Please click on the relevant section to view any relevant Covid-19 Tax updates

Jobkeeper for Individuals Update

After the 28th of September, the JobKeeper eligibility criteria will change for Employers and if they are still eligible the Jobkeeper Allowance will be reduced to $1,200 and for those working less then 20 hours a week the allowance will be reduced to $750

[If you are a Sole Trader, you would need to re-assess your eligibility via your BAS for Q1 2020 compared to Q1 2019]

JobSeeker Update

After the 24th of September 2020, the Coronavirus Supplement to JobSeeker will be reduced from $550 to $250 a fortnight, bringing the payment to $815.70 per fortnight until the 31st of December 2020. If you are working you can earn up to $300 per fortnight and still receive the full amount, and for every dollar above $300 JobSeeker payment will be reduced by 60c.

Economic Response to the Coronavirus for Individuals



First Support Payment

The first payment of $750 (announced on 12 March 2020) will be available to people who are eligible payment recipients and concession card holders at any time from 12 March 2020 to 13 April 2020.

What you need to do

If you received or are receiving an eligible payment or have concession card as of the 12 of March 2020 you need to do nothing as the payment will be made directly to the account you receive your current payment.

If your circumstances have changed from the 12 March 2020 and you were not inreceipt of an eligible payment, or hold one of the following concession cards (below) at any time from the 12 March 2020 till the 13 April 2020 you will need to go to servicesaustralia.gov.au and create and verify your eligibility.

Eligible Government Payments / Concession Cards

Age Pension • Disability Support Pension • Carer Payment • Parenting Payment • Wife Pension • Widow B Pension • ABSTUDY (Living Allowance) • Austudy • Bereavement Allowance • Newstart Allowance • JobSeeker Payment • Youth Allowance • Partner Allowance • Sickness Allowance • Special Benefit • Widow Allowance • Family Tax Benefit, including Double Orphan Pension • Carer Allowance • Pensioner Concession Card (PCC) holders • Commonwealth Seniors Health Card holders • Veteran Service Pension; Veteran Income Support Supplement; Veteran Compensation payments, including lump sum payments; War Widow(er) Pension; and Veteran Payment. • DVA PCC holders; DVA EducationScheme recipients; Disability Pensioners at the temporary special rate; DVA Income support pensioners at $0 rate. • Veteran Gold Card holders • Farm Household Allowance

Second Support Payment

The second support payment of $750 is only for eligible recipients who do not qualify for Coronavirus supplement of $550 per fortnight (further detail below). Though if you receive the additional $550 on top of your income support payment then you will not qualify.

What you need to do

If you are an eligible payment recipient or concession card holder after 13 April 2020 and not receiving the Coronavirus supplement this will be paid automatically from the 13 July 2020.

If your circumstances have changed from 13 April 2020 and you were not in receipt of an eligible payment or concession card you will need to go to servicesaustralia.gov.au and create and verify your eligibility.

Coronavirus supplement

The Coronavirus supplement is an additional fortnightly payment of $550 on top of your eligible income support payment.

Jobseeker Payment (and all payments progressively transitioning to JobSeeker Payment; those currently receiving Partner Allowance, Widow Allowance, Sickness Allowance and Wife Pension) • Youth Allowance Jobseeker • Parenting Payment (Partnered and Single) • Farm Household Allowance • Special Benefit recipients

What you need to do

If you are an eligible payment recipient or concession card holder before 27 April 2020 this will be paid automatically from the 27 April 2020.

If your circumstances have changed from 27 April 2020 and you were not in receipt of an eligible payment or concession card you will need to go to servicesaustralia.gov.au and create and verify your eligibility.

Early Access to Superannuation

The Government is allowing individuals affected by the Coronavirus to access upto $10,000 of their superannuation before 1st July 2020 and another $10,000 after 1st July 2020, for approximately 3 months.

What you need to do

You must satisfy any one or more of the following requirements to access your super early:

  • You are unemployed; or
  • You are eligible to receive a:
    Job seeker payment, or Parenting payment (Partnered or Single), or 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 per cent ormore; Or if you are a sole trader and your business was suspended or there was a reduction in your turnover of 20 per cent or more.

You can apply directly to the ATO through the myGov website: https://my.gov.au/mygov and certify that you meet the above eligibility criteria.

After the ATO has processed your application, they will issue your superannuation fund and you with a determination. Your superannuation fund will then make the payment to you without you having to do anything. However, you should contact your fund to check that they have your correct bank details to transfer the funds to.

You will be able to apply for early release of your superannuation from mid-April 2020.

What other rebates and savings are available?

If you are in NSW, click here

If you are in QLD, click here

If you are in VIC, click here

If you are in TAS, click here

If you are in WA, click here

If you are in SA, click here

If you are in NT, click here

If you are in ACT, click here

For full details on Economic Response to the Coronavirus click on the links below :

Income support for households
Income support for individuals

Jobkeeper for Sole Traders Update

If you are a Sole Trader, you will need to re-assess your eligibility via your BAS for Q1 2020 compared to Q1 2019.

Additionally after the 28th of September, the JobKeeper eligibility criteria will change for Employers and if they are still eligible the Jobkeeper Allowance will be reduced to $1,200 and for those working less then 20 hours a week the allowance will be reduced to $750.

Cash Flow Assistance for Businesses

What is it?

The Government is providing up to $100,000 (in two payments of up to a maximum of $50,000 for each payment) which we have provided a breakdown below.

Boosting Cash Flow for Employers payments (first payment)

Eligibility

Available to SMEs and NFPs with annual turnover under $50 million that have/had employees in Q3 BAS. Turnover will generally be calculated on prior Financial Year turnover.

The payment will be made by the ATO as an automatic credit in the activity statement system from 28 April 2020 upon employers lodging Q3 activity statements.

The payments will only be available to active eligible employers established prior to 12 March 2020.

How is it calculated?

We have created a calculator (located below) so you can work this out specifically for your business.

Eligible employers that withhold tax to the ATO on their employees’ salary and wages will receive a minimum payment of $10,000 or 100 per cent of theamount withheld whichever is greater, to a maximum of $50,000.

Eligible employers that pay salary and wages though aren’t required to withhold tax will receive a payment of $10,000 regardless.

There is a cap of $50,000 though if you don’t exceed this in Q3 then you will be eligible to receive the payment again in Q4 2020, as calculated above up to the maximum $50,000 cap.

Additional payment (second payment)

Eligibility

To qualify for the additional payment, the entity must continue to be active and lodge a Q4 BAS.

For quarterly activity statement lodgers, the additional payments will be delivered as an automatic credit in the activity statement system. This will be equal to 50% of their total initial Boosting Cash Flow for Employers payment (first payment) and follow the lodgement of their Q4 BAS 2020 and Q1 BAS 2021 (and payment is capped at $50,000 over the 2 quarters $50,000).

Timing of payments

The ATO will deliver the payment as a credit to the entity upon lodgment of the activity statements. Where this places the entity in a refund position, the ATO will deliver the refund within 14 days.

How does it work in real life?

Example 1 – Marc’s Construction Business

Marc owns and runs a building business in Western Australia and employs 8 construction workers on average full-time weekly earnings, who each earn $89,730 per year. Marc reports withholding of $45,024 for his employees on his quarterly Business Activity Statements (BAS). Under the Government’s Cash Flow assistance for businesses, Marc will be eligible to receive the payment on lodgment of his BAS. Marc’s business will receive:

Boosting Cash Flow for Employers payments – (First Payment)

  • A credit of $45,024 for the Q3 2020 period, equal to 100% of his total withholding
  • A credit of $4,976 for the Q4 2020 period, (the remainder of the $50,000 cap).

Additional payment – (Second Payment)

  • An additional payment of $25,000 for Q4 2020, equal to 50% of his total (Q3 and Q4 Boosting Cash Flow for Employers payments – First Payment).
  • An additional payment of $25,000 for the Q1 2021, equal to 50% of his total (Q3 and Q4 Boosting Cash Flow for Employers payments – First Payment).

Under the Government’s enhanced Boosting Cash Flow for Employers measure, Marc’s business will receive $100,000.

Example 2 – Ryan’s Food Truck Business

Ryan owns and runs a Food Truck business in New South Wales and employs 2 Chefs on an average full-time wage of $60,000 each per annum. Ryan reports withholding of $15,000 for his employees on his quarterly Business Activity Statements (BAS). Under the Government’s changes, Ryan will be eligible to receive:

Boosting Cash Flow for Employers payments – (First Payment)

  • A credit of $15,000 for the Q3 2020 period, equal to 100% of his total withholding
  • A credit of $15,000 for the Q4 2020 period, equal to 100% of his total withholding, as he has not exceeded the $50,000 cap.

Additional payment – (Second Payment)

  • An additional payment of $15,000 for Q4 2020, equal to 50% of his total (Q3 and Q4 Boosting Cash Flow for Employers payments – First Payment).
  • An additional payment of $15,000 for Q1 2021, equal to 50% of his total (Q3 and Q4 Boosting Cash Flow for Employers payments – First Payment).

Under the Government’s enhanced Boosting Cash Flow for Employers measure, Marc’s business will receive $60,000.

For more info, please see fact sheet links below:

https://treasury.gov.au/coronavirus/businesses
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf

Benefit Calculator

TypeSalesGST on SalesGST PurchasesTotal WagesPayG Tax WithheldPayG InstalmentsPayable / (Refundable)Credit From ATONet Payable / (Refundable)
Boosting Cashflow (BAS Q3 2020)
Boosting Cashflow (BAS Q4 2020)
Additional Payment (BAS Q4 2020)       
Additional Payment (BAS Q1 2021)
       Total Benefit: 

Jobkeeper Payment

The JobKeeper Payment is a payment made to eligible businesses and not-for-profits affected by the Coronavirus to support them in retaining employees .

Individuals who are employees as at 1st March 2020 and continue to be, for eligible businesses will receive this benefit from their employers, which commences on the 30th of March 2020 and will be active until the 27th of September 2020.

Businesses must have paid their employees before they are entitled to receive the JobKeeper payment. If employee total remuneration is less than $1,500 per fortnight, the business must provide the employee at least $1,500, passing on the $1,500 payment from the Government. Where an employee earns more than $1,500 per fortnight, employers can use the payment to subsidise the employee’s wages.

What makes a business eligible:

  • The business has a turnover of less than $1 billion (and if part of a group for income tax purposes, the group has a combined turnover of less than $1 billion) and estimate their turnover has fallen or will likely fall by 30 per cent or more; or
  • The business has a turnover of $1 billion or more (or if part of a group for income tax purposes, the group has a combined turnover of $1 billion or more) and estimate their turnover has fallen or will likely fall by 50 per cent or more; or
  • Business is not subject to the Major Bank Levy.

This excludes:

  • Australian Government and its agencies,
  • State and Territory governments and their agencies,
  • Foreign governments and their agencies;
  • Local council governments;
  • Wholly-owned corporations of any of the above; and
  • A that is in liquidation, or a partnership, trust or sole trader in bankruptcy

AND can establish a fall in turnover for the first fortnight starting 30 March 2020 compared to one of the following:

  • GST turnover for March 2020 with GST turnover for March 2019
  • Projected GST turnover for April 2020 with GST turnover for April 2019
  • Projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter April 2019

What if I am a start-up company or have varying income?

  • Where a business was not in operation a year earlier, or where previous year’s turnover is not representative of their usual or average turnover, (e.g. large acquisition, newly established, were scaling up, or their turnover is typically highly variable), the Tax Commissioner will have discretion to consider additional information that the business can provide to establish that they have been adversely affected by the impacts of the Coronavirus.
  • The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in specific circumstances.
  • There will be some tolerance where employers, in good faith, estimate a 30 per cent or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall.

What makes an employee eligible

  • Currently employed by the eligible employer (including those stood down or re-hired);
  • Is a full-time or part-time employee, or a casual employed on a regular and systematic basis for longer than 12 months as at 1 March 2020;
  • Was aged 16 years or older at 1 March 2020;
  • Was an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;
  • Was a resident for Australian tax purposes on 1 March 2020; and
  • Is not a recipient of JobKeeper Payment from another employer, i.e. You can only receive 1 JobKeeper Payment even if you had multiple employers.

When will the first payment be?

The first reimbursement will be made by the ATO in the first week of May and will be made monthly in arrears thereafter. This means that you have to pay and ‘top-up’ eligible employee’s wages first, with their minimum fortnight wage of $1,500, and the ATO will reimburse your business the $1,500 per employee, per fortnight at the end of each month. ($3,000 per employee per month, except in in August, where it is $4,500 due to 3 fortnights within August).

What are the eligible payment periods for reimbursement of the JobKeeper Payment?

Employers will need to satisfy payment requirements for their eligible employees in respect of each 14-day period covered by the scheme, which runs from 30th March 2020 to 27th September 2020.

The first fortnight period starts on Monday 30 March 2020 and ends on Sunday 12 April 2020.

The payment requirement is that businesses pay their employees a minimum of $1,500 per fortnight in the scheme payment periods.

You are able to continue to pay your employees monthly if you have already been doing so, but overall an employee must have received the equivalent of $1,500 per fortnight.

The final period will start on Monday 14th September 2020 and end on Sunday 27th September 2020.

How is turnover defined and calculated?

Turnover will be defined according to the current calculation for GST purposes and is reported on your Business Activity Statements. It includes all taxable supplies and all GST free supplies but not input taxed supplies.

To establish that a business has faced or is likely to face a 30 per cent or more or 50 per cent or more fall in turnover, most businesses would be expected to establish that their turnover has fallen in the relevant month or quarter (based off BAS) relative to their turnover in a corresponding period a year earlier.

What if I am a start-up company or have varying income?

Where a business was not in operation a year earlier, or where previous year’s turnover is not representative of their usual or average turnover, (e.g. large acquisition, newly established, were scaling up, or their turnover is typically highly variable), the Tax Commissioner will have discretion to consider additional information that the business can provide to establish that they have been adversely affected by the impacts of the Coronavirus.

The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in specific circumstances.

There will be some tolerance where employers, in good faith, estimate a 30 per cent or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall.

Am I eligible if business turnover has not decreased, but is expected to in the coming months?

You can apply for the payment if you reasonably expect that your turnover will fall by 30 per cent or more (or 50 per cent or more for businesses with a turnover of $1 billion or more) relative to your turnover in a corresponding period a year earlier. The ATO will provide guidance about self-assessment of actual and anticipated falls in turnover.

Alternatively, once the business’ turnover test has been met, the business can start receiving the JobKeeper Payment. In this case, the JobKeeper Payment is not backdated to the commencement of the scheme. Businesses can receive JobKeeper Payments up to 27 September 2020.

What if I pay my employee less than $1,500 a fortnight?

To be able to claim the JobKeeper reimbursement for an eligible employee, they must be paid a minimum of $1,500 income per fortnight, before tax is withheld. If you want to claim the subsidy for an eligible employee and they have not been paid $1,500 per fortnight since 30 March 2020, employers must pay a ‘top-up’ payment to employees so that they are eligible.

The employer will be reimbursed $1,500 per fortnight for each eligible employee. Employers cannot pay their employees less than $1,500 per fortnight and be entitled to a payment for that employee.

If the eligible employee is paid more than $1,500 a fortnight before tax, the employer will only be reimbursed $1,500 per fortnight.

What if I do not have the cash available to ‘top-up’ employees’ wages?

The JobKeeper Payment is a reimbursement scheme that will be paid by the ATO monthly in arrears ($3,000 per employee per month, except in in August, where it is $4,500 due to 3 fortnights within August).

In cases where this may present cash flow difficulties, those businesses may aim to speak to their bank to discuss their options. The banks have said businesses may be able to use the upcoming JobKeeper payment as a basis to seek credit in order to pay their employees until the scheme is making its first payments.

If I Have Stood Down My Employees Without Pay After 1 March 2020 Can I ‘Back Pay’ Them To 30 March 2020?

Yes. If you want to claim the JobKeeper Payment for your employees you will need to confirm your eligible employees want to be part of the scheme and arrange for them to be paid a minimum of $1,500 per fortnight before tax from 30 March 2020.

What to do next:

Employers are to enrol for the JobKeeper Payment from the 20th of April 2020, and confirm the eligible employees that they are claiming for, from the 4th of May 2020.

How to Enrol for the JobKeeper Payment:

  • Step 1 – Register your interest and subscribe for JobKeeper Payment updates at https://www.ato.gov.au/Job-keeper-payment/
  • Step 2 – Check you and your employees meet the eligibility requirements.
  • Step 3 – Continue to pay at least $1,500 to each eligible employee per JobKeeper fortnight (The First JobKeeper fortnight is the period from 30 March 2020 to 12 April 2020).
  • Step 4 – Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf and check they aren’t claiming JobKeeper payment through another employer or have nominated through another business.
  • Step 5 – Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April. Keep it on file and provide a copy to your registered tax agent if you are using one.
  • Step 6 – From 20 April 2020, you can enrol with the ATO for the JobKeeper payment using the Business Portal and authenticate with myGovID.
    You must do this by the end of April to claim JobKeeper payments for April.
  • Step 7 – In the online form, provide your bank details and indicate if you are claiming an entitlement based on business participation, for example if you are a sole trader.
  • Step 8 – Specify the estimated number of employees who will be eligible for the first JobKeeper fortnight (30 March – 12 April) and the second JobKeeper fortnight (13 April – 26 April).

How to confirm eligible employees for the JobKeeper Payment:

  • Step 1 – Apply to claim the JobKeeper payment by logging in to the ATO Business PortalExternal Link, https://bp.ato.gov.au/
  • Step 2 – Ensure you have paid each eligible employee a minimum of $1,500 per JobKeeper fortnight before tax.
  • Step 3 – Identify your eligible employees in the application form by:
    • Selecting employee details that are prefilled from your STP pay reports if you report payroll information through an STP enabled payroll solution, or
    • Manually entering employee details in ATO online services or the Business Portal if you do not use an STP enabled payroll solution, or
    • Using a registered tax agent who will submit a report on your behalf through Online services for agents.
  • Step 4 – Submit the confirmation of your eligible employees online and wait for your confirmation email or SMS showing it has been received.
  • Step 5 – Notify your eligible employees you have nominated them
  • Step 6 – The ATO will pay you the JobKeeper payment for all eligible employees after receiving your application.
  • Step 7 – Each month, you will need to reconfirm that your reported eligible employees have not changed through ATO online services, the Business Portal or via your registered tax agent. This will ensure you will continue to receive the JobKeeper payments from us. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.
  • Step 8 – If your eligible employees change or leave your employment, you will need to notify us through your monthly JobKeeper Declaration report.

STP Pay Event Requirements:

If employees earn below $1,500 per fortnight:

Such eligible employees must be paid a “top-up” amount to bring their taxable gross to $1,500 per fortnight for paydays within the JobKeeper fortnightly periods. These “top-up” amounts must be reported as an Allowance Item as:

  • Other Allowances Type Code
  • With Other Allowance Type Description as exactly: JOBKEEPER-TOPUP
    (deviations from this exact description may significantly delay or prevent reimbursement)
  • Amount reported must be the cumulative (YTD) top-up amount for the JobKeeper Payment

Informing the ATO which fortnight the eligible employee receives the payment:

To indicate the first JobKeeper fortnightly period for which the subsidy is payable, report: Other Allowance Type Description as exactly: JOBKEEPER-START-FNxx where “xx” refers to the fortnightly periods from which the payment first started.

For example, JOBKEEPER-START-FN01 to indicate the payment applies from the 1st (30/03 to 12/04) of the 13 JobKeeper fortnights.

Deviations from this exact description, including failure to use 2-char to indicate the period number, may significantly delay or prevent reimbursement. The allowance amount should be reported as zero.

To indicate any exit of eligibility or termination of the employee, report the Other Allowance Type Description as exactly: JOBKEEPER-FINISH-FNxx where “xx” refers to the final fortnightly period to which the payment applies.

For example, if an employee ceases working on 04/06, then JOBKEEPER-FINISH-FN05 indicates the 5th of 13 JobKeeper fortnights was the final payment for which the subsidy may be reimbursed to the employer. The allowance amount should be reported as zero.

How does work?

Employer is back paying an eligible employee in an out of cycle payment on the last Friday in April (the second JobKeeper Period) to qualify for the subsidy, where the employee was paid only $1,000 per fortnight, then the Pay Event for fortnight 21 of 26 of the financial year will show:

Gross – 21,000 (assuming $1,000 for each FN)
Other – JOBKEEPER-TOPUP – 1,000 ($500 per FN)
Other – JOBKEEPER-START-FN01 – 0

Other examples of STP Pay Requirements:

Employee is paid monthly, Employee earns $1,300 which is paid on the 20th of April 2020 (Second period), Employee becomes eligible for JobKeeper Payment on the 23rd of April 2020.

Therefore:
Gross Payment: $1,300
Other – JOBKEEPER-TOPUP: $200
Other – JOBKEEPER-START-FN02: $0.00

This notifies the ATO that the employee is only eligible from the second period onwards and has fully passed on the $1,500 reimbursement to the employee.

Employee is paid weekly, Become ineligible for JobSeeker on the 14th of July 2020, Receives $540 for the month of July.

Therefore:
Gross Payment: $540
Other – JOBKEEPER-TOPUP: $960
Other – JOBKEEPER-FINISH-FN08: $0.00

This notifies the ATO that the top up of $940 for the month of July was because the employee was ineligible for the second fortnight of July, and has fully passed on the $1,500 to the employee.

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 paid during the 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. Employers will bereimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).

The subsidy will be available to small businesses employing fewer than 20 full-time employees who retain an apprentice or trainee. The apprentice or trainee must have been in training with a small business as at 1 March 2020. Employers of any size and Group Training Organisations that re-engage an eligible out-of-trade apprentice or trainee will be eligible for the subsidy. Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian Apprenticeship Support Network (AASN) provider.

Employers can register for the subsidy from early April 2020. Final claims for payment must be lodged by 31 December 2020. Further information is available at:

For further information on how to apply for the subsidy, including information on eligibility, contact an Australian Apprenticeship Support Network (AASN) provider.

Temporary relief for financially distressed businesses

The economic impacts of the Coronavirus and health measures to prevent its spread could see many otherwise profitable and viable businesses temporarily face financial distress. It is important that these businesses have a safety net to make sure that when the crisis has passed, they can resume normal business operations. One element of that safety net is to lessen the threat of actions that could unnecessarily push them into insolvency and force the winding up of the business

The elements of the package are:

  • A temporary increase in the threshold (from $2,000 to $20,000) at which creditors can issue a statutory demand (from 21 days to 6 month) 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 (from $5,000 to $20,000), an increase in the time period for debtors to respond to a bankruptcy notice (from 21 days to 6 month), and extending the period of protection a debtor receives after making a declaration of intention to present a debtor’s petition (from 21 days to 6 month);
  • 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.
  • The relief above will apply for six months.

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.

For more info, please see the fact sheet link below:

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf

Increasing the instant asset write-of

The Government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000and expanding access to include all businesses with aggregated annual turnover of less than $500million (up from $50 million) until 30 June 2020.

The higher IAWO threshold provides cash flow benefits for businesses that willbe able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets.

This proposal applies from announcement until 30June2020, for new or second-hand assets first used or installed ready for use in this timeframe.

For more info, please see the fact sheet link below:

https://treasury.gov.au/sites/default/files/2020-03/Fact_Sheet-Delivering_support_for_business_investment.pdf

Coronavirus SME Guarantee Scheme – Small Business Loans

The government in response to the Coronavirus will be providing eligible lenders with a guarantee of 50% of new unsecured loans up to $250,000 to be used as working capital for SMEs with turnover under $50 million. Loans are subject to lenders credit assessment and the scheme will commence in early April 2020 for new loans until 30 September 2020.

For more info, please see the fact sheet link below:

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Supporting_the_flow_of_credit_1.pdf

Disclaimer: This page is current as of 8/4/2020 10:03AM AWST