COVID-19 Business Update – 19 June 2020
Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.
Instant Asset Write-Off Extended
Last week, it was announced that the Instant Asset Write-off has been extended for six months to 31 December 2020. Australian businesses with less than $500 million annual turnover will be able to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.
You can find more information on which assets can you claim as an immediate deduction here, or contact us so we can walk you through the different thresholds, exclusions, and limits.
The business.gov.au website has a useful tool for finding grants, funding and support programs that you might be eligible for. Check out the tool online.
COVID-19 Relief and Recovery Fund
The Australian Government has set aside $1 billion to support regions and communities disproportionately affected by the economic impacts of coronavirus. Support is extended to these industries:
- aviation and transport
- agriculture and fisheries
- the arts
You can find more details here but feel free to chat to us and we can find the right support for you.
Free Financial Counselling for regional businesses
The Government has committed $4.7 million to provide small regional businesses affected by COVID-19 with access to free financial counselling. You can learn more about the assistance for affected regions, communities and industries here.
COVID-19 Safety Guidelines
SafeWork Australia has put together useful guidelines for a range of industries. The guidelines provide clarification on WHS laws, workers’ rights, risk assessments, hygiene, emergency plans and more.
The Australian Government has recently announced the new HomeBuilder initiative, which is a time-limited, tax-free grant program to support the residential construction industry get through the pandemic. The $25,000 grant is available to eligible owner-occupiers (including first home buyers) to build a new home or substantially renovate an existing home. You will be able to apply for the HomeBuilder when your state or territory government signs the agreement. Further information will be announced in due course.
Updates on JobKeeper Payments and Declarations
JobKeeper payments will cease from 20 July for employees of a child care subsidy approved service and for sole traders operating a child care service. You can check the media release here.
Also, monthly JobKeeper declarations now need to be completed before the 14th of the month, which gives you a little more time to lodge.
What’s your Break-Even Point?
Whatever type of business you have, calculating your break-even point is important. It tells you the amount of revenue you need to generate to cover your fixed and variable expenses. If you are not a finance or math person, don’t stress! This FREE Break-even Calculator we created will make your analysis fast and easy.
If you need expert advice on the financial aspects of your business, especially on how you can become more profitable, please get in touch so we can help you plan your next big steps.
Over the last few weeks we’ve brought you updates on various government initiatives and cashflow schemes to help businesses impacted by COVID-19. We’ll keep you updated if anything changes but now we’ll shift to helping you get a plan in place for the future. Please get in touch to discuss what’s next for your business.