How does it affect you? Are you eligible?
On the 30th March, the Prime Minister and Treasurer announced further funding for businesses affected by COVID-19 and changes to Centrelink’s JobSeeker eligibility.
We will continue to advise you of any and all updates as they are provided.
Individuals – Jobseeker Payment partner income test
The Government has temporarily increased the partner income threshold to $3,068/ fortnight. Eligible persons can now receive the JobSeeker Payment providing their partner earns less that $79,762/ annum.
Small & Medium Businesses – JobKeeper Payment
The Government will provide a wage subsidy of $1,500/ fortnight, before tax, to workers through their employers for the next six months.
- Employers, who’s turnover has reduced by more than 30%, must register for the JobKeeper scheme through the ATO website: https://www.ato.gov.au/Job-keeper-payment/
- Employers will pay all eligible employees a flat rate of $1,500 before tax.
Eligible employees include full time and part time, including those that have been stood down, and casuals who have been with the business for at least 12 months.
- Eligible businesses can begin distributing the JobKeeper payment immediately. The ATO will begin reimbursing employers as of 1st May, 2020.
- Self-employed individuals are also eligible and must register through the ATO.
Income Support for Individuals – JobSeeker
- Centrelink has temporarily increased eligibility to income support payments
- They are offering a Coronavirus Supplement of $550/ fortnight in addition to income support payments, to existing and new recipients over the next six months
Payments to Support Households
- The Government is providing two payments of $750 to pensioners, Newstart recipients and other eligible parties.
- The first payment will be made from the 31st March, 2020, the second from the 13th July, 2020.
- The second instalment will not be paid to those eligible for the Coronavirus Supplement.
Accessing your Superannuation
- Individuals, and including the self-employed, may withdraw up to $10,000 of their superannuation in 2019-2020 and an additional $10,000 in 2020-21.
- These amounts are tax free.
- If you wish to make two withdrawals of $10,000, the first must be made prior to 30th June, 2020
SME Guarantee Scheme – Business Loans
- Available until 30th September, 2020, the Government will guarantee 50% of new loans issued to small and medium businesses.
- The maximum amount that can be loaned, per borrower, is $250,000
- The maximum term will be three years, with repayments frozen for the first six months
Contact your financial institution to discuss the particulars
Instant Asset Write Off (Small Business Concession)
- Small businesses are eligible to tax write off up to the value of $150,000.
- This extension will apply until June 30th 2020
Boosting Cash Flow for Employers
- Businesses with a turnover of up to $50 million, that employ staff in the period between January 1stand June 30th 2020, will be eligible for the funding.
- Employers will receive a credit equal to 100% of the tax withheld from wages paid, up to the value of $50,000
- If you pay wages, but are not required to withhold tax (wages fall below the tax threshold), you will receive a credit of $10,000.
- These credits are issued based on your business or instalment activity statements lodged with the ATO from April 28th
- An additional credit will be issued between July – October 2020. This will be the same amount as the original credit.
- These credits will only be made available to employers established prior to 12th March, 2020
Keeping Apprentices Employed
- A wage subsidy which will support apprentices and trainees.
- You may be eligible for payouts equal to 50% on wages you payout to apprentices and or trainees.
Temporary Relief for Financially Distressed Businesses
- The threshold at which creditors can issue a statutory demand on a company and the time companies have to respond has been increased.
- Company Directors will be relieved of any personal liability for trading insolvent.
Sole Traders & Self Employed
- Centrelink have temporarily expanded eligibility for JobSeeker Payment and Youth Allowance
- Asset testing will be waived as of 27th April, 2020 for six months
- You cannot access Income Insurance and receive JobSeeker Payments or Youth Allowance.
Our Gawler office is still open for appointments at this time. Alternatively, you can email, phone or arrange a video conferencing appointment.
If you have any queries or questions about the Stimulus Package or how you may be affected by the updates, please don’t hesitate to contact our office.