CIA Tax & Coronavirus – Office Changes & Client Advice (16-03-2020)
During the past week we had implemented a no handshake
policy and for the next few weeks we are implementing a no in-house meetings
policy (unless critical / essential) Instead we will use every other method of
communication from Email, Phone Conferences, Skype, Zoom, WhatsApp, Facebook
Messenger (or whatever digital meeting forum you use).
The office remains open for those who would like to
drop or send non digitised documents. There is also a large mail slot at bottom
of door for outside business hours.
This is a short term pain for a greater good. Whatever we
think of the virus, or the media frenzy around it, the reality is to slow the
growth of its spread which is to ease the burden on our medical services who
tend to the lesser health resilient amongst us whether that is coronavirus or
any other medical condition. Social and professional isolation is a key to
playing our part in slowing the virus down, CIA tax are proud to play its small
part.
Thank you for your understanding, any issues always discuss
with our senior partners and we will find a way to work something through.
Government Assistances
Some industries will do it tough (think anything travel,
events, restaurants) and treasury has responded quickly with a targeted stimulus package that has four major parts. Yet, let us remain positive as other industries will also increase
(think anything health, food chain or toilet paper suppliers).
For those industries who will struggle the good
news is as follows:
- Keeping
Australians in jobs with $6.7 billion in cashflow assistance for
small and medium businesses (up to $25,000 – reduction in tax to pay for
their employees)
- Supporting
households with a $750 payment to pensioners, veterans, people
on Newstart and other income support recipients
- Backing
business investment with a limited-time investment incentive worth
$3.2 billion (instant write off on assets up to $150,000 for business
with turnover under half a Billion!)
- Helping
affected sectors with a $1 billion fund for communities
reliant on the tourism and education industries
In addition to the above, the Australian
Taxation Office will offer relief on a case-by-case basis to significantly
affected taxpayers (everyone!) including through deferring tax payments by up
to four months. In coming months expect more global relief / stimulus’s. Far
from doom and gloom.
Download all the details here:
https://treasury.gov.au/coronavirus
Additionally CIA tax have fact sheets for all of the above measures reply to
this email.
CIA tax are here to assist, don’t hesitate – reach out,
we can help.
Tips for business (and for effected employees)
Be Pro-active and work together is the key: Flight Centre is
a great example of acting fast. At the start of this crisis (and sadly for all
in the travel industry it will get worse) they enacted immediate changes to
preserve employment until 30 June 2020.
Example Only – the Flight Centre changes
- Travel Freeze: There is now a
freeze on all Flight Centre employee travel including family with the only
exception being business-critical
- Conferences: All Flight Centre
conferences will be cancelled from 16 March 2020 until further notice
- Annual leave: All eligible
Flight Centre employees have been asked to book and take a minimum of
1-week annual leave between now and 30 June 2020
- Long Service Leave: Anyone at Flight
Centre with long service due is asked to consider taking it through this
period
- Unpaid leave: Optional unpaid
leave is available to all Flight Centre employees
- Purchase of additional
leave: For
all Flight Centre staff without any leave owing, there is the option to
purchase an additional 10 days leave
- Reduction of (FTE)
Full-time employment: All Flight Centre staff have been offered the
opportunity to reduce their FTE by 1 day per week or fortnight until the
30 June 2020. Staff can work a 4-day a week rather than 5-day with their
salary reflective of this change
The Flight Centre changes concluded by saying: “We
greatly appreciate your support and understanding. If everyone can contribute
in a small way it will make a big difference. We have been through similar
events in the past and have always emerged bigger, better and stronger”.
It’s a wonderful example that we can all review parts of if
we need to apply anything to our own businesses.
The key to any slow down in the economy (it may not be long
lasting, or significant) is to keep communicating with the team, your advisors,
the tax office, banks, your customers and suppliers, everyone.
CIA tax are here to assist, don’t hesitate – reach out,
we can help.
From an occupational health response stay up to date and
follow the advice of the government health recommendations and your HR
advisors. In particular do not ignore government directions as we’d doubt any
public indemnity policy (or any insurance) would cover your risk in doing so.
Investments and Retirement
It is also a worrying time for people with investments and
retirement funds – this again is a time to reach out and talk to your advisors.
CIA tax are here to assist, don’t hesitate – reach out,
we can help.
In all likelihood and like all other things in the recent
past this will soon pass. Let us pause to think on the past two decades with
all the market crashes, disasters, health scares, downturns, upturns, whatever
– we’ve shown a fair bit of resilience!
In closing
From a mental health perspective now is the time to stop
being glued to the media frenzy. Be informed, make some sensible changes and
look out for others who are less fortunate and carry on. Daffodils are planted
in Autumn, pass through a Winter and beautifully blossom in Spring. Use these
interruptions to plant the next blossom.
CIA tax are here to listen, don’t hesitate – reach out,
we can help.
The symptoms of coronavirus include:
- Fever
- Cough
- Shortness of breath; and
- Breathing difficulties
If you suspect you or a family member has coronavirus you
should call (not visit) your GP or ring the national Coronavirus Health
Information Hotline on 1800 020 080.
