The Australian Government has announced a $130 billion JobKeeper payment to help keep more Australians in jobs and support businesses affected by the significant economic impact caused by COVID-19 pandemic.
Around 6 million workers will receive a fortnightly payment of $1,500 (before tax) through their employer.
The payment ensures eligible employers remain connected to their workforce and will help businesses restart quickly when the crisis is over.
Information for employers
If your business has been significantly impacted by the Coronavirus you will be able to access a wages subsidy to continue paying your employees. Under the JobKeeper program, you will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum of six months. This assistance will help you keep staff and will help you restart when the crisis is over.
Information for employees
The JobKeeper payment helps businesses significantly impacted by the Coronavirus cover the costs of their employees’ wages, so more Australians can retain their jobs and continue to earn an income. Your employer will notify you if they intend to claim the fortnightly payment of $1,500 on your behalf.
? Business Owners! Are you aware of ATO COVID-19 Stimulus Payment ?? Small & Medium Businesses: this is the right time to act and optimise the$100,000 Stimulus payment, instant Asset Write-off and early Superannuation access.
The Government has announced a $66 billion economic stimulus package to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world deals with the significant challenges posed by the spread of the coronavirus.
We have reviewed the Stimulus package and many businesses will require assistance to optimize the stimulus payment. Nearly 700,000 small to medium businesses will also be able to get cash payments of between $20,000 and $100,000 but these payments will be available through businesses BAS lodgments. Payments will only be available to active employers established prior to 12 March 2020.
Eligible businesses that pay salary and wages will receive a maximum payment of $10,000 per quarter, even if they are not required to withhold tax.
Employees who have been made redundant, or those who have their working hours reduced by 20 per cent or more, or sole traders whose businesses have been suspended or see a reduction in turnover by 20 per cent or more will also now be allowed to access up to $20,000 of their superannuation.
Contact us for a pro-active tax planning session and to maximise the government cashback – 03 9904 9261
Business Owners! Are you aware of ATO COVID-19 Stimulus Payment ??
Small & Medium Businesses: this is the right time to act and optimise the$25K Stimulus payment & instant Asset Write-off.
The Government has announced a $17.6 billion economic plan to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world deals with the significant challenges posed by the spread of the coronavirus.
We have reviewed the Stimulus package and many businesses will require assistance to optimize the stimulus payment. Nearly 700,000 small to medium businesses will also be able to get cash payments of between $2,000 and $25,000 but these payments will be available through businesses BAS lodgments.
If you are a business distributing the profits from a trust or dividends from a company, then you may not be eligible for this payment. Unless you implement different strategies for the March 2020 & June 2020 Quarters to optimise the stimulus payment.
If you need any help with pro-active tax planning and to maximise the government cashback, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261
In these unprecedented times, we wanted to reach out to let you know what we are doing to support our team, our customers, and our community to get through the uncertainties we all face.
In accordance with our Business Continuity Plan, we have already taken measures to ensure we are able to provide the same level of service with as little impact as possible to our customers, clients, and employees.
Being healthy and safe
Our priority is to make sure we’re focused on the health, wellbeing, and safety of our team and our customers. We’ve also deferred any non-essential travel for the foreseeable future. We’ve also asked our team to disclose any travel plans they have and to consider postponing any trips that have been booked to help enhance safety amongst the community.
Ways we can support you
All data and communications are stored in the cloud and currently, all of our staff are set up with the appropriate technological infrastructure to work from home.
The Australian Government’s position and the advice of health organisations are that most infectious diseases can be controlled with improved social distancing, therefore we have implemented the following measures:
• Encouraging working from home arrangements (as implemented above)
• Encouraging meetings via teleconference or via Zoom (inclusive of both Staff and Client meetings).
• Ensuring all staff are aware of how to protect themselves and others as per the guidelines listed on the Australian Government Department of Health’s website.
Our lines of communication will remain open and we will continue to operate during business hours.
In the event of any lockdown or isolation measures being enforced by the Government, we believe SPS Business Consultants will be well-placed to continue assisting our clients with little to no disruption.
We do note that some ancillary services such as registered post mail or field calls may be impacted by Government regulations.
Advising clients in troubled times
The Australian Taxation Office (ATO) has introduced various stimulus packages to support the Australian Businesses, during this crisis. We will be actively reviewing client eligibility against their criteria.
The Australian Taxation Office (ATO) will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak.
We hope this advice provides you with clarity on our continued services and we will continue to monitor this situation and keep our clients updated accordingly.
The Australian Taxation Office (ATO) will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak.
Commissioner of Taxation Chris Jordan is encouraging businesses impacted by the coronavirus to get in touch with the ATO to discuss relief options.
“We know that many businesses and communities are being heavily affected by the challenging economic conditions created by the outbreak of COVID-19,” he said.
“The ATO will work shoulder-to-shoulder with businesses to assist them through this difficult period and do what we can to ease the pressure.
“Once you contact us, we’ll tailor a support plan for your needs and circumstances.
“Support measures could include deferral of some payments, quicker access to GST refunds, and options to enter low interest payment plans for existing or future tax debts.”
ATO understand this is a time of significant uncertainty and that we will need to be flexible in how we help businesses.
Options available to assist businesses impacted by COVID-19 include:
Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise
Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to
Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters
Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities
Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
Normally, benefits you provide to your employees such as non-work-related hotel stays or loaning them a car for their private use would be considered fringe benefits, and subject to fringe benefits tax (FBT).
However, in emergency situations like natural disasters, providing immediate relief to employees who are impacted (or potentially impacted) is exempt from FBT where the assistance is for:
first aid or emergency health care
emergency meals, food supplies, clothing, accommodation, transport or use of household goods
temporary repairs
any similar matter.
These exemptions also apply where your employee has been affected by:
an accident
serious illness
armed conflicts
civil disturbances.
There are specific requirements when it comes to providing health care, and exemptions don’t apply to long-term benefits like providing a new house or car to replace one destroyed as a result of an emergency.
If you or your business are affected by a disaster we understand tax is the last thing on your mind right now. We have a hotline you can call for assistance in getting your tax back on track once the emergency has passed.
Your registered tax agent or BAS agent can also help you.
If you need any help with your business tax obligations, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261
