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Welcome to Twomey Talk where you can take advantage of the specialist knowledge of our team & learn their thoughts on various issues that may
impact YOU!

TWOMEYS COMMUNITY INVOLVEMENT

Twomeys, through their support of the Count Charitable Foundation were able to facilitate the donations of $5,000 to Can Assist Network to financially assist people in Country NSW affected by cancer, $2,500 to the Rural

Outreach Counselling Inc to be used toward the funding of "Mate Helping Mate's" podcast, hosted by John Harper and also $1,250 each to Riding for the Disabled Cootamundra and Young to support the delivery of their on-going programs.


DROUGHT ASSISTANCE

DROUGHT ASSISTANCE FUND
The Drought Assistance Fund provides a $50,000 interest free seven year loan to transport stock, fodder and water; genetic banking of breeding herds, fodder and water infrastructure and activities which promote profitability and resilience as a result of the on-farm investment. No repayment is required in the first two years.

www.raa.nsw.gov.au/loans/drought-assistance-fund

FARM INNOVATION FUND
The Farm Innovation Fund provides a low interest loan scheme to build permanent infrastructure to a maximum of $1,000,000 per project. The Farm Innovation Funds helps to improve farm productivity, managed adverse seasonal conditions and ensure long term sustainability. The Interest rate is fixed at 2.5% and the loan is for a maximum 20 year period.

www.raa.nsw.gov.au/loans/farm-innovation-fund

EMERGENCY DROUGHT TRANSPORT SUBSIDY

The Emergency Drought Transport Subsidy is a transport subsidy of up to 50% of the total freight cost and can be applied to the cost of transporting fodder, water to a property for stock or domestic use, stock to and fromagistment, and stock to sale or slaughter. For applications received from 1 July 2019 the subsidy also includes transporting of farm chemicals, fertiliser and seed to farms.

Round Three of the Drought Transport Subsidy has been announced and can be applied for from 1 July 2020. Farmers have until 30 September 2020 to submit invoices for the period 1 January 2018 – 30 June 2020.

Apply at www.raa.nsw.gov.au/grants/transport-subsidyemergency-drought-relief

EMERGENCY WATER INFRASTRUCTURE REBATE SCHEME

Funding for the Emergency Water Infrastructure Rebate (EWIR) Scheme has been exhausted and the EWIR scheme is now closed to new applicants.

DROUGHT COMMUNITY SUPPORT INITIATIVE (DCSI) – Round 2

Farmers, farm workers, farm suppliers and farm contractors who are struggling financially can apply for a $3,000 grant funded by the Australian Government's Drought Community Support Initiative (DCSI) – Round 2. Recipients must live in specified Local Government Areas (LGA) – these include Hilltops, Cootamundra-Gundagai*, Cowra*, Bland*, Weddin*, Parkes and Forbes*. The funding is administered by the Salvation Army (indicated with a *) or Vinnies depending on the LGA. To apply online, go to salvationarmy.org.au/drought or vinnies.org.au/droughthelp

CWA OF NSW DROUGHT AID

Farmers, farming dependent contractors and farming dependent families located in drought areas can apply for a $3,000 grant to help meet household expenses. To apply online, go to cwaofnsw.org.au/droughtaid

RURAL AID

Rural Aid is offering Primary Producers a one off $1,000 payment to assist with bill expenses. To apply, you must first register with Rural Aid and then complete the online application form. To register, go to buyabale.com.au/can-we-help-you To apply, go to ruralaid.org.au/faa

DROUGHT ANGELS
Drought Angels provide support to registered primary producers by providing food hampers, care packs, prepaid visas and local store vouchers. To apply, go to droughtangels.org.au/apply-for-assistance

COVID-19 ECONOMIC SUPPORT

JobKeeper – if your business has suffered a 30% decrease in turnover, you may be able to access a $1,500 per fortnight subsidy for your eligible employees and also for your business if your business has an Eligible Business Participant.

Cash Flow Boost – businesses that employ people are eligible for a Cash Flow Boost of between $20,000 - $100,000 upon lodgement of their March – September 2020 Activity Statements. The Cash Flow Boost is nontaxable and is applied automatically upon lodgement of the relevant Activity Statements.

Instant Asset Write-Off Threshold – the instant asset write-off threshold increased from $30,000 to $150,000 and expanded to include businesses with a turn-over of less than $500,000 million from 12 March 2020 until 31 December 2020. From 1 January 2021 the instant asset write-off threshold will only be available for businesses with a turnover of less than $10 million and the threshold will be $1,000.

Investment Incentive – businesses with a turnover of less than $500,000 million can deduct 50% of the cost of NEW assets over the immediate write-off thresholds, with normal depreciation rules applying to the balance of the asset's cost. The investment incentive applies to NEW assets first used or installed ready for use during the period 12 March 2020 – 30 June 2021 and will enable small businesses to deduct 57.5% of the asset's cost in the first year.

Apprentices and Trainees – eligible employers can apply for a wage subsidy of 50% of their apprentice or trainee's wage until 30 September 2020, up to a maximum of $21,000 per eligible apprentice or trainee. Where a small business is not able to retain an apprentice, the subsidy is available to a new employer that employs the apprentice.

Early release of Superannuation – individuals affected by COVID-19 are allowed to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Superannuation minimum drawdown rates reduced – superannuation minimum drawdown rates for accountbased pensions have been reduced by 50% for 2019-20 and 2020-21.

HomeBuilder – HomeBuilder will provide eligible owneroccupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020. Construction must commence within 3 months of contract date and if a new home, the property value must not exceed $750,000 or if a renovation, the renovation contract must be between $150,000 - $750,000 and the value of the existing property (house and land) must not exceed $1.5 million (pre-renovation). Income must be less than $125,000 for an individual or $200,000 for a couple.

NSW Small Business COVID-19 Support Grant – a grant of $10,000 is available for small businesses that have been highly impacted by the NSW Government COVID-19 Restrictions on Gathering and Movement Order 2020 and experienced a 75% decline in turnover compared to thesame two-week period in 2019. To be eligible businesses must have an annual turnover of more than $75,000, employ between 0.5 – 20 full-time equivalent (FTE) employees (based on a 35 hour week) and have total wages less than the payroll tax threshold of $900,000. Applications are made through Service NSW and close at 11.59pm on 30 June 2020.

NSW Small Business COVID-19 Recovery Grant – a grant of $3,000 is available to help businesses recover from the NSW Government COVID-19 Restrictions on Gathering and Movement Order 2020. Eligibility is similar to the original NSW Small Business COVID-19 Support Grant, except only a 30% decline in turnover compared to the same two-week period in 2019 is required.

From 1 July 2020, superannuation members aged 65 and 66 can make voluntary contributions to superannuation without having to meet the work test, and the cut-off age for spouse contributions has been increased from 70 years to 75 years.

The proposed rule to enable members aged 65 and 66 to make up to three years of non-concessional contributions to superannuation under the bring forward rule has not yet been legislated.

From 1 July 2018 if you have a total superannuation balance of less than $500,000 on 30 June of the previous financial year, you may be entitled to contribute more than the general concessional contributions cap and make additional concessional contributions for any unused amounts.

2020-21 is the second year you are entitled to use carried forward unused amounts. Unused amounts are available for a maximum of five years, and after this period will expire.

For example, if you had concessional contributions of $5,000 in 2018-19 and $5,000 in 2019-20, your unused amount would be $40,000 ($20,000 from each year).

Your general concessional contributions cap in 2020-21 is $25,000, allowing a maximum concessional contribution in 2020-21 of $65,000. 

The superannuation concessional contribution cap for the 2020-21 financial year is $25,000.

Concessional contributions include:
- compulsory employer contributions (superannuation guarantee)
- any additional concessional contributions your employer makes
- salary sacrifice payments made to your super fund
- personal contributions you claim as an income tax deduction.

FUEL TAX CREDIT RATES 2020

Fuel tax credit rates increased on 3 February 2020. The new rates are 16.5 c/litre for heavy vehicles travelling on public roads and 42.3 c/litre for vehicles travelling off public roads and powering auxiliary equipment of a heavy vehicle.

Michael Twomey graduated from the University of NSW with a Bachelor of Commerce in 1973. He completed his Institute of Chartered Accountants (ICAA) Professional Year in 1975 and was admitted as a member of the ICAA on 8 September, 1975. At the time, he was the ICAA's youngest member. Michael was promoted to a Fellow with the ICAA on 21 June, 1991.

Michael spent all of the 1970's working for big 4 firms. He commenced his career as a trainee accountant and later auditor with Peat Marwick Mitchell (now KPMG) in 1970. He moved to Arthur Young (now Ernst Young) in 1975 and spent time in their Sydney and London offices working his way through the ranks as an Australian and International company and superannuation auditor. In the late 1970's

Michael was seconded to the ICAA to review annual reports of ASX listed companies for compliance with accounting standards The opportunity arose in 1980 to move back to Cootamundra and join his brother Geoff at Twomey & Twomey. The admission of Michael to the partnership enabled their father Frank Twomey to retire. Michael and Maree were excited to return to Cootamundra and start their now adult family. They enjoyed raising their five children in the country and are particularly proud of their children's own successful careers and families. 

 

Over the last 40 years, Michael has seen the size of Twomeys grow from one office with seven people in 1980, to over thirty people spread across four offices today. One of Michael's career highlights was the opening of the Young office in the early 1990's, enabling Twomeys to better service clients from Quandialla, Milvale, Bribbaree and surrounding areas who had been nurtured by Frank Twomey over many years.

According to Michael, he has enjoyed his 40 years at Twomeys due to the knowledge, skills, support and loyalty of all those who have been and are still part of Twomeys.

Over that time, Michael has developed a loyal and diverse client base and is respected by many far and wide.

We congratulate Michael on achieving this significant milestone of 40 years with Twomeys.

Twomeys are excited to welcome Peter Maher, three of his team members and Peter's many clients to our Young office from 1 July 2020. Peter, who specialises in Business Advisory work will join Twomeys, together

with his wife Anna, Ash Kinlyside and Kyarni Gall. 

Peter is well known in the local community in Young and brings to Twomeys a wealth of experience in the accounting industry, together with a passion for business advisory work. Peter is dedicated to building client relationships and assisting his clients with their financial development by working closely with them from a very early stage to ensure success and fulfilment of their goals.

He is committed to ensuring that his clients are using the latest technology to improve their business and also measure the success of their business.

Peter is a trusted and respected advisor who is looking forward to working with our team to service both existing and new clients.

The continued growth and development of Twomeys has resulted in a review of our internal practice structure and from 1 July 2020, the accounting and business services division of Twomeys will trade under a new ABN, Tax Agent Number and business name "Twomeys Accounting and Advisory Pty Ltd", with the remainder of the business still operating under Twomeys Pty Ltd and our existing ABN. This is an internal restructure only and all our existing services and practices will remain the same.
  • There will be a temporary reduction to superannuation minimum drawdown requirements for account based pensions and similar products by 50 per cent for 2019-20 and 2020-21.