An enormous amount of Government Assistance has been announced for Small Business recently and staying on top of the details has been a challenge for most people.
Following is a summary of the three incentives generating the most enquiries from our clients.
Cash Boost = PAYGW Refunds
If you normally show Wages on your BAS returns you will automatically get the PAYGW refund after your BAS returns are lodged.
No application is required.
If you haven’t previously shown wages on your BAS returns, we strongly advise against paying wages now in order to get the PAYGW refund. That would likely result in the refund not being paid and a potentially wide-ranging investigation (audit) of your business by the ATO.
JobKeeper Payments = $1500 per fortnight wage subsidy
To be eligible you must be an Employer who has experienced 30% decrease in turnover compared to a comparable period (at least a month) last year.
Self Employed individuals (sole traders with or without employees) will also be eligible if turnover has decreased 30%.
The ATO will pay the employer $1500 per fortnight for each employee that was on your books at 1 March 2020. The employer must pay at least $1500 per fortnight (before tax) to the employee.
The subsidy starts from 30 March with the first payments to be received by employers in the first week of May. (i.e Payments to employers will be in arrears / after the end of the relevant month)
You must elect to participate in the JobKeeper scheme.
Register your interest here: https://www.ato.gov.au/general/gen/JobKeeper-payment/
Queensland Government Loan = Job Support Loans
To be eligible you must have and ABN, be registered for GST, have a full-time employee (or working business owner) in Queensland, operated the business since 1 July 2017 AND suffered loss of income as a result of COVID-19.
The loan amount will be up to 50% of your annual wages expense.
The loan funds can be used for working capital expenses e.g. wages, creditors, rent, fuel, supplies. The loan can NOT be used to refinance existing loans or purchase new equipment or other assets
The interest rate is 2.5%. The loan term is 10 years with no interest or repayments in the first year. Interest only then for two years then Principal & Interest repayments are required.
You can apply at: http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme
Find Out More
Find out more about Beck Partners , Who We Are and What We Do at our website and feel free to contact info@beckpartners.com.au if we can be of any assistance.