As communities continue to respond to COVID-19, we know that this uncertain time presents unique challenges for small businesses. Evalesco is fully supportive of the government’s plan to minimise contact and our team are here to support you. Here are our thoughts and some helpful information to assist you in navigating this period for your business and your employees.
JobKeeper payment
This week has seen an important update from the government as part of their stimulus package, announcing a JobKeeper payment available to both employers and sole traders. The payment on offer is a fortnightly $1,500 payment which will be made to employers for a maximum of 6 months, for eligible employees. Businesses will have to demonstrate that revenue has reduced by more than 30% relative to before the COVID-19 outbreak, to be eligible, and the payments must be passed onto the eligible employees.
Employees who receive this payment must report it to Centrelink, if they are currently in receipt of other benefits, as it may impact other support payments they are currently receiving. If you have been stood down from work or your hours reduced by your employer you should get in touch with them to discuss how this payment could work for you.
Here are some fact sheets with some more information for employers and employees.
If you think your business may be eligible, it’s a good idea to register your interest to claim the JobKeeper payment with the ATO.
PAYG
There is significant relief for those small businesses with gross revenue of less than $50 million. The relief payments will depend on the level of PAYG withheld (up to the maximum of $100K), and are tax free. They will flow directly through to the business’ ATO integrated client account.
Loans
The government is working with financial institutions to extend unsecured loans up to $250,000 for small businesses. The government will guarantee half of the value of the loans and loan terms will be 3 years with no repayments required for the first 6 months.
Instant Asset Write-off
The instant asset write-off will increase from $30,000 to $150,000. This means assets bought for less than $150,000 can now be written off as a deduction straight away rather than depreciated over a number of years.
Communicating is so important in these uncertain times. If you are feeling nervous or lonely and could use a chat, please don’t hesitate to pick up the phone and give us a call.
