Weekly Digest – 3 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.

JobKeeper Key Dates.

The ATO recently extended the deadline for monthly declarations required for JobKeeper claims. The business monthly declaration needs to be done between the 1st and the 14th of the month which gives those who are eligible more time to lodge. To be reimbursed for JobKeeper payments in May you need to complete your declaration by 14 June.

To keep yourself posted on any further changes, the ATO’s website has a list of key dates relevant to JobKeeper which you might find handy. Not-for-profits and charities can also find some JobKeeper information here.

If you are wondering which schemes apply to you and your business, get in touch with us and we can arrange a chat.

$10,000 Small Business Grant – update

The NSW Government has extended the date for applications for the $10,000 Small Business Grant to 30 June 2020.

The main points to consider if you are eligible for the grant is to be able to substantiate a 75% decline in turnover compared to a similar two week period in 2019 as a result of COVID-19. For further information on eligibility and how to apply go to this link.  For further assistance regarding this grant contact one of our team who are here to help.

JobMaker Programme

The PM has announced a temporary programme dubbed HomeBuilder which will provide grants to individuals who earnt up to $125,000 last financial year or couples who earnt up to $200,000.  The grants of $25,000 will be offered to eligible owner-occupiers who want to build a new home or substantially renovate an existing one.  It is hoped it will stimulate a tradie-led recovery to help spark the economy as we emerge from the effects of COVID-19.

Points to consider before applying:-

  • Are you an individual (not trust or company)
  • Australian Citizen
  • Over 18 years old
  • Earnt $125,000 or less in 2018-19 financial year for individuals or $200,000 or less for couples.
  • Are you an owner-occupier (no investments)
  • Enter building contract prior to December 31 2020
  • Build new home as principal place of residence valued up to $750,000 (including land)
  • Renovate your home (valued less than $1.5 million) at a cost between $150,000 and $750,000

If you are not sure if you can apply for this grant please give us a call.

Surviving Cash Flow Problems

Are you struggling with cash flow right now? You are not alone. The COVID-19 crisis has had a huge impact on businesses across the country, but we’ve got a couple of tried-and-tested ways to relieve cash flow pressure. Don’t stick your head in the sand – we can help.

Here are some options that might be suitable for your business:

  • Borrow money – Businesses can access funding to meet their cash flow needs through the Coronavirus SME Guarantee Scheme, which will guarantee up to $40 billion of new lending. Under this scheme, the Government will guarantee 50% of new loans issued by eligible lenders. Temporary cash flow boosts amounting to $20,000 to $100,000 are also provided by the Government to eligible small- and medium-sized businesses as well as not-for-profit organisations by lodging their activity statements up to the month of September. In addition to lending options and financial support, most states are offering business grants which could be worthwhile for you to investigate. Chat with us to find out the best way forward for your business.
  • Restructure expenses and commitments – In this economic downturn, restructuring expenses and financial obligations has become necessary for many businesses. The Government is working with financial institutions to implement programs aimed at providing temporary relief to debtors affected by COVID-19. Don’t know where to start? Get in touch so we can help you work out your existing debt with your banks and creditors to improve your cash flow.
  • Sell more – With the global crisis brought by the pandemic, increasing your sales seems like a far-fetched idea. However, with the right guidance from our expert business advisors, we can help you explore new sales opportunities, expand your reach, and refine your marketing and sales strategies.

Tax Planning

The end of 2020 Financial Tax Year is fast approaching on 30 June but there is still time to consider some planning to minimize your tax exposure.  This is where the Cadenze team’s expertise comes into play, by assessing your financial position and ensuring you are not missing out on some vital savings you could be making with regard to your 2020 tax return.   Remember adjustments can only be made prior to the 30 June 2020.  If you feel you could benefit from our advice give us a call before it is too late.