Greetings From Home
It is a testing time for us all and we’re exploring ways to help navigate through the current circumstances. For a deep-dive into what’s out there, we’ve pulled together some resources below, including webinars, articles, and an overview of the Government’s stimulus package. We are working hard to ensure that our portfolio is supported during this time. To help the greater startup community we have put together a collection of resources we have collaborated with our Partners to create around the changes occurring daily to the stimulus package and laws around insolvency and contracts. We’ve collaborated with Cole Wilkinson from Pitcher Partners to summarise the most recent information on the stimulus package. James from LegalVision has sent over some useful information about understanding all the options available to you at this time around contracts and considerations when managing employee obligations. Steve filmed a Video Session with Ashley Tiplady — Partner (Mills Oakley) Commercial Disputes & Insolvency this week. Regarding Insolvency changes, leasing obligations, frustration in contracts and force majeure. This will push out shortly along with any updates on stimulus changes as they come in.
Stimulus Package Information
Stimulus package — stage 1
- Enhanced instant asset write-off (ATO Fact Sheet)
- 50% investment incentive
- Cash flow assistance for businesses (updated in Extension of PAYG Withholding Support below)
- Supporting apprentices and trainees (ATO Fact Sheet pages 3–4)
- Support to regions and communities most affected
- Payments to certain concessional recipients
Stimulus package — stage 2
Extension of PAYG Withholding support (ATO Fact Sheet — stage 2) (ATO Fact Sheet — stage 1)
- Employers receive a payment equal to 100% of their salary and wages withheld, up to a maximum of $100k
- Minimum payment of $20k even if not required to withhold tax
- Payment available from 28th April 2020 (initial payment up to $50K can be received as part of the March PAYGW lodgement, with the remaining payment up to $50K paid over the June — September 2020 period)
- Payments are tax free and will flow automatically through the ATO (no new forms required)
Temporary relief for financially distressed businesses (ATO Fact Sheet)
- Temporary higher threshold, and more time to respond to demand from creditors
- Temporary relief for directors’ personal liability for insolvent trading while insolvent
- Providing the treasurer an instrument-making power under the Corporations Act
- ATO recovery action
Measures to provide credit support (ATO Fact Sheet)
Other ATO Measures
There will be further administrative measures allowed by the ATO to assist taxpayers in meeting their tax obligations, include the following.
Deferring by up to 4 months the payment of tax amounts due through the BAS (including PAYG installments), income tax assessments, FBT Assessments and excise;
- Allowing businesses on a quarterly reporting cycle to opt into monthly GST reporting to get quicker access to GST refunds;
Remitting any interest and penalties, incurred on or after 23 January 2020 that have been applied to tax liabilities; and
- Allowing affected businesses to enter into low-interest payment plans for their existing and ongoing tax liabilities.
Cutting Costs and Managing Your Obligations
LegalVision has sent over things to consider when looking at Employee retention and contractual obligation.
Employees and COVID-19: 4 Key Steps to Consider.
In the pandemic-driven downturn, most business owners are reducing costs and cutting employee hours has become a priority. To understand your options, see our factsheet Employees and COVID-19: 4 Key Steps to Consider.
If you are having difficulty supplying or receiving goods and services, paying rent or are worried about breaching contractual obligations, read these articles:
It also helps to understand your consumer law obligations, and whether your contracts have a force majeure clause.
Just in: Queensland Government Package
Supply chain support and assistance
- Queensland COVID-19 jobs support loans
- COVID-19 business support
- Payroll tax support
- Support for agriculture and fisheries
- Support for exporters