Government Packages and Financial Support for Your Business
Here are key Australian coronavirus (Covid-19) business support schemes that may help your business through the pandemic
We know you, our Houzz professionals, are doing your best to run your business and provide for your employees during this difficult time. To help you navigate this tricky environment, we have put together an overview of some of the stimulus benefits and relief available from both the Federal Government as well as the state governments for small and medium-sized businesses, as well as the self-employed.
Please bear in mind that the information below is not legal advice. For questions specific to your business, it’s advisable to consult with an accountant or solicitor.
Finally, the below provides a brief overview of some of the stimulus schemes and packages that may help you, our professional community. It is not intended to cover all aspects of each scheme or package.
Please bear in mind that the information below is not legal advice. For questions specific to your business, it’s advisable to consult with an accountant or solicitor.
Finally, the below provides a brief overview of some of the stimulus schemes and packages that may help you, our professional community. It is not intended to cover all aspects of each scheme or package.
What about sole traders?
The JobKeeper Payment is available for sole traders who meet certain criteria outlined here. If you are a sole trader and don’t meet the eligibility criteria, you may be eligible for the JobSeeker payment (more information on that is available here). Note, you cannot claim the JobKeeper and the JobSeeker payments at the same time.
How do I apply?
You can enrol for the JobKeeper Payment through the ATO’s Business Portal, in ATO online services using myGov if you are a sole trader, or through a registered tax or BAS agent. Detailed instructions on how to enrol for the JobKeeper Payment are available here.
Update on May 18 2020: Extension of time to enrol to 31 May 2020.
The Commissioner has extended the time to enrol for the initial JobKeeper period to 31 May 2020.
If you enrol by 31 May, you will still be able to claim for the fortnights ending in April and May provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight.
For the first two fortnights (30 March-12 April, 13 April-26 April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by 8 May. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.
The JobKeeper Payment is available for sole traders who meet certain criteria outlined here. If you are a sole trader and don’t meet the eligibility criteria, you may be eligible for the JobSeeker payment (more information on that is available here). Note, you cannot claim the JobKeeper and the JobSeeker payments at the same time.
How do I apply?
You can enrol for the JobKeeper Payment through the ATO’s Business Portal, in ATO online services using myGov if you are a sole trader, or through a registered tax or BAS agent. Detailed instructions on how to enrol for the JobKeeper Payment are available here.
Update on May 18 2020: Extension of time to enrol to 31 May 2020.
The Commissioner has extended the time to enrol for the initial JobKeeper period to 31 May 2020.
If you enrol by 31 May, you will still be able to claim for the fortnights ending in April and May provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight.
For the first two fortnights (30 March-12 April, 13 April-26 April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by 8 May. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.
2. PAYG Withholding Relief: Tax-Free Cash Flow
Eligible businesses may be eligible to receive between $20,000 and $100,000 (depending on your PAYG withholding obligations for the period of 1 January 2020 to 30 June 2020) by lodging their business activity statements.
The payments are tax-free and will be applied as a credit in the activity statement system when you lodge your activity statements from 28 April 2020. Any remaining balance after the credit is applied will be paid into the bank account of the business. In practical terms, this means that you get to keep amounts you have withheld from wages rather than remitting those amounts to the ATO as you usually would.
More information, including eligibility and how to apply, is available here.
Eligible businesses may be eligible to receive between $20,000 and $100,000 (depending on your PAYG withholding obligations for the period of 1 January 2020 to 30 June 2020) by lodging their business activity statements.
The payments are tax-free and will be applied as a credit in the activity statement system when you lodge your activity statements from 28 April 2020. Any remaining balance after the credit is applied will be paid into the bank account of the business. In practical terms, this means that you get to keep amounts you have withheld from wages rather than remitting those amounts to the ATO as you usually would.
More information, including eligibility and how to apply, is available here.
3. Instant Asset Write-Off
From 12 March 2020 until 30 June 2020, the ATO has increased the Instant Asset Write-Off threshold for businesses from $30,000 to $150,000 (as well as expanded access to the write-off).
This measure applies to both new and second-hand assets first used or installed ready for use in the period beginning 12 March 2020 and ending on 30 June 2020.
From 1 July 2020 onwards, the instant asset write-off will only be for small businesses with a turnover of less than $10 million and the threshold will be $1,000.
More information, including with respect to eligibility, thresholds and exclusions, is available here.
From 12 March 2020 until 30 June 2020, the ATO has increased the Instant Asset Write-Off threshold for businesses from $30,000 to $150,000 (as well as expanded access to the write-off).
This measure applies to both new and second-hand assets first used or installed ready for use in the period beginning 12 March 2020 and ending on 30 June 2020.
From 1 July 2020 onwards, the instant asset write-off will only be for small businesses with a turnover of less than $10 million and the threshold will be $1,000.
More information, including with respect to eligibility, thresholds and exclusions, is available here.
4. Backing Business Investment
The ATO is enabling eligible businesses to claim a higher deduction if they deduct the cost of new depreciating assets at an accelerated rate.
More information is available here.
For more stories and resources to help manage your business, visit Houzz’s section for professionals
The ATO is enabling eligible businesses to claim a higher deduction if they deduct the cost of new depreciating assets at an accelerated rate.
More information is available here.
For more stories and resources to help manage your business, visit Houzz’s section for professionals
5. Early release of superannuation
Individuals (including eligible sole traders) may be able to access up to $20,000 of their superannuation early without needing to pay tax on those amounts accessed or include it in their tax return. Specifically, Australian and New Zealand citizens and permanent residents can apply to access up to:
Am I eligible?
For Australian and New Zealand citizens and permanent residents, you need to satisfy one or more of one of the following requirements:
There are other limited circumstances where you may be able to gain early access to part of your superannuation. For example, due to severe financial hardship or a terminal medical condition.
More information is available via the ATO website linked above.
How do I apply?
The application is available through ATO onlines services in myGov.
Individuals (including eligible sole traders) may be able to access up to $20,000 of their superannuation early without needing to pay tax on those amounts accessed or include it in their tax return. Specifically, Australian and New Zealand citizens and permanent residents can apply to access up to:
- $10,000 of their super until 30 June 2020.
- A further $10,000 from 1 July 2020 until 24 September 2020.
Am I eligible?
For Australian and New Zealand citizens and permanent residents, you need to satisfy one or more of one of the following requirements:
- You are unemployed.
- You are eligible to receive a JobSeeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.
- You were made redundant.
- Your working hours were reduced by 20 percent or more.
- If you were a sole trader, your business was suspended or there was a reduction in your turnover of 20 percent or more.
There are other limited circumstances where you may be able to gain early access to part of your superannuation. For example, due to severe financial hardship or a terminal medical condition.
More information is available via the ATO website linked above.
How do I apply?
The application is available through ATO onlines services in myGov.
State and Territory Stimulus Measures
Most states and territories have introduced economic stimulus measures to support local business sectors and have set up dedicated web resources to help businesses navigate the various relief available. Such measures include payroll tax relief, relief measures for commercial tenants (in addition to the Federal relief noted above) as well as small business grants. For more information on the specific measures available in each state, see the below links.
As a reminder, please note that the information we have provided is not legal advice and may change quickly given the dynamic environment. For questions specific to your business, it’s advisable to consult with an accountant or solicitor. For tips on managing your business during COVID-19, check out our Resilience resources here.
Your turn
What have you found helpful in keeping your business buoyant during this time? Share your tips in the Comments below, like this story, save the images, and join the conversation.
Most states and territories have introduced economic stimulus measures to support local business sectors and have set up dedicated web resources to help businesses navigate the various relief available. Such measures include payroll tax relief, relief measures for commercial tenants (in addition to the Federal relief noted above) as well as small business grants. For more information on the specific measures available in each state, see the below links.
As a reminder, please note that the information we have provided is not legal advice and may change quickly given the dynamic environment. For questions specific to your business, it’s advisable to consult with an accountant or solicitor. For tips on managing your business during COVID-19, check out our Resilience resources here.
Your turn
What have you found helpful in keeping your business buoyant during this time? Share your tips in the Comments below, like this story, save the images, and join the conversation.
1. JobKeeper Payment
Affected employers may be able to access the JobKeeper Payment through the Australian Taxation Office (ATO). The payment enables employers, sole traders and other entities to pay their eligible employees’ salary or wages of at least $1,500 (before tax) per fortnight. Eligible employees include permanent full-time or part-time employees as well as long-term casual employees.
Am I eligible?
As an employer, you are eligible if you satisfy all of the following:
- On 1 March 2020, you carried on a business in Australia.
- You employed at least one eligible employee on 1 March 2020.
- Your eligible employees are currently employed by your business.
- Your business has faced a 30 percent fall in turnover (for an aggregated turnover of $1 billion or less).
More information on eligibility is available here.