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Written by admin on March 30, 2020 in Accounting Online Taxes

During this crisis Downs accounting are open and ready for you to email or call us.  Please don’t visit the office unless absolutely necessary. The office is open for now but please call before coming due to rapidly changing circumstances.  We have been working via our online portal for over 6 years with most our clients and are fully capable of continuing to work with you remotely, including online signing of documents.

There are cabinet meetings happening pretty much every day and new measures being announced.

Currently the below is a brief run down of the measures to date:

 

If you have paid wages the PAYGW amount will be refunded up to $50,000 with a minimum of $10,000 being applied even if you haven’t deducted any PAYGW.

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf

 

If you spend money on depreciable items they are deductible up to $150,000. This could reduce the current tax liability for some businesses.

 

Your home loan and business loans (where applicable) your bank can probably suspend repayments for a period of 6 months (interest to be capitalised).

 

You can speak to your Bank regarding the Government guaranteed unsecured loans that are available – if you need a cash flow prepared or any assistance please let us know.

 

The current State Govt measures give some relief to WA businesses paying Payroll Tax. This tax is paid to the State Govt and is not paid by the majority of small businesses. The funds will be paid directly to your account.

 

Centrelink are paying double the normal payments and you don’t need a separation certificate if you don’t have work or can’t work.

 

Details here: https://www.servicesaustralia.gov.au/individuals/subjects/affected-coronavirus-covid-19/if-you-need-payment-coronavirus-covid-19

 

There is now a Jobkeeper allowance to be paid by employers from 30/03/2020 at least fortnightly. The Govt will reimburse these funds early may. It is important to ensure your staff are eligible:

  • JobKeeper allowance is a flat payment, the equivalent of around 70% of median wage and 100% of the median wage in those sectors most impacted, such as food retail
  • Available to New Zealanders who reside in Australia, and those on 444 visas (who don’t get access to welfare), as well as not for profit organisations
  • Available to full and part-time workers, sole traders and casuals who have been with their employer for 12 months or more. Any employee who has been stood down since 1 March will still be eligible for the payment.
  • From today, employers and sole traders can apply to ATO, money will flow from 1 May and be back dated to today
  • Business turnover has to have fallen by 30% to be eligible. For the biggest firms, it has to be a 50% drop.
  • Cash payments of up to $100,000 to SMEs in hardship already announced
  • Employees cannot receive JobKeeper and JobSeeker together

The JobKeeper portal has been set up on the ATO website now, where businesses can register their interest immediately via: https://www.ato.gov.au/general/gen/JobKeeper-payment/

 

You may also be able to access your superannuation up to $10,000 this year and $10,000 next year if you can access Centrelink.

 

Details here: https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-your-super/?anchor=Compassionategrounds#Compassionategrounds

 

If you become ill for a period of time you may be covered by an insurance policy that you hold in or out of super.

 

You can also look at suspending payments for Private Health, office internet/phones, gym memberships etc. Speak to your providers.

 

Every person and client I speak to is affected in some way and you are not alone.

 

If you feel you need further support please contact me or bear in mind that there is support available via https://www.beyondblue.org.au/

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