The stimulus and support packages help, but there are gaps and they will not return most adversely impacted businesses or people back to their pre-pandemic position. It will all take time.
It's important to understand the timing of the each of the measures as many are not immediate. You also need to understand who is eligible and how. We are here to help you as much as we can to ensure that you have the right information and can make informed decisions.
There are a few peculiarities with the support measures and incentives, and they will not apply equally across the community.
When it comes to the cash flow boost of up to $100,000 for business for example, sole traders and partners in a partnership are dealt with differently to those operating a business through a company or trust. While the cash flow boost measure can potentially apply to salary and wages paid to staff, amounts allocated or paid to sole traders or partners cannot really be taken into account.
When business owners are operating through a company or trust structure the outcome of the incentives can be significantly different depending on how the funds are being taken from the business. The cash flow boost measure doesn't take into account dividends or trust distributions paid to business owners, but can take into account salary, wages or directors fees paid to the same individuals. There are also integrity rules preventing artificial or contrived arrangements from being used to access the cash flow boost.
Relatively new business entities that have not lodged any tax returns or activity statements by 12 March 2020 might miss out unless the Commissioner grants discretion around the timing requirements.
Also, with the $1,500 wage subsidy, employees eligible for the subsidy had to be employed by the business claiming the subsidy as at 1 March 2020. Some will miss out.
It can be confusing and frustrating but we will help you work through it and ensure that you are able to access the support that is available to you.
Contact Collins Hume on 02 6686 3000 about any questions you have about the stimulus measures. Also watch our website for further COVID-19 updates.
Please don't act on the basis of this guide. The measures will apply differently and it's important that you understand how your specific circumstances are impacted.