Stimulus Support - Individuals

Discussion in 'Accounting & Tax' started by Paul@PAS, 23rd Mar, 2020.

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  1. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Strategies which may vary depending someone is out or work , partly working or even working full time. Obviously those with income would not utilise options to stop payments.

    #1 Preserve cashflow

    • DO Avoid discretionary spending. Set something aside perhaps in place of paying it.
    • DO continue to pay bills. Identify which can be deferred and which could be part paid
    • DONT stop buying and supporting small business. Every $ will be important to them financially and for mental health

    #2 Lost work - Apply for benefits
    • MyGov registration is step one. Centrelink linked account. (You may need to call and verify you are you)
    • Centrelink Online applications are expediated. And backdated to that date.
    • Seeks evidence to no income. A letter, email etc from the payer may assist. A separataion certificate is often needed but special exemptions are being applied.
    • Special rules operate at present. Your adult kids could even be eligible. Dont delay applying. Wait times are reduced. Substantially.
    #3 ATO and other deferrable payments
    Loads of organisations will assist deferring payments including
    • ATO debts
    • ATO vary tax instalments before they are due
    • ATO (Can you vary PAYG Instalments and get a credit for what was already paid ?)
    • Banks for affected loans. eg Home loans, investment loans where rent stops etc
    • Credit card, personal loans etc
    • Utilities
    • Internet & mobile - It may help to maintain this one !! You dont want all communications to be cut.
    #4 PAYG Withholding Variations
    This is one I now DONT recommend. Taxpayers can apply for variation and access lower tax on salary and wages. Thi often helps investors access better cashflow during the year. The problem with starting a variation now are likely to means its a waste of time:
    • ATO processing delays will be weeks and weeks. Processing is often 4+ weeks. With ATO staff scaling back the delays could mean processing never occurs
    • In that time your pay may change and it may be of little benefit anyway
    • Cost
     
    alexm and EN710 like this.