Your Financial Guide Newsletter

31 March 2020

Your Financial Guide April Newsletter

Hello and let’s hope April 2020 is the start of our lives and work improving……and things will improve. It’s hard to find the words to describe the last 4 weeks. I just wish everyone is healthy and coping with the stress.

Many of our family, friends and
clients are hurting financially and the emotional anxiety is high. We have
some great articles on how to find normality in these
difficult times. 

We have also included links
to financial assistance for small businesses as well as individuals (note
these may change and there will be more in the future)
.

INVESTMENT AND MARKET UPDATE
 

  • Blue chip diversified Australian and Global share
    prices will recover over time.
  • Credit spreads (of high yield bond and fixed income
    markets) were at serious risk a week or so ago but appears to have
    liquidity after a USD $2t injection.
  • Global Government stimulus is being announced weekly to
    help support and rebuild economies.
  • China’s commercial and social system is now getting
    back to normal post COVID 19 and so will other countries, over time.
  • Australia is expected to experience a recession.
    Proportionate government stimulous, we hope will bring a recovery sooner
    than later. Remember equity markets are always forward looking,
    sharemarket prices fall and recover in ahead of these measurable periods.

I have included a link to a
video of Warren Buffett on long term investing. 

https://www.youtube.com/watch?v=JvEas_zZ4fM&feature=emb_rel_pause

Over the next 2 weeks we will
intend to talk to all our clients and discuss their individual portfolios and
what we are doing to find opportunities with the recovery.

The advisers at
Kelly Wealth are happy to help individuals decipher these rules, give us a call
if you need help.

GOVERNMENT ASSISTANCE FOR SMALL
BUSINESS 

Job
keeper

This package will provide a flat minimum payment of $1,500 per employee per
fortnight over the next 6 months to businesses affected by coronavirus
COVID-19.

Practical
features

  • Employers will receive $1,500 per employee per
    fortnight, irrespective of what the employee’s earning are
  • For employees who earn less than $1,500 in a particular
    fortnight, the employer will need to top up to $1,500
  • Employers must notify eligible employees that they are
    receiving the JobKeeper Payment
  • Employees with multiple jobs can only benefit from one
    JobKeeper Payment
  • Employees are subject to PAYG tax on their earnings
    including the component supported by the JobKeeper Payment
  • Superannuation guarantee obligations will continue
    except that it won’t apply to any top-up for those employees who were
    earning less than $1,500 per fortnight

Employee
eligibility
 

Full-time, part-time employees
and casuals who have been with their employers for at least 12 months are all
eligible for this payment. This is subject to them being at least 16 years of
age. It will also be available New Zealanders in Australia on 444 Visas.


Only currently engaged employees, including those stood down,
qualify for the payment. If employees have been retrenched, they would need to
be reinstated to qualify for the benefit.


For most employers, Single Touch Payroll data will enable the
ATO to pre-populate employee details.

Sole-traders without employees
that meet the turnover tests will also be eligible.

Business
eligibility subject to “required turnover decline”


Businesses with turnover of up to $1 billion that have seen
their revenue drop by 30% and businesses with a turnover of more than $1
billion that have seen their revenue drop by 50%, due to coronavirus are
eligible to register with the ATO for the JobKeeper subsidy.

The turnover decline will require that turnover of the current period be
compared with a comparable period of the previous year (of at least
one-month duration).


Not-for-Profit organisations (including charities) also qualify.
However, financial institutions that are subject to the Major Bank Levy will
not be eligible.


The package commences from today and applies to employees
registered with their employer from 1 March 2020. The first payment will be
made via the ATO from 1 May and will be backdated to today (30 March 2020). 

How
does this work with Jobseeker?

The Prime Minister and Treasurer were clear that people can either access the
Jobseeker payment or the Jobkeeper payment, not both. It was also flagged that
the partner income threshold for people looking to access the Jobseeker payment
will be lifted to nearly $80k ($79,762), allowing more people to access support
in the future.

SMALL BUSINSESS EMPLOYEE GUIDE
 

The spread of the novel
coronavirus (COVID-19) will be the dominating news topic of 2020 so far. The
Australian Government on the advice of health officials have implemented a
range of changes to ordinary life in order to try to slow the outbreak of
COVID-19 and stay ahead of the curve. 

It is therefore important for
employers to now adequately to respond as COVID-19 continues to develop both in
Australia and globally.


To assist I have included a link to an CCIQ information booklet in a way to
address the key safety and employment issues, outlining the base position and
then additional questions that may arise. Click here

SMALL BUSINESS GOVERNMENT LOAN
 

The criteria to access the
Queensland Government loan up to $250,000 was released this morning. To be
eligible, you must:

  • Have one or more full-time employee in Queensland.
  • Have operated a business since 1 July 2017.
  • Have suffered a loss of income as a result of Covid-19.
  • Be a sole trader, partnership, trust, private or public
    company.

Further details:

  • Loan terms is 10 years.
  • Repayment and interest free for the first year.
  • Interest will apply only from the second year at 2.5%.
  • Payments will be interest-only for years 2 and 3.
  • Loans up to $100,000 will require no loan security.

Loans over $100,000 and up to
$250,000 to be secured by a General Security Agreement.


To apply, go to The Queensland Rural and Industry Development
Authority application page at: https://lnkd.in/fRyd5kz

BUSINESS TAX INCENTIVES AND BANK
LENDING EXTENSIONS
 

GOVERNMENT
ASSISTANCE FOR INDIVIDUALS AND SOLE TRADERS IMPACTED BY THE COVDID 19
RESTRICTIONS – “Jobseeker”
 

To apply for government
assistance i have included the steps below on how;

Jobseeker:
(note you can’t be paid under both JobKeeper and Job seeker)

Step 1 ; Apply for a My Gov
account. mygov sign in https://my.gov.au/mygov

Step 2; Register for Job seeker
from. MYGOV register https://my.gov.au/EnrolService/register.jsp?login=true&Return=/

Step 3, Complete the
application; I have included some information to help you (and accessing
super).

https://www.kellywealth.com.au/2020/03/26/centrelink-information-covid19/

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