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Coronavirus update

By March 24, 2020 No Comments

Ahead of the challenging time, we want to assure you that will continue providing our services to you, just in a different fashion. Yours and our Team’s safety is our priority.

We are switching to a work-from-home mode. Our previous experience has proven that this adjustment will have little impact on our relationship:

  • Our phones are working as usual
    You can still reach us on 02 9386 0500 to speak to any of our Team Members, but you may experience slightly longer delay in getting connected.
  • Face-to-face meetings
    • Thomas and Anna are available by appointment only
    • We will appreciate if you reduce face-to-face meetings to absolute minimum
    • Rest of our Team is only available by phone or e-mail
  • Online bookings will be suspended

Spectrum and quality of our services will not be reduced. Our focus will be to assist you with your stimulus package however we can, to ensure you receive it in full and without any unnecessary delay.

The Government Stimulus Package

There will be multiple forms of assistance to businesses and employees affected by this shutdown. Some of them will be paid through Centrelink and we will be of little help there. Others are paid by the ATO, and we’ll focus on them here. We are monitoring the situation and will inform you on the actual procedures related to obtaining it. The below options are generally available to small business with less than $50,000,000 in annual turnover:

Up to $100,000 in cash for Employers

Active small and medium businesses that employ people can get between $20,000 and $100,000. First half of this will be delivered in April to help you with your March BAS, and the remainder will be paid in June, and for some it will be split between June and September.

This money will be credited into your Tax Account to first help with your tax liability, and if you will end up with credit, you will receive the refund within 14 days. For this money to be credited your Business Activity Statements must be lodged.

How much will I get?

It all depends on how much tax you withhold from your employees. If you report your PAYG withholding quarterly, then in March quarter you will get:

  • If you paid your employees but did not withhold any tax: you’ll get $10,000
  • If you withheld less than $10,000: you’ll get $10,000
  • If you withheld between $10,000 and $50,000: you’ll get amount equal to your withholding
  • If you withheld above $50,000: you’ll get $50,000

The same thresholds and payments will apply in June quarter.

If you are lodging your PAYG withholding monthly, we will contact you separately. Your March package will be the same as above, but from April to September you will receive proportional payments, with the same minimum and maximum in total.

What you need to do:

  • your business must remain active,
  • you must be registered for PAYG withholding.
  • Please also note that as of today, Superannuation Guarantee rules remain unchanged and must be paid by 28th of April.

If you are an active business but not registered for PAYG please contact us immediately.

Enhancing the instant asset write-off

The government has increased an instant asset write -off for assets purchased between 12 March 2020 and 30 June 2020 from $30,000 to $150,000. From 1 July 2020 the instant asset write-off will be reduced to $1,000 – assets costing above $1,000 will be depreciated over its effective lifetime.

Early access to superannuation

From mid-April 2020 you will be able to apply for early release of your superannuation, up to $20,000 in total, tax free over two applications. Applications will be done through myGov directly. To access this benefit, you will need to be unemployed or your hours must be reduced by 20%, or if you are a sole trader, your turnover must be reduced by 20%.

Small business loans

Banks have received extra lending to provide loans to small business: up to $250,000 unsecured and $1,000,000 secured with property. Main things to know:

  • lower interest, up to 5.5% p.a.
  • no fees
  • you don’t need to start repaying in the first six months, and
  • government will provide guarantee security over half of the loans.

Loans must be used in business and be repaid / refinanced within 3 years. Lending criteria will be relaxed but banks will make final determination who to lend the money and how much.

As a first point of contact, you should call your bank. We will be able to assist you with your financial information and forecasts.

Updates come daily and we’ll keep you posted!

Thomas Murmylo

Thomas Murmylo

Thomas is the Principal Tax Agent at BTMH. Unlike most in the accounting industry, Thomas takes a different approach when it comes to the management of his clients’ taxation and accounting needs. Thomas has helped local and international businesses to grow and prosper for more than 30 years.

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