More Government Stimulus This One is Huge

Discussion in 'Accounting & Tax' started by Mike A, 22nd Mar, 2020.

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  1. Mike A

    Mike A Accountant Business Member

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    The Federal Government will announce a further $66B stimulus package today.

    The package includes:

    > an extension of the PAYGW rebates for eligible businesses. The rebates will now be up to $100,000 for businesses who turnover less than $50m;

    > a loan guarantee scheme where the government will secure up to 50% of business loans; and

    > a reduction in the amount that pensioners must draw down from their superfunds to minimise the affect of a falling share market.

    These measures take the government's response to around 9.5% of GDP, over double the next biggest response (Canada's 4.5% of GDP).

    More here => PM unleashes another $66b, more to come

    Get in touch with your accountant in the first instance to determine if you're eligible for relief and how to claim it.
     
  2. Timmah

    Timmah Active Member

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    Do you think this would come in the form of a 1 off payment, or more so when tax is filed for the year?
     
  3. Mike A

    Mike A Accountant Business Member

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    More details will come through when legislation is put into place tomorrow.

    At present the payments will be made through the activity statement system. So for mar qtr would expect payments to flow around april/may ish and june qtr around july/august ish

    The top up payment im not sure about.

    They wont be when taxes are filed but when your BAS/IAS is lodged

    Will update this thread once we get clearer details
     
  4. Timmah

    Timmah Active Member

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    Ah yes okay i see, thank you for clearing that up! Will keep an eye on this thread as things prevail.
     
  5. Nodrog

    Nodrog Well-Known Member

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  6. Mike A

    Mike A Accountant Business Member

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    Discussing the concept of who is eligible it looks as though one of the requirements is that the entity was registered for PAYG prior to 12 march 2020.

    This will prevent some people from setting up new companies and trusts and registering them now or registering for PAYG for existing companies or trusts that are dormant entities.

    Im sure some more integrity measures will be announced in the next day or so.
     
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  7. Mike A

    Mike A Accountant Business Member

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  8. Propagate

    Propagate Well-Known Member

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    Is the diagram for FED second tranche correct? The way I read the treasury statement was 1st round based on PAYGW jan to June then second round was essentially whatever you got in the first round again? (Up to the $50k caps) regardless of actual PAYGW from July?
     
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  9. AndyPandy

    AndyPandy Well-Known Member

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    Any assistance for sole traders other than access to superannuation?
     
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  10. Silverson

    Silverson Well-Known Member

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    Sole traders and those who don’t employ anyone, get two parts of f-all.
    Considering they account for 60% of small business. It’s disheartening very disheartening. These are people who have no sick pay, no holiday pay etc and really in my opinion got the shirt end of this one.
    Happy to be corrected but basically those doing nothing already get double (Newstart) and those out there actually having a go get 550 a fortnight which is less than Newstart.
    Disgusting
    I sincerely hope that the 25-100k payments that go to business who employ is followed to a tee, what’s stopping businesses receiving the grant and sacking anyway?
     
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  11. Propagate

    Propagate Well-Known Member

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    Can a sole trader who's work has dried up apply for New Start?
     
  12. Tyler Durden

    Tyler Durden Well-Known Member

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    Check out the attached factsheet, explains it quite clearly.
     

    Attached Files:

  13. Tyler Durden

    Tyler Durden Well-Known Member

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    Yes, asset test and waiting times waived - try this fact sheet....
     

    Attached Files:

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  14. Mike A

    Mike A Accountant Business Member

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    At present we only have treasury discussion papers so once we see the legislation later today we will know the finer details. Mind you seems to be a moving beast at present.
     
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  15. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Centrelink support has moved to online and this is the preferred basis. You NEED MyGov to use these services. Once you have MyGov you can access:
    - Centrelink online services incl expediated applications for benefits.
    - ATO for super release when logged into your personal tax account. Note I believe that a person may need to be in receipt of cntrelink benefits to access this concession. (Information hasnt been detailed). I cant envisage allowing all Australians to just take $10K before and $10K after 30 June from super accounts.

    Contrary to all advice I have been giving that MyGov should be avoided this is now different.
     
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  16. Mike A

    Mike A Accountant Business Member

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    Times have changed a lot so we all need to adapt. Even im having trouble trying to keep up to date and communicate all the changes and incentives. But if we all work together then we can help people maximise what they can to help them get through this event.
     
  17. Mike A

    Mike A Accountant Business Member

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    The Coronavirus Economic Response Package Omnibus Bill 2020 has just been introduced into Parliament. The Bill gives effect to the Stimulus Packages announced on 12 March 2020 and 22 March 2020 to address the economic consequences of the Coronavirus.

    I will be working through the Bill later today ane hopefully some of our questions can now be answered.

    The Bill and EM is available here:
    Coronavirus Economic Response Package Omnibus Bill 2020 – Parliament of Australia

    @[email protected] maybe between the two of us we can help others gain some certainty on the legislation being introduced
     
  18. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Couldnt find the Bill. The one word I didnt search was coronavirus. Durh.

    I had three questions that the EM appears to vaguely address:

    1. Avoidance. I'm not convinced the avoidance rule is that hard. I dont mean its there to rort. I do mean that some businesses have choices and flexibility. For example a trust that employs staff. Can it now add a working beneficiary to the extent the value of their salary is not excessive ? (akin to the workers comp rule? which calls it earnings). We often see sprodaic earnings drawn by working owners etc. The EM even refers to PAYGW withholding that is Nil ? NTAA raises eyebrow when asked.
    2. Round 2 v round one. Its apparent round one MUST be obtained to get round two.
    3. PSI. The EM appears to set a test based on business income OR taxable supplies. And holding a ABN by 13 March etc. I do believe a entity that pays PSI through the witholding system is entitled. Provided that the income is subject to GST. And its not a new arrangement. The GST reporting existed prior to the March BAS

    Key issues:
    • broadly, a payment of wages or salary or similar remuneration (ordinary use of that word?)
    • it both: – held an ABN on 12 March 2020; and – either derived assessable income from carrying on a business in the 2018-19 income year or made one or more supplies for consideration in the course of an enterprise it carried on within Australia in tax periods commencing after 1 July 2018 and ending before 12 March 2020 and notice of the income or supplies was held by the Commissioner on or before 12 March 2020 or within such further time as the Commissioner allows
     
  19. Mike A

    Mike A Accountant Business Member

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  20. paulF

    paulF Well-Known Member

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    Has there been any news on land tax at all?