ATO New Tax Measures to assist COVID-19 affected business
The authorities has declared a number of economic responses to the Coronavirus (‘COVID-19’) pandemic, that includes the economic stimulus packages that is worth billions of dollars.
Basic Tax Measures
• The instant asset write-off threshold has been incremented from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) from Thursday 12 March 2020 until 30 June 2020.
• An investment incentive of 15-months (through to 30 June 2021) which will operate to accelerate certain depreciation deductions. This measure will be available also to the enterprises having a turnover of less than $500 million that will be able to straight away deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
• Small and medium businesses (and non-profit entities), with a total annual turnover of less than $50 million that employ people, may be eligible to receive a total payment of up to $100,000 (with a minimum total payment of $20,000), based on their PAYG withholding obligations.
Availability of options for assistance of businesses impacted by COVID-19 includes:
• Deferring by up to six months the payment date of amounts due through the business activity statement (including Pay As You Go (‘PAYG’) instalments), income tax assessments, FBT assessments and excise; and
• Suspension of interest and penalties, incurred on or after 23 January 2020 that has been applied to tax liabilities.
However, note that employers will still need to meet their ongoing super guarantee obligations for their employees.
Overview by Reliable Bookkeeping Services, Melbourne
The PAYG Obligations are required to be dealt carefully, since the businesses may be required to meet the obligations related to payment and then get a debate. Better cash flow planning is crucial to manage this.
Super Guarantee payments cannot be altered as these are authorized by law. You may contact ATO, if you are facing any trouble meeting these. For the economy, instant asset write-off is an investment booster. Get assured to take any decision related to investment carefully, since your business pass through many economic challenges.
Obviously this year planning of taxes is more crucial than ever. You must speak accountant for accounting services now. These measures taken by the authorities provide a great deal to the small businesses in the upcoming months. Be assured to keep the lines of communication open with your bank, creditors, ATO and accountant.
Reliable Bookkeeping Services, Melbourne provide bookkeeping services for business. Please contact us at 1300 049 534 If you need any advice or assistance during this difficult time.