The impact of COVID 19 for business is far reaching and putting a strain on the ongoing viability of many businesses. Detailed below is a summary of the actions you should consider taking and the concessions available which can help you get through these tough times.
Federal Government Assistance
- Payment of PAYG Withholding for small businesses (up to $50 million turnover) – minimum total payments $20,000 and maximum payments $100,000.
- Job Keeper Payment – Government wage subsidy of $1,500 per fortnight per employee for affected businesses.
- Instant Asset Write-off for assets up to $150,000 until 30 June 2020.
- Investment Incentive – Allows for an additional deduction of 50% of the cost of the asset in the year of purchase for depreciating assets.
- Get your March business activity statement lodged as soon as you can so the PAYG withholding refund can be processed.
- Register online with the ATO for the Job Keeper payment.
Safe Harbours – Insolvent Trading
- New insolvent trading safe harbour comprising a 6 month moratorium on insolvent trading liability in respect of debts incurred in ordinary course of business;
- The minimum debt which can form the basis of a statutory demand has increased to $20,000 and the period within which debt must be paid is 6 months.
Tip: Speak with your creditors about payment terms but also be mindful that your debtors now have a greater ability to defer payment.
Queensland Government Assistance
- Payroll tax relief – Refund of last 2 months payroll tax relief and a 3 month payroll tax break.
- Loans scheme to support jobs – Up to $250,000 of loan funding (maximum 50% of wages costs) to qualifying small businesses.
Tip: Seek to access the State Government Small Business Loan scheme – no repayments for 12 months and a 2.5% interest rate.
Australian Taxation Office
- Payment deferrals for debts incurred post 12th March for 6 months.
- General interest charge remissions for affected clients.
Tip: Arrange for payment deferrals on debts with the ATO
- Varying forms of relief available depending upon your circumstances (including repayment & interest holidays)
Tip: Speak with your bank and ask what relief is available.
If you need assistance in any of these areas please don’t hesitate to contact us on (07) 3910 5675 or [email protected]