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New Government Stimulus – Action Plan

Posted by Northadvisory on April 8, 2020

Parliament House in Canberra AustraliaOn 30th March 2020, the Government announced another stimulus package for the Australian economy worth $130 billion.

It is the third and largest package announced to help keep the economy afloat and it is the most relevant to our clients.

There is a lot of noise in the media so we have prepared the information below to outline what is relevant to our clients and how we are going to work with you to achieve the desired outcome. A pdf version is available upon request.

We have structured the advice to break down each incentive by relevance to your circumstances.

  • For each available incentive we have included:
  • A short summary of the incentive
  • What steps you need to take to enable eligibility for the incentive
  • What North Advisory will do to ensure you receive it

After the Government incentives we have also included summaries of some other key relief measures you might be able to access.

Select your economic circumstance below and see what sections are relevant to you

I am a business and employer that is still operating and still employing all my staff without a significant drop in revenue

  • Boosting Cash Flow For Employers – PAYG Withholding Credits

I am a business and employer that lost more than 30% revenue and still employ all my staff

  • Boosting Cash Flow For Employers – PAYG Withholding Credits
  • JobKeeper Payment – $1,500 per employee per fortnight

I am a business and employer that lost more than 30% revenue and had to reduce my staffMen working together

  • Boosting Cash Flow For Employers – PAYG Withholding Credits
  • JobKeeper Payment – $1,500 per employee per fortnight

I am a business and employer that is forced to close and reduced my staff

  • Boosting Cash Flow For Employers – PAYG Withholding Credits
  • JobKeeper Payment – $1,500 per employee per fortnight

I am self-employed or a sole trader/partnership and lost more than 30% revenue

  • JobKeeper Payment – $1,500 per employee per fortnight

I am an employee and lost my job or was stood down because of government shutdowns

  • JobKeeper Payment – $1,500 per employee per fortnight
  • JobSeeker Allowance – up to $1,340.10 per fortnight

I am an employer of apprentices

  • Boosting Cash Flow For Employers – PAYG Withholding Credits
  • JobKeeper Payment – $1,500 per employee per fortnight
  • Supporting Apprentices & Trainees – 50% wage subsidy

Boosting Cash Flow For Employers

– PAYG Withholding Credits

Computing Cash flow for employers Incentive Summary

  • A credit for PAYG Tax Withheld form employees’ salaries from $20,000 (minimum) – to $100,000 (maximum) over six months.

Steps you need to take to enable the incentive

  • Make sure Xero file is reconciled and up to date as on 31 March 2020.
  • Make sure payroll is posted up to the last pay run.

What North Advisory will do to ensure you receive it

  • We will ensure you are registered for single touch payroll.
  • Ensure you meet the eligibility criteria and notify you of what to do if you don’t.
  • We will prepare the BAS as soon as we can after 1 April 2020.
  • We will send you a calculation sheet showing the incentive on the March BAS and an estimate of the future periods credit.

JobKeeper Payment

– $1,500 per employee per fortnight

Incentive Summary

  • A $1,500 per employee per fortnight payment for businesses that had a 30% drop in turnover but keeps their staff employed.

Steps you need to take to enable the incentive

  • Make sure Xero file is reconciled and up to date as on 31 March 2020.Man paying his employee
  • Keep current employees employed and on your payroll.
  • Re-employ previously made redundant employees if they wish to be re-employed.
  • Register for the payment with the ATO.

What North Advisory will do to ensure you receive it

  • We will ensure you are registered for single touch payroll.
  • Assess your reduction in turnover via a Xero file calculation (if March does not drop 30% you will still be entitled if April drops
  • significantly). We will keep assessing your income for fluctuations.
  • Provide you with the supporting documentation the ATO requests.
  • Prepare the new payroll with the additional payments.

JobSeeker Allowance

– up to $1,340.10 per fortnight

Incentive SummaryWoman looking for a new employer

  • A $1,116 per fortnight (minimum) payment for individuals who lost their jobs and pass the income means test.

Steps you need to take to enable the incentive

  • Liaise with your previous employer regarding reinstatement and possible access to the JobKeeper incentive.
    If still unemployed register for the JobSeeker Allowance with Centrelink.

What North Advisory will do to ensure you receive it

  • Provide you with any supporting documentation Centrelink request from you.

Supporting Apprentices & Trainees

– 50% wage subsidy for apprentices

Employer teaching his trainee fix the carIncentive Summary

  • Government will subsidise 50% of apprentice wages for up to nine months.

Steps you need to take to enable the incentive

  • Keep your apprentices employed.
  • Undertake an eligibility assessment by Australian Apprenticeship Support Network (AASN).

What North Advisory will do to ensure you receive it

  • Provide any supporting documentation requested by AASN.

Signing Lease agreement formOther relief measures

Rent relief – To be negotiated with your landlord

  • One of the first relief measures you should seek out in this troublesome time is rent relief. Rent relief is still a measure you have to negotiate with your landlord, but the government has indicated a moratorium on eviction for at least six months.

Business loan relief – To be negotiated with your financier

  • If you have business finance contact them regarding a repayment freeze of your business loan for six months. Keep in mind that interest will still accrue for the six months and a reassessment of finance eligibility will be done after the period.

Mortgage relief – To be negotiated with your bank

  • If you can prove hardship or your tenants cannot pay rent the banks indicated they can put a six months freeze on mortgage repayments.

ATO Relief – Extensions on current outstanding ATO debt if hardship can be identifiedAustralian Annual Corporate Tax return

  • The ATO has indicated an extension on outstanding tax and BAS debt for the foreseeable future. North Advisory will assess your outstanding ATO debt and include it in any calculation of other incentives available to you. Keep in mind that this is not a debt forgiveness but only an extension of the payment terms.

Access to Superannuation – an absolute last resort

  • Under the changes announced in the second package, the Government will allow individuals ‘in financial stress’ as a result of the coronavirus downturn, to have limited access to their superannuation savings. The amount they can access will be capped at up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.

We are here to help

North Advisory is here to help you navigate this uncertain time. We are working from home but we remain focused on business as usual.

The easiest way to get hold of us is via email. If you have any questions regarding any of these incentives please contact our team today.