We understand the financial pressure that many of our members and studio owners have been experiencing and we want to be able to give you a little guidance as we've done some of the investigating on what's out there to assist you.
Please note that all of this information is subject to eligibility so please contact the ATO or your own financial advisor ie. accountant, bookkeeper who will be able to assist you further.
RESOURCES FOR INDIVIDUALS.
https://treasury.gov.au/coronavirus/households
RESOURCES FOR BUSINESSES.
https://treasury.gov.au/coronavirus/businesses
FOR BUSINESSES
Those government incentive packages apply to ALL small businesses regardless of business structures (sole trader, partnership, private company or not-for-profit entities), as long as the turnover threshold and PAYG payment history meet criteria.
"Boosting Cash Flow for Employers".
From IPA website - summarised key points (all criteria related to FY2020 or specially indicated):
Eligibility:
- $50k cash benefit: turnover under $50M & actively employing workers on or prior to 12 Mar 2020 (sole trader without employee are excluded)
- Additional $50k cash benefit: turnover under $50M & continue actively employing workers until 30 Sep 2020 (sole trader without employee are excluded)
- Unsure: any company has owner director as the only employee.
Cash Benefits:
- Minimum $10k for each business, even if your PAYG withholding tax is nil since 01 Jan 2020;
- Maximum $50k if you have paid more than $50k PAYG withholding tax since 01 Jan 2020;
- Additional 50% wages paid to employees from 01 Apr to 30 Sep 2020 for quarterly BAS lodgers but up to $50k; or, additional 50% wages paid to employees from 01 Jun to 30 Sep 2020 for monthly IAS lodgers but up to $50k;
Payment method:
- Auto calculated and processed by ATO, no manual application is required;
- Credit into tax account first to offset outstanding tax debts; any excess money will be refunded to business' bank account.
Pay time:
- First min $10k to max $50k will be credited into ATO tax account when lodging Mar BAS and Jun BAS (or monthly Mar/Apr/May/Jun IAS) as below time frame:
- Additional max $50k will be credited into ATO tax account when lodging Jun BAS and Sep BAS (or monthly Jun/Jul/Aug/Sep IAS) as below time frame:
If this information is too hard to understand, please just remember that if you have one employee on or prior to 12 Mar 2020 you will receive min $10k cash benefits; if you keep employing workers until 30 Sep 2020 you will receive 50% wages back (up to $50k), And all those will be auto calculated and processed; you don't need to do anything.
Many small businesses have contractors rather than employees, are they eligible? ATO is working on this question and will release more detailed guidance at the end of March.
- Be gracious, be kind and be generous
- talk to your landlords about rental payment reprieve
- look at your finances and;
- cancel what you can
- stop payments on anything that isn't necessary at the moment
- Look at State/Federal government relief
- Talk to your lender about small business loans
- re mortgaging/re financing options
- Investigate interest free option loans through support systems
- look at staff on payroll; could they go to half pay?
- ask clients to pay the same amount as they were in the studio (this keeps everything consistent and you might find they are more than happy to do this)
- Be mindful about giving your content or time for free