Financial planning not only involves finding tax-effective strategies for running or managing your finances but also involves how you plan to sell investments, exit a business or make your savings last to enjoy a secure and comfortable retirement. It is never too early to start planning for your retirement, however, working out how much you will need to retire on can be complicated. At Peter Radford Tax, accounting and tax agents, we help clients set up and put their retirement plans into action.
As part of the second $66 billion support package in response to COVID-19 and its negative effects on the Australian economy, the Federal Government has expanded tax-free cash payments to small and medium businesses with a minimum payment of $20,000 and maximum of $100,000, up from the previous $2000 to $25,000 range.
However, it is important to note that payments are only given to eligible businesses after they lodge their BAS (business activity statements) by the 28 July and 28 October 2020 due dates.
The new enhanced scheme will be delivered in two phases:
Employers are set to receive a first payment equal to 100% of their salary and wages withheld (a maximum of $50,000) when lodging their activity statements at quarterly due dates.
An additional payment equal to the first payment made after businesses lodge their BAS by 28 July and 28 October 2020.
Businesses will receive payments based on their BAS lodgement schedules. For example, a business that receives a payment for the period up until June 2020 will receive the same amount for the period up until September 2020 upon the lodgement of their BAS in two separate occasions.
For monthly BAS lodgers, businesses will receive their first payment for the March 2020, April 2020, May 2020 and June 2020 lodgements, with a 300% calculation in the March activity statement to provide the same treatment as quarterly lodgers. Similarly, the second payment businesses which lodge their BAS monthly will be released once they lodge their June 2020, July 2020, August 2020 and September 2020 lodgements.
To remain eligible to receive the new government funding for small to medium-sized businesses, remember to lodge your BAS on time as per your usual schedule. There are several options you can consider to lodge your BAS:
Lodge online through your myGov Business Portal
Lodge through your tax or BAS agent (who can access your myGov)
Lodge as “Nil BAS” if you have nothing report for the period online or through phone
