Economic Stimulus – Up to now
As you may be aware, the Australian Federal / State Government has announced an economic response to the Coronavirus and its threat on the Australian economy. This has resulted in the introduction of various taxation and cash reliefs. Please see below for a breakdown of the stimulus package and determine whether or not you or your business can benefit. We have summaries varies governments initiative for your benefit. We only focused on business benefits.
Fed Govt Economic Stimulus – 2
- The Government is providing up to $100,000 to eligible small and medium sized businesses, and not‑for-profits (including charities) that employ people, with a minimum payment of $20,000. (100 per cent of PAYG withheld, with a minimum $20,000 payment and up to a cap of $100,000 over 9 months)
- Coronavirus SME Guarantee Scheme – Under the Scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs.
- Providing temporary relief for financially distressed businesses – Temporarily increasing 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. The package also includes temporary relief for directors from any personal liability for trading while insolvent.
Fed Govt Economic Stimulus – 1
- Increasing the instant asset write-off Lifting the threshold to $150,000 (from $30,000).
- Investment Offering businesses a time-limited incentive to invest, by accelerating depreciation deductions.
- Supporting apprentices and trainees Wage assistance to help small businesses to keep their apprentices and trainees
NSW
- Waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the rest of 2019-20)
- Bring forward the next round of payroll tax cuts by raising the threshold limit to $1 million in 2020-21;
- $80 million to waive a range of fees and charges for small businesses including bars, cafes, restaurants and tradies
- More than $250 million to bring forward maintenance on public assets including social housing and crown land fencing;
- $500 million to bring forward capital works and maintenance
VIC
- Payroll tax refunds for the 2019-20 financial year to small and medium-sized businesses with payroll of less than $3 million.
- The same businesses will also be able to defer any payroll tax for the first three months of the 2020/21 financial year until 1 January 2021.
- Commercial tenants in government buildings can apply for rent relief – a move private landlords are also being encouraged to undertake – and 2020 land tax payments will be deferred for eligible small businesses.
- The Government will pay all outstanding supplier invoices within five business days. The private sector is urged to do the same where possible.
- Waiving liquor licensing fees for 2020 for affected venues and small businesses.
- $500 million to establish a Business Support Fund. The fund will support the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail
WA
- $17,500 grants for small businesses with a payroll between $1 million and $4 million.
- The $1 million payroll tax threshold (announced in October 2019) will be brought forward by six months to 1 July 2020.
- Businesses impacted by COVID-19 can apply now to defer payment of their 2019-20 payroll tax until 21 July 2020.
QLD
- Establish a $500m concessional loan facility, comprising loans of up to $250,000 to eligible businesses. These loans will come with an initial 12-month interest free period, to assist businesses retain staff during the downturn.
- Extend the payroll tax deferral measure, originally for businesses with taxable wages of $6.5m or less affected by natural disasters, to all COVID-19 affected businesses with taxable wages of $6.5m or less. This will extend the due date for the lodgement and payment of remaining 2019-20 payroll tax returns to 31 July 2020.
TAS
- Interest Free Business Loans for Small Business – $20 million in interest free loans to small businesses in the hospitality, tourism, seafood production, and exports sectors. The loans will be available to businesses with a turnover of less than $5 million to purchase equipment or restructuring business operations and will be interest free, for three years.
- Payroll Tax Waivers – Payroll tax liabilities will be waived for hospitality, tourism and seafood industry businesses for the last four months of 2019-20.
- Improving Small Business Cash Flows -Payment terms by Government agencies will be reduced from 30 days to 14 days; and
- Targeted Small Business Grants Program for Apprenticeships and Traineeships – The targeted Small Business Grants Program provides a $5,000 grant for businesses that hire an apprentice or trainee in the tourism, hospitality, building and construction, and manufacturing industries.
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