We have compiled a list of Federal & State Government assistance that has been announced for both businesses and individuals, which will help you understand what is available to you.
You will be aware that things are changing almost daily and even some of the information below is short on clarity on how to access.
FOR BUSINESS
PAYG WITHHOLDING REBATES
- The government has announced that it will be providing between $20,000 and $100,000 to eligible small businesses who employ people (including owners)
- Businesses with turnover of less than $50 million will qualify, as well as not-for-profits
- This will come in the form of a credit on your activity statement for 100% of the PAYG withheld
- This measure will be in place until October 2020
TEMPORARY RELIEF FOR FINANCIALLY STRESSED BUSINESSES
- The government has increased the threshold at which creditors can issue a statutory demand and the time businesses have to respond to statutory demands
- There is also temporary relief for directors for any personal liability for trading whilst insolvent
- The ATO will allow deferral or temporary reduction of payments for up to 4 months for the following – GST, PAYG, Income Tax, FBT & Excise
- The ATO will also temporarily withhold enforcement action such as Director Penalty Notices and Winding-Up Notices
- Business on a quarterly GST reporting cycle will be able to change to monthly GST in order to access GST refunds more quickly
INSTANT ASSET WRITE OFF
- The government has increased the instant asset write-off threshold from $30,000 to $150,000
- This can be accessed by business with an aggregated annual turnover of less than $500 million
INVESTMENT ALLOWANCE
- The government has introduced an investment incentive which will allows businesses to deduct 50% of the cost of an asset when it is installed, with existing depreciation rules to apply to the balance of the assets cost
- This will apply up until 30 June 2021
- This can be accessed by businesses with an aggravated turnover of less than $500 million
- An example of this would be a business purchasing an asset worth $300,000. Ordinarily they would only be able to deduct 15% in the first year ($45,000). Under the investment allowance, the business could claim 50% of the asset cost plus the 15% in the first year ($195,000 deduction in the first year)
EMPLOYING APPRENTICES/TRAINEES
- Eligible employers can apply for a wage subsidy of 50 percent of the apprentice/trainees wage for 9 months (1 January 2020 to 30 September 2020)
- Employers will be subsidised up to $21,000 per eligible apprentice/trainee ($7,000 per quarter)
GUARANTEEING LOANS
- The government will provide a guarantee of 50 percent to lenders for unsecured business loans for small businesses
- This applies to loans up to $250,000
- The government will guarantee the loan for up to 3 years
PAYROLL TAX REFUNDS
- The Victorian government has announced Payroll Tax cash refunds for businesses
- They will refund the payroll tax paid in the first 3 quarters of the current financial year
- This applies to business with a payroll of less than $3 million
GOVERNMENT GRANTS
- The Victorian government has also announced $500 million in funding for those businesses doing it tough as a result of the Coronavirus
- This will be spent in the form of hardship payments, small grants and business support services
- Further details to be announced regarding who will qualify and how to apply for the grants
PAUSE ON BUSINESS LOAN REPAYMENTS
- Banks will be allowing customers to freeze their business loan repayments for up to 6 months
- Please contact your bank to see whether you qualify
When speaking to your staff about their employment in this crisis, there are a number of touch points for individuals in the government’s efforts in stimulus
Some legal allowances were just announced too:
In particular, the government intends to relieve directors from the risk of personal liability for insolvent trading, where the debts are incurred in the ordinary course of business.
In addition, the minimum threshold at which creditors can issue a statutory demand will increase from $2,000 to $20,000, and companies will have 6 months to respond to the statutory demand rather than the current 21 days. Other measures are also included in the proposal, details of which are set out below.
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf
FOR INDIVIDUALS
NEWSTART/JOBSEEKER PAYMENTS
- The government have announced a temporary (6 month) Coronavirus Supplement of $550 per fortnight for Jobseekers in addition to the current payments
- They have also waived asset tests and waiting periods for those who are recently unemployed
- The supplement is also available to casuals and sole traders who earn less than $1,075 per fortnight
ACCESSING SUPERANNUATION
- Those eligible for the Coronavirus Supplement or sole traders/casuals whose hours or income have fallen by at least 20% or more as a result of the Coronavirus may be able to access their superannuation
- Withdrawals will be capped at $10,000 this financial year and a further $10,000 next financial year and will be tax free
PAUSE ON HOME LOAN REPAYMENTS
- Some banks are allowing you to freeze your mortgage repayments for up to 6 months
- You will need to contact your bank to see whether you qualify
$750 GOVERNMENT PAYMENTS
- 2 payments of $750 will be made to those receiving the Age Pension, Carers Allowance, Family Tax Benefits and Commonwealth Seniors Card Holders, as well as those in receipt of other income support payments
- The first payment will be made from 31 March 2020
- The second payment will be made from 13 July 2020