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Cashflow Stimulus

The federal government have increased the cashflow stimulus package that was announced last week, from $2,000 to $10,000 for eligible businesses. Get our  Services like Xero bookkeepers tweed heads.

What’s an eligible business:

  • Turnover under $50M, including NFP’s (this is new)
  • Employ staff
  • Quarterly BAS or Monthly IAS are up to date and submitted in accordance with timelines

What is the stimulus?
“employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000.” (see attached document)
“An additional payment is also being introduced in the July — October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments” (this is new)

When?
From 28 April 2020

What do you need to do?
Make sure you lodge your BAS according to the mandated timelines. If you are a self-lodger, this will need to be done by 28 April.
If you use a BAS Agent (like myself) technically you may have up to 26 May to lodge your BAS.

I recommend getting your BAS completed and lodged as quickly as possible after 31st March.
For my clients – where I am your BAS agent – I will commit to having your BAS’s complete and ready for lodgement by 24th April (if not earlier).

If you aren’t sure what your business might be eligible, give me a call and I can assist you to work that out.

Access to Credit

These are the regarding the federal government backed loan scheme.

If you are in need of a loan to support working capital, contact your bank as soon as possible to start the process.

I am not sure what the banks will require as this stage, but if you need assistance, give me or your Accountant a call and we will be happy to assist.

What’s in in for Sole Traders?
Unfortunately I am unaware of what is exactly available at this stage to support sole traders.

I will seek clarification today, that sole traders who employee staff are eligible for the Cashflow Boost described above – and I will let you know.

The government has announced that Sole Traders will be able to access Newstart – now called the Jobseeker Payment.

For more information – click here.

As mentioned above, if you need assistance with any of the above, or just want to have a chat (I’m a good listener) please don’t hesitate to call me.

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