Perth Tax People

Bartering free rent for services

Bartering free rent for services reduces your businesses rent costs to nil. For this transaction to occur, and be beneficial to both parties, it needs to be a fair exchange of value, i.e. the value of the services provided must approximate the value of the rent received.

Implementation process:

1. Calculate the space required to operate your business.

2. Consider what services you could provide a potential landlord in exchange for free rent.

3. Advertise your offer on a bartering website.

4. Get any bartering agreement in writing.

Call Perth Tax People on 1300 751 700.

Temporary Early Release of Superannuation

The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Individuals will not need to pay tax on amounts released, and the money they withdraw will not affect Centrelink or Veteran’s Affairs payments.

For the early release of superannuation, one of the following conditions of release must be satisfied:

1. The individual is unemployed.

2. The individual is eligible to receive the Jobseeker Payment, Youth Allowance for jobseekers, Parenting Payment, Special Benefit or Farm Household Allowance.

3. On or after 1st January 2020:
- The individual was made redundant; or
- The individual’s working hours were reduced by at least 20%; or
- If the individual is a sole trader – their business was suspended, or there was a reduction in the business’s turnover of at least 20%.

The ATO processes the early release of superannuation through the individual’s myGov website.

Feel free to contact Perth Tax People on 1300 751 700 for info regarding the early release of your Superannuation.

If you are a sole trader without employees (amid COVID-19 outbreak):

The increased instant asset write-off

Under normal circumstances, individual assets less than $30,000 are eligible for the instant asset write off. The Government has lifted this threshold to $150,000 for assets that are either installed or ready for first use by 30 June 2020.

Backing Business Investment (BBI)

A time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.

Increased and accelerated income support

The Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months.

Assistance for affected regions, communities and industries

The Government has created an initial $1 billion support fund to provide assistance to industries and regions severely affected by the economic impacts of Coronavirus.
Read more about the assistance for affected regions, communities and industries.

SME Guarantee Scheme

This will provide businesses with funding to meet immediate cash flow needs, by further enhancing lenders’ willingness and ability to provide credit. Businesses with a turnover of up to $50 million will be eligible to receive these loans.

Early access to superannuation

You can access up to $10,000 of your superannuation in 2019-20 and a further $10,000 in 2020-21. You will be able to apply for early release of your superannuation from mid-April 2020.

Tax support

The Australian Tax Office (ATO) is providing relief for some tax obligations for businesses affected by the outbreak, on a case-by-case basis.