COVID-19 Business Assistance Measures

Here is a summary of measures announced to date.
For Coronavirus payroll tax relief (Queensland), scroll down below.
For assistance with your payroll and bookkeeping please contact AURIC Financial.

Sole Traders (Summary) – Initial Measures

1. Refund of previously paid Instalments (An ATO administrative measure)
Any PAYGI instalments paid as a result of the September 2019 and December 2019 Quarterly Activity Statements can be credited and potentially refunded.

2. If income reduced by 20% then eligible for Jobseeker support and the Supplement of $550 per fortnight.

3. Asset writeoff provisions apply

4. Working capital Unsecured loans up to $250k (Subject to reduced bank assessment requirements)

Ministers Media Release – Sole traders

UPDATED Government Program as of 22 March 2020

Narrative in RED are the significant changes to previously announced provisions

UPDATE:  PAYGW credit of up to $100k for employers (Previously $25k) paid in two allotments.
It is not law yet! It is extremely likely to become law. Both sides of Parliament have indicated their support for these measures.

Sole Traders and Self Employed are considered eligible for Jobseeker payment and the special fortnightly payment.   Note:  the ATO initiative below to stop paying PAYGI provides a cashflow timing benefit.

Summary: Government – Treasury Initiatives

Businesses with turnover below $500m

1. Instant Asset write off up to $130k per asset – Only until 30 June 2020

2. 50% instant depreciation for “certain” assets – until 30 June 2021

Employers (including NFPs) with turnover below $50m

3. 3/ Credit on BAS for 100% of PAYGW up to $100k

Employers of Apprentices or Trainees with less than 20 Employees

4. Subsidy of 50% of wages for 9 months to max of $21k per apprentice

Regional Support

5. $1b funding made available to support regions on a case by case basis

Individuals

6. Payments of two amounts of $750 for Jobseeker (Newstart) recipients and other Social Security Recipients

7. $550 per fortnight payment to new and existing Job Seeker Payments and other recipients including Sole Traders whose income has dropped (details awaiting but 20% drop was announced) *

8. Upon loss of Job:  Income Support for Job Seekers with a waive of the Asset test and no waiting period.

9. Access to Superannuation of $10k before June 30 & another $10k after

Sole Traders in business

*7/ $550 per fortnight payment to Sole Traders whose income has dropped by 20% or more

Lending Support for Business

10. Lending / Borrowing Capacity increased

11. Banks deferring repayments for 6 months (subject to detail)

12. Unsecured loans upto $250k

Struggling Businesses

13. Directors personal liability relief

14. Longer times before Liquidation action

Increase the thresholds before a creditor can instigate liquidation action:

——— Amounts over $20k

——— Outstanding for more than 6 months.

Awaiting:  Trust Beneficiaries – We are informed there is an announcement coming but not today.

Thanks to the Institute of Certified Bookkeepers for this information.

Coronavirus payroll tax relief (Queensland)

You may be eligible for one or more of a range of payroll tax relief measures as a result of the impacts of coronavirus (COVID-19).

These include:

• refunds of payroll tax for 2 months
• a payroll tax holiday for 3 months
• deferral of paying payroll tax for the 2020 calendar year.

Eligibility

If you are an employer (or part of a group of employers) who pays $6.5 million or less in Australian taxable wages, you may receive an email about a:

• refund of your payroll tax for 2 months
• payroll tax holiday (i.e. no payroll tax to be paid) for 3 months.

You can also apply for a deferral of payroll tax for the 2020 calendar year. (If you have already applied for a deferral, you do not need to reapply – it will be extended.)

If you do not receive an email, or you are unsure about your eligibility, complete the refund/holiday application form.

If you are an employer (or part of a group of employers) who pays more than $6.5 million in Australian taxable wages and have been negatively affected (directly or indirectly) by coronavirus, you can apply for a:

• deferral of payroll tax for the 2020 calendar year (If you have already applied for a deferral, you do not need to reapply – it will be extended.)
• refund of your payroll tax for 2 months.

A business is directly or indirectly affected by coronavirus if their current turnover, profit, customers, bookings, retail sales, supply contracts or other factors are negatively affected compared with normal operating conditions.

Thanks to the Queensland Government website for this information.

For assistance with your payroll and bookkeeping please contact AURIC Financial.