Preparation is the key
Posted by
Matt Hale
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It has become clear that there are two themes continually presenting themselves during the COVID-19 crisis. They are preparation and patience.
Today we will be looking at preparation. I will cover off patiencelater in the week.
Preparation
At times of uncertainty like this, taking steps to ensure more positive outcomes is one of the few things that we can do to gain some comfort and peace of mind.
We are in unchartered waters and as such, there is very little certainty. But what we do know is that there are some key steps you can take to put yourself in the best position to ride things out.
If you are a business owner;
- Check the table below and see what you, your staff and your business may be eligible for from a stimulus perspective.
- Make sure you register for updates
- Get on top of your business numbers
- Your cash flow forecasts
- Review your budget
- Prepare a contingency plan and get on the front foot
- Engage with clients who may be affected and tell them what you are doing
- Begin conversations with your bank
- Discuss early with your suppliers if you foresee cash flow issues
Summary of available Federal and State (VIC) based incentives for businesses:
| Who may be eligible | Incentive/Grant | Eligibility Requirement 1 | Eligibility Requirement 2 | Do Grouping Provisions Apply? | Effective Date | Action/How Apply |
|---|---|---|---|---|---|---|
| Business | $100K PAYGW Grant (Min $20K) | Aggregated turnover less than $50M | Must employ staff | Yes | 18 April 2020 onwards | Submit March BAS with PAYGW |
| Business | PAYG Instalment Relief | Must be required to pay PAYG Instalments | NA | No | Immediately | Can vary to $Nil on next activity statement |
| Business | Instant Asset Write Off $150K | Aggregated turnover less than $500M | Must be qualifying assets | Yes | 12 March 2020 until 30 June 2020. For assets used or installed by 30 June 2021, 50% deduction of cost of eligible asset | Eligible deductions included in FY20 tax returns |
| Business | Apprentices and Trainees – 50% Wage Subsidy for 9 Months ($21K Cap per eligible apprentice/trainee) | Eligible Small Business with less than 20 full-time employees | Must retain an apprentice or trainee | Yes | Can register from April 2020 onwards | TBC |
| Business | Payroll Tax refunded FY20 | Business with annual taxable wages less than $3M Victorian taxable wages for FY19/20 | NA | No | 27 March 2020 onwards | Applications made via SRO website |
| Business | Land Tax deferral of payment | Hold at least one non-residential property and total taxable landholding less than $1M | NA | Yes | Deferred to 31 March 2021 | SRO will contact clients directly |
| Business | Business Support Grant $10K | Payroll less than $650K and turnover greater than $75K | Business subject to closure or highly impacted by shutdown restrictions | Yes | Applications open now. Payment dates TBC | Applications made via business.vic.gov.au website |
| Business | Liquor License – 2020 renewable liquor licence fees waived | Affected venues and small businesses. | NA | Yes | Effective Immediately | SRO will contact clients directly |
If you are a individual/employee;
- Check the table below and for what you may be eligible for from a stimulus perspective
- Make sure you setup a MyGov account. This site is where all the stimulus measures will be pushed through.
- Get on top of your personal finances
- Build a cash buffer!
(Go through your transaction statements, cut any expenses you can live without) - Prepare a contingency plan and get on the front foot.
- If you are renting, start conversations with your landlord
- If you are a landlord, talk to your Rental Manager
- Watch the conversation I had with Senior Financial Planner, Rebecca Pritchard here, it will give you a more details on some things to consider
Summary of available federal and state (VIC) based incentives for individuals:
| Incentive/Grant | Eligibility Requirement 1 | Eligibility Requirement 2 | Effective Date | Action/How Apply |
|---|---|---|---|---|
| Job Seeker Payments | Employment terminated or stood down. Cannot be in receipt of JobKeeper payments (refer below) | Spouse income below $79,762 | 27 April 2020 onwards | Individual applies on MyGov or via Centrelink |
| Access $10K from Superannuation | Employment terminated and eligible to receive Job Seeker Payments | Since 1 January 2020, working hours reduced by 20% | April 2020 onwards (dates TBC) | Applications made via MyGov |
| Land Tax deferral of payment | Hold at least one non-residential property and total taxable landholding less than $1M | NA | Deferred to 31 March 2021 | SRO will contact clients directly |
| JobKeeper payments – $1,500 per fortnight, per eligible employee | Turnover less than $1 billion and turnover reduced by more than 30% compared to same period last year | Business is not subject to Major Bank Levy | Subsidy starts 30 March 2020, first payments 1 May 2020 | Applications made over ATO website |
