Coeus Advisers – COVID 19 Small Business Survival Package

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

1. Payment of PAYG Withholding for small businesses (up to $50 million turnover) – minimum total payments $20,000 and maximum payments $100,000.
2. Job Keeper Payment – Government wage subsidy of $1,500 per fortnight per employee for affected businesses.
3. Instant Asset Write-off for assets up to $150,000 until 30 June 2020.
4. Investment Incentive – Allows for an additional deduction of 50% of the cost of the asset in the year of purchase for depreciating assets.

Tips: 

1. Get your March business activity statement lodged as soon as you can so the PAYG withholding refund can be processed.
2. Register online with the ATO for the Job Keeper payment.

Safe Harbours – Insolvent Trading

1. New insolvent trading safe harbour comprising a 6 month moratorium on insolvent trading liability in respect of debts incurred in ordinary course of business;
2. 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

1. Payroll tax relief – Refund of last 2 months payroll tax relief and a 3 month payroll tax break.
2. 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

1. Payment deferrals for debts incurred post 12^th March for 6 months.
2. General interest charge remissions for affected clients.

Tip:   Arrange for payment deferrals on debts with the ATO

Financial Institutions

1. 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]