Businesses big and small have been devastated by the coronavirus, and that devastation, unfortunately, doesn’t look like it will let up anytime soon. Fortunately though, our government has announced a range of measures that will help get us through the next few months with our businesses intact.
But how on earth do we understand what they are and what applies to us?!?
While it’s clear the Australian government is here to help, the detail of what exactly they’re doing eludes most people, and with so much else on our plates, it’s hard to find the time to investigate everything in detail.
In our webinar, we delve into all the details with special guest, Davie Mach. Davie is the Founder of Box Advisory Services, a chartered accounting firm that specialises in small business. In the webinar, he runs through what the government has offered in their various stimulus packages, and what you need to do to be eligible. He also runs through various financial options if you find yourself really stuck.
If you’re a business with employees, the government’s first stimulus package can help you. This stimulus package was aimed at businesses with a turnover of less that AUD $50 million, and was touted as offering ‘cash flow assistance.’ But this terminology was confusing, says Davie, as the payments aren’t technically ‘cash.’ Davie explains that they’re more of a credit:
‘That first cashflow boost payment, as it was called, is between $20,000 - $100,000 and it's not actual cash but instead, a credit against your PAYG withholding tax (the tax you pay to your employees).’
‘For example, say in any given quarter you’re withholding $15,000 of tax against your employees’ wages and then paying $10,000 in GST, and you are submitting this via our BAS.’
‘Under this first stimulus package, you could be credited that $15,000 back.’
There are a few things you need to do to be eligible, though, Davie says. Find out what they are in the webinar. Access it here.
The first stimulus package was great for businesses with employees, but what about sole traders and micro-businesses? Fortunately, they are looked after in the government’s latest package, the Jobkeeper payments.
Davie explains the payments as follows:
‘If you’re a sole trader and your business has lost 30% or more of its revenue, you’ll be eligible for $1,500 per fortnight. If you’ve got employees, they’ll be eligible for it too.’
‘To prove that you’re eligible, you’ll need to show that in the same quarter last year (April to June), you were earning 30% more than you are now. This will be managed online, and if you’re a sole trader, it will be managed via your BAS reporting.’
‘This relief is great for micro-businesses as it is cash - it’s cash paid directly to your bank account. Payments start in May, but they’ll be back dated to 30 March.’
Like everything though, there are a few eligibility requirements. Davie explains them in the webinar, access it here
Listen to the webinar now to ensure you know what relief you’re eligible for and what your options are.
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All advice provided is general advice only. Please consult an accountant or financial advisor for specific advice on your personal situation.