Response to Impact of COVID 19

Lowe Lippmann Chartered Accountants

Response to Impact of COVID-19

The business disruption of COVID-19 is real and moving fast. We understand the social and economic implications this is causing and the importance of implementing management policies and strategies to get through this crisis from a financial and operational perspective.

How we can assist you

The significant threat of COVID-19 and its impact on many businesses is of huge concern. The current uncertainty of the global economy is creating risks that entities may not have encountered before. Management and governance bodies need to assess:

What type of financial effect might COVID-19 have on my entity?
What do cash flow forecasts look like with new business disruption assumptions and worst case scenarios previously not contemplated?
What levers can I pull to improve cash flows during the crisis?
Is my entity still a going concern having taken into account the above?

Maintaining control over finances and financial reporting is more important than ever. We are here to assist you and advise you during these uncertain times. Please feel free to contact us if required.

In addition to the links below , we will forward to you in due course a summary of the latest tax and cash flow incentives we have prepared which are available to many businesses.

Business.gov.au: released some more details on each assistance measure, with some basic examples – https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business

ATO: released Support measures to assist those affected by COVID-19 – https://www.ato.gov.au/Media-centre/Media-releases/Support-measures-to-assist-those-affected-by-COVID-19

Australian Banking Association: released Help on offer for small businesses financially affected by coronavirus – https://www.ausbanking.org.au/coronavirus-statement-from-the-aba/

Fair Work Ombudsman: released Coronavirus and Australian workplace laws, which may be relevant for your clients with employees – https://www.fairwork.gov.au/about-us/news-and-media-releases/website-news/coronavirus-and-australian-workplace-laws

The greatest thing we can do for you, our clients is talk to you about how to solve your most challenging problems right now. Whether it is managing and shoring up cash flow; taking advantage of the SME tax concessions recently announced; assisting with meeting reporting obligations or just acting as a sounding board. We are here for you!

Our teams are working remotely

We have taken the measure for our staff, were possible, to work remotely until further notice. Our staff have been equipped with the necessary equipment to work remotely and are readily accessible via email and telephone. We will be conducting all face-to-face meetings remotely via telephone, teleconference or video conferencing. We are adapting to this new working arrangement by increasing the usage of online platforms to communicate and share information between staff and clients in different locations.

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Practice Update – November 2025

November 2, 2025

Treasury announced new changes to Division 296 from 1 July 2026 During October the Treasurer announced some key changes to the proposed Division 296 tax measure to deal with some of the more contentious features of this proposed new tax. The Government is planning to make a number of significant changes to the way this tax will apply, including moving from a total superannuation balance change methodology to a fund-level realised-earnings approach and introducing a second threshold of $10 million, with CPI indexing applying to both thresholds. The Government also announced that the start date for the new Division 296 tax will be deferred to 1 July 2026 to allow further consultation and implementation work. For a full explanation of the announced new changes, see our Tax Alert ( click here ).

Tax Alert - Further guidance on new proposed changes to Division 296 from 1 July 2026

October 19, 2025

Further guidance on proposed changes to Division 296 from 1 July 2026 Earlier this week, we released a Tax Alert ( click here ) after the Government announced some significant changes to the proposed superannuation rules to increase the concessional tax rate from 15% to an effective 30% rate on earnings on total superannuation balances ( TSB ) over $3 million – known as Division 296. These proposed superannuation rules were set to commence on 1 July 2025, but the Government has now announced significant changes that will delay the start date until 1 July 2026 and apply to the 2026-27 financial year onwards.

Tax Alert - Chalmers backs down on Superannuation reform

October 13, 2025

In response to continuing criticism and significant industry feedback, Treasurer Jim Chalmers has announced substantial revisions to the proposed Division 296 tax. The government has decided not to apply the tax to unrealised capital gains on members superannuation balances above $3 million. The removal of the proposed unrealised capital gains tax is undoubtedly a welcome change. Division 296 was initially set to take effect from 1 July 2025. The revised proposal, effective from 1 July 2026, still imposes an additional tax but now only on realised investment earnings on the portion of a super balance above $3 million at a 30 percent tax rate To recover some of the lost tax revenue, the Treasurer announced a new 40 percent tax rate on earnings for balances exceeding $10 million. It is also anticipated that both tax thresholds will be indexed in line with the Transfer Balance Cap. We will provide more details and guidance on the new proposal as they become available.