Posts made in March, 2020

COVID19 JobKeeper Payment

Last updated 30 March 2020   COVID19 JobKeeper Payment Fact Sheet   A new economic response related to the COVID19 crisis was announced by the Australian Government on 30 March 2020. Read the Treasury media release here. This JobKeeper Payment scheme allows employees to receive a minimum of $1,500 per fortnight to remain in their jobs. The above fact sheet from the Australian Government outlines the details and eligibility for this scheme. The below guide has been adapted from other government sources.   Date From 30 March 2020 for six months For employees employed at and from 1 March 2020 First payments in first week of May 2020 Applies to Based on comparable periods: Employers <$1 bn that have experienced a downturn of more than 30% Employers >$1bn that have experienced a downturn of more than 50% A subsidy of $1,500 per fortnight per employee, administered by the ATO, will be paid to businesses that have experienced a downturn of more than 30% (50% for businesses over $1bn). To be a part of the subsidy, employers will need to ensure that their employees receive at least $1,500 per fortnight (before tax). See the example below.   Eligibility There are two levels of eligibility; for employers and employees. Eligible employers are...

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Early Access To Your Superannuation Due To COVID19

Early Access To Super Fact Sheet Due to the financial strain that COVID19 may cause some individuals, the Australian Government is allowing us to access $10,000 from our superannuation before 1 July 2020, and a further $10,000 following 1 July 2020. It is advised that you speak to a financial planner before acting on this information. To be eligible, you must meet at least one of the following conditions: You are unemployed You are eligible to receive a job seeker payments, youth allowance for job seekers, parenting payment (both single and partnered), special benefit, or farm household allowance On or after 1 January 2020: you were made redundant your working hours were reduced by 20% or more if you are a sole trader – your business was suspended or there was a reduction in your turnover of 20% or more You will not need to pay tax on this early release of super, neither will it affect your Centrelink or Veterans’ Affairs payments. Please see the above fact sheet for further details....

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COVID19 Cash Flow Boost – (PAYGW Relief for Employers)

Cash Flow Boost Government Fact Sheet   The following is for businesses with employees   Employers will now receive a minimum of $20,000 and a maximum of $100,000 from the Australian Government for their March to September 2020 BAS or IAS lodgements. The ATO will automatically credit your ATO account (which may result in a cash refund) once the relevant BAS or IAS have been lodged. The credit is calculated based on the PAYGW reported on your BAS or IAS. You will see the credit on your ATO account as a “Cash Flow Boost Payment”.   Phase 1 For employers who report PAYGW on their BAS or IAS between March and June 2020, you will now receive a credit of 100% of the PAYGW reported (up from 50%). The maximum credit has also increased to $50,000 (up from $25,000). For employers who lodge monthly IAS, the credit on your March IAS will be equal to 300% of the PAYGW reported to ensure that you are treated equally to those who lodge quarterly BAS. You will also receive a minimum credit of $10,000 on your March 2020 BAS or IAS if: – you report wages but do not report any PAYGW – you report PAYGW but it is less than $10,000 You may...

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COVID19 and Your Superannuation Investments

We recognise that we are in the midst of a humanitarian crisis that is of deep concern to all of us – both professionally and personally. We also realise that during this time of severe market volatility, you may have questions about your investments and what actions to take given the extreme uncertainty ahead. These periods of volatility can be unnerving even for the most experienced of investors. As a result of the coronavirus taking hold, coupled with other market events over the past weeks, we have been keeping up with the developing situation by having discussions with various fund managers and research houses to help us understand this rapidly developing situation and the potential ramifications to help us determine an appropriate course of action. As you can imagine we ignore headlines and tabloids and rely on credible information from a variety of respected research and information content providers we trust, such as Macquarie, Morningstar and Lonsec (to name just a few). As the coronavirus outbreak is still in its early stages, we anticipate that markets might decline further before things begin to improve. Our firm’s beliefs are underpinned by the history that investment sentiment eventually turns around, of course no one can predict when and how. Below we have...

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