March 2020 .3

• Boosting Cash flow for employers
• Supporting Apprentices and Trainees
• Temporary relief for financially distressed businesses
• Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme
• Supporting Individuals and Households:
• Income support for individuals

Legislation has been passed and we can now provide further detail to the governments stimulus packages/s. Please see the following information, we have copied and pasted some info from treasury releases to speed up distribution to clients so my apologies if it’s a bit messy!

Businesses: It is important to note, that the value of the ‘payment’ will be credited to your ICA (BAS/GST) account, thereby reducing the amount of cash that would be payable to ATO for a BAS or IAS. Any credit remaining on the account will be refunded in the usual way

For ALL business operators – We are taking bookings now for strategic planning meetings where, among other items we can demonstrate in terms of $$ how much and when the credits will appear on your ICA (BAS/GST) account. We will develop strategies on managing your cash flow and can assist in collate information required for banks etc in relation to applications to suspend loan/mortgage payments etc or to access the SME Guarantee Scheme. The fee for this service is $220 and will be added to your next invoice. Meetings will be held in this office (for now) using the social distancing rules. Please contact Diane if you are experiencing financial difficulties and need a payment plan with us. We ARE here to help!

Individuals: Your first step is to set up your MyGov ID so you can connect with Centrelink and obtain a required reference number for any online applications to proceed

Boosting Cash flow for employers:

Small businesses: payment equal to 100% of their salary and wages withheld (up from the original 50%- payment $10,000 to $50,000)

Jul-October 2020 – eligible entities will receive an additional payment equal to the total of the Boosting Cash Flow for Employers (as above)- this means the overall total minimum payment would be $20-100k

The purpose of these payments is to keep people employed

Eligibility: Boosting Cash flow for Employers Payment

Eligibility- Additional Payment:

To qualify the entity must continue to be active. For monthly lodgers (IAS) the payments will be received by way of credit in the activity statement system. It will be equal to a quarter of your total initial Boosting Cash Flow for Employers Payment following the June, July August and September activity statements (up to a total of$50k)

For quarterly lodgers) the payments will be received by way of credit in the activity statement system and will be equal to half of your total Boosting Cash Flow for Employers Payment following lodgement June and September activity statements (up to a total of$50k)

The above is contingent on lodging their activity statements (and on time)

Supporting Apprentices and trainees:

Employers can apply for wages subsidy of 50% of the apprentices or trainees wages paid from January to September 2020. Employers will be reimbursed up to a maximum of $21k per eligible apprentice. The apprentice or trainee must have been employed from March 1. 2020

Temporary relief for financially distressed businesses:

Increase to the instant asset write off AND Backing business investment – email admin@bennettstax.com.au for a fact sheet

Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme

The Scheme will enhance lenders’ willingness and ability to provide credit, supporting many otherwise viable SMEs to access vital additional funding to get through the impact of Coronavirus.

The Scheme will be available for new loans made by participating lenders until 30 September 2020.

The Coronavirus SME Guarantee Scheme will provide small and medium sized business with timely access to working capital to help them get through the impact of the Coronavirus.

The Government will provide eligible lenders with a guarantee for loans with the following terms:

• SMEs, including sole traders, with a turnover of up to $50 million.
• Maximum total size of loans of $250,000 per borrower.
• Loans will be up to three years, with an initial six month repayment holiday.
• Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.

Note however, the decision to lend is up to the bank

Supporting Individuals and Households:

Temporary Early release of superannuation – up to $10,000 of superannuation in FY 2020 and $10,00 in FY 2021 –(claim pre 30 June 2020 AND claim again in July 2020) no tax on funds release and will not affect Centrelink of Veterans Affairs payments

Temporarily Reducing Super minimum drawdown rates for account-based pension for FY 2020 and FY 2021 – Fact sheet available – email: admin@bennettstax.com.au

Income Support for individuals-

Increased and accelerated income support – new and time limited Coronavirus supplement at the rate of $550 per fortnight. Paid to existing and NEW recipients of the eligible payment categories. These changes will apply for the next 6 months.

Eligibility- Payment categories:

Payments to support households: $750 payment to social security veteran and other income support recipients and eligible concession card holders (from March 31) and the second payment July 13 2020.

The payment will be exempt from taxation and not count as income for the purposes of Social Security income support payments or Veterans Affairs payments.

For further info re eligibility etc, email admin@bennettstax.com.au and a fat sheet will be sent to you.

Faster Claims process: Applicants are encouraged to apply thru on-line and mobile channels or over the phone.

First – If you have not done so already – Set up your MyGov access and then  you will be able to access the Centrelink links for online applications.

Sole traders– will be required to make a declaration that their business has been suspended or had turnover reduced significantly.

Temporary Early release of superannuation – up to $10,000 of superannuation in FY 2020 and $10,00 in FY 2021 –(claim pre 30 June 2020 AND claim again in July 2020) no tax on funds release and will not affect Centrelink of Veterans Affairs payments

Temporarily Reducing Super minimum drawdown rates for account-based pensions for FY 2020 and FY 2021 – Fact sheet available – email admin@bennettstax.com.au