2020 Income Tax Returns
The ATO has warned taxpayers to be extra cautious when preparing their income tax returns this year.
JobKeeper/JobSeeker
Any monies received under the JobKeeper or JobSeeker schemes are included in your taxable income. JobKeeper payments are treated as part of your ordinary wage income and are reported by your employer to the ATO at the end of the year. Government payments, including JobSeeker, are reported by Centrelink to the ATO.
If you are preparing your return early this year, remember there can be a delay in the amounts appearing on your MyGov or on your accountants ATO portal. If there is a delay, these amounts may need to be inputted manually or it may be safe to just wait until they have been populated.
If you are in business, you will need to include all JobKeeper receipts as income. These include employee JobKeeper and Eligible Business Participant (EBP) JobKeeper amounts received.
Stand Down Payments
Some employees have received additional payments including lump sums as a result of Covid-19. The treatment and tax implications of these depend on why they were paid. They will appear on your employee payment summary (if you receive one) and will be populated as part of your income data on your MyGov account. Your accountant will also have access to these.
Early Access to Superannuation
If you have withdrawn any monies under the Covid-19 scheme, the good news is that there is no tax effect in doing do. The money is tax free and does not need to be shown in your tax return.
The ATO matches the amounts included in tax returns to amounts reported to it by Centrelink and employers. Any discrepancies will likely result in additional tax being repaid and penalties and interest applying.
Contact CrossCorp or if you need further information.
