TO ALL CLIENTS
Dear Client
In light of the recent developments around the Coronavirus (or COVID-19) and the uncertainty we are all facing day to day, we felt it important to email you to assure you that we expect no major interruptions to the services that we provide to you.
OUR CLOUD SYSTEMS MEAN YOU CAN ALWAYS CONTACT US IF YOU NEED US
While we don’t know if we’ll be working from our office or working from our homes in coming weeks, we have invested heavily in the latest technology in recent years, and this means we can keep assisting you no matter what may happen.
All members of our team are able to work remotely and have access to all the technology systems and tools they use daily to assist their clients.
Please keep emailing or phoning us – Accountants and admin – when you need us, and we will be here to help you!
GOOD ADVICE IS NEEDED NOW MORE THAN EVER
If you have any general queries, requests for bookings for meetings or requests for documents, please feel free to contact Driana Dennis on 07 5596 4604 & driana.dennis@theafirm.com
Business and Tax
The Australian Government has just released their $17.6 billion economic stimulus package in response to the Coronavirus. It is designed to help employers to keep their workforce levels. There are key tax benefits that business owners need to access over the next few months. Our expert Accountants are here to help business owners receive the maximum benefits they can.
For any questions you may have about accounting, tax or business matters, please feel free to contact Driana Dennis on 07 5596 4604 & driana.dennis@theafirm.com
Wealth Advice
The share markets have crashed due to fear and uncertainty in the marketplace. As has always happened before, when this crisis is over the markets will quickly pick up again. Keeping a long-term focus and not panicking now is the key to success.
For any questions you may have about wealth and investment matters, please feel free to contact Annette Bedford on 07 5596 4604 annette.bedford@theafirm.com
IMPORTANT – GET YOUR ENDURING POWER OF ATTORNEY (EPOA) AND WILL UPDATED NOW
If you have to self-quarantine or are admitted to hospital, if you don’t have an EPOA then no-one else can make important business or financial decisions on your behalf.
We strongly recommend that you have an up to date EPOA and Will, and that your family know where these are stored. Call your own lawyer to discuss. If you don’t have a lawyer call us and we can refer you to one we use.
NEXT STEPS
These are times when we need to stay calm and rely on reliable news sources and information from State and Australian Government websites. What you see on social media may be panicky and unreliable information – stay away from this!
Our team at The A Firm are here to help you. Please reply to this email or phone us on 07 5596 4604 if you need any assistance!
TO BUSINESS OWNERS
Possible Action Required: Assistance for your business to cope with the Coronavirus effects
Dear Client,
Here is a 2-minute email with some insights to help you during this difficult time with the Coronavirus (or COVID-19) affecting all of us.
As a business owner, you need to face the possibility of team members being absent from your workplace, product supply issues and demand for your services and products reducing over the short term.
There are 3 urgent things you need to be aware of:
1. Government Stimulus Package – Our Tax Planning meeting with you this year will be VITAL and needs urgency to take advantage of this Government offer
2. Business Continuity Planning
3. Get your Will and EPOA updated / set up NOW
4. GOVERNMENT STIMULUS PACKAGE – OUR TAX PLANNING MEETING WITH YOU THIS YEAR WILL BE VITAL and needs urgency to take advantage of this Government offer!
The Australian Government has just released a $17.6 billion economic stimulus package. The package has been marketed as a measure to protect the economy by maintaining confidence, supporting investment and keeping people in their jobs.
The key tax and stimulus measures include:
Business Investment
- From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $500 million) to $150,000 until 30 June 2020. Note, purchases before 12 March 2020 are not eligible.
- A time-limited 15-month investment incentive (through to 30 June 2021) which will operate to accelerate certain depreciation deductions. This measure will also be available to businesses with a turnover of less than $500 million, which will be able to immediately deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost. As announced, this measure is proposed to only apply to new depreciating assets first used, or installed ready for use, by 30 June 2021 and purchased from 12 March 2020.
Cashflow Assistance
- Tax-free “payments” of up to $25,000 for eligible small and medium businesses (i.e., with a turnover of less than $50 million that employ staff) based on their PAYG withholding obligations. This is not a cash payment, but it is a credit equal to 50% of the PAYG amounts withheld from salary and wages paid to employees.
- Based on PAYGWH amounts from salaries and wages. Is it time to pay yourself a salary? Remember there may be disadvantages to do so including superannuation paid on salaries and cashflow of paying extra PAYGWH for yourself.
Businesses that lodge activity statements on a quarterly basis will be eligible to receive the credit for the quarters ending March 2020 and June 2020. Business that lodge on a monthly basis will be eligible for the credit for the March 2020, April 2020, May 2020 and June 2020 lodgements.
If a business pays salary and wages to employees but is not required to withhold any tax, then a minimum payment of $2,000 will still be made. The minimum $2,000 payment will be applied to the first activity statement lodgement.
- Wage subsidies to support the retention of apprentices and trainees – Employers with less than 20 full-time employees may be entitled to apply for Government funded wage subsidies amounting to 50% of an apprentice’s or trainee’s wage for up to nine months from 1 January 2020 to 30 September 2020. The maximum subsidy for each apprentice/trainee is $21,000.
Individual Assistance
- Tax-free payments of $750 to social security, veteran and other income support recipients and eligible concession card holders. It is estimated that around half of those who will benefit will be pensioners. These payments will commence to be automatically made from 31 March 2020.
When we have our 2020 Tax Planning meeting with you over the next few weeks, we will assist you with opportunities to restructure how you pay yourself to that you can receive the maximum cashflow assistance amounts from the Government.
Contact us TODAY if you would like to meet with us earlier to ensure you receive your maximum cashflow assistance from the Government.
- BUSINESS CONTINUITY PLANNING
As a business owner, now is the time to plan for employees being away from your workplace, shortages of supply, reduction in sales, and the possibility of your workplace being closed for a short period of time if every is being forced to self-quarantine.
Over the next few weeks, we would like to meet with you via a phone consultation or have a Zoom Meeting to discuss the following:
- Employees working from home, and workplace obligations
- How do pay your bills in the short term if your sales start to dry up
- How to communicate in a reassuring way with your clients and customers
- How to keep things moving with your business
We’re not suggesting in any way that we have all the answers, but it is important for us to work with you and help you and plan for what will happen in the weeks and months ahead.
Contact us TODAY to book in a 30-minute Zoom online meeting, or phone appointment so we can discuss your business situation and make plans to assist you.
- GET YOUR WILL AND EPOA UPDATED / SET UP NOW
If you have to self-quarantine or are admitted to hospital, if you don’t have an EPOA then no-one else can make important business or financial decisions on your behalf.
As a business owner, it is 100% essential that you have an up to date EPOA and Will, and that your family know where these are stored. Discuss this with your lawyer. If you don’t have a lawyer we can refer you to the one we use.
NEXT STEPS
These are times when we need to stay calm and rely on reliable news sources and information from State and Australian Government websites. What you see on social media may be panicky and unreliable information – stay away from this!
Our team at The A Firm are here to help you. Please reply to this email or phone us on 07 5596 4604 if you need any assistance!
For more future updates on our firm (such as our Redland Bay office relocation), ATO changes and more, please subscribe to our Quarterly Newsletter https://theafirm.com.au/about-us/newsletter/
Kindest Regards,
The A Firm Team
Liability Limited by a Scheme approved under Professional Standards Legislation
We are trialing the four day work week and our office will be closed Fridays going forward. If your query is urgent please call our number and leave a voicemail. Our voicemails will be checked at 10:30am and 2:30pm, every Friday and urgent queries will be attended to.