STIMULUS INFORMATION
As businesses continue to grapple with enormous challenges posed by Covid-19 it is hugely important not to make decisions without understanding what support is available from the Federal Government as well from State and Territory Governments.
For additional information, check out the latest Blog posts on the Master Builders Australia website.
Important links to Australian Government assistance for Businesses
The Federal Government has announced its $130 billion wage support (JobKeeper Payment) for businesses affected by the coronavirus.
The key points:
- $130billion package to subsidise employee wages and keep people in jobs.
- The payment will see the Commonwealth pay employers $1500 per fortnight, per employee, to subsidise wage costs, if the employer can demonstrate their business has suffered a reduction in turnover by at least 30% (50% if annual turnover is greater than $100million). This amount reflects 70% of median wage.
- The first payments will be made in the first week of May, for the period commencing 1 March 2020.
- Payments will be made by the ATO, based on Single Touch Payroll Reporting data, in arrears for the previous month.
- The payment will capture full time, part time, and casual employees that have been employed for at least 12 months.
- Eligible businesses are companies, partnerships, trusts and sole traders, not for profits, and charities.
Online resources available include:
- JobKeeper – Frequently asked questions
- JobKeeper – A factsheet for employers
- JobKeeper – A factsheet for employees
- JobKeeper payment for employers and employees
- Supporting Apprentices and Trainees and the JobKeeper payment
Register interest in the JobKeeper Payment with the ATO here:
More Information?
The Australian Government has announced measures to support businesses impacted by the coronavirus (COVID-19). If you’re a sole trader, learn what your business can get and where to go for help.
The Australian Government has announced measures to support businesses impacted by the coronavirus (COVID-19).If you run a company, learn what your business can get and where to go for help.
Provides up to $100,000 back to small and medium-sized businesses, with a minimum payment of $20,000 for eligible businesses. The payments will provide cash flow support to businesses with a turnover of less than $50 million and not-for-profit entities that employ staff.
The payment will be tax free.
If you employ an apprentice or trainee you may be eligible for a wage subsidy of 50 per cent of their wage paid from 1 January 2020 to 30 September 2020.
You can register for the subsidy from early April 2020.
Expanding eligibility to income support payments and establishing a new, time limited coronavirus supplement. Payments will commence from 27 April 2020.
Individuals affected by the coronavirus can access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. You will be able to apply for early release of your superannuation from 20 April 2020.
$1 billion has been set aside to support regions and communities most significantly affected by the Coronavirus. These funds will be available to assist during the next few months and over the year ahead to ensure these communities are well placed to recover.
The Government, Reserve Bank of Australia and the Australian Prudential Regulation Authority have taken coordinated action to support the flow of credit in the Australian economy, in particular for small and medium enterprises (SMEs).
There is a temporary increase to the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive. This includes temporary relief for directors from any personal liability for trading while insolvent, and providing temporary flexibility in the Corporations Act 2001 to provide temporary and targeted relief from provisions of the Act.
The instant asset write-off threshold has been increased from $30,000 to $150,000 and expanded access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million). This applies from 12 March 2020 until 30 June 2020, for new or second‑hand assets first used or installed ready for use in this timeframe.
Find the latest coronavirus information, grants and support in your state or territory.
A time limited 15 month investment incentive to support business investment and economic growth over the short term, by accelerating depreciation deductions. This applies to eligible assets acquired from 12 March 2020 and first used or installed by 30 June 2021. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset cost.
If you’re an existing government program grantee and have been impacted by the coronavirus, you may be eligible to seek additional time to meet your reporting obligations or to complete your project.