The COVID-19 (Coronavirus) is starting to take control of the world and the shocks that are coming are going to affect every Australian household.
AAG are reviewing the financial impacts for clients of all shapes and sizes. We are assisting everyone from our clients who are on Centrelink benefits or the Aged Pension through to clients who have large businesses employing hundreds of staff. The banks are now also providing up to 6 months loan repayment relief too for affected clients. So, please contact us if you want some help with how to handle your financial affairs.
The announcements by the Federal Government on Sun 22 March, and the economic stimulus package announced on the same day will affect everyone. With the closure of restaurants, cafes and bars from Monday 23 March, and then the ongoing effect that this will have on businesses and employees of those businesses, this could be just the beginning.
The Prime Minister announced that the closure of places for gathering is likely to go on for 6 months, as a way of containing the virus.
There have been a variety of economic stimulus packages announced since 12 March 2020 and cover a number of areas, including:
- Freeze on home loan payments by various banks
- One-off payments to those who are receiving Centrelink, Family Tax Benefit and other income and assets tested payments
- Early Access to Superannuation in certain circumstances of up to $10,000 to this year 30 June 2020 and to next year, 30 June 2021
- Grants made by the Australian Government paid to business owners via the ATO to assist with the payment of wages
- Funds available for employees to assist with the payment of apprentice’s wages to 30 September 2020
- Immediate write off of assets up to $150,000 for business owners to encourage them to invest in equipment
- Loans available for small business owners up to $250,000, to assist with working capital, and is 50% guaranteed by the Federal Government
- Grants paid by various State Governments for employers who are registered for Payroll Tax
- Payroll tax exemptions or concessions for various businesses, which all depends on the State Government
- Reduced minimum pension drawdowns for clients with superannuation balances to help not drawing down super in declining markets.
The measures will be delivered by the various Governments in a variety of ways, but most are related to Centrelink, the ATO and various State Revenue Offices. Superannuation Funds will be given authority to consider issues on a case by case basis, including SMSFs.
It is extremely important that you make sure that any of your lodgements with the Governments are up to date, as this is what they are assessing you on. If you are with Centrelink, make sure you are up to date. If you are a business, make sure your ATO and State Revenue lodgements are up to date. This will give you the best chance of gaining the Government funds available.
There is a lot to take in, so please click on our summaries on the impacts for our clients in the following areas:
A number of the measures cross over between the Federal Government, State Government, Superannuation Funds, banks and other institutions.
If you are unsure of what you are able to do, or if you are concerned about your financial position, please ensure that you contact us so that we can assist you. We have assisted clients through many crises, and are here to assist you.
If you would like to read the economic stimulus various packages, please find them here:
For more detail on what the current state of play is, please find them here:
During this time, we are suspending in-person face to face meetings, but will be able to communicate via phone, video conference and email while we combat this virus pandemic together.