COVID-19 - Update 24 March 2020
Aegis Business Services is open for business and here to support you!
Legislation has been passed through Parliament awaiting royal assent and most matters that were suggested by the Government have been agreed to & will be implemented by the various Government departments..
Here is a summary below of each area with varied links – please feel free to contact us if you would like further details to your specific situation.
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 in a timely manner as any credit balance will be paid as a refund within 14 days from the 28 April or the lodgement date, whichever is later .
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.
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 we consider revising the Income Tax in the Q3 BAS (1 January 2020 to 31 March 2020) reporting with the likelihood that if Q1 & Q2 payments exceed the new Income Tax calculation a refund will be paid.
Ability to change GST Reporting Period
If you are on a quarterly reporting cycle, you may elect to change your GST reporting and payment to monthly, this will give you quicker access to any GST refunds you are entitled to. Please note that changing your GST reporting cycle to monthly doesn’t mean you have to change your PAYG Withholding reporting cycle.
Please contact us to discuss your needs as it does mean that you need to continue to report on a monthly basis for a minimum of 12 months.
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.
Extra information for individuals
Stimulus Payments to Households
Relevant to some but not all of our clients – please refer to this link for further information
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Payments_to_support_households.pdf
Income Support for individuals
Relevant to some but not all of our clients – please refer to this link for further information
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf
Superannuation Drawdowns
Relevant to some but not all of our clients – please refer to this link for further information
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Early_Access_to_Super_1.pdf
QUEENSLAND GOVERNMENT - INTEREST FREE BUSINESS LOAN
Last week the Palaszczuk Government announced they will create a new $500 million loan facility, interest free 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. This $500 million concessional loan facility would comprise loans of up to 250,000 with an initial 12-month interest free period for businesses to retain staff.
At this stage the Queensland Rural and Industry Development Authority (QRIDA) is responsible for the administration of these concessional loans and is currently taking expressions of interest in the lead up to rolling these loans out as soon as possible.
Please email contact_us@qrida.qld.gov.au – Subject: Queensland COVID-19 Job Support Loans
http://statements.qld.gov.au/Statement/2020/3/17/palaszczuk-government-offers-500m-in-loans-to-support-workers-in-businesses-affected-by-coronavirus http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme
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
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