We have done our best to demystify the information out there in regards to different business structures and what the Government’s stimulus package means for each of you and your business.

If you have questions, please do not hesitate to contact us, we are here to help.

  • If trade reduces by more than 20% can apply for Jobseeker payment and the ‘coronavirus supplement’ – apply with Centrelink via myGov, payments will start from 27 April. You will need to prove you’re not receiving income protection insurance payments and that your business trade decreased by the 20% e.g. comparative profit & loss statement from Jan 2020 onwards compared to Jan 2019 onwards 

 

  • If trade reduces by more than 20% can apply for a max of $10k from super by 30 June and another max $10k from 1 July – apply with the ATO via myGovThe amount is tax freeExact timing of payments depends on passing relevant legislation. Proof of reduction in trade will be needed e.g. comparative profit & loss statement from Jan 2020 onwards compared to Jan 2019 onwards 

 

  • Banks have been given extra funding by the RBA to extend low interest loans to small business as well as offer up to 6months ‘freeze’ on repayments – contact your bank/broker directly for what they can offer you specifically. Remember that the interest capitalises on the balance of the loan during the ‘freeze’ period. The bank may require an increase to your repayments after the ‘freeze’ period, or place a ‘balloon’ payment on the end of your loan 

 

  • The instant asset write-off has been increased from $30k to $150k – such that capital items under $150k will be expensed immediately as a deduction rather than depreciatedThis applies for assets purchased prior to the 30/06/2020 

 

  • State government fees & charges waived for ‘vulnerable industries’ (cafés, bars, trades have been noted to-date) – more details on exactly what is to be waived & how to apply to come 

 Key points: 

  • you will need to have your tax returns up-to-date  
  • you will need comparative Profit & Loss Statements for YE20 and YE19 to prove the downturn in trade – if you don’t have bookkeeping systems or software in place, now is the time to get onto this and get your information ready for reporting 
  • we urge caution in taking money out of your superannuation – the share market is currently in a decline. This should be treated as a last resort option 
  • carefully consider the consequences of ‘freezing’ loans  
  • If trade reduces by more than 20% you can apply for Jobseeker payment and the ‘coronavirus supplement’ – apply with Centrelink via myGovpayments will start from 27 April. You will need to prove you’re not receiving income protection insurance payments and that your business trade decreased by the 20% e.g. comparative profit & loss statement from Jan 2020 onwards compared to Jan 2019 onwards 

 

  • If trade reduces by more than 20% can apply for a max of $10k from super by 30 June and another max $10k from 1 July – apply with the ATO via myGovThe amount is tax free. Exact timing of payments depends on passing relevant legislation. Proof of reduction in trade will be needed e.g. comparative profit & loss statement from Jan 2020 onwards compared to Jan 2019 onwards 

 

  • For quarterly BAS lodgers, a credit of 100% of the PAYG Withholding on your employees wages (up to a max of $50k and a min of $10k) will be applied to your March 2020 quarter BAS – this credit will be applied to your ATO account automatically after 28 April, once your BAS is lodged. You needed to be registered for PAYG Withholding as of 12 March 2020 e.g. 
    • if the PAYG Withholding on your March BAS is $50k you will receive a credit of $50k 
    • if your PAYG Withholding is $15k you will receive a credit of $15k 
    • if your PAYG Withholding if $0 you will receive a credit of $10k) 

 

  • For quarterly BAS lodgers a credit of 50% of the credit you received above in the March Qtr will be automatically applied to your ATO account after 28 July upon lodgement of your June Qtr BAS (up to a max of $25k and a min of $5k); and again after 28 October upon lodgement of your Sept Qtr BAS (up to a max of $25k and a min of $5k) 
    • if the PAYG Withholding on your March BAS was $50k you will receive a credit of $25k for the June BAS and another $25k for the Sept BAS 
    • if the PAYG Withholding on your March BAS was $15k you will receive a credit of $7.5k for the June BAS and another $7.5k for the Sept BAS 
    • if the PAYG Withholding on your March BAS was $0k you will receive a credit of $5k for the June BAS and another $5k for the Sept BAS 
      • The maximum total credit for the 3 above credits is $100k 
      • The minimum total credit for the 3 above credits is $20k 
      • Where these credits put your ATO account in an overall refund position the ATO will pay the refund within 14days after your BAS lodgement 

 

  • For monthly BAS lodgers, a credit of three times of the PAYG Withholding on your employees’ wages (up to a max of $50k) will be applied to your March 2020 quarter BAS – this credit will be applied to your ATO account automatically after 28 April, once your BAS is lodged e.g.  
    • if your March PAYG Withholding is $20k you will receive a credit of $50k 
    • if your March PAYG Withholding is $5k you will receive a credit of $15k  
    • if your March PAYG Withholding is $0k you will receive a credit of $10 

 

  • For monthly BAS lodgers, credits will then begin to be applied to the monthly Activity Statements for April through to September, equal in total to 50% of the credit received for the March Qtr – these will be applied to your ATO account automatically after each lodgement 
    • Examples on this can be a little complex, depending on your withholding  
      • The maximum credit you can receive in total, across all lodgements from March to Sept is $100k 
      • The minimum credit you will receive in total, across all lodgements from March to Sept is $20k 
      • Where these credits put your ATO account in an overall refund position the ATO will pay the refund within 14days after your BAS lodgement 

 

  • Banks have been given extra funding by the RBA to extend low interest loans to small business as well as offer up to 6months ‘freeze’ on repayments – contact your bank/broker directly for what they can offer you specifically. Remember that the interest capitalises on the balance of the loan during the ‘freeze’ period. The bank may require an increase to your repayments after the ‘freeze’ period, or place a ‘balloon’ payment on the end of your loan 

 

  • If you have any apprentices or trainees, you can get a wage subsidy of 50% of their wages paid between Jan & Sept 2020 (up to $21k each apprentice/trainee) – you apply for this through your apprenticeship provider. Payments will be made each quarter (up to a max of $7k each apprentice/trainee) 

 

  • The instant asset write-off has been increased from $30k to $150k – such that capital items under $150k will be expensed immediately as a deduction rather than depreciated. Assets have to be purchased prior to the 30/06/2020 

 

  • If paying payroll tax (wages would have been over $900k), waiver for the next three months – applied automatically (threshold increases to $1m of wages in 2021) 

 

  • State government fees & charges waived for ‘vulnerable industries’ (cafés, bars, trades have been noted to-date) – more details on exactly what is to be waived & how to apply to come 

 

 Key points: 

  • you will need to have your tax returns up-to-date  
  • you will need comparative Profit & Loss Statements for YE20 and YE19 to prove the downturn in trade – if you don’t have bookkeeping systems or software in place, now is the time to get onto this and get your information ready for reporting 
  • we urge caution in taking money out of your superannuation – the share market is currently in a decline. This should be treated as a last resort option 
  • carefully consider the consequences of ‘freezing’ loans  
  • get on to lodging your March BAS (and ongoing) on time  
  • all of your BAS lodgements will need to be up-to-date  
  • it is yet unknown if any refunds on activity statements caused by the PAYG Withholding credits will be refunded if you have an existing ATO debt or offset against that debt 
  • Self-employed people who have their trade reduced by more than 20% can apply for Jobseeker payment and the ‘coronavirus supplement’ – apply with Centrelink via myGov, payments will start from 27 April. You will need to prove you’re not receiving income protection insurance payments and that your business trade decreased by the 20% e.g. comparative profit & loss statement from Jan 2020 onwards compared to Jan 2019 onwards 
  • If trade reduces by more than 20% can apply for a max of $10k from super by 30 June and another max $10k from 1 July – apply with the ATO via myGov. The amount is tax free. Exact timing of payments depends on passing relevant legislation. Proof of reduction in trade will be needed e.g. comparative profit & loss statement from Jan 2020 onwards compared to Jan 2019 onwards 
  • Banks have been given extra funding by the RBA to extend low interest loans to small business as well as offer up to 6months ‘freeze’ on repayments – contact your bank/broker directly for what they can offer you specifically. Remember that the interest capitalises on the balance of the loan during the ‘freeze’ period. The bank may require an increase to your repayments after the ‘freeze’ period, or place a ‘balloon’ payment on the end of your loan 
  • The instant asset write-off has been increased from $30k to $150k – such that capital items under $150k will be expensed immediately as a deduction rather than depreciated. Assets have to be purchased prior to the 30/06/2020 
  • State government fees & charges waived for ‘vulnerable industries’ (cafés, bars, trades have been noted to-date) – more details on exactly what is to be waived & how to apply to come 

Key points

  • carefully consider the consequences of ‘freezing’ loans  
  • you will need to have your tax returns up-to-date  
  • you will need comparative Profit & Loss Statements for YE20 and YE19 to prove the downturn in trade – if you don’t have bookkeeping systems or software in place, now is the time to get onto this and get your information ready for reporting 
  • we urge caution in taking money out of your superannuation – the share market is currently in a decline. This should be treated as a last resort option 
  • Self-employed people who have their trade reduced by more than 20% can apply for Jobseeker payment and the ‘coronavirus supplement’ – apply with Centrelink via myGov, payments will start from 27 April. You will need to prove you’re not receiving income protection insurance payments and that your business trade decreased by the 20% e.g. comparative profit & loss statement from Jan 2020 onwards compared to Jan 2019 onwards 

 

  • If trade reduces by more than 20% can apply for a max of $10k from super by 30 June and another max $10k from 1 July – apply with the ATO via myGov. The amount is tax free. Exact timing of payments depends on passing relevant legislation. Proof of reduction in trade will be needed e.g. comparative profit & loss statement from Jan 2020 onwards compared to Jan 2019 onwards 

 

  • For quarterly BAS lodgers, a credit of 100% of the PAYG Withholding on your employees’ wages (up to a max of $50k and a min of $10k) will be applied to your March 2020 quarter BAS – this credit will be applied to your ATO account automatically after 28 April, once your BAS is lodged. You needed to be registered for PAYG Withholding as of 12 March 2020 e.g. 
    • if the PAYG Withholding on your March BAS is $50k you will receive a credit of $50k 
    • if your PAYG Withholding is $15k you will receive a credit of $15k 
    • if your PAYG Withholding if $0 you will receive a credit of $10k) 

 

  • For quarterly BAS lodgers a credit of 50% of the credit you received above in the March Qtr will be automatically applied to your ATO account after 28 July upon lodgement of your June Qtr BAS (up to a max of $25k and a min of $5k); and again after 28 October upon lodgement of your Sept Qtr BAS (up to a max of $25k and a min of $5k) 
    • if the PAYG Withholding on your March BAS was $50k you will receive a credit of $25k for the June BAS and another $25k for the Sept BAS 
    • if the PAYG Withholding on your March BAS was $15k you will receive a credit of $7.5k for the June BAS and another $7.5k for the Sept BAS 
    • if the PAYG Withholding on your March BAS was $0k you will receive a credit of $5k for the June BAS and another $5k for the Sept BAS 
      • The maximum total credit for the 3 above credits is $100k
      • The minimum total credit for the 3 above credits is $20k
      • Where these credits put your ATO account in an overall refund position the ATO will pay the refund within 14days after your BAS lodgement 

 

  • For monthly BAS lodgers, a credit of three times of the PAYG Withholding on your employees’ wages (up to a max of $50k) will be applied to your March 2020 quarter BAS – this credit will be applied to your ATO account automatically after 28 April, once your BAS is lodged e.g.  
    • if your March PAYG Withholding is $20k you will receive a credit of $50k 
    • if your March PAYG Withholding is $5k you will receive a credit of $15k  
    • if your March PAYG Withholding is $0k you will receive a credit of $10 

 

  • For monthly BAS lodgers, credits will then begin to be applied to the monthly Activity Statements for April through to September, equal in total to 50% of the credit received for the March Qtr – these will be applied to your ATO account automatically after each lodgement 
    • Examples on this can be a little complex, depending on your withholding 
      • The maximum credit you can receive in total, across all lodgements from March to Sept is $100k
      • The minimum credit you will receive in total, across all lodgements from March to Sept is $20k
      • Where these credits put your ATO account in an overall refund position the ATO will pay the refund within 14days after your BAS lodgement 

 

  • Banks have been given extra funding by the RBA to extend low interest loans to small business as well as offer up to 6months ‘freeze’ on repayments – contact your bank/broker directly for what they can offer you specifically. Remember that the interest capitalises on the balance of the loan during the ‘freeze’ period. The bank may require an increase to your repayments after the ‘freeze’ period, or place a ‘balloon’ payment on the end of your loan 

 

  • If you have any apprentices or trainees, you can get a wage subsidy of 50% of their wages paid between Jan & Sept 2020 (up to $21k each apprentice/trainee) – you apply for this through your apprenticeship provider. Payments will be made each quarter (up to a max of $7k each apprentice/trainee) 

 

  • The instant asset write-off has been increased from $30k to $150k – such that capital items under $150k will be expensed immediately as a deduction rather than depreciatedAssets have to be purchased prior to the 30/06/2020 

 

  • State government fees & charges waived for ‘vulnerable industries’ (cafés, bars, trades have been noted to-date) – more details on exactly what is to be waived & how to apply to come 

 

  • If paying payroll tax (wages would have been over $900k), waiver for the next three months – applied automatically (threshold increases to $1m of wages in 2021) 

 

Key points: 

 

  • you will need to have your tax returns up-to-date  
  • you will need comparative Profit & Loss Statements for YE20 and YE19 to prove the downturn in trade – if you don’t have bookkeeping systems or software in place, now is the time to get onto this and get your information ready for reporting 
  • we urge caution in taking money out of your superannuation – the share market is currently in a decline. This should be treated as a last resort option 
  • carefully consider the consequences of ‘freezing’ loans  
  • get on to lodging your March BAS (and ongoing) on time  
  • all of your BAS lodgements will need to be up-to-date  
  • it is yet unknown if any refunds on activity statements caused by the PAYG Withholding credits will be refunded if you have an existing ATO debt or offset against that debt 
  • Banks have been given extra funding by the RBA to extend low interest loans to small business as well as offer up to 6months ‘freeze’ on repayments – contact your bank/broker directly for what they can offer you specifically. Remember that the interest capitalises on the balance of the loan during the ‘freeze’ period. The bank may require an increase to your repayments after the ‘freeze’ period, or place a ‘balloon’ payment on the end of your loan  
  • The instant asset write-off has been increased from $30k to $150k – such that capital items under $150k will be expensed immediately as a deduction rather than depreciated. Assets have to be purchased prior to the 30/06/2020  
  • State government fees & charges waived for ‘vulnerable industries’ (cafés, bars, trades have been noted to-date) – more details on exactly what is to be waived & how to apply to come 

 

Key points: 

  • It is unclear if those that operate via a company or trust structure will be classified as self-employed and qualify for the Jobseeker and ‘coronavirus supplement’, or access their super – will keep you posted on this 
  • However, it’s worth reviewing treating the Directors / Beneficiaries as employees so they can qualify from that perspective (see further information Company/Trust with employees and under Individuals) 
  • Carefully consider the consequences of ‘freezing’ loans  
  • For quarterly BAS lodgers, a credit of 100% of the PAYG Withholding on your employees’ wages (up to a max of $50k and a min of $10k) will be applied to your March 2020 quarter BAS – this credit will be applied to your ATO account automatically after 28 April, once your BAS is lodged. You needed to be registered for PAYG Withholding as of 12 March 2020 e.g. 
    • if the PAYG Withholding on your March BAS is $50k you will receive a credit of $50k 
    • if your PAYG Withholding is $15k you will receive a credit of $15k 
    • if your PAYG Withholding if $0 you will receive a credit of $10k)  
  • For quarterly BAS lodgers a credit of 50% of the credit you received above in the March Qtr will be automatically applied to your ATO account after 28 July upon lodgement of your June Qtr BAS (up to a max of $25k and a min of $5k); and again after 28 October upon lodgement of your Sept Qtr BAS (up to a max of $25k and a min of $5k) 
    • if the PAYG Withholding on your March BAS was $50k you will receive a credit of $25k for the June BAS and another $25k for the Sept BAS 
    • if the PAYG Withholding on your March BAS was $15k you will receive a credit of $7.5k for the June BAS and another $7.5k for the Sept BAS 
    • if the PAYG Withholding on your March BAS was $0k you will receive a credit of $5k for the June BAS and another $5k for the Sept BAS 
      • The maximum total credit for the 3 above credits is $100k
      • The minimum total credit for the 3 above credits is $20k
      • Where these credits put your ATO account in an overall refund position the ATO will pay the refund within 14days after your BAS lodgement 

 

  • For monthly BAS lodgers, a credit of three times of the PAYG Withholding on your employees’ wages (up to a max of $50k) will be applied to your March 2020 quarter BAS – this credit will be applied to your ATO account automatically after 28 April, once your BAS is lodged e.g.  
    • if your March PAYG Withholding is $20k you will receive a credit of $50k 
    • if your March PAYG Withholding is $5k you will receive a credit of $15k  
    • if your March PAYG Withholding is $0k you will receive a credit of $10  
  • For monthly BAS lodgers, credits will then begin to be applied to the monthly Activity Statements for April through to September, equal in total to 50% of the credit received for the March Qtr – these will be applied to your ATO account automatically after each lodgement 
    • Examples on this can be a little complex, depending on your withholding 
      • The maximum credit you can receive in total, across all lodgements from March to Sept is $100k
      • The minimum credit you will receive in total, across all lodgements from March to Sept is $20k 
      • Where these credits put your ATO account in an overall refund position the ATO will pay the refund within 14days after your BAS lodgement 

 

  • Banks have been given extra funding by the RBA to extend low interest loans to small business as well as offer up to 6months ‘freeze’ on repayments – contact your bank/broker directly for what they can offer you specifically. Remember that the interest capitalises on the balance of the loan during the ‘freeze’ period. The bank may require an increase to your repayments after the ‘freeze’ period, or place a ‘balloon’ payment on the end of your loan

 

  • If you have any apprentices or trainees, you can get a wage subsidy of 50% of their wages paid between Jan & Sept 2020 (up to $21k each apprentice/trainee) – you apply for this through your apprenticeship provider. Payments will be made each quarter (up to a max of $7k each apprentice/trainee)

 

  • If paying payroll tax (wages would have been over $900k), waiver for the next three months – applied automatically (threshold increases to $1m of wages in 2021) 

 

  • The instant asset write-off has been increased from $30k to $150k – such that capital items under $150k will be expensed immediately as a deduction rather than depreciated. Assets have to be purchased prior to the 30/06/2020

 

  • State government fees & charges waived for ‘vulnerable industries’ (cafés, bars, trades have been noted to-date) – more details on exactly what is to be waived & how to apply to come 

 

Key Points 

  • It is unclear if those that operate via a company or trust structure will be classified as self-employed and qualify for the Jobseeker and ‘coronavirus supplement’, or accessing super – will keep you posted on this 
  • However, it’s worth reviewing treating the Directors / Beneficiaries as employees so they can qualify from that perspective (referring to the above mentioned PAYG Withholding credits as well as possible options listed under Individuals) 
  • carefully consider the consequences of ‘freezing’ loans  
  • get on to lodging your March BAS (and ongoing) on time  
  • all of your BAS lodgements will need to be up-to-date  
  • it is yet unknown if any refunds on activity statements caused by the PAYG Withholding credits will be refunded if you have an existing ATO debt or offset against that debt 
  • Workers made redundant, workers who have had their work cut by more than 20%, or the unemployed, can apply for a max of $10k from super by 30 June and another max $10k from 1 July – apply via myGov. Exact timing of payments depends on passing relevant legislation  
  • Workers made redundant, or had their work cut by more than 20% can apply for Jobseeker payment and the ‘coronavirus supplement’ – apply with Centrelink via myGov, payments will start from 27 April. You will need to prove you’re not receiving annual leave or income protection insurance paymentsThis will be means tested e.g. if you have a partner whose earning are above $48k, you will not qualify – this may change   
  • Casuals earning less than $1,075 a fortnight will be able to access the $550 a fortnight ‘coronavirus supplement – apply with Centrelink via myGov  
  • Anyone currently receiving Centrelink benefits, family tax benefit, and Age Pension will receive $750 ‘stimulus payment – administered through Centrelink, to be paid from 31 March  
  • A second $750 ‘stimulus’ payment will be made on 13 July IF you do not qualify for the $550 ‘coronavirus supplement’  
  • Those receiving Jobseeker payment, Youth Allowance and Parenting Payment will qualify for a $550 per fortnight ‘coronavirus supplement’  
  • Banks have been given extra funding by the RBA to extend low interest loans as well as offer up to 6months ‘freeze’ on repayments – contact your bank/broker directly for what they can offer you specifically. Remember that the interest capitalises on the balance of the loan during the ‘freeze’ period. The bank may require an increase to your repayments after the ‘freeze’ period, or place a ‘balloon’ payment on the end of your loan. 

 

Key points: 

  • we urge caution in taking money out of your superannuation – the share market is currently in a decline. This should be treated as a last resort option 
  • carefully consider the consequences of ‘freezing’ loans  
  • you will need to have your tax returns up-to date 
  • you will need some proof of the loss in income e.g. payslips, letter from employer 

Awards

Our Location

MJA Business Solutions
Suite 2 & 3/24 Edgar Street,
Coffs Harbour NSW 2450

The Big Red Building
Cnr Mildura & Edgar St

PO Box 4504
Coffs Harbour Jetty NSW 2450

Make Appointment

Please fill up the form below.