COVID-19
As businesses navigate challenging times, KPMG Tax Now is providing practical and insightful information to assist you during COVID-19.
The KPMG Business Assist tool has also been developed to provide employers the ability to self-assess their eligibility for various government assistance measures, including the JobKeeper payment and Cash Flow Boost. With changes to the JobKeeper payment recently announced, employers will need to re-assess their eligibility according to the new criteria. The KPMG Business Assist tool has been updated to incorporate these changes and help your business determine whether or not it is eligible for JobKeeper 2.0.

Latest COVID-19 Content
KPMG proposes revamp of employee share schemes as COVID-19 recovery tool
27 November 2020
A revamped and two-year only employee share scheme (ESS) proposal could be a valuable mechanism to align the interests of employers and workers, as Australia attempts to emerge from the COVID-19 recession. KPMG’s COVID-19 Accelerated Recovery Employee Shares (CARES) plan avoids some of the limitations of the current ESS regime. It would allow employees to acquire a higher value of tax-free sh...
Family business sector needs tax boost to emerge from COVID-19
22 October 2020
It is often said that the Small to Medium-Sized Enterprise (SME) sector is the engine-room of the economy. But it is not an overstatement to say that family business is the very foundation of the global economy.Did you know that family-owned enterprises account for two-thirds or more of businesses globally, contributing 70 to 90 percent of annual global GDP and 50 to 80 percent of employment?Th...
COVID-19 could herald new era of European divergence
22 October 2020
A resurgence in COVID-19 infections has led to additional measures being announced across Europe in the past two weeks to contain the pandemic.The inevitable economic fallout could slow and even reverse, the nascent economic recovery, bringing with it the danger of a double-dip recession.While most European economies are under significant strain from the pandemic, their prospects coming out of ...
Company purpose, employee engagement top of CEOs’ COVID-era focus
30 September 2020
While COVID-19 has been a traumatic experience for everyone and has damaged economic activity, it has nonetheless been a catalyst for some positive and long-lasting impacts on businesses.This is clear from KPMG’s annual survey of global and Australian CEOs. The original survey of 1300 CEOs across the globe was conducted in January and February, before COVID-19 hit, but was supplemented by a sec...
COVID-19 sparks significant change in Australian law making
22 September 2020
Few areas of Australian society have been spared the effects of COVID-19.Changes to our economy, social interactions, places of work and education are apparent and, at times, unmistakeable. However, many may not realise the significant impact of the global pandemic on another critical but sometimes overlooked sphere – law-making.The increased risks associated with congregating in groups and int...
Webinar: ATO compliance programs Post COVID-19
14 September 2020
With the impact of COVID-19 weighing heavily on the federal budget, the Australian Taxation Office’s (ATO) responsibility to ensure that taxpayers comply with their obligations is heightened.This will require that the ATO's Private Wealth group acts positively in its discussions with taxpayers, and their agents, by communicating effectively as regards expectations and proposed engagement. Essen...
COVID-19 business support measures: What’s still available?
31 August 2020
The Federal Government announced an extension of its wage subsidy initiative on 21 July, the JobKeeper payment, which aims to ensure that employees effected by COVID-19 would be supported until 28 March 2021.The extension, a new tiered payment structure, is to be operational from 28 September 2020 and requires businesses to meet updated criteria relating to their decline in turnover. These chan...
US Economic Outlook: Riding the COVID-19 coaster
27 August 2020
The COVID-19 economic downturn is impacting different sectors in the United States (US) than the Global Financial Crisis, with leisure and hospitality and health care taking the brunt of the job losses now, compared with construction, manufacturing, and financial services taking the brunt of the job losses in 2008-2009.Like pandemics throughout history, we anticipate COVID-19 will have a disrup...
Post-COVID-19 stimulus measures in Asia-Pacific, Africa
24 August 2020
This report on the roundtable event, which was held under the Chatham House rule, summarises some of the views expressed.Corporate tax rate reductions as a policy measureIt was noted that in the context of identifying measures that would have an immediate and high impact, the speed of impact of corporate tax rate reductions were questionable. Also, a number of countries and jurisdictions alread...
Administering car fringe benefits in COVID-19-era
21 August 2020
The Australian Taxation Office (ATO) has issued a new fact sheet for employers in which it provides an overview of how it will administer the fringe benefits tax (FBT) legislation where the circumstances in which an employer provides a car fringe benefit have been affected by COVID-19.The ATO emphasises that if the employer is using the statutory formula method to calculate the taxable value of...
Year-end tax implications for managed funds amid COVID-19 downturn
11 August 2020
As with almost every other aspect of daily life, the COVID-19 pandemic has had a significant impact on the year-end distributions from Australian managed funds.High levels of equity market volatility and sharp movements in foreign exchange rates, particularly from March through to June, have meant that many funds that were previously on track for a positive year-end performance have experienced...
ATO compliance: COVID-19 tax scams
31 July 2020
The Australian Taxation Office (ATO) says it is aware of a significant increase in Australians being targeted by cyber criminals, including COVID-19 scams, fraud attempts and deceptive email and SMS schemes.While tax scams are not new, it seems cyber criminals are attracted to the relatively large sums that are potentially being paid to individuals and businesses where these recipients are not ...
Self-reliant India: What will be India’s fiscal response to COVID-19?
31 July 2020
India’s Prime Minister Narendra Modi first introduced the concept of 'Atmanirbhar Bharat Abhiyan' or 'Self-Reliant India Mission' earlier this year, as he announced the Government’s response to COVID-19.As interpreted by other Ministers of the Government since, the policy “does not mean cutting off from rest of the world" but rather translates to India “being a bigger and more important part of...
COVID-19, Brexit place UK supply chains back in the spotlight
27 July 2020
Global supply chains have come under renewed pressure during the COVID-19 pandemic, which comes hot on the heels of Brexit-related concerns and geopolitical tensions between the United States (US) and China last year.The initial outbreak, which began in the industrial city of Wuhan, caused shortages of components in the manufacturing sector. Even as early as February, when the official number o...
Work from home expenses and COVID-19: ATO releases PCG 2020/3
8 July 2020
The Australian Taxation Office (ATO) has released PCG 2020/3 Claiming deductions for additional running expenses incurred whilst working from home due to COVID 19, which will be relevant to employees and business owners preparing tax returns for the financial year ended 30 June 2020 and beyond.Broadly, you can use what is known as at the ‘shortcut rate’ to calculate additional running expenses ...
Geopolitics, tax and COVID-19: The great accelerator
26 June 2020
COVID-19 has brought into sharp focus the multitude of systemic challenges facing our interconnected world, but what impact will the pandemic have on the international tax system?Taxation regimes will need to negotiate these unpredictable times.This article explores a recent podcast conversation between KPMG’s Australian Geopolitics Hub Director Merriden Varrall and KPMG’s National Leader of In...
Transfer pricing and COVID-19: Arm’s length conditions in the new normal
23 June 2020
Changes being made to transfer pricing policies in a COVID-19 environment are coming under closer scrutiny by the Australian Taxation Office (ATO).The ATO released further guidance late last Friday on ‘COVID-19 economic impacts on transfer pricing arrangements’ and ‘Changing related party arrangements’.The fact that the ATO is providing guidance on ways to evidence the impact of COVID-19 is wel...
Tax after COVID-19: An opportunity to build back better?
22 June 2020
Different jurisdictions and companies are being affected by the COVID-19 outbreak in different ways and according to various timescales, including Australia.Within KPMG International (KPMGI) we look at this in four phases:Reaction - the immediate response as the pandemic hits and lockdowns are imposed;Resilience - measures required as lockdown conditions continue;Recovery - as lockdowns are lif...
COVID-19 webinar: Rising to the demands of a new reality
16 June 2020
Register for this sessionThough much is still unknown, we’ve learned a lot since this all began. This webcast, the final in KPMG International’s ‘Keeping Connected Globally’ virtual meeting series, will be an opportunity to explore the changes we’ve seen and the expectations for the future, and a chance to reflect on what you’ve told us along the way. We hope you can join our webcast series fin...
Podcast Episode 13: International tax trends, COVID-19 recovery
12 June 2020
With structural shifts to the international tax system already underway prior to COVID-19, what additional change or policies might emerge as governments around the world regain control?  KPMG’s National Leader of International Tax Peter Madden and KPMG’s Australian Geopolitics Hub Director Merriden Varrall discuss some of the emerging international tax trends in the context of COVID-19.“T...
Webinar recording: Global disputes in a COVID-19 era
29 May 2020
There is no doubt that post novel coronavirus (COVID-19), things will be different for both taxpayers and the revenue authorities. In this session, senior officials from the Australian Taxation Office (ATO), Her Majesty's Revenue and Customs (HMRC) and the Internal Revenue Service (IRS) consider what taxpayers and tax authorities are currently dealing with, how they might adapt to the new reali...
Webinar recording: Real estate and infrastructure funds: COVID-19 distributions
29 May 2020
With the economic impacts of COVID-19 resulting in decreased revenues and government-endorsed relief arrangements (e.g. commercial tenancy relief), investors in real estate and infrastructure assets are having to consider the consequences of lower amounts of cash being available for distributions in the 2020 income year, either due to reduced income and/or cash retention for working capital pur...
COVID-19: The new norm for a sales force
27 May 2020
How companies plan to structure their sales teams, and supporting teams, to respond to changing customer demands and requirements will be a differentiating factor across many industry sectors.Sales force operational structures will need to changeThe standard approach to sales structures and operating models are based on traditional call cycles that are account and geography-coverage based – thi...
Webinar: Global disputes in a COVID-19 era
22 May 2020
There is no doubt that post novel coronavirus (COVID-19), things will be different for both taxpayers and the revenue authorities.In this session, we will be joined by senior officials from the Australian Taxation Office (ATO), Her Majesty's Revenue and Customs (HMRC) and the Internal Revenue Service (IRS) to consider what taxpayers and tax authorities are currently dealing with, how they might...
COVID-19: To pay or not to pay tax in New Zealand?
20 May 2020
“Revenue is vanity, profit is sanity, but cash is king”Like many of the best quotes, the origin of this one has been lost to the winds of time. However, its words have never been more appropriate in today’s environment. As anybody who has run a business knows, “cash flow is everything”.Many New Zealand businesses are feeling the full force of the COVID-19 impacts and it is becoming increasingly...
COVID-19 era disrupts, challenges super funds
19 May 2020
The COVID-19 crisis has added even more complexity to a rapidly-changing super fund sector and has disrupted established market trends. Everything has been thrown into the air.KPMG’s fourth annual Super Insights report analyses the most current available data from the Australian Prudential Regulation Authority (APRA) and the Australian Taxation Office (ATO), as at 30 June 2019, covering the who...
Real estate and infrastructure funds: COVID-19 distributions webinar
19 May 2020
Date: Thursday 28 May 2020 Time: 11:30am – 12:30pm AESTHosts: KPMG's Scott Farrell (Deal Advisory Tax), Minh Dao (Deal Advisory Tax), Ed Tong (Deal Advisory Tax), and John Moutsopoulos (KPMG Law).RegisterWith the economic impacts of COVID-19 resulting in decreased revenues and government-endorsed relief arrangements (e.g. commercial tenancy relief), investors in real estate and infras...
COVID-19: Government economic support in the Asia Pacific region
18 May 2020
During recent weeks, we have seen governments throughout the Asia-Pacific (ASPAC) region take significant measures to alleviate the burden of the COVID-19 pandemic on their citizens and their economies.The cost of the fiscal and financing measures that we are seeing rolled out would have been unimaginable mere months ago. Given the economic impacts of the pandemic, and the size of the support p...
COVID-19 presents unique remuneration challenges for boards
14 May 2020
The social and economic lock-downs instituted by the Federal and State Governments in response to COVID-19 have played out, unsurprisingly, in a wave of market volatility as different industries and companies are impacted in different ways. Some riding the crest of those waves, some wiped out – everyone startled by how far from shore we appear.These social and economic swells are resulting in u...
COVID-19: Asia-Pacific region – Implications for Australia
13 May 2020
The coronavirus (COVID-19) challenge will hit emerging economies hard – including those in the Asia-Pacific region neighbouring Australia. While problematic for those nations, new complexities in the region could also drive a number of economic and societal concerns for Australia.While China looks to have made headway in both fighting the virus and economic recovery, other countries in the regi...
OECD outlines role of tax and fiscal policies in response to COVID-19 pandemic
7 May 2020
The Organisation for Economic Cooperation and Development (OECD) says it’s deploying its data gathering and analytical capacities to help governments face COVID-19 challenges while supporting businesses and people towards economic recovery.In an update provided this week, the OECD noted governments are taking multifaceted actions to support their citizens and businesses and to maintain the prov...
COVID-19 webinar: JobKeeper Rules and ATO guidance update
3 May 2020
Date: Monday 4 May 2020 Time: 12:30pm – 1:30pm AESTHosts: KPMG’s Grant Wardell-Johnson (Lead Tax Partner, Economics & Tax Centre) and Andy Hutt (Director, Economics & Tax Centre).RegisterKPMG's Economics & Tax Centre invites you to a webinar in which we will examine the key changes to the JobKeeper Rules and updates to ATO guidance that have occurred since 22 April. These ...
COVID-19: Border Force announces temporary duty relief for select importers
1 May 2020
In a move welcomed by industry, that will provide immediate cash-flow benefits to traders, Australian Border Force has announced a new concession to provide a free rate of customs duty on certain medical and hygiene products imported for the immediate response to the COVID-19 pandemic.Item 57 and Customs By-Law No. 2019608 to Schedule 4 of the Customs Tariff Act 1995 (Cth) provides a free rate ...
COVID-19: Getting ready for reporting season – consideration of DTA recoverability
30 April 2020
As businesses continue to feel the impact of COVID-19, and with 30 June reporting season around the corner, it is important to not lose sight of the recoverability of Deferred Tax Assets (DTAs) and the work that should be undertaken in this regard.Management needs to consider the effect of any changes to their forecasting and the probability of future taxable profits.Australian Accounting Stand...
COVID-19: A dichotomy awaits tax functions
29 April 2020
The COVID-19 pandemic has affected every aspect of business and the tax function is no different.There is currently an important debate – and a dichotomy – which we observe many companies grappling with.The question can be boiled down to – do you focus on managing tax risk and your costs now or do you think more about building up your people and technology for the future?Of course there is no o...
Productivity key to repaying the COVID-19 debt
29 April 2020
Australia is in the middle of – hopefully – a once-in-a-generation health crisis that is causing a similarly unprecedented economic challenge. The Federal Government has responded well on both. The ‘save the furniture’ fiscal policy response will come with a gigantic bill, but the cost of inaction would surely have been significantly larger.Many are now querying the affordability of the policy ...
COVID-19: Tax Governance response
28 April 2020
The global financial crisis (GFC) was in part considered a governance and corporate morality crisis.During that crisis there was however the equal focus on cash and good management as there is now. Perhaps more poignant in the current crisis is the challenge of rapidly moving taxation developments where tax decisions need to be made when the treatments are not clear and the impact of business a...
COVID-19 Business Assist
27 April 2020
The KPMG Business Assist tool has been developed to provide employers the ability to self-assess their eligibility for various government assistance measures, including the JobKeeper payment and Cash Flow Boost.  In the wake of the economic impact due to COVID-19, Australian state and federal governments have put in place a range of measures to assist businesses bridge the period of restri...
International Tax update webinar: A cross-border perspective on COVID-19
27 April 2020
Businesses are needing to respond faster than ever to the evolving global economic and business landscape in the face of the pandemic, and many find themselves in unchartered waters.At the same time, the host of international tax issues facing multinationals and the focus of revenue authorities on these issues will remain. As governments start to deliberate methods of funding their COVID-19 sti...
COVID-19: Temporarily displaced employees – ATO guidance updated
24 April 2020
The updated guidance outlines factors that need to be considered in determining the source of an employee’s employment income.  These factors will be crucial in determining whether employees are subject to Australian income tax on that employment income, and consequently what the tax reporting and withholding obligations are for employers.Where it is determined that the employment income i...
Australia’s COVID-19 performance: A quantitative analysis
23 April 2020
KPMG has examined global COVID-19 deaths, cases and resulting case fatality ratios (CFRs) to better understand the drivers of the variation, and the extent to which Australia’s relatively good performance is a result of good luck, good management, or a combination of both.The analysis follows the Morrison Government releasing the Doherty Institute modelling that has informed its decisions to da...
COVID-19: Superannuation update for SMSF trustees
23 April 2020
The Federal Government has released a number of superannuation measures to assist those affect by the economic impact of coronavirus (COVID-19), this is how self-managed superannuation funds (SMSF) trustees could be affected.Alongside other stimulus efforts, the Government is allowing early access to super, changes to some pension requirements and rental reductions.Early release of superannuati...
Banking tax impacts amidst COVID-19
22 April 2020
It’s a rapidly moving picture in which new relief and support measures for businesses including banks and financial institutions are being announced by governments and authorities almost every day in countries around the world. One of the most important things for any bank is to keep pace with these developments and ensure they are able to factor the likely effects into their financial models a...
COVID-19: Franking credit planning opportunity
21 April 2020
With the COVID-19 pandemic negatively impacting the profitability of so many business, the payment of dividends by companies in the short term is something that many directors may feel they can ill afford to do.This said, there may be steps that directors can take now to protect a company’s ability to pay franked dividends in the future, when the current uncertainty subsides and confidence is r...
ATO clarifies FIFO employers’ FBT responsibilities for COVID-19 changes
20 April 2020
In the whirlwind past few weeks of COVID-19-related government announcements, you might have missed some crucial clarifications from the Australian Taxation Office (ATO) on the fringe benefits tax (FBT) treatment of certain benefits provided to rostered and rotational workers. This is a good news story – read on!For most professions, the social distancing requirements arising from the COVID-19 ...
COVID-19 webinar recording: JobKeeper payment legislation – key messages for employers
10 April 2020
The JobKeeper payment legislation, introduced by the Federal Government, passed both Houses of Parliament on Wednesday 8 April and received Royal Assent on Thursday 9 April.KPMG held this webinar to highlight the key actions and priorities that employers will need to consider in the coming days.Please note: Since this webinar was recorded, the Federal Government has released the Coronavirus Eco...
COVID-19 webinar: Capital management considerations in Transactions, Tax and Law
9 April 2020
This webinar is designed specifically for M&A practitioners, tax and legal professionals, to explore key considerations relating to the challenges and opportunities ahead.KPMG's Cecily Conroy (Partner and Head of Equity Capital Markets Advisory), David Willis (Partner and National Sector Leader, Private Equity), Scott Mesley (Partner and National Leader, Debt Advisory), Hoda Nahlous (Partne...
COVID-19 webinar: JobKeeper Payment Legislation – key messages for employers
8 April 2020
Parliament is expected to pass the JobKeeper Payment legislation on 8 April. Employers will need to act quickly to assess their eligibility and put systems in place to comply with the requirements. KPMG is hosting this webinar to highlight the key actions and priorities that employers will need to consider in the coming days.KPMG’s Grant Wardell-Johnson (Lead Tax Partner, KPMG Economics & T...
COVID-19: New M&A tax depreciation ‘sleeper’
8 April 2020
Among the amendments giving effect to the Federal Government’s Tranche 1 and Tranche 2 stimulus measures, was an interesting amendment contained in the Coronavirus Economic Response Package Omnibus Act 2020.This seemingly innocuous addition to section 705-45 of the Income Tax Assessment Act 1997 potentially has a far reaching and non-COVID-19 impact.Taking a step back for a moment, where an ent...
COVID-19: More considerations for tax functions – tax attributes
7 April 2020
As the full effects of COVID-19 hit businesses, it is crucial that tax attributes are available for use when business performance bounces back to something resembling ‘normal’.Where available, they can essentially mean that the pain felt was not a ‘permanent’ cost.Some key items in this regard that Tax Managers should be considering are:Losses – the satisfaction of loss recoupment tests (especi...
Covid-19 webinar: Global Supply Chain planning in a post-COVID-19 world
4 April 2020
This webinar will focus on global supply chain planning for a world after novel coronavirus (COVID-19).It will cover:contingency planning post COVID-19;ncentives and relief for business expansion and relocation;future of global trade beyond 2020; andeffects of COVID-19 to distribution models and the resulting transfer pricing implications.Hosts:Doug Zuvich, Head of Global Trade & Custo...
COVID-19: Tax functions need to take stock, engage
1 April 2020
The state of play with COVID-19 is changing daily, and tax functions have an important role to play within their organisations. At a crucial time for many organisations, the tax function should be able to deliver value and manage risks.At a minimum, tax functions need to:get up to speed with (and communicate internally about) the large volume of federal and state stimuli measures and how t...
COVID-19: Australia’s foreign investment framework changes
30 March 2020
In response to the current environment that is materially impacting the financial position of Australian businesses, the Australian Government has announced new foreign investment measures to take immediate effect that are designed to help protect the interests of Australia and Australian businesses.Key points: FIRB decision period to be extended from current 30 day period to up to six months f...
COVID-19: Instant asset write-off and business investment incentive - FAQs
27 March 2020
The world has moved rapidly between tranche 1 and tranche 2 of Federal Government’s economic stimulus response to the economic impacts COVID-19 will have on Australian businesses.Tranche 1 was focussed on ‘stimulus’ and tranche 2 is very much focussed on ensuring business continuity and solvency.In this article, I will address two key measures that affect business from tranche 1 of the Governme...
COVID-19: Managing taxation obligations - the ATO’s administrative relief approach
27 March 2020
The nature and pace of the evolving COVID-19 crisis is challenging the strength and resilience of most businesses in many different and ever-changing ways.  To combat the challenges faced by the community at large, over the past week, Federal & State Governments have announced spending stimulus packages and tax relief measures aimed at supporting the community and businesses throu...
COVID-19 webinar recording: ATO’s approach to managing taxation obligations
26 March 2020
The Australian Taxation Office (ATO) COVID-19 Response Committee Chair Jeremy Geale has outlined the organisation’s response to the pandemic and the assistance being offered to affected taxpayers during a webinar hosted by KPMG’s Angela Wood.The webinar, held on Thursday 25 March, explored:the financial difficulty support measures currently offered by the ATO in response to COVID-19 such as deb...
COVID-19 stimulus measure: Boosting cash flow for employers
25 March 2020
Boosting Cash Flow for Employers provides for payments to support employers by boosting their cash flow and encourages the retention of employees through any downturn.The payments referred to as Cash Flow Boost Payments comprise:the first cash flow boost; andthe second cash flow boost.This “payment” is a credit against a liability that is arising for the employer. The amount is recognised as a ...
COVID-19: Practical employment tax matters being investigated
24 March 2020
There are a number of different questions being asked by employers who have employees working in locations that may not have been contemplated.For example, employees might be working from international locations, interstate or working from home, .We have outlined below some FAQs from employers.Fringe benefits tax – how can I best support my employees with health matters or relocation matters? T...
COVID-19: managing taxation obligations – the ATO’s Approach
23 March 2020
We invite you to join our first webinar in the series in which KPMG’s Angela Wood, Partner and Regional Leader, Tax Dispute Resolution & Controversy will host a discussion with the Australian Taxation Office (ATO) COVID Response Committee Chair Jeremy Geale.They will explore the ATO Administrative Concessions currently available to taxpayers who may be experiencing difficulties with their t...
COVID-19: Internationally mobile employees
23 March 2020
Many Australians who have been living overseas have, over the last few months, found themselves temporarily back in Australia for various reasons as a result of COVID-19. This movement has further increased in the last week following the advice of the Australian government for all Australian citizens and permanent residents to return. This has created uncertainty for many of those individuals r...
COVID-19: Australian employment tax matters
23 March 2020
The Australian Taxation Office (ATO) and state revenue authorities are working with both the Federal and State Governments to implement a broad range of measures and provide relief to employers.We outlined some of the key announcements and responses to employment tax concerns below.Payroll tax reliefNew South WalesPayroll tax paying businesses whose total grouped Australian wages for the 2019/2...
Tax relief in New Zealand Government's response to COVID-19
18 March 2020
The New Zealand Government released on Tuesday its $12.1 billion fiscal and economic response to the COVID-19 pandemic.The amount of the proposed relief is equivalent to approximately 4 percent of New Zealand’s annual GDP.Stimulus package The bulk of the package comprises spending of:$5.8 billion in wage subsidies for businesses, up to a maximum cash payment of $150,000 over the next 12 weeks c...
Potential impact of COVID-19 on the Australian Economy
17 March 2020
KPMG Australia’s modelling suggests that, in the absence of the Commonwealth Government’s stimulus package, the COVID-19 pandemic would reduce Australia’s GDP in 2020 by about 0.9 per cent. While GDP rebounds in subsequent years it takes almost the remainder of the decade for GDP to return to the levels forecast prior to the onset of this pandemic.These impacts would amount to a hit to Australi...