As COVID-19 continues to confuse the world and create much uncertainty, Medic Financials have gathered the current information on the Stimulus Package measures for Australian doctors to help shed some light on these turbulent times.
As always, Medic Financials is a trusted source of information, strategy, and assistance for any financial concerns of those in the health and medicinal industries. Read on for an understanding of the relevant facts.
Understanding the Federal Government Stimulus Package support for businesses
Below is a snapshot of all available stimulus options and how they relate to their determined sector:
Support for businesses in the medical fields
The JobKeeper Payment Package will help boost cash flow for small and medium-sized businesses of between $20,000 and $100,000. It includes an initial payment of 100% of the PAYG-Withholding for wages paid (minimum amount of $10,000) followed by additional payments of half of the initial Boosting Cash Flow following the lodgement of June and September BAS’s.
There is also a monthly option for those eligible that will provide payments delivered automatically on the lodgement of your activity statements (BAS /IAS).
There are further opportunities and elements to consider including the increasing of instant asset write-offs, backing business investments and temporary relief for financially distressed businesses which Medic Financials can assist with in more detail. Give us a call for this information.
Individuals and Households
Supplement payments to particular classes of welfare recipients of two tax-free payments ($750 each) are now available for social security, veteran, and other income support recipients along with concession cardholders. Eligibility will extend to include the Coronavirus supplement of $550 per fortnight for the next six months.
Early release of superannuation
Eligible individuals may withdraw $10,000 if they meet specific criteria while there is also a temporary reduction on super minimum drawdown rates, most applicable for retirees.
Lending options
Some financial institutions are providing the option to defer loan repayments on both consumer and business lending, with small business customers eligible for a fast-tracked application on an unsecured loan of up to $250,000. For the first six months, interest will be deferred, and reduced variable rates, principal and interest repayments will still be required, however.
Tax options
Deferred payments for income tax, activity statements, PAYG instalments, and Fringe Benefits Tax will be approved for up to 6 months (application and approval required). If you report quarterly, you will have quicker access to any refund amounts at the start of a BAS quarter. Monthly reporting must have occurred for 12 months before you can revert to quarterly reporting.
For more tax related information including payment deferrals and monthly GST credits, speak to the team at Medic Financials who can help make the most of your tax return, ensuring you don’t miss out on assistance available for your situation.
PAYG Instalments
Quarterly PAYG instalment payers can claim a refund of instalments made in the September 2019 and December 2019 quarters. No penalties or interest will apply to varied payments for the 2019-20 financial year.
Please note these are not exemptions, but deferral measures, all tax will be required to be paid when preparing and lodging the 2020 income tax return.
Low-Interest Payment Plans
If you are experiencing difficulties, the ATO is offering low-interest payment plans as all employers must still meet any super guarantee obligations for employees.
Need a little extra help?
Medic Financials can help you navigate this difficult time to protect your wealth. We specialise in helping medical professionals in making the most informed decisions to achieve their goals, gaining the assistance relevant to their situation, assets write-off and more. Speak to us today if you require a little help and financial advice to ensure you take advantage of any stimulus options available to you.
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