Information on Coronavirus (COVID-19) Stimulus Package for Small Business Owners
Home > Information on Coronavirus (COVID-19) Stimulus Package for Small Business Owners
Coronavirus COVID-19 Stimulus Package Version 2 is being rolled out and we want to ensure you have the most up-to-date information to hand on the stimulus package and what it means for you and your business.
OUR CLOUD SYSTEMS MEAN YOU CAN ALWAYS CONTACT US IF YOU NEED US
In light of the recent developments around the Coronavirus (or COVID-19) and the uncertainty we are all facing day to day, we want to assure you that we expect no major interruptions to the services that we provide to you.
We have invested heavily in the latest technology in recent years, and this means we can keep assisting you no matter what may happen.
All members of our team are able to work remotely and have access to all the technology systems and tools required.
GOOD ADVICE IS NEEDED NOW MORE THAN EVER
If you have any general queries, requests for booking appointments or requests for documents, please feel free to contact us on 03 51749111.
Once we are forced to close our office, the phone will be unattended, however messages will still be checked on a regular basis. Please leave a message and it will be sent to the appropriate person.
ASSISTANCE FOR YOUR BUSINESS TO COPE WITH THE CORONAVIRUS EFFECTS
As a business owner, you need to face the possibility of your workplace being forced to close, product supply issues and demand for your services and products reducing over the short term.
Here are some urgent things you need to be aware of:
Government Stimulus Package – Our Tax Planning meeting with you this year will be VITAL!
Business Continuity Planning
Get your Will and EPOA updated / set up NOW
Ensuring employees are aware of government assistance
GOVERNMENT STIMULUS PACKAGE – OUR TAX PLANNING MEETING WITH YOU THIS YEAR WILL BE VITAL!
The Australian Government has just released a $66 billion economic stimulus package in addition to the original $17.6 billion package.
The package has been marketed as a measure to protect the economy by maintaining confidence, supporting investment and keeping people in their jobs.
The key tax and stimulus measures include:
From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020.
A time-limited 15-month investment incentive (through to 30 June 2021) which will operate to accelerate certain depreciation deductions. This measure will also be available to businesses with a turnover of less than $500 million, which will be able to immediately deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost. As announced, this measure is proposed to only apply to new depreciating assets first used, or installed ready for use, by 30 June 2021.
Government guaranteed business loans of up to $250,000. These loans will be unsecured and the government guaranteeing 50%.
Tax-free payments of up to $100,000 for eligible small and medium businesses (i.e. with a turnover of less than $50 million that employ staff) based on their PAYG withholding obligations. This is not a cash payment, but it is a credit equal to 100% of the PAYG amounts withheld from salary and wages paid to employees.
Businesses that lodge activity statements on a quarterly basis will be eligible to receive the credit for the quarters ending March 2020 and June 2020. Business that lodge on a monthly basis will be eligible for the credit for the March 2020, April 2020, May 2020 and June 2020 lodgements.
If a business pays salary and wages to employees but is not required to withhold any tax, then a minimum payment of $20,000 will still be made. The minimum $10,000 payment will be applied to the first activity statement lodgement.
Wage subsidies to support the retention of apprentices and trainees – Employers with less than 20 full-time employees may be entitled to apply for Government funded wage subsidies amounting to 50% of an apprentice’s or trainee’s wage for up to nine months from 1 January 2020 to 30 September 2020. The maximum subsidy for each apprentice/trainee is $21,000.
Tax-free payments of $750 to social security, veteran and other income support recipients and eligible concession card holders. It is estimated that around half of those who will benefit will be pensioners. These payments will commence to be automatically made.
Additional $750 payment to be made during July.
Additional Coronavirus Supplement of $550/fortnight for employees with reduced hours or temporarily stood down. Also available to sole traders, full-time employees and casual workers.
When we have our 2020 Tax Planning meeting with you over the next few weeks, we will assist you with opportunities to restructure how you pay yourself so that you can receive the maximum cashflow assistance amounts from the Government.
As a business owner, now is the time to plan for employees being away from your workplace, shortages of supply, reduction in sales, and the possibility of your workplace being closed for a short period of time if every is being forced to self-quarantine.
Over the next few weeks, we would like to have a phone call or Zoom meeting to discuss the following:
How to pay your bills in the short term if your sales start to dry up.
How to communicate in a reassuring way with your clients and customers.
Employees working from home, and workplace obligations.
How to keep things moving with your business.
We’re not suggesting in any way that we have all the answers, but it is important for us to work with you and help you and plan for what will happen in the weeks and months ahead.
GET YOUR WILL AND EPOA UPDATED / SET UP NOW
If you have to self-quarantine or are admitted to hospital, if you don’t have an EPOA then no-one else can make important business or financial decisions on your behalf. As a business owner, it is 100% essential that you have an up to date EPOA and Will, and that your family know where these are stored.
We’ve teamed up with Littleton Hackford Solicitors to offer you a fast, easy and professional way to get these documents prepared quickly. Simply email or phone their office on 03 51761345 and they can make appropriate arrangement with you.
These are times when we need to stay calm and rely on reliable news sources and information from State and Australian Government websites. What you see on social media may be panicky and unreliable information – stay away from this!
Our team at DJ GRIGG ACCOUNTING are here to help you. Please phone us on 03 51749111 or book in an appointment if you need any assistance!