client alert
Business Cash Flow Assistance Update
ENHANCED PAY AS GO WITHHOLDING REBATE |
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Businesses with turnover of under $50 million will be eligible to receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000. |
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APPRENTICE WAGE SUBSIDY |
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Business who employ apprentices and trainees will be offered a subsidy of 50 per cent of an apprentice or trainee's wage for nine months (1 January 2020 to 30 September 2020). To be eligible, you must employ fewer than 20 full-time staff who retain an apprentice or trainee. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer. |
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DEFERRED ATO DEBT AND GST CREDITS |
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Payment Deferrals If you or your business has been affected by COVID-19, the ATO will work with you to defer some payments and vary instalments you have due. These include your income tax, activity statement, pay as you go (PAYG) instalments, FBT and excise payments by up to six months. |
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Monthly GST Credits |
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Turnover more than $20 million If your GST turnover is more than $20 million you must pay and report monthly. |
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Turnover less than $20 million It is worth considering if you should temporarily change your reporting cycle. |
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PAYG instalments |
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Low interest payment plans |
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NSW PAYROLL TAX RELIEF |
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Payroll tax customers whose total grouped Australian wages for the 2019/20 financial year are no more than $10 million will have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July. |
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MINIMUM PENSION PAYMENT RULES – SUPERANNUATION |
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The lowest percentage factor for the minimum pension payment rules would be halved from 4% to 2% for the 30 June 2020 year, and 30 June 2021 year. |
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INSTANT ASSET WRITE OFF |
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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. In 2017-18 there were more than 360,000 businesses that benefited from the current instant asset write-off, claiming deductions to the value of over $4 billion. This measure will support over 3.5 million businesses (over 99 per cent of businesses) employing more than 9.7 million employees. |
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ACCELERATING DEPRECIATION DEDUCTIONS |
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Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset's cost. |
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BANKS |
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Interest Rate Reductions |
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RENTAL LEASES |
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Contact your Landlord or managing agent whether you have access to any rental reductions or moratoriums or seek Specialist Help (see below) |
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THOMAS HOPPER AND PARTNERS FEES |
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Access our easy online Fee pay by monthly instalments* |
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Important: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval. |