Navigating this difficult crisis

These are indeed unprecedented times with a health crisis which has significantly impacted our economy and way of life.

As you know the information, announcements and all sort of stimulus packages etc are being released fast – the amount of information to process and understand is as unprecedented as the COVID-19 crisis itself.

The cost of the packages is massive, the need is great, the legislative drafting task is complex, the timeframe for rollout is short, and there will no doubt be challenges in implementation.

The following are some key tips & facts:

1. Do not rush – There is no need to rush lodging the March 2020 BAS. The ATO has made it clear that the PAYG Cash Boost will not be processed until the earliest of 28th of April 2020. Now it is more important than ever to get this right. If you have always done your own BAS but are not sure what you should be doing given the circumstances, talk to us first.
2. JobKeeper – You may have received a lot of enquiries from your employees already. Press releases and fact sheets have been made public, and there are a lot of discussions and debates amongst the accounting community about certain aspects to be eligible for the payment. In reality, there will not be full clarity until the legislation and regulations have been drafted, followed by the ATO Commissioner’s view on how he will apply his discretion under this law. If your employees are asking you, reply that you are working through the eligibility requirements with your accountant and as soon as the regulations and legislation are clear, they will be the first to know.
3. Cash Flow – If you have not already, start talking to your bank, mortgage broker or us if you need assistance with loan or ATO deferral of payments etc. On Loans, if you are thinking of applying for finance or refinancing to re-price to lower repayments and rates be prepared with up to date financials and tax returns. The best prepared will get the best service. The funders are dealing with a lot of applicants, and they will more likely attend to the best-prepared applicants first.
4. Tax Planning – To be read in conjunction with point 1 – tax planning this year will be crucial to ensure you receive all the available benefits. When you are ready, please be in contact.
5. Payroll Tax – Work out with your state revenue office how you apply for any payroll tax relief. Each state is different – in Victoria, for example, you just need to apply for the refund on the SRO site and make sure you have updated bank details recorded.

For any questions you may have about accounting, tax or business matters, please feel free to contact us.

We are experiencing a large number of enquiries, but have all our team on board to support you through this period.

Stay safe, keep well.