Update - Second stage economic stimulus package released
Monday, 23rd March –
The Prime Minister has announced a second stage economic stimulus package, adding $66 billion of support in the face of the Coronavirus pandemic.
Small businesses (under $50 million turnover) will receive tax free cash payment of up to $100,000 with minimum payment of $20,000 for eligible companies, delivered as a credit on activity statements from late April to support employers and keep people in business.
- This is an increase from the measure announced last week. Employers will now receive payment of 100% of their PAYG withholding amount (up from 50%) with the maximum payment now being $50,000 and minimum $10,000 for 2020 financial year.
- An additional payment for July – October 2002 for the same amount will also be available, meaning claim over the 2 periods is now at least $20,000 and up to $100,000.
This will be proceeds as an automatic credit in the activity statement from 28 April 2020 (lodgement of March BAS) and will be a tax free payment.
For monthly payers, the March BAS will be equivalent to 300% of withholding to provide similar treatment to quarterly lodgers.
The minimum payment will be applied to the entities first lodgement during this period.
Where the payment results in a refund position, the ATO will deliver refund with 14 days.
The payments will only be available to active eligible employers established prior to 12 March 2020.
Guaranteeing 50% of unsecured small business loans up to $250,000.
SME Guarantee Scheme will guarantee 50% of unsecured loans for a term of three years to allow easier access to working capital.
Update to Apprentice Detail - from round 1.
Update - Queensland COVID-19 Jobs Support Loans
Tuesday, 17 March – The Queensland Government announced a new $500 million loan facility, interest free for the first 12 months, to support Queensland businesses impacted by COVID-19 retain employees and maintain their operations.
The $500 million concessional loan facility will comprise low interest loans of up to $250,000 for carry on finance with an initial 12-month interest free period for businesses to retain staff.
The Federal government announced on Friday the stimulus package aimed to support business owners and to boost the economy. To find out what is was included review our article –
Other administrative relief for tax obligations will also be provided, including
- Deferring the payment of activity statements (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise by up to four months
- Allowing businesses on a quarterly reporting cycle to opt into monthly GST reporting to get quicker access to GST refunds
- Allowing businesses to vary PAYG instalment amounts to zero for the March 2020 quarter, and claim a refund for instalments made for the September 2019 and December 2019 quarters
- Remitting interest and penalties incurred on or after January 23 that have been applied to tax liabilities
- Low-interest payment plans.
Queensland government has also announced that businesses that have been affected by COVID-19 are able to defer payment of payroll tax for periods February to June 2020 until 3 August 2020. There is an application form to complete for this and will not automatically be applied.
How can Walsh Accountants help you?
Specialising and Entreprenurial and Business Support – we’re here to help you throughout this period of instability. This is uncharted territory for all of us but we are here to assist you with all the knowledge we have to help you adapt to the changing environment and keep your business afloat
Some of the support we can offer
- Help you understand the stimulus package and what may be relevant/available to you
- Work through government applications to take advantage of stimulus measures
- If you are having severe financial difficulties, contact the ATO on your behalf negotiate assistance
- Help you ascertain your financial position, prepare cash flow budgets and determine your break even
- Help develop a financial action plan to get through the downturn
- Connect you with business professionals to support you other areas.
If you are in need of our assistance, we encourage you to contact us as soon as possible. If cost is a concern to you, we can work with you.