COVID-19 ASSISTANCE PACKAGES

Businesses affected by the COVID-19 pandemic can access many different assistance packages.

Below is an outline of the most common benefits but things are changing rapidly as you know so we will keep this page updated with the latest news and announcements.

Federal Government

• Cashflow assistance in the form of a $20,000 to $100,000 tax free payment to assist employers in the SME sector. This will be an automatic credit on your BAS/IAS lodged for March and onwards. It is imperative that lodgements are kept up to date to access these benefits.

  Cash Flow Assistance For Businesses
  

• A JobKeeper Payment of up to $1,500 per fortnight for each eligible employee for a maximum of period of 6 months from 30 March 2020. Businesses will be required to establish that their turnover has fallen by more than 30% in the month or quarter, compared with the previous year.

  Fact sheet Info for Employers
  Job Keeper payment Frequently asked questions
  To register go to https://www.ato.gov.au/general/gen/JobKeeper-payment/
  

• Wage subsidies for apprentices of up to 50% of the trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020. Employers must have fewer than 20 full-time staff and retain the apprentice or trainee to receive a maximum of $21,000 per eligible employee ($7,000 per quarter).

  Fact Sheet for Apprentice Wage Subsidy
  

• An increase in the 100% instant asset write-off threshold from $30,000 to $150,000 and expanding to businesses with turnover of up to $500 million. This measure currently applies until 30 June 2020.
  Delivering Support For Business Investment
  

• Potential access to a total of $20,000 from your superannuation across 2019-20 and 2020-21. Sole traders are eligible if their business is suspended or suffers a reduction in turnover of 20% or more.
  Early Access to Super
  

• Protection from creditors winding up and director’s insolvent trading provisions.
  Providing Temporary Relief For Financially Distressed Businesses
  

• Easy access to JobSeeker benefits for staff terminated or having reduced hours.
  https://www.ausbanking.org.au/campaigns/financial-hardship/
  

• Free childcare for all Australian families who require it with the existing rebate and subsidy system to be switched off during the pandemic.
  https://www.education.gov.au/childcare-FAQ

Queensland Government initiatives

• Payroll tax refunds, holidays and deferrals for eligible businesses. As part of the package, the refund and payroll tax holiday have to be repaid.
  https://www.business.qld.gov.au/running-business/employing/payroll-tax/lodging/coronavirus-tax-relief
  

• Jobs Support Loans of up to $250,000 to help with expenses such as employee wages, rent and rates. Loan terms will be 10 years with no repayments or interest charged for the first year.
  http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme

Banks

• We are seeing a lot of communication from major banks around supporting their clients with both personal home loans and business facilities. Available support includes but is not limited to unsecured business loans supported by government guarantees, repayment relief on existing facilities including credit cards, and interest rate reductions.
  https://www.ausbanking.org.au/campaigns/financial-hardship/

If you need support applying for or accessing any of the COVID-19 assistance packages for your business, please do not hesitate to get in touch with the team at Carter Connell.