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Economic Response to the Coronavirus


As we keep up to date on the situation surrounding the Coronavirus (COVID-19) pandemic through verified sources, we wish to let you know that we are going to continue business as usual wherever possible.


Our employees are following the guidelines issued by the World Health Organisation (WHO), including; thorough hand washing practices, social distancing and self – isolating.


The detailed WHO guidelines and myth busters can be found here:


https://www.who.int/emergencies/diseases/novel-coronavirus-2019/advice-for-public

https://www.who.int/emergencies/diseases/novel-coronavirus-2019/advice-for-public/myth-busters


If you have a meeting at the Select Accounting Erina office between tomorrow and the beginning of April, one of our team will be in contact to offer alternative options (if available) to visiting the office. These include:


· Meeting via a phone call; or

· Meeting via video conference such as Skype


As you may be aware, the Federal Government have issued a stimulus package in response to this situation and its impact on the economy. While the legislation around this is still being finalised, we have attached a summary below of items that may impact you from the Australian Government.


We understand the strain that this situation has imposed on many Australian individuals and businesses. We are here to help you in any way that we can. Whether it be to assist with cash flow issues or advise you regarding what steps you can take to minimise the impact of this pandemic, we are always here to listen.


Please call me on 0420 985 255 or email gen@selectacc.com.au if you would like further information


Kindest,

Gen x


Summary of Economic Response

Income support for individuals

Jobseeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.

The Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This would be paid to both existing and new recipients of the eligible payment categories.


Payments to support households

Social Security, Veteran and other income support recipients

Provide two rounds of $750 payments to those eligible.

Temporary early release of superannuation

Enable individuals and sole traders directly impacted by the economic consequences of the Coronavirus to access up to $10,000 of their superannuation, tax-free, in 2019-20, and up to a further$10,000 in 2020-21. No tax will be imposed on withdrawals. Temporarily reduce superannuation minimum drawdown rates

Reduce the superannuation minimum drawdown rates by 50 per cent for the 2019-20 and 2020-21 income year. Lower the social security deeming rates

Lower the social security deeming rates in response to the low interest rate environment.

Boosting Cash Flow for Employers

Enhance the previously announced Boosting Cash Flow for Employers by extending access to not-for-profits, including charities; increasing the maximum total payments to $100,000; increasing the rate of the payment, increasing minimum total payments to $20,000.


Temporary relief for financially distressed businesses

Help businesses get through a temporary period of insolvency, by temporarily providing higher thresholds and more time to respond to demands from creditors and providing temporary relief from directors’ personal insolvent trading liability


Increasing the instant asset write-off

Lifting the threshold to $150,000 (from $30,000) — and making more businesses eligible to use it up to a turnover of $500 million.


Backing business investment

Offering businesses, a time-limited incentive to invest, by accelerating depreciation deductions.


Supporting apprentices and trainees

Wage assistance to help small businesses to keep their apprentices and trainees.


Support for Coronavirus affected regions and communities Financial support to help regions and communities most affected by the Coronavirus to recover.


Support for Australian airlines and airports

Provide initial support to our airline industry through up to

$715 million of relief from a range of taxes and Government charges.


Government support for immediate cash flow needs of SMEs Establish a loan guarantee arrangement between the Government and participating banks to cover the immediate cash flow needs of

SMEs.


Australian Office of Financial Management Support

Provided the Australian Office of Financial Management with an investment capacity of $15 billion to invest in structured finance markets used by smaller lenders


Reserve Bank of Australia Support

A package of RBA measures to support the Australian economy.


Timing of Assistance

Immediately, with deductions to be included in 2019-20 tax returns

Increased instant asset write off


Immediately

Temporarily reduced minimum drawdown rates for superannuation


Immediately, with deductions to be included in 2019-20 tax returns

Backing business investment — accelerated depreciation


As soon as practicable

Support for Coronavirus-affected regions and communities


From 31 March 2020

First round of $750 payments to support households


Applications from early-April

Assistance for existing apprentices and trainees


Applications from mid-April 2020

Temporary early release of superannuation


From 27 April 2020

Income support and a Coronavirus supplement


From 28 April 2020

First phase of Boosting Cash Flow for Employers


From 1 May 2020

Increased transfer payments from reduced deeming rates


From 13 July 2020

Second round of $750 payments to support households


From 21 July 2020

Second phase of Boosting Cash Flow for Employers


source: https://treasury.gov.au/coronavirus

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ABOUT US

We are Select Accounting located in Erina on the NSW Central Coast. We pride ourselves on delivering a variety of no-fuss accounting, superannuation, bookkeping and taxation services. We want to see our client's business thrive. 

ADDRESS

E: info@selectacc.com.au

T: (02) 4337 5155

F: (02) 4311 2380

 

PO Box 3327

Erina, NSW 2250

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