Government Assistance Packages
The following are summaries of the various government assistance packages currently available:
1) Cashflow assistance for employers: $20k - $100k
Benefit is calculated directly based on the PAYG Withholding in your March BAS. You don’t need to apply anywhere, just lodge your BAS. Credits will be applied from 29 April.
Here is a handy calculator to see how much you will receive: https://digit.business/payg-cashflow-boost-calculator-advanced
2) JobKeeper (the $130 billion plan passed last night)
Businesses with turnover down by at least 30% may receive $1,500 every fortnight towards your employees for the next six months. Payments start first week of May.
For permanent employees or casuals working with you for 12m+
PAYG Withholding & Superannuation on the JobKeeper Payment: the info we have to date is limited. For now: “You must pay a minimum
of $1,500 per fortnight to your eligible employees, withholding income tax as appropriate. The $1,500 per fortnight per employee is a before
tax amount. Where an employee is paid more than $1,500 per fortnight, the employer’s superannuation obligations will not change. Where an
employee is having their wages topped up to $1,500 per fortnight by the JobKeeper Payment, it will be up to the employer if they want to pay
superannuation on any additional wages paid by the JobKeeper Payment.”
ATO is still working on application process, but you can register for updates here: https://www.ato.gov.au/general/gen/JobKeeper-payment/
3) Commercial Rent relief
To get compulsory rent relief the Tennant must qualify for Jobkeeper.
The landlord has to allow a drop in rent at the same percentage as turnover has dropped
Lease is $10,000 per month.
The tenant has seen a 60% fall in revenue and qualifies for Jobkeeper.
The lease will be reduced by 60%
New Lease payment is $4,000.
The reduction is $6,000. Half of this amount is waived and half is deferred.
The deferred amount of $3,000 is to be paid over the remaining term of the lease (but not less than 12 months).
The waived amount of $3,000 never has to be paid.
4) Coronavirus SME Guarantee Scheme (business loans)
Maximum total size of loans of $250,000 per borrower.
The loans will be up to 3 years, with an initial 6 month repayment holiday.
The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.
Apply through your bank. But you’re also welcome to speak with Fairuz.Azli@sheridans.net.au to discuss your particular circumstances.
5) If you need assistance or advice regarding your own home loan mortgage, you are welcome to have a no-obligation conversation with Fairuz.Azli@sheridans.net.au. Call the Sheridans office to arrange a time to speak.
6) Temporary early release of superannuation
The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further
$10,000 in 2020-21. Individuals will not need to pay tax on amounts released. I suggest you speak with a financial adviser before
taking this action. You are welcome to contact John.Menelaou@sheridans.net.au
7) NEW $10,000 direct cash boost for small business - SA Government Scheme
$10,000 direct cash payment
- In business 1 March
- Greater than $75k turnover
- “must employ people”
- Less than $1.5m payroll
- Must be “highly affected or closed because of coronavirus lockdowns”
Applications open soon https://business.sa.gov.au/COVID-19-business-information-and-support
(Don't go there now, nothing is up yet)
Applications close 1 June
You may have read in the news about taking money out of super, then putting it back in to obtain a tax deduction. It doesn’t work. The ATO is aware of this scheme, and it will be very easy to data match anyone trying to do this. Don’t be like Matt.