Building a Bridge COVID-19 Response in Practice - - PowerPoint PPT Presentation

we care about your future

brentnalls-sa.com.au

Chartered Accountants & Advisors

Building a Bridge

COVID-19 Response in Practice

Shali Manolev

Partner

BAppSc Bcomm GraDip(ICAA) DipFS (FP) FCA

ssm@brentnalls.com.au

Phone 0402 307 904

Who we are:

Danny Haydon

Principal – Health Division

Ba AppSc(OT) MHtlhSer Mgt FAAPM dh@brentnalls.com.au

Phone 0438 580319

This document is for general information only and is not intended to give advice as it was prepared without taking into account the

• bjectives, 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

Disclaimer

Where are we now?

This presentation current to Wednesday, 29th April 2020.

12 Mar.

Federal Economic Stimulus 1

20 Mar.

Aus Banking Association support

22 Mar.

Federal Economic Stimulus 2

16 Mar.

WA Stimulus Package

30 Mar.

“Job Keeper” Stimulus 3

7 Apr.

Commercial Lease Code

• f Conduct

8 Apr.

Job Keeper legislation passed

20 Apr.

Job Keeper Applications Open

In 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 INDIVIDUALS & HOUSEHOLDS SUPPORT FOR BUSINESSES SUPPORTING THE FLOW OF CREDIT

Support for Businesses

Source: h https://treasury ry.gov.au/coronavir irus/business

Boosting Cash Flo low 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 Flo low 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 Flo low 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 Flo low for Employers Boost 1

Withholding Cycle Eligible Period Boost 1 Amount Lodgement Due Date Quarterly Qtr 3 (Jan, Feb, Mar 2020) PAYGW per March BAS* 28 April 2020 Qtr 4 (Apr, May, Jun 2020) PAYGW per June BAS 28 July 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 exhausted

Boosting Cash Flo low for Employers Boost 2

Withholding Cycle Eligible Period Boost 1 Amount Lodgement Due Date Quarterly Qtr 4 (Apr, May, Jun 2020)* 50% of Boost 1 Total 28 July 2020 Qtr 1 (Jul, Aug, Sep 2020) 50% of Boost 1 Total 28 Oct 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 period

Boosting Cash Flo low for Employers

EXAMPLE A:

• Monthly PAYG Withholder
• PAYGW per month is $15,008

Period Boost 2 Amount Calculation June 2020* $12,500 $50,000 / 4 July 2020 $12,500 August 2020 $12,500 September 2020 $12,500 Total $50,000 Period Boost 1 Amount Calculation March 2020 $45,024 $15,008 * 3 April 2020 $4,976 ($50,000 - $45,024) May 2020

• Maximum

Exhausted June 2020

• Total

$50,000

Boosting Cash Flo low for Employers

EXAMPLE B:

• Quarterly PAYG Withholder
• PAYGW per quarter is $1500

Period Boost 1 Amount Calculation

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 Amount Calculation

June 2020* $5,000 Total Boost 1 $10,000 / 2 September 2020 $5,000 Total $10,000

Boosting Cash Flo low 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 Flo low 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

In Increasing the In Instant Asset Writ ite-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:

Note: if Asset later sold, all proceeds will be taxable

Cost Claim Yr1 Claim Yr2 Claim Yr3 Previous (SBE Pools) $50,000 $7,500 $12,750 $8,925 Instant Asset W/off $50,000 $50,000

In Increasing the In Instant Asset Writ ite-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% Accele lerated Depreciatio ion

• 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 Pools) $50,000 $7,500 $12,750 $8,925 Accelerated $50,000 $25,000 + $3,750 $6,375 $4,462

50% Accele lerated Depreciatio ion

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 Stim imulus

• 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

WA Stim imulus

ATO Assis istance

ATO Assis istance

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 Assis istance

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

Turnover Test (Aggregated income < $1B) 30% or more reduction in “GST Turnover” from same quarter/month last year To be initially eligible, compare GST Turnover:

• March 2020 v March 2019
• Projected April 2020 v April 2019
• Projected Apr-Jun Qtr 2020 v Apr-Jun

Qtr 2019

Choice of test period Cash or Accruals if report GST

• n Cash basis

If not immediately eligible, can apply at later date and enter scheme (but not back paid)

JobKeeper

MEET THE TEST ONCE DO NOT NEED TO KEEP TESTING TURNOVER IN FOLLOWING MONTHS ONGOING MONTHLY REPORTING 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 less

JobKeeper 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

Eli ligible 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 ELIGIBLE EMPLOYEES BEFORE ENROLMENT: JOBKEEPER EMPLOYEE NOMINATION NOTICE 1 EMPLOYER PER EMPLOYEE EMPLOYEE MUST AGREE TO BE NOMINATED

Sole trader or eli ligible business participant

Self-Employed Businesses Many business owners do not pay themselves a wage Businesses can nominate

• ne “owner” to receive

the payment Need to be active participant in the 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 Complete JobKeeper enrolment form & provide

Eligibility information Expected number of eligible employees Contact & bank details

For businesses eligible in April, enrol ASAP – open until end of May if need more time

JobKeeper 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 minimum

JobKeeper 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 May

When will I I be reim imbursed?

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) September $4,500 (for fortnights starting 20 July, 3 August and 17 August) October $3,000 (for fortnights starting 31 August and 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 claim jobKeeper payment for Monthly

STP enabled software with Job Keeper functionality (MYOB, Xero, Quickbooks etc) – reports to ATO required information if setup correctly No STP enabled software with JobKeeper functionality – report to ATO via business portal

Business monthly declaration:

reconfirm eligible employees, notify any changes Current & projected GST turnover to track progress

Supporting the Flow of Credit

Source: h https://treasury ry.gov.au/coronavir irus/business- in investment

Coronavirus SME Guarantee Scheme

GOVERNMENT WILL GUARANTEE 50% OF NEW LOANS ISSUED BY ELIGIBLE LENDERS TO SME’S MAXIMUM $250,000 UNSECURED AVAILABLE FOR NEW LOANS MADE BY PARTICIPATING LENDERS UNTIL 30 SEPTEMBER 2020 STILL REQUIRED TO GO THROUGH USUAL LOAN APPLICATION PROCESS 3-YEAR TERM, WITH FIRST 6 MONTHS REPAYMENT HOLIDAY

Australian Banking Associa iation

Announcement 20 March 2020 Fees & Charges may be waived during 6-month period Banks more open to debt restructures Can apply to home mortgage as well as business debt Be mindful any variation to loan terms may impact credit rating

Commercial 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 Conduct

Questions?

General Practice Measures

MBS Tele lehealth 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 Tele lehealth 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 Tele lehealth of GPs

MBS Tele lehealth 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 Tele lehealth 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

• Prevention of forced closure
• Protecting vulnerable staff and patients
• Separate access for respiratory cases or flu clinics

Protecting your team

• Doctors and staff to work from home where possible
• A Team/B Team

Working from home

• Reduce numbers in the staff room
• Limit time in combined spaces
• Use messaging programs to communicate

Social Distancing measures

Team Models

• Protecting your team culture

Staying Connected

• Morning Huddles
• Doctor’s meeting
• Staff meetings
• Covid-19 response

Zoom meetings WhatsApp / Messenger groups

• Encourage email jokes
• Zoom Happy Hour

FUN!!

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 $43.70

Flu lu Cli linics

Nurse/GP tandem clinics

Billed under the GP provider number

Use flu clinics to identify and promote access to alternative follow up care that is required e.g. Care Plan reviews, Health Checks

Building the Bridge

Q & A Sessio ion

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?

Thank You

brentnallshealth.com.au

we care about your future