Institute of Certified Bookkeepers

UPDATED Government Program as of 22 March 2020

6.30pm AEDT

ICB members - full 14 page explanation for Bookkeepers and Businesses

Details as announced as of 22 March 2020, Prior to Legislation being presented.  

Narrative in RED are the significant changes to previously announced provisions

UPDATE:  PAYGW credit of up to $100k for employers (Previously $25k) paid in two allotments

It is not law yet!  It is extremely likely to become law.

Both sides of Parliament have indicated their support for these measures.

Sole Traders and Self Employed are considered eligible for Jobseeker payment and the special fortnightly payment.   Note:  the ATO initiative below to stop paying PAYGI provides a cashflow timing benefit.

Awaiting:  Trust Beneficiaries – We are informed there is an announcement coming but not today. 

Summary:   Government – Treasury Initiatives

Businesses with turnover below $500m

1/ Instant Asset write off up to $130k per asset – Only until 30 June 2020

2/ 50% instant depreciation for “certain” assets – until 30 June 2021

Employers (including NFPs) with turnover below $50m

3/ Credit on BAS for 100% of PAYGW up to $100k

Employers of Apprentices or Trainees with less than 20 Employees

4/ Subsidy of 50% of wages for 9 months to max of $21k per apprentice

Regional Support

5/ $1b funding made available to support regions on a case by case basis

Individuals

6/ Payments of two amounts of $750 for Jobseeker (Newstart) recipients and other Social Security Recipients

7/ $550 per fortnight payment to new and existing Job Seeker Payments and other recipients including Sole Traders whose income has dropped (details awaiting but 20% drop was announced)

8/ Upon loss of Job:  Income Support for Job Seekers with a waive of the Asset test and no waiting period.

9/ Access to Superannuation of $10k before June 30 & another $10k after

Sole Traders in business

*7/ $550 per fortnight payment to Sole Traders whose income has dropped by 20% or more

Lending Support for Business

10/ Lending / Borrowing Capacity increased

11/ Banks deferring repayments for 6 months (subject to detail)

12/ Unsecured loans upto $250k

Struggling Businesses

13/ Directors personal liability relief

14/ Longer times before Liquidation action

Increase the thresholds before a creditor can instigate liquidation action:

-               Amounts over $20k

-              Outstanding for more than 6 months.

 

ATO supporting business – no law required

Businesses to apply for the below initiatives by contacting the ATO on 1800 806 218

Registered Agents contact the ATO “Agent Disaster Infoline” on  1800 700 724

Case by Case discussion with the ATO to be eligible

  1.  4 month deferral on payments
  2.  Convert to Monthly BAS
  3.  PAYG Instalments (Income Tax) can be varied to Nil
  4.  Remit penalties and interest imposed sine 23 Jan 2020.
  5.  Low interest Payment Plans

NOTE:  There is no discretion available for Super Payments.  Super must be paid as per normal.

 

We expect the law will include provisions for misuse or contrived arrangements to take advantage of these “concessions” when the business would not ordinarily have such arrangements.

 

ICB members - full 14 page explanation for Bookkeepers and Businesses

 

Previous Issued News items

Employers Response

Previous Explanation on Econcomic Stimulus Vsn 1

 

Further Information

Obtain the assistance of an ICB Certified Bookkeeper

Become an ICB member - Membership Explained

Business Support Program

  • 22nd March 2020
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