A range of measures announced by the Federal Government in recent weeks to assist with the economic impacts of Coronavirus are now law, so we’ve put together this blog outlining how you might benefit from the government’s economic response to Coronavirus.
That means from today (24 March 2020), the instant asset write-off threshold has increased, cash flow for eligible employers is boosted and other measures to ease the blow of the pandemic are in place (see our blog here).
Stellar Account’s Certified Practising Accountant Debbie Hoffman has also outlined a range of other options to ease the financial burden impacting many at this time.
If you have any further questions after reading this, please give us a call on 0428 887 104 for further assistance.
Government passes measures to assist economy during Coronavirus
Over the last fortnight the government announced planned measures to assist millions of people with the widespread financial effects of the Coronavirus.
Numerous measures have since been made law, so here are some ways individuals or businesses can benefit:
- Boosting cash flow for employers: The government is providing up to $100,000, to eligible not-for-profits and small and medium businesses, with an aggregated annual turnover of less than $50 million, so they are able to continue operating, retain staff and pay bills.
- Increasing the instant asset write-off: The instant asset write-off threshold has been increased from $30,000 to $150,000. It will also apply to businesses which have an aggregated annual turnover of less than $500 million. The write-off includes new or second hand assets which are first used or installed and ready to use between March 12, 2020 and June 30, 2020.
- Temporary early release of superannuation: People impacted by the coronavirus can access up to $20,000 of their superannuation – up to $10,000 in the 2019-20 financial year and up to $10,000 in the 20-21 financial year. Those who are eligible will be able to apply online through myGov from mid-April.
- Stimulus payments: Two separate $750 payments will be provided by the government to social security, veteran, other income support recipients and eligible concession card holders. The first payment will commence at the end of March, while the second will be made from mid-July.
- Income support for individuals: The eligibility for income support payments has been temporarily expanded, and the government has also established a time-limited Coronavirus supplement to the amount of $550 a fortnight.
For more information about the benefits for households, head to the Government’s Treasury website here.
Other Ways to Relieve Financial Pressure During the Coronavirus Pandemic
1. Take advantage of ATO relief
Cash is king during these turbulent times.
So, I would suggest small businesses take advantage of the ATO relief:
- Request extensions of time to pay GST and tax debts
- Reduce your PAYG Instalments to Nil
- If possible, request repayment of Sept & Dec 2019 PAYG instalments to keep as much cash as possible to help you trade through
2. Consider getting a short-term loan of overdraft
It might be worth discussing your options with your bank or lender, including a short-term loan, overdraft, reduce repayments or extensions to repay loans.
3. Talk to Centrelink
Have a chat to Centrelink to see if you are entitled to any benefits from them, and if all else fails, consider withdrawing up to $10k from your super fund as a short-term measure which you can repay when the economy recovers.
Are you laying off workers because of coronavirus?
If you are thinking about laying off workers, it is important to consider all options, including leave balances and separation certificates.
In addition, it is worth talking to an expert to ensure it is handled compassionately and correctly.
How you might benefit from the Government’s Economic response to Coronavirus
Our Certified Practising Accountant is here to assist with any queries you have, so please make a booking for a 15 min FREE consult or call us today.
Stellar Accounts is Brisbane’s leading small and new business accounting firm. We have a reputation for simplifying your accounting, tax and bookkeeping needs so you don’t need to stress or worry.
With more than 20 years’ experience across a wide array of industries – our clients (typically small and medium sized businesses) – gain a distinct advantage over their competitors because we keep them in the loop of the latest information and regulatory requirements. Call us on 0428 887 104.
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