COVID-19 Business Solutions
How It Will Affect Your Entire Business?
- If the Government or Department of Health orders you to fully shut down, and your employees can’t reasonably work elsewhere, you may be in a position to stand them down without pay.
- If the Department of Health doesn’t order you to fully shut down, you can still request that employees work remotely, or shut down the workplace based on health and safety grounds and for any other stoppage of work for which the employer cannot be held responsible.
- Directors will be temporarily relieved from the risk of personal liability for insolvent trading for a period of 6 months, where the debts are incurred in the ordinary course of business.
- Statutory timeframe for a company to respond to a Creditors Statutory Demand will be extended temporarily from 21 days to six months. This is the last step a creditor goes through before issuing a Winding Up Petition.
- Debtors will have 6 months (rather than the current 21 days) to respond to a bankruptcy notice.
Payment Deferral Concessions
- Deferring the payment date of amounts due by up to 4 months including PAYG, income tax assessments, fringe benefits tax, and excise duty.
- Remission of any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.
- Allowing affected businesses to enter into low-interest payment plans for their existing and ongoing tax liabilities.
100% Cashback on PAYG Withholding up to $100,000
- Business entities with annual aggregated turnover of less than $50 million that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 100% of the amount withheld, up to a maximum payment of $100,000.
- Eligible businesses that pay salary and wages will receive a minimum payment of $20,000, even if they are not required to withhold tax.
- The ATO will deliver the payment as a credit to the business upon lodgement of their activity statements. Where this places the business in a refund position, the ATO will deliver the refund within 14 days. The payment will be a tax-free refund or credit.
- Most States are providing support by way of refunds, payroll tax reductions, and/or deferral of payments.
- CASH must be KING.
- Prepare a 13 weeks cash flow budget, be realistic
- If putting off staff do it early
- Defer compliance payments like ATO and Payroll Tax for 3-6 months by consulting with them.
- Renegotiate property leases, request rent holidays, or deferral of rent payments.
- Remember, “if you think you have cut too hard you probably have it about right”
- All Banks are providing loans up to $250,000 unsecured with much less hassle and much quicker than in normal times.