How things have changed over the last week and there will likely be more changes to the way we all conduct our business in the coming days and weeks.
We thought we would touch base this morning and send out some information that may be of assistance to you in processing these changes and what the government has put in place.
There is a lot of information available and we have tried to condense as much as possible.
Suggestions for your inhouse operations:
- Conduct remote meetings – check out Zoom. It’s free software that will enable you to video conference
- Computer backup- check your system
- Check Insurance policies are up to date – if in doubt contact your insurance brokers
- Consider your “Work from home policies and systems” where possible/applicable
- Communication flow – with your staff, clients and business team
- TIP: Caloundra hospital has a drive through testing facility open 8am – 8pm 7 days a week
What we can help you with:
- Policies for working from home
- Developing a budget
- Developing a business plan
- Communication with suppliers about deferring payments
- Employee and HR issues
- Identifying the minimum hours of work for employees
- changing rosters
- Register apprentices and trainees for the government stimulus
- Understanding, translating and accessing the financial assistance available to you
Below, we have summarised the most pertinent points of the stimulus package, ATO measures and Qld government support through what will be a testing time for many.
Financial Help and Assistance
Is updating their site as new measures become law. Note the specific changes to the Clerks Private Sector Award and the Hospitality Awards.
This package is now law, however the registration process is still an expression of interest with the ATO https://www.ato.gov.au/general/gen/JobKeeper-payment/ . The ATO will contact those that have registered in due course and will be in contact with your bookkeeper/BAS agent if they are registered for you.
Simple details are that;
- Eligible employees will to receive $1500 per fortnight gross via their eligible employer.
- The employer will be reimbursed by the ATO after there is evidence of payment to the employee. If you are registered for Single Touch Payroll and file your payroll the evidence will be substantiated.
- Starts from the first full pay period 30th March 2020 for eligible employees at 1st March 2020.
- You can opt in at anytime that you become eligible
All the fact sheets, legislation and registration details can be found here – https://treasury.gov.au/coronavirus/jobkeeper
Please do not hesitate to contact us if you have any queries.
The Government stimulus package announced today for business, the biggest effects
- The Boosting Cash Flow for Employers up to $25,000 back to businesses with a turnover of less than $50 million that employ staff. Received as a payment equal to 50% of the amount of PAYG tax withheld in wages on your normal BAS lodgement, starting March 2020 and the minimum payment of $2000 will be applied then. It will reduce BAS payable or refunded in 14 days.
- Apprentice & trainees – Eligible employers can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Eligible to businesses employing fewer than 20 full-time employees who retain an apprentice or trainee
The apprentice or trainee must have been in training with a small business as at 1 Mar 2020. Applications open 2nd April
3a. Instant asset write off threshold increased from $30,000 to $150,000 and expanding to include businesses with annual turnover of less than $500 million to 30 June 2020.
3b. Backing Business Investment – a time limited 15 month investment incentive to support business investment and economic growth by accelerating depreciation deductions.
A deduction of 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the assets cost.
Eligible businesses have an aggregated turnover below $500 million so please speak with your accountant about these ones at your earliest convenience.
There will be further reading required to understand exactly how to access all of the monies, but, as it becomes clearer, we will keep you up to date on how we will ensure this stimulus package works for all of our clients.
Contact the ATO to access the options available to assist businesses include:
- Deferring by up to four months the payment date of amounts due through the business activity statement
- Allow businesses on a quarterly BAS to opt into monthly 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
- Remitting any interest and penalties, incurred on or after 23 January 2020
- Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
NB It does not specifically state that you MUST keep superannuation contributions up to date.
The Queensland State Government
- The Queensland Government is responsible for setting our laws in relation to the mass gathering of 500 people – it will vary from state to state so keep yourself posted on this one today.
- Payroll Tax support – defer lodging and paying until 31st July
- Support for tourism and hospitality providers
- waiving application fees for some variations to liquor licences
- waiving registration renewal fees for Inbound Tour Operators
- waiving of daily fees for commercial activity agreements and permits
- rebate on Marina Charges and Passenger Levies
- deferral of Tourism Lease Rent Payments.
- Support for fisheries
- Support for exporters
- Relief for business renting Government premises
- $500 rebate on electricity bills for business
If you have any queries or would like clarification, please contact us via email (in the short term) and we will come back to you with solutions.
Please be aware that we are currently having building works completed and we really can’t conduct phone conversations whilst they are working on replacing the roof due to the noise.
As always, we operate in your best interest and are pleased to assist you.
The KBAS Bookkeeping Team