We sincerely hope you and your families are healthy and financially secure as you navigate your way through this period of unprecedented uncertainty.
We will work closely with you to ensure that you are able to come through the other side of this situation in the best position possible.
We have been warned to brace ourselves for a six month battle with coronavirus, and during this period, communication and preparation will be key.
We will reach out again later this week with some precautionary steps you can start taking to ensure that from a financial perspective, you and your business are in the best position possible to withstand this difficult economic climate.
You likely have already heard about the stimulus that the Government announced late last week to help support small business. This will not be the last of the stimulus packages announced, and I believe as we write this newsletter, more stimulus and concessions are being considered and will likely be announced in the coming days. We are here to help, and available to take your calls and answer your emails – please don’t hesitate to reach out!
What is available now?
Cash Flow Boost for Employers
Up to $25K per business is being made available to employers with an aggregated annual turnover of less than $50 million to try and keep staff in jobs.
Supporting Apprentices & Trades
Up to $21K per apprentice/trainee will be made available to small businesses with fewer than 20 full-time employees.
Increasing the Instant Asset Write-Off
Small to medium size businesses with an aggregated annual turnover of less than $500 million will be eligible to claim an immediate deduction for asset purchases up to $150K between now and 30 June 2020.
In addition to the above, the following depreciation concessions will also apply:
- 50% immediate deduction on asset purchases in excess of $150K between now and June 30, 2020.
- 50% immediate deduction on asset purchases for all purchases over $1K between July 1, 2020 and June 30, 2021.
The ATO is offering assistance at this time with increased flexibility around payment due dates, low interest payment plans, and remission of interest charges.
As mentioned, there is a lot to take in, and with more relief to come, we will aim to stay in regular contact with you to help you through this period. Our team is here to support you in anyway that we can, so please reach out at any time. We are looking forward to hearing from you shortly, and please keep an eye out for our further communication to come.
Tim, Warren and Josh.