https://www.directorinstitute.com.au/di/wp-content/uploads/2016/06/icons-di-logo-gold.jpg 400 400 amberharrison22 https://directorinstitute.com.au/di/wp-content/uploads/2016/06/Logos-for-Web-with-Gold-Overlay-white-next-gen.png amberharrison222020-03-26 14:42:352020-03-26 17:20:27Advice for Business on the economic effects of COVID-19 from Theo Kotselas, Archangel Wealth
|We have had a significant number of enquiries from our clients, who are concerned about the economic effects of COVID-19 (coronavirus) and how the various Government measures can assist their particular situation.|
A summary of the various measures released by the Australian Government to date, to assist with cushioning the financial impact of COVID-19 is here.
However, please understand that the package is designed to provide tax benefits for businesses. It is not a cash handout. This means:Businesses will need to spend money to get a portion back.if you’re not making profit or employing staff or apprentices, then these measures will not provide great assistance.
Below is a set of strategies to assist in maintaining cash flow to enable the business to survive through, what looks to be, an extended lockdown, where your business may be unable to trade.
We highly recommend you take a proactive approach and avoid delaying these actions.
Defer all tax liabilities with the ATO until after July 2020. We can work with the tax office to ensure you able to take advantage of the various measures installed to promote this outcome.
Reduce staff hours and reallocate work for staff where you can’t reduce hours. Ensure you meet with your staff as soon as possible. Ensure you meet the various workplace laws as further detailed in the attached PDF.
Contact your banks to defer loan repayments for six months.Apply for additional loans (as intended under the new governments measures) to bolster your working capital. Our mortgage division can work with you and the financial institutions to find the most appropriate deal for your circumstances. Understand your cashflow by establishing a conservative 6 month forecast. Communicate with customers and tell them what you are doing. Determine whether you need to or can continue to provide services. Review and manage each client’s credit risk. Call your landlord to discuss and negotiate a temporary reduction in rent. Speak to your major creditors and discuss a payment plan especially if you require ongoing services and supplies from them during this period.Speak with your suppliers and understand their situation to determine whether there will be a disruption to your supply chain. Consider contingencies such as building up stock levels or identifying substitutes.Defer any further payments such as utilities and ongoing services.
|Below is a summary of the measures the Government has introduced to assist in these difficult times:|
For your business:Instant asset write off threshold increases to $150,000 till 30 June 2020. 50% asset write off available till 30 June 2021. Pay As You Go Withholding (PAYGW) rebates available up to $100,000. 50% Rebate on apprentice and trainee’s wages Special Tax office assistance Relaxed Insolvency measures to reduce the threat of actions from creditors Temporary early release of superannuation Support to regions and communities most affected NSW Payroll tax exemptions available NSW Government to reduce fees and charges More funds have been made available for lending New unsecured loans backed by a 50% Government guarantee Red tape removed to speed up loan applications Loan interest rates reduced Banks offer loan repayment holiday
For yourself:Income support for individuals. Payments to support households. Temporary early release of superannuation. Temporarily reducing superannuation minimum drawdown rates. Reducing social security deeming rates Click here for a detailed version of the above providing in depth information on how these measures can assist you and your business.
We encourage you to contact one of our trusted advisors to provide tailored advice to your personal and business situation.
We are all fighting this fight together- we are here to help you!