COVID-19 Coronavirus Australian Gov Stimulus Package Traker

Quick list of infomation we collected, so far…

Q&A

Can I access to the $100,000 cash booster

You will be eligible to receive the cash flow boost if you are a small or medium business entity, including not-for-profit organisations, sole traders, partnership, company or trust that:

  • held an ABN on 12 March 2020 and continues to be active
  • has an aggregated annual turnover under $50 million (generally based on prior year turnover)
  • made eligible payments you are required to withhold from (even if the amount you need to withhold is zero).

Eligible payments include:

  • salary and wages
  • director fees
  • eligible retirement or termination payments
  • compensation payments
  • voluntary withholding from payments to contractors.

In addition, you must also have either:

  • derived business income in the 2018–19 income year and lodged your 2019 tax return on or before 12 March 2020
  • made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant activity statement on or before 12 March 2020.

We will generally determine whether you are a small or medium business entity based on your most recent income tax assessment for a prior year. However, where you do not have any income tax assessments for prior years, you may still be eligible if we are satisfied, based on other information we hold, that you are in business and would have an aggregated annual turnover under $50 million.

We may also give you further time to provide us notice that business income or supplies were made. This will generally be the case where you have a lodgment deferral in place. If you did not have a lodgment deferral in place, you will not become eligible if you lodge or amend returns for those periods now.

Eligibility for additional cash flow boosts

All eligible entities that received initial cash flow boosts may be entitled to additional cash flow boosts.

Not for profit organisations including charities

To be eligible, not-for-profit organisations (excluding charities) must have all of the following:

  • held an active ABN on 12 March 2020
  • have an aggregate annual turnover of less than $50 million
  • made payments to employees.

Charities registered with the Australian Charities and Not-for-profits Commission are eligible, regardless of when they were registered, if they meet the other eligibility requirements.

We will use the aggregated annual turnover in the most recent previous year’s tax return to determine eligibility.

If a not-for-profit organisation or charity is not required to lodge a tax return, they may still be eligible if we are satisfied, based on information available, that their aggregated annual turnover is under $50 million.

 

ATO website: https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/

Any legal factor should I consider for reduce labour cost?

yes, please refer to FairWork https://coronavirus.fairwork.gov.au/

 

HR consultant:

 

Felicity Wu

Red Broking HR

felicity@redbrokinghr.com

 

Karen Vercoe 

The HR People

0408 008 678

kvercoe@thehrpeople.com.au

 

Who should I contact for my business loan?

Please contact George Sha from Balanz:

email: george.sha@balanz.com.au

What about my insruance cover? Who should i talk to?

Ben Liu

Red Broking

ben@redbroking.com

Do I need a will?

Please contact

Loan Chow

YHC Lawyer

lchow@yhclawyers.com.au

Can I access to my super?

You could, but should talk to a financial planner before the move. 

https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Early-access-to-your-super/

Any assist with my shop rental?

so far there is no assist in this area, should talk to your land load direct.

QLD Coronavirus payroll tax relief

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.

https://www.business.qld.gov.au/running-business/employing/payroll-tax/lodging/coronavirus-tax-relief

NSW waives payroll tax in COVID-19 response

NSW Premier Gladys Berejiklian has now committed $450 million to waive the payroll tax for businesses with payrolls of up to $10 million for three months ending 30 June 2020.

Further, the NSW government will bring forward the raising of the payroll tax threshold to $1 million from 1 July 2020, up from $900,000 and one year earlier than planned.

https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/payroll-tax

WA defer payroll tax

Apply to defer lodgment and payment of payroll tax returns if your business has been directly or indirectly impacted by COVID-19.  Submit the application form via a web enquiry.

Your business is eligible if you are

  • a non-grouped business with annual Australian taxable wages not exceeding $7.5 million
  • a grouped business with the group’s annual Australian taxable wages not exceeding $7.5 million.

A business is directly or indirectly affected if the current turnover, profit, customers, bookings, retail sales, supply contracts or other factors, compared with normal operating conditions, have been directly or indirectly affected by COVID-19.

See information about payroll tax relief available for businesses impacted by the coronavirus.

 

https://www.wa.gov.au/government/publications/application-defer-payroll-tax-covid-19

Solvency safety net

A temporary increase in 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;
• A temporary increase in the threshold for a creditor to initiate bankruptcy proceedings, an increase in
the time period for debtors to respond to a bankruptcy notice, and extending the period of protection
a debtor receives after making a declaration of intention to present a debtor’s petition;
• 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 for companies
from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus
health crisis.
For owners or directors of a business that are currently struggling due to the Coronavirus, the ATO will
tailor solutions for their circumstances, including temporary reduction of payments or deferrals, or
withholding enforcement actions including Director Penalty Notices and wind-ups.

Click to access Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf

 

Coronavirus SME Guarantee Scheme - supporting the flow of credit

The Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme will support up to $40 billion of lending to SMEs.

Under the Scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs.

The Scheme will enhance lenders’ willingness and ability to provide credit, supporting many otherwise viable SMEs to access vital additional funding to get through the impact of Coronavirus.

The Scheme will be available for new loans made by participating lenders until 30 September 2020.

The Government will provide eligible lenders with a guarantee for loans with the following terms:

  • SMEs, including sole traders, with a turnover of up to $50 million.
  • Maximum total size of loans of $250,000 per borrower.
  • Loans will be up to three years, with an initial six month repayment holiday.
  • Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.

https://treasury.gov.au/coronavirus/sme-guarantee-scheme

 

Sole traders and self-employed eligible for Jobseeker payment

The eligibility criteria to access income support payments will be relaxed to enable the self-employed and sole traders whose income has been reduced, to access support.

More:

Early release of superannuation

From mid-April, individuals in financial distress will be able to access up to $10,000 of their superannuation in 2019-20, and a further $10,000 in 2020-21. The withdrawals will be tax free and will not affect Centrelink or Veterans’ Affairs payments. 

To be eligible to access your superannuation you need to meet the following requirements:

  • you are unemployed; or
  • you are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or
  • on or after 1 January 2020:
    • you were made redundant; or
    • your working hours were reduced by 20% or more; or
    • if you are a sole trader — your business was suspended or there was a reduction in your turnover of 20% or more.

 

For those eligible to access their superannuation, you can apply directly to the ATO through the myGov website. 

More:

Lord Mayor announces Council business fee waiver

Lord Mayor Adrian Schrinner has announced Brisbane City Council will waive all charges, rents, levies and permit fees effective immediately for all businesses, as they face economic hardship caused by coronavirus impacts.

The $7.9 million business relief package will apply to businesses and Council lessees who will have a range of fees and charges waived for the next three months.

 

https://www.brisbane.qld.gov.au/community-and-safety/community-safety/disasters-and-emergencies/coronavirus-council-updates-and-impacts/lord-mayor-announces-council-business-fee-waiver

More info?

Let’s get through this together!