The Government has announced a second round of stimulus that is significantly larger than what was proposed two weeks ago, to assist businesses through the economic shocks of COVID-19.
The measures currently in place are as follows:
Boosting Cash Flow for Employers
This stimulus measure has been enhanced with eligible businesses now able to receive between $20,000 – $100,000 per business. This cash payment is for PAYG Withholding lodged on Activity Statements between March to June 2020.
The updated measure now makes payments for 100% of the PAYG Withholding lodged on Activity Statements, lodged between March 2020 to June 2020 (previously only 50%), and the threshold is now $50,000 (previously $25,000). If you pay wages but are not required to pay any PAYG Withholding, you are still eligible for a cash payment of $10,000.
All businesses that received the above-mentioned cash payment will be eligible for a second payment equal to the total PAYG Withholding claim for the March to June 2020 Activity Statements. This is to be paid out in the June 2020 to September 2020 Activity Statements, which means that all small and medium sized businesses that pay wages will be eligible for payments between $20,000 to $100,000.
How we can help you and your business
Our position regarding opportunities for businesses to maximise their benefit is more relevant now than ever.
For all clients who we currently prepare their Activity Statements, we will be reviewing your current situation to determine how you can maximise the $100,000 cap and contacting you to discuss your opportunities.
For all clients who prepare their Activity Statements, we offer our assistance during this unique time to review your current situation and help prepare your BAS’s, so that you can receive the maximum benefit from this measure.
Other relevant measures announced
Over the next six months, the Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This will be available for Sole Traders whose business has suffered or Casual workers who have lost work.
Access to Superannuation
The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
The Coronavirus SME Guarantee Scheme
Under the Scheme, the Government will provide a guarantee of 50 per cent to SME lenders for new unsecured loans up to $250,000 to be used for working capital. This will enhance these lenders’ willingness and ability to provide credit, which will result in SMEs being able to access additional funding to help support them through the upcoming months.
Please note that as Judge Accountants is a cloud-based firm, we will always be open and ready to assist you during this trying and stressful time.
We understand that all our clients during this time are trying to keep their businesses afloat. To support you through this, we are running a free webinar that will highlight our guide and strategies on how to manage and plan your business during this uncertain time.
The free webinar will be held on Thursday, 2 April at 12:00pm. Further details, including an official invitation will be sent out in the next 48 hours.