BMG COVID-19 Update
Written and accurate as at: Mar 24, 2020 Current Stats & Facts
As more and more people across the country are being impacted by the coronavirus (COVID-19), we want our clients and community to know that during this difficult time, BMG is committed to providing the same level of service without interruption whilst ensuring the health of our community.
Following the Government announcements and advice regarding limitations on business operations the team at BMG will be working remotely effective from 24th March 2020 until further notice.
Our team is well versed in working remotely and we will be endeavouring to ensure our clients’ experience is as seamless as possible.
We have an amazing team who are here to support you and all team members will continue to be available via phone and email so please do not hesitate to contact us.
It is important to us that we continue to assist our clients and the community during challenging times. This will include advising on responses to government initiatives, business advice including cash flow management and personal financial advice.
FINANCIAL MARKETS
There is no doubt COVID 19 is having a significant impact on financial markets in Australia and around the world, in particular on volatility in market prices. We have been working diligently to ensure our clients have sufficient cash available to meet their present needs and ideally to see them through until the impact of the virus subsides.
The media directs our attention to daily share price movements, we have experienced volatile markets before and it is important that prudent decisions are made in light of all the information available to ensure our clients longer term financial position is protected. Some of the questions being raised include: Should I hold or sell my investments? Should I invest more now?
MLC is one of the investment managers we work with and they have built a webpage to provide information and facts to understand these conditions. MLC explain their focus on actively managing two things. One, managing risk and ensuring the diversification within their portfolios, and two, taking advantage of opportunities as they arise to deploy capital, building wealth for their clients over the longer term.
ASSISTANCE FOR BUSINESS
Businesses are experiencing unprecedented levels of disruption as a result of COVID 19. Consequently, the Government has recently announced a raft of measures.
The accounting team at BMG understand cash flow is the lifeblood of any business, we will therefore prioritise the assistance for our business clients in the preparation and lodgment of March and June quarter business activity statements to access the ‘cash flow assistance for business’ as outlined below.
COVID-19 ECONOMIC STIMULUS PACKAGE ANNOUNCED
The package has four parts:
1. Delivering support for business investment:
- increase the instant asset write off threshold from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020
- providing a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase. These measures start today and will support over 3.5 million businesses (over 99 per cent of businesses) employing more than 9.7 million employees or 3 in every 4 workers. The measures are designed to support business sticking with investment they had planned, and encouraging them to bring investment forward to support economic growth over the short term
2. Cash flow assistance for businesses:
- businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020 will be able to receive a payment from $2,000 up to $25,000. The payment will be tax free and businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.
- eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
3. Stimulus payments to households to support growth:
- provide a one-off $750 stimulus payment to pensioners, social security, veteran and other income support recipients and eligible concession card holders.
4. Assistance for severely-affected regions:
- $1 billion to support those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.
SOME LINKS YOU MIGHT FIND USEFUL
Australian Govemnment - Department of Health
Australian Government - The Treasury - Coronavirus
Australian Government - Fair Work Ombudsman - Coronavirus and Australian Workplace Laws
Above all, our clients peace of mind is paramount, we understand this and are available should you need to discuss your situation and to ensure your strategy throughout COVID-19 is sound and in your best interests.
Kind Regards,
Stephen, Natalie and Glen
