THE Australian Taxation Office (ATO) will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak.

Commissioner of Taxation Chris Jordan is encouraging businesses impacted by the coronavirus to get in touch with the ATO to discuss relief options.

“We know that many businesses and communities are being heavily affected by the challenging economic conditions created by the outbreak of COVID-19,” Mr Jordan said.

“The ATO will work shoulder-to-shoulder with businesses to assist them through this difficult period and do what we can to ease the pressure. Once you contact us, we’ll tailor a support plan for your needs and circumstances.

“Support measures could include deferral of some payments, quicker access to GST refunds, and options to enter low interest payment plans for existing or future tax debts.

"We understand this is a time of significant uncertainty and that we will need to be flexible in how we help businesses," he said.

Options available to assist businesses impacted by COVID-19 include:

• Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise.

• Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to.

• Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the April 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.

• Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.

• Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.

Employers will still need to meet their ongoing super guarantee obligations for their employees, Mr Jordan said.

"To make it easier for people to apply for relief we will be increasing our presence in the areas of highest impact," Mr Jordan said.

"A temporary shopfront with staff specialising in assisting small business will be established in Cairns within the next few weeks. In addition, we will consider ways to enhance our presence in other significantly affected regions, making it easier for people to apply for relief. Additional temporary shopfronts and face-to-face options are currently under consideration.

"We will also continue to work with the tax profession, other government agencies and local organisations to make sure other impacted communities are also supported during this time. We will ensure our services are tailored to the needs of the community and will work with taxpayers and their tax agents to tailor support to their individual circumstances," Mr Jordan said.

"Outside of business, the ATO will also work with individuals experiencing financial hardship, and their tax agents, and will apply appropriate tax relief measures for serious and exceptional circumstances, such as where people cannot pay for food or accommodation.

"Unlike the bushfire relief measures, which applied automatically to particular geographic areas, assistance measures for those impacted by COVID-19 will not be automatically implemented.

Anyone impacted by COVID-19 can contact the ATO to request assistance on the Emergency Support Infoline 1800 806 218, when they are ready, to discuss their situation.

www.ato.gov.au

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THE Caravan Industry Association of Australia has welcomed the $17.6 billion COVID-19 support package released by the Federal Government this morning. 

The stimulus package is crucial to supporting Australians, the business community and the economy in this time of crisis, the association said.

"There is no doubt that the start of 2020 has brought immense challenges to the tourism industry which is impacting cash flows, staffing and operations in businesses across the country," Caravan Industry Association of Australia CEO Stuart Lamont said.

The government’s stimulus package through business tax write offs, apprenticeship support, tourism funding and wage subsidies, will help inject cash into local economies, support businesses to maintain staffing levels and to provide business confidence in these uncertain times.

“Caravan Industry Association of Australia values the timely and measured response of the Government, which will help secure jobs across our manufacturing and accommodation sectors whilst also providing a safeguard for Australia’s economy,” Mr Lamont said.

“And once the current crisis eases, Australia’s caravan and camping industry will be ready to play its role in supporting economic recovery through welcoming Australians and our international visitors back into regional destinations to experience.”

About Caravan Industry Association of Australia

Caravan Industry Association of Australia is the peak national body for the caravan and camping industry. The association represents the $23 billion economy and 5000 jobs across the industry. The association operates as a not-for-profit organisation with a membership base comprising the individual state caravan and camping industry associations, working collaboratively with on matters concerning the industry.

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THE Federal Government’s economic response to the coronavirus, or COVID-19, announced today, should provide a strong boost to many households and businesses as they face an uncertain period, according to Australia’s largest accounting body CPA Australia.

CPA Australia spokesperson Paul Drum said COVID-19 continues to present a significant threat not only to human health but also to business and jobs.

“Today’s announcements should alleviate some of those business concerns, especially around cash flow,” Mr Drum said.

CPA Australia’s reaction to today’s fiscal stimulus announcements:

• Cash flow boost for employers – giving employers up to $25,000 should boost cash flow for SMEs at this critical time. Businesses will, however, need to get their BAS statements in to get the credit.
• The short-term extension of the instant asset write off until the end of June will make it more attractive for businesses under $500 million in turnover to invest in expensive plant and equipment. However, three months is a very short period to have such assets used or installed to qualify for the offset.
• Similarly, the introduction of accelerated depreciation will make it more attractive for businesses under $500 million in turnover to invest. However, unlike the instant asset write off extension, this measure will be in place until June 30, 2021 and the value of the eligible asset is uncapped, meaning it could be very useful in encouraging investment in the post-crisis recovery.
• The 50 percent wage subsidy for apprentices and trainees for small businesses should minimise job losses for this group of people.
• The $750 support payment to certain households will provide a timely boost to spending.

“We encourage those recipients of monies as part of this package to spend it at Australian businesses," Mr Drum said. “With the crisis evolving quickly, this may not be the last time the government will need to consider stimulus measures."

About CPA Australia

CPA Australia is one of the world's largest accounting bodies, with more than 165,000 members working in 100 countries and regions and supported by 19 offices globally. Our core services to members include education, training, technical support and advocacy. Employees and members work together with local and international bodies to represent the views and concerns of the profession to governments, regulators, industries, academia and the community.

www.cpaaustralia.com.au

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SENTRIENT has made available an online course, for free, to create awareness for infection prevention and control for all staff in Australian workplaces including employees, contractors and volunteers.

The 15-minute online course for infection prevention and control is a free resource to support small and medium businesses and larger organisations across all industry sectors and for people located in Australia and overseas. It provides an awareness of basic hygiene and how to prevent and control the spread of infection in the workplace.

Sentrient managing director, Gavin Altus, said that social media can often present misinformation about outbreaks of viruses and that employers have a responsibility to reinforce good health and safety practises in the workplace when it comes to situations that pose a risk for infection.

“The content of the course is simple to navigate, easy to understand and provides links to credible resources such as the World Health Organisation, UNICEF, Australian Government Department of Health and Smartraveller, and it is relatable to people from all Australian workplaces," Mr Altus said.

“The online course can be downloaded by an employer and rolled out via their existing learning management system within just minutes, making it really easy for employers to do the right thing and to help protect their people and their clients.”

Sentrient support hundreds of small and medium businesses and larger organisations in Australia with various compliance related content, mainly in the area of behavioural compliance. They are advocates for employers creating safe, inclusive and respectful workplaces.

After numerous requests for support with training on infection prevention and control, Sentrient felt they should go beyond supporting their own client base and instead create a resource that could be used by many.

Click here to find out more information about the infection prevention and control course and for further information contact Sentrient.

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THE Australian Parliament’s Tax and Revenue Committee has launched an inquiry into the Commissioner of Taxation Annual Report 2018-19.

As Australia’s principal revenue collection body, the annual report is a key mechanism for the ATO’s accountability to the Government and the Australian community. The 2018-19 annual report is the most recently tabled annual report from the Commissioner of Taxation.

Jason Falinski, Chair of the Committee, said, "This inquiry provides an opportunity for the committee to continue ongoing monitoring of the operations of the Australian Taxation Office and its interaction with the Australian community."

Submissions from interested individuals and organisations are invited by Friday, 17 April 2020. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

Further information about the inquiry including the terms of reference is available on the Committee’s website.

Public hearing details

Public hearings for the inquiry will be held in due course and notified through the Committee’s website.

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THE Morrison Government’s arrangement to store Australia’s emergency fuel reserves in the United States is nothing more than an accounting trick that will do nothing to ensure the country’s resilience to a global crisis that disrupts fuel supplies, the Maritime Union of Australia has warned.

Energy Minister Angus Taylor announced the signing of an agreement to allow Australia to lease storage space in the US Strategic Petroleum Reserve, using that oil stored on the other side of the world to technically meet the International Energy Agency’s minimum 90-day fuel stockholding obligation.

The arrangement has provided no details of how that oil stockpile would assist Australia in a genuine crisis, how long it would take to bring to Australia, or how it would be transported when there are no Australian-owned oil tankers.

MUA Assistant National Secretary Ian Bray said the IEA requirement for minimum fuel reserves — which Australia has been in breach of since 2012 — were about ensuring adequate reserves were available to address potential shipping disruptions caused by military conflicts, economic crisis, or natural disasters.

“More than 90 percent of Australia’s fuel is imported, all on foreign tankers, yet in recent years the country has regularly had just a few weeks of fuel available, putting the economy at risk of grinding to a halt if any major incident cut those supplies,” Mr Bray said.

“To claim that storing Australian-owned oil in the US Strategic Petroleum Reserve will somehow solve this is fanciful, especially as the Morrison Government has provided no information on how it would transport those fuel supplies during a crisis.

“This agreement with the US is nothing more than an accounting trick that aims to placate the International Energy Agency while doing absolutely nothing to deliver fuel security for Australia.”

Mr Bray said the Morrison Government should take advantage of a collapse in global oil prices to construct a domestic fuel reserve, ensuring the products needed for transport, aviation and industry were on Australian soil and ready to use during any future crisis.

“The US has had a Strategic Petroleum Reserve for decades, which they consider a critical asset for their energy and national security,” he said.

“Rather than look to accounting tricks, the Morrison Government should emulate that model and construct a domestic fuel reserve that ensures adequate supplies of fuel are always available to address potential shipping disruptions caused by military conflicts, economic crisis, or natural disasters.

“Given it takes a supply chain of approximately 60 full-time fuel import tankers to supply petrol, diesel and jet fuel to Australia, and Australia has no ownership or control of any part of that supply chain, the Australian Government should also look to develop a strategic fleet that includes Australian-owned oil tankers to ensure supplies can continue during times of crisis.

“Given the short timeframes involved during the kind of emergencies where fuel supplies might be threatened, the Morrison Government’s solution of storing emergency fuel halfway around the world is not only fanciful, its recklessness puts the Australian economy at genuine risk.

“With the growing coronavirus pandemic already causing problems with supply, and businesses and households facing shortages of some products, it would be in the national interest if fuel wasn’t added to that list.

“A cut to fuel supplies wouldn’t just impact the transport sector, it would jeopardise our national food security and devastate local manufacturing, including some pharmaceuticals.”

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed the Federal Government’s announcement today of a new $10,000 grant and simplified access to existing loans for small businesses impacted by the recent bushfires.

“It’s great to see both the Federal and NSW governments recognise the problems small businesses are experiencing during the bushfire recovery process,” Ms Carnell said.

“The excessive red tape and unnecessary bureaucracy standing in the way of small business owners getting the loans or grants they are entitled to, is counterproductive.

“The announcement today of the $10,000 grant will help businesses affected by the bushfires to stay afloat and keep their staff.

“This money can be used in a variety of ways so I urge small businesses to see their local financial advisor to put together a plan to get through the next six to 12 months.

“The announcement also outlines a reduction in bureaucratic requirements for eligibility for low-interest loans which will make it easier for small businesses to apply," Ms Carnell said.

 “We understand that many small business owners are not confident enough to apply for loans, but for those who have decided to continue on with their business, these loans are a good option to help businesses get back on their feet.”

Further details are available on the National Bushfire Recovery Agency website at www.bushfirerecovery.gov.au/recovery-assistance/small-business.

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INSURANCE law firm, Maurice Blackburn has called out the life insurance industry’s failure to meaningfully reform its claims assessment culture and processes in the wake of a highly critical independent report showing widespread non-compliance with its Code of Practice.

An investigation by the administrator of the Code, the Life Code Compliance Committee (LCCC) found many insurers breached their commitment to process insurance claims and requests for reviews within certain timeframes.

The investigation was sparked by a bulk complaint lodged by Maurice Blackburn in early 2018 which alleged more than 700 instances of breaches of the insurers’ industry code within a six month period in 2017.

Maurice Blackburn Principal, Josh Mennen said today’s findings by the LCCC lend weight to the view that many insurers failed to sign up to the Code of Practice in good faith and with due preparations but rather in an attempt to rebuild their public image after damning media stories at the time.

“Today’s report suggests that despite all the rhetoric and promises to do better before and after the Hayne Royal Commission, many insurers have treated their own code as a paper tiger and this casts doubt on the industry’s ability to rebuild public trust," Mr Mennen said.

“I applaud the LCCC for taking these breaches seriously and for using them to identify the continuing systemic problems within the industry. These hundreds of confirmed breaches are merely the tip of the iceberg because no doubt many more have gone undiscovered since I lodged this complaint with the LCCC two years ago.

“Given all these breaches of the Code relate to delays in the processing of consumers’ claims, the insurers should take immediate action to pay compensation, including penalty interest,” Mr Mennen said.

“We look forward to hearing a proposal for compensation from each of the insurers.”

In investigating the bulk complaint, the LCCC sampled a small number of alleged breaches and identified the systemic issues which caused the unreasonable delays and then tasked the insurers to apply those gaps and inadequacies across the affected consumers’ cases.

“So the finding that 315 breach notices were upheld is the number that the insurers were willing to accept were indeed unreasonable delays,” Mr Mennen said.

“And while Maurice Blackburn remains firmly of the belief that all 700 breach notices were genuine, we accept that the LCCC doesn’t have the resources or the mandate to investigate every single one.

“We continue to see unreasonable delay and poor communication by some insurers, however it is pleasing to see the LCCC was able to use a sample of our bulk complaint to identify the systemic and cultural problems still plaguing the industry, with a view improving the industry’s treatment of its customers” Mr Mennen said.

“It defies belief that almost four years after the code commenced, insurers are still yet to implement appropriate training and documents management systems to ensure compliance with their own code.”

The LCCC also criticised the insurers for failing to respond and cooperate with the LCCC in a timely manner.

“Clearly, many of the insurers must see the administrator of the Code as a toothless tiger when they take over a year to respond to its requests," Mr Mennen said.

“Despite the LCCC’s best endeavours, this attitude is unlikely to change until the Code of Practice is given teeth through regulatory oversight by ASIC and meaningful sanctions for any breaches,” he said.

“Furthermore, it’s very disappointing that the LCCC lacks the power to identify the worst offending insurers because it hasn’t been built into its charter.

“This is a level of transparency that is employed to the industry ombudsman, AFCA and the same authority should be given to the LCCC,” Mr Mennen said.

“We know there is a vast discrepancy between the insurers in terms of effort to address these systemic problems and de-identifying the worst performers unfairly tarnishes the others.

“Had the Code had real teeth as we have been calling for several years, our clients’ cases would not have been impacted with significant delays and would instead have been dealt with in a timely fashion. “

www.mauriceblackburn.com.au

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