It’s been an unsettling couple of weeks in Australia and as we begin to understand where we stand and what we have to do in our daily lives, we start to think about our family and business. There is a lot of information circulating on social media, emails and websites. It can get quite overwhelming at times. We have to pulled together the current and reliable information to try and help shine some light on the business support measures being offered.
The Australian Government has announced a range of measures to support small to medium businesses with cash flow and to help retain employees in this challenging climate.
~ Prepared by Roslyn Sheen, VetPrac Bookkeeping
Boosting cash flow for employers
Summary
The Boosting Cash Flow for Employers measure will provide up to $25,000 back to business, with a minimum payment of $2,000 for eligible business. The payment will provide temporary cash flow support to small and medium businesses that employ staff. The payment will be tax free.
Eligibility
Small and medium business entities with an annual turnover under $50 million and that employ workers will be eligible.
Eligible businesses that withhold tax to the ATO on their employees’ salary and wages will receive a credit equal to 50% of the amount withheld up to a maximum of $25,000.
Eligible businesses that pay salary and wages will receive a minimum payment of $2,000, even if they are not required to withhold tax.
This is available on a limited number of Activity Statements:
~ Quarter 3 (January, February & March 2020). Lodgement date: 28th April 2020
~ Quarter 4 (April, May & June 2020). Lodgement date: 28th July 2020
The payment will be delivered by the Australian Taxation Office as a credit in the Activity Statement system from 28th April 2020 upon businesses lodging eligible upcoming activity statements.
Businesses that lodge monthly instead of quarterly will receive their refund for March 2020, April 2020, May 2020 and June 2020 lodgements automatiucally within 14 days of lodgement pending qualifying criteria.
By reducing the amount businesses need to pay on their quarterly BAS, the ATO are providing assistance to business owners to support operation and employment in this vital section of our community.
ATO Leniency
Perhaps more time to pay your tax obligations can help….
The government is also offering administrative relief for certain tax obligations, including deferring payments up to four months. This is worked out on a case-by-case basis and you will need to contact the ATO directly.
Supporting apprentices and trainees
Do you have an apprentice or trainee in your business?
Eligible employers can apply for a wage subsidy of 50% of an apprentice’s or trainee’s wage for up to 9 months from 1st January to 30th September 2020. Businesses can be reimbursed up to a maximum of $21,000 per eligible apprentice.
Delivering support for business investment
Upgrades to equipment or planning for your team to work from home
The instant asset write-off will be increased from $30,000 to $150,000. This higher threshold is in place from 12th March until 30th June 2020 and applies to new or second-hand assets installed in businesses during these dates. This can certainly help if your business is planning to upgrade assets and is concerned about outlays vs return at this time.
We hope that this information can provide some support moving forward. Below are some links to reliable references where you can get more information and advice if needed. As a community, VetPrac is here to support you wherever we can. It certainly makes me smile to see how many clinics are adapting to this current climate in order to overcome the considerable hurdles, with the ultimate goal to still give clients and pets the best possible care. Good on Ya’ 😀
References:
Australian Government: The Treasury
https://treasury.gov.au/coronavirus/businesses
Australia Government: business.gov.au
https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business