Possible Action Required: Assistance for your business to cope with the Coronavirus effects

We have prepared some insights to help you during this difficult time with the Coronavirus (or COVID-19) affecting all of us.

As a business owner, you need to face the possibility of team members being absent from your workplace, product supply issues and demand for your services and products reducing over the short term.

There are 3 urgent things you need to be aware of:

  1. Government Stimulus Package – a Tax Planning meeting with you this year will be VITAL!
  2. Business Continuity Planning
  3. Get your Will and EPOA updated / set up NOW

While we don’t know if we’ll be working from our office or working from our homes in coming weeks, we have invested heavily in the latest technology over the past years, and this means we can keep assisting you no matter what may happen.

For now we are carrying on with normal business operations, however we have tested our remote work systems to ensure everyone has the resources and tools they need to do their jobs from any location. We will continue to support our customers and normal business operations from our office while continuing to monitor advice from Government and health officials.

All members of our team are able to work remotely and have access to all the technology systems and tools they use daily to assist their clients. With our new systems we are able to offer the following to allay any concerns you may have over unnecessary contact:-

  • We can conduct face to face appointments remotely
  • We are able to send tax documents electronically by email plus our new electronic signature system (Docusign) allows you to sign with the click of a button https://www.srfinancialgroup.com.au/signing-documents/
  • You can pay our invoice via the Quickfee page on our website and pay in monthly instalments if you need to spread the cost https://www.srfinancialgroup.com.au/pay-now/
  • Any documents can be left in our dropbox which is located at the right hand side of the entrance door to our building
  1. GOVERNMENT STIMULUS PACKAGE – A TAX PLANNING MEETING WITH YOU THIS YEAR WILL BE VITAL!

The Australian Government has just released a $17.6 billion economic stimulus package. The package has been marketed as a measure to protect the economy by maintaining confidence, supporting investment and keeping people in their jobs.

The key tax and stimulus measures include:

Business Investment

  • From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020.
  • A time-limited 15-month investment incentive (through to 30 June 2021) which will operate to accelerate certain depreciation deductions. This measure will also be available to businesses with a turnover of less than $500 million, which will be able to immediately deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost. As announced, this measure is proposed to only apply to new depreciating assets first used, or installed ready for use, by 30 June 2021.

Cashflow Assistance

  • Tax-free payments of up to $25,000 for eligible small and medium businesses (i.e., with a turnover of less than $50 million that employ staff) based on their PAYG withholding obligations. This is not a cash payment, but it is a credit equal to 50% of the PAYG amounts withheld from salary and wages paid to employees.

Businesses that lodge activity statements on a quarterly basis will be eligible to receive the credit for the quarters ending March 2020 and June 2020. Business that lodge on a monthly basis will be eligible for the credit for the March 2020, April 2020, May 2020 and June 2020 lodgements.

If a business pays salary and wages to employees but is not required to withhold any tax, then a minimum payment of $2,000 will still be made. The minimum $2,000 payment will be applied to the first activity statement lodgement.

  • Wage subsidies to support the retention of apprentices and trainees – Employers with less than 20 full-time employees may be entitled to apply for Government funded wage subsidies amounting to 50% of an apprentice’s or trainee’s wage for up to nine months from 1 January 2020 to 30 September 2020. The maximum subsidy for each apprentice/trainee is $21,000.

Individual Assistance

  • Tax-free payments of $750 to social security, veteran and other income support recipients and eligible concession card holders. It is estimated that around half of those who will benefit will be pensioners. These payments will commence to be automatically made from 31 March 2020.

This year in particular, a Tax Planning meeting with you over the next few weeks would be prudent. We can assist you with opportunities to restructure how you pay yourself so that you can receive the maximum cashflow assistance amounts from the Government.

Contact us TODAY if you would like an appointment with us to ensure you receive your maximum cashflow assistance from the Government.

  1. BUSINESS CONTINUITY PLANNING

As a business owner, now is the time to plan for employees being away from your workplace, shortages of supply, reduction in sales, and the possibility of your workplace being closed for a short period of time if everyone is being forced to self-quarantine.

Over the next few weeks, we are available for consultation in person or remotely to discuss the following:

  • Employees working from home, and workplace obligations
  • How do pay your bills in the short term if your sales start to dry up
  • How to communicate in a reassuring way with your clients and customers
  • How to keep things moving with your business

We’re not suggesting in any way that we have all the answers, but it is important for us to work with you and help you and plan for what will happen in the weeks and months ahead.

Contact us TODAY to book your consultation so we can discuss your business situation and make plans to assist you.

  1. GET YOUR WILL AND EPOA UPDATED / SET UP NOW

If you have to self-quarantine or are admitted to hospital, if you don’t have an EPOA then no-one else can make important business or financial decisions on your behalf.

As a business owner, it is 100% essential that you have an up to date EPOA and Will, and that your family know where these are stored.

NEXT STEPS

These are times when we need to stay calm and rely on reliable news sources and information from State and Australian Government websites. What you see on social media may be panicky and unreliable information – stay away from this!

Our team at Scanlon Richardson Financial Group are here to help you. Please phone us on 03 62313448 if you need any assistance!