Covid-19 Business Information Update
Please note this page will be updated as new announcements are made.
It is going to be interesting over the next few weeks and months, so Cloudhouse will be working overtime to ensure that we are supporting all of our clients. Whether it be re-assessing your business, revising forecasts and cash flow or just helping formulate business continuity plans, we will be here.
For all of you, we will be spending a significant amount of time working through the various state and federal government stimulus offerings to ensure that you are getting the maximum available support you are entitled to.
Casuals and Sole Traders
If you find yourself affected by the economic downturn, you'll be able to access a payment of $550 per fortnight for the next six months. Sole traders and casuals who are currently making less than $1,075 per fortnight will be eligible to access the full supplement.
More information please click here https://www.dss.gov.au/about-the-department/coronavirus-information-and-support
Fair Work Information
Fair work has a page dedicated to helping you understand your obligations as an employer. You can check that out here
We recommend getting in touch with a HR specialist as well. There are services offering initial free advice to employers open 24 hours.
Government Stimulus Package Released 22 Mar 2020
The options available to the ATO to assist businesses impacted by COVID-19 include:
Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise.
Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to.
Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.
Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
PLEASE NOTE you must still pay and lodge super on time until further advise is received.
Best thing to do - lodge on time, and then communicate immediately if you need payment relief.
Temporary relief for financially distressed businesses
Increase in the threshold for creditors to issue statutory demands from $2k to $20k for the next 6 months.
Increase in the threshold for initiating bankruptcy proceedings from $5k to $20k for the next 6 months.
Plus an increase in time frame whereby you are required to respond to a bankruptcy notice or a statutory demand from 21 days to 6 months.
Directors will be temporarily relieved of their duty to prevent insolvent trading with respect to any debts incurred in the ordinary course of the company’s business. Egregious cases of dishonesty and fraud will still be subject to criminal penalties.
Temporary early access to superannuation
Eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020.
To apply you must satisfy one or more of the following:
You are unemployed; or
your working hours were reduced by 20 per cent or more; or
if you are a sole trader — your business was suspended or there was a reduction in your turnover of 20 per cent or more.
No tax will be payable on these amounts
You can apply directly to the ATO through the myGov website: www.my.gov.au
We will continue to monitor the announcements from state and federal governments and communicate with you to keep the information as relevant as possible for your business and you personally.
State Packages
NSW Health & Stimulus Package
https://www.nsw.gov.au/news-and-events/news/health-boost-and-economic-stimulus/
$450 million for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the rest of 2019-20). This means these businesses will save a quarter of their annual payroll tax bill in 2019-20
$56 million to bring forward the next round of payroll tax cuts by raising the threshold limit to $1 million in 2020-21
$80 million to waive a range of fees and charges for small businesses including bars, cafes, restaurants and tradies
$250 million to employ additional cleaners of public infrastructure such as transport assets, schools and other public buildings
more than $250 million to bring forward maintenance on public assets including social housing and crown land fencing
$500 million to bring forward capital works and maintenance.
NT Government Grant
The NT Government is offering home and business grants and you can find more details here. The $60 million stimulus package will be divided into two major portions — a $30 million 'Home Improvement Scheme' and a $20 million 'Business Improvement Scheme'. The home improvement package is for NT residents and can be used on residential or investment properties. If you spend $2K, you are able to access a grant of up to $6K from the NT Govt, if you spend $1K, you are able to access up to $4K.
Victorian Stimulus package
The City of Melbourne has released details of an economic stimulus package that can be found here. A s part of a $1.7 billion economic survival package, the Victorian Government has announced $500 million to establish a Business Support Fund to assist small to medium businesses most impacted by the COVID-19 outbreak here.
Queensland Stimulus Package
So far it has promised $27.5 million for tourism, agriculture and education sectors, $500 million in no-interest business loans and a payroll tax deferral. These loans will come with an initial 12-month interest free period, to assist businesses retain staff during the downturn.
Extend the payroll tax deferral measure, originally for businesses with taxable wages of $6.5m or less affected by natural disasters, to all COVID-19 affected businesses with taxable wages of $6.5m or less. This will extend the due date for lodgment and payment of remaining 2019-20 payroll tax returns to 31 July 2020.
SA Stimulus Package
An immediate economic stimulus package worth $350 million has been announced by the Marshall Liberal Government, to help drive the South Australian economy and secure local jobs.
In the wake of the ongoing impact of bushfires, drought and coronavirus, major infrastructure maintenance projects including road and hospital upgrades, new tourism infrastructure and an expanded Economic and Business Growth Fund to support local industry are the centrepiece of the new package, which is expected to sustain hundreds of jobs across the state with construction to begin in coming weeks.
It follows a significant $22 million State Government injection in nature-based tourism infrastructure to boost employment and the long-term visitor economy in hard-hit regions.
WA Stimulus Package
https://www.mediastatements.wa.gov.au/Pages/McGowan/2020/03/COVID-19-economic-response-Relief-for-businesses-and-households.aspx
$607 million stimulus package to support WA households and small businesses in the wake of COVID-19
$402 million to freeze household fees and charges until at least July 1, 2021
Freeze will apply to entire 'household basket', including electricity, water, motor vehicle charges, emergency services levy and public transport fares
Energy Assistance Payment (EAP) doubled to $600 to support vulnerable Western Australians, including pensioners
$114 million in additional measures to support small businesses
Small businesses that pay payroll tax will receive a one-off grant of $17,500
$1 million payroll tax threshold brought forward by six months to July 1, 2020
Businesses impacted by COVID-19 can defer payroll tax payments until July 21, 2020
Building on $760 million announced in the past few months to stimulate economy
Stimulus measures made possible due to McGowan Government's responsible financial management and strong budget surplus
Tasmanian Government Package
The Tasmanian Government will:
Provide one-off emergency relief payments of $250 for individuals and up to $1000 for families who are required to self-isolate by public health as a result of coronavirus;
Provide $1m for accommodation for front line workers in circumstances where their family members are ill so they can continue to contribute to health responses;
Make $1m for individuals and families who had been placed on home quarantine but were unable to return to their regular place of residence due to self-isolation measures;
Provide $20m in interest-free loans to businesses in the hospitality, tourism, seafood and exports sectors; and
Provide $50m in interest-free loans over three years for local councils to upgrade and renovate tourism assets while increasing employment.
Other Help
Telstra
Telstra are offering consumer and small business customers additional data for those who find themselves having to work from home. Find out more here.
Working from home
If you find yourself or staff working from home, you may be able to claim some expenses at tax time. You'll need to make sure you meet the three golden rules of deductability:
you or you staff member must have spent the money to claim the expense;
on costs directly related to earning your income;
with records to prove your claim
Business support
Businesses impacted by COVID-19 can phone the ATO Emergency Support Infoline on 1800 806 218 for help tailored to your circumstances.
If you prefer to speak to the ATO in a language other than English, phone the Translating and Interpreting Service (TIS) on 13 14 50 for help with your call.
Aboriginal and Torres Strait Islander peoples can phone the ATO Indigenous Helpline on 13 10 30.
If you have difficulty hearing or speaking to people who use a phone, you can contact the ATO through the National Relay Service External Link (NRS).
more info here https://www.ato.gov.au/Individuals/Dealing-with-disasters/In-detail/Specific-disasters/COVID-19/
Please do not hesitate to contact us with any questions. This is a time where we need to work together to support Australian businesses and each other, including emotional support.