Economic Stimulus and Considerations – Additional Information
Please note that this information has not been verified by the MA Board. It has been provided to us by third parties and we are passing it onto you in an effort to provide you with information that may assist you to understand what kinds of financial support may be available to you. Where you can, you need to talk to your accountant or financial adviser for advice that fits your circumstances. In some cases, your super fund may be able to assist you if you don’t have a financial adviser.
Source: Julie Doyle (http://www.jedsbookkeeping.com.au/)
You should research these pages and determine if any of their offering will assist you and your cashflow. If you have a Business or Private Banker, call them, they should be ready to offer assistance.
Australian banks have hardship teams ready to help – https://www.ausbanking.org.au/campaigns/financial-hardship/
Other areas you should investigate:
Contact your landlord and negotiate rental relief. This could take the form of a % reduction for the next few months or a delay in payment for ‘X’ number of months.
The Federal government are relaxing the Bankruptcy and Insolvency conditions to protect as many businesses as possible.
If you have staff:
Not-for-profits and small businesses will receive a tax-free, cash payment of up to $100,000, with a minimum payment of $20,000 for eligible companies:
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. These payments will help businesses’ and not-for-profits’ cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.
Under the enhanced scheme from the first 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 28 April 2020.
By linking the payments to business to staff wage tax withholdings, businesses will be incentivised to hold on to more of their workers.
Please refer your employees to Centrelink, as some of them may be able to qualify for the support payments offered in stimulus two. Even standing them down, can give them access to support payments immediately if they qualify.
Please refer your contract staff to Centrelink and to the ATO website, as the ATO will allow ABN holders to pull out some super funds if they can show a 20% reduction in income. $10k in 2019/20 year and $10k in the 20/21 year.
Please ensure you chase up your apprentice companies for the stimulus offered for apprentices in stimulus package one.
Finally – call your accountants and financial advisors for their support and assistance as they are more aware of your full financial circumstances
The following information has been provided by Nagle Accountants
In the latest measures Newstart recipients will also be eligible for an additional $550 per fortnight on top of their existing payment. This is slated to be in place for the next six months at this point.
If you have recently been stood down, lost your job or have had your sole trader work reduced you may also be eligible for the Jobseeker payment (Newstart + coronavirus supplement).
The means test and waiting periods have been waived however the income tests still apply. If your partner earns more than $48,000 per annum (later to be increased to $75,000) you will not be eligible. Links for income limits and more details are available here.
To apply for benefits you need a MyGov account – this can be done on-line.
You also need a CRN from Centrelink – this is a customer number which needs to be obtained in person though some people report success over the phone. Expect that wait periods during these times may be extensive.
You then need a MyGov linking code to link to Centrelink to MyGov. You can get this over the phone or in person. This part can be tricky as someone at Centrelink needs to create it.
Once you have gone through these steps you will then be able to apply for the Jobseeker payment through MyGov.
We again wish to reinforce the importance of calling your accountant or financial advisor for their support and assistance as they are more aware of your full financial circumstances.
You may also wish to contact your superannuation fund, as early access to super is available in some circumstances.