The team at Mazzcorp Partners have developed this summary to help manage your cash flow during this period.
1. Instant Asset Write off of up to $150,000 per assets 2. Temporary early release of Superannuation monies - $10,000 prior to June 30, 2020, and then another $10,000 for the June 30, 2021 year, to a total of $20,000 over 2 years.
3. Accelerated depreciation deductions – to be included in the preparation of the June 30, 2020 tax returns. 4. The first phase of boosting cash flow for employers – this will be incorporated in the preparation of the 3rd and 4th Q BAS 2020. 5. The second phase of boosting cash flow for employers – this will commence from the 21/07/2020 most likely on lodgement of the 4th Q BAS 2020 due by the 25/08/2020 6. Contact your bank to discuss the options and action plan regarding a moratorium on loan repayments for up to 6 months. 7. Outline a staff Management Plan to deal with the impacts of Covid-19 on the business. 8. Prepare a continuity plan to deal with the impact of Covid-19.
9. Stopping your mortgage payments.
What you need to ask your bank
Landlords will be starting to consider their options if tenants claim for hardship and have a rental payment break or reduce repayments. This will have a direct flow through to investors and may trigger landlords to seek assistance from their bank during this time.
The good news is (yes, I said good news – crazy right) there are lifelines in place to assist landlords during this time. If you are going to speak with your lender about applying for a payment holiday or financial hardship here are some questions you need to ask;
Are the repayments deferred and added to the loan amount (known as capitalising the interest) thus resulting in a larger loan amount after the period?
How will that impact your repayments after the period?
Will this impact your credit rating or your ability to secure another loan in years to come?
What triggers the loan payment holiday, loss or reduction of income from a job or a tenant not paying rent?
What evidence is needed to be provided?
If you are thinking you may need to take these measures in the next few months it could be worth speaking to your lender or broker sooner rather than later to understand what is available to you and ensure you are keeping appropriate records if the evidence is required to be provided.
Book a call with Anthony.