It’s never been more important to protect your assets and to know where you can access government support. In this month’s newsletter we’ve included a number of links to support packages that your business may be eligible for. There are also some practical tips for protecting your assets.
JobKeeper Updates
Nominating new employees for August
From 3 August 2020, you may be able to nominate new employees as eligible for the JobKeeper Payment scheme.
These new employees must have been employed by you on 1 July 2020 and meet other eligibility criteria.
- you employed after 1 March 2020
- were employed by you on 1 March 2020 and did not meet the eligibility requirements, but do as of 1 July 2020 – e.g. they turned 18 years old after 1 March 2020 but before 1 July 2020.
Extension of the JobKeeper Payment
The government has announced extensions of the JobKeeper Payment. Required fall in GST turnover will remain the same
-30% for an aggregated turnover of $1 billion or less
-50% for an aggregated turnover of more than $1 billion
-15% for ACNC registered charities other than schools and universities
What’s changed?
Two payment rates
Tier 1 rate – employees and business participants that work 20 hours per week or more
Tier 2 rate – employees and business participants that work up to 20 hours per week
Two extension periods
28th September 2020 – 3rd January 2021 – you will need to show your GST turnover has fallen in the September 2020 quarter relative to a comparable period
Tier 1 payment amount – $1200 per fortnight
Tier 2 payment amount – $750 per fortnight
4th January 2021 – 28th March 2021 – you will need to show your GST turnover has fallen in the December 2020 quarter relative to a comparable period
Tier 1 payment amount – $1000 per fortnight
Tier 2 payment amount – $650 per fortnight
Protect yourself and your assets
In these uncertain times make sure you are doing what you can to look after your wealth… Act or negotiate early…
‘you cannot negotiate with a tiger when your head is in its mouth’ Winston Churchill
What you can do
– Prepare a financial forecast – speak to your advisor about preparing a financial forecast to plan your exit strategy.
Join David on the 15th October as he discusses and demonstrates an example of a forecasting model
– Maintain ATO reporting –If you are experiencing difficulty meeting your tax obligations the ATO will work with you to assist your business find a solution. Speak to your registered tax professional for assistance in dealing with the ATO.
– Communicate with lenders and creditors – re-negotiate payment schedules
– Ensure your security interest are properly documented and recorded on the PPSR
https://www.ppsr.gov.au/
What’s available for small business
The second round of cashflow boosts – if you received the initial cashflow boost, you’ll automatically receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September.
Government assistance and support for business
NSW Small Business COVID-19 Recovery Grant
QLD Small Business COVID-19 Adaption Grant Program
Victoria Business Support Package