Special COVID-19 Superannuation Condition of Release Extended
Regulations that extend the time frame of the special condition of release to access
$10,000 from superannuation for individuals experiencing financial difficulties due to COVID-19
have been formally registered.
The ability to withdraw up to $10,000 from superannuation (if certain conditions are
met) was initially set to expire on 24 September 2020.
The newly registered Regulations to the SIS Act will now enable an eligible individual to withdraw
up to $10,000 from superannuation (which is not assessable to the individual) until 31 December
To be eligible, a citizen or permanent resident of Australia (and New Zealand) must require
the COVID-19 early release of super to assist them to deal with the adverse economic effects of
In addition, one of the following circumstances must apply:
θ The individual is unemployed;
θ The individual is eligible to receive one of the following;
– JobSeeker payment;
– Youth Allowance for job seekers (unless they are undertaking full-time study or are a new
– Parenting payment (which includes the single and partnered payments);
– Special Benefit; or
– Farm Household Allowance;
θ On or after 1 January 2020 either;
– they were made redundant;
– their working hours were reduced by 20% or more (including to zero); or
– they were a sole trader and their business was suspended or there was a reduction in turnover
of 20% or more (partners in a partnership are not eligible unless the partner satisfies any other
Tax treatment of JobKeeper Payments
Broadly, JobKeeper Payments received by an employer are assessable income to the employer.
Likewise, the payments an employer subsequently makes to an employee that
are funded (in whole or in part by the JobKeeper Payment) are generally allowable
deductions to the employer.
The ATO has recently issued some guidance for employers in receipt of JobKeeper Payments.
For sole traders, they will need to include the payments as business income in their
individual tax return.
For partnerships or trusts, JobKeeper payments should be reported as business income in
the relevant partnership or trust tax return.
For a company, report JobKeeper payments as income in the company tax return.
For a taxpayer that has repaid (or is in the process of repaying) any of their JobKeeper payments
to the ATO, these amounts do not need to be included in their tax return.
Note a business would be refunding JobKeeper payments to the ATO if it had been discovered that
the business had incorrectly claimed JobKeeper payments, and had either voluntarily disclosed
this to the ATO, or the ATO made this determination as a result of audit activity.
The normal rules for deductibility apply in respect of the amounts a taxpayer pays to
their employees, even where those amounts are subsidised by the JobKeeper payment.
That is, if the underlying salary is deductible, then it is still deductible to the employer where
it has been subsidised by a JobKeeper payment.
For employees who have received JobKeeper payments, these will be included as salary and
wages (or an allowance) in their income statement (or payment summary) as provided by
If you have any queries about the JobKeeper Payment scheme, please contact our office.
Deduction for work-related vehicle expenses disallowed
In a decision of the Administrative Appeals Tribunal, a taxpayer, Mr Bell, was a
denied a deduction for $21,565.73 of work-related vehicle expenses for the 2016 income year.
Mr Bell, was a construction worker who predominantly worked on a construction
site in an eastern suburb of Melbourne and lived approximately 100 kilometres
away from that worksite.
Mr Bell owned a ute that had a load carrying capacity of more than one tonne – so it fell
outside the definition of a 'car' for the purposes of the ITAA 1997.
Mr Bell claimed a total deduction for $24,865.73 for motor vehicle expenses and received an
allowance under his Enterprise Bargaining Agreement.
This allowance did not vary with the amount of travel undertaken and totalled $15,221
for the year.
Mr Bell contended that he was required to use his vehicle to transport heavy/bulky goods
(tools) between his home and his workplace and to collect supplies and equipment from
hardware stores while travelling between his workplace and his home.
Ordinarily, travel from home-to-work (and back again) is considered non-deductible. However,
if an employee is required to carry heavy/bulky
equipment for which there are no secure storage facilities at work, the travel
between home and work with the heavy/bulky equipment can be considered deductible.
Unfortunately for Mr Bell, evidence before the Tribunal indicated that there were safe and
secure storage facilities for his tools (the bulky/heavy equipment) at the worksite.
Accordingly, Mr Bell was unable to rely upon the ‘bulky goods’ exception to recharacterise home-
to-work travel as being a deductible work expense.
Instead, it retained its ordinary private and non- deductible status.
Mr Bell was unsuccessful in advancing the argument that he was entitled to a deduction
in relation to the motor vehicle expenses because he was in receipt of an allowance.
However, Mr Bell was able to convince the ATO that he had undertaken at least some work-related
travel using his vehicle. The ATO allowed Mr Bell a deduction under the 'cents per
kilometre method' up to the maximum dollar amount for 5,000 kilometres for the 2016
income year of
Editor: This decision provides a timely reminder that simply carrying bulky equipment
between home and work will not make these trips deductible, where there is a secure
place for the equipment to be stored at the employee’s worksite. The decision also
highlights the fallacy of assuming that being in receipt of an allowance somehow entitles the
taxpayer to an offsetting deduction.
The taxpayer was technically 'lucky' that he was allowed the 'cents per kilometre
method' deduction for work-related travel, given that his motor vehicle fell outside the
definition of a 'car'.
This is because the cents per kilometre method only applies to 'cars', so it could be said that the
ATO was generous to the taxpayer in these circumstances.
Please contact our office if you have any queries as to the deductibility of work-related travel.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
The health, safety and wellbeing of our staff and clients is extremely important to us. We have adopted the following practices in accordance with the advice of the Federal Government Department of Health so that we can ensure the safety of our staff, clients and other visitors to our office:-
1. We ensure that any employee who is not well, or who have recently returned from overseas, seeks medical advice and, where appropriate, follows the isolation guidelines issued by the Australian Government Department of Health.
2. We provide hand washing facilities and regularly sanitise surfaces, door handles etc in our office.
3. We ask our clients who have returned from overseas in the last 14 days, or who have symptoms associated with the virus to conduct meetings with us by telephone.
We are committed to continuing to monitor the situation and adopt the recommendations of The Australian Government Department of Health as applicable.
We trust that these measures will be adopted by all and welcome any feedback or questions you may have by contacting Monica McKendry of our office.
This measure will provide a credit of minimum of $2,000 and a maximum of $25,000 to eligible businesses that employ workers with an annual turnover under $50m.
The credit will be applied in the Business Activity Statements for the quarters ending 31 March 2020 and 30 June 2020. Monthly GST or PAYG withholding remitters who lodge Instalment Activity Statements will claim the credit in the activity statements for the months of March, April, May and June 2020.
The credit is calculated as the greater of $2,000 and 50% of the amount of PAYG withholding tax withheld from employee’s salary and wages up to a maximum of $25,000.
Monthly withholders calculate the credit at three times (150% the rate).
The credit will reduce the balance of the business activity statement liability and where this places this places the business in a refund position, the ATO will refund the credit within 14 days.
1. your business does not have to apply for the credit.
2. if your business employs you will receive a credit of at least $2,000.
2. your business may not receive a cash payment if your business GST, PAYG withholding and income tax obligations are greater than the credit.
Further information is available from The Australian Government Treasury website here: