28th April 2020

    “Unfortunately, there is no silver bullet. It’s important to remember that if your business doesn’t qualify, it doesn’t mean there is no help at hand…”

    Author: Kate Smith

    COVID-19 has tested many small to medium businesses like never before. The uncertainty around the future is hard to shake, even with the assistance of measures such as JobKeeper Payment.

    The announcement of alternative turnover tests for the JobKeeper Payment was welcome news last week, particularly for those North Queensland businesses severely impacted by the 2019 monsoon and flooding event. There has been a further announcement this week extending the enrollment period for the payment from the end of April to 31 May 2020 and extension on the timing for the payment to your employees to 8 May 2020.

    Business should also remember if you do not qualify now, you may in the future, and should therefore consider projected turnover, and monitor eligibility over the coming months.

    Unfortunately though, there will be some businesses who simply may not qualify and will be ineligible for JobKeeper Payment. It’s important to remember that if your business doesn’t qualify, it doesn’t mean there is no help at hand and it is a good time to revisit the other COVID-19 Government assistance measures, some which may provide a cash boost immediately.

    Some of those initiatives include:

    Cash Boost

    From 28th April 2020, eligible businesses may receive between $20,000 and $100,000 in the form of a Pay-As-You-Go (PAYG) withholding cash boost. To be eligible, small or medium business entities, including not-for-profit organisations, sole traders, partnership, company or trust that must have:

    • held an ABN on 12 March 2020 and continues to be active
    • had an aggregated annual turnover under $50 million
    • made eligible payments you are required to withhold from
    • derived business income in the 2018–19 income year and lodged your 2019 tax return on or before 12 March 2020
    • made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant activity statement on or before 12 March 2020.

    Eligible businesses are encouraged to lodge their March activity statement as a priority. More information can be found here CASH BOOST

    Relaxation of ATO commitments

    The ATO has also released a range of other support measures to assist businesses, including:

    • Tax payment deferrals
    • Low interest tax payment plan
    • Remitting interest and penalties on non-payment or late payment of tax
    • Lodgment extensions (SMSF annual returns (until 30 June 2020) and FBT returns (until 25 June 2020) have been given an automatic deferral)
    • Varying PAYG installments
    • Changing GST reporting cycle to monthly
    • GST deferrals for importers
    • Early release of Superannuation of $10,000 prior to June 2020 and $10,000 in the 2021 financial year

    While some of these measures are automatic, many require the taxpayer to apply to the ATO for assistance. As such, we recommend contacting PVW Partners or the ATO to discuss your options.

    The full suite of available assistance measures for business can be found at PVW PARTNERS

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