Well what an ever-changing time we live in. Regulations, laws, business lives and stimulus packages all changing daily that complicate and confuse information in relation to the impact of Coronavirus (COVID19)
From midday on Monday 23 March, 2020, Stage 1 restrictions are in place for places of social gathering. Please note: Victorians will still be able to go to the supermarket, the bank, the pharmacy and access other essential stores, like petrol stations and convenience stores.
The following facilities will be restricted from opening:
· Pubs, registered and licenced clubs (excluding bottle shops attached to these venues), hotels (excluding accommodation)
· Gyms and indoor sporting venues
· Cinemas, entertainment venues, casinos, and night clubs
· Restaurants and cafes will be restricted to takeaway and/or home delivery
· Religious gatherings, places of worship or funerals (in enclosed spaces and other than very small groups and where the 1 person per 4 square metre rule applies).
Business Support Fund
A $500 million Business Support Fund will be set up to assist small to medium businesses most impacted by the Covid-19 virus.
Federal Government Announcements
Between the March 2020 and June 2020 BAS/IAS lodgements, employers will receive a minimum of $20,000 and up to a maximum of $100,000 towards their BAS payments where they had employees. Payment will only be available to employers active before 12th March 2020.
There will be a further round of refunds in the July 2020 to October 2020 period for an additional minimum of $20,000 and maximum of $100,000.
The ATO will take the additional payment into account when lodging your return for you. In the event the additional payment puts the BAS/IASs into a refund position this will be refunded back to the business.
Please see this factsheet FACT SHEET (please note this will download as a PDF) for more information or contact us for any queries
IMPORTANT – No change to employee superannuation guarantee payment due date
Please note, there is no change to the due date for payment of employee superannuation guarantee. The March quarter payment will still be due to employee funds by 28 April 2020. No concessions are available for this.
Apprentice & Trainees
No changes have been made to this initiative which provides employers a 50% reimbursement of employee apprentice/trainee wages for nine months, to a maximum of $21,000 per apprentice/trainee ($7,000 per quarter).
This can be applied after undertaking an eligibility assessment provided by an Australian Apprenticeship Support Network (AASN).
For more information refer to www.dese.gov.au or www.australianapprenticeships.gov.au
FACT SHEET (please note this will download as a PDF)
The government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million).
This proposal applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used, or installed ready for use in this timeframe.
The government is introducing a time limited 15-month investment incentive to support business investment and economic growth over the short-term, by accelerating depreciation deductions. A deduction of 50% of the cost of an eligible asset on installation will apply, with existing depreciation rules applying to the balance of the asset's cost.
Eligible businesses are businesses with aggregated turnover below $500 million.
Eligible assets are new assets that can be depreciated under Division 40 of the Income Tax Assessment Act 1997 (that is, plant, equipment and specified intangible assets, such as patents). This does not apply to second-hand Division 40 assets, or buildings and other capital works depreciable under Division 43.
This applies to assets acquired after announcement and first used or installed by 30 June 2021.
Other Federal Government Measures
Early Release of Superannuation
The government is allowing individuals affected by the coronavirus to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans' Affairs payments.
From mid-April 2020, eligible individuals will be able to apply online through MyGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months. The exact timing will depend on the passage of the relevant legislation.
Eligibility for early release of Superannuation
To apply for early release, you must satisfy any one or more of the following requirements:
· You are unemployed.
· You are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.
· On or after 1 January 2020, either
· you were made redundant
· your working hours were reduced by 20% or more
· if you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.
If you are experiencing financial difficulties with your tax and super obligations because of COVID-19 the ATO will be assisting employers with deferral of payments and extensions for lodgements. Please contact us for any assistance on these matters.
West Currie Consultants Assistance
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We are here to help, if you any queries or concerns please do not hesitate to contact us on 03 55851522 or via email.