q4 financial | COVID-19 Stimulus Update
We know many of you will be studying the events and updates of COVID-19 very closely. All of us remain uncertain about how the coming weeks will unfold and what the exact implications are for each individual business.
For many of us with employees, it is a time of uncertainty as we look to support them as much as possible. Whilst there will no doubt be effects as our understanding of the situation and Government’s response unfolds; we can focus, where possible, to take the steps necessary for business continuity.
The team at q4 financial remain committed to helping each of you understand how the various packages can assist your business in the coming months.
By now you should have all registered your interest in the Queensland Government loan package. If not here is the link. Do it now! We appreciate that loans do not necessarily fix the problem but it may be a short term solution to ease some financial stress.
Our summary of the Second Federal Government Stimulus Package can be found here.
As your next Business Activity Statement is about to fall due you should expect to receive some of this support by the end of next month.
Today the Queensland Government announced a new $4 billion dollar package. This package will overhaul the State Government’s original plan to simply defer payroll tax requirements. Instead, two months’ worth of payroll tax will be immediately refunded to businesses and the next three months’ worth of payroll tax will be waived. We will share more on this and other government announcements as they are made and as details become clear.
We do understand these measures will not be of great comfort if your revenue or forward orders have fallen significantly. Many of you will be thinking, how am I going to pay everyone in the next few months. The Chamber of Commerce and Industry Queensland have issued a good guide to Standing Down team members, which will be helpful information to understand should the need arise for you to take that course of action.
It is an unsettling time for employees, with many of your team likely to be concerned about their future income. Given this, we would encourage everyone with employees to discuss your business position with them and keep them up to date as much as possible. They know you will be hurting as well, so open, factual communication is the best way forward at this point in time. There is support should you, or any of your team, be required to apply for Government assistance via Centrelink as well. Below is some information for this process.
- If you have registered for Jobseeker/Newstart support before, it’s as simple as logging back into your account via the Centrelink Express Plus APP, or online, and follow the steps to make a claim.
- If you have not ever registered for Newstart/Jobseeker before you have one very important step you need to take first
- You need to either go into a Centrelink office or call 132850 to get a CRN (Customer Reference Number) and a user profile set up. You cannot make any progress until you get this number.
- After they issue you with a CRN, you will need to confirm your identity, which they have stated you will be directed on how to do this online and you can upload all the details.
- After you have done these two things, then you will then be able to link your Centrelink CRN to your MyGov account and then proceed to make your claim for support.
- The normal 12 week waiting period has been waived. Information provided by Centrelink has outlined that payments will be coming through as early as two to three weeks.
- The amount has now been doubled to be a total of $1,100 per fortnight.
- Information can also be found here: https://www.servicesaustralia.gov.au/individuals/services/centrelink/jobseeker-payment/how-claim
Many of us also have loans with one of the ‘big four’ banks. Below is a link to each of those that may help you understand how they propose to assist their customers.
All of the ‘big four’ banks have announced that they are going to be allowing people to take ‘Home Loan Holidays’ or ‘Loan Pauses’ for up to six months. This does have an impact on the amount of interest you will be accruing, but it potentially buys everyone time to get through the impacts of this unprecedented event.
We understand these banks are setting up systems to help people through this time, head to their website and you will find various information to assist.
- NAB: https://www.nab.com.au/personal/customer-support/covid19-help
- CBA: https://www.commbank.com.au/latest/coronavirus/faqs.html#financialsupport
- ANZ: https://www.anz.com.au/personal/home-loans/your-loan/covid-19/
- WESTPAC: https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/aw/media/westpac-covid-care-package.pdf
Should you be overwhelmed by the information online, we recommend giving them a call, however be prepared for wait time though given the current situation.
There are changes and updates happening every day. We will continue to stay across these and help you wherever we can. Stay strong and healthy.
Grant Titman and Kelly Hill
A CPA and Director of q4 financial, Grant Titman brings leadership and the disciplined energy of an endurance runner to deliver ‘big picture’ outcomes for his firm and his clients.
Grant’s expertise includes and extends well beyond achieving profitability and growth for his clients’ businesses. His focus is squarely on helping his clients to achieve three key goals: extract wealth from their business; set and achieve long-term wealth objectives; and ultimately, enjoy financial freedom.