Comprehensive Update re Assistance re Coronovirus

Posted on March 26, 2020 by Roslyn Little

Assistance

• Federal Govt
  • ATO
    1. Deferring for up to 4 mths payment of all tax debts prompted by BAS lodgements
    2. Allowing those on quarterly BAS to opt for monthly lodgement to allow faster access to refunds
    3. Allowing businesses to vary PAYG reportable for March2020 quarter to Nil whilst nonetheless accessing the PAYG grant (50%) by reference to their Sep19 and Dec10 BAS lodged
    4. Remitting interest and penalties incurred since Jan23
    5. Allowing business to enter into low interest long term debt payment arrangements
    6. Note businesses will still be required to meet super obligations
  • Cash flow assistance – SME

• • 1. See 3 above – grants of $2,000 to max $25,000 being 50% of PAYG deducted from staff wages
    2. Wage subsidies for apprentices and trainees – 50% of wages for up to 9 months
       • Noting latest update indicates $7,000 per quarter for every apprentice for SME with less than 20 employees
    3. Unsecured loans low interest of up to $250,000 backed by Govt
  • Access super
    1. Available from mid Apr
    2. Access to $10,000 in 19-20 and 20-21
    3. Access via mygov accts – administered by ATO
    4. Eligible
       • Unemployed
       • Made redundant since Jan 2020 or drop in working hours by 20+ hours
       • Self employed and revenue drop 20+ %
  • Trading while insolvent – director liability – moratorium
    1. To have effect immediately
• State Govt
  • Low interest loans
  • Administered by QRIDA
  • Same body administered Townsville Flood relief – I expect even more applns for this
  • Long delays experienced then
  • Already reported over 6,000 expressions of interest in applns
• Banks
  • 6 months deferral of payments for business loans
  • 6 months deferral of payments for residential mortgage loans
  • Other assistance on contact to banker

Other than 3 nominated above (which will occur automatically upon lodgement of BAS) all other requires some form of specific appln or contact.

 

Business management practice

Sadly the Govt is expecting a large # of SME failures in the year ahead notwithstanding support announced and to follow.

 

Do carefully consider your needs presuming at least a 6 months period of very challenging trading conditions.

 

This is a time to be proactive in sourcing all assistance available as well as ensuring adherence to good management practice including:

• Keep your records up to date – this is no time to ‘fly blind’ – indeed many of the support packages will require some form of information provision (current status)
• Keep all normal reporting going – I will be proactive prompting this
• Monitor receivables closely – it is likely that some of your customers will fail – keep close watch of how much you are owed and for how long
• Suppliers – many are an SME like you – be sensible and fair – pay them – if need be proactively agree a payment program