As you will all be aware the Australian Government has announced a business and economic stimulus package, this includes matters covered by the Australian Taxation Office, below are the methods and criteria of claiming.
Boosting cash flow for employers
Provides up to $100,000 to eligible small and medium sized businesses, and not-for-profits (including charities) that employ people, with a minimum payment of $20,000.
Temporary Relief for financially distressed businesses
Increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive. Including a temporary increase in the threshold a creditor can initiate bankruptcy proceedings.
Increase in Instant Write off
The Government is increasing the instant asset write-off 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) until 30 June 2020.
Business Activity statements
Jan – Mar due May 2020
April – June – due July/ August 2020
This includes following:
- Cash or credit for withholding tax
- Deferral of time to lodge
- Deferral of time to pay
- Elimination of penalties and interest charges
Income support for individuals
There is an amount of supplement to pay at the rate of $550 per fortnight, the application will be via Centre Link and will need to be handled by clients directly.
Payments to support households
Two separate payments will be made to eligible payment recipient’s concession card holders. Individuals will need to lodge a claim to quality for these payments.
First Payment: 12 Mar 2020 – 13 April 2020
Second Payment: 13 July 2020
These payments are $750 and are exempt from tax and will not count as income for the purposes of Social Security.
Another response will be supporting the flow of credit whereby the Government and Reserve Bank will provide lenders with guarantees for loans as a result of economic downturn. This would seem to be a measure that will not be accessed by people unless they are in difficult financial circumstances.
Self Managed Super Funds
These will be able to reduce the amount of pension required in order to comply with the existing concessional taxation treatment i.e. if your minimum is 4% it will now be 2% at your discretion.
For further information please contact our office