What is the government offering to help your business?
There have been two initial packages put together by the government to assist you. This is a brief summary:
- 100% of the PAYGW you report on your BAS/IAS credited back to you from March to June. They will credit a minimum of $10,000 (maximum $50,000) ie if you withhold less they will still credit $10,000. Then they will credit you the same amount again July to September. If this puts you into a refund position with the ATO then they will refund you the money
- Defer payment dates for BAS and income tax by 6 months – you need to request this
- You can vary your tax instalments on your BAS to NIL
- The business can buy assets up to $150,000 and claim the full amount as an expense up to 30 June 2020 (this replaces the $30,000 cap)
- Each state has brought in their own payroll tax relief – check with your state
If you want to read the detail – https://www.ato.gov.au/General/New-legislation/The-Australian-Government-s-Economic-Response-to-Coronavirus/
If you are a client and confused then please email Kezah to assist you or email us back to forward on to her.
The latest package just announced is the JobKeeper Payment. Whilst writing this we don’t yet have ALL the details, but if you expect your revenue to drop by 30% or more then you can register with the ATO for this – https://www.ato.gov.au/general/gen/JobKeeper-payment/
You will get $1,500 per employee per fortnight, which needs to be paid to the employee – you top up those that earn more and you pay extra to those usually earning less. Lots of detail around this – https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_0.pdf?fbclid=IwAR17Jjmszxwfq_Xlln8c95zdVs0CHZ–JKf6WrmuuooIeIUiNZtYiRQkXP8
All in all we estimate that most veterinary businesses that drop 30% in revenue and get this payment will have a similar profit to what they have currently. Plus you will still get the PAYGW credit as you will continue to employ everyone. If applied and tracked properly, we feel that this will be enough to keep most veterinary businesses going
We will have a quick web event on Thursday midday Brisbane time to show you a new report for APL clients on profitdiagnostix (available to non clients for a small fee) to assist you with this and also explain a bit more detail on it. You can register here https://zoom.us/webinar/register/WN_kz1UPUdhSjecVdMBXWl9dg