Federal Government

1. Support for businesses

Boosting Cash Flow for Employers

The Government is enhancing the measures announced on 12 March 2020. The Government is providing up to $100,000 to eligible small and medium-sized businesses, and not-for-profits (NFPs) that employ people, with a minimum payment of $20,000.
Small and medium-sized business entities with aggregated annual turnover under $50 million and that employ workers are eligible. NFPs, including charities, with aggregated annual turnover under $50 million and that employ workers will now also be eligible.

Under the enhanced scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000.

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.

https://treasury.gov.au/coronavirus/businesses

Increasing the instant asset write-off
The Government is increasing the instant asset write-off threshold 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.

https://treasury.gov.au/coronavirus/businesses

Backing business investment
The Government is introducing a time-limited 15 month investment incentive (through to 30 June 2021) 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.

https://treasury.gov.au/coronavirus/businesses

Supporting apprentices and trainees
The Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for 9 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 apprentice. Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).

https://treasury.gov.au/coronavirus/businesses

Temporary relief for financially distressed businesses
The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and to initiate bankrupt proceedings against an individual as well as temporarily increasing the time companies and individuals have to respond to statutory demands they receive. 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 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.

https://treasury.gov.au/coronavirus/businesses

2. Supporting the flow of credit

Support for immediate cash flow needs for SMEs
Under the Coronavirus SME Guarantee Scheme, the Government will provide a guarantee of 50 per cent to SME lenders to support new short-term unsecured loans to SMEs. The Scheme will guarantee up to $40 billion of new lending. This will provide businesses with funding to meet cash flow needs, by further enhancing lenders’ willingness and ability to provide credit.

https://treasury.gov.au/coronavirus/business-investment

 

 

Quick and efficient access to credit for small business
The Government is cutting red tape by providing a temporary exemption from responsible lending obligations for lenders providing credit to existing small business customers.

This reform will help small businesses get access to credit quickly and efficiently.

https://treasury.gov.au/coronavirus/business-investment


3. Support for individuals and households

Temporary early release of superannuation

The Government is allowing individuals affected by the Coronavirus to 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.

https://treasury.gov.au/coronavirus/households

Temporarily reducing superannuation minimum drawdown rates

The Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent for 2019-20 and 2020-21.

https://treasury.gov.au/coronavirus/households

Income support for individuals
Over the next six months, the Government is temporarily expanding eligibility to income support payments and establishing 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.

https://treasury.gov.au/coronavirus/households

Payments to support households
The Government is providing two separate $750 payments 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. The second payment will not be made to those eligible for the Coronavirus supplement.

https://treasury.gov.au/coronavirus/households

State Government

Business support fund
Eligible businesses can  apply for a $10,000 grant as part of the Victorian State Government’s economic survival package. More info can be found here https://www.westcarrharvey.com.au/news/70-march-2020/735-business-support-fund

Payroll Tax
Payroll tax refunds for the 2019-20 financial year to small and medium-sized businesses with payroll of less than $3 million. 

The same businesses will also be able to defer any payroll tax for the first three months of the 2020/21 financial year until 1 January 2021.

Rent relief
The Government will allow commercial tenants in government buildings to apply for rent relief.

Supplier payments
The Government has announced it will pay all outstanding supplier invoices within five business days.

Support for hospitality sector
The Government will support the hospitality sector by waiving liquor licensing fees for 2020 for affected venues and small businesses.

Support for specific sectors
The government will provide $500 million to establish a Business Support Fund. The fund will support the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.

The Government will establish a $500 million Working for Victoria Fund. The fund will help workers who have lost their jobs find new opportunities, including work cleaning public infrastructure or delivering food.
The Government will also facilitate job matching to help Victorians find short-term or casual roles.

https://www.sro.vic.gov.au/coronavirus

Australian Banking Association
The Australian Banking Association has announced a small business relief package from Australia’s banks. This includes a six month loan deferment on existing loans and putting in place a fast track approval process to ensure customers receive support as soon as possible.

https://www.ausbanking.org.au/campaigns/financial-hardship/

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Last updated 12/04/2020