Stimulus Package 1

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Stimulus Package 1

Carmen Lawson • March 17, 2020

Government Stimulus Package 1 Announcement

Hey all,

Just thought I’d give a quick update on the happenings in this crazy world.

Firstly, when looking at your share holdings, its ok to cry. I do every day. That’s about all the advice that I can legally give you on this at this point in time.

Secondly, we have decided to instigate a work from home policy here. This is not because I watched any sort of ‘Pandemic’ movie at all, or because I don’t want anyone’s germs. I just decided that because we can we should. Possibly limiting the spread of the virus. Also so I don’t have to get out of my pj’s . Please be aware that it is still working as normal. My staff are covered with strict confidentiality legislation together with today’s technology this was an easy task for us to undertake. You can still contact all staff via the normal office phone number (07) 4613 1833 and appointments will be limited to telephone appointments at this stage. I still have a small number of staff at the office, so you can still drop off and pick up information if need be. However we ask that you please call ahead.

I have also summarised below the current governments stimulus package based on what I know. I understand there may be more come out and I will let you know when I know.

1. $25,000 PAYG Withholding Credit – this is a payment that will be applied as a credit to your business activity statement account with the ATO. This applies to all our clients that employ staff. The maximum that you will receive as a credit is $25,000 and the minimum is $2,000 (even if you don’t withhold). This is calculated as 50% of the PAYG Withholding that you have reported on BAS’s for the six months between 1st January and 30th June 2020. This payment is tax free. This one is actually pretty good of the gov’t.

2. 50% wages grant for Apprentices and Trainees – this payment is 50% of the gross wages paid to apprentices for the 9 months period between 1st January and 30th September 2020. You have to apply for this one and you can’t apply for it until the 2nd April 2020. Let us know if you need help with this one (applications are not available yet though).

3. $150,000 immediate asset write off before 30th June 2020 – WOW!! – this one is quite big, however can have a bit of a cash flow impact for your business. Keep in mind that if you intend to purchase any equipment before the end of June and you intend to finance this equipment, the deduction will be in the 2020 tax year, however your repayments will run over the next 3-5 years and repayments are not tax deductible (only interest on the repayments are). Talk to us if you intend to utilize this, just so you are fully aware of the taxation and cash flow implications.

4. 50% accelerated deprecation – After the 30th June 2020 or if your asset purchase is higher than $150k, the ATO will allow you to claim a 50% initial year depreciation amount. This is pretty good too for any equipment purchase (an increase from the current 15% depreciation rate).

5. There are also some assistance to businesses who may be struggling to pay their ATO debts. There could be interest and penalty remissions available and the ATO may put into place low interest payment plans (although they haven’t suggested how low this interest rate will be yet). AT this stage we highly suggest keeping ATO lodgements up to date, so you know your obligations early and can implement measures to assist in cashflow during this time. Most of my clients BAS’s for December Qtr are not due for payment until the 28th May, however keeping in mind that the March Qtr is also due on the 28th May (so 6 months of BAS’s due on the same day). My preference is not to utilize payment plans with the ATO, but if you are in need you can work with the ATO to get any debts under control. If you have trouble with this please let us know.

Anyway, this is definitely a weird time in the business world.

Work hard and keep washing your hands!

Carmen Lawson B.Com CPA C.Dec

*Disclaimer - All information posted in this update is true and correct at the time of posting. Legislation surrounding this situation is constantly changing. We will provide additional updates as required upon further government announcements or legislation changes. *

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ASIC Annual Company Requirements

By Daniel Foelz • March 4, 2025

Every company registered in Australia must meet annual compliance obligations set by the Australian Securities and Investments Commission (ASIC). One of the key requirements is the annual statement, which ASIC issues to companies shortly after their annual review date - typically the anniversary of their registration. What is an ASIC Annual Statement? Shortly after a company’s annual review date, ASIC sends out an annual statement. This document includes: • Company’s Current Details: A summary of the company’s information as recorded by ASIC. • Annual Review Fee Invoice : An invoice detailing the fee required to maintain the company’s registration. • Corporate Key: A unique identifier that allows secure access to ASIC’s online services for updating company information. Companies must carefully review this document to ensure their information is correct and take action to maintain their registration. Annual Obligations for Companies To remain compliant and avoid penalties, companies must complete the following steps each year: 1. Pay the Annual Review Fee ASIC requires companies to pay a yearly fee to maintain their registration. The amount varies depending on the type of company (e.g. Private Company or SMSF Trustee Company). Payments must be made by the due date to avoid late fees and possible deregistration. These fees are included within our invoice issued to you. 2. Verify and Update Company Details Companies should check their annual statement to confirm that all details - such as registered office address, directors, and shareholders are accurate. If any changes are needed, they must be updated with ASIC by contacting our office. 3. Pass a Solvency Resolution Within two months of the annual review date, company directors are required to pass a solvency resolution. This resolution confirms that the directors have reasonable grounds to believe the company can pay its debts as they become due. While the resolution doesn’t need to be lodged with ASIC, it must be documented and kept with the company’s records. Consequences of Non-Compliance Failing to meet ASIC’s annual requirements can result in penalties, late fees, and even company deregistration. It is crucial for companies to adhere to these obligations to maintain their good standing and ensure uninterrupted operation. What Happens If You Don’t Receive Your Annual Statement? If the annual statement isn’t received within a week of the review date, companies should contact ASIC to avoid compliance issues and potential penalties. Deregistration Considerations If a company is no longer operating, it may apply for voluntary deregistration to avoid ongoing fees and obligations. Contact our office to discuss. Stay Compliant to Avoid Penalties By staying on top of annual reviews and ensuring all obligations are met on time, companies can remain in good standing and avoid unnecessary complications. For comprehensive information on annual statements and company obligations, refer to ASIC official website or contact our office.