Bookkeeping Blog

Advice and tips for Australian Businesses

PAYG rebate

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This extract has been taken from this link below.

https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/?fbclid=IwAR3HA9t0JC_3mwvXgFFEoyZ94h2m8rYdBn9uiH-9eH3vXAJ-GmckAWMYeKE#Creditamount

‘Legislation has been enacted to provide temporary cash flow support to small and medium businesses and not-for-profit organisations that employ staff during the economic downturn associated with COVID-19 (novel coronavirus). This will be done through two sets of cash flow boosts delivered from 28 April 2020 to support employers to retain employees.  Min is 10K Max 50K

If you are eligible, you do not need to separately apply and upon lodgement of your activity statement, your first amount will automatically be credited to your account but no earlier than 28 April 2020.

The cash flow boosts will be made from the Government’s announced date of 28 April 2020. If you lodge early, you will not receive the cash flow boost before this date.

But also, you must be up to date with your lodgements to be receive so if you are behind now is the time to catch up.

You will be eligible to receive the cash flow boost if you are a small or medium business entity, including not-for-profit organisations, sole traders, partnership, company or trust that:

  • held an ABN on 12 March 2020 and continues to be active
  • has an aggregated annual turnover under $50 million (generally based on prior year turnover)
  • made eligible payments you are required to withhold from (even if the amount you need to withhold is zero).

In addition, you must also have either:

  • derived business income in the 2018–19 income year and lodged your 2019 tax return on or before 12 March 2020
  • made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant activity statement on or before 12 March 2020.

Eg say you withheld 12,000 in PAYG for the Quarter ending 30th March 2020. You will be entitled to the cash flow boost of $12,000 after the 28th April once your March BAS is lodged

Followed by an additional $24,000 after the 28th July once your June BAS is lodged

Followed by final payment of $12,000 after 28th Oct for your Sept BAS

This is a total cash flow Boost of $48,000

Please note this is a credit on your activity statement, if your cash flow boost (Rebate) is more than your activity statement balance you can get a refund into your bank account’

If you need more clarity about the link above, do not hesitate to contact me.

Maree Punzet
Maree’s Mobile Bookkeeping | Over 20 years Bookkeeping experience | Qualified BAS Agent
M: 0429 363 047
www.mareesmobilebookkeeping.com.au

 

 

 

 

COVID-19 CRISIS What the banks are really offering!

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So earlier in the week the reserve bank cut rates and banks are now looking at deferring loan repayments, including mortgages, waiving of merchant fees, overdraft fees etc.

So where will this leave an individual?

Though all banks are facing the same challenges with the uncertainty of the Coronavirus, we as a nation are still in a strong and stable financial system and though the economy is heading towards massive unemployment and a recession, the banks are at least providing assistance where it is needed in these trouble times.

At time of writing this blog post, changes are still being updated by the Prime Minister and Cabinet.

Check out this link where the banks are offering consumers support during this time. https://www.nab.com.au/personal/customer-support/covid19-help/business-support

Maree Punzet
Maree’s Mobile Bookkeeping | Over 20 years Bookkeeping experience | Qualified BAS Agent
M: 0429 363 047
www.mareesmobilebookkeeping.com.au

COVID-19 CRISIS Apprentice stimulus

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So the Government has now brought out a website called the Stimulus Package today 26th March 2020 https://www.stimuluspackage.com.au/stimulus/supporting-apprentices-trainees/

So if you employ an apprentice or trainee, you may be eligible for a wage subsidy of 50% of their wage paid from 1st Jan 2020 to 30th September 2020, and you can register for the subsidy from early April 2020.

I think it’s a great incentive to assist businesses especially now more then ever to retain their apprentices and trainees. Employers will be reimbursed up to a max of $21K per eligible apprentice or trainee ($7K per quarter). Irrespective of size, this will enable eligible out of trade apprentices or trainees for the subsidy. But it does state the apprentice or trainee must have been in training with a small business as at 1 March 2020.

Check out the link above for more details.

Maree Punzet
Maree’s Mobile Bookkeeping | Over 20 years Bookkeeping experience | Qualified BAS Agent
M: 0429 363 047
www.mareesmobilebookkeeping.com.au