COVID-19 updates you should know

COVID-19 updates you should know

government updates

Our world seems to be changing every day; here’s the latest COVID-19 updates.

Rental waivers and deferrals for commercial tenants

Prime Minister Scott Morrison announced some new measures for landlords and tenants this week (Tuesday 7th April). The new mandatory code will apply to tenancies where the tenant or landlord is eligible for the JobKeeper program, which means those that are in financial distress. This code was described to include “good-faith principles” where landlords must not terminate the lease or draw on a tenant’s security and likewise, tenants must honour their lease.

The PM reinforced the point that landlords and tenants should “sit down and work it out.”

More details:

  • Landlords will have to reduce leases for businesses affected by Coronavirus.
  • The reduction will have to be in proportion to the reduction in the tenant’s business.
  • Waivers of rent must account for at least 50% of the reduction in businesses.
  • Deferrals refers to rental payments that need to be paid, but can be put off.
  • Deferrals can be spread over the remaining time on a lease for no less than 24 months.
  • That means if a tenant had 3 months left on a lease, they would still have at least a year to make any deferred rent payments.
  • The PM said landlords that don’t engage with their tenant to work a rent arrangement out would be “forfeiting their rights”.

It’s clear the PM wants landlords and tenants to work together.

JobKeeper payment

Last week the government announced the JobKeeper payment. This is a wage subsidy aimed at helping employers keep paying their employees. Millions of workers across Australia will receive a fortnightly payment of $1500 through their employer. The goal is to help businesses start up quickly once this crisis is over.

The JobKeeper legislation has now gone through Parliament and it will take a few more days to receive Royal Assent – the last step in enacting the law – so please give us some time over the Easter break to review it. We encourage you to try to take some time for yourself this Easter as well.

There are more details and eligibility requirements of course. Please get in touch with us if you have any questions.

  • Employers must apply online, provide information to the ATO on all eligible employees and ensure that those employees receive at least $1500 per fortnight (before tax).
  • There is a maximum period of 6 months, from 30 March 2020.
  • Businesses (including not for profits) must prove their fall in business turnover of 30% or more.
  • Self-employed individuals will be eligible to receive the JobKeeper payment if they meet the same criteria.

More information can be found here:

Deducations for those working from home

The ATO has created a new Working From Home Shortcut to make it easier for anyone who has to work from home to claim a Tax Deduction based on hours worked from home from 1 March.

The new arrangement will allow people to claim a rate of 80 cents per hour for their running expenses, rather than needing to calculate costs for specific running expenses. The requirement to have a dedicated working from home area has been removed.

Please don’t hesitate to reach out to us if you have any questions, or check out our other COVID-19 resources below.

 

COVID-19 Resources

 

Book a discovery call with Sarah

 


PS. Whenever you’re ready, here are 3 ways we can help you eradicate financial stress in your accounting firm or professional services business – faster …

  1. Sign up to our LinkedIn newsletter, published weekly. You can sign up here: Eradicating Financial Stress

  2. Get our book “Wow – I’m in Business! Your journey from overwhelmed to organised.” It’s full of insights, solutions and downloadable resources you can implement into your business immediately. Click here for your copy: Wow … I’m in Business! – Miss Efficiency

  3. Book a time with me privately and we’ll do a deep dive into your Xero file to help you optimise for cash flow, efficiency and growth. Click here to book: Book a time with Sarah

 

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