By Peter Towers, Managing Director, ESS BIZTOOLS
When the Prime Minister, Scott Morrison, made this comment about two weeks ago many of us had probably not given a lot of thought as to what the outcome of the coronavirus might be in Australia. Since then we’ve now been conditioned to a number of changes including no spectators at major football matches, the virtual cessation of the international tourism industry, supply chain problems, Australian exporters losing access to markets, incoming visitors and returning residents having to go into a 14 day quarantine period. Australians suffering from coronavirus and unfortunately some people in Australia dying, whilst the casualty list on a worldwide basis continues to rise.
What does all this mean for your accountancy firm and for your clients? The government definitely anticipates it is going to be an ongoing problem, at least to 30 June 2020 and probably a fair bit longer and it is this knowledge that has motivated the government to introduce the Coronavirus Stimulus Package to keep “Australians in jobs and businesses in business”.
The package is worth $17.6 billion of which the Treasurer expects to spend $11 billion before 30 June 2020 in an attempt to stimulate economic activity through the following initiatives:
- Businesses with turnovers up to $50 million which pay the Australian Taxation Office income tax on their employees’ salaries and wages, either quarterly or monthly, will receive a payment equal to 50% of the amount withheld, up to a maximum $25,000 over the 4 month period March – June 2020.
- The government will pay a 50% subsidy towards the cost of apprentice wages up to a maximum of $7,000 per quarter per apprentice. This initiative is to encourage businesses to continue to employ apprentices when the going gets tough.
- A new instant asset write off scheme available to businesses with turnovers up to $500 million whereby assets acquired, that cost less than $150,000, will be able to be instantly written off.
There are a range of loans and grants from the Australian, State and Territory governments to assist farmers, fishermen and small businesses which have been affected by the disastrous droughts, bushfires, floods and cyclones that have affected Australia in the last 12 months.
Many small businesses and medium-sized enterprises will be struggling to survive this double and in some cases triple, whammy of natural disasters and coronavirus.
To assist accountants and business advisors to be able to offer a range of services to assist your clients to survive during this very difficult period ESS BIZTOOLS has launched “Survival in Difficult Times” product package which offers a range of questionnaires, commentary and training videos on over 40 different aspects of steering a business through a very difficult time with the product package being ready for accountants to commence utilising without having to “reinvent the wheel”. The quicker you activate this process of mentoring assistance for your clients, the greater the chance that your clients will survive this “difficult time”!
You’re invited to visit our website to view the “Learn More” material to acquaint yourself with the
If you have any questions on any aspect of this product or any of the other services supplied by ESS BIZTOOLS, please send me an email email@example.com.
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