Cash Boost
Who is eligible?
The cash boost is available to those who meet the following criteria:
- Small/Medium sized enterprises and not-for-profit entities
- Aggregated turnover of less than $50million (if you have associated entities, their turnover will be considered in this threshold)
Eligibility will be based on prior year turnover.
If you do not have prior year turnover, you may still apply, as the ATO may use other information they have on your business to determine whether you will meet the threshold of less than $50million.
What is the relief measure?
Eligible businesses will receive a cash boost dependent on the Pay-As-You-Go withholding declared under their ABN and through Single Touch Payroll.
- The boost is equivalent to 100% of PAYG withheld, up to a maximum of $100,000
- The first payment will be capped at $50,000, paid after 28 April 2020
- The second payment will also be capped at $50,000, to be paid in 4 instalments in July, August, September and October.
- Eligible businesses who pay salary and wages but are not required to withhold PAYG, will receive a maximum payment of $20,000
How do I apply?
- There is no process to apply for this boost
- If you are eligible for this relief measure, the ATO will automatically calculate the amount you are eligible to access at the time of completing your next Business Activity Statement (BAS)
- This will appear on your Running Balance Account with the ATO and hence reduce any tax liabilities you have including PAYG and GST.
Fact Sheet
Instant Asset Write Off
Who is eligible?
- Businesses with an aggregated turnover of less than $500million
What is the relief measure?
- Each asset purchased for up to $150,000 and ready to use between 12 March 2020 and before the 30 June 2020 within the business, can be instantly written off in your accounting records
- This can include machinery, equipment, computers and other hardware, business cars
- The business proportion of the cost of the asset can be claimed as a tax deduction
- Applies to both new and secondhand assets
How do I apply?
- Consult your tax accountant to confirm how these purchases can be recorded in your books and claimed on our tax return
- For further information, please consult the ATO website
Unsecured loans and freeze on loan repayments
Who is eligible?
Those who will be able to access unsecured loans will need to:
- Be a small or medium sized business including a sole trader
- Have an annual turnover of less than $50million in the previous financial year. If this is the first financial year in which you are operating, you will be eligible if your turnover is likely to be less than $50million in the current financial year
What is the relief measure?
Eligible businesses will have access to a:
- Loan of up to $250,000
- Loan term of 3 years
- Freeze on repayments for the first 6 months of the loan term
- A drawdown facility that allows applicants to only pay interest on the amounts they withdraw.
As the Government has secured these loans, applicants will not be required to provide an asset as security to apply for this measure.
Applicants will be subject to credit assessment processes, but will take into account the current economic climate.
How do I apply?
To apply for this measure, contact your financial institution for assistance
Loans will be available to apply for from April 2020 up to September 2020.
Further information
https://treasury.gov.au/coronavirus/sme-guarantee-scheme
Payroll Tax Relief Measures
Most States and Territories have introduced payroll tax relief measures to assist businesses financially during the COVID-19 pandemic.
New South Wales
- Who is eligible?
- Businesses who have grouped Australian taxable wages of less than $10million
- Businesses who have grouped Australian taxable wages of more than $10million
- What is the relief measure?
- For those with Australian grouped taxable wages of less than $10million:
- Waiving of payroll tax liability for April, May and June 2020
- Three month deferral on payroll tax for July to September 2020
- Have their annual payroll tax liability, due in July, reduced by 25%
- For those with Australian grouped taxable wages of more than $10million:
- Deferral of payroll tax for up to 6 months
- Returns still need to be lodged in line with obligations, but not payment will be required until after 6 months
- The payroll tax threshold will increase to $1,000,000 from 1 July 2020
- For those with Australian grouped taxable wages of less than $10million:
- How do I apply?
- Nothing is required to apply for the discount or waiving of payroll tax. If you are eligible for these measures, the Office of State Revenue will automatically apply these to your entity.
- The application process for deferral of payroll tax is still to be determined
Victoria
- Who is eligible?
- Businesses who have annual Victoria Taxable wages of less than $3million
- What is the relief measure?
- Eligible businesses will have:
- Their payroll tax liability waived for 2019-2020 financial year
- Three month deferral on payroll tax for July to September 2020
- To still continue to lodge their returns in line with their current frequency but, no payment will be required
- Eligible businesses will have:
- How do I apply?
- The Victoria Office of State Revenue will contact all eligible businesses to discuss refunds of payroll tax already paid
Queensland
- Who is eligible?
- Businesses who have grouped Australian taxable wages of less than $6.5million
- Businesses who have grouped Australian taxable wages of more than $6.5million
- Businesses who have been directly or indirectly affected by COVID-19 and have experienced a decrease in business activity and turnover compared to normal operations
- What is the relief measure?
- For those with Australian grouped taxable wages of less than $6.5million:
- Will be eligible for a refund of two months’ payroll tax (November and December)
- A three month payroll holiday (ie no payroll tax to be paid for Jan to march)and
- deferral of payroll tax for the 2020 calendar year
- How do I apply?
- Application can be made here
Western Australia
- Who is eligible?
- Businesses who have taxable wages of between $1million and $4million
- Businesses who have grouped Australian taxable wages of more than $7.5million
- What is the relief measure?
- For those with taxable WA wages of between $1million and $ 4 million
- A one off grant of $ 17,500.00 will be given to employers
- For those with Australian grouped taxable wages of less than $7.5million:
- Payroll tax will be waived for March to June
- For those with taxable WA wages of between $1million and $ 4 million
- How do I apply?
- Please review the WA Government website here
South Australia
- Who is eligible?
- Businesses who have Australian taxable wages of up to $4million
- Businesses who have Australian taxable wages above $4million
- What is the relief measure?
- For those with Australian taxable wages of upto $ 4 million
- Waiver of payroll tax liability for six months
- For those with Australian grouped taxable wages of greater than $4 million:
- Payroll tax will be deferred for six months
- For those with Australian taxable wages of upto $ 4 million
- How do I apply?
- Please review the SA Government website here
ACT
- Who is eligible?
- Businesses operating in what has been deemed as prohibited business activity in the ACT:
- Food and drink
- Beauty and personal care services
- Entertainment venues
- Leisure and recreation
- Residential facilities (including hotels, apartments and hostels)
- Outdoor recreation
- Non-residential institutions (including galleries, museums and community facilities)
- Other – as contained at www.covid19.act.gov.au/economic-support/information-for-business
- Businesses operating in what has been deemed as prohibited business activity in the ACT:
- What is the relief measure?
- Waiving of payroll tax for 6 months from April to September 2020
- How do I apply?
- Please review the ACT Government website here
TAS
- Who is eligible?
- Businesses with annual Australian Group wages of up to $5million
- Businesses operating in the hospitality, tourism and seafood industries
- Businesses who pay wages to worker under 24 years old
- What is the relief measure?
- For those businesses with annual Australian Group wages of up to $5million
- Waived payroll tax liability for the 2019/2020 financial year
- Must be able to demonstrate their operations have been affected by COVID-19
- For those businesses operating in the hospitality, tourism and seafood industries:
- Waived payroll tax liability for the 2019/2020 financial year
- For those businesses who pay wages to worker under 24 years old:
- 12 month payroll tax rebate for approved businesses for new workers aged 24 or under
- Workers must be employed between 1 April 2020 and 31 December 2020
- For those businesses with annual Australian Group wages of up to $5million
- How do I apply?
- Please review the TAS State Revenue website here
Other measures:
QLD interest free loan
Low interest loans of up to $250,000 are available to assist with carry-on expenses such as employee wages, rent and rates and other related expenditure. Eligible business types include sole traders, partnerships, private and public companies and Trusts. For more information, please visit the QLD Government website here.
VIC business support grant
The Victorian Government is offering eligible businesses a $10,000 grant to assist through COVID-19. Businesses who employ staff, have a turnover of over $75,000 and process payroll of less than $650,000 may be eligible. For further information, please see here.
WA energy bills
All small businesses who are customers of Synergy and Horizon, will be offered a one-off $2,500 credit off their future utility bills. This will be credited from 1 May 2020.
Power and water services will not be suspended if bills are not paid on time and neither will interest be charged on late payments either.
TAS interest free loans
The Tasmanian Government has offered interest free loans of up to 3 years to businesses with a turnover of less than $10million who operate in the hospitality, tourism and seafood industries. Details are yet to be released, but the loans are intended to assist businesses with purchasing equipment or restructuring operations.
TAS utility bill relief
Eligible small businesses will have their water and electricity bills waived for the first quarterly billing cycle after 1 April 2020. Electricity bills will be capped for the next financial year and water bills will be frozen.
TAS Training and advice
Businesses can access free advice regarding business continuity and cash flow from Rural Financial Counselling Service.
ACT Electricity rebate
Businesses who have an electricity usage of less than 1000 megawatts per year, will receive an automatic rebate of $750 on their next bill, regardless of their supplier.
ACT Advice
Businesses can access up to 4 hours of face-to-face small business and business management advice. Online resources will be available as well too.
JobKeeper – Sole Traders/Small Businesses
You and your business may be eligible for the JobKeeper wage subsidy to assist with wages you pay under your ABN.
To qualify for the subsidy:
- If you have a turnover of less than $1bn, you must have lost 30% or more of your revenue compared to a comparable period a year ago.
- If you have a turnover of $1bn or more, you must have at least a 50% reduction in revenue compared to a comparable period a year ago.
- For registered charities the threshold is a decline in turnover of 15% or more, under changes announced on 6 April.
If you receive the subsidy, you must pay this to your workers as a minimum.
You will need to register your interest through the ATO if you believe you may be eligible and pay wages through your ABN.
Code of Conduct commercial leases
The Federal Government has introduced a Code of Conduct for commercial tenancies to assist tenants and landlords in negotiations regarding their leasing and tenancy arrangements, in response to the financial impact of COVID-19.
This will be legislated and regulated by each State and Territory and eligible to tenants who:
- Have a turnover of less than $50million and
- Have a 30% or greater loss in revenue
CORONAVIRUS SUPPLEMENT
If you are an individual, whose job has been impacted by Coronavirus, there is a welfare payment now deemed the Coronavirus Supplement, that may be available to you.
Who is eligible?
This is available to those already receiving the below:
- Jobseeker Payment (and all payments progressively transitioning to JobSeeker Payment; those currently receiving Partner Allowance, Widow Allowance, Sickness Allowance and Wife Pension)
- Youth Allowance Jobseeker
- Parenting Payment (Partnered and Single)
- Farm Household Allowance
- Special Benefit recipients
Please note, the Coronavirus supplement is in addition to the Jobseeker Payment.
During the Coronavirus supplement period (from 27 April 2020 for 6 months), this payment will also be extended to the below:
- Sole traders
- Self-employed workers
- Casual workers
- Contract workers
- Caring for someone who has been affected by Coronavirus
What is the relief measure?
The payment is $550 a fortnight and is income tested. If you earn less than $1,075 a fortnight, you may be eligible for the supplement. This payment is taxable for income tax purposes.
How do I apply?
If you are already receiving a welfare payment, you do not need to do anything. This payment will be paid to you automatically from 27 April 2020.
If you are not receiving a welfare payment, applicants will need to apply via the myGov website and provide all necessary and required documentation. If you do not already deal with Services Australia, you will need to set up your myGov account, call to verify your identity and get a link to their Centrelink online account.
Fact Sheet
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf
EARLY ACCESS TO SUPERANNUATION
In response to Coronavirus, the Government is allowing eligible individuals access to their superannuation. Ordinarily this can only be accessed once you reach a particular age.
Who is eligible?
To be eligible for this scheme:
- You must be unemployed; or
- You must be eligible to receive a jobseeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or
- On or after 1 January 2020:
- You were made redundant; or
- Your working hours were reduced by 20 per cent or more; or
- If you are a sole trader, your business was suspended or there was a reduction in your turnover of 20 per cent or more.
What is the relief measure?
Eligible individuals will be able to access up to $20,000 from their superannuation, over the next two financial years
- $10,000 can be accessed this financial year before 1 July 2020
- $10,000 can be access next financial year between 1 July 2020 and 24 September 2020
Please note that these withdrawals are tax free and will not affect any Centrelink or Veterans Affairs payments you may already be receiving or have applied to receive.
How do I apply?
If eligible for the withdrawal, individuals can apply online through myGov from 20 April 2020 and before 1 July 2020 for the first withdrawal.
You will need to certify that you meet the eligibility criteria and upon submission, the ATO will assess whether you qualify for the early withdrawal
- Please note we recommend you seek independent financial advice from an authorised source when considering this option.
- Making withdrawals from your super account can affect your income protection and life and disability insurances.
- Insurance may also not be available where the balance of your account is less than $6,000 or if the account has been fully withdrawn.
Fact Sheet
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Early_Access_to_Super_1.pdf