COVID-19 Stimulus Packages

 

Stimulus Packages
COVID-19

Boosting cash flow for employers

  • <50m turnover – eligibility based on prior year turnover
  • Active employers established before 12th March 2020
  • Cash Payments of up to $100,000 help pay wages or hire extra staff
  • Minimum of $20,000 for all employers, even if they are not required to withhold tax
  • First payment will be as an automatic credit for March 2020 BAS from 28th April 2020
  • An Additional Payment for the businesses that maintain their activities will be applied in June 2020 and September 2020 BAS’s

Instant Asset Write Off

  • <$500m turnover
  • Threshold increase from $30k to $150k
  • Asset must be installed and ready for use by 30th June 2020
  • Only applies until 30th June 2020

50% Subsidy Apprentice Wages

  • Wage subsidy of 50% of apprentice or trainee wages for up to 9 months from January to September 2020
  • The apprentice or trainee must have been in training with a small business as at 1st March 2020
  • Available to SME employing fewer than 20 full-time employees who retain an apprentice or trainee
  • Maximum of $21,000 per apprentice or trainee ($7,000 per quarter)
  • Registration starts 2nd April 2020
  • Final claim can be lodged by 31st December 2020

ATO Tailored Support Measures

  • Option to vary PAYG income instalment for March 2020 to Nil
  • Option to claim a refund for PAYG income instalment for September and December 2019 quarters
  • Ability to remit any interest and penalties incurred on or after 23rd January 2020
  • Assisting businesses to pay ATO debts including low interest payment plans
  • Quarterly reporters can opt in for monthly reporting to get access to GST refunds faster

JobKeeper Payment

  • Claim $1,500 per fortnight for each employee – including self-employed
  • Must register an intention to apply on the ATO website
  • Must have the turnover reduced by more than 30% relative to a comparable period a year ago (of at least a month) for businesses with turnover < $1bi
  • Business not subject to the Major Bank Levy
  • Employment must have been active at 1 March 2020
  • Employees must be full-time, part-time, or long-term casual employed for longer than 12 months as at 1 March 2020
  • Employees must be at least 16 years of age, must meet residence requirements and must not be in receipt of a JobKeeper payment from another employer

Accelerated Depreciation

  • <$500m turnover
  • Must not be using simplified depreciation rules
  • 50% deduction of the cost of the asset
  • Existing depreciation rules apply to the balance
  • Asset must be installed and ready for use by 30th June 2021

SME Guarantee Scheme

  • <$50m turnover
  • 50% government guarantee on new loans for SME’s up to $250k
  • Operates from 1st April 2020 to 30th September 2020
  • 3 years term – Initial 6 months repayment holiday
  • Unsecured Loans – no need to provide an asset to secure the loan

Early Access to Super

  • Access $10k before 1st July 2020 and $10k after 1st July 2020
  • Apply via myGov from mid-April
  • Must meet one of the following:
    • Eligible to receive job seeker payment, youth allowance or youth allowance
    • Unemployed
    • On or after 1 January 2020 either:
      • Made redundant
      • Working hours reduced by at least 20%
      • Sole trader turnover reduced by at least 20%