TMM 112 Aus Federal Gov Economic Stimulus Package

TMM 112 Aus Federal Gov Economic Stimulus Package with Greg Valles.

What you need to know to get ready and how the importance of knowing your numbers is vital to ride through the storm of an international crisis.

THE FIRST LOOK AT HOW THIS CAN SUPPORT YOU AND YOUR BUSINESS MARCH 2020 WITH GREG VALLES

As the new economic stimulus package comes into play in Australia, here are some basic tips to ensure you can review your numbers and understand where the package can help you, your staff and your business during uncertain times.

An economic stimulus package is not just a handout. It's there to create sustainable success for our economy for the long term. And that means stepping up as a leader to make any plan around this robust, well thought out and with good intent.

Check your accountant/ financial advisor is across this

Ensure who ever is giving you tax advice is also well across the ins and outs of the stimulus package. Or, at least affiliated with and can collaborate with a firm and expert who is.

Get your numbers together - Make a plan around these 7 points:

1. Cash Flow Scenarios to Mitigate a Crisis
2. Starting out with Budgets and Cash Flow Forecasts
3. Forecasting Unpredictable Cash Flow
4. Scenario Planning for your Business
5. KPIs to Monitor your Cash Position
6. Automate your Reports
7. How to do a Cash Flow Analysis

Get Advise on Preparing The Submissions

Ensure you stay true to your business and understand the cashflow yourself. What core areas of your business are vital and non-negotiable. How can you leverage these to carry you through and what areas of the business can perhaps be a plan B.

Look at your "line items" for revenue and costs.

Consider a round table discussions with your senior team, advisors or core staff as to the now, then and next. Be proactive.

Lean in to your trusted partners, friends and those in your industry. Don't be afraid to be the pioneer in this area too and ask questions to your local government even if no one else has as yet.

Acknowledge and Respect Relationships

Throughout all of this it is imperative we acknowledge and respect relationships, our interactions with our staff, families and trusted clients and suppliers.

This is not simply about transactions - but ensuring a deep and calm centred approach to business and supporting each other for the long term. Not taking short cuts.

STIMULUS PACKAGE DETAILS

For basis of summarising the Economic Stimulus Package Valles Accountants have provided the following top line points and links.

The government has announced certain measures to combat the economic headwinds resulting from the coronavirus outbreak. The measures that have been announced are as follows:

Cash flow assistance for businesses

1. The Boosting Cash Flow for Employers measure will provide up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses. Provided to businesses with a turnover of less than $50 million that employ staff. Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days. The payment will be tax free.
2. The Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020.

Stimulus payments to households

1. The Government will provide a one-off $750 payment to social security, veteran and other income support recipients and eligible concession card holders. Around half of those that will benefit are pensioners. There will be one payment per eligible recipient. For example, if a person qualifies for the one-off payment in multiple ways, they will only receive one payment. The payment will be tax free and will not count as income for Social Security, Farm Household Allowance and Veteran payments.

Support for business investment

1. From today, the Government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.

1. Accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.

At this point in time the details are all contained in media releases with the government planning to introduce a package of bills into parliament in the final Autumn sitting week in March (23/03/2020 – 26/03/2020).

Further details can be found in the following releases:

https://treasury.gov.au/coronavirus

https://treasury.gov.au/sites/default/files/2020-03/Overview-Economic_Response_to_the_Coronavirus.pdf

https://www.pm.gov.au/media/economic-stimulus-package

If you are listening to this and reading outside of Australia then we recommend you go to your country government websites and tax official websites for relevant updates and information.

Please connect if you are in need of support, have a question or are feeling overwhelmed. There is always an avenue of help and the most important step is putting your hand up and asking.

Yours in health and wisdom,

Thank you to Greg Valles for his time again and thanks to our listeners for your patience with the audio quality for these 2 (111 and 112) we had to make do with the resources at hand.

With gratitude for tuning in, reading and we do hope this helps,

Nikki