Last updated 16 April 2020

Register for $10,000 Small business support grant

         

If your business has been highly impacted by Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 effective on 31 March 2020 

·         have experienced at least 75% decline in turnover compared to the same two-week period in 2019, as a result of COVID-19 (for businesses that have been in operation for less than 12 months, refer to the guidelines)

 

You may apply directly or we can apply for you with a cost to cover our administration fee.

 

Apply here: https://www.service.nsw.gov.au/transaction/apply-small-business-covid-19-support-grant 

Last updated 11 April 2020

We have final legislation out on JobKeeper

1. See treasury fact sheet on JobKeeper for employers - https://treasury.gov.au/coronavirus

2. See treasury fact sheet on JobKeeper for employees - https://treasury.gov.au/coronavirus

3. Do you need personal advice on accessing JobKeeper: Please organize a meeting: https://www.sunnysideaccountants.com.au/book-online.  We will advise you  on eligibility on various government stimulus packages

See below - an easy to digest visual representation of JobKeeper payment (Credit : Tax banter)

Last updated 05 April 2020

Retailer rental relief plan thinks small

Source: AFR

Federal and state governments will enforce a mandatory code of practice between commercial landlords and their small and medium-sized tenants struggling to pay rent, but the bigger tenants such as Solomon Lew’s Premier Investments will be left to fight their own battles.

Businesses with turnover of $50 million or less whose revenues have been hit by 30 per cent or more should receive rent reduction equal to the hit they have taken on their business.

‘‘There is a proportionality principle that needs to be in this code,’’ Prime Minister Scott Morrison said. ‘‘And that proportionality principle is simply this: that the turnover reduction of the tenant needs to be reflected in the rental waiver of the landlord.’’

This week has been a flashpoint for landlords because it’s the first week of the month, when rent is usually meant to be paid.

Mr Morrison said the manner in which rent reductions were passed on was up to the landlord and the tenant.

The government is still waiting for industry and states to sign off on the legally enforceable code before Tuesday next week.

The delay is understood to be due to some states’ objection to the code being mandatory. Some states considering land tax relief to landlords also base that relief on the value of a business, not its turnover

Last updated 05 April 2020

Vital cashflow  $10,000 for small business in 2 weeks for running expenses

 

A new assistance scheme has been announced today by Premier Gladys Berejiklian to allow small businesses to receive some vital cash-flow help to meet pressing financial commitments.

 

To be eligible for $10,000 cash grants to cover overheads and bills during the coronavirus crisis, businesses will need to:         

  • Have between 1-19 employees and a turnover of more than $75,000;

  • A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;

  • Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;

  • Be highly impacted by public health restrictions banning gatherings - the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020;

  • Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;

  • Provide appropriate documentation upon application.                                                                                                                  

A government source indicated it was likely that the definition of “highly impacted” would be for a business to have suffered revenue loss over a certain period of about  75per cent.

 

Applications for the grant will be available through Service NSW within a fortnight and remain open until 1 June 2020.

The NSW Government has also:

·   Provided a 3-month waiver and an additional 3-month deferral of payroll tax for businesses with payrolls of less than $10 million 

 

·   Deferred gaming tax for clubs, pubs, and hotels for six months, on condition the money is used to retain staff.

Ref: https://www.nsw.gov.au/your-government/the-premier/media-releases-from-the-premier/10000-grants-to-provide-fast-relief-for-nsw-small-businesses-battling-covid-19/

https://www.nsw.gov.au/your-government/the-premier/media-releases-from-the-premier/billions-in-tax-relief-for-business-1-billion-fund-for-jobs-and-help-for-the-vulnerable/

Last updated 31 March 2020

  • We are still waiting for the government legislation on JobKeeper. Stay tuned

  • Here is a comprehensive examples on current passed legislation application - We partnered with the Tax Institute . Click here

  • Our April news letter : Again prepared with conjunction with Australia's leading tax body - Tax institute . Please click here

Last updated 29 March 2020

​​Third tranche of government stimulus  package announced yesterday

JOBKEEPER payment : Are you eligible?

  • Please note that legislation is not passed yet. So we do not know all details yet but the following are some details 

  •  register your interest - https://www.ato.gov.au/Job-keeper-payment/

  • Jobkeeper payment treasury  fact sheets  - Click here

  • Some highlights

    • Register an intention to apply on the ATO website and assess that they have or will experience the required turnover decline. 

    • Provide information to the ATO on eligible employees. This includes information on the number of eligible employees engaged as at 1 March 2020 and those currently employed by the business (including those stood down or rehired). For most businesses, the ATO will use Single Touch Payroll data to pre-populate the employee details for the business. 

    • Ensure that each eligible employee receives at least $1,500 per fortnight (before tax). For employees that were already receiving this amount from the employer then their income will not change. For employees that have been receiving less than this amount, the employer will need to top up the payment to the employee up to $1,500, before tax. And for those employees earning more than this amount, the employer is able to provide them with a top-up. 

    • Notify all eligible employees that they are receiving the JobKeeper Payment. also Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business​

Q & A on practical steps to keep your business alive during Coronavirus outbreak
  • I’m a small business owner. What should I do first​?

    • Prepare a cash flow for the next 6 months

    • A format you can use here

    • Understand whether you are like to have negative cash flow

    • If negative cash territory is a potentially a problem, start strategizing now to navigate major costs

    • Understand no one has a Crystal ball. It's suggested that you need to monitor the situation daily.

    • Please download our comprehensive action plan here

  • What are the main areas of my business costs that I should be looking into strategizing to reduce?

    • Rent: Negotiate rents with landlords

    • Wages: Consider standing down your non-essential employees

  • What if I m not sure how to prepare cashflow?

  • I’ m a small business owner. How much I can get from the government? There are a few ways. 

    • 100% PAYG withholding tax for business' employees will be paid from 1 Jan 2020 to 30 June 2020 (up to $50,000 with minimum payment of $10,000)

    • 50% Cash Payment based on June 2020 qtr and September 2020 qtr PAYG withholding tax from 1 July 2020 to 31 October 2020 (up to $50,000 with a minimum payment of $20,000)

    • Government has increased temporary creditor claim threshold, so it is harder for your creditors to sue you for outstanding payments

    • Immediate asset write off for new asset up to $150,000

    • 50% asset write off for existing asset

    • 50% wage subsidy for an apprentice from 1 Jan 2020 to 30 Sept 2020 (maximum $21,000 or $7,000 per quarter)

    • The government will guarantee 50% of new unsecured loans from the bank.  Bank will provide a fixed low-interest rate of 0.25% business loan to business for 3 years with 6 months delay in loan repayment (up to $250,000 loan)

    • 2019-20 Payroll Tax liability to be reduced by 25% and payment can be deferred 6 months.  No payroll tax liability payment for March 2020. ​

    • Installment credits: Did your business ​pay installments during September and December BAS? Ask us to vary them to nil if your business profits are declining so you can get those installments back

    • 100% PAYG withholding tax for business' employees will be paid from 1 Jan 2020 to 30 June 2020 (up to $50,000 with minimum payment of $10,000)

    • Download our comprehensive guide here

  • I'm a  wage earner only: What are the options I have 

    • ​550 per fortnight payment to existing and new Centrelink recipients of JobSeeker, Parenting Payment and Special Benefit, etc.

    • $750 one-off payment to Centrelink social security, veteran and other income support recipients

    • Early release of your superannuation money, $10,000 before 30 June 2020 and another $10,000 during July 2020 to June 2021

  • Any other tips?

    • Practical PositivityA framework to help business owners to see their situation through a different lens and move upward. 

      • MELTDOWN. If you need to have a meltdown, do it. Negative emotions will never go away, only fester. Don’t be ashamed to have a cry and a bit of a panic​

      • ESTABLISH A BETTER VISION OF THE FUTURE. You and your clients have possibly got quite a negative vision of what’s to come. Armageddon, recession, etc. This needs to change. Start to vision the  other side.

      • SCENARIO PLANNING. Produce a cash flow forecast for the next 3 months. Imagine the worst scenario in terms of sales, then plan for it. Maybe you get no revenue for the next three months? The reality will be much better, but plan for it anyway. This will be a dip. It won’t last forever.

      • CUT BACK. Cut on any costs that are maybe excessive. You need to be careful with this bit. Don’t strip back operations completely, only those that seem excessive. I don’t mean staff here AT ALL if it can be helped.

      • GALVANISE YOUR TEAM. Communicate your better vision of the future. They are on this mission with you. They have probably had the same panics that you’ve had. Explain that you’re going to get through this together. The reason we’re cutting back (in the step above) is to preserve your team. 

      • BUILD BACK INTO THE FOUNDATIONS. This is where we look at things you may have been neglecting. Systems, processes, getting your pricing right, marketing. Whatever it is you need to do, build back into these key systems. Some of the peripheral things (maybe small jobs on your to-do list), they aren’t important in times like now. Work on the fundamentals.

      • SET UP AS A LEADER. This is your time. If your team are working from home, get them fired up, have daily calls, keep everyone positive.

      • EXPLORE OPPORTUNITIES. What opportunities do you have now to give value to your clients or customers? For your clients, this could be digitisation of your product. It could be new products, new markets.

      • MARKETING. Don’t be aggressive with selling. Start to build relationships. Be there for your community and the clients or customers that you serve. Invest in long term nurturing processes

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