Assistance during COVID-19

Updated: Mar 16, 2020

M & C Accountants comments

The Australian Taxation Office (ATO) have stated that they will work with taxpayers to implement the right solution for them rather than a one solution fits all policy.

M & C Accountants suggest you contact us to go through your situation and work out which measures will suit your needs best during this time. We will then communicate with the ATO on your behalf and complete all necessary paperwork for you.

A Fiscal Stimulus Package was announced on Thursday 12 March 2020 to assist taxpayers in these unprecedented times. Measures include;

Cashflow Measures

- Up to $25k tax free payment for employers

(Business with an annual turnover <$50m, Must have employees between 1 January and 30 June 2020, Minimum payment to employers of $2k, Tax Free payment is not in cash, rather it is a credit applied in your Activity Statement, calculated as 50% of your PAYG withheld on wages amount)

- Small businesses employing apprentices and trainees may apply for a 50% wage subsidy

(Wage subsidy from 1 January to 30 September, Maximum subsidy is $21k. Applications can be made from April 2020. Must meet the eligibility criteria)

- Up to to 4-month extension of Business Activity Statement (BAS) payment date

(BAS lodgement date will not be extended, January to March is due 21 April if you prepare it or May if we assist)

- Up to 4-month extension on Income Tax and Fringe Benefit Tax amounts payable

- Quarterly BAS clients can elect to become monthly BAS lodgers to enable them to receive their GST refunds quicker

- Businesses can vary their PAYG Instalment to $0 in the January to March 2020 BAS

These businesses can also get previous PAYG Instalments paid in the July to September and October to December 2019 BAS’s refunded to them to assist the business manage its cashflow.

- The ATO will look to remit General Interest Charges and penalties where possible

- ATO Payment arrangement process will be easier to access

- Reduced interest rate payment arrangements will be available

Tax Incentives for Businesses

- $150k Instant asset write-off for assets purchased, installed and ready for use between 12 March 2020 and 30 June 2020

(For businesses with a turnover of <$50m. This limit will reduce to $1k on 1 July 2020)

- 50% asset write-off for assets purchased between 12 March 2020 and 30 June 2021 that are above the instant write off threshold

(For business with a turnover of <$500m)

Stimulus payments

- $750 payment to veterans, social security and other income support recipients including eligible concession card holders and pensioners.

(Limited to one payment per person, available from 31 March 2020)

- The Federal Government has set aside $1b to support those communities and regions that have been unduly affected by COVID-19 such as tourism, education and agriculture.

*Legislation to enact the above measures is expected to go through parliament on 23 March 2020.

*Points to note*

*The instant asset write office is a great tax deduction but not the best solution for those businesses making a loss or business that do not need new assets as you must purchase (spend money) to be eligible.

*Many of the above items are extensions. They are not designed to get you out of tax payments but rather to give you more time to pay.

This truly is an unprecedented event where business and individuals will feel the impact of COVID-19 either directly or indirectly. Our staff are currently working from home (thanks to today's technology) and attending webinars to stay up to date. They will independently choose whether to meet, call, email or skype with clients as the situation unfolds.

Stay safe and reach out as we are only a phone call, sms or email away

**The best way to stay safe is to make sure you wash your hand with soap for 20 seconds or use santiser with alcohol in it regularly**