COVID-19 - Latest Update 27 March 2020
Aegis Business Services is here to support you!
This week has resulted in a lot of activity in our office as you could imagine – which we love the opportunity the Australian Government have given us for helping so many of our clients. We thought it was worth putting together a summary of where everything stands now & keeping in mind that next week brings the end of the ever so important BAS period.
Australia Wide Government Assistance
Boosting Cash Flow for Employees
- Applied to businesses, Not-for-Profit & charities with employees & turnover of less than $50 million
- PAYG Withholding from employees wages & salaries relief of 100% for the January – September 2020 period
- Maximum $100,000
- Minimum $20,000
- Distributed to entities as a credit to the ATO Business Activity Statement
It is important to lodge your January – March 2020 BAS before the 28 April as any credit balance will be paid as a refund within 14 days from the 28 April.
Tax Payment Deferrals, Remittance of Penalties & Interest and Lower Interest Rate
The ATO are generously offering to consider individual cases regarding possible tax payment deferrals, possible remittance of interest and penalties or possible lower interest rates if on payment plans.
As these are all independent & are considered case by case, please contact us to discuss this matter further.
Apprentice & Trainees Support
As an employer of an apprentice or trainee you may be eligible for a 50% wage subsidy of the apprentice or trainees’ wages paid during the nine month period of 1 January 2020 to 30 September 2020.
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf
Coronavirus SME Guarantee Scheme – New component
The Government will provide a guarantee of 50% to SME lenders for new unsecured loans to be used for working capital. This will enhance these lenders’ willingness and ability to provide credit, which will result in SMEs being able to access additional funding to help support them through the upcoming months.
SMEs with a turnover of up to $50 million will be eligible to receive these loans.
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Supporting_the_flow_of_credit_1.pdf
Enhancing the Instant Assets Write-off
For businesses with turnover below $500 million the threshold for instant asset write-off has increased from $30,000 to $150,000. This is available for assets purchased from 12 March 2020 to 30 June 2020.
Before purchasing a fixed asset please feel free to contact us to discuss your situation.
Accelerated Depreciation Deductions
For businesses with turnover below $500 million you will be able to immediately deduct 50 per cent of the asset cost in the year of purchase with the balance of the asset cost being depreciated at the existing rates. This is available through to 30 June 2021.
Before purchasing a fixed asset please feel free to contact us to discuss your situation.
PAYG Income Tax Instalments Revision
If turnover for the 1 January 2020 to 30 June 2020 period is expected to reduce in your business we suggest consideration is taken to revising the Income Tax in the Q3 BAS (1 January 2020 to 31 March 2020) reporting. This could result in the likelihood that if Q1 & Q2 payments exceed the new Income Tax calculation a refund will be paid.
Individual Circumstances
There are several options available to assist individuals in accessing support from the Government – at Aegis Business Services we are aware of them but cannot give advice – therefore please see the links provided (from Government Sources) to do your own research. Please note these links will be updated as new information is available.
Income Support for individuals & Households
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Payments_to_support_households.pdf
Early Release of Superannuation
Reducing Social Security
QUEENSLAND GOVERNMENT - INTEREST FREE BUSINESS LOAN
Applications are now open for opportunity to receive an interest free loan for the first 12 months, to support businesses to keep Queenslanders in work and extend the coronavirus payroll tax deferral to all businesses across the state.
The facts:
- Maximum $250,000 – based on wages paid
- No repayments for first year
- next two years payments are interest only
- 2.5% fixed interest rate
- 10-year term of loan
- Open until 25 September 2020 or until $500 million fund fully allocated.
If you need any assistance with your application please contact us.
QUEENSLAND GOVERNMENT – PAYROLL TAX RELIEF
Employers who pay $6.5 million or less in taxable wages may be eligible for the following payroll tax relief measures:
• Refunds of payroll tax for 2 months
• A payroll tax holiday for 3 months
• Deferral of paying payroll tax for the 2020 calendar year
NEW SOUTH WALES GOVERNMENT – PAYROLL TAX RELIEF
Employers with taxable wages below $10 million may be eligible for the following measures:
• Annual tax liability reduction of 25% at the lodgement of their annual reconciliation
• No payments necessary for the months of March, April and May for customers who lodge and pay monthly
These measures should be automatically applied to businesses with grouped Australian wages of no more than $10 million. Additionally, to this the tax-free threshold will increase from $900,000 to $1 million for the financial year commencing 1 July 2020.
https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/payroll-tax
VICTORIA GOVERNMENT – PAYROLL TAX RELIEF
Employers who pay annual taxable wages of up to $3 million may be eligible for the following measures:
• Payroll tax for the remainder of the 2019-20 financial year waived
• Refund of payroll tax paid in the 2019-20 financial year
• Deferral of payroll tax for the first quarter of the 2020-21 financial year until January 2021
https://www.sro.vic.gov.au/frequently-asked-questions-response-covid-19
Please remember that we are here to support you and guide you as much as possible through this uncertain future we are all facing.
Kind Regards
The Team at Aegis Business Services
