Covid 19

Measures to Businesses - COVID-19

Origin supports the lockdown measures in South Africa; however, our team will be available
Origin supports the lockdown measures in South Africa; however, our team will be available and will be working from home during this period as we are committed to you.

Origin Financial offers an inclusive approach to financial solutions, recognising that our clients are becoming more financially informed, understanding their own financial needs and becoming more focused on their specific goals, and offering the financial assistance to guide the way, continuous support and advice.

Please feel free to contact us via e-mail, Facebook or telephonically should you require any assistance during this time. We will continue to support and guide you in all your financial decisions through this uncertain period. We understand that this time of uncertainty might be challenging for individuals and businesses alike, which is why we are here to provide continuous support and advice.

We are all in this together, and as always, we are committed to you! Stay safe and stay at home!
Advice on COVID-19 measures to business
In the light of President Cyril Ramaphosa’s announcement on 23 March 2020 regarding relief measures aimed at assisting South African businesses and their employees, the following applies:

Origin can assist our clients to gain maximum benefit from the relief measures as stipulated in this letter, please do not hesitate to contact us. The key measures that have an impact on businesses, their employees and poverty-stricken citizens are as follows:

Temporary Employee Relief Scheme ("Reduced work time"):
The SA Government has instituted a special dispensation for companies in distress. In terms of the Scheme, as it is currently understood, the companies will be able to make direct payments to their employees. For further assistance please contact us at info@originfin.com

SARS measures:

Wage subsidy:
A subsidy of R500 will be granted for the next four months to employers in the private sector whose employees earn less than R6,500 per month under the Employment Tax Incentive. The Government provides relief to qualifying employers through a reduction of employees’ tax. It is our current understanding that the Government will follow the same procedures regarding the tax subsidy. For further assistance please contact us at info@originfin.com Employment tax incentive:

The South African Revenue Service (SARS) has undertaken to accelerate employment tax incentive reimbursement from twice per year to monthly. For further assistance please contact us at info@originfin.com

Further tax relief:
Businesses that are tax compliant which has a turnover of less than R50 million will be allowed, over the next four months, to delay 20% of their PAYE liabilities as well as a portion of their provisional corporate income tax payments. There will be no penalties or interest payable for the next six months. For further assistance please contact us at info@originfin.com

Relief funds:

Tourism Relief Funding:
The Department of Tourism has made R200 million available to SMEs in the tourism and hospitality industry who are under stress on account of the travel restrictions. The SMEs must have a turnover of less than 2,5 million to qualify for the funding. Relief to SMEs: The Industrial Development Corporation (IDC) has made R500 million available to distressed SMEs. The application process is simplified.

Funding products:
The IDC, in conjunction with the Department of Trade and Industry and Competition, has agreed to provide funding of more than R3 billion to vulnerable firms and to fast-track financing of companies that are critical to the SA Government's efforts to fight COVID-19 and to reduce its economic impact.

National Disaster Benefit Fund:
The SA Government has allocated R30 billion to a special Disaster Benefit Fund. The Fund will pay benefits to the UIF for up to three months for qualified workers whose income has been affected by the pandemic, which includes COVID-19 related job losses, illness pay-outs, reduced time claims as well as support job retention.

Solidarity Response Fund:
The fund is subsidized by businesses and individuals. The purpose of the Fund is to address repercussions concerning COVID-19 and to introduce measures which will assist to reduce its spread. The information regarding the Fund is currently limited to how donations can be made to the Fund. For further assistance please contact us at info@originfin.com

Compensation Fund:
If employees should contract COVID-19 at their workplace they will be paid through the Compensation Fund.

Banking industry:
The commercial banks are busy publishing their measures to assist businesses and individuals. We have been in contact with most of the major banks and do have details of how to apply for this or of how this affects you. For further assistance please contact us at info@originfin.com
Advice on Payment of Medical Aid, Life Insurance and Short-Term Insurance Premiums
The following information is provided to assist our clients when faced with difficult decisions regarding insurance premiums and the options available to them. We strongly advise you to contact one of our advisors to discuss your options as each case is unique.

MEDICAL AID SCHEMES
Medical aid schemes are funded monthly; therefore, this may well be the premium that you would not want to be returned. At most schemes, your cover will be suspended upon the non-payment of the premium until the premium is paid in. This could put you at severe risk, especially in these times. We have specialists that deal with the major medical aid schemes that can assist you in making the best decisions. For further assistance please contact us at info@originfin.com

LIFE INSURANCE
Depending on the type of life policy you have, you may have different options if you find yourself in financial distress. Older type life policies have savings components to them, which may be utilised to fund premiums for a period. Most clients will have new generation life policies that do not have savings components. This means that the cover is funded in the same way that short term policies are done. Every premium buys one month’s cover. Most insurers allow for one missed premium and then deduct two premiums in the following month. If you miss the second premium, then the policy will lapse.

If you wish to reinstate your cover, you may be required to undergo medical underwriting again. For a lot of clients, this can prove problematic.

In these times, however, insurers are implementing various plans to help clients keep their cover, by offering payment holidays, or reduced cover amounts at lower premiums for a period of time.

Clients that find themselves in a difficult financial situation can contact us for assistance. We have contracts with all the major life insurers, so we’ve got you covered. For further assistance please contact us at info@originfin.com

SHORT-TERM INSURANCE The Risk of clients in lockdown could have changed. Please speak to one of our advisors and declare all relevant information. Maybe your risk before the lockdown was spread over distance, after lockdown, it could be down to a single address or premises.

Speak to our advisors for options on motor vehicles. (commercial and personal). This is not available if financed.

Some insurers are assisting clients with premium relief initiatives, please discuss this with our advisor's for options available to you.

Please ensure that alarms are tested and are in working order. Note and comply with all conditions for cover. All conditions and exclusions are stipulated in the policy schedule.

Lastly, be careful to lower your insured amounts, this could lead to avery if a claim arises and be mindful of Cyber Crime especially, COVID-19 SCAMS.

For further assistance please contact us at info@originfin.com
How to Access Funds and Relief

We have compiled a list of different funds and support for existing companies, challenged by the virus.

NEF Disaster Relief Fund for Black Owned Businesses providing essential services. Please click here for more details.

IDC Disaster Relief Funds for businesses providing essential services. Please click here for more information and application.

The SMME Debt Relief Fund , please click here for more information and application.

The SMME Registration website, please click here to register

The Department of Labour has published new regulations which outline South Africa’s new Covid-19 Temporary Employee/Employer Relief Scheme (TERS). Employers can apply by reporting their closure by emailing covid19ters@labour.gov.za and there shall be an automatic response outlining the application process.

Business Partners will administer the R 1 billion fund to assist companies in distress through this lock down and virus. Please to contact them directly.

If you are a business supplying essential services you can apply for a certificate, please click here.

There is also a disaster relief fund for artists and athletes available, please click here.

If you need support to apply for any of these funds, please reply to this email, we will assess if you qualify and guide you. Please stay save!

P.S.

Please feel free to forward this newsletter to your friends and business associates. If you want to sign up for our newsletter please click here!

Advice on Risk and Wealth Insurance
The basic need for Life and Risk insurance today is to provide security, to protect and to give peace of mind to our Families and Businesses. Life & Risk Insurance Due to the COVID 19 Epidemic, our health is under continuous threat; forcing us to consider the relevance of life insurance now even more than ever.

  • It is important to know that Life Insurance Companies are open for business and are currently taking applications from us. This is the ideal time to review current life insurance and other risk portfolios; to align; to restructure or to apply for new cover, and making use of relaxed rules and regulations currently on offer.
  • Selected and approved clients could receive life cover, without a medical examination.
  • Business insurance: Value of shareholding should be aligned with life cover, as this restructuring could save you money.
We foresee that life cover could undergo change and become more expensive as the year progresses; hence our invitation to clients to call us to assist them during these uncertain times.  

Short Term Insurance
  • Premium saving can be realised, for example, by simply changing the cover on a vehicle not being used during lockdown from comprehensive to third party fire and theft. This amendment must be discussed with you advisor, as vehicles being financed is excluded from this as per financial institution rules.
  • There is also other saving mechanism that can be implemented, but would be required a discussion with your advisor.
 The current epidemic can result a higher risk for certain perils, such as Looting and the risk associated with unoccupied premises. Please speak to your Financial Advisor regarding your cover. 

Medical Aid
  • Savings accounts could be utilised to subsidise premiums.
Investments and annuities
  • It is important to stay calm and to stick with investment goals rather than making emotional decisions.
  • Extreme market volatility has presented many opportunities, but the key is to stay focused on the long term and disciplined about where we spend our time.
  • The time of maximum pessimism is normally the best time to buy, and the time of maximum optimism is the best time to sell.
  • National Treasury has announced proposed temporary changes to living annuity benefits in acknowledgement of the current difficult circumstances annuitants may be experiencing.
  • Options to lower your contributions exists.
  • Options to put contributions on hold are also available. 
Setup of a pre Tax Risk Fund 
  • We can assist to set-up a pre-Tax Risk fund for Catastrophic events. Managing your risk is important for financial success.
  • All contributions are tax-deductible
  • Flexible options available
  • Loan option available
We are updating all of this on our COVID-19 webpage. 

BUSINESS CONTINUITY DURING NATIONAL LOCKDOWN LEVEL 4

Origin Financial remains committed to you as we collectively combat and flatten the curve of the coronavirus (Covid-19) outbreak.

Our offices remain closed during the national lockdown level 4 and our team will continue to work remotely at full capacity in offering excellent service to all our clients and stakeholders.

Please make use of telephone, emails and alike to make contact.
Your Financial Planner or Short-Term Advisor will be available for assistance.
Contact our office on 086-118-7878 or Origin Assist on 086-123-7873
Please keep safe, be healthy and support each other during this time.