Tax Concessions: In Australia, the government makes every effort to ensure that small businesses are not burdened by any difficulties that arise in the region. Last year, when Covid-19 affected the lives of individuals as well as SMEs, the Australian government came forward to address the problems and provide multiple reliefs and support schemes.
Outsourced accountant experts say that the Federal Government declared its first support in March 2020 of measures to react to the current financial difficulties standing up to the Australian economy because of the proceeds with the spread of the COVID-19.
This was trailed by a subsequent relief declared on 22 March 2020 which brought the all-out help by the Government to AUD189 billion at that stage. A week later, a further AUD130 billion JobKeeper relief was declared on 30 March 2020.
The main point of these measures is supporting organizations and businesses to continue to work as best and however long. They can thus when this emergency passes to help keep Australians in positions. From a tax viewpoint, this remembers huge concessions for capital investment for the type of improved tax benefits. For depreciable resources and cash flow help to practically all businesses.
The financial improvement packages declared by the Prime Minister and Treasurer to date have various parts including:
- Cash flow helps SMEs and not-for-profits (NFPs) to help them stay in business and retain their workers
- Directed help for the most seriously influenced areas and networks;
- Measures to help the progression of credit, for example, a Government assurance of 50% to SMEs by short-term unsecured loans
- Support for financially unstable business and help for chiefs from any personal responsibility for trading while indebted
- Backing for people and families as improvement installments and pay support. Transitory measures to permit early access to superannuation and decreasing the superannuation least drawdown rates.
- JobKeeper payments to help organizations keep staff utilized;
- helping business capital investment through improved tax concessions
To help companies retain their employees and keep them employed, the Australian government launched the Jobkeeper payment measure. The government decided to give $1500 per eligible employee. This included every type of business and non-profit business too.
With the underlying period of the JobKeeper program finishing up in September 2020. The Government reported on 21 July 2020 a second stage which expands the program for another half year through to March 2021.
Firms took the help of an outsourcing bookkeeping agency to file for their eligibility for job keeper payments. After successfully receiving the payments, the bookkeepers also helped the firm in saving time by lodging their tax returns.
Tax concessions for capital investment
Expanding the asset write-off by extending the current depreciating asset write-off with the goal that it gives a quick tax allowance to the expense of a devaluing resource. If it’s fresh or second-hand, which has an expense of under AUD150,000 (up from the current AUD30,000 limit). This is an impermanent extension and was initially declared to apply to qualified devaluing assets that are first utilized.
Cash flow assistance to SMEs and NFPs
SMEs and NFPs are qualified to get brief cash-flow support. “Boosting Cash Flow for Employers measure”- with an automatic or credit applied at any rate AUD20,000. And up to AUD100,000 for those organizations which have collected turnover of under AUD50 million and that have workers.
The relief provided by ATO administration
Numerous ATO managerial support is accessible to help businesses encountering financial trouble because of the COVID-19 episode. Choices that are possibly accessible to help affected organizations included:
- Giving permits to firms on a quarterly reporting cycle to choose GST reporting monthly so that they can have faster access to net GST refunds to which they are entitled to.
- Permitting firms to change PAYG installment amounts (even zero). Firms that modify their PAYG installment will also be able to challenge a return for any previous installments done in the same financial year.
- Dispatching any interest and punishments, caused on or after 23 January 2020, that have been implemented to tax liabilities.
These tax concessions and support offered by the government helped these small business owners to some extent. And working with organizations facing difficulties to assist them to pay their current and continuous tax liabilities by permitting them to go into low-interest installment plans. This was a top priority of the government.