The Australian Government has increased the measures to support businesses impacted by COVID-19 and are making changes weekly. Changes are happening so rapidly at the moment - we are endeavouring each week to give our clients a Summary of the main changes affecting you and where to get help.
If you are a sole trader without employees or an Individual.,
If you do not employ staff you are eligible for:
1. The increased asset writeoff measure
The instant asset write-off threshold has been increased to $150,000. This applies from 12 March to 30 June 2020. It applies on a per asset basis, so eligible businesses can immediately write-off multiple assets. This benefit will be realised when completing your 2019-20 Tax.
2. The increased and accelerated income support
The Government has expanded eligiblity to income support payments and establishing new, time limited Coronavirus supplement to be paid at a rate of $550 per fortnight. The supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months and will not be income tested. For eligibility and more information read more.
3. Early access to your Super
The Government is allowing individuals affected by Coronoavirus to access up to $10,000 of superannuation in 2019-20 and a further $10000 in 2020-21.
While super helps people save for retirement, the Government has recognised that for those significantly financially affected by Cornonavirus, accessing super today may outweigh the benefit of maintaining those life time savings.
Eligible individuals need to apply online through MYGOV before 1 July 2020. Access to the further $10000 from 1 July will be for approximately 3 months (depending on legislation outcome).
To see if you are eligible read more in the Governments Early Access to Super Guide.
If you are a Business Employing People
1. Temporary Cashflow Support
The Government has enhanced the payment for Employers who will receive a payment equal to 100% of their PAYG withheld (up from 50%) with the maximum payment being increased from $25000 to $50000 and the minimum payment increased from $2000 to $10000. (for March quarter and June Quarters)
An additional payment is also being introduced in the July to October 2020 period equal to the total of all of the Boosting Cash Flow for Employers payments received. To qualify for the payment - your business must continue to be active. This means eligible businesses will receive at least $20000 up to a total of $100000 under both payments. The cashflow boost provides a tax free payment to employers and is automatically calculated by the ATO once BAS returns are lodged. There are no new forms required.
For monthly activity statement lodgers - the additional payments will be delivered as an automatic credit in the Activity statement system. this will be equate to a quarter of your total initial Boosting Cash Flow for Employers payment following the lodgement of your June 2020. July 2020, August 2020 and September 2020 Activity Statements (up to a total of $50,000). ). To be clear, monthly lodgers will
receive 300% of their PAYGW for March (to cover the months of January, February
and March), then this will revert to 100% each month.
For quarterly lodgers - the additional payments will be delivered as an automatic credit in the Activity Statements. This will be equal to half of your total initial Boosting Cash Flow for Employers payment following the lodgement of your June 2020 and September 2020 Activity Statements (up to $50000)
The Boosting Cash Flow for Employers measure will be applied for a limited number of Activity Statement Lodgements. The ATO will deliver the payments as a credit to your business upon lodging your Activity Statements. Where this places a refund to your business, the ATO will deliver the refund within 14 days.
For more detailed information click here.
At this time of business and economic uncertainly - we encourage to you ensure your work is into our office as soon as possible and to talk to us if you believe one or more of these strategies might assist you at this time by contacting us