Covid-19 Gov Cash Flow Assistance for Business
As you may be aware, the Federal Government has announced measures to assist with the current disruption to businesses that has been caused by the COVID-19.
As a result, you may be eligible for temporary support by way of receiving a credit on your ATO activity statements for the two quarters ended 30 June 2020 or 4 months ended 30 June 2020.
Please note that any eligible assistance is not a cash payment but rather a reduction in the amount that you will need to pay on the abovementioned activity statements.
The attached is a fact sheet for further information. If you require more information we suggest talking to your accountant to see what is available for you.
If you are concerned about meeting ATO obligations, and also other financial obligations like rent, wages or other overheads, now is the time to be looking at different measures to help reduce the impact of this situation. You can make payment arrangements with the ATO. If rent is a big issue for you (as it is for most of us) you might need to contact your landlord to see if there is any chance of a reduction or help to spread your payments out a bit thinner untill things get back to a more normal footing. If you have loans maybe it is time to talk to your lender about a rate reduction or a payment holiday.
And sadly, if this continues for 6 - 12 months, take a good solid look at your business and determine if holding out is the best option for you. We are facing very challenging times, and like Covid-19, survival might not be a given. It would be good to think that AP, or the Government will save us all, but that might be an ill-conceived notion considering how many people are now expecting a helping hand through this. It may happen, but our recommendation is that no one should rely on that being the way out of this.