COVID-19 Greater Shepparton E-commerce Grant

COVID-19 Greater Shepparton E-commerce Grant

COVID-19 Greater Shepparton E-Commerce Grant

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Greater Shepparton City Council is offering a grant to small and medium businesses to facilitate transitioning to online and e-commerce activities.

How much can I claim?

You can claim up to $3,000 per applicant, with a total pool of $120,000. These funds will be available to claim until 1st of August 2020 or until they run out.

Who is eligible?

  • Have a business located in the Greater Shepparton area.
  • Have a valid ABN as of 16 March 2020.
  • An annual payroll of less than $650,000
  • Have been highly impacted by the Non-Essential Activity Directions to date as a result of COVID-19.

What may be funded?

  • Website design and development.
  • E-commerce platform (selling online and receiving payment).
  • Online content development (web pages, mobile apps, audio and visual media).
  • Mentoring and training in online and e-commerce activities.

Any activities commenced after 16 March 2020 when the State of Emergency was declared are eligible for the funding.
It is expected that the proposed activities will be completed in 8 months with preference going to those that be completed in a shorter period of time.

For more information regarding the grant visit the Greater Shepparton City Council website

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Market Insights – 20/04/2020

Market Insights – 20/04/2020

Market Insights

20th April 2020

Top Stocks

CODE

PRICE

MOVEMENT

 

CODE

PRICE

MOVEMENT

CSL

$328.42

0.65%

 

NAB

$16.39

1.67%

CBA

$61.06

-1.13%

 

ANZ

$16.56

0.36%

BHP

$31.28

-0.70%

 

WES

$38.12

1.95%

WBC

$15.87

-0.56%

 

TLS

$3.16

0.96%

WOW

$37.40

6.86%

 

RIO

$91.51

2.34%

Market and Exchange Rates

All Ords

5,544.70

3.41%

 

US Dollar

0.6356

Dow Jones

24,242.49

3.55%

 

Euro

0.5848

FTSE-100

5,786.96

-1.18%

 

GB

0.5086

Nikkei 

19,897.26

3.07%

 

Yen

68.3300

Commodities

Oil (WTI)

17.450

-22.13%

Gold

1,696.000

-3.71%

Iron Ore

84.170

0.39%

Major Market Announcements

– Coronavirus: Report estimates virus will smash Australian jobs. Up to 3.4 million Aussies could be out of work in the coming weeks.

– Woodside Petroleum has posted a more than 20 per cent fall in first-quarter sales revenue, hurt by reduced trading activity and lower unit prices for its oil and natural gas production. Its average sales prices for its products during the quarter amounted to $US45 per barrels of oil equivalent (boe), more than $US10 weaker than a year earlier.

– Scott Morrison has ruled out introducing a coronavirus levy to help repair the national budget after the pandemic. The prime minister has also talked down the prospect of new or increased taxes to get the economy humming again.

– Renters will now be forced to prove they can’t pay rent during coronavirus restrictions. Housing and Public Works Minister Mick de Brenni said renters suffering financial difficulty due to coronavirus would have to provide evidence of lost income if they wanted to be covered by a freeze on evictions.

– Rio Tinto is maintaining its 2020 production guidance for ore, bauxite, alumina and aluminium but expects mined and refined copper to drop further amid COVID-19 restrictions and earthquake repairs at a plant in the US.

Market Update

Australian markets are expected to open flat on Monday as traders prepare for their first look at hard data on the impacts of coronavirus on the economy.

The Dow Jones and S&P 500 gained more than 2.5 per cent on Saturday (Australian time) in response to hopes around a COVID-19 treatment and news US President Donald Trump was looking to reopen the world’s largest economy.

But with the same news having already spurred a rally on the local bourse on Friday, the ASX 200 futures closed up just 0.02 per cent.

“I suspect we’ll probably be a little flat,” AMP Capital chief economist Shane Oliver told AAP on Sunday.

“Risks are probably a little on the upside unless there is bad news over the rest of the weekend.”

A large swatch of telling data will be released across the week and should shed some light on whether the sharemarket has discounted the economic impact appropriately.

The ASX S&P200 shed 38 per cent from late February to dip to as low as 4402.5 points on March 23 but has since rebounded to close at 5,487.50 on Friday.

Meanwhile, the Australian dollar closed Friday at 63.61 US cents.

Results of a new Australian Bureau of Statistics survey on the household impacts of COVID-19 will be released on Monday while weekly payroll and wages data on Tuesday will give some guidance on how employment and wages are tracking.

“Most of the data we have got so far hasn’t given us much guidance,” Dr Oliver said.

“This week will give us more hard data. We did get employment data last week but that was based on a survey from the first weeks of March.”

The ABS will also bring forward the release of March retail figures when it publishes preliminary numbers on Wednesday.

Those retail figures could be “fairly messy” given supermarkets and home improvement stores have boomed while clothing, restaurants and other retailers have collapsed.

“You’ve got to bear in mind the shutdown really got underway in the second half of March,” Dr Oliver said.

“These figures won’t fully impact the shutdown but I suspect we’ll see quite a sharp fall in retail figures for March and they could be off three per cent or more.

“The trouble is there’s still a long way to go.”

Globally, US home sales data and the PMI on business conditions in Europe, the US, Australia and Japan will be released later in the week.

Netflix, Coca-Cola, Boeing and Amazon are all due to report earnings.

(Source: https://www.news.com.au/finance/business/breaking-news/flat-open-on-asx-amid-first-data-on-virus/news-story/5865d5c5c3a05ff0a1d9e84db8347680)

Bull or Bear?

You would have to be living under a rock to not know about how our economy has taken a huge hit from the Coronavirus. Of course, the share market also took a massive hit from late February and into mid-March and went into a bear market (a fall of more than 20%). In fact, it was the fastest bear market in history!

However, last week, the ASX officially returned to being in a bull market having increased by more than 20% from its recent low in March.

This means that the bear market caused by the COVID-19 crisis was in fact the shortest in Australia’s history.

So we saw the fastest drop into bear territory in history, then we saw the fastest climb back into bull territory in history, all in a matter of a couple of months.

Talk about volatile!

So, does this mean that the worst is behind us?

Maybe. Maybe not.

Throughout history, market crashes have come with false recoveries. We only need to look back to 2007 and 2009 during the GFC to be reminded of this.

The Coronavirus is of course different. However, what is perhaps the biggest thing to be wary of is the unknown.

We don’t know the full extent of business earnings and unemployment numbers, and we won’t know for a period of time. Therefore, this current bull market may in fact be premature.

Scott Morrison recently said the Australian economy was taking its biggest hit since the Great Depression. Mr Morrison also said that the GFC was merely an entrée compared to COVID-19.

A new report from the Grattan Institute has estimated the immediate hit to employment could be between 14 and 26 per cent of Australian workers could be out of work in the coming weeks. That percentage equates to between 1.9 to 3.4 million people.

“History tells us that recovery from a period of high unemployment is rarely fast,” the institute says.

“The longer the downturn goes, and the worse it gets, the less likely the labour market can spring back.”

This unknown of how long the lockdown measures will be in place, how much unemployment will rise and how much of an economic impact the Coronavirus will have are all reasons to be pessimistic and wary of this current, rapid rise back into a bull market.

Now for some good news.

Even if the markets do fall again, it will bring some good news for long-term investors. It will give investors the opportunity to pick up some top-notch companies for very cheap prices.

So, if you are unsure as to whether or not we have seen the end of falling markets, now could be a good time to ensure you have a good cash position, just in case markets fall again.

This could see you well placed to take advantage of any fall that may happen.

All Ordinaries (XAO) 5 Day Chart

Disclaimer: The advice provided is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Where quoted, past performance is not indicative of future performance.

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Should We Fear Bear Markets?

Should We Fear Bear Markets?

Should We Fear Bear Markets?

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A bear market occurs when a market drops by 20% or more and is perhaps an investor’s worst nightmare. A 20% drop in assets is enough to worry even the most experienced of investors, but is this fear justified?

Bear markets are a part of investing. While it is has been quite easy to lose sight of this due to the rise and rise of share markets over the last decade, the past month has been a wakeup call to some that market downturns and corrections are part of the cycle.

The below chart shows bull and bear markets throughout history.


As the chart makes clear, investors who have stuck out bear markets have been rewarded for their persistence with returns during bull markets that can more than make up for the losses.

Seeing your assets drop in such a considerable way in such a short space of time can be troubling for anyone. We spend years building up our assets and it can be taken away in a matter of weeks. Being scared is a very natural response to this.

Investing can bring up some strong emotions. In the face of a market fall, investors may find themselves making impulsive decisions which they otherwise would not have made. Often, these decisions are made without logic and considered thinking. 

Remaining disciplined and maintaining perspective can help us ensure we remain committed to our investment goals and long term strategy.

No one knows what the market is going to do in the future, but having a good understanding of how the market has behaved during and after past bear markets can help us avoid making brash, impulsive decisions that may cause far more harm than good to your portfolio’s long-term value.

Need more help or information?

Click the link below to contact us at Plus 1.

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If you need to get us documents quickly, access remote support, or the MYOB Portal click the button above.

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April Practice Update

April Practice Update

Practice Update – April 2020 Edition

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Coronavirus: Government Announces New Tax Measures

The Government has announced a number of economic responses to the Coronavirus (or ‘COVID-19’) pandemic, including economic stimulus packages worth billions of dollars.

Some of the key tax measures include:

  • From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020.
  • A time-limited 15-month investment incentive (through to 30 June 2021) which will operate to accelerate certain depreciation deductions.
    This measure will also be available to businesses with a turnover of less than $500 million, which will be able to immediately deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
  • Small and medium-sized businesses (and not-for-profit entities), with an aggregated annual turnover of less than $50 million that employ people, may be eligible to receive a total payment of up to $100,000 (with a minimum total payment of $20,000), based on their PAYG withholding obligations.
  • A new ‘JobKeeper Payment’ will be available to assist eligible employers (and self-employed individuals) who have been impacted by the Coronavirus pandemic to continue to pay their workers.
    Eligible employers will be able to claim a subsidy of $1,500 per fortnight, per eligible employee, from 30 March 2020 (with payments commencing from the first week of May 2020), for a maximum period of six months.


ATO’s Support Measures To Assist Those Affected By COVID-19

The ATO will also implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak.

Options available to assist businesses impacted by COVID-19 include:

  • Deferring the due dates for income tax payments, Fringe Benefits Tax payments (‘FBT’) and excise payments up to 12 September 2020 for businesses in financial difficulty; and
  • Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.

However, note that employers will still need to meet their ongoing super guarantee obligations for their employees.

Editor: Please contact our office if you need any advice or assistance during this difficult time.

New Laws Can Make Directors Personally Liable For GST

The government recently passed new legislation designed to strengthen laws to “crack down on illegal phoenixing activity by dodgy business operators who try to avoid their obligations to their customers, employees and creditors.”

In particular, the changes allow the ATO to collect estimates of anticipated GST liabilities, and make company directors personally liable for their company’s GST liabilities in certain circumstances (basically by including these liabilities in the director penalty notice regime).

Importantly, the expansion of the director penalty notice regime to include GST liabilities will commence from 1 April 2020.

New Super Guarantee Amnesty

On 6 March 2020, the government introduced a superannuation guarantee (‘SG’) amnesty.

This amnesty allows employers to disclose and pay previously unpaid super guarantee charge (‘SGC’), including nominal interest, that they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018, without incurring the administration component ($20 per employee per quarter) or Part 7 (double SGC) penalty.

In addition, payments of SGC made to the ATO after 24 May 2018 and before 7 September 2020 will be tax deductible.

Employers who have already disclosed unpaid SGC to the ATO between 24 May 2018 and 6 March 2020 don’t need to apply or lodge again.

Employers who come forward from 6 March 2020 need to apply for the amnesty.

The ATO will continue to conduct reviews and audits to identify employers not paying their employees SG.

New Vacant Land Tax Measures

A new ‘vacant land’ measure limits the deductibility of costs incurred on or after 1 July 2019 (i.e., from the 2020 income year) that relate to holding vacant land, even if the land in question was first held before that date.

Importantly, however, the new provisions include (amongst other exceptions) a ‘carrying on a business’ exception.  This exception means that the limitations will not apply to the extent that the ‘vacant land’ is used, or available for use in carrying on a business, including a business carried on by either the taxpayer (i.e., the owner of the land) or by a specified related entity. 

Further, an additional business exception also applies where ‘vacant land’ is leased at arm’s length for use in any business (i.e., not just a business of the taxpayer or of a related entity).

In addition, land is considered to be “available for use” if it is held for future use in a business currently carried on by the taxpayer or is made available to a specified related entity for future use in a business that entity currently carries on.

ATO On Property Investments

The ATO has reminded taxpayers in a property business or thinking about investing in property that there are things they should know, such as:

  • They need a clearance certificate from the supplier when buying property over $750,000;
  • They may have to pay the GST on the sale of brand new residential property separately to the ATO; and
  • Income from property activities could increase their total business turnover.

The ATO says taxpayers with property should keep accurate and complete records where they:

  • Rent it out as a residential property (even short-term through the sharing economy);
  • flip houses; and/or
  • build a new house to sell for a profit.

In addition, when it’s time to lodge, taxpayers should remember:

  • Some expenses need to be claimed over time.
  • It is only possible to claim expenses for:
    -periods when the property is genuinely available for rent; and
    -travel related to renting property, if the taxpayer is in the business of letting properties.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

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T: (03) 5833 3000
F: (03) 5831 2988
Email Us