Government support for business 

Stimulus Package - Support measures to assist those affected by COVID-19

Much has been said in the media and here is a summary - PLEASE NOTE this information may change and we keep you updated as details are confirmed - THIS IS WHAT WE UNDERSTAND NOW

All of these measures rely on March BAS being lodged as usual on time - please assist KRS in supplying information in a timely manner so we can lodge on time

Please read the information below and consider :

Key measures:

• If you with hold from your employees pay (PAYGW) you will receive 50% of your PAYGW amount of your March PAYGW amount as a credit to your Integrated Client Statement account at the ATO - you are not necessarily receiving a cash refund - rather a credit onto your account - so when we lodge the March BAS and you owe PAYGW - 50% of this amount will be credited back to you.

 ACTION : Supply information to KRS as usual by due dates so we can lodge as usual on time - then WHEN the ATO apply the credit your payment amount will reduce. WATCH THIS SPACE

• Deferring by up to four months the payment date of amounts due through the business activity statement (BAS) - (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise

  ACTION : Supply information to KRS as usual by due dates so we can lodge as usual on time - then you can access these measures by contacting your accountant or the ATO on

• Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to

ACTION : ONLY if you regularly receive a GST refund on your quarterly BAS should you consider this - contact your accountant

• Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quartersACTION : If you have a PAYGI (Pay as you go instalment) - this applies to you - you need to contact your accountant and provide to us (via email) an instruction to vary to zero.

• Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities

ACTION :Supply information to KRS as usual by due dates so we can lodge as usual on time - then you can access these measures by contacting your accountant or the ATO

• Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.

 ACTION : AFTER lodgement - you can contact the ATO to enter one of these payment plans - Supply information to KRS as usual by due dates so we can lodge as usual on time - then you can access these measures by contacting the ATO

• Do you employee Apprentices ? And do you have less than 20 full time employees ? There is a subsidy available of 50% of the Apprentices’ wage. They must have signed a Training Agreement by 1/3/2020 and the wages subsidy will be 50% of the wage from 1/1/2020 to 30/9/2020 up to a maximum of $20000 for the period.

ACTION : This will need to be applied for - applications will start 1/4/2020 - refer below for more information

  www.australianapprenticeships.gov.au

• PROPOSED : Assets - there has been an increase to the limit of Instant Asset Write off (previously $30000) - this means you can purchase eligible assets (cars, equipment etc) up to $150000 (as long as your turnover is under $50million) and this may be treated as an expense - this is something you need to seek advice from your accountant before proceeding.
• This limit will change as at 30/6/2020 back to $1000 per asset so important to consider the timing of any purchases.
• ACTION : Assets must be purchased and installed for first use by 30/6/2020 - please consult your accountant prior to entering any finance or contract agreements - KRS will need Tax Invoices and Finance Contracts of all Asset purchases as per usual

PLEASE NOTE

Employers will still need to meet their ongoing super guarantee obligations for their employees. THERE IS NO CHANGE TO SUPER DEADLINES.

We expect to see a increase in the numbers of clients wanting March BAS completed early - given some of the measures have not passed Parliament and they will not be instant refunds - we STRONGLY suggest it is business as usual - provide the information as soon as possible to us to enable lodgement on time and then action as per above.

Now is a great time to have a pro active discussion with your accountant so you have a plan in place.

Watch this space and we will keep you informed!