Legal news
As discussed here, the decision in Dental Corporation Pty Ltd v Moffet [2020] FCAFC 118 (16 June 2020) (Moffet) marked an important shift in how the courts have interpreted the employee/contractor distinction for the purposes of superannuation guarantee obligations.
The AAT has rejected the Federal Commissioner of Taxation’s (Commissioner) view that a discretionary payment received by an employee upon his termination should be taxed as ordinary income. Despite the payment being made upon the termination of the employee the Commissioner argued that it was received in respect of their employment as it was calculated in relation to fees earnt.
In the recent decision of MWWD v FC of T 2020 ATC (16 October 2020), the Administrative Appeals Tribunal (AAT) found that payments to a contractor repair technician did not trigger a superannuation contribution/charge obligation under the Superannuation Guarantee (Administration) Act 1992 (Cth) (SG Act).
As discussed here and here, the superannuation guarantee (SG) amnesty allowed employers to disclose and pay previously unpaid SG charge, including nominal interest, for the quarters between 1 July 1992 to 31 March 2018 without incurring the administration component ($20 per employee per quarter) or Part 7 penalties. In addition, payments of SG charge made to the ATO under the amnesty were tax deductible.
In anticipation of the conclusion of the superannuation guarantee (SG) amnesty (discussed here) on 7 September 2020, the Australian Taxation Office (ATO) has released a draft Law Administration Practice Statement PS LA 2020/D1 (PSLA 2020/D1) in relation to how, post amnesty, the ATO officers may exercise their discretion to remit Part 7 penalties.
In the recent decision of Dental Corporation Pty Ltd v Moffet [2020] FCAFC 118 (16 June 2020) , the Full Federal Court found that a dentist fell within the extended definition of ‘employee’ under s12(3) of the Superannuation Guarantee (Administration) Act 1992 (Cth) (SG Act). Section 12(3) broadly provides that an employee is a person who is working ‘under a contract that is wholly or principally for the labour of the person.’
JobKeeper is not just a financial subsidy for qualifying employers. We previously wrote about the extraordinary powers that employers help get them to the other side of the COVID-19 pandemic (or at least until September when the JobKeeper scheme is scheduled to end).
Many businesses around the country are eagerly anticipating being able to trade again. For some employers, this has included encouraging employees and customers to download the Federal Government’s COVIDSafe App. Questions have risen around whether employers can require their employees to download the COVIDSafe App before returning to work.
The COVID-19 crisis has introduced unprecedented disruptions to the workforce, pushing employees and employers to work in remote capacities and in expedited ways across many industries.
This will mean that employers will soon have to turn their minds to considerations never contemplated before, such as their base line payroll tax assumptions and whether or not changes in the ways we will be working in the coming months, will shift payroll tax liabilities to a different jurisdiction. We explore these questions further in this article.
As part of the continued economic response to COVID-19, the Deputy Commissioner of the Australian Taxation Office (ATO) has recently made a determination pursuant to subsection 20(4) of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020, outlining further tests under which an entity may satisfy the decline in turnover required in order to receive JobKeeper payments. This article discusses the various new “alternative” tests that an entity may utilise under the determination.
State and territory revenue offices continue to make announcements in response to the COVID-19 crisis. Relevant to many businesses will be the numerous payroll tax changes. The changes include waivers and deferrals for eligible businesses as well as the bringing forward of cuts to tax-free thresholds in some jurisdictions.
Further to my article on the COVID-19 JobKeeper measure, and pending the release of legislation, on 5 April 2020 Treasury further updated and expanded its JobKeeper fact sheets and included a ‘frequently asked questions’ (FAQ) document.
As foreshadowed in our earlier article, on 30 March 2020 the Federal Government announced further COVID-19 business support – the JobKeeper Payment.
Under the JobKeeper Payment, businesses significantly affected by Coronavirus outbreak be able to access a subsidy from the Government to continue paying their employees.
