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The effects of COVID-19 have already been felt by the real estate industry. With concerned landlords and tenants contacting you and changes to how you sell homes, help get your agency through this challenging time by taking advantage of all support measures that are in place, writes Justin Steer.
There are no doubts that businesses across Australia are feeling the effects of COVID-19. The real estate industry is no different. You’re likely already seeing changes to the number of sales enquiries coming through, as well as taking calls from tenants and landlords seeking your property management advice.
As real estate agency owners, your priority also turns to keeping your staff employed and the doors to your agency open. While there are measures being put in place for landlords and tenants including rent relief and a moratorium on evictions, our focus is on you: the real estate agencies in the thick of it.
We’ve put together for you some of the national measures taken to help you through the months to come.
Boosting cash flow for employers
The government is providing temporary cash-flow support of up to $100,000 for eligible businesses that employ staff to help with their operating expenses, with a minimum payment of $20,000.
This will be done through two sets of cash-flow boosts, with the first delivered from 28 April 2020 through credits in the activity statement system. We recommend that you speak to your accountant to determine eligibility, ensure all accounting is up to date and to lodge these activity statements on time so you can receive the funds promptly.
Eligible businesses that withhold tax on their employees’ salary and wages will receive a credit equal to 100 per cent of the amount withheld, up to a maximum of $50,000 in the first cash boost. The minimum credit will be $10,000, even if the amount required to be withheld is zero.
The amount of additional cash-flow boosts that a business is entitled to is based on the value of initial cash-flow boosts the business received. If the business lodges quarterly business activity statements, it will receive 50 per cent of its total initial cash-flow boosts for each activity statement. If the business lodges monthly business activity statements, it will receive 25 per cent of its total initial cash-flow boosts for each activity statement.
JobKeeper details
- A $1,500 (before tax) payment will be made to eligible employers to be paid to casual (employed 12 months or more), part-time and full-time workers. This is also designed to be passed on to employees who may have been “stood down” in recent weeks.
- To be considered an eligible employer for JobKeeper, employers need to be able to prove a 30 per cent downturn in business due to COVID-19.
- The payment is a flat rate per employee, not considering employee regular salary or prior earnings.
- The payment is effective as at 1 March; however, payments will commence in the first week of May.
- The payments will be facilitated via Single Touch Payroll and are indicated to run for six months.
- This measure is in addition to the PAYG cash-boost stimulus for employers.
Business investment
Increase and extension of the instant asset write-off from $30k to $150k until 30 June 2020. This is available to businesses turning over up to $500 million.
Loan repayment deferrals
Effective immediately, the majority of banks in Australia are allowing payment deferrals on business and personal finance from three to six months. This includes vehicle finance, which, for many, can be a significant monthly outlay.
ATO assistance
The ATO has also implemented measures to assist small business to better navigate these current and unforeseen circumstances. The ATO is offering a range of support measures.
Improved cash flow
Quite unique to the real estate industry is the cash-flow challenge of waiting on settlement to receive commission. During this difficult time, you may consider bringing forward commissions in a safe and reliable way with Commission Flow. In an effort to help our industry colleagues, we’ve slashed our rates, waived our minimum fee and reduced processing times.
We know the real estate industry has survived many ups and downs in the past. With these options available to you, we look forward to seeing your agency come out of the other side of this economic challenge ready to tackle the next opportunity.
By Justin Steer, CEO, Commission Flow
