Under the new Small Business Recovery Grant, small businesses will be able to apply for funding up to $3000.
Apply for the small business COVID-19 support grant
If your small business or non-profit organisation has experienced a significant decline in revenue as a result of COVID-19, you may be eligible for a small business support grant of up to $10,000.
Tax Planning 2020
With 30 June fast approaching, its time to ensure you have maximised your planning to minimise your tax. These tax planning tips will enable you or your business to ensure you have everything in place before it’s too late:
Casual Employee Rights
On the 2oth May 2020, the full Federal Court of Australia handed down a decision regarding the conditions of “regular casual” employment and the entitlements of these casual employees. The decision has opened the door for changes to the Fair Work Act, in the future.
Accessing Your Superannuation Early
The Governments announcement allowing Australians to access their super early has been met with an overwhelming response. We would like to take this opportunity to urge caution when considering accessing your superannuation balance early. Depending on your age a withdrawal of $20,000 from your superannuation may have a devastating impact on your superannuation balance at retirement.
ASIC Lodgements Deadlines Extended for Unlisted Entities
The corporate regulator, the Australian Securities and Investments Commission (ASIC), has extended the reporting deadline by one month for unlisted entities with balance dates from 31 December 2019 to 31 March 2020.
You Know That We Are Living in a “Material” World
Accountants are fun too! We know all the hits. But in this case we are actually talking about what Materiality means in relation to your financial reporting.
Impacts of COVID-19 on Financial Reporting
As COVID-19 continues to spread globally, it is appropriate for organisations to consider the impact of this health crisis, to their financial position, performance and financial reporting disclosure
Immunising Your Internal Control Environment
Ensure your business controls and processes are up to date and still effective during this period of uncertainty. Some changes will need to be made to effectively meet your reporting obligations
Jobkeeper update
Juston Jirwander
Business Services – Bishop Collins
JobKeeper Payment Update
We have received many queries around how to establish if a business/organisation has faced a fall in turnover of 30% (or 50% for larger entities). Questions around timing have also been strong.
We will address both these points below however be aware that the legislation has not yet passed and no actions should be committed to until the detail of the legislation has been reviewed. Please contact our business services team to discuss if you are unsure.
How do I show that my turnover has fallen by 30% (or 50%)?
The Federal Government has released an update yesterday giving more clarity of how to establish if a business has faced either a 30 (or 50) per cent fall in their turnover.
Most (not all) businesses would be expected to establish that their turnover has fallen in the relevant month or three months (depending if you are a monthly or a quarterly activity statement lodger) compared to the same period a year earlier.
This has raised many questions some of which are:
- What if my business was not in operation a year earlier?
- What if my turnover a year earlier was not representative of my usual average turnover?
- March BAS will not show a significant reduction but my June BAS will, do I have to wait?
- We don’t know how much we will be affected but we do know it will be significant – should we apply?
- My business was forced to shut down either by health order or we lost all future contracts however my March BAS will not show that compared to last year. Am I eligible now?
- What if turnover does not fall by 30% (or 50%)?
Yesterday’s Treasury update gives some guidance on the above.
”…… the Tax Commissioner will have discretion to consider additional
information that the business can provide to establish that they have been significantly affected by the impacts of the Coronavirus.”
“The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in specific circumstances” such as new business established within the 2020 financial year that have been forced to close.
“There will be some tolerance where employers, in good faith, estimate a greater than 30 (or 50) per cent fall in turnover but actually experience a slightly smaller fall.”
The examples given by Treasury show that businesses that are still operating but expect turnover to decline by more than 30 per cent in the coming months are eligible.
Please refer to the following link for more details: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_Info_for_Employees.pdf
Timing
There has been concerns raised from employers around the timing of payments received by the ATO.
The JobKeeper payment to employers will be made monthly in arrears by the ATO. The first payment to employers will be received in the first week of May based on payments to employees made in the month of April.
If you will experience cash flow stress or are unable to pay employees in advance of receiving the JobKeeper payment please contact your relationship manager, to discuss options to support you.
These can include strategies around deferral of certain payments and access to credit supported by the government.
Parliament is sitting on Wednesday 8th April 2020 to finalise the detail and enact legislation.
We will aim to issue a further update once the legislation is enacted.
For more personalised advice and recommendations please contact our business services team at Bishop Collins – Chartered Accountants. Alternatively, email [email protected] or click on the following link: Bishop Collins
From everyone at Bishop Collins, we want to help! One thing is sure that this crisis must end and each day that passes brings us closer to that end. Please stay well and positive.