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‘Self-employed, small firms’ can learn tips to keep afloat

SHARING his tax secrets with self-employed people and small business owners, Chan & Naylor partner and Certified Public Accountant Peter Ristevski says there are opportunities to make the most of the challenges arising from the bushfire induced slowdown and current pandemic.

He said the initial stimulus package was geared towards a series of tax breaks designed to boost investment, keep money circulating in the economy and reduce tax, with the Federal Government announcing a six-month extension of JobKeeper last week.
“The instant asset write-off threshold has been increased from $30,000 to $150,000 until December 31, 2020,” Mr Ristevski said.
“The instant asset write-off allows businesses to buy large items of capital equipment for their business and to obtain an immediate tax deduction.
“These include cars, utes and delivery vans; computer equipment, including laptops, tablets and printers; premises fit-out, including office furniture, works of art and TVs; solar systems for business premises; and plant, equipment and tools.”
The Government will make tax-free payments of up to $100,000 to small and medium-sized businesses, with a minimum payment of $20,000 for eligible businesses by lodging their activity statements up to the month or quarter of September 2020; the payment is intended to provide cashflow support to businesses that employ staff.
Eligible businesses will automatically receive a payment equal to 50 per cent of their PAYG withheld, delivered as a credit in their BAS for the June 2020 quarter.
The ATO has also announced a series of concessions.
1. Deferring the payment of tax amounts by up to four months.
2. Allowing businesses on a quarterly reporting cycle to opt into monthly GST reporting to get quicker access to any GST refunds.
3. Allowing affected businesses to vary PAYG instalment amounts to zero for the April 2020 quarter. Businesses that vary their PAYG instalment to zero, can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
4. Remitting any interest and penalties, incurred by affected businesses on or after January 23, 2020, that have been applied to tax liabilities.
5. Allowing affected businesses to enter into low-interest payment plans for their existing and ongoing tax liabilities.
“Come talk to us to help you navigate the various stimulus packages for small business to keep you afloat,” Mr Ristevski added.
For more info, call 9299 7000 or email peterr@chan-naylor.com.au.

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