THE GOVERNMENT STIMULUS PACKAGE to help businesses navigate through these difficult times has something for almost everyone. While we have presented much of this information on our social media platforms and it is readily available, here is a summary. Please review and make sure to take advantage of any financial assistance that you may qualify for. It is important that you also speak to your accountant for further confirmation of your entitlements. Get all the help you can get.
First financial stimulus:
The Australian Federal Government announced an initial $17.6 billion package to help protect the economy. Please check with your accountant to see if you qualify for these benefits:
1. Instant asset write-off
Depreciating assents costing up to $150,000 (up from $30,000) which will be fully deductible in the year ended 30 June 2020.
2. Accelerated Depreciation until 30 June 2021
Depreciating assets will be eligible for a 50% upfront deduction and the remaining 50% will be depreciated at existing rates.
- A tax-free payment
Between $2,000 – $25,000 to businesses with a turnover of less than $50m who employ staff.
- Second Economic Stimulus Package: Please check with your accountant to see if you qualify for these benefits:
- Cash flow boost to employers
Covers taxes withheld from wages between 1 January–30 June 2020 and 1 July 2020–31 October 2020.
- Loan guarantee scheme
Unsecured, maximum loan size of $250,000 and repayable up to 3 years with a 6-month repayment holiday. Will apply to loans made between early April–30 September 2020.
- Cash flow boost to employers
The government has announced a subsidy to help recently unemployed jobseekers. The highlights are:
A subsidy of $1500 per employee, per fortnight.
2. Applies to Full-Time, Part-Time and Casuals with at least 12 months service.
3. Applies to businesses whose turnover dropped by 30%.
4. If you are a sole trader you are eligible (please check with your accountant)
What you need to do:
Register your interest https://www.ato.gov.au/general/gen/JobKeeper-payment/
(please have your ABN ready).
We also suggest keeping an open line of communication with your suppliers, your bank and your commercial landlord. While the government can assist to a certain degree, having conversations with your providers may be able to offer additional support for when your practice is ready and able to come out of hibernation.
You should speak to your landlord about rent relief for the next 3-6 months to make sure you are solvent and trading after the crisis abates.
You could ask for:
- Rent reduction with deferred payment
- Rent waiver
- Deferred payment
If your Super Fund is your landlord, speak to your accountant about restructuring payments in the lead up to the EOFY.
BANK/FINANCIAL INSTITUTIONS re: lease payments
- Banks and financial institutions are offering ‘deferred payment’ options. You need to contact them and discuss your options.
Here are some useful links to information provided by the Government:
- Government payments to individuals affected by coronavirus (COVID-19)
- Government’s stimulus payments to households
- News, advice and updates across all Government departments
As government restrictions change and more economic stimulus packages are unveiled, it’s important to stay in touch with your accountant and your team and get the facts. For more information on financial assistance eligibility and timing for the new government support for Australian businesses please visit www.business.gov.au
It is also important to review the Australian Tax Office website for additional advice to businesses. Depending on your business structure please request appropriate support from your accountant as each case differs depending on your business structure. The ATO website is www.ato.gov.au
We will endeavour to keep you up-to-date with changes. Please also check regular updates on our APAN Facebook page for immediate updates, and of course, you can always phone us 07 5593 0360 for more personalised information.