An update from our Blog of March 19th, we can advise the following changes;
SOLE TRADERS & CASUAL EMPLOYEES
Where you cannot work, you may need to register for Jobseeker payments – you can do this online with Services Australia via your myGov account. From April 2020, the application process will be accelerated removing some requirements to make it easier to claim. The one week waiting time has also been waived.
Upon receipt of Jobseeker payments, you will be eligible for “time-limited Coronavirus Supplement” to be paid at $550 per fortnight for the next six months.
If your working hours reduce by 20% or more (casual staff) or your turnover has reduced by 20% or more, you are eligible to access your superannuation early. Up to $10,000 before July 1st, 2020 and a up to a further $10,000 from 1 July 2020 (approx. 3 month window). You can apply directly to the ATO www.my.gov.au. Your fund makes the payment to you upon the ATO’s instruction, you do not need to apply directly to your fund. Early Release applications will be available from mid-April 2020. The amounts will be “tax-free”.
Small Business Instant Asset Write Off – currently assets below $30,000 are able to be claimed in full until June 30th, 2020 – this may be increased to $150,000. Note, if you don’t purchase an asset and your Small Business Pool balance is below $150,000, this balance will also be written off!
Eligible Employers – Boosting Cash Flow for Employers - a credit on your business activity statement account will be issued from 28 April 2020. The amount will be 100% (originally 50% announced) of your tax withholding amounts paid between January 2020 and June 2020. The payment is “tax-free” and is capped at $50,000 (originally $25,000 cap). You will see the credits apply in two amounts, once after the March 2020 BAS is lodged and another after the June 2020 BAS is lodged. An additional payment is being introduced in the July – October 2020 period – this will be 50% of the first “Boosting Cash Flow for Employers” payment amount. The amounts will be paid automatically, you do not need to apply for the payment.
Employers of Apprentices and Trainees – Eligible employers can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wages paid during the 9 months from 1 January 2020 to 30 September 2020. The maximum reimbursement is $21,000 per apprentice/trainee. Available to small business employers with less than 20 full time employees. The apprentice/trainee will already be employed (from 1 March 2020). Registering for the subsidy will be from 2 April 2020 (final claims must be lodged by 31 December 2020). https://www.employment.gov.au/supporting-apprentices-and-trainees
The above incentives are the main ones affecting small to medium sized businesses, more information is available on the Treasury Website
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advise to independently verify their interpretation and the information's applicability to their particular circumstances.