Covid 19 and Business Accounting and Taxation

All around the world, currently we are all going through a very tough time, because of COVID 19. Along with health, it has dramatically affected our and global economy, which is leading us to the question that shall we able to save our business or our livelihood in short time or shall we able to recover from this.

Most of the small-medium businesses were already struggling in Australia, because of high tax rates, complicated legislation of taxes, property market downturn, unprecedented bush fire etc.

Now, with COVID 19. It became a real situation of survival for individual or for businesses.

Australian Government started to introduce stimulus packages since March 2020 in step by steps to support businesses and individuals.

Cash boosting support from Govt. will allow number of businesses with employees and the benefit will be passed on businesses from May 2020 through Australian Taxation office. However, businesses will be only eligible if the entity has employees and make wages payment, even does not require to withhold PAYG withholding tax. The benefit may vary from 20k to 100k.

Job keeper is another package offered by Australian Government to support employees and minimise receiver of social benefit from Centrelink. As per this package, eligible employers will able to keep their eligible employees for at least 6 months and make a flat payment of $1500 per fortnight before tax. This offer has number of ups and downs, but most importantly about 6 million Australians are estimated to have benefit of the package.