- Investors and owner builders will be ineligible
- This cannot be used for additions to the property that are unconnected to the place of residence such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages
- This can be used in conjunction with existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
- i.e. an eligible first home buyer in Victoria will now get $45,000 in grants when building their first home.
HomeBuilder will be implemented via a National Partnership Agreement, signed by the Commonwealth and State and Territory governments. Information on when and how you will be able to access HomeBuilder will become available through the relevant State or Territory revenue office.
Extension to 31 March 2021
It was recently announced that the HomeBuilder program will be extended until 31 March 2021 with a reduced grant.
The changes for the extension include:
- A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
- An extended deadline for all applications to be submitted, including those applying for the $25, 000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
- An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
- An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
- The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
- A change in licensing requirements and registration for builders and developers, as below
- Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
- Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
Other than the above, the existing program criteria applies. That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.
For full details on the program please see the following government pages:
If you have any questions about the grant please call us to discuss on 03 5443 0344 or email email@example.com