Cash Flow Boost for Employers
If you currently pay yourself a wage (via a company/trust only) or have employees and are registered for wages, you can be entitled to receive a payment of minimum $2,000 up to $25,000.
This is a temporary cash flow support for small to medium businesses who employ staff. This payment will be tax free.
The amount will be presented as a credit on your activity statement by the ATO once you lodge your statement.
Quarterly lodgers will be eligible to receive payment for March 2020 and June 2020 quarter.
Monthly lodgers will be eligible to receive payment for March, April, May and June 2020 lodgements.
Such payment will be used to offset your GST/BAS payment.
Quarterly lodgers will receive 150% of payment to be equivalent to the Monthly lodger.
There is no advantage over the other being monthly to quarterly other then the cash injection will be provided sooner being Monthly.
There is a cap so it will not exceed $25,000.
If you draw a wage from a sole trader or partnership, this cash flow boost WILL NOT apply unless you have staff.
Supporting Apprentices and Trainees
Wages subsidies by the government will be provided ie 50% of the apprentice’s wage or trainee’s wage paid during the 9 months
from 1st Jan to 30th September 2020. Maximum entitlement of $21,000 for eligible apprentice or trainees ie $7,000 per quarter.
You have to have less then 20 full time employees, your apprentice or trainee must be in training from 1st March 2020. You will need to register from early April 2020. Final claims lodged by 31 December 2020.
Further information is available at:
The Department of Education, Skills and Employment website at: www.dese.gov.au
Australian Apprenticeships website at: www.australianapprenticeships.gov.au. For further information on how to apply for the subsidy, including information on eligibility, contact an Australian Apprenticeship Support Network (AASN) provider.
Business Boost – Small Business Asset Write off
Increased from $30,000 to $150,000 from 12th March. This means any assets you purchase for your business from now above $30,000 you can immediately write off.
Note each individual circumstances have to be reviewed due to pre-existing pool balances and assets.
This is not a CASH payment but more encouraging businesses to spend money if holding off now to get tax advantage. You still need to evaluate if your business can financially afford such purchases.
This is a timely reminder that we offer once a year or if built into our packages, Annual Tax Planning where we can evaluate your current tax and cash flow position. Please contact our office to arrange this to commence mid April – mid May.
Note, You may be looking at changing from a sole trader, partnership and your whole situation needs to evaluated prior to the changeover not just to obtain the cash payments on wages for the stimulus package.
Please contact me for further info or to make an appointment
emma@grimaaccounting.com.au
www.calendly.com/grima