Mercia | Taxation, Business & Finance Advisers

As the world grapples with the COVID-19 situation unfolding, I wanted to let you know that the team at Mercia are committed to helping our clients through what will likely be difficult and challenging times ahead.

Below is a summary of stimulus measures released so far:

1. PAYG Refund in your BAS up to maximum of $100,000 calculated automatically by the ATO:
   1. Stage 1 Payment – March quarter – 100% of the PAYG amount withheld, up to a maximum of $50,000. Eligible employers that pay salary and wages will receive a minimum (tax-free) payment of $10,000, even if they are not required to withhold PAYG tax. Monthly lodgers will be eligible to receive three times the actual amount withheld.
   2. Stage 2 payment – For employers that continue to be active, an additional (tax-free) payment will be available in respect of the June to October 2020 period, basically as follows:
      1. Quarterly lodgers will be eligible to receive the additional payment for the quarters ending June 2020 and September 2020, with each payment being equal to 50% of their total initial (or Stage 1) payment (up to a maximum of $50,000).
      2. Monthly lodgers will be eligible to receive the additional payment for the June 2020, July 2020, August 2020 and September 2020 activity statement lodgements, with each additional payment being equal to a quarter of their total initial (or Stage 1) payment (up to a maximum of $50,000). Stage 2 payment June & Sep quarter – Quarterly lodgers will be eligible to receive the additional payment for the quarters ending June 2020 and September 2020, with each payment being equal to 50% of their total initial (or Stage 1) payment (up to a maximum of $50,000).
   3. The ATO will automatically calculate and pay the additional (tax-free) payment as a credit to an employer upon the lodgement of their activity statements from July 2020, with any resulting refund being paid to the employer
2. Payroll tax – Businesses paying payroll tax, with a payroll between $1 million and $4 million will receive a one-off grant of $17,500, and certain businesses can apply for a deferral of their 2019-20 payroll tax payment
3. Trainee grant – 40% of wage from 1.1.20 to 30.9.20 to a maximum of $21k per employee
4. Instant asset write off $150k to 30 June 2020
5. Accelerated depreciation 50% upfront deduction and balance depreciated up to June 2021.
6. 6 months payment relief on any BAS.
7. Vary PAYG instalments In March quarter to Nil and get refunds for Dec 2019 and Sep 2019 PAYG with no penalties for the 2019-20 year.
8. Remitting any interest and penalties after 23 Jan 2020.
9. Finance:
   1. To enhance the ability for SMEs to obtain loans from lending institutions, a 50 per cent Government guarantee will be provided to SMEs for new unsecured loans to be used for working capital.
   2. A 6 month loan repayment holiday to be provided. Contact your bank or Dan at Mercia Finance on 0414 423 340.
10. Super retirees – Pension minimum payments reduced by 50% for 2020. Currently minimum drawdown is 4$-14% of pension balance, 65-95 and over.
11. $550 increase to individual job seeker payments, contact us for more. Deeming rates on financial investments to reduce from 3 to 2.25% (higher deeming rate) and 1 to 0.25% (lower deeming rate).
12. Early access to super on compassionate grounds extended for COVID-19 consequences.  For example, unemployment.
13. $750 for any welfare recipients e.g. part a and b on 31 March, second $750 payment on 13 July

For the full detailed version Click the link here.

We are now working securely from home, which we have previously trialed with success.  All staff have secure login access to work, so working from home for us is not a problem.  Our work telephone messages go to our emails so we are able to get your voicemail within minutes of you leaving a message.

If you do need to drop anything off to the office during this time, please just call or email ahead to ensure we will be there to open the office.
 
So it’s business as usual for the team at Mercia Taxation and Accounting,  or as close as it can be given the circumstances.
 
If you have questions please do not hesitate to email or call any one of us.
 
Regards
 
Richard