At Business Backup we are committed to ensuring that all of our clients are provided with timely and useful information, especially now with the impact of the Coronavirus pandemic. Below is a summary of the stimulus package released by the Government on Sunday.
We will be in contact with our business clients in the coming weeks to discuss how these measures apply to your individual circumstances. If your business has been impacted significantly and you require urgent advice, please contact us on 1300 36 11 96 or email firstname.lastname@example.org.
Cash flow boost for employers – if you are an employer you may be eligible for a payment of up to $100,000 (minimum of $20,000) to assist them in retaining staff. This will be accessed via a tax-free cash payment to your ATO account to offset PAYG withheld from wages between January 2020 and October 2020 and will be applied as your activity statements are lodged.
Support for employers of apprentices and trainees – if you are an employer of less than 20 full-time employees can apply for a 50% reimbursement of wages paid to apprentices and trainees between 1 January 2020 and 30 September 2020, up to a maximum of $21,000 ($7,000 per quarter) for each apprentice or trainee.
Support for immediate cash flow needs – Small to medium business will have increased access to unsecured bank loans to be used for working capital, as lending obligations by banks are relaxed from April 2020.
Instant asset write off increase – the instant asset write-off threshold has been increased from $30,000 to $150,000 for assets purchased during the period 12 March 2020 to 30 June 2020.
15 month investment incentive – access to accelerated depreciation deductions in the form of a 50% immediate deduction of the cost of eligible assets purchased during the period 12 March 2020 to 30 June 2021.
Fact Sheet: Cashflow Assistance for Businesses
Fact Sheet: Delivering Support for Business Investment
If you are experiencing hardship, please contact us and we can help you determine your eligibility for the payments below and discuss any other options which may be available.
For Casual Employees, Sole Traders & Households
The $550 Coronavirus Supplement – this will be automatically available if you’re already getting an income support payment such as JobSeeker or Parenting Payment and will be in addition to your normal benefit. It will be paid from 27 April 2020 for up to 6 months.
If you’re a permanent employee who has been stood down or lost your job, a sole-trader, casual or contract worker whose income has reduced, or are caring for someone affected by coronavirus, you will be able to apply for JobSeeker or Youth Allowance payments, and if approved you will also receive the supplement benefit. The usual waiting period is waived for 6 months.
$750 stimulus payment – If you are not eligible for the Coronavirus Supplement, you may still receive the second $750 Economic Support Payment if you are eligible on 10 July 2020 for any of the payments or concession cards that were eligible for the first payment that was paid in March. This will be paid from 13 July 2020.
Superannuation Access – Sole traders or casual workers who have had their incomes reduced by 20% or more as a result of coronavirus, or are eligible for the coronavirus supplement, will be able to apply to access up to $10,000 of their superannuation tax-free.
Pension deeming rates to be reduced by 0.25% from 1 May 2020 – this should effectively increase your pension benefits. On average it is expected that a person on the Age Pension will receive around $105 more in the first full year that the reduced rates apply.
Reduction in superannuation minimum drawdown requirements – If you are receiving an account-based pension, the minimum drawdown percentage has been reduced by 50% for the 2019-20 and 2020-21 income years. This will enable retirees to manage their superannuation investments and income accordingly and not be forced to sell investments during the market and economic downturn.
Some more useful links: