With so many announcements having been made in relation to Covid-19 and the assistance available we thought we would put together this handy resource for you to access just what need.
This is a rapidly changing situation and this list is current as at 14 April 2020.
If your business has been significantly impacted by the Coronavirus you will be able to access a wages subsidy to continue paying your employees. Under the JobKeeper program, you will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum of six months.
This assistance will help you keep staff and will help you restart when the crisis is over.
Fact Sheet: JobKeeper Payment – Information for employers
Fact Sheet: JobKeeper Payment – Protecting Integrity
Frequently Asked Questions: FAQ
The Integrity Measures contain important information about what will happen in the event of fraud.
Employers can register their interest in the JobKeeper payment with the ATO here.
Boosting cash flow for employers
Employers will receive a payment equal to 100 per cent of their salary and wages withheld, with a minimum payment of $10,000 to maximum of $50,000.
An additional payment is also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments.
Fact Sheet: Cash flow assistance for businesses
Supporting apprentices and trainees
Support for apprentices and trainees by way of a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020. Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee
Fact Sheet: Supporting apprentices and trainees
Temporary relief for financially distressed businesses
The threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive is temporarily increasing. The package also includes temporary relief for directors from any personal liability for trading while insolvent, and providing temporary flexibility in the Corporations Act 2001 to provide temporary and targeted relief from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus health crisis.
The ATO will tailor solutions for owners or directors of business that are currently struggling due to the Coronavirus, including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups. Refer below to ATO support to assist those affected by Covid-19 for further details specific to the ATO.
Increasing the instant asset write-off
The instant asset write-off threshold is increasing from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
Fact Sheet: Delivering support for business investment
Backing business investment
A time limited 15 month investment incentive (through to 30 June 2021) is being introduced to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
Fact Sheet: None available
Support for Coronavirus-affected regions and communities
$1 billion has been set aside to support regions most significantly affected by the Coronavirus outbreak.
These funds will be available to assist during the outbreak and the recovery. In addition, the Government is assisting our airline industry by providing relief from a number of taxes and Government charges estimated to total up to $715 million.
Support for immediate cash flow needs for SMEs
This will provide businesses with funding to meet cash flow needs, by further enhancing lenders’ willingness and ability to provide credit. This will assist otherwise viable businesses across the economy who are facing significant challenges due to disrupted cash flow to meet existing obligations. Loans of up to $250,000 will be available for up to three years with an initial six month repayment holiday.
Fact Sheet: Supporting the flow of credit
ATO support to assist those affected by Covid-19
The ATO is offering assistance to assist businesses impacted by COVID-19. Available options include:
- Deferring by up to six months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise
- Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to
- Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters
- Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities
- Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
Employers will still need to meet their ongoing super guarantee obligations for their employees.
To read further about the ATO assistance available click here.
For Individuals & Households
Urgent help with money
If you’re feeling overwhelmed by money or personal issues, it can be hard to know where to turn. You don’t have to go it alone.
In an emergency, there are services to help you with food, housing and bills, as well as emotional support.
If this is you can read further here.
JobKeeper payment for employees
The JobKeeper payment helps businesses significantly impacted by the Coronavirus cover the costs of their employees’ wages, so more Australians can retain their jobs and continue to earn an income. Your employer will notify you if they intend to claim the fortnightly payment of $1,500 on your behalf.
Fact Sheet: JobKeeper Payment – Information for employees
Income support for individuals
Over the next six months, eligibility to income support payments will be expanded and a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This will be paid to both existing and new recipients of JobSeeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.
Fact Sheet: Income support for individuals
Payments to support households
Two separate payments of $750 are being provided to social security, veteran and other income support recipients and eligible concession card holders. The first payment will be made from 31 March 2020 and the second payment will be made from 13 July 2020. Around half of those that benefit are pensioners. This payment will help to support confidence and domestic demand in the economy. The second payment will not be made to those eligible for the Coronavirus supplement.
Fact Sheet: Payments to support households
Temporary early release of superannuation
Individuals affected by the Coronavirus can gain access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
Fact Sheet: Early access to superannuation
Temporarily reducing superannuation minimum drawdown rates
Superannuation minimum drawdown requirements are being temporarily reduced for account-based pensions and similar products by 50 per cent for 2019-20 and 2020-21. This measure will benefit retirees holding these products by reducing the need to sell investment assets to fund minimum drawdown requirements.
Fact Sheet: Providing support for retirees
Reducing social security deeming rates
On 12 March, a 0.5 percentage point reduction in both the upper and lower social security deeming rates were announced. These rates will now reduce these rates by another 0.25 percentage points.
As of 1 May 2020, the upper deeming rate will be 2.25 per cent and the lower deeming rate will be 0.25 per cent. The reductions reflect the low interest rate environment and its impact on the income from savings.
Fact Sheet: Providing support for retirees (part 2 of providing support for retirees)
Covid-19 making financial decisions
During challenging times, making financial decisions can feel overwhelming. There’s support and services available to help you. The Government’s Smart Money website has all you need to know.