We know many of you are doing it tough at the moment. We are here to support you with your financial needs the best way we can.
Further to our previous email second stage of economic stimulus has been announced on the weekend. Totalling $189 Billion stimulus package aims to support your businesses and employees. Major Banks have also announced measures to assist with deferral of loan repayments.
Supporting the Business cashflow
- Up to a $100k reduction of PAYG withholding payments over 6 months for period between Jan – Jun 2020. With a further similar reduction likely in the Jul – Sept period. In addition, the minimum payment is being increased from $2,000 to $10,000 per quarter meaning that if your business is withholding less than $10k in PAYG per quarter you will be seeing the difference as a credit on your integrated account
- SME Guarantee Scheme, the Government will provide a guarantee of 50% to SME lenders for new working capital loans up to $250,000 for small businesses from 1 April. Government is cutting red tape and streamlining the lending requirements making it easier for business to access the much-needed funds.
- SME’s will have access to defer principal and interest repayments on a range of business loans for up to 6 months. Similar measures are available on personal home loans for impacted small business owners. Note as it stands all lenders are capitalising the interest component meaning your loan will grow slightly during the deferred period.
- ATO is allowing deferral of payment dates for income taxes also allowing remission of interest and penalties incurred post 23 Jan 2020. ATO will also allow business to enter into low interest payment plans.
- NSW state government is providing a 25% reduction on Payroll Tax with no payment required for the months of March, April or May 2020. The tax-free threshold will increase from $900,000 to $1 million from July 2020 providing further relief for next financial year
- Sole traders with a reduction in turnover of 20% or more will have access to early release of superannuation up to $10,000 before 1 July 2020. A further $10,000 will be available from 1 July 2020 for approximately three months. This payment will be tax free
Supporting the individuals and sole traders
- Temporary early release of superannuation up to $10,000 before 1 July 2020 for those impacted by redundancy, unemployment or reduction in employment greater than 20%. A further $10,000 will be available from 1 July 2020 for approximately three months. This payment will be tax free
- Temporarily reducing superannuation minimum drawdown requirements for account-based pensions by 50% for 2019-20 and 2020-21. Benefiting retirees by reducing the need to sell investment assets at a loss to fund minimum drawdown requirements.
- Two separate $750 payments to social security, veteran and other income support recipients
- An additional $550 per fortnight Coronavirus supplement for jobseekers, youth allowance and parenting payment recipients
Cutting the red tape
- Temporary exemption from responsible lending obligations for lenders providing credit to existing small business customers
- Temporary relief to directors’ personal liability for trading while insolvent
- Temporary increase in thresholds for statutory demands on debt and bankruptcy
OUR COMMITMENT TO YOU
Many of you will need our help to navigate these announcements. We are here to help you whether it is assistance in
- Interpreting the government stimulus packages,
- Applying for payment relief from the ATO or lenders,
- Working through strategies during this time of distress
- Accessing the SME Guarantee Scheme, or
- General cashflow assistance with the day to day operation of your businesses
Cash flow will be important to all our businesses over the coming months and therefore we are prepared to offer assistance via payment terms for our services if required. Please do not hesitate to discuss this with us.
Some of our staff will be working from home while others will be in the office. We are keeping our availability as flexible as possible and will remain contactable throughout this period.
Please rest assured that during this time, no phone call or email will go unanswered and we will continue to update you as more comes to hand.
Our thoughts go out to you. Stay strong.
Please contact us if you need to discuss this further.