Given the impact of Bushfire and COVID-19, Australia has entered into an economic recession first time in the last 30 years. Last a couple of weeks, we have witnessed the Federal Government announced that they have been working with States and Territories to offer a $25,000 HomeBuilder Grant between 4 June 2020 and 31 December 2020 for eligible owner occupiers and buyers including first home buyers.

Eligibility:

• Natural person (not a company and trust)
• Aged 18 years or older
• An Australian Citizen (does not mention PR or New Zealand Citizen)
• Income cap:
  • For Individuals, your earning should be $125,000 or less based on 2018-19 tax return or later
  • For couples, your combined earnings should be $200,000 or less based on 2018-19 tax return or later
• can be either:
  • A new home worth less than $750,000 or
  • An existing home valued up to $1.5m, and the renovation contract should be between $150,000 and $750,000
• The construction and renovation must be executed within three months of the contract date.

Dwelling types:

House, apartments, house and land package, off-the-plan, can be existing property renovation and new property. The scheme will not apply to owner builders or those who are planning to build a new home or renovate an existing home as an investment property.  

Eligibility for Renovation

Renovation fee is between $150,000 and $750,000. The existing property needs worth less than $1.5 million. The construction should be carried out by licensed contractors at arms-length price within three months after signing of the contract. The HomeBuilder Grants must be used for improving your accessibility, liveability, and safety, but not used for add-ons like tennis courts, swimming pool and detached sheds etc. Also, the terms of the contract should be reasonable and in line with the market requirements to prevent any fraud between builders and property owners from swindling grants.

Am I still eligible if I own a land?

• If you own land with an existing dwelling on it and plan to demolish and rebuild your dwelling, this will be considered as substantial renovation as long as the upgraded work’s value is between $150,000 and $750,000, and the value of your existing dwelling (including land value) before the demolish does not exceed $1.5 million.
• If you acquired a vacant land prior to 4 June 2020, you can build a new dwelling on it as long as the total cost of the dwelling plus the land value before construction is less than $750,000.

Can I apply now?

No. It can only apply after your State or Territory enters into a contact with Federal Government and open the channel for application. You will be notified by each State or Territory government in regard to the updates of application. 

Required documents:

Required documents may vary from different State or Territory for your application. However, at least the following documents are required:

• Proof of identification
• Contract with date and signature of you and your licensed builder
• Copy of your builder’s registration or license (depending on your State or Territory)
• Copy of your 2018-19 tax return to demonstrate your income meets income cap
• Other documents including council approvals, building contracts and evidence of land value etc

More detailed documents require further notification from States or Territory government

If I have received First Home Owner Grant, am I still eligible for this HomeBuilder Grant?

Yes, you are. The Homebuilder Grant does not conflict with the First Home Owner Grant, Stamp Duty Concessions as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

Do we have to pay tax on that?

No. This is a tax-free payment to you.

Need Help?

If you are unsure whether you qualify for the HomeBuilder grant, or whether your building or renovation contract meets the price and timing rules, Pitt Martin Group can help you review and document your eligibility, weigh up income caps, property values and contract terms, and prepare the paperwork your grant application will need.

As Sydney tax accountants, we assist homeowners with grant applications, income checks and practical property tax advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

The last few months have shown a constant display of obscure challenges related to maintaining business during the COVID-19 pandemic for business owners and leaders everywhere. The latest obscure challenge is possibly the trickiest yet: how to cautiously recommence businesses after the government announced the major easing of coronavirus restrictions.

Businesses will be faced with many logistical details including how to maintain social distance, limit crowd size, and ensure spaces are cleaned thoroughly and regularly. It will take some time to lift the level of confidence in people to start visiting shops, restaurants, and other public venues. In such an uncertain and diverging environment, how can small businesses move forward and back to “business as usual”? There are many opportunities for us as business owners and leaders to unify and build this together amid the uncertainty.

Patience

Patience is not the ability to wait, but the ability to keep a good attitude while waiting. In today’s world, where technology has created the expectation that everything should move more quickly, patience becomes one of the rarest virtues. No one has the patience to wait for anything anymore. However, we need to be careful to not rush everything. We should be careful not to move faster than governments allow.

We should be patient with a timeline that might be slower than we anticipated; patient with a reopening process that might be awkward; patient with the line-up that we have to face when entering the shops; patient with our leaders feeling the pressure of this difficult situation; patient with one another as we are getting used to with the new normal. As hard as it will be to practice patience, we must be determined as it is unquestionable the second wave of Covid-19 cases, or a local outbreak would detrimentally impact businesses.

Humility

Humility is to have a student mindset and always be willing to learn new things. With so many changes in the world amid the pandemic, we need to quick to hear, slow to speak, and slow to anger. When you listen, it may slow down the process of consideration and planning, but it is worth it. We need to be humble to learn to adapt and to accept that things might not be the same as they used to be.

We need humility in how we react to the plans by the government leaders, even if we do not agree with every aspect of it. There is no definitive answer on how to do this well and everyone is just trying to do the best they can to get through this crisis. If we are willing to learn and adapt with all humility, we will be able to survive.

Service

This pandemic is affecting us individually, societally, and organisationally. During this pandemic, we all need to step up and be a leader to do what we can for the greater good. If you are fortunate enough to have cash in your pockets, you can use it to support other businesses. We need to think of ways we can serve our friends, family, neighbours, and community as a whole. We need to encourage “we” before “me” and show gratitude and compassion for others.

If you can make your business about helping others during this crisis, you will always have plenty of work because no one has ever become poor by giving. There is no better time than now to put the needs of others ahead of our own. Remember, success has nothing to do with what you gain in life or accomplish for yourself; it is what you do for others.

There is no need to panic. Tough times never last but tough people do. If we can all continue to show up as servant leaders with patience and humility to serve others, we can get through this uncertainty and crisis stronger than ever.

Don’t let this uncertainty sink your business, reach out for help not because you are weak, but because you want to remain strong.

Need Help?

If you are unsure how to restart your business safely as restrictions ease, or whether your plans still match the pace of recovery, Pitt Martin Group can help you review and document your financial position, weigh up cash flow, staffing and reopening costs, and prepare a realistic plan to move forward with confidence.

As Sydney tax accountants, we assist businesses with reopening plans, cash flow forecasts and practical recovery advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

It has already been two months since the lockdown was in place. Earlier this month, Prime Minister Scott Morrison finally announced a “Three-Step” procedure to reopen Australia after the COVID-19, which is good news to all of us. Based on the data from Treasurer Josh Frydenberg, Australian has been losing more than $4 billion each week due to the lockdown, of which the largest portion has been attributed to the affected small and medium-sized business (SME). As the lockdown has been gradually lifted, how would SME self-adjust their business and catch up with the changing market in order to bring their business back to normal or even beyond?

1. Get government subsidies and grants

First of all, the biggest issue that SME is facing at the moment is cashflow caused by the declined revenue. As cashflow is considered as the lifeline for any business, the shortage of cashflow may directly lead the business to insolvency. For now, the fastest and most efficient way to deal with the cashflow shortage is to apply for and get the government subsidies and grants. We have mentioned those subsidies and grants in our previous articles The second and third Stimulus Plan – Which one suits you? and How small and medium business benefit from the Stimulus Package? , such as JobKeeper Payment, Cash Flow Boost to employers and Apprentices and Trainees Wage Subsidy etc. These are the most effective approaches you can take currently to maximise your cashflow. For more federal and state stimulus measures, please click on our Internal Manual (https://pittmartin.us7.list-manage.com/track/click?u=7ef7c505bc2b5ac5d9125b1f2&id=8a6e991bbb&e=199892a471)。

Also, the Government Guaranteed Unsecured Finance for up to $250k provided by the bank is another feasible way to supplement the SME’s mid or long term cashflow.

In addition, all the tax liabilities incurred after 12 March, such as income tax, GST, FBT etc, can be deferred to 14 September. Companies that make good use of this relief can help with cashflow shortfalls without violating regulation to delay their tax lodgement.

2. Prepare for return to workplace

If you have already applied for the JobKeeper Payment, you should not worry too much about finding new employees which is the government initiative. Employees can return to work at any time to resume as usual. If you lose your employee for any reason such as you are not eligible for JobKeeper Payment, it is the time for you to consider recruiting or getting in touch with right candidate for the recovery.

After returning to work, business should actively respond to the preventive anti-epidemic measures, such as making employee and customer safety manual or post, keeping 1.5 meters social distance, maintaining 4 square metres of space per person and preparing hand sanitiser etc.

If your business was temporarily closed and you have been working from home since the lockdown, it is the time for you to get in touch with your suppliers and building manager of your workplace to ensure the goods, utilities supplies and office are operating as normal.

3. Have an effective communication with other parties

As a result of market changes caused by the outbreak, the personnel and department in the organisation may also need to be changed. For example, some departments may need more people while others may have to cut. Managers have to have an effective communication with affected employees to make sure personnel change is undertaken in a considerate and proper way.

For most of SME, rent is one of the biggest expenditures in their daily business. The Federal government as well as State government have issued the relevant law and code to ensure landlords to share a portion of the business loss. Therefore, affected business should reach out to their landlord in order to get some rental relief if they have not yet. If you decide to update or enter into a new lease with the landlord, you should take an advantage of the current market to get a better price and terms.

Given everyone is suffering from cashflow shortfall at the moment or in the near future, business should accelerate any necessary debt collection procedures to avoid further capital loss because of the potential future bad debt.

Businesses also have to review the contract with existing suppliers and customers and actively communicate with them to ensure the terms in the contract are updated in a timely manner to reflect the changed market.

4. Change your business plan and look for new opportunities

The current business plan and financial budget may no longer be applicable to the SME. An adjustable and flexible business plan and financial budget are the only guarantee for future recovery and success. Similarly, business who can adjust themselves in the changing market may have more opportunities. For example, lockdown increases the online demand and delivery. In the meantime, online meeting is becoming more acceptable during this period. Therefore, in future, some retail and hospitality business may consider expanding their take-away and IT-related business might intend to engage in online App Development or Video calls.

There is no doubt that there will be a long-term impact brought by this coronavirus pandemic. Business should take their long-term strategies into consideration when they make new business plan to ensure the new plan is more suitable for the changing market and prepare for the worst on the other hand.

Need Help?

If you are unsure how to reopen your business after lockdown, or whether your budget and business plan still suit the changing market, Pitt Martin Group can help you review and document your cash flow, weigh up Government support, rent negotiations and debt collection, and prepare a practical recovery plan for the future.

As Sydney tax accountants, we assist businesses with recovery planning, financial budgets and practical cash flow advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

Tax time is fast approaching and for some of you this might be the last thing on your mind. There might be other things that are more important for you to get through this uncertainty. However, now is the best time to get your tax affair in order and avoid last minute planning that can cost you.

As you have spent more time working from home during the lockdown period, it might be a good idea to put together all the information you need to prepare your returns as it will take some time especially if you have not organised them as you go. You can collect all your receipts or invoices for work related expenses and any credit card statements for invoices that you no longer had and discuss with your tax agent to ensure you are maximising your claims.

If you have been working from home as a result of COVID-19, the Australian Taxation Office has introduced special arrangements which will allow people to claim 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses. You will need to keep a record of the number of hours you have worked from home. This will apply from March 1 to June 30, after which the ATO will review the arrangement for the next financial year.

If you choose to use the 80 cents per hour for all your running expenses, you can’t make other claims in relation to working from home because items such as mobile phone and internet are included in the 80 cent rate.

You still had the option to use the old claiming method which is known as the 52 cents per work hour method for claiming items such as heating, cooling, lighting, cleaning and the decline in value of office furniture. You need to keep a diary of when your start and finish work each day. This old method also allowed you to calculate the work-related portion of phone and internet expenses, computer consumables, stationery and the decline in value of a computer, laptop or similar device. Nevertheless, you would still require to work out what private use and work use is on ‘a reasonable basis”

You can claim tools or equipment as a deduction in your tax return if you have to use them as part of your job and your employer didn’t reimburse you. You can claim a deduction straight away if the tools or equipment are $300 or less otherwise you will need to depreciate over the life of the item. On the other hand, if you run your own business and acquired all your capital items from 12 March 2020 and the cost of all of them less than $150,000, you can claim a deduction straight away. The capital items included work related IT equipment, cars and tools. Please note that you will still require to apportion the cost if you use them for private use.

As we are approaching the end of financial year, we still have plenty of time to generate some extra common tax deductions if you made the payment by 30 June:

• Donation to a charity registered as a deductible gift recipient over $2 with a receipt are tax deductible
• A personal contribution into your super fund including the contribution made on your behalf by your employer which are less than $25,000 can be claim as a tax deduction providing the payment made by 30 June. You need to advise your super fund by completing the relevant form or speak to your accountant for guidance.
• You need to pay by 30 June your professional membership or subscriptions and union fees to claim the deduction this year

Remember that good record keeping including invoices and receipts will ensure the finalisation of your tax return easier and you can claim for everything you’re eligible to.

If you know anyone in your circle who need any assistance during tax time, please reach out to them because “We can’t help everyone, but everyone can help someone” and “Together We Can Make A Difference”

Need Help?

If you are unsure which work-related expenses you can claim this year, or what you should pay before 30 June to maximise your deductions, Pitt Martin Group can help you review and document your records, weigh up home office, equipment and super contributions, and prepare an accurate return you can lodge with confidence.

As Sydney tax accountants, we assist individuals with tax returns, deduction reviews and practical year-end planning advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

Followed by the first Stimulus Package plan announced on 12^th March 2020, the federal government has rolled out the second and third Stimulus Package plan with a total amount of up to 200 billion dollars in last two weeks aiming at helping small and medium business and keeping Australians in jobs. Let’s take a look at what are they for both business and individual and navigate one suits you.

For business

JobKeeper payment

The JobKeeper payment will assist employer to retain their employee and quickly re-start when the crisis is over. Affected employer will be able to claim the fortnightly payment of $1,500 per eligible employee from 30^th March 2020. The first payment will be received on the first week of May, lasting for maximum of six months.

Eligibility for employer (including Not-For Profit):

• Business turnover less than $1 billion PLUS turnover has been reduced by more than 30% (of at least one month compared to the same period of last year)
• Business turnover more than $1 billion PLUS turnover has been reduced by more than 50% (of at least one month compared to the same period of last year)
• The business is not subject to the Major Bank Levy

Eligible employee can be full-time, part-time and casuals (a casual employed on a regular basis for more than 12 months as at 1^st March 2020). They must be an Australian citizen, Permanent Visa Holder, or a Special Category (Subclass 444) Visa Holder who is a Australian tax resident on 1 March 2020.

Self-employed individuals (Sole Trader) who meet the above turnover test are also eligible for JobKeeper Payments.

Register you interest and keep update with ATO.

Cash flow paid to eligible employers

As we mentioned in our previous article “How small and medium business benefit from the Stimulus Package”, eligible employers have the entitlement to claim equal to 50% of the PAYG Withholding amount with a minimum of $2000 and maximum of $25,000 even the withholding amount is nil. At this second package plan, the figures are lifted up to 100% cashback on PAYG Withholding, with an increased minimum payment of $20,000 and maximum payment of $100,000.

The cash payment will be provided in two phases. The ATO will automatically credit the first phase amount (from $10,000 to $50,000) to the tax payer’s ATO account after the BAS or IAS lodgement from 28^th April 2020. Different cycle tax payer will be paid upon the lodgement as below:

• Quarterly lodgers – March 2020 quarter (due on 28^th April 2020), and June 2020 quarter (due on 28^th July 2020)
• Monthly lodgers – March 2020 (due on 21^st April 2020), April 2020 (due on 21^st May 2020), May 2020 (due on 21^st June 2020) and June 2020 (due on 21^st July 2020)

The second phase amount will be equal to the first phase amount. Different cycle tax payer will be paid upon the lodgement as below:

• Quarterly lodgers (each credit will be equal to 50% of the phase one payment), one after each BAS or IAS lodgement for June 2020 quarter and September 2020 quarter
• Monthly lodgers (each credit equal to quarter of the phase one credit) one after each BAS or IAS lodgement for June, July, August and September 2020

Government Guaranteed Unsecured Loan

The $40 billion guarantee for small business loan under the Coronavirus SME Guarantee Scheme is in place to support small and medium business in obtaining the additional working capital. The government will grant a guarantee of 50% to eligible small and medium business lenders which will reinforce lenders’ willingness and ability to provide credit.

Meanwhile, a deferred repayment of up to 6 months has been announced by the Australian Banks aiming at supporting small and medium business who has existing loans. Reserve Bank of Australia (RBA) has also announced a $90 billion Term Funding Facility for the banking system to lower the funding costs for banks and subsequently to encourage lending to businesses.

Temporary relief for financially distressed businesses:

• The threshold at which creditors can issue a statutory demand on a company has been increased from $2,000 to $20,000
• The threshold at which creditors can initiate bankruptcy notice has been increased from $5,000 to $20,000
• The time companies have to respond to a statutory demand and bankruptcy notice they receive will be extended from 21 days to up to 6 months

Directors will also be temporarily exempted from any personal liability arising from the trading during insolvency. The Corporate Act 2001 will also be amended to provide companies with temporary and targeted relief against unforeseen events caused by COVID-19.

For individual

JobSeeker Payment

The government introduced a temporary income support payment for the next six months, offering a fortnightly payment of $550, which is the double of the current allowance, to eligible job seekers who lost their jobs during the pandemic. This supplement will be an additional payment paid on top of their existing allowance to both existing and new eligible recipients (including those currently receiving JobSeeker Payment, Youth Allowance, Parenting Payment, Farm Household Allowance and Special Benefit)

One-Off $750 Economic Support Payment

On top of the one-off $750 economic payment released by the government on 12^th March 2020, the government will be providing second $750 income support payment to social security, veteran and other income support recipients and eligible concession card holders (except for those receiving the Coronavirus supplement).

The first $750 payment will be available from 31^st March 2020 to individual who becomes eligible from 12 March 2020 to 13 April 2020.

The second $750 payment will be made automatically to eligible payment recipient and concession card holders from 13 July 2020

Early Access to Superannuation

Eligible individual affected by the COVID-19 have earlier access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21 to help them relieve the financial hardship. The first period for them to access their superannuation is between 20 April 2020 and 1 July 2020. The second period is between 1 July 2020 and 24 September 2020.

To apply for early released superannuation, you must satisfy any one or more of the following requirements:

• You are unemployed
• You have the entitlement to receive a JobSeeker payment, Youth Allowance for jobseekers, Parenting Payment, Farm Household Allowance and Special Benefit
• On or after 1 January 2020,
  • You were made redundant
  • Your working hours were reduced by 20% or more
  • If you are a self-employed individual (Sole Trader), your business is forced to suspend or your turnover has fallen by 20% or more

Early released superannuation is not subject to income tax, and the money you are claiming will not affect Centrelink or Veteran’s Affairs payments.

Reduce the minimum superannuation pension drawdown rates

The minimum superannuation drawdown rates for account-based pension and similar products will be reduced by 50% for 2019/20 and 2020/21. The pensioners who hold these products will be benefit from this measure because they do not have to sell their products to meet the minimum withdrawal requirement under the current financial market downturn.

Minimum pension drawdown rates halved for 2019/20 and 2020/21：

Need Help?

If you are unsure whether your business qualifies for JobKeeper or the cash flow boost, or whether you can access your super early, Pitt Martin Group can help you review and document your turnover decline, weigh up wage subsidies, loans and personal support, and prepare your applications before the temporary Government measures close.

As Sydney tax accountants, we assist businesses and individuals with stimulus applications, eligibility reviews and practical advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

As the coronavirus outbreak grows, more people are forced to work from home. While working from home can come with its benefits like getting to sleep in longer, avoid the daily commute and work from bed in your pyjamas, it can also hurt your hip pocket if you’re having to fork out for expenses your employer would normally cover, like increase utility bills, phone and home internet bills.

The good news is that most of these expenses can be claimed back at tax time. In order to make it easier for people to claim deductions for working from home, the Australian Taxation Office is introducing special arrangements which will allow people to claim 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses.

Assistant Commissioner Karen Foat said that if you choose to use this shortcut method, all you need to do is keep a record of the hours you worked from home as evidence of your claim. “We needed something to help people through this time to make it easier to work out how much they can claim”, Ms Foat said.

The change will apply from March 1 to June 30, after which the ATO will review the arrangement for the next financial year. If the Federal Government announces a prolonged lockdown extending into the next financial year the ATO is likely to extend the new claiming method.

The new arrangement does not forbid people from making a working-from-home claim under existing arrangements, where you calculate all or part of your running expenses. Neither does it prohibit multiple people living in the same house to claim this new rate. Furthermore, the requirement to have a dedicated work from home area has also been removed. However, the claims for working-from-home expenses prior to March 1, 2020 cannot be calculated using the shortcut method and must use the pre-existing working from home approach and requirements,” Ms Foat added.

People still had the option to use the old claiming method which is known as the 52 cents per work hour method for claiming items such as heating, cooling, lighting, cleaning and the decline in value of office furniture. This old method also allowed taxpayers to calculate the work-related portion of phone and internet expenses, computer consumables, stationery and the decline in value of a computer, laptop or similar device. Nevertheless, taxpayers would still need to work out what private use and work use is on ‘a reasonable basis”

ATO are expecting a lot of people to be working from home as the outbreak continues to grow; therefore believed that the new method would cut down on the need for reviews and audits, because it was simpler and reduce the chances of people making mistakes while claiming the deductions this year.

The ATO is also reminding people that the three golden rules for deductions still apply,

1. The taxpayers must have spent the money themselves and not have been reimbursed by the employers
2. The claim must be directly related to earning income, and
3. The record must be kept to substantiate the claim

Please note that children’s education expenses, as well as tea, coffee and toilet paper which used to be supplied by employers in the office could not be claimed and neither do rent and mortgage (unless it is an investment property)

The ATO gives this example of how the arrangement might work:

Sophie is an employee who works as a copywriter and an editor. Sophie starts working from home on 10 March as a result of COVID-19 and had since using a lot of online video conferencing for her meeting.

Sophie has just bought a new computer, monitor, desk, chair and stationery. She also wants to claim some additional gas, electricity, phone and internet costs due to working from home.

Under the shortcut method, Sophie can now claim all her expenses under a rate of 80 cents per hour. All she needs is her timesheets to show a record of the number of hours worked from home.

Sophie can also decide to claim using existing working from home calculations which is known as the 52 cents per work hour method. Under that method, Sophie can claim the desk, chair, gas and electricity under the 52 cents per hour, but would need to work out the decline in value of the computer, monitor, and calculate the work-related portion of the computer, monitor, stationery, phone and internet.

Need Help?

If you are unsure whether the 80 cents per hour shortcut or the 52 cents method will give you a better deduction, or what records you need to keep, Pitt Martin Group can help you review and document your working hours, weigh up running costs, devices and depreciation, and prepare an accurate claim.

As Sydney tax accountants, we assist employees with home office claims, tax returns and practical record-keeping advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

With the announcement from Federal Governments Economic Response to the COVIC-19 Coronavirus, the cash flow grant for employers measure is designed to support employing small and medium sized businesses and to improve business confidence. The measures also supports the activities of not-for-profits (including charities) at a time where they are facing increased demand for services.

On 12 March 2020, the Government announced the cash flow grant for employers measure and initially provided up to $25,000 with a minimum payment of $2,000 for eligible businesses. Small and medium sized business entities that employ workers with aggregated annual turnover less than $50 million are eligible.

The Government has then improved this measure as part of the second economic stimulus package. Not-for-profit entities (NFPs), including charities that employ workers, with aggregated annual turnover less than $50 million will now also be eligible. This will support employment activities at a time where NFPs are facing increasing demand for services.

Under the improved scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld (increase from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. Furthermore, the minimum payment is being increased from $2,000 to $10,000.

An additional payment is also being introduced in the July to October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the cash flow grant for employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments. The cash flow grant for employers is tax-free payment with no new forms required and automatically calculated by the ATO

This additional payment continues to support businesses over a longer period to help them maintain staff, improve confidence, continue operating and at the same time stimulating the economy. It’s crucial for the government to help small businesses because they are the backbone of the economy.

Who is eligible and what is the timing?

SME business entities and NFPs that employ workers, with aggregated annual turnover less than $50 million will be eligible with the eligibility generally be based on prior year turnover.

• The payment will be an automatic credit in the activity statement system from 28 April 2020 upon employers lodging eligible upcoming activity statements.
• Eligible employers that withhold tax on their employees’ salary and wages will receive a payment equal to 100 per cent of the amount withheld, up to a maximum payment of $50,000.
• Eligible employers that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax.
• The payments will only be available to active eligible employers established prior to 12 March 2020 except charities which are registered with the Australian Charities and Not-for-profits Commission will be eligible regardless of when they were registered, subject to meeting other eligibility requirements.

The cash flow grant for employers payment will be applied to a limited number of activity statement lodgements. The ATO will send the payment as a credit to the entity upon lodgement of their activity statements. The ATO will send the refund within 14 days if the entity is entitled to a refund.

Type of lodger	Eligible period	Lodgement due date
Quarterly	Quarter 3 (January, February and March 2020) Quarter 4 (April, May and June 2020)	28 April 2020 28 July 2020
Monthly	March 2020 April 2020 May 2020 June 2020	21 April 2020 21 May 2020 22 June 2020 21 July 2020

If you lodged quarterly, you will be eligible to receive the payment for the quarters ending March and June 2020.

If you lodged monthly, you will be eligible to receive the payment for the March, April, May and June 2020 lodgements. To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (which is 300 per cent) in the March 2020 activity statement with the minimum payment will be applied to the entities’ first lodgement.

Additional payment eligibility and timing

Your entity must remain active in order to qualify for the additional payment from the Government.

If you lodged activity statements monthly, the additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to a quarter of their total initial cash flow grant for employers payment following the lodgement of their June, July, August and September 2020 activity statements up to a total of $50,000.

If you lodged activity statements quarterly, the additional payments will be sent as an automatic credit in the activity statement system. This will be equal to half of their total initial cash flow grant for employers payment following the lodgement of their June and September 2020 activity statements up to a total of $50,000.

The additional payment will be applied to a limited number of activity statement lodgements. The ATO will send the payment as a credit to the entity upon lodgement of their activity statements. The ATO will send the refund within 14 days if the entity is entitled to a refund.

Type of lodger	Eligible period	Lodgement due date
Quarterly	Quarter 4 (April, May and June 2020) Quarter 1 (July, August and September 2020)	28 July 2020 28 October 2020
Monthly	June 2020 July 2020 August 2020 September 2020	21 July 2020 21 August 2020 22 September 2020 21 October 2020

If you lodged quarterly, you will be eligible to receive the additional payment for the quarters ending June 2020 and September 2020. Each additional payment will be equal to half of their total initial cash flow grant for employers payment with up to a total of $50,000.

If you lodged monthly, you will be eligible to receive the additional payment for the June, July, August and September 2020 lodgements. Each additional payment will be equal to a quarter of their total initial cash flow grant for Employers payment with up to a total of $50,000.

Examples of Tax-Free Payment to Employers

Example 1 – John’s Removalist Business

John owns and runs a removalist business in Western Australia and employs 10 workers on average full-time weekly earnings, who each earn $90,750 per year. John reports withholding of $15,600 for his employees on each of his monthly Business Activity Statements (BAS).

Under the Government’s measure, John will be eligible to obtain the payment on lodgement of his BAS. John’s business receives:

• A credit of $46,800 for the March period
• A credit of $3,200 for the April period, before he reaches the $50,000 cap.
• No payment for the May period, as he has now reached the $50,000 cap.
• An additional payment of $12,500 for the June, July, August and September period, respectively

Under the Government’s enhanced cash flow grant for employers measure, John’s business will receive $100,000.

Example 2 – Tony’s Barber Shop

Tony owns a barber shop on the Surfers Paradise. He employs 10 employees, with average salary of $45,000 per year. Tony reports withholding of $8,601 for his employees in each of his monthly BAS. Under the measure, Tony will be eligible to receive the payments on lodgement of his relevant BAS.

Tony’s business will receive:

• A credit of $25,803 for the March period
• A credit of $8,601 for the April and May period, respectively
• A credit of $6,995 for the June period, before he reaches the $50,000 cap. Tony will also receive an additional payment of $12,500 for the June, July, August and September period, respectively

Under the Government’s enhanced cash flow grant for employers measure, Tony’s business will receive $100,000.

Example 3 – Todd’s Courier Run

Todd owns and runs a small paper delivery business in South Australia and employs two casual employees who each earn $10,000 per year. In his quarterly BAS, Todd reports $0 withholding tax for his employees as they are under the tax-free threshold.

Under the Government’s measure, Todd will be eligible to receive the payment on lodgement of his BAS.

Todd’s business will receive:

• A credit of $10,000 for the March quarter, as he pays salary and wages but is not required to withhold tax.
• An additional payment of $5,000 for the June and September quarter, respectively

If Todd begins withholding tax for the June quarter, he would need to withhold more than $10,000 before he receives any additional payment.

Under the Government’s enhanced cash flow grant for employers measure, Todd’s business will receive $20,000.

If you know anyone in your circle who need any assistance during these times, please reach out to them because “We can’t help everyone, but everyone can help someone”and “Together We Can Make A Difference”

Need Help?

If you are unsure whether your business or charity qualifies for the cash flow grant for employers, or how much you will receive from each lodgement, Pitt Martin Group can help you review and document your withholding, weigh up eligibility, reporting periods and additional payments, and prepare accurate statements that maximise your entitlement.

As Sydney tax accountants, we assist employers with BAS lodgement, cash flow grants and practical compliance advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

The COVID-19 situation is bigger than any of us have ever faced. Our clients, professionals, mum’s and dad’s don’t understand how badly they need accountants and advisors’ help.  They are scared and don’t know what to do, and most probably haven’t really thought through what the consequences will be for them.

As a business owner, there’s one key thing you need to focus on now which is keeping your business alive during these tough times. Downturn can be scary usually because there is no plan in place for your business and the world around you appear to be panicking. There is no reason to be panicking. In times of difficulty lies an opportunity. If your cash flow is under control then so is your business.

You need to take actionable appropriate steps to create a Continuity Plan, then in reality a downturn is just a stop gap to the next upturn, where your business will be cash flow fit and ready to take full advantage.

To maintain your cash, you may need to consider options that you haven’t consider before. You need to work with your accountant to identify which key parts your business is eligible for Australian Government stimulus package and get the process started to obtain these cash flow bonuses. When you meet with your accountant, it’s important to update your business cash flow plan over the coming months.

As an employer, you need to openly discuss reduced working hours with your employees to save cash (if this does save cash) and working from home arrangements. Employees will be scared. They will need to be assured, so they need to be given an understanding of the plan to keep the business alive.

Constant communication and a payment plan with the ATO could be an option especially if you need to delay making payments of GST and PAYG Withholding Tax. However it’s vital that you keep lodging you Business Activity Statements (BAS) and Instalment Activity Statements (IAS) by their due dates. The Australian Taxation Office (ATO) is implementing a series of relief options to assist those impacted by the coronavirus. The relief will not be automatically applied. You can contact your accountant to contact the ATO to make any requests for assistance.

In addition, you can contact your Bank Manager as soon as possible and arrange for additional bank funding or lines of credit that can be approved now for use in an emergency. Making these arrangements early before things have gone bad is the key. Bank approvals may take up to one month or longer. Consider also using alternative funders to set up a short term line of credit now to pay for inventory and operating costs. You should consider doing this as a backup now to any other bank lending arrangements you may have.

If you have to self-quarantine or if you incapacitated in any way, you need to have an Enduring Power of Attorney (EPOA) in place so your business can continue to operate. Ensure your EPOA and Will are up to date now and ensure your family and your Accountant know where the original signed documents are.

Now is the time to contact your insurance agent to review your policy to understand precisely what you are and are not covered for in the event of an extended incident. Review your general insurance policies for any Business Interruption Insurance inclusions.

We need to stay calm and rely on reliable sources of information from State and Australian Government. In the meantime, below is the link directly to the Government Media release of the second Economic Stimulus Plan, https://www.pm.gov.au/media/supporting-australian-workers-and-business

Need Help?

If you are unsure how to keep your business running through COVID-19, or which parts of the stimulus package you can access, Pitt Martin Group can help you review and document your cash flow, weigh up stimulus support, ATO payment plans and funding options, and prepare a continuity plan for the months ahead.

As Sydney tax accountants, we assist businesses with continuity planning, ATO relief and practical cash flow advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

Hit by the bushfire, Coronavirus (COVID-19) and global economy downturn, the Federal Government has announced a $17.6 billion Stimulus Package on 12 March 2020 to maintain Australians in jobs, keep businesses in business and support the severely-affected industries. The stimulus is temporary, targeted and extensible. So what benefit does small and medium business can receive from this Stimulus Package?  It falls into the four main parts:

• Pay up to $25,000 to employers to help cash flow.
• Deliver 50% of the wage assistance to small business for each apprentice and trainee they employ.
• Increase instant assets write-off threshold to $150,000 (from $30,000 previously).
• Accelerate investment depreciation of 50%.

Cash payment to employer

Eligible employers who paid PAYG Withholding tax to ATO are entitled to an assistance of 50% of the withhold amount with a maximum of $25,000. Businesses that pay salary and wages but are not required to withhold tax will also receive the minimum payment of $2,000. This will be a TAX-FREE payment.

WHO are eligible

Business with a turnover of less than $50 million that employ staff between 1 January 2020 to 30 June 2020.

WHEN can they receive

Business will automatically receive the payment of 50% through their Business Activity Statement (BAS) or Instalment Activity Statement (IAS) from 28 April with refund to then be paid within 14 days.

Apprentices and trainees wage subsidy

Eligible employers can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wage for up to 9 months starting from 1 January 2020 to 30 September 2020. Business is entitled to up to $21000 wage subsidy for each eligible apprentice or trainee they employ.

WHO are eligible

Small business with less than 20 full-time employees who employ an apprentice or trainee.

WHEN can they receive

Eligible business can start registering for the subsidy from April 2020. Get in touch with Australian Apprenticeship Support Network (AASN) for further information including registration and eligibility. Please be aware the application must be submitted before 31 December 2020.

Increase instant asset write-off threshold

Instant asset write-off threshold has been increased from $30,000 to $150,000 which will become effective from 12 March 2020 to 30 June 2020. It applies to the newly acquired assets and second-hand assets including equipment, tools and motor vehicles etc.

WHO are eligible

Business with aggregated annual turnover of less than $500 million (from $50 million previously).

WHEN can they receive

You will get the instant asset write- off when you lodge your tax return. The proposal applied from 12 March 2020 to 30 June 2020 only for the assets mentioned above.

Accelerating Depreciation Deductions

From 12 March 2020 to 30 June 2021, businesses are able to deduct an additional 50% of the cost of an eligible asset in the year of purchase. It aims to support business investment and economic growth over the short term. No limit on the value of the asset.

WHO are eligible

It applies to the new assets under DIV 40 of the ITA Act 1997 acquired by the business whose aggregated annual turnover of less than $500 million.

Please be aware that the second – hand assets and assets under DIV 43 of the ITA Act 1997 are not included.

WHEN can they receive

The deduction becomes available when you lodge your tax return. Only assets acquired and installed from 12 March 2020 to 30 June 2021 are entitled to the support.

Other assistance

Besides, stimulus payments to households and targeted affected industries:

• $4.8 billion to provide a one-off $750 tax free stimulus payment to pensioners, veteran, other income support recipients and eligible concession card holders.

• $1 Billion is used to offer support to those sectors, regions and communities that have been heavily affected by the Coronavirus, including tourism, agriculture and education industry.  This will include the waiver of fees and charges for those who operates business in Commonwealth National Park. It will also include to assist business with identifying alternative export markets or supply chains.

• Additional money will be put in place to promote domestic tourism development.

ATO relief

On 12 March 2020, ATO also announced a series of administrative relief to further assist business affected by the COVID-19 outbreak. This includes:

• Defer the payment for debt via tax lodgement such as income tax, activity statement (BAS), instalments activity statement (IAS), FBT and exercise payments by up to four months.

• Business on a quarterly reporting cycle are able to change their GST cycle to monthly cycle in order to get quicker access to GST refund if they are entitled to.

• Affected business can adjust their PAYG instalment to ZERO for the April 2020 quarter. They are also entitled to claim a refund for any instalment made for the September 2019 and December 2019 quarters.

• Where business is affected by COVID-19, ATO will consider remitting interest and penalties applied to tax liabilities incurred on or after 23 January 2020.

• Affected business are allowed to enter into a low interest payment plan if they have existing and ongoing tax liabilities with ATO.

Need Help?

If you are unsure whether your business qualifies for the cash flow boost or apprentice wage subsidy, or how to apply for ATO relief, Pitt Martin Group can help you review and document your financial position, weigh up cash payments, instant write-offs and accelerated depreciation, and prepare the applications needed for business continuity.

As Sydney tax accountants, we assist businesses with stimulus applications, ATO relief and practical tax planning advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.

With the development of COVID-19 from epidemic to pandemic status, businesses across Australia are facing the possibility of harmful effect. We are all aware of the impact and potential expansion of Coronavirus on the world, but what are the potential impacts on the Australian economy over 2020 and how the impact can be managed and mitigated.

It is unknown if Covid-19 will be long forgotten in 12 months or something that we all have to accept as part of our lives. The truth is Australian businesses are likely to face many challenges including cash flow issues, loss of trades, supply shortages and changes to working arrangement for staffs which resulting in operational disruption.

As the situation develops there is more uncertainty than assurance that the issue will be resolves at this time. It is important to keep yourself constantly updated with Government advice releases.

What to do?

There is no need to be panic. Remember that tough times don’t last, tough people do. Businesses should consider taking an immediate action to develop strategic plan to mitigate the disruption and financial loss for immediate and future threats. It is vital for businesses to identify all significant risks and potential opportunities it may be exposed to during this time and develop an action plan to ensure business continuity throughout.

Businesses can assess and evaluate their trading performance, financial position and current cash flow position via review of the relevant aspects. This process will enable assessment of the business financially, the business challenges in the short to medium term and thoroughly test financial forecast assumptions.

Constant communication with clients, suppliers, employees, financiers and all other key stakeholders regarding the development of this situation is important.

Government

The Australian Government is acting decisively in the national interest to address the potentially significant economic consequences of the virus, without a permanent or structural impact on the budget balance.

The government has now announced an economic response totalling $17.6 billion across the forward estimates, representing 0.9 percent of annual GDP to strengthen the economy during this tough period.

The package is intended to support confidence, employment and business continuity. It is designed to support business investment, help small businesses manage short-term cash flow challenges, provide targeted support to individuals and assistance to the most severely affected communities and regions. It includes cash grant of up to $25,000 for small businesses, $750 one-off payments for potential consumers, and a significant temporary extension to the instant asset write-off scheme (from $30,000 to $150,000)

The Australian Taxation Office (ATO) is also providing administrative relief for some tax obligations for people affected by the Coronavirus outbreak, on a case-by-case basis including potential deferrals of lodgements.

For more details on the stimulus package, please visit the link below
https://www.pm.gov.au/media/economic-stimulus-package

Need Help?

If you are unsure how COVID-19 will affect your cash flow, or whether your business qualifies for the Government’s stimulus measures, Pitt Martin Group can help you review and document your financial position, weigh up grants, write-offs and ATO relief, and prepare a practical action plan that supports your business continuity and recovery.

As Sydney tax accountants, we assist businesses with cash flow forecasts, stimulus measures and practical continuity advice.

Pitt Martin Group is a firm of Chartered Accountants, providing services including taxation, accounting, business consulting, self-managed superannuation funds, auditing and mortgage & finance. We spend hundreds of hours each year on training and researching new tax laws to ensure our clients can maximize legitimate tax benefit. Our contact information are phone +61292213345 or email info@pittmartingroup.com.au. Pitt Martin Group, Sydney tax accountants, is located in the convenient transportation hub of Sydney’s central business district. Our honours include the 2018 CPA NSW President’s Award for Excellence, the 2020 Australian Small Business Champion Award Finalist, the 2021 Australia’s well-known media ‘Accountants Daily’ the Accounting Firm of the Year Award Finalist and the 2022 Start-up Firm of the Year Award Finalist, and the 2023 Hong Kong-Australia Business Association Business Award Finalist.

Pitt Martin Group qualifications include over fifteen years of professional experience in accounting industry, Registered Australia Tax Agents, membership certification of the Chartered Accountants Australia and New Zealand (CA ANZ), certified External Examiner of the Law Societies of New South Wales, Victoria, and Western Australia Law Trust Accounts, membership certification of the Finance Brokers Association of Australia Limited (FBAA), Registered Agents of the Australian Securities and Investments Commission (ASIC), certified Advisor of accounting software such as XERO, QUICKBOOKS, MYOB, etc.

This content is for reference only and does not constitute advice on any individual or group’s specific situation. Any individual or group should take action only after consulting with professionals. Due to the timeliness of tax laws, we have endeavoured to provide timely and accurate information at the time of publication, but cannot guarantee that the content stated will remain applicable in the future. Please indicate the source when forwarding this content.