3. About us..
- Bean Ninjas helps small businesses with:
Bookkeeping
Financial Reporting
Xero education
Profit First Consulting
Business Coaching
Disclaimer: We are accountants providing general advice, please speak to
your tax accountant for specific advice for your personal circumstances.
4. About me.. - Financial Coach & Profit First Consultant
- Chartered Accountant
- Passionate about helping small business
survive & thrive
- Part of Bean Ninjas team for 3 years and
counting..
5. What are we covering?
>17.6B Stimulus Package #1 (12 March)
>66B Stimulus Package #2 (22nd March)
NOT COVERED
> State specific relief e.g payroll tax concessions
> Government has set aside another 40B to be spent from 1 July as
needed
6. A. Australian Federal Government Initiatives
B. Australian Tax Office Initiatives
C. Households & Individuals
D. BONUS: Cash flow tips for turbulent times
Agenda
7. The Fed Governments “Big Six”
● 1. Tax-free cash payments to entities that employ
staff to help with wages
● 2. Increasing Instant Asset Write off
● 3. Depreciation Deductions Accelerated
A) Federal
Government
8. ● 4. Cash support for trainees & apprentices
● 5. Insolvency Laws temporarily loosened for 6 months
● 6. Government helping small businesses access
unsecured loans from banks
A) Federal
Government
9. A) Federal
Government
Item 1) Tax-free cash payments to entities that employ staff
Who Any small biz + NFP with annual rev <$50m
Had to be registered for PAYGW before 12th March 2020.
When From 28th April. Govt payments made 14 days after BAS/IAS
submission
Notes Payment 1: You will get 100% of the PAYGW you paid from 1 Jan- 30 June 2020
back (capped to 50k)
Payment 2: Get exactly same amount as first payment, will receive this during
June-October BAS period (capped to 50k). Still need to be employing up until
September.
Minimum payment for eligible entities: TWO lots of 10k = $20k total.
Automatically credited in activity statement system once you lodge - no extra
forms needed! First payment made after March BAS submitted.
12. Q: Why is everyone so interested in the PAYGW payment?
People who currently operate a company or trust and have been taking a trust distribution,
company dividend, or owners drawings from business..
Will be considering now paying themselves on a wage (via payroll)
People will be looking to max out their PAYGW balance from 1 January to 30 June 2020 to
get this paid back and DOUBLED if they continue to employ through to September
Note - when making switch consider the additional considerations such as superannuation
& personal income tax etc.
The
Opportunity
13. Q: Can a sole trader access this payment?
A: Whilst sole traders and partnerships that employ others can access the PAYGW rebate, you
cannot employ yourself.
Q: Should I switch to a company in order to access this?
A: This is for “active eligible employers established prior to 12 March 2020” i.e registered for PAYGW
and paying staff on this date. There is some debate around if you have an ABN, whether you can
backdate this PAYGW to access grant.
Q: How do I predict the 2nd PAYG payment amount from Government?
A: Cashflow Boost Stimulus#2 is equal to amount you have already received for Stimulus #1, paid in
stages. E.g quarterly BAS cycle, 50% is paid in June BAS, other 50% paid September BAS
Common
FAQ’s
14. Q: How does this affect my GST debt or current payment plan or tax debts?
A:.This benefit will offset any existing debt with the ATO
Q: If this deposit takes my account into credit, can I take this cash out?
A: You should be entitled cash refund, if your account is in credit.
Q: How do I access Stimulus #2 for June-September?
Your business will need to continue to employ into the June and Sept quarters in order to receive
Stimulus #2.
Common
FAQ’s
15. A) Federal
Government
Item
2) Increasing Instant Asset Write off
Who Expanded to businesses with aggregate annual turnover of <$500m
(was <$50m)
When Assets used or installed between 12 March 2020 and 30 June 2020
Notes The immediate tax deduction threshold has been increased from
$30,000 to $150,000 for assets purchased between 12 March 2020
and 30 June 2020
Processed in June tax return.
Be careful: you need to spend this money & pay tax to obtain this
benefit. Decide whether you need the asset first as this expense eats
into your profit margins.
16. A) Federal
Government
Item
3) Depreciation Deductions Accelerated
Who Businesses with aggregated turnover of <$500m
When Assets acquired after Mid March and installed by 30 June 2021
Notes This allows businesses to accelerate deductions on eligible assets,
incentivising investment.
Deduct 50% of the eligible asset cost on installation in the first year,
then normal rates after this
Processed in year end tax return.
Be careful: you need to spend this money & pay tax to obtain this
benefit. Decide whether you need the asset first as this expense eats
into your profit margins.
17. A) Federal
Government
Item 4) Cash support for trainees and apprentices
Who Any small biz with annual rev <$50m
<20 Full-time employees
When 9 months from 1 January 2020 to 30 September 2020
Employer can register from early April 2020
Deadline to lodge by 31 December 2020
Notes
● Wage subsidy of 50% of apprentice’s or trainee’s wage for 9
months from 1 January 2020
● Maximum of $21,000 per eligible apprentice or trainee ($7,000 per
quarter).
Can access subsidy after an eligibility assessment is undertaken by an
Australian Apprenticeship Support network (AASN) provider.
Websites: www.dese.gov.au
wwww.australianapprenticeships.gov.au
18. A) Federal
Government
Item
5) Changed Insolvency Laws for 6 months
Who Company Directors
When 6-month period
Notes Company directors a duty to prevent insolvent trading by their company - I.e are
PERSONALLY LIABLE for insolvent trading.
E,g if company incurs debt when it was insolvent AND the director knew it was
insolvent
For 6 months: Directors will be temporarily relieved from their obligations to
prevent their companies trading while insolvent if the debts are incurred in the
company's ordinary course of business.
NB: Fraud charges are still criminal
https://asic.gov.au/for-business/small-business/starting-a-company/small-business-
company-directors/company-director-liabilities-when-things-go-wrong/
19. A) Federal
Government
Item
5) Changed Insolvency Laws for 6 months
Who All businesses under the Corporations Act 2001
When 6-month period
Notes Insolvency laws are being temporarily loosened to lessen threat of actions
that could push a struggling company into insolvency & force it to close.
>Increasing the statutory demand threshold creditors can issue
from $2,000 to $20,000 for 6 months
>Increasing the demand response time from 21 days to 6 months
20. A) Federal
Government
Item 6) Small Biz Guarantee Scheme for unsecured loans
Who Small businesses turnover <$50m borrowing up to $250k
When Early April 2020 until 30 September 2020
Notes
NEW LOANS: Govt has guaranteed 50% of new unsecured loans to
small business that Banks lend, to help with working capital. I.e
banks are more likely to lend you cash as Government is
guaranteeing 50% of this debt.
CURRENT LOANS: Aus Big 4 banks will defer repayments for
eligible small businesses for 6 months - speak direct to your bank
21. Australian Taxation Office Assistance
1. Payment deferrals (Income tax, PAYGI, FBT) by up to 4
months
2. GST Credits: change from quarterly to monthly to access
refunds quicker
3. Remove interest & penalties charged
4. Low interest payment plans
B) ATO
22. Direct Helpline available
1800 806 218
Ask them what help you can get:
> Change installments to NIL
> Shift your due dates & pause payment plans
>Remove interest & penalties
>Enter into low interest payment plans
Speak
to
ATO!
24. NB: After this ‘mortgage holiday’ loan balance will be bigger, as the interest is added
to your outstanding balance.
Defer your
Home Loan
Bank Response for those affected by COVID-19
ANZ Defer loan repayments by up to six months, interest capitalised
CBA Defer loan repayments by up to six months, interest is capitalised,
register digitally
NAB Defer loan repayments by up to six months, NAB will check in after
initial three months & interest capitalised
Westpac Defer loan repayments for three months, with another three
available after review, interest is capitalised
Other
lenders
Speak direct, they are also offering support
25. Access
your
Super
Item Access up to $20k of your superannuation
Who Employees or sole traders who have had working hours/turnover
reduced by 20% or more + unemployed & jobseekers.
When Apply via MyGov before 30 June 2020 for first 10k, access second
10k between 1 July - 30 Sept 2020.
Notes Individuals in financial distress can access 10k from their super up
to 30 June, and a second 10k from 1 July onwards
No tax on these amounts, won’t affect other welfare payments
26. Jobseeker/
Newtart
Payments
Item Jobseekers get $550 boost to fortnightly welfare
payments
Who If on or after 1 Jan 2020, you:
- were made redundant
- working hours reduced by 20% or more
- sole trader & business suspended or turnover reduced 20% or more
When - From 1 Jan to 30 June 2020 (6 months)
Notes - DON’T GO INTO CENTRELINK - can now do this via MyGov
- Maximum base rate is now $1115.70
- Just dependant on income test above (asset test waived)
27. Pensioners
&
Veterans
Payment
Item Two separate $750 cash payments
Who Pensioners, veterans, newstart, concession card holders registered
from 12th March Onwards
When First payment on 31st March for those eligible
Second $750 pmt from 13 July 2020
Notes These are processed automatically, no need to apply
No tax on these amounts, won’t affect other welfare payments
28. Retiree
Support
Item Reduced Pension Drawdown rates
Who People drawing a pension from their superannuation
When 2019/20 and 2020/21 Financial Years
Notes Government is temporarily reducing superannuation minimum
drawdown requirements for account based pensions and similar
products by 50%
This measure will benefit retirees holding these products by
reducing the need to sell investment assets to fund minimum
drawdown requirements.
30. ● CASH IS KING - preserve at all costs and ACT QUICKLY. Stop bleeding cash and this
might involve tough decisions around staffing, suppliers.
● Revenue is vanity, profit is sanity, CASH is reality. Before you launch your new online
services, pivot your business or plan your new brand strategy - PRESERVE YOUR CASH
- reduce your cash burn rate.
● Chase up your Outstanding Accounts Receivable - need cash in bank. Set Up payment
plans, progress billing, discount for early payment, get paid upfront, implement late
payment penalty, automate your invoicing, or invoice every week instead of monthly.
● Delay Accounts Payable - negotiate suppliers payment terms - can they extend your
invoice to 60 days due?
D) Managing
Cashflow
31. ● Delay or eliminate unnecessary capital spending
● Minimizing inventory replenishment and look at the impact of reducing
stock levels
● Understand the effectiveness of your marketing campaigns (know your
ROI’S), only invest in those with continued positive returns
● Cut all unnecessary expenses (see next tab)
D) Managing
Cashflow
32. Review your expenses
Is spending this money - moving you towards your ultimate goal?
ACTION PLAN Take Action and drop unnecessary expenses, and seek out better prices where
identified.
1. Call vendors and negotiate - e.g Rent free period or reduction
2. Explore other options - price check your most expensive technology, review competitors
3. Eliminate overlap - multiple resources with the same capabilities - cut one!
4. Create systems to track and verify expense success
D) Managing
Cashflow
33. Review your expenses
FREE Worksheet available here: https://docs.google.com/spreadsheets/d/1Xrsbdim2VFshNAFQWDr5WpBl1U6DPP3NAOu7l84rxe4/
edit?usp=sharing
D) Managing
Cashflow
34. "The greatest glory in living lies not in
never falling…
..but in rising every time
we fall."
Nelson
35. A. Australian Federal Government Initiatives
B. Australian Tax Office Initiatives
C. Households & Individuals
D. BONUS: Cash flow tips for turbulent times
What we
covered
36. Treasury summary of Govt Stimulus:
https://treasury.gov.au/coronavirus
ATO Breakdown:
https://www.ato.gov.au/General/New-legislation/The-Australian-Government-s-Economic-Response-to-
Coronavirus/
Info for sole traders:
https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-
for-business/Support-available-for-sole-traders
Info for business
https://treasury.gov.au/coronavirus/businesses
Info for households:
https://treasury.gov.au/coronavirus/households
Jobseeker Info: https://www.servicesaustralia.gov.au/individuals/services/centrelink/jobseeker-payment
KEY
WEBSITES