Building a Bridge COVID-19 - Response in Practice - we care about your future - Practice Assist
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we care about your future
Building a Bridge
COVID-19
Response in Practice
brentnalls-sa.com.au
Chartered Accountants & Advisors
Who we are: Shali Manolev Danny Haydon Partner Principal – Health Division BAppSc Bcomm GraDip(ICAA) DipFS Ba AppSc(OT) MHtlhSer Mgt FAAPM (FP) FCA dh@brentnalls.com.au ssm@brentnalls.com.au Phone 0438 580319 Phone 0402 307 904
Disclaimer This document is for general information only and is not intended to give advice as it was prepared without taking into account the objectives, financial circumstances or needs of you or any particular person. Before acting on anything contained in this document, you should consider the appropriateness to your situation and you should seek advice based on your individual circumstances. Brentnalls SA | ABN 74 705 292 014 255 Port Road, Hindmarsh SA 5007
Where are we now?
Federal Federal Job Keeper
Economic Economic “Job Keeper” legislation
Stimulus 1 Stimulus 2 Stimulus 3 passed
12 Mar. 22 Mar. 30 Mar. 8 Apr.
20 Mar. 16 Mar. 7 Apr. 20 Apr.
Aus Banking WA Stimulus Commercial Job Keeper
Association Package Lease Code Applications
support of Conduct Open
This presentation current to Wednesday, 29th April 2020.
Information Sources Treasury Website with detailed Fact Sheets https://treasury.gov.au/coronavirus ATO COVID-19 information page https://www.ato.gov.au/General/COVID-19/COVID-19-frequently- asked-questions/ ATO Job Keeper https://www.ato.gov.au/general/JobKeeper-payment/ ABC News website https://www.abc.net.au/news/
Federal Government Economic Response Targets SUPPORTING SUPPORT FOR SUPPORTING THE FLOW INDIVIDUALS & BUSINESSES OF CREDIT HOUSEHOLDS
Support for Businesses Source: https://treasury.gov.au/coronavirus/business
Boosting Cash Flow for Employers • Subsidises wage costs for PAYG tax component • Receipt is Tax-Free • But still get a deduction for 100% of wages • 2 x groups of payments (boosts) are available. • Boost Minimum: $10,000 • Boost Maximum: $50,000
Boosting Cash Flow for Employers
• Eligibility:
• ABN Holder at 12 March 2020
• Had business income in 2019 tax return, or Activity
Statement before 12 March 2020
• Pay at least $1 wages during the boost period
Boosting Cash Flow for Employers BOOST 1 • Based on PAYGW from January 2020 – June 2020 • As reported on monthly/quarterly Activity Statements BOOST 2 • Same amount as Boost 1 total, split over 4 months (monthly) or 2 quarters (quarterly)
Boosting Cash Flow for Employers
Boost 1
Withholding Eligible Period Boost 1 Amount Lodgement
Cycle Due Date
Quarterly Qtr 3 (Jan, Feb, Mar PAYGW per March BAS* 28 April 2020
2020)
Qtr 4 (Apr, May, Jun PAYGW per June BAS 28 July 2020
2020)
Monthly March 2020 PAYGW per March IAS (x 3)* 21 April 2020
April 2020 PAYGW for April IAS 21 May 2020
May 2020 PAYGW for May IAS 22 June 2020
June 2020 PAYGW for June IAS 21 July 2020
*First Boost Payment will be at least the Minimum of $10,000
Boost Amounts will continue to be paid until Maximum of $50,000 exhaustedBoosting Cash Flow for Employers
Boost 2
Withholding Eligible Period Boost 1 Amount Lodgement
Cycle Due Date
Quarterly Qtr 4 (Apr, May, Jun 50% of Boost 1 Total 28 July 2020
2020)*
Qtr 1 (Jul, Aug, Sep 50% of Boost 1 Total 28 Oct 2020
2020)
Monthly June 2020* 25% of Boost 1 Total 21 July 2020
July 2020 25% of Boost 1 Total 21 Aug 2020
August 2020 25% of Boost 1 Total 21 Sept 2020
September 2020 25% of Boost 1 Total 21 Oct 2020
*Note overlap in Boost 1 & 2 for June 2020 periodBoosting Cash Flow for Employers
EXAMPLE A:
• Monthly PAYG Withholder
• PAYGW per month is $15,008
Period Boost 1 Calculation Period Boost 2 Calculation
Amount Amount
March 2020 $45,024 $15,008 * 3 June 2020* $12,500 $50,000 / 4
April 2020 $4,976 ($50,000 - $45,024) July 2020 $12,500
May 2020 - Maximum August 2020 $12,500
Exhausted September $12,500
June 2020 - 2020
Total $50,000 Total $50,000Boosting Cash Flow for Employers
EXAMPLE B:
• Quarterly PAYG Withholder
• PAYGW per quarter is $1500
Period Boost 1 Calculation
Amount
March 2020 $10,000 $500 is less than $10,000 minimum
June 2020 - ($1500 + $1500) is still less than $10k
Total $10,000
Period Boost 2 Calculation
Amount
June 2020* $5,000 Total Boost 1 $10,000 / 2
September 2020 $5,000
Total $10,000Boosting Cash Flow for Employers INTEGRITY MEASURES: • ATO have advised will need to pay back the Boost if carried out a “scheme” to: • Become entitled where you otherwise wouldn’t; or • Increase the amount of the boosts • ATO investigating any sudden changes to characterization of payments, and large increases • Assume the ATO will review and audit • Single Touch Payroll data available to analyse patterns and behaviour
Boosting Cash Flow for Employers HOW RECEIVED: • Credited to your ‘Integrated Client Account’ (a.k.a. Activity Statement Account) with the ATO • Reduce payment due on Relevant Activity Statement (wont use to offset prior debt) • If Refund, ATO will transfer funds within 14 days of lodgement
Increasing the Instant Asset
Write-off
• Instant asset write off threshold increased from
$30,000 to $150,000 until 30 June 2020
• Annual turnover less than $500M
• Benefit in 2020 tax return
• Example:
Cost Claim Yr1 Claim Yr2 Claim Yr3
Previous (SBE $50,000 $7,500 $12,750 $8,925
Pools)
Instant Asset $50,000 $50,000 - -
W/off
Note: if Asset later sold, all proceeds will be taxableIncreasing the Instant Asset Write-off ELIGIBILITY: • New & Second Hand Assets • Limit is $150,000 per Asset (allows multiple claims) • Between 12 March and 30 June 2020 – first used or installed ready for use • Motor Vehicles subject to Depreciation Limit: $57,581
50% Accelerated Depreciation
• Applies from 12 March 2020 to 30 June 2021
• Immediate deduction on 50% of Cost of Asset
• Balance depreciated per usual rules
• Benefit in 2020 or 2021 tax return
• Example:
Cost Claim Yr1 Claim Yr2 Claim Yr3
Previous (SBE $50,000 $7,500 $12,750 $8,925
Pools)
Accelerated $50,000 $25,000 $6,375 $4,462
+
$3,75050% Accelerated Depreciation ELIGIBILITY: • NEW Assets only • Use where Instant Asset w/off doesn’t apply – i.e. cost over $150k, or acquired post 30/6/2020 • Not available for assets with specific depreciation arrangements – certain farm assets, capital works, water facilities, etc • Asset must be ordered after 12 March 2020 (anti- avoidance measures will apply)
WA Stimulus
WA Stimulus • Household fees and charges frozen until next financial year • one-off $2,500 credit against electricity invoices for small to medium businesses that consume less than 50 megawatt hours annually • Eligible Small businesses with payroll between $1m and $4m will receive a $17,500 grant • Waive payroll tax from 1 March to 30 June 2020 for small to medium size businesses (wages under $7.5 million) • Bring forward payroll tax relief (increase of threshold to $1,000,000) from 1 July 2020 • Payments made to employees under Jobkeeper scheme will be exempt from payroll tax • Waive rental payments for small business and NFP’s in State Owned Buildings for 6 months • Land tax relief for landlords who offer rent relief for a minimum of 3 months and freeze outgoings to small business’s who have suffered a 30% reduction in turnover due to COVID 19
ATO Assistance
ATO Assistance Payment deferrals • Payments due before 23 Jan 2020 • Income Tax, BAS • Not able to be deferred • Can request remission of interest charged from 23 Jan • Payments due after 23 Jan 2020 • May be deferred • Interest remitted • Existing Payment Arrangements • Can be re-negotiated
ATO Assistance PAYG Variations • Apply to vary June 2020 PAYG Instalments • Upon lodging June, can apply for Sept & Dec 2019 & March 2020 PAYG Instalments to be refunded (if not done on March Instalment) • Penalties will not apply where PAYG Instalment variations do not reflect final tax position GST Cycle • If normally receive GST refunds, consider changing cycle from quarterly to monthly
JobKeeper Payments • $130B Scheme designed to help businesses retain their employees • $1,500 per fortnight per eligible employee payment to eligible businesses for 6 months (April – Sep) • Employers must enrol to be part of scheme (optional) • Initial and ongoing reporting requirements
1. On 1 March 2020 carried on business or not for Profit
in Australia
2. Employed at least one eligible employee on 1 March
2020
3. Eligible employees currently employed in fortnights
you claim for (can be stood down or re-hired)
4. Business faced 30% fall in turnover (for aggregated
turnover of $1bn of less)
(other categories of turnover also applicable)Turnover Test
To be initially eligible,
compare GST Turnover:
30% or more reduction in
Turnover Test (Aggregated •March 2020 v March 2019
“GST Turnover” from same
income < $1B) •Projected April 2020 v April 2019
quarter/month last year •Projected Apr-Jun Qtr 2020 v Apr-Jun
Qtr 2019
If not immediately eligible,
Cash or Accruals if report GST can apply at later date and
Choice of test period
on Cash basis enter scheme (but not back
paid)JobKeeper
MEET THE TEST ONCE DO NOT NEED TO KEEP ONGOING MONTHLY
TESTING TURNOVER IN REPORTING
FOLLOWING MONTHS REQUIREMENTS
Once you’re in – you’re in (no need to re-test)
Tolerance (in good faith) where business expects 30% reduction, but
actual reduction is lessJobKeeper Payments Alternative Tests Now Released If quarter/month last year not an appropriate comparison period due to: 1. New business 2. Acquired or disposed part of business 3. Restructure 4. Significant growth (50% 12 months, 25% 6 months, 12.5% 3 months) 5. Drought or natural disaster 6. Large irregular variance in turnover (non cyclical / seasonal) 7. Sole trader / small partnership – sickness, injury or leave impacted turnover ATO are allowing alternative comparison periods and calculations
Eligible Employees at 1 March 2020 Full Time Employees Part Time Employees Casual if employed > 12 months “regular & systemic basis” Employees who have been stood down since 1 March 2020 Must be age 16 years or older – 16 & 17 y/o full time students excluded Must be Aus citizen, permanent Visa or Special Category Visa Not receiving government parental leave or Dad / partner pay Not receiving workers compensation payments
JobKeeper Payments
ONE IN ALL IN! MUST NOMINATE ALL BEFORE ENROLMENT: 1 EMPLOYER PER
ELIGIBLE EMPLOYEES JOBKEEPER EMPLOYEE EMPLOYEE
NOMINATION NOTICE
EMPLOYEE MUST
AGREE TO BE
NOMINATEDSole trader or eligible business
participant
Many business owners
Self-Employed
do not pay themselves a
Businesses
wage
Businesses can nominate Need to be active
one “owner” to receive participant in the
the payment business
Need to provide a
declaration as to recent
business activity of the
nominated “owner”Enrol for JobKeeper
Login to Business Portal using myGovID or Tax /
BAS agent can enrol on your behalf
Eligibility information
Complete JobKeeper Expected number of eligible
employees
enrolment form & provide
Contact & bank details
For businesses eligible in April, enrol ASAP – open
until end of May if need more timeJobKeeper Payment Process
Employee normally earns over $1,500 per fortnight:
paid usual wage as per existing arrangements
Employee normally earns less than $1,500 per f/n:
paid $1,500 as a minimum
Employee not working: paid $1,500 as a minimumJobKeeper Payments
First applicable fortnightly pay period 30th March – 12th
April 2020
Need to pay employees minimum $1,500 per fortnight
in this period
If pay weekly or monthly, need to pay equivalent
Will be able to make “top up” payments to employees
for first two fortnights so long as paid by 8 MayWhen will I be reimbursed?
Payment date Amount per employee
May $3,000 (for fortnights starting 30 March and 13 April)
June $3,000 (for fortnights starting 27 April and 11 May)
July $3,000 (for fortnights starting 25 May and 8 June)
August $3,000 (for fortnights starting 22 June and 6 July)
$4,500 (for fortnights starting 20 July, 3 August and
September
17 August)
$3,000 (for fortnights starting 31 August and
October
14 September)Tax Consequences Assessable Income to business (no GST) Wages paid to employees deductible expense $1500 is pre tax (gross) & subject to PAYG withholding WA has legislated to exempt ‘top up’ from Payroll Tax Super guarantee not required on ‘top up’ Annual & long service leave still accrues
ATO Reporting
Identify each eligible employee you will Business monthly declaration:
claim jobKeeper payment for Monthly
STP enabled software with Job Keeper functionality reconfirm eligible employees, notify any changes
(MYOB, Xero, Quickbooks etc) – reports to ATO Current & projected GST turnover to track progress
required information if setup correctly
No STP enabled software with JobKeeper
functionality – report to ATO via business portalSupporting the Flow of Credit
Source: https://treasury.gov.au/coronavirus/business-
investmentCoronavirus SME Guarantee
Scheme
GOVERNMENT WILL MAXIMUM $250,000 UNSECURED AVAILABLE FOR NEW LOANS
GUARANTEE 50% OF NEW MADE BY PARTICIPATING
LOANS ISSUED BY ELIGIBLE LENDERS UNTIL 30
LENDERS TO SME’S SEPTEMBER 2020
STILL REQUIRED TO GO 3-YEAR TERM, WITH FIRST 6
THROUGH USUAL LOAN MONTHS REPAYMENT
APPLICATION PROCESS HOLIDAYAustralian Banking Association
Announcement 20 Fees & Charges may be Banks more open to Can apply to home
March 2020 waived during 6-month debt restructures mortgage as well as
period business debt
Be mindful any variation
to loan terms may
impact credit ratingCommercial Leases
Commercial Leases National Mandatory Code of Conduct - applies where tenant is part of JobKeeper 1. Moratorium on evictions for non-payment of rent 2. Tenants committed to terms of the lease 3. Proportional rent reduction based on reduction in tenant revenue 4. Rent reduction in form of deferrals and waivers – waivers must account for at least 50% of reduction 5. Rent deferred to be paid over at least 2 years
Pathology Rent
Pathology companies are requesting blanket reductions of
rent up to 30-50%
Request validation of their claimed level of reduced
referrals
Check your clinical software to prove the level of
reduction.
Refer back to Code of ConductQuestions?
General Practice Measures
MBS Telehealth of GPs Staged roll out Initially – Covid-19 “at risk”, now all Australians “Temporary” until 30 September Bulk billing required for pensioners, health care card holders, Under 16 and vulnerable patients at risk of Covid-19
MBS Telehealth of GPs Vulnerable patients at risk • required to self-isolate or self-quarantine in accordance with guidance issued by the Australian Health Protection Principal Committee in relation to COVID-19 • is at least 70 years old • if the person identifies as being of Aboriginal or Torres Strait Islander descent—is at least 50 years old • is pregnant • is the parent of a child aged under 12 months • is being treated for a chronic health condition • is immune compromised • meets the current national triage protocol criteria for suspected COVID-19 infection
MBS Telehealth of GPs
MBS Telehealth of GPs Bulk Billing Incentive values doubled Item Benefit Temporary 10990 (metro) $6.35 $12.75 10991 (rural) $9.65 $19.30 Vulnerable – not eligible for bulk bill rebate 10981 (metro) $12.75 10982 (rural) $19.30
MBS Telehealth of GPs PIP Quality Improvement • Keep open incentive • PIP QI doubled for May & August payments • Increased from $5 to $10 per SWPE • Minimum 4 hours per day • Based on timing of face-to-face MBS items billed
Workforce Management
Managing Staffing Resources Response to financial pressures • Take the benefits of Stimulus packages into account • Retention of valued staff • Negotiating reduced hours • Encouraging annual leave to be taken Impact on cashflow Think about how you will adapt and thrive post Covid-19
Team Models Protecting your team • Prevention of forced closure • Protecting vulnerable staff and patients • Separate access for respiratory cases or flu clinics Working from home • Doctors and staff to work from home where possible • A Team/B Team Social Distancing measures • Reduce numbers in the staff room • Limit time in combined spaces • Use messaging programs to communicate
Team Models Staying Connected • Protecting your team culture Zoom meetings • Morning Huddles • Doctor’s meeting • Staff meetings • Covid-19 response WhatsApp / Messenger groups FUN!! • Encourage email jokes • Zoom Happy Hour
Effective Use of Practices Nurses Changed role • Increase focus on infection control • Re-organising of clinical environments • Phone follow-up – connecting with patients • Significant role in triage – eligibility for Covid-19 testing and/or telehealth
Effective Use of Practices Nurses Virtual Chronic Disease Management Telehealth items for care plans & reviews Systematically following up patients due for care plans & reviews – promotes other work through to GPs Nurses can still undertake a significant amount of this work – requires GP to call the patient to sign off and claim Telehealth items for 10997 & 10987 follow up care
Effective Use of Practices Nurses
Registered Nurse/Aboriginal Health Practitioners follow up services
Item - Telehealth Metro Rural
10997 -> 93203 $12.20 $12.25
BB rebate $12.75 $19.30
$24.95 $31.50
10987 -> 93202 $24.40 $24.40
BB rebate $12.75 $19.30
$37.15 $43.70Flu Clinics
Billed under the GP
Nurse/GP tandem clinics provider number
Use flu clinics to identify and promote access to
alternative follow up care that is required e.g.
Care Plan reviews, Health ChecksBuilding the Bridge
Q & A Session Small Group Zoom Meeting • An opportunity to revisit the themes from this presentation and to ask specific questions related to the experience at your practice Email Diane Ryan, WAPHA to register your interest Diane.Ryan@wapha.org.au
Questions?
we care about your future Thank You brentnallshealth.com.au
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