COVID-19 has had a major impact on our community and our thoughts are with you.

Whilst there are still many unknowns about the situation, Geared’s duty is to ensure that we continue to support you in any way that we can during this time.

To limit the potential disruption to your business and to support the global goal of slowing down the virus, the Geared team will be working remotely. Over the years we have invested in systems and have trained and encouraged our team to work from home in case of sickness or emergency, and we are well prepared.

As a result, we will be able to continue to provide our full services to clients and our community throughout this time.

For the immediate future, we have however suspended all non-critical, face-to-face meetings until further notice. Instead, we’ll be able to organise telephone or video conference meetings accordingly to avoid any interruptions to your services.

If there is anything we can do to assist you please don’t hesitate to give us a call on 03 9079 0960 or email us at support@gearedfinance.com.au.

 


 

WHAT YOU NEED TO KNOW ABOUT THE STIMULUS PACKAGE

In response to the economic impact of the Coronavirus, the Australian Government has announced investment packages to support the economy. So far, the Government has introduced three stimulus packages to assist small and medium businesses. 

The stimulus packages are focused on supporting wages and business investment, providing cash flow assistance, targeted support and household stimulus payments.

On 30 March, the Government announced the $130 billion JobKeeper Payment to help keep Australians in jobs as we deal with the significant economic impact from the Coronavirus. This brings the Government’s total support for the economy to $320 billion.

The Prime Minister has warned that there are no “quick solutions” and that business should prepare for 6 months of disruption.

Here’s the key information you need to know.

 

CASH FLOW BOOST FOR EMPLOYERS

  • 100% Cashback on PAYG Withholding, up to $100,000
  • 50% subsidy on apprentice wages, up to $21,000

Instant asset write-off increased to $150,000 up to 30 June 2020 for new and second-hand assets.

50% investment incentive for a limited 15 months to 30 June 2021 for newly acquired assets only.

ATO Concessions:

  • Six Month Tax Deferrals
  • Change in GST Reporting Cycle
  • Variation to PAYG Instalment – possibly to zero
  • Remission of penalties and interest

JOBKEEPER PAYMENT

Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy
from the Government to continue paying their employees. Affected employers will be able to claim a
fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of
6 months.

STATE CONCESSIONS

  • Victoria: Payroll tax concessions, Liquor Licence fees waiver, rent assistance for commercial tenants in Government buildings, Land Tax payment deferral and Business Support Fund.
  • New South Wales: Payroll tax concessions and Liquor Licence fees waiver.
  • Western Australia: Payroll tax concessions, and a one-off grant of $17,500.
  • Queensland: Interest-free loans up to $250,000 and Payroll tax concessions.
  • Tasmania: Interest-free government loans for specific industries and Payroll tax concessions.
  • Northern Territory: Home Improvement Scheme, Business Grants, Owners of residential and investment property grants.
  • South Australia: A state stimulus package was announced – waiting on details.

OTHER CONCESSIONS

  • Solvency safety net – Temporary 6 month increase to the threshold at which creditors can issue a statutory demand on a company from $2,000 to $20,000 and an increase in the time companies have to respond from 21 days to 6 months. Directors also are provided with temporary relief from personal liability for trading while insolvent for 6 months.
  • Access to working capital – Introduction of a Coronavirus SME guarantee scheme protecting financial institutions by guaranteeing 50% of new loans to SMEs – up to $250,000.
  • Sole traders and self-employed eligible for Jobseeker payment – The eligibility criteria to access income support relaxed for the self-employed and sole traders.
  • Temporary relief from some Corporations Act requirements.

INDIVIDUALS

  • Early release of superannuation up to $20,000 – conditions apply.
  • Temporary reduction in minimum superannuation drawdown rates.
  • Deeming rates reduced – lower rate: 0.25%, upper rate: 2.25%.
  • Supplements increased, access extended and eased.
  • Bankruptcy safety net.

BANKING AND LENDER INSTITUTIONS

Specific COVID-19 concessions have been announced by the following banks: CBA, Westpac, NAB, ANZ and Bendigo around loan repayments, hardship assistance, merchant fees and interest rates.

 

For more information about the stimulus package, read the following article – A small business guide to the economic stimulus package.

As new announcements are made by the Government and financial institutions, we will continue to keep you abreast of developments. If there is anything we can do to assist you in the meantime, please contact us through the form below or call us on 03 9079 0960.

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