Hands up if you’re a small company of one (or two, three, four?). This is a special post just for you.
The help being provided to small business is moving quickly and being updated regularly right now. If you are a Sole Trader also see my previous post.
Here’s the help available for Small Businesses now:
For Businesses that Employ Staff (including yourself)
For now, the government will now pay 100% of PAYG payments for the March and June quarters. What this means is you will get back the tax amount withheld from wages and reported on your BAS for up to $50,000 for this period. You do not receive this as a cash payment. It will be applied as a credit to your ATO Activity Statement account when you lodge your BAS for these periods. To claim this, you must continue to be active in your business.
The minimum payment is $20,000 and the maximum is $100,000 that will be spread across 6 months.
In the example that you have just 1 or a few employees (including yourself), the $20k will first be credited to your PAYG, and then would be credited towards your GST/BAS owing.
Here’s how this will work for you:
- Sole trader or company with no employees – you will be unable to claim the boost payment (see previous post for what’s available to you).
- Sole trader or company with employees and you withhold PAYG from wages – you can claim up to $50,000 however you must continue to be active
- Sole trader or company with employees but you do not withhold PAYG from wages (which would be the case if wages paid are less than the PAYG withholding threshold) – you can claim the minimum $10,000 once off
- Company that pays director fees only – you cannot claim any boost payment
- If your business was not established prior to 12 March 2020, then you cannot access this cash boost
Employers Paying Superannuation
If you have employees, you are still currently required to meet your ongoing superannuation obligations.
Accessing Your Own Superannuation
The Government is allowing certain individuals affected by the Coronavirus to access up to $10,000 of their superannuation before 1 July 2020 and a further $10,000 in the following financial year to help with cashflow.
Businesses That Have Apprentices
Can access a subsidy of 50% of an apprentice or trainee’s wage for nine months (1 January 2020 to 30 September 2020). To be eligible, the business must employ fewer than 20 full-time staff and retain an apprentice or trainee.
If You Need A Business Loan
The government will guarantee 50% of your loan with your bank if you need funds to continue to operate.
If You Need To Buy Things Right Now
The instant asset write-off has increased from $30,000 to $150,000 for assets purchased between 12th March 2020 and 30th June 2020.
- Home loans can be put on hold with most major banks right now. Contact your bank or apply online
- Business loans can also be put on hold right now
- If you have a businesses premises ask your landlord for a rent freeze
- If you have staff ask them if they would be willing t drop down to part-time or take leave without pay. Alternatively a reduction in pay for a set period.
Please SHARE this with anyone you know that it could help. We all need to work together right now, and having fast access to this information could save a friend their livelihood.