Stimulus Package

Government Support – What is means for you?

Link to ATO Support available during COVID-19 Crisis

https://www.ato.gov.au/Individuals/Dealing-with-disasters/In-detail/Specific-disasters/COVID-19/?anchor=Supportavailable#Supportavailable

Support for Households Fact Sheets

https://treasury.gov.au/coronavirus/households

Support for Businesses Fact Sheets

https://treasury.gov.au/coronavirus/businesses

In summary, anything available to apply for, has to be done online via MyGov

CASUALS AND SOLE TRADERS

Sole traders and casual workers who are currently making less than $1,075 a fortnight will be eligible to receive the full supplement.

If you’ve found yourself affected by the economic downturn, you’ll be able to access a “coronavirus supplement” of $550 a fortnight for the next six months.

Sole traders or casual workers who have had their income or hours reduced by 20 per cent or more as a result of coronavirus will also be able to access to up to $10,000 of their superannuation tax-free.

HOUSEHOLDS

If you’re not eligible to receive the coronavirus supplement, you could still be able to claim a $750 stimulus payment.

The payment will be made automatically from July 13 to about 5 million Australians, including those receiving the age pension, a carers allowance or family tax benefit and Commonwealth senior card holders.

EMPLOYERS WHO WANT TO KEEP STAFF

Not-for-profits and small businesses with a turnover under $50 million will receive a tax-free cash payment of up to $100,000 to help them retain staff and continue operating.

“Whether it is a coffee shop or mechanic or hairdresser… by providing at a minimum $20,000 and up to $100,000 for small businesses who employ people, [it] gives them a chance to get to the other side.”

SUMMARY OF NEW PACKAGE:

• Coronavirus Supplement: $550 per fortnight payment for recipients of the JobSeeker Payment, Youth Allowance, Parenting Payment, Farm Household Allowance and Special Benefit for the next six months

• Early access to superannuation for struggling Australians

• Temporary reduction of minimum super drawdown rates

• Extra $750 for some households, including those on social security and veteran income support and eligible concession card holders

• Reduction of deeming rates by a further 0.25 percentage points

• Small and medium businesses with turnover under $50 million, along with not-for-profit charities, will be eligible for a tax-free cash payment of up to $100,000

• Support for airlines

• Temporary relief for financially distressed businesses

• Coronavirus SME Guarantee Scheme: Government to guarantee half a bank’s loan to a small or medium enterprise impacted by the virus

SUPERANNUATION

Individuals struggling as a result of the COVID-19 outbreak will also be able to access some of their super early.

Eligible Aussies will be able to access up to $10,000 in 2019-20, and a further $10,000 in 2020-21.

To take advantage of the offer, you will need to apply online through myGov before July 1.

You won’t need to pay tax on released super, and the money withdrawn will not affect Centrelink or Veterans’ Affairs payments.

The government is also temporarily reducing superannuation minimum drawdown requirements for account based pensions and similar products by 50 per cent for 2019-20 and 2020-21.

It is designed to benefit retirees by providing them with more flexibility regarding how they manage their superannuation assets.

BUSINESSES

The government is providing up to $100,000 to eligible small and medium sized businesses and not for-profits – including charities – that employ people, with a minimum payment of $20,000.

The purpose of this payment is to boost cashflow and allow organisations to keep the lights on – and keep employees on the books.

Under the scheme, which builds upon the first stimulus package, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000.

In addition, the minimum payment is being increased from $2,000 to $10,000. The payment will be available from April 28.

By linking the payments to business to staff wage tax withholdings, the government is hoping businesses will be encouraged to hold on to more of their workers.

The payments are tax free, there will be no new forms to fill out, and payments will flow automatically through the ATO to small to medium businesses with an annual turnover of less than $50 million that employ staff.

And from July 28, eligible businesses will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments received.

Another measure is the Coronavirus SME Guarantee Scheme, which will see the government guarantee 50 per cent of new loans issued by eligible lenders to SMEs.

And the government is also temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.

The package also includes temporary relief for directors from any personal liability for trading while insolvent.

The Corporations Act 2001 will be amended to provide temporary and targeted relief for companies to deal with unforeseen events that arise as a result of the coronavirus.

Staying safe – COVID-19

Amidst the COVID-19 virus crisis, Namro Services like many other businesses, has had to take measures to ensure our staff and their families stay safe so we can keep working for all of our loyal clients. From today’s date Wednesday 18th March until further notice, our office will be closed to visitors and we will no longer be conducting face to face interviews. We are however still open for business and be assured that we are still working on your accounts. We will be welcoming phone calls, Skype calls and emails. As we keep hearing in the media, it only takes one person. So we feel we need to do our bit to keep our staff safe and employed.
Stay Safe and well

ATO offer Free Workshops for small business

The Australian Taxation Office are now offering free workshops for small business

The workshops cover tax essentials, good record-keeping and employer essentials –  all to support your business.

Learn to free up valuable time to spend on your business and not on your books!

Click HERE and then on the State links to view the current offers.

 

Medibank 2016 Tax Statement Delays

 

imgresThe Australian Taxation Office has advised of the following regarding statements for Medibank clients.

“Medibank has advised their customers that their Member Statements may not be available until after the 15th of July 2016. All Medibank customers should have been advised of this situation by now.”

If you are a client of ours and also a Medibank customer, we recommend that you visit the Medibank website below to see if you are affected by the delay. Once you enter the website, you can enter your details for further information.

Click here to Visit website:   https://www.medibank.com.au/health-insurance/annual-tax-statement-faqs/

If you have been affected, you should wait until you receive your statement after the 15th of July before you lodge your 2016 tax return to ensure that you have all the information you need to have it completed correctly.

We will be kept up to date on this situation and will forward any further information onto you immediately.

car

Drive Away a Bargain

The end of financial year car sales are a great way to get a bargain price on the car of your dreams. But before you go down to the car dealership, why not talk to us about getting your financing in place first?

Car finance that’s tailored for you.

Remember, we’re here to help you with finance that’s tailored to fit your personal financial circumstances and particular needs. And unlike the one size-fits-all finance that car dealership provide, we can access a wide range of lenders with a variety of competitive option and loan structures.

A note also to remember is the Government Small Business Incentive of business equipment depreciation (including cars up to $20,000) is still available until the June 30 2017.

Chat to us today!          Call 07 5571 0030

The information contained in this email is general in nature and does not take your personal financial situation into consideration. Your full financial situation would need to be reviewed prior to the acceptance of any offer or product.

Superstream deadline is approaching

Get started now so you are ready by 30 June

If you are an employer it’s important you know about some changes in the way you pay super and that you take action now.

All employers need to use SuperStream when paying super.  This means paying super and sending employee information electronically in a standard format.

If you are not already paying super using SuperStream it’s important you get started soon. The next quarterly super payment cycle is due in April and that is a good opportunity for you to start using SuperStream so you can ensure everything is in place by the 30 June 2016 deadline. Read more

What’s new for individuals

What’s new for individualstradesmanliability1

Before you complete your tax return, there are some changes you should be aware of in case they affect you. Below we have listed a few. Read more

Growing jobs and small business

Growing jobs and small business – expanding accelerated depreciation for small businesses

New laws have passed that allow small businesses to claim an immediate deduction for assets they start to use – or have installed ready for use – provided each depreciable asset costs less than $20,000. This will temporarily replace the previous instant asset write-off threshold of $1,000.

This measure starts 7.30pm (AEST) 12 May 2015 and will end on 30 June 2017.imgres Read more

Time is running out to get SuperStream ready

imagesWith only two quarters left until SuperStream becomes mandatory, we urge you to cross SuperStream off your ‘to-do’ list ahead of the 30 June 2016 deadline.

It takes a little time to set up, but If you haven’t done so already your options to get ready include: Read more

Simplified GST accounting methods for food retailers

Many small food retailers buy and sell products that are taxable as well as products that are GST-free. Others buy taxable and GST-free products and sell only taxable products. Depending on the point-of-sale equipment they use, accurately identifying and recording GST-free sales separately from those that are taxable can be difficult, which makes accounting for GST complicated.

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The ATO have introduced the simplified accounting method for GST purposes (SAM) to make it easier to account for GST. These methods will help you work out the amount of GST you are liable to pay to us at the end of each tax period. Read more