Dear Valued Client

The greatest chance for us to minimise the spread and prevent our health system crashing is to actually practice social distancing.  We here at Peacocke Accountants will do our very best to help and provide information.

As a business that prides itself on being tech-savvy we can easily arrange to meet with you online. We have a range of solutions that work.  If you want to do your part, then please ask for an online meeting with us.

Now to business. I met online with a thousand other accountants to discuss ways we can help clients and pool knowledge about government announcements.

Originally this was arranged to discuss the first stimulus package, but events have now overrun us.

The first point raised was that if your business is badly affected by the current closures then you need to take action NOW!  Do not feel bad if you have to stand down employees.  Do not feel guilty – it is not your fault and your employees will receive an additional $550 per fortnight over the normal Newstart allowance to help them. Do not make yourself bankrupt thinking you are doing your employees a service. If you do, you will not be there to take them back on when things do improve.  And let me assure you, they will. It may not be for quite a while, but they will.

Now if your business was only just hanging on before this crisis, then maybe you should consider voluntary administration.  No amount of government support will make you profitable – it will only make you falsely believe you can hang on longer.

We can assist with a quick and slightly imprecise cash flow which will let you see where your business will be at – even with government stimulus. This is something we will charge for because we need to keep our business viable to help you.

GOVERNMENT STIMULUS: “Boosting Cash flow for Employers”

The new package aims to give support to employers by paying the wage tax on your behalf. This will be up to $50,000 in total on your March and June activity statements then another potential $50,000 from June to September.  If this results in a refund, then it will be paid to you in 14 days.

Here is an example from the government fact sheet: Sarah employs 8 staff who each earn 89,000 per year. She reports wages tax monthly of $15,008. When she lodges her March BAS she will receive a credit for 3 x 15,008 = 45,024. On her next monthly BAS, she receives the top of 4,976 to reach the $50,000 cap. In addition, there will be an equal amount paid in the July to October 2020 period. For Sarah, it would be 25% in June, 25% in July, 25% in August and 25% in September.  I presume a quarterly lodger will be June and September. For Sarah this will be $100,000.

If you employ casuals and deduct nil or minimal tax, then you will receive a credit of $10,000 on your March BAS and a top-up of $5,000 on the June BAS and the last $5,000 on the September BAS.


Eligible employers will receive of 50% or wages paid during the 9 months 1 January to 30 September (maxing out at $21,000 per apprentice).  More information for trainees is available at or apprentices at


Now I promised I would check and report on businesses who run via a company and pay the owners a wage as well. I believe you will be a beneficiary as you will be supported by the government on your own wages. I feel sorry for sole traders and partnerships because you will only receive support if you employ others.


Could I suggest a virtual meeting – say, 7pm one night to discuss any issues that you may have and just to keep in contact? We can discuss anything you like – tax, HR, business in general…  Just need internet and you can do with or without video – in fact I am pretty sure we can also include phone hook-ups. Please let me know if you are interested in trialling meeting “virtually’’.