Updated: Aug 18
A message from our Director:
Welcome to our March e-news.
It is an unprecedented time in business, as the coronavirus pandemic impacts economies right across the globe. In our region, this pandemic comes on top of the ongoing drought and recent bushfires and floods, putting huge pressure on businesses in all industries.
The State and Federal Governments have announced stimulus packages to help the economy and assist small to medium businesses navigate this health crisis. The ripple effect of the COVID-19 pandemic is huge and while we may be somewhat sheltered from the crisis in North Western NSW, many business will still be impacted.
Under the Federal Government's $17.6 billion stimulus package there are a range of measures to support business investment and provide cash flow assistance to help small and medium sized businesses stay in business and keep employees in their jobs.
The State Government has announced a $2.3 billion stimulus package, which will see payroll tax waived for some businesses, as well as fees and charges cut for small businesses like cafes and restaurants.
If your business is being impacted by the coronavirus or you have questions about the stimulus measures, please give the office a call on (02) 6766 3777 and we can assist you through this health crisis.
Business owners are also being reminded to switch over to myGovID. From the end of March all business owners will need a myGovID to access all of the ATO's online services.
I'm also very excited to launch our new business advisory packages. I have been working on these for quite some time and I believe the timing could not be more significant. These packages are designed to help businesses with more than just their end of year compliance. I believe the current economic conditions require businesses to know their numbers and develop strategy to ensure success.
Yours in business,
The Federal Government has announced a $17.6 billion economic plan to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world deals with the significant challenges posed by the spread of the coronavirus. The stimulus package is focused on helping small and medium sized businesses to stay in business.
Delivering support for business investment
The instant asset write off threshold will be increased from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. For example, assets that may be able to be immediately written off are a concrete tank for a builder, a tractor for a farming business, and a truck for a delivery business.
There will be a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.
Cash flow assistance for businesses
A cash flow boost will be provided for employers by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020. The payment will be tax free. Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.
Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
The NSW Government has announced a $2.3 billion health boost and economic stimulus package to protect the community and help protect jobs in the face of the COVID-19 outbreak over the next six months. As part of the package $1.6 billion will be spent on tax cuts to protect jobs and support employment.
Business support and jobs
$450 million for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the rest of 2019-20). This means these businesses will save a quarter of their annual payroll tax bill in 2019-20.
$56 million to bring forward the next round of payroll tax cuts by raising the threshold limit to $1 million in 2020-21.
$80 million to waive a range of fees and charges for small businesses including bars, cafes, restaurants and tradies.
$250 million to employ additional cleaners of public infrastructure such as transport assets, schools and other public buildings
More than $250 million to bring forward maintenance on public assets including social housing and crown land fencing
$500 million to bring forward capital works and maintenance.
Roach Morgan-Jones Accountants and Business Advisors is excited to finally release its range of NEW business advisory packages, and we believe the timing could not be more significant. We have been working on these for some time and we will be rolling these packages out in the coming weeks.
We want to help businesses with more than just their end of year compliance. Tough conditions require businesses to know their numbers and develop strategy to ensure success.
For many businesses who have struggled with recent economic conditions, it now seems this will remain the case for sometime. These packages are designed for every stage and size of business, to help the business owner understand their numbers and develop strategies for success.
The FOCUS package is designed to assist established businesses seeking independent financial analysis of their performance. Helping business owners with financial and strategic goal setting, which is backed by regular meetings.
This business package is tailored to suit each individual business and covers THREE main areas including, but not limited to budget and cashflow forecast, business health check and the development of a business strategy plan.
You can read more about the FOCUS package, including pricing.
We'd like to remind our valued clients that from March 27 business owners will no longer be able to use AUSkey and Manage ABN connections to access the ATO's online services, like the business portal. Instead each business owner will need a myGovID to identify themselves online and use the Relationship Authorisation Manager (RAM) to access government services on behalf of their business.
While it isn't a difficult change over, it is pivotal our clients are aware of this change and prepared for the switch over. Making the switch to myGovID and RAM is a simple two step process.
Click here for more information on how to get started.
Or alternatively you can give the Roach Morgan-Jones office a call on (02) 6766 3777.
We know many businesses are struggling due to the current economic climate. And we want to make sure everyone can access our services, no matter what their financial situation is.
We have now introduced fee financing options for all our services. It means clients no longer have to pay for services upfront and can break invoices down into manageable payments.
For more information, please give the office a call on (02) 6766 3777.