Government COVID-19 Measures Compiled - 9 April 2020

Thursday 9 April 2020

In this month’s edition of the Horizon Accounting Group newsletter we have compiled the most critical information related to Government COVID-19 measures in a format we hope provides easy reading and understanding.

This information is as up to date as we can make it but with information being drip fed by the Federal Government on a daily basis it is subject to change.

Please contact us for help
If you need help with your personal or business financial arrangements during this difficult time please don’t wait to get in touch with us.  Our office is operating efficiently and effectively via remote access and we want to ensure we can address your questions and concerns before you take any action based on the information being released by the Government.

Federal business initiatives

Asset write-off and depreciation
The instant asset write-off threshold will be increased from $30,000 to $150,000 and expanded to include access for businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.

A time-limited 15-month investment incentive (through to 30 June 2021) will also be provided to support business investment by accelerating depreciation deductions.

Cashflow boost
The Government is providing a tax-free cash flow boost of between $20,000 and $100,000 to eligible businesses (and not-for-profit entities) with an aggregated turnover under $50 million.  This boost is intended to support employers to retain their employees and is delivered through credits in the activity statement system, when eligible employers lodge their activity statement.

The cash flow boost comprises the 'first cash flow boost' series and a 'second cash flow boost' series.  There is a minimum of $10,000 and a maximum of $50,000 for each cash flow boost series.  The boosts are to be delivered as a series of credits linked to monthly or quarterly periods. This payment will be available to a most employers from 28th April 2020.

Apprentice or trainee subsidy
Eligible small businesses employers can apply for a wage subsidy of 50% of an apprentice’s or trainee’s wage for up to nine months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that same apprentice.

SME loan guarantee scheme
A Coronavirus SME Guarantee Scheme will be established to support SMEs in getting access to working capital. Under the scheme, the government will guarantee 50% of new loans issued by eligible lenders. The scheme is able to support $40 billion worth of lending to SMEs.

Jobkeeper payment
The Federal Government announced a $130 billion package to subsidise the wages of Australian workers who have been hit by the public health crisis. Through administration by the Australian Taxation Office (ATO) from 1 May 2020, all eligible employers are to directly receive – and then pay – their retained employees at least $1,500 per fortnight, before tax.
 
Which employees can get it?

Workers who are at least 16 years of age and are:

• Full-time and part-time workers
• Casual employees who have been with their employer for at least 12 months
• Citizens, permanent visa holders, New Zealanders on 444 visas
• Not receiving JobKeeper from any other employer

So, what gets paid?

• For workers already receiving $1,500 a fortnight, their income is unchanged
• For workers getting less than $1,500, the employer needs to pay them $1,500
• For workers earning more than $1,500, the employer can choose to provide a top-up above the amount.

Federal household initiatives

Stimulus for income support recipients
Pensioners, social security, veteran and other income support recipients and eligible concession card holders will receive an initial $750 stimulus payment from 31 March 2020 on a progressive basis, with over 90% of payments expected to be made by mid-April. This payment will be tax-free and not count as income for social security, farm household allowance and veteran payments.

A second payment of $750 will be made to the same recipients from 13 July 2020.

Superannuation early release
Individuals in financial distress as a result of the pandemic will be allowed to access a tax-free withdrawal of up to $10,000 from their superannuation in th 2019-20 year and again in the 2020-21 year.  Applications must be made through myGov before 1 July 2020 for this year’s withdrawal.

Childcare
From 6 April 2020 the Federal Government is paying 50% of the operating costs of Australia’s 13,000 childcare and early learning centres.  This will make childcare free in Australia for those who continue to need it.

Qld Government business initiatives

$950 million payroll tax relief

All small and medium businesses (annual payrolls of $6.5 million or less) in Queensland will be eligible for:

• A two month refund of payroll tax
• A three month payroll tax holiday
• Deferral of all payroll tax payments for the remainder of 2020

Larger businesses will be eligible for a two month refund and be able to defer all payroll tax payments until the end of 2020.

$500 million jobs support loans
A loan facility of at least $500 million, interest free for the first 12 months, is being created to support Queensland businesses impacted by COVID-19 to retain employers and maintain operations.

$100 million electricity bill relief
Sole traders, small and medium businesses will get a $500 rebate on their power bill provided they are consuming less than 100,000 kilowatt hours.

Qld Government household initiatives

$500 million retraining assistance
 UP to $500 million will be spent to assist works who lose their job or income with retraining, job-matching and other help to transition to jobs in industries that are vital to get Queensland through this crisis.  Businesses that need access to skilled labour to meet demand will also receive assistance.

$200 electricity credit
Queensland households will receive an automatic $200 credit on their electricity bills.

Contact us
Our new remote working arrangements have not impacted our ability to provide the financial advice you need.  Please contact us with any questions or concerns you may have about how these measures may apply to your situation.

 

Back