Many of the Federal Government and State Government Coronavirus Measures cannot be fully implemented until they become Law. The state of play remains fluid and in an implementation flux. VCA will be releasing email updates as necessitated.
If your turnover is over $50m you are deemed not to be an SME/Small Business, hence the following small business measures will generally not be available to you.
- Small Business:
- Cash flow boost for employers and charities of up to $100,000, up from $25,000. The delivery model will be the ATO ICA account processing credits per $25,000 incentive.
- Eligible businesses that pay salary and wages will receive a minimum payment of $20,000, even if they are not required to withhold tax.
- Treasury factsheet link https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf
- New “Coronavirus SME Guarantee Scheme”:- Is a supported lending arrangement to small and medium-sized businesses and will be available to all businesses with a turnover of less than $50m.
- The commonwealth will guarantee 50% of an eligible loan through participating banks and non-bank lenders to businesses disrupted by the Coronavirus.
- Loans will be used for working capital purposes and be unsecured and it will be for loans granted within six months starting 1 April 2020.
- Lenders will not be charged a fee for accessing the guarantee scheme.
- Factsheet https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Supporting_the_flow_of_credit_1.pdf
- Financially distressed business fact sheet https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf
- Early access to Super:
- The withdrawals will be available from April. Withdrawals will be capped at $10,000 this financial year, and a further $10,000 next financial year, and will be tax-free.
- Withdrawals will be available to those eligible for the Coronavirus supplement as well as sole traders whose hours or income has fallen 20% or more as a result of Coronavirus.
- Early indication is that in order to access this withdrawal your link is via the MyGov website.
- ATO Factsheet link https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Early_Access_to_Super.pdf
- Coronavirus Business Liaison Unit – https://treasury.gov.au/policy-topics/business-and-industry/coronavirus-business-liaison-unit
- An extra $550 a fortnight.
- For the unemployed the supplement will be paid for the next six months.
- For Sole Business Applicants they will make a declaration to Centrelink that their business has been suspended or had turnover reduced significantly as a result of the downturn.
- For Reduced Hours, if after 1 January 2020 you were made redundant or your working hours were reduced by 20% or more you will also be granted access.
- Factsheet: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf
- Individual early access to Super Factsheet https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf
- Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50% for 2019-20 and 2020-21.
- Factsheet https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_support_for_retirees_to_manage_market_volatility.pdf
- $550m which would go to 24,000 small and medium-sized enterprises with a payroll of less than $3m as a payroll tax refund. “This is not a tax cut,” Mr Andrews said today. “It is a refund back in the accounts of businesses in just a few days’ time”.
- $500m would be put into a fund for hardship payments, small grants and tailored support which would be distributed in consultation with the Victorian Chamber of Commerce and Industry, the Australian Hotels Association, the Australian Industry Group and other industry representatives.
- The Victorian Government has announced a $500m package to assist people who have lost their jobs at this difficult time. Under the Working for Victoria Fund, displaced workers will be eligible to apply for different types of work. https://www.vic.gov.au/workingforvictoria
For further information, please contact Noé Vicca at firstname.lastname@example.org.
Date of Issue: 23 March 2020 Author: Noé Vicca
Disclaimer: The contents herein are intended for general information only and should not be construed as legal or accounting advice. Vicca Chartered Accountants Brisbane bears no responsibility for any loss that might occur from reliance on information contained in this publication. Please do not reproduce, transmit or distribute the contents herein in any form without prior permission from Vicca Chartered Accountants, Taxation Accountants Brisbane Australia.