Category Archives: News

SUMMER NAMM SHOW CANCELLED

NAMM has announced the cancellation of its Nashville based show scheduled for July 9-11 at the Music City Center, due to the COVID-19 pandemic. “We sincerely recognize the importance of this annual mid-year gathering for our industry,” NAMM President and CEO Joe Lamond and NAMM Chairman Chris Martin said in a statement. “However, the current circumstances make it impossible to hold the show or to undertake the many months of careful planning and preparation that are required to create a secure and organized event.” CLICK HERE FOR THE FULL RELEASE

MUSIC PRODUCTS INDUSTRY POSTS STRONG RESULT FOR 2019

In a world now fully impacted by COVID-19, it is disappointing that our industry currently on an upward trajectory as reported below, will be negatively impacted in 2020 along with many others by the nation-wide emergency we face. Nevertheless, good news is in short supply, so the following should give cause for optimism.

2019 saw an uplift in the overall music products market with a near 9% value increase over 2018, driven by a 9.5% increase in volume. With the currency consistent from year to year ending 2019 weaker at around 70cents against the US dollar and an Import value of well over $322million the highest total recorded in dollar terms. What appeared to be statistical anomalies in 2018 in Other Woodwind and Other Percussion perhaps proved themselves so with those segments returning to normal levels in 2019. A solid year in almost all categories and segments.

In the broad spectrum, Australian retail sales in December 2019 were below hopes and expectations. Multiple reductions in the cash rate in 2019 and federal tax cuts aimed to boost consumer expenditure did not do so with most households said to be using these extra funds to pay off debt or increase savings. The weakness was broad-based and led by discretionary areas. Music retail on the other hand, both anecdotally and supported by this year’s numbers, had a strong year of top line growth.

Led by New South Wales and Victoria, home prices made a recovery and with that some consumer confidence returned. Households were still being forced to curb spending as a result of weak income growth.

GDP growth for the year was modest at 2.8% and still largely mining sector driven but growth nonetheless and Australia could still boast a global record of 26 consecutive years of growth. Increasingly the population is asking where that is ending up as wages growth remains south of the GDP number and has done for some years now.

In 2014 our industry had started the long climb back from the lows of 2012/13. When we compare 2019 to the trends of the previous 5 years, we are looking back at a period of re-build following an economic slowdown and an industry re-organising after a major disruption. The 2019 data shows that we are now nearly back at 2014 levels in volume terms (around 2million units) at over 1.8million and import value has recovered to an all-time high of $332.6million, compared to $237m in 2014. Some of this may be due to data anomalies, but that may over-simplify the situation. An annual average value rise of 47% from $118 to $173 is notable. The AUV did stay almost steady this year, with the dollar figure driven by strong demand.

The 2019 results show another strong performance of the Keyboard category. The category value rose by another 6% to over $66 million. Units dropped nearly 4% driven by a fall in low value portable numbers.

Digitals continue to grow, perhaps at the expense of portable keyboards which fell 9% in volume and over 12% in dollar terms suggesting less leakage from digital pianos after the industry’s focus on correct coding a couple of years back. Digitals were up by 6% in units with the average unit value rising by nearly 5%. Upright piano numbers were down by over 400 units (nearly 9%), but the dollars were up by nearly 6% to nearly $20million. A good result indicating good demand in higher value instruments. The Upright drop in units imported was offset by a big jump in grand numbers year-on-year (of over 25%). Completing a very robust picture was a rise of 8% in value. Average unit value dropped by 14% with consumers preferring the lower price pointed new product to second-hand with those numbers showing no signs of recovery from the reduced numbers of 2018.

The Brass segment was back to a point of two & three years ago when 10,000 instruments were imported. While maintaining a decent average value in brass imports the 14% in extra units imported earned $6.8million. An 11% rise year on year and 14% over 2017!

Woodwind numbers bounced back strongly suggesting last year’s numbers contained some shipment cross overs and anomalies. All the same the numbers show cause for optimism with key segments back above 2017 levels and an 18% rise in value. However the drop in units comparing 2017 with 2019 would still suggest that the recorder trend is still downward. Orchestral strings were steady year on year rounding up a good year for what constitutes a big chunk of the schools’ market.

Percussion was up strongly on the 2018 year after a soft 2017. Drum kits are on fire and have recovered with a 50% jump in both value and units from 2017 and up 23% and 9% respectively year on year. Individual drums down in numbers and maybe some leakage into drum kits occurs in coding, but overall, the acoustic drum result was good.

Orchestral and Other Percussion quite simply bounced back with big increases in value (19%) and units (12.5%). Cymbals were interesting; a 39% jump in value on the back of 9% less units.

Guitars went nice and steady gangbusters! The overall volume in the guitar segment up 12% in 2019 and value likewise was up by 12% and average unit value consistent with last year. The Guitar category should be pleased with the 2019 result.

Electric guitars were up over 20% in units and value in units imported and up nearly 19% in dollars. Last year’s rise in average value continued an upward path and this applied across the category with acoustics up 11% on 2018 and 40% on 2017. With 166,000 units imported and perhaps 10,000 made locally, numbers were back above the record posted in 2017.
The value of Guitar and bass amp imports was steady with a big fall in average unit value from the past two years.

Overall, the electric guitar market bounced back breaking a downward trend of recent years and the other segments posted good results with the value of the guitar market bouncing back 20% when compared to 2017.

In Electronic Instruments we observe another big increase in Synths in 2019, (+20%) while the ‘Other’ segment thought to be driven by e-drums grew in units (+5%) but increased in terms of value (+10%). Turntables showed a decrease in units in 2019 of nearly 10% and Software posted a whopping 34% increase in value on the back of the same increase in average unit value.

Audio & Recording jumped 10% in value and a corresponding 7% in units over 2018. You must go back to 2008 to see $66million in import value for this segment. Speakers leading the way with a 23% import value increase showing a continued migration to powered speakers one would think as self-contained amps dipped in units (-5%) and value (15%). An adjustment from last year’s figures it appears. It was more than made up for by solid increases in signal processors, mixers and microphones.

Traditional products had a good year in terms of value with a 5% rise in 2019, on the back of a steady average import value and a 15% increase in units.
General Accessories, a good industry bellwether, was down a bit after a big jump in 2018, but still at an historically strong value above $24m in import value.

The continuing decline in international online sales would reflect the perceived ‘threat’ to the industry diminishing somewhat, especially with the way the exchange rate finished the year at around 0.70c and with the introduction of a GST on low value imported goods. Our
market is extremely sensitive to international currency trends and the Aussie dollar was on a downward path by the end of the year.

The value of the music retailer to the industry is something the association is keenly interested in promoting. The industry is developing in the online sales space and buying locally is an attractive proposition we believe.

The Music Trades magazine reports that the retail value of the US market advanced nearly 4% in retail value in 2019 year on year. This marked the eleventh market increase in succession after the 2008 financial crisis.

Copyright 2020 Australian Music Association

AMEB Hosts Webinar Series – Break the Isolation – Teaching Music Online

Webinar Series

Break the Isolation

Online teaching is clearly a hot topic at the moment – in response to the disappearance of much of the face to face teaching for the time being, the AMEB has released a series of webinars called Break the Isolation offering to promote online music education.

 

The dedicated Website can be viewed here Break the Isolation webinars here. It links to past episodes on Facebook and YouTube as well as upcoming episodes. The AMEB aims to release the following weeks’ webinars every Thursday at this stage.

 

You can also find links and advice from experts about teaching online and other resources that contribute to the current situation.

A Week is a long time in Covid Land

Monday 30th March

The week that was….

The industry is in a form of lockdown with stores sparsely attended by sales staff, no browsing policies, and limits of those allowed to enter. April fools day came and went with not much to prank or much to laugh about.

On Monday, the federal cabinet banned gatherings of more than two people. According to the ABC News, shops and shopping centres are excluded from the two-person rule, excepting that one must not gather in the shop in groups of more than two.

Several key wholesalers we have spoken to are 100% operating from home, most staff are ‘still’ employed’. There were a few exceptions where wholesalers were forced to layoff some of their workforce.  Music schools largely employing casual teachers are not operating across the country, while others are developing online teaching resources to meet demand. We are still selling, picking, packing, dispatching to our dealers.

In MI, it’s clear that whilst retailers can still operate, with the support of logistics, online MI stores will flourish. We’ve had reports of good online business to March 31. And in fact good business levels all round, as people stock up.

Manufacturers like Cole Clark and Maton are pushing on through and shipping guitars and not yet affected by any halt on their activities and the same. Maton too, continue production.

Retailers were reporting strong ‘Christmas like’ sales levels right through the week on top of a pretty good month. Operations have adapted with daily developments.

Banks will allow commercial landlords with loans of up to $10 million to delay their loan repayments by up to six months, on the condition tenants are not evicted due to the coronavirus crisis was another key announcement of the week. Banks are working with customers to help navigate difficult financial waters. Who’d a thought?

Prime Minister Scott Morrison announced a $130 billion package to support the wages of up to 6 million Australians throughout the coronavirus crisis.

The “Jobkeeper” subsidy will be worth $1500 a fortnight. The government will pay employers to pay their employees,” he said.

“Our goal is to protect lives and livelihoods of Australians to protect and preserve the economy that we depend on and to get to the other side as well.” The PM said according to the media this afternoon.

This was great news for workers and allowed businesses to keep operating in a lot of cases.

Australia’s peak retail body will raise casuals’ eligibility for the new jobkeeper payment with the government after unions, Labor and the Greens raised concerns that those with less than 12 months of service are excluded from the $1,500 fortnightly payment.

The Australian Retail Association’s executive director, Russell Zimmerman, Tuesday told Guardian Australia (Tuesday) that casuals’ eligibility was an “area of concern” and the government should consider exceptions for people with less than 12 months’ service but a likely “continuation of their role” after Covid-19 shutdowns.

Overall, businesses could continue to trade, observing strict rules and restructuring their focus. What the next week will be interesting as every day brings something new.

Provided expected ‘shut downs’ will allow online and deliveries music retail can continue to operate.

FEDERAL GOVERNMENT ANNOUNCE NEW ‘JOBKEEPER’ WAGE SUBSIDIES

Prime Minister Scott Morrison has announced a $130 billion package to support workers’ wages through the coronavirus crisis.

The “Jobkeeper” subsidy will be worth $1500 a fortnight. The government will pay employers to pay their employees,” he said.

“Our goal is to protect lives and livelihoods of Australians to protect and preserve the economy that we depend on and to get to the other side as well.” The PM said according to the media this afternoon.

Other detail extrapolated from the press release is as follows and us pretty big news for both Employers & Employees

Today the Government has announced further assistance aimed at employers to enable them to keep their employees employed over the next 6 months.

WHAT IS THE JOBKEEPER PACKAGE?

  • A wage subsidy from the Government of $1,500 per fortnight per employee for eligible employers/employees

WHO IS AN ELIGIBLE EMPLOYER?

  • Small to medium businesses whose turnover has fallen by 30% or more as a result of the Coronavirus
  • Employers with turnover above $1 billion, whose turnover has fallen by 50% or more

WHO IS AN ELIGIBLE EMPLOYEE?

  • Part time employees
  • Full time employees
  • Casual employees who have been with their employer for more than 12 months
  • Sole traders

Please note that in order to be an eligible employee, they must have been on the books as at 1 March 2020.

WHEN DOES IT COMMENCE?

  • The first payments will commence from 1 May 2020. These payments will be backdated/backpaid for eligible businesses from today’s date.

HOW DOES IT WORK?

  • This payment will be administered by the Australian Taxation Office (ATO)
  • Employers who believe that they qualify should register with the ATO
  • It is hoped that employers will continue to cover the employees wages prior to receipt of the Government subsidy. They will then be reimbursed with back payments by the ATO from 1 May 2020.
  • All employees will be eligible for the $1,500 payment from the ATO regardless of their current wages. Employers may then top up the employees wages (depending on circumstances)
  • The employee may continue to work in the business whilst receiving this payment.
  • There is no superannuation guarantee on the government’s $1,500 payment
  • The amounts declared to the ATO by the employer will be verified through Single Touch Payroll (STP)

For Full details CLICK HERE for the ATO Site

There is also a very good government fact sheet from The Treasury CLICK HERE

WHAT SHOULD I DO NOW?

  • If you are an employee who has recently been stood down or about to be stood down, we suggest you contact your employer to ask whether they will be part of the Government’s ‘Jobkeeper Program’
  • If you are an employer who meets the criteria above, we suggest that you contact either the ATO or your own accountant.

Please note that this information has been prepared from the Prime Minister’s recent press conference and is subject to change as further details emerge and is provided as information to the best of our knowledge is factual. Detailed guidance should be sought from your own professional sources.

 

Music Retail is Open! March 27

Music Retail is still open for the time being as of March 27, 2020,

There is much uncertainty for music retailers about how long they will be able to service the needs of its customers, who, we understand might have their focus on other needs at the moment.  But for the musicians who have needs in order they can continue their practice, learning and recording our industry wants to be there for you.

While your local music store may be open & desperately appreciates your support, now is not the time to be casually browsing in any shop for half an hour because you’re bored. Go to the store. We advise in the interest of all our safety, that you make your purchase and leave as soon as possible.

We feel learning an instrument & playing music is going to play an important part in sustaining your mental health & the mental health of the community. NOW is the perfect time to take up that instrument you’ve always thought you would like to but haven’t had time.  There are many teaching resources online. For example check out this offer from Fender

Logistics is still an essential service so stock can still be shipped from suppliers to retail, and retailers can arrange deliveries. By online or by phone.

Some retailers may be shutting their doors and serving customers via Online only. But for those that keep a shop front open, there is a lot of effort going into keeping the store environment safe for staff and customers.

General Info

Music retailers have been advised to follow World Health Organisation procedures on personal hygiene and proximity to customers. Retailers encourage customers to phone or email enquiries to save trips to the stores. The stores must know the square metreage available and therefore using the 4m2 per person, calculate how many people are allowed in the store at once.

For the time being, most stores are maintaining their regular opening hours and they are offering the same friendly service but are cutting down on contact (sorry, no handshakes or hugs for now). Stores should regularly disinfect their demo gear. Hand sanitiser is being made available and most stores encourage payment via card rather than cash.

Should customers feel unwell (fever, cough, sore throat, runny nose, headache or shortness of breath) or have recently returned from overseas, our stores ask that you refrain from visiting in store in order to ensure the safety of all customers and our team. In many cases, stores can look after you just as well if you browse our website, give them a call or email instead.

Q: Are retailers taking cash?

If they are, we have advised that The W.H.O. is advising everyone to wash their hands after using cash money, especially if handling or eating food.

To be safe, we encourage use of card machines and ideally contactless and to have a sanitiser close for team members who may handle cash. We have suggested retailers restrict cash handling to a single till in the store.

Please don’t take offence if a staff member reminds you about the protocols surrounding sneezing or coughing, especially into your hands.

Our stores would make hand sanitiser available and staff have been advised to keep a reasonable distance from customers; 1-2 metres where possible in line with government advice.

Q: What about wanting to try an instrument instore?

Many stores have implemented a No Blow policy for all brass, woodwind, harmonicas etc. You may see signs like this in store – please respect them.

You might see signs on ‘condition of entry’ that if you plan on trying an instrument you need to use the hand sanitiser provided at the entrance.

If you wish to try a guitar for example, customers should be asked to use the hand sanitiser that the store is making available.  Our advice to retailers is that all customers must use hand sanitiser BEFORE they touch an instrument.

Note, when practicing your own measures, Hand sanitizer is 60+% percent alcohol which can cause clouding in lacquer finishes.

Don’t use sanitizer or wipes with alcohol directly on the guitar.  But a person should use it on their hands.

Q: What actions have retailers been taking in their stores?
A: Retailers would be thoroughly cleaning doors, counters, computers, and areas where customers may touch. Instruments, especially wind, are being thoroughly cleaned and disinfected.

Observing social distancing.

Retailers are printing advice to customers and posting it around the store.

Sanitising their POS equipment. EFT keypad pads etc after use.

Providing hand sanitiser on counters in clear view and encourage customers to use it, as well as staff after they have dealt with a customer.

Keeping the customer informed of the policies in their store at this time.

Q: What about Online?
Retailers are noticing an increase in phone and email enquiries and while restrictions are in place. Online is the best and safest way to purchase during these times.

Contact the stores for product advice by phone and email.

We know as musicians that Customers who are concerned about being at home for a prolonged period maybe looking to making music to relieve stress and anxiety in these times, start that recording project or online learning course or just get some practice in.

We want to be here to help with your needs. While our stores are allowed to open, so is their Online store.

Stores are aware of best practice in packing and dispatching.
At present, most stores’ online ordering services are running as usual with their team working in their online orders department, ready for your enquiries. Some are waiving their dollar minimum purchase for free delivery and are encouraging their customers to use online so as to limit, as much as possible, the spread of the virus.

Logistics is still regarded as an essential service. Therefore, for the time being deliveries will continue. We cannot control what deliverers do, but we are confident that at the store end the goods will leave after being wiped down and sanitised before it is packed and leaves the store.

 

Covid-19 Government Assistance to Business (and Household) State-by-State

Australia-wide

What’s available for households?

What if I run a business?

  • Wage subsidies of $100,000 to businesses with a turnover less than $50m and also for not-for-profit charities
  • Businesses with a turnover of less than $50m can have 50% of eligible loans up to $250,000 over three years guaranteed by the commonwealth through participating banks and non-bank lenders
  • Small businesses can get a 50% wage subsidy to retain trainees and apprentices for up to nine months
  • The instant asset write-off will be increased to $150,000, from $30,000, for businesses

We have also located a good link to the federal government’s Business.gov.au website which all the information on assistance available to businesses and sole traders.

New South Wales

What’s available for households?

  • A jobs program employing additional cleaners of public infrastructure such as transport assets, schools and other public buildings

What if I run a business?

  • Businesses with payrolls of up to $10m will have payroll tax waived for three months
  • Payroll tax cuts by raising the threshold limit to $1m
  • Small businesses, including bars, cafes, restaurants and tradies, will have fees and charges waived

Victoria

What’s available for households?

What if I run a business?

  • Full payroll tax refunds for the 2019-20 financial year for small and medium-sized businesses with payroll of less than $3m
  • Small and medium-sized businesses can defer payroll tax for the first quarter of the 2020-21 financial year until 1 January 2021
  • Rent relief for commercial tenants in government buildings and 2020 land tax payments deferred
  • The government is paying all outstanding provider invoices imminently
  • Hospitality sector will have liquor licensing fees waived

Queensland

What’s available for households?

  • A $200 rebate on power and water charges, as well as a $50 dividend as a bill credit from the state’s publicly owned electricity assets
  • A jobs program to help newly unemployed workers get jobs in industries such as health care, agriculture, food production, transport, cleaning and mining

What if I run a business?

  • Low-interest loans of up to $250,000 to help businesses retain employees and maintain their operations
  • Payroll tax can be refunded for two months, or deferred for three months or the entire calendar year
  • Rent relief is being devised for businesses who lease government properties
  • Small and medium businesses that consume less than 100,000 kilowatt hours can get a $500 rebate off energy bills
  • Fees and charges can be waived for hospitality and tourism businesses

South Australia

What’s available for households?

What if I run a business?

  • A large infrastructure program for shovel-ready projects, including tourism infrastructure and health facilities
  • Expanded business grants program known as the Economic and Business Growth Fund

Western Australia

What’s available for households?

  • The Energy Assistance Package payment is being increased from $300 to $600 for eligible concession card holders
  • The government has frozen scheduled fee and charge increases for electricity, water, motor vehicle charges, the emergency services levy and public transport fares

What if I run a business?

  • A one-off payroll tax grant of $17,500 for businesses with a turnover between $1m and $4m
  • Small and medium-sized businesses affected by Covid-19 can apply to defer payroll tax until 21 July 2020

Tasmania

What’s available for households?

  • Eligible people on low incomes who are required to self-isolate can get a $250 (individuals) or up to $1,000 payment (families)

What if I run a business?

  • Interest-free loans for businesses with a turnover below $5m in the hospitality, tourism, seafood production and export sectors
  • Payroll taxes waived for hospitality, tourism and seafood industry businesses for the last four months of 2019-20
  • Other businesses with payrolls of up to $5m can apply for a payroll tax waiver for April to June 2020
  • Government will pay bills to small businesses in 14 days rather than 30 days
  • Grants and tax rebates for businesses that hire apprentices or trainees in certain industries, or young people

Australian Capital Territory

What’s available for households?

  • Home owners can access a $150 rebate on residential rates for 2020-21
  • The Fire and Emergency Services Levy, vehicle registration, parking and public transport fees will be frozen
  • People who get the utilities concession get an additional $200 rebate on their electricity bill
  • To keep and create jobs the government is fast-tracking infrastructure projects and maintenance on government-owned community, school and other buildings

What if I run a business?

  • Licensed venues will have registration and licensing fees waived for 12 months
  • Small business owners with electricity usage below 100 megawatts a year get a $750 rebate on their next bill
  • Rideshare vehicle licence fees are being waived
  • ACT businesses with group Australia-wide wages of up to $10m can defer their payroll tax for 2020-21
  • Commercial property owners with an average unimproved value below $2m on their property can apply for a rates rebate

Northern Territory

What’s available for households?

  • Cash vouchers up to $6,000 for home improvement programs if you pledge to cover part of the cost
  • All increases to government fees and charges, including electricity costs, will be put on hold
  • What if I run a business?
  • Two $10,000 grants to improve your business property
  • Not-for-profit and community organisations can access grants to do repairs, renovations and upgrades to their property and facilities
  • A $50m business grants ‘Survival Fund’ is currently being devised

 

Source: The Guardian 24 March 2020

COVID-19 Update March 25 from Federal Government

On Tuesday evening Scott Morrison outlined a further set of restrictions on businesses and individual behaviours to combat the coronavirus outbreak. Here is an updated list of the federal government’s measures, which will take effect from midnight on Wednesday if they were not already in place.

Banned or closed

  • Registered and licensed clubs, licensed premises in hotels and pubs, casinos and night clubs.
  • Cinemas and entertainment venues
  • Auctions and open house inspections.
  • Personal services such as beauty therapy, tanning, massage and tattoo parlours (but not physiotherapy).
  • Outdoor and indoor markets, although “major food markets” (the prime minister cited Sydney’s Flemington market as an example) will be addressed by states and territories.
  • Amusement parks and arcades, and indoor and outdoor play centres.
  • Galleries, museums, libraries and swimming pools.
  • Gyms and indoor sport venues.
  • Overseas travel, with some exceptions such as aid workers and compassionate travel.

Restricted

  • Hairdressers and barbers can continue but must strictly manage social distancing and restrict the amount of time a patron can be in the premises to no more than 30 minutes.
  • Boot camps and personal training must be limited to 10 peoeple.
  • Restaurants and cafes can offer delivery and takeaway only. Food courts in shopping centres may also only offer takeaway.
  • Weddings restricted to five people – the couple, the celebrant and two witnesses.
  • Funerals limited to no more than 10 people.
  • Visits to houses should be kept to a very small number of people, including for family barbecues and birthday parties. States may choose to legislate to restrict house parties.

Remaining open

  • Shopping centres and other shops not specifically told to close, including bottle shops.
  • Medical centres.
  • Pharmacies.

Schools

The federal government’s advice is that it is safe to send children to school up to the end of the term, but some pupil-free days will be needed to plan distance learning.

Schools will reopen after the term break with a mix of distance learning and in-school learning for all “essential workers”, defined by the prime minister as anyone with a job.

There are differences in how each state and territory is managing schools.

NSW: Schools remain open but it is up to parents to decide whether to send children to school, and parents have been advised to keep children home unless they need to work.

Queensland: Schools remain open but it is up to parents to decide whether to send children to school.

Victoria: Schools closed for school holidays. Due to return on 13 April.

ACT: Schools are pupil-free until the school holidays, but open to students who absolutely need to attend, such as those whose parents must attend work and cannot care for their children at home, as well as vulnerable children and those with additional needs. No child will be turned away.

Tasmania: Schools remain open but up to parents to decide whether to send children.

NT: Schools to remain open but optional for parents to send children.

SA: Schools remain open but premier Steven Marshall recognises parents will take children out of school, allowing for increased social distancing.

WA: Schools remain open but laws relaxed so it’s not compulsory.

All states and territories are working towards re-opening in term 2, depending on how the situation changes over the next few weeks.

Beaches

There are no outright bans, although people are advised not to go and some Sydney beaches have been fenced off.

It is up to the councils to enforce the outdoor restrictions on social distancing.

Interstate travel

NSW, the ACT and Victoria are the only states and territory to not implement restrictions on interstate travel. In the other states and territory anyone visiting will be required to quarantine themselves for 14 days upon arrival, unless they are in sectors deemed essential. Western Australia, South Australia, the Northern Territory and Queensland have all closed their borders to a greater or lesser extent. Tasmania has said it will turn around visitors from interstate who do not have an essential purpose to their trip.

Remote communities

The restrictions in the Northern Territory do not apply to the remote communities because of the strong restrictions already in place in those communities.

Source: The Guardian March 25, 2020

FEDERAL GOVERNMENT ANNOUNCES NEW SMALL BUSINESS FINANCIAL ASSISTANCE

We have compiled a list of Federal & State Government assistance that has been announced for both businesses and individuals, which will help you understand what is available to you.

You will be aware that things are changing almost daily and even some of the information below is short on clarity on how to access.

FOR BUSINESS

PAYG WITHHOLDING REBATES

  • The government has announced that it will be providing between $20,000 and $100,000 to eligible small businesses who employ people (including owners)
  • Businesses with turnover of less than $50 million will qualify, as well as not-for-profits
  • This will come in the form of a credit on your activity statement for 100% of the PAYG withheld
  • This measure will be in place until October 2020

TEMPORARY RELIEF FOR FINANCIALLY STRESSED BUSINESSES

  • The government has increased the threshold at which creditors can issue a statutory demand and the time businesses have to respond to statutory demands
  • There is also temporary relief for directors for any personal liability for trading whilst insolvent
  • The ATO will allow deferral or temporary reduction of payments for up to 4 months for the following – GST, PAYG, Income Tax, FBT & Excise
  • The ATO will also temporarily withhold enforcement action such as Director Penalty Notices and Winding-Up Notices
  • Business on a quarterly GST reporting cycle will be able to change to monthly GST in order to access GST refunds more quickly

INSTANT ASSET WRITE OFF

  • The government has increased the instant asset write-off threshold from $30,000 to $150,000
  • This can be accessed by business with an aggregated annual turnover of less than $500 million

INVESTMENT ALLOWANCE

  • The government has introduced an investment incentive which will allows businesses to deduct 50% of the cost of an asset when it is installed, with existing depreciation rules to apply to the balance of the assets cost
  • This will apply up until 30 June 2021
  • This can be accessed by businesses with an aggravated turnover of less than $500 million
  • An example of this would be a business purchasing an asset worth $300,000. Ordinarily they would only be able to deduct 15% in the first year ($45,000). Under the investment allowance, the business could claim 50% of the asset cost plus the 15% in the first year ($195,000 deduction in the first year)

EMPLOYING APPRENTICES/TRAINEES

  • Eligible employers can apply for a wage subsidy of 50 percent of the apprentice/trainees wage for 9 months (1 January 2020 to 30 September 2020)
  • Employers will be subsidised up to $21,000 per eligible apprentice/trainee ($7,000 per quarter)

GUARANTEEING LOANS

  • The government will provide a guarantee of 50 percent to lenders for unsecured business loans for small businesses
  • This applies to loans up to $250,000
  • The government will guarantee the loan for up to 3 years

PAYROLL TAX REFUNDS

  • The Victorian government has announced Payroll Tax cash refunds for businesses
  • They will refund the payroll tax paid in the first 3 quarters of the current financial year
  • This applies to business with a payroll of less than $3 million

GOVERNMENT GRANTS

  • The Victorian government has also announced $500 million in funding for those businesses doing it tough as a result of the Coronavirus
  • This will be spent in the form of hardship payments, small grants and business support services
  • Further details to be announced regarding who will qualify and how to apply for the grants

PAUSE ON BUSINESS LOAN REPAYMENTS

  • Banks will be allowing customers to freeze their business loan repayments for up to 6 months
  • Please contact your bank to see whether you qualify

When speaking to your staff about their employment in this crisis, there are a number of touch points for individuals in the government’s efforts in stimulus

Some legal allowances were just announced too:
In particular, the government intends to relieve directors from the risk of personal liability for insolvent trading, where the debts are incurred in the ordinary course of business.

In addition, the minimum threshold at which creditors can issue a statutory demand will increase from $2,000 to $20,000, and companies will have 6 months to respond to the statutory demand rather than the current 21 days. Other measures are also included in the proposal, details of which are set out below.
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf

FOR INDIVIDUALS

NEWSTART/JOBSEEKER PAYMENTS

  • The government have announced a temporary (6 month) Coronavirus Supplement of $550 per fortnight for Jobseekers in addition to the current payments
  • They have also waived asset tests and waiting periods for those who are recently unemployed
  • The supplement is also available to casuals and sole traders who earn less than $1,075 per fortnight

ACCESSING SUPERANNUATION

  • Those eligible for the Coronavirus Supplement or sole traders/casuals whose hours or income have fallen by at least 20% or more as a result of the Coronavirus may be able to access their superannuation
  • Withdrawals will be capped at $10,000 this financial year and a further $10,000 next financial year and will be tax free

PAUSE ON HOME LOAN REPAYMENTS

  • Some banks are allowing you to freeze your mortgage repayments for up to 6 months
  • You will need to contact your bank to see whether you qualify

$750 GOVERNMENT PAYMENTS

  • 2 payments of $750 will be made to those receiving the Age Pension, Carers Allowance, Family Tax Benefits and Commonwealth Seniors Card Holders, as well as those in receipt of other income support payments
  • The first payment will be made from 31 March 2020
  • The second payment will be made from 13 July 2020

Federal Government Announces Economic Stimulus Package for Small Business

On March 12, 2020 the federal government announced a variety of economic measures including the boosting cash flow for employers measure which will provide up to $25,000 back to business, with a minimum payment of $2,000 for eligible businesses. The payment will provide temporary cash flow support to small and medium businesses that employ staff. The payment will be tax free. For full eligibility details CLICK HERE FOR GOVERNMENT INFO

These claims can be made in conjunction with quartley BAS activities.

Employer, finance and business obligations

Last Updated: 15 March 2020

Find out how to meet your employer and business obligations and isolation requirements if you’re affected by the coronavirus. CLICK HERE FOR GOVERNMENT INFO