What is the COVID-19 Government Stimulus Package?

On 22 March 2020, the government announced a second wave of Stimulus Package incentives

But what does it all mean for individuals and small businesses? See outlined below some of the various Federal and State incentives that have been announced so far to help Australian businesses get through this once in a lifetime event. 

Federal

  • <50M turnover
  • Held an ABN on 12 May 2020 and continues to be active
  • Carrying on in a business and earned business income in FY 2019 and lodged 2019 return OR made supplies in course or further of an enterprise starting 1 July 2018 and ending before 12 March 2020 and lodged relevant activity statement.
  • Based on 100% of PAYWG amount on activity statement
  • March 2020 or June 2020 for Quarterly lodgers
  • March, April, May or June for monthly lodgers
  • Monthly lodger payment based on 3x March PAYWG
  • Integrity Measures (Be aware!)

Click here to see Government Info

  • Same tests as per tranche 1
  • Based on 100% of PAYGW amount in tranche 1 and paid in equal installments based on whther monthly or quarterly lodger

Click here to see Government Info

  • Wage subsidy of 50% of apprentice or trainee wages for up to 9 months from January 2020 to September 2020
  • If SME not able to retain apprentice subsidy available to new employee
  • Maximum benefit $21k per apprentice or trainee
  • Available to SME employing fewer than 20 employees who retain an apprentice or trainee
  • Can register from 2 April 2020
  • Final claim lodged by 31 Dec 2020

Click here to see Government Info

  • Claim $1,500 per fortnight per eligible employee
  • Includes employees (those let go as well) “on the books” as at 1 March 2020 (no limit on employer size)
  • Sole traders, partnerships, trusts and companies can nominate one self employed individual
  • Maximum period 6 months
  • Turnover <$1BN and turnover reduced  >30% relative to a comparable period 1 year ago
  • Turnover > $1BN and turnover reduced >50% relative to a comparable period 1 year ago
  • Not subject to major bank levy

Click here to see Government info

  • <$500M turnover
  • 50% deduction of the cost
  • Existing depreciation rules apply to the balance
  • Asset must be installed and ready to use by 30 June 2021
  • New assets only

Click here for Government info

  • < $50M turnover
  • 50% guarantee on new loans for SMEs up to $250k
  • Financial Institutions will be providing the products
  • Operates from 1 April 2020 to 30 Sept 2020
  • 3 year term, initial 6 month repayment holiday
  • No security required 

Click here for Government info

  • <500M turnover
  • Asset must be installed and ready for use by 30 June 2020
  • Only applies until 30 June 2020
  • New and used assets

Click here for Government info

  • Access $10k before 1 July 2020
  • Access a further $10k from 1 July 2020 until 24 Sept 2020
  • Must be unemployed; or
  • Eligible to receive Job seeker payment, youth allowance for job seekers, parenting benefit, special benefit or farm household allowance; or
  • On or after 1 Jan 2020 either
    • made redundant
    • working hours reduced by >20%
    • sole trader turnover reduced by >20% 

Click here for Government info

State

VIC Payroll Tax

  • Taxable wages <$3m
  • 2019-20 financial year waived
  • Reimbursement of payroll tax already paid
  • Click here for more info

VIC Land Tax

  • At least one non residential property
  • Total taxable landholdings <$1m
  • Deferral of Land Tax for 2020 payment until after 1 Jan 2021
  • Click here for more info

VIC SME Grant

  • $10k Business Grant
  • Employ staff
  • Turnover >$75k
  • Payroll <$650k
  • Subject to closure or impacted by non essential  activity directives
  • Click here for more info

NSW Payroll Tax

  • Taxable wages <$10m
    • Annual Liability reduced by 25%
    • Done at time of annual reconciliation
    • March, April or May 2020 payment not required for monthly payers
  • Taxable wagers >$10m
    • Deferral for 6 months
    • Threshold increased to $1m from 1 Jul 2020
  • Click here for more info

NSW SME Grant

  • $10k Business Grant
  • Between 1-19 employees
  • Turnover >$75k
  • Payroll <$900k
  • Have an ABN as at 1 Mar 2020, be based in NSW and employ staff as at 1 Mar 2020
  • Click here for more info

QLD Payroll Tax

  • <$6.5m in Australian taxable wages eligible for refunds of payroll tax for 2 months and payroll tax holiday for 3 months
  • Deferral of payroll tax for the calendar year
  • >$6.5m in taxable wage eligible for deferral of payroll tax for 2020 calendar year
  • Refund of payroll tax for 2 months
  • Deferral of payroll tax for 2020 year 
  • Click here for more info

QLD Interest Free Loans

  • Up to $250k
  • 12 months interest free
  • Click here for more info

QLD SME Electricity Rebate

  • $500 rebate on power bill
  • Consuming <100,000kw hours
  • Will be automatically applied to invoice
  • Click here for more info

QLD Rent Relief

  •   Relief for businesses renting government premises

TAS Payroll Tax

  • Taxable wages <$5m
  • No payroll taxes payable for entire 2019/20 year
  • Deliverd through payroll tax refunds and waivers
  • Click here for more info

TAS Government Fees and Charges Freeze

  • Water and electricity bills will be waived for the first quarterly bill received after 1 April this year for small business customers on Tariff 22, 94, 82 or 75, including those small businesses on market contracts that could affect those Tariffs.
  • Electricity prices will be capped, and water prices will be frozen until next financial year.

TAS Land Tax

  • Waiver of land tax for 2020-21 for commercial property owners where land tax is paid by the business owner.
  • Click here for more info

TAS Business Continuity Grant

  • $750 for business continuity advice provided by CA/CPA 
  • Click here for more info

ACT Payroll Tax

  • Hospitality, creative arts and entertainment sector payroll tax waiver for 6 months
  • Interest free deferrals commencing 1 July 2020 where Australian taxable wages <$10m
  • Click here for more info

WA Payroll Tax

  • Threshold increased to $1m from 1 July 2020
  • Taxable wages < $7.5m March to June payroll tax waived
  • Taxable wages > $1m and < $4m grant of $17,500
  • Click here for more info

WA Electricity Rebate

  • $2,500 electicity bill credit will be applied from 1 May 2020 for Synergy and Horizon Power cusotmers who consume < 50MWh per year

SA SME Grant

  • $10k Business Grant
  • Employee Staff in SA
  • Turnover >$75k
  • Payroll < $1.5m and no payroll tax waiver
  • Had ABN 1 March 2020 and carrying on a business
  • Apply by 1 June 2020
  • Click here for more info

SA Payroll Tax

  • Taxable wages < $4m
    • 6 month waiver payroll tax (March to August 2020)
  • Taxable wages > $4m
    • 6 Month deferral if can demonstrate significant COVID impact
    • Click here for more info

This content above was put together for information purposes only. The Content does not constitute tax and/or legal advice and should not be relied upon as such. You should seek tax, legal or other professional advice before acting or relying on any Content.

 

© Michael Armstrong – Property Tax Solutions 2020 V6