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August 2020
PARTNER
INFORMATIONPACK
COVID-19
DISCLAIMER
Whilst carsales has taken care to ensure the accuracy of the material contained in this document, carsales does not make any representations or
warranties regarding the accuracy or completeness of such material. You are responsible for assessing the accuracy of the material and rely on it at
your own risk. Given the quickly evolving nature of the COVID-19 pandemic, please confirm details of products or services with the relevant company
or government agency. carsales excludes all liability for loss or damage (including indirect or consequential loss or damage) which may be incurred in
connection with your use or reliance on the material contained in this document (other than liability which cannot be lawfully excluded).
The information provided in this document is of a general nature only and is not financial or legal advice. You should consider the appropriateness of
this information for your specific circumstances and consider obtaining independent financial, legal or other professional advice. Products and
services referred to in this document that are offered by third parties are subject to the third party's terms and conditions. Please contact the third
party product or service provider to confirm the details set out in this document and to obtain a copy of the relevant Product Disclosure Statement
(where applicable).
2
3
BANKING OVERVIEW
BANKING OVERVIEW
• The major banks, in conjunction with the Australian Banking Association (ABA)
and Federal Government have worked to put together financial support for SMEs
• These support tools typically include:
• Deferral of principal and interest loan repayments for 6 months
• Reduced interest rates
• Increased access to credit
• Waived fees and charges
• Initiatives outlined are as at date of publication. As details are still emerging and
quickly evolving, please confirm the details of each initiative with the relevant
bank.
4
NATIONAL AUSTRALIA BANK
INITIATIVE DETAIL* ELIGIBILITY*
DEFERRAL OF LOAN REPAYMENTS
Defer principal and interest for up to six months on a range of business loans including floating and variable rate loans, and equipment finance loans. Initiative extended, on a cases by case basis, by up to a further 4 months, ending no later than 31 March 2021.
Eligibility for small and medium sized customers. Contact your relationship manager to confirm eligibility
REDUCED RATES
Receive a 200 basis point rate cut on QuickBiz loans and overdrafts, effective March 30
Receive an additional 100 basis point reduction on variable rates for small business loans, effective March 30
All
IMPROVED CREDIT ACCESS
Unsecured loan of up to $250,000. The new NAB Business
Support Loan has no establishment or account fee for a period of
up to 3 years. The loan has a variable rate of 4.5% p.a. with no
repayments due for 6 months
Lending criteria appliesAnnual turnover under $50m
JOBKEEPER SUPPORT
NAB can help customers access temporary finance options
ahead of the JobKeeper assistance payment being received.
Available to existing NAB customers with a business transaction
account. Interest is payable. Approved business customers will
have access to the NAB JobKeeper Overdraft until 31
October 2020.
Business Name and ABN stipulated on the ATO confirmation must match the trading entity that holds the NAB business transaction account.Account conduct must be in order.JobKeeper Assistance must not have been provided by other financiers
*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions
5
NATIONAL AUSTRALIA BANK
INITIATIVE DETAIL* ELIGIBILITY*
DEFERRAL OF CREDIT CARD EXPENSES
Defer business credit card repayments for up to 6 months
Eligibility for small and medium sized customers, contact your relationship manager to confirm eligibility
WAIVED MERCHANT FEESRequest merchant terminal fees are waived until the end of July 2020, except for Victoria, where this support will remain until the end of August 2020.
Eligibility for small and medium sized customers, contact your relationship manager to confirm eligibility
COVENANT SUPPORTReporting and financial covenants temporarily waived until 30 September 2020
Small and medium enterprise (SMEs)Contact your banker to confirm eligibility
*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions
6
COMMONWEALTH BANK OF AUSTRALIA
7
INITIATIVE DETAIL* ELIGIBILITY*
NEW LOANS AVAILABLE
Offering an unsecured loan of up to $250,000 (lending criteria applies) with no establishment or account fees, and no repayments required for six months. 4.5% interest rate p.a. New loans only.
Less than $50m turnover
DEFERRAL OF LOAN REPAYMENTS
CBA automatically enrolled business and community customers for a three month repayment deferral on all eligible BetterBusiness loans and equipment loans from April 2020. CBA extended this deferral for all eligible customers for an additional three months through to September 2020.
In July 2020 the Government announced a further repayment deferral of up to four months on eligible business loans, for customers impacted by coronavirus. CBA are offering this and other support to customers on a case by case basis depending on their individual circumstances.
*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions
COMMONWEALTH BANK OF AUSTRALIA
8
INITIATIVE DETAIL* ELIGIBILITY*
REDUCED RATESReducing our small business loans by 1% across all business loans where the
variable rate is calculated based on the current cash rateAll
DEFERRAL OF OVERDRAFT PAYMENTS
Deferring repayments on overdraft products for 90 daysContact your relationship manager
WAIVING REDRAW FEESWaiving early redraw fees on business term deposit accounts (including Farm Management Deposit accounts)
Contact your relationship manager
WAIVING ESTABLISHMENT AND EXCESS INTEREST FEES
Waiving establishment fees and excess interest on Temporary Excess productsContact your relationship manager
*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions
COMMONWEALTH BANK OF AUSTRALIA
9
INITIATIVE DETAIL* ELIGIBILITY*
JOBKEEPER SUPPORT
CBA has a dedicated JobKeeper line in its call centers. They have also launched an
online application form for small businesses seeking to borrow funds in advance of
receiving the government payment
Existing customers who hold an eligible business transaction account, overdraft, business line of creditTo access this support:
You’ll need be able to evidence that you’ve registered for the JobKeeper payment
CBA will give you access to these funds where you have selected your CBA account as the payment source for the ATO to deposit the JobKeeper payment
*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions
ANZ
10
INITIATIVE DETAIL* ELIGIBILITY*
NEW LOANS AVAILABLE
New three-year business loan of up to $250,000, with a six-month deferral on repayments; or
New six-month business overdraft of up to $250,000, with a six-month deferral of interest. At the end of the six months, you will have the option of fully repaying the overdraft or rolling the balance into a term loan for up to 2.5 years
Customers who are small and medium-sized businesses with a turnover of less than $50 million can applyThe loan must be used to support your current and upcoming business cash flow needs only (including working capital, liquidity and operating expenditure)The loan cannot be used to refinance drawn facilities with us or another lenderAvailable for new borrowing only, which must be unconditionally approved by 30 September 2020
REDUCED RATESDecrease variable interest small business loan rates in Australia by 25 basis points, effective from 27 March 2020 All
DEFERRAL OF LOAN REPAYMENTS
All impacted customers can request a six-month payment deferral on loan repayments for term loans, with interest capitalized. Initiative updated on 30/3/20 to include loan facilities up to $10m. On a case-by-case basis, ANZ may provide an extension to existing loan repayment deferrals of up to four months.
Eligibility for small and medium sized customers, contact your relationship manager to confirm eligibility
INCREASING OVERDRAFT FACILITIES
Making available temporary increases in overdraft facilities for 12 months
Eligibility for small and medium sized customers, contact your relationship manager to confirm eligibility
*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions
ANZ
11
INITIATIVE DETAIL* ELIGIBILITY*
JOBKEEPER SUPPORTANZ has created a dedicated hotline and is prioritising business customers eligible for Job Keeper payments. ANZ will help bridge the gap until JobKeeper payments are received
Businesses eligible for JobKeeper
*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions
WESTPAC / ST GEORGE
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INITIATIVE DETAIL* ELIGIBILITY*
NEW LOANS AVAILABLEUnsecured three-year term loan up to $250,000 for eligible new and existing customers with turnover of less than $50M
Small business customers who have unsecured loans up to $250,000 relating to COVID-19
BUSINESS CREDIT CARD RELIEF
Eligible customers can defer repayments for business credit cards including Altitude Business and BusinessChoice, for 6 months. Eligible customers will also receive an interest rate reduction to 9.46% per annum on new and outstanding purchases and cash balances during the deferred repayment period
Business connections impacted by COVID-19:with total business exposure of less than $10 million per customer group; where the business is operated in Australia with less than 20% foreign ownership; and for those customer's above $3 million total business exposure, with current facilities that have not been in arrears in the last 90 days.
DEFERRING LOAN PAYMENTS
Repayment relief for small business customers: Westpac and St George small
business customers who need help to manage their cash flow can defer principal
and interest repayments of business term loans for up to six months.
Customers that need additional support at the expiry of their business loan
repayment deferral period can apply to extend their repayment deferral
period by up to four months. Extension of the deferral period is subject to
eligibility criteria and further credit assessment.
Business connections impacted by COVID-19:with total business exposure of less than $10 million per customer group; where the business is operated in Australia with less than 20% foreign ownership; and for those customer's above $3 million total business exposure, with current facilities that have not been in arrears in the last 90 days.
*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions
WESTPAC / ST GEORGE
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INITIATIVE DETAIL* ELIGIBILITY*
JOBKEEPER SUPPORT
Launched customer helpline for businesses impacted by COVID-19 who are waiting
for Federal Government JobKeeper payments to come through in May. Funding
support is also available for eligible businesses via exiting and new overdraft
facilities.
Meet the ATO JobKeeper eligibility criteria;Confirm that your business has enrolled for the JobKeeper Payment Scheme;Declare that the amount requested is aligned to the funds needed to pay the wages and salaries of your eligible employees;Hold an existing Westpac account in the same name as the Business registered under the JobKeeper Payment scheme. This must be the same account that the JobKeeper payments are paid into; andBe able to provide evidence of recent payroll payments for the last two months
*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions
1414
FEDERAL GOVERNMENT STIMULUS OVERVIEW
FEDERAL GOVERNMENT STIMULUS OVERVIEW
15
• The Australian Federal Government has taken a number of steps including:
• A ‘JobKeeper’ program
• A guarantee of 50 per cent to SME lenders for new unsecured loans to
be used for working capital
• Payments to small to medium sized businesses
• Apprentice and trainee subsidies
• Relaxation of some directors' duties regarding trading while insolvent
• Instant asset write-off increases
• Accelerate depreciation measures
• The following slides are intended to be an indicative guide as to policy actions
taken by the Federal Government. As details are still emerging and government
policies are quickly evolving, please confirm the details of each initiative with the
relevant government agency.
FEDERAL GOVERNMENT
16
PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
Job Keeper Extension
Summary
The JobKeeper Payment, which was originally due to run until 27 September 2020, will now continue to be available to eligible businesses
(including the self-employed) until 28 March 2021. In addition, from 3 August 2020 the relevant date of employment will move from 1 March to
1 July 2020, increasing employee eligibility for the existing scheme.
The payment rate will be reduced from the current rate in two steps. Payments will reduce from 28 September 2020 and again on 4 January
2021. From 28 September 2020, the rates that apply for those who worked fewer than 20 hours per week will be lower.
In order to be eligible for the JobKeeper Payment from 28 September 2020, businesses will have to meet a further decline in turnover test for
each of the two periods of extension, as well as meeting the other existing eligibility requirements for the JobKeeper Payment.
Company eligibility
In order to be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, businesses and not-for-profits
will need to demonstrate that their actual GST turnover has fallen in the September quarter 2020 relative to a comparable period (generally
the corresponding quarter in 2019).
In order to be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, businesses will need to
demonstrate that their actual GST turnover has fallen in the December quarter 2020 relative to a comparable period (generally the
corresponding quarters in 2019).
FEDERAL GOVERNMENT
17
PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
Job Keeper Extension
Company eligibility (cont’d)
To be eligible for JobKeeper Payments under the extension, businesses will need to demonstrate that they have experienced the following
decline in turnover (which remains the same as existing rules):
• 50 per cent for those with an aggregated turnover of more than $1 billion;
• 30 per cent for those with an aggregated turnover of $1 billion or less
The JobKeeper Payment will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests
that apply during the relevant JobKeeper Payment period.
The Commissioner of Taxation will have discretion to set out alternative tests that would establish eligibility in specific circumstances where it
is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019, in line with the Commissioner’s
existing discretion.
As the deadline to lodge a BAS for the September quarter or month is in late October, and the December quarter (or month) BAS deadline is in
late January for monthly lodgers or late February for quarterly lodgers, businesses and not-for-profits will need to assess their eligibility for
JobKeeper in advance of the BAS deadline in order to meet the wage condition (which requires them to pay their eligible employees in advance
of receiving the JobKeeper payment in arrears from the ATO). The Commissioner of Taxation will have discretion to extend the time an entity
has to pay employees in order to meet the wage condition, so that entities have time to first confirm their eligibility for the JobKeeper
Payment.
FEDERAL GOVERNMENT
18
PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
Job Keeper Payment
Employee eligibility
The eligibility rules for employees remain unchanged. This means you are eligible if you:
• are currently employed by an eligible employer (including if you were stood down or re-
hired)
• were for the eligible employer (or another entity in their wholly-owned group) either:
– a full-time, part-time or fixed-term employee at 1 July 2020; or
– a long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 and not a permanent
employee of any other employer.
• were aged 18 years or older at 1 July 2020 (if you were 16 or 17 you can also qualify for fortnights before 11 May 2020, and continue to
qualify after that if you are independent or not undertaking full time study).
• were either:
– an Australian resident (within the meaning of the Social Security Act 1991); or
– an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at
1 March 2020.
• were not in receipt of any of these payments during the JobKeeper fortnight:
– government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010; or
– a payment in accordance with Australian worker compensation law for an individual's total incapacity for work.
Only one employer can claim the JobKeeper Payment in respect of an employee.
FEDERAL GOVERNMENT
19
PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
JobKeeper Payment
Employee eligibility (cont’d)
The self-employed will be eligible to receive the JobKeeper Payment where they meet the relevant turnover test, and are not a permanent
employee of another employer.
Employees will continue to receive the JobKeeper Payment through their employer during the period of the extension if they and their
employer are eligible and their employer is claiming the JobKeeper Payment.
The JobKeeper payment rates
From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:
• $1,200 per fortnight for all eligible employees who were working in the business for 20 hours or more a week on average in the four weeks of
pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 20
hours or more per week on average; and
• $750 per fortnight for other eligible employees and business participants
From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:
• $1,000 per fortnight for all eligible employees who were working in the business for 20 hours or more a week on average in the four weeks of
pay periods before either 1 March 2020 or 1 July 2020, and for business participants who were actively engaged in the business for 20 hours or
more per week on average; and
• $650 per fortnight for other eligible employees and business participants.
Businesses will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants).
FEDERAL GOVERNMENT
20
PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
Job Keeper Payment
Implications for those accessing services through Services Australia (Job Seeker allowance, for example)
In circumstances where an employee is accessing support though Services Australia because they have been stood down or had their hours
reduced and the employer will be eligible for the JobKeeper Payment, the employee will need to advise Services Australia of their new income
Application and reporting
Employers must elect to participate in the scheme. They will need to make an application to the Australian Taxation Office (ATO) and provide
supporting information demonstrating a downturn in their business. In addition, employers must report the number of eligible employees
employed by the business on a monthly basis
FEDERAL GOVERNMENT
21
INITIATIVE DETAIL ELIGIBILITY* TIMING HOW
RENT RELIEF On 7 April 2020, the Federal Government announced a mandatory Code of Conduct on SME commercial leasing principles during COVID-19
The key elements of the code are:
Rent is reduced in proportion to the reduction in the tenant’s turnover
Rent relief may be provided through both rental waivers and deferrals on the condition that at least 50 percent is in the form of a waiver and any deferral is recovered over the term of the lease, or at least 12 months if the lease is shorter than 12 months
Landlords must not terminate leases due to non-payment of rent during the COVID-19 pandemic period
Tenants must remain committed to the terms of their lease, subject to any amendments to their rental agreement negotiated under this Code
(This is a non-exhaustive list of code principles)
Applies to all tenancies that are suffering financial stress or hardship as a result of the coronavirus crisis as defined by their eligibility for the Federal Government’s JobKeeper payment, with an annual turnover of up to $50 million
The $50 million annual turnover threshold will be applied in respect of franchises at the franchisee level, and in respect of retail corporate groups at the group level (rather than at the individual retail outlet level)
The Parties to this Code concur that during the COVID-19 pandemic period, the principles of this Code should nevertheless apply in spirit to all leasing arrangements for affected businesses, having fair regard to the size and financial structure of those businesses
This Code comes into effect in all states and territories from a date following 3 April 2020 to be defined by each jurisdiction, for the period during which the Commonwealth JobKeeper program remains operational
The arrangements agreed to by the landlord and tenant will be subject to a binding mediation process and mandatory code of conduct overseen by state and territory governments
The Code will be given effect through relevant state and territory legislation or regulation as appropriate. The Code is not intended to supersede suchlegislation, but aims to complement it during the COVID-19 crisis period
Code:https://www.pm.gov.au/sites/default/files/files/national-cabinet-mandatory-code-ofconduct-sme-commercial-leasing-principles.pdf
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
FEDERAL GOVERNMENT
22
INITIATIVE DETAIL ELIGIBILITY* TIMING HOW
BOOSTING CASH FLOW FOR EMPLOYERS -INITIAL PAYMENT
The Government is providing up to $100,000 to eligible small and medium sized businesses that employ people, with a minimum payment of $20,000, over two tranches
Under the enhanced scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld up to $50,000 and a minimum of $10,000, for each tranche. The second tranche is referred to below as an ‘additional payment’
Small and medium sized business entities with aggregated annual turnover under $50 million and that employ workers. Eligibility will generally be based on prior year turnover
The payments will only be available to active eligible employers established prior to 12 March 2020
The payment will be delivered by the ATO as an automatic credit in the activity statement system from 28 April 2020 upon employers lodging eligible upcoming activity statements. Where this places the entity in a refund position, the ATO will deliver the refund within 14 days
Refer Table A on next slide
Via the lodgment of the BAS statement in accordance with normal timetable and process
BOOSTING CASH FLOW FOR EMPLOYERS –ADDITIONAL PAYMENT
An additional payment is also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments
To qualify for the additional payment, the entity must continue to be active
The additional payment will be applied to a limited number of activity statement lodgments
The ATO will deliver the payment as a credit to the entity upon lodgment of their activity statements
Where this places the entity in a refund position, the ATO will deliver the refund within 14 days
Refer to Table B on next slide
Via the lodgment of the BAS statement in accordance with normal timetable and process
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
FEDERAL GOVERNMENT
23
TABLE A
TABLE B
TYPE OF LODGER ELIGIBLE PERIOD LODGMENT DUE DATE
QUARTERLYQuarter 3 (January, February and March 2020) 28 April 2020
Quarter 4 (April, May and June 2020) 28 July 2020
MONTHLY
March 2020 21 April 2020
April 2020 21 May 2020
May 2020 21 June 2020
June 2020 21 July 2020
TYPE OF LODGER ELIGIBLE PERIOD LODGMENT DUE DATE
QUARTERLYQuarter 4 (April, May and June 2020) 28 July 2020
Quarter 1 (July, August and September 2020) 28 October 2020
MONTHLY
June 2020 21 July 2020
July 2020 21 August 2020
August 2020 21 September 2020
September 2020 21 October 2020
FEDERAL GOVERNMENT
24
INITIATIVE DETAIL ELIGIBILITY* TIMING HOW
SUPPORTING APPRENTICES AND TRAINEES – SMALL BUSINESS
Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020.
Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer.
Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).
Refer next slide for a program update.
The subsidy will be available to small businesses employing fewer than 20 full-time employees who retain an apprentice or trainee.
The apprentice or trainee must have been in training with a small business as at 1 March 2020.Employers of any size and Group Training Organisations that re-engage an eligible out-of-trade apprentice or trainee will be eligible for the subsidy.
Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian Apprenticeship Support Network (AASN) provider.
Employers can register for the subsidy from early-April 2020. Final claims for payment must be lodged by 31 December 2020.
Further information is available at:
www.dese.gov.au
www.australianapprenticeships.gov.au
For further information on how to apply for the subsidy, including information on eligibility, contact an Australian Apprenticeship Support Network (AASN) provider.
Visit the Australian Apprenticeships website.
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
FEDERAL GOVERNMENT
25
INITIATIVE DETAIL ELIGIBILITY* TIMING HOW
SUPPORTING APPRENTICES AND TRAINEES – SMALL AND MEDIUM BUSINESS
The Government is extending and expanding the Supporting Apprentices and Trainees wage subsidy.
From 1 July 2020, the subsidy will Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 July 2020 to 31 March 2021, up to a cap of $7,000 per quarter.
Available to support small and medium businesses with fewer than 200 employees, including those using a Group Training Organisation, who retain an Australian Apprentice engaged as at 1 July 2020.
Employers of any size including Group Training Organisations that re engage an eligible out of trade apprentice or trainee will also be eligible for the subsidy.
From 1 July 2020 to 31 March 2021
Visit the Australian Apprenticeships website.
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
FEDERAL GOVERNMENT
26
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
TEMPORARY RELIEF FOR FINANCIALLY DISTRESSED BUSINESSES
To make sure that companies have confidence to continue to trade through the Coronavirus health crisis with the aim of returning to viability when the crisis has passed, directors will be temporarily relieved of their duty to prevent insolvent trading with respect to any debts incurred in the ordinary course of the company’s business. This will relieve the director of personal liability that would otherwise be associated with the insolvent trading. It will apply for six months.
Acts of dishonesty and fraud will still be subject to criminal penalties. Any debts incurred by the company will still be payable by the company
Additionally, the government announced a temporary increase in 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; andThere is a temporary increase in the threshold for a creditor to initiate bankruptcy proceedings, an increase in the time period for debtors to respond to a bankruptcy notice, and an extended period of protection a debtor receives after making a declaration of intention to present a debtor’s petition
Consider obtaining legal advice if any of these may apply to you.
Company directors25 March to 24 September 2020
No action necessary
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
FEDERAL GOVERNMENT
27
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
INCREASING THE INSTANT ASSET WRITE-OFF
The Government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020
Annual turnover of below $500m
This initiative applies from 12 March 2020 until 31 December 2020, for new or second handassets first used or installed ready for use in this timeframe
Deduction claimed through annual tax return process
BACKING BUSINESS INVESTMENT
Acceleration of depreciation deductions
Deduction of 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost
Details of eligible assets can be found at https://www.business.gov.au/
Businesses with aggregated turnover below $500 million
Applies to eligible assets acquired after announcement and first used or installed by 30 June 2021
Deduction claimed through annual tax return process
QUICK AND EFFICIENT ACCESS TO CREDIT FOR SMALL BUSINESS
The Government is providing an exemption from responsible lending obligations for lenders providing credit to existing small business customers
This exemption is for six months, and applies to any credit for business purposes, including new credit, credit limit increases and credit variations and restructures
Small businessesFor 6 months from announcement
No action necessary
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
FEDERAL GOVERNMENT
28
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
GUARANTEE OF UNSECURED LOANS – PHASEONE
The Government will provide a guarantee of 50 per cent to SME lenders for new unsecured loans to be used for working capital.
The Government will provide eligible lenders with a guarantee for loans with the following terms: (1) Maximum total size of loans of $250,000 per borrower; (2) The loans will be up to three years, with an initial six month repayment suspension; (3) The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan
Loans will be subject to lenders’ credit assessment processes with the expectation that lenders will look through the cycle to sensibly take into account the uncertainty of the current economic conditions
SMEs with a turnover of up to $50 million may be eligible to receive these loans
The scheme will commence by early April 2020 and be available for new loans made by participating lenders until 30 September 2020
Application through direct contact with the lending institution
GUARANTEE OF UNSECURED LOANS – PHASETWO
Key October 1 changes to the SME Loan Guarantee include:• Loans can be for a wider range of investment, beyond working capital• Secured lending now permitted (excludes commercial or residential property)• Maximum loan size increased to $1 million (from $250,000 per borrower)• Maximum loan term now five years (from three years)• Lenders can now offer a repayment deferral period
SMEs with a turnover of up to $50 million may be eligible to receive these loans
From 1 October 2020
Application through direct contact with the lending institution
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government
29
STATE GOVERNMENT STIMULUS OVERVIEW
OVERVIEW
30
• State and territory governments have announced a range of measures, which in some states and territories include:
• Payroll tax measures
• Loan facilities
• Business support/consulting services
• Fiscal support funds for affected industries
• Programs for displaced workers
• Land tax relief
• Waiving of certain government fees and charges
• Apprenticeship and youth employment support
• The following slides are intended to be an indicative guide as to policy actions taken as at 23 March 2020. As details are still
emerging and government policies are quickly evolving, please confirm the details of each initiative with the relevant
government agency
VICTORIAN GOVERNMENT
31
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
BUSINESS HOTLINE
Businesses across the state can now access information on dealing with COVID-19 by calling the Business Victoria hotline on 13 22 15
Operators calling the hotline will be able to get information about support services, including those available through Business Victoria, which offers mentoring to help operators develop business continuity and recovery plans
The hotline will provide the latest information on the response to COVID-19 and how this affects businesses, including how to access financial support available through the national stimulus package
All Now Call 13 22 15
BUSINESS SUPPORT FUND
The Business Support Fund has been expanded to provide more than 80,000 eligible businesses in all areas under Stage 3 restrictions with a new $5,000 grant
Metropolitan Melbourne or Mitchell Shire businesses, be a participant in the Commonwealth Government’s JobKeeper Payment scheme, employ people, be registered with WorkSafe on 30 June 2020 and have an annual payroll of less than $3 million in 2019-20
Applications for the fund close on 19 August 2020
https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-package/business-support-fund
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Victorian Government
VICTORIAN GOVERNMENT
32
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX REFUNDS
The Government will provide full payroll tax refunds for the 2019-20
financial year
This assistance is a refund, not a loan
Small and medium-sized businesses with payroll of less than $3 million in Victoria
Payments will start flowing from 27 March 2020
Eligible businesses must continue to lodge returns but do not need to make further payments for this financial year.
PAYROLL TAX DEFERRAL
Eligible businesses can defer their liabilities for the first half of the 2020-21 financial year
Small and medium-sized businesses with payroll of less than $10 million in Victoria
Until 1 January 2021
PAYROLL TAX EXEMPTION ON ADDITIONAL JOBKEEPER PAYMENTS
Any additional payments made to bridge the gap between an employee’s normal wage and the $1500 per fortnight required to qualify for JobKeeper payments are exempt from payroll tax:
For employees who have come to an agreement with their employer to be stood down and not perform any work, the full $1500 paid to them is exempt from payroll tax
For employees paid less than $1500 per fortnight, the payroll tax exemption applies to the difference between their wage and the $1500
All businesses registered for payroll tax that make additional payments to employees as part of the JobKeeper program are eligible
Inclusion on next lodgment.Businesses that have already lodged their monthly returns for April 2020 and included additional payments in their estimated taxable wages can make adjustments as part of their payroll tax annual reconciliation in July 2020
Existing process
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Victorian Government
VICTORIAN GOVERNMENT
33
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
WORKING FOR VICTORIA FUND
$500 million ‘Working for Victoria Fund’ aimed at Government employment opportunities, job-matching, retraining, hardship support
The fund will help workers who have lost their jobs find new opportunities, including work cleaning public infrastructure or delivering food – providing vital contributions to our state’s response to the pandemic and affording those Victorians security when it’s needed most
Displaced workersYet to be determined
https://www.business.vic.gov.au/disputes-disasters-and-succession-planning/illness-and-business-management-plan/coronavirus-business-support
LAND TAX DEFERRAL
2020 land tax payments will be deferred
Land owners that have at least one taxable non-residential property and total taxable landholdings below $1 million
Can be deferred until after 1 January 2021 and will need to be paid in full by 31 March 2021
Automatic, the SRO will contact all eligible taxpayers
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Victorian Government
VICTORIAN GOVERNMENT
34
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
LAND TAX REDUCTION
Eligible landlords will receive a 25% reduction on the property’s 2020 land tax
Landlords who provide tenants impacted by coronavirus with rent relief consistent with the principles of the Support to Landlords and Tenants package, or who are unable to secure a tenant because of coronavirus.
Landlords must also provide a declaration from their tenant that the tenant meets these conditions:They have an annual aggregated turnover of up to $50 million, andthey are eligible for, and participating in, the Australian Government’s JobKeeper Payment.
2020 period
More information on the principles of the Support to Landlords and Tenants package for commercial leases on the Small Business Commissioner website
PROMPT INVOICE PAYMENT
Commitment to pay State Government
invoices within 5 daysAll Within 5 days
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Victorian Government
NEW SOUTH WALES GOVERNMENT
35
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX REDUCTION
Payroll tax customers whose total grouped Australian wages for the 2019/20 financial year are no more than $10 million will have their annual tax liability reduced by 25% when they lodge their annual reconciliation.
Payrolls up to $10m Australia wide
Applicable to full financial year
Lodge annual reconciliation by 28 July 2020
PAYROLL TAX DEFERRAL
Any outstanding liability for the 2019/20 financial year and the monthly payments for the July, August and September periods will be deferred until October 2020
All businessesAnnounced May 2020
Payment due in October 2020
FASTER PAYMENTS TO BUSINESS
Fast-tracking the payment of suppliers and contractors to help businesses maintain their cash flow
All current suppliers ImmediatelyNormal payment process
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the New South Wales Government
NEW SOUTH WALES GOVERNMENT
36
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
CHANGES TO LONG SERVICE LEAVE RULES
Waiving the one month notice period for taking leave
Greater flexibility for employees to take this leave in shorter blocks
No change to eligibility of Long Service Leave
Immediate and for another six months
By mutual agreement between employer and employee
PAYROLL TAX THRESHOLDINCREASE
Raising of the payroll threshold limit to $1 million (Australia wide) in 2020-21. The current threshold is $900,000
Businesses with payroll of less than $1,000,000
Financial year commencing 1 July 2020
Existing lodgment requirements apply
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the New South Wales Government
NEW SOUTH WALES GOVERNMENT
37
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
GRANT
Eligible businesses can apply for recovery grants of $500 to $3000.
This grant helps small businesses get back to business by meeting the costs of safely reopening or upscaling operations, for example:
Making fit-out changesProviding staff training and counsellingCovering advertising and communications expensesPurchasing cleaning products or services.
Fewer than 20 Full Time Equivalent (FTE) staff (including non-employing businesses, such as sole traders) as at 1 March 2020
Apply before 16 August 2020
https://www.service.nsw.gov.au/transaction/apply-small-business-covid-19-recovery-grant
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the New South Wales Government
QUEENSLAND GOVERNMENT
38
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
LOAN FACILITY
Concessional loans of up to $250,000 with an initial 12 month interest free period for businesses to retain staff
Loans may be used to help meet a business’ working capital expenses such as paying employee wages, sundry creditors, rent and rates and other eligible carry-on expenses
• $1 billion loan scheme• Maximum loan up to $250,000• No repayments or interest charged for the first year• Plus two years interest only• 2.5 % fixed interest rate• 10-year term of loan
Sole traders, partnerships, private and public companies and Trusts that have been financially affected by COVID-19
Must have operated the business or non-profit organisation since 1 July 2017
Applicants must also:
Be considered viable under normal business conditions
Be able to service the loan under normal business conditions
Intend to continue operations after receiving the loan
Intend to use any surplus liquid reserves or normal credit sources up to normal credit limits, in conjunction with the loan to continue operations
Applications are now closed
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Queensland Government
QUEENSLAND GOVERNMENT
39
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX EXEMPTION ON JOBKEEPER PAYMENTS
Payroll tax assessments do not include JobKeeper payments
JobKeeper recipients Effective immediatelyJobKeeperpayments are not included on return
PAYROLL TAX DEFERRAL
Defer all payroll tax payments for the rest of 2020
Large businesses with a payroll over $6.5m in Queensland that are directly or indirectly affected by COVID-19
Effective immediately
Must be applied for via business.qld.gov.au website
PAYROLL TAX REFUND
A two-month refund of payroll tax(January and February 2020)
Large businesses with a payroll over $6.5m in Queensland that are directly or indirectly affected by COVID-19
Applications for payroll tax refunds closed on 31 May 2020
Must be applied for via business.qld.gov.au website
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Queensland Government
QUEENSLAND GOVERNMENT
40
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX REFUND
A two month refund of payroll tax (November and December 2019)
All small and medium sized business with a payroll up to $6.5m in Queensland
Applications closed on 31 May 2020
Must be applied for via business.qld.gov.au website
PAYROLL TAX HOLIDAY
A three month payroll tax holiday(January to March 2020)
All small and medium sized business with a payroll up to $6.5m in Queensland
Applications closed on 31 May 2020
Must be applied for via business.qld.gov.au website
PAYROLL TAX DEFERAL
Defer all payroll tax payments for the rest of 2020
All small and medium sized business with a payroll up to $6.5m in Queensland
Effective immediately
Must be applied for via business.qld.gov.au website
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Queensland Government
QUEENSLAND GOVERNMENT
41
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
UTILITY COST RELIEF
A $500 rebate on electricity bills
All Queensland small and medium sized businesses that consume less than 100,000 kilowatt hours
Effective immediately
Refund on next bill
Automatically applied to electricity bill
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Queensland Government
WESTERN AUSTRALIAN GOVERNMENT
42
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX REBATE
A one-off grant of $17,500 to assist businesses to manage the impacts of COVID-19
Payroll tax paying businesses with a payroll between $1 million and $4 million Australia wide
For a group of employers, a single grant will be payable to the designated group employer
Grants will automatically be paid by cheque from July but there will be delays for taxpayers whose tax status changed in 2018-19 or who became liable for payroll tax during the 2018-19 or 2019-20 assessment year
You do not need to apply for the grant
PAYROLL TAX WAIVER
Payroll tax waived for a four-month period
Small-to-medium sized businesses with Australia-wide annual wages of less than $7.5 million in 2019-20.Replaces the payroll tax deferral already announced for particular small-to-medium sized businesses
Between March 1, 2020 to June 30, 2020
Process differs between businesses with payrolls less than $5 million and those between $5 million and $7.5 million. Refer:https://www.wa.gov.au/government/multi-step-guides/payroll-tax-employer-guide/covid-19-relief-payroll-tax-employer-guide
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Western Australian Government
WESTERN AUSTRALIAN GOVERNMENT
43
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX EXEMPTION ON SUBSIDISED JOBKEEPERPAYMENTS
Wages paid by employers that are subsidised by the Australian Government’s JobKeeper Payment are exempt from payroll tax. The exemption does not apply to any part of wages that are not subsidised
Recipients of JobKeeper subsidy Currently availableExisting lodgment process
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Western Australian Government
WESTERN AUSTRALIAN GOVERNMENT
44
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX THRESHOLD INCREASE BROUGHT FORWARD
$1 million payroll tax threshold brought forward by six months to 1 July 2020
Businesses with payroll less than $1m
From 1 July 2020
ELECTRICITY BILL SUPPORT
One-off $2,500 credit available
Synergy and Horizon Power customers that consume less than 50 megawatt hours (MWh) per annum
For customers as of 1 March, and allocated from May 1
Allocated from May 1, 2020 to reduce current and future electricity bills
PAYMENT ARRANGEMENTS AND WAIVED LATE FEES
Interest-free payment arrangements available and late payment penalties to be waived for payroll tax, transfer duty, landholder duty, vehicle licence duty or land tax.
Businesses impacted by COVID-19
Currently availableContact relevant WA government department
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Western Australian Government
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX WAIVER
Six month payroll tax waiver
Business groups with annual Australian wages of up to $4 million
Eligible business groups will not be required to pay any payroll tax in the months of April to September 2020
Monthly payroll tax returns must still be lodged to capture wages for the month
Waiver of payroll tax for the six months will be finalised as part of the Annual Reconciliation processes
An online application form will be made available for businesses that were not liable for payroll tax in 2018-19.
SOUTH AUSTRALIAN GOVERNMENT
45
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the South Australian Government
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX DEFERRAL
Six month payroll tax deferral
Business groups with annual Australian wages of over $4 million, that can demonstrate they have been significantly impacted by COVID-19
Defer payroll tax payments for the six months from April to September 2020. For these eligible businesses, payroll tax payments that were due to be paid from April to September will now be due in October 2020
Via online application,Monthly payroll tax returns must still be lodged
EMERGENCY CASH GRANT
Small businesses that employ South Australians who have been highly impacted by the COVID-19 pandemic may be eligible to receive a $10,000 grant to support the operation of their business.
Have annual turnover more than $75,000Annual payroll less than $1.5 million, and not be entitled to a payroll tax waiverHave an ABN and operating on 1 March 2020.Highly impacted by COVID-19 Use the funds to support activities related to the operation of the business.Not eligible if part of a group receiving other payroll tax relief.Other requirements apply
Apply by 1 June 2020.
Register your interest on the SA Treasury website
SOUTH AUSTRALIAN GOVERNMENT
46
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the South Australian Government
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX EXEMPT ON JOBKEEPER
Payroll tax on JobKeeper payments will be exempt from payroll tax
JobKeeper recipientsReturns must still be lodged
LAND TAX DEFERRAL
Businesses can defer payment of their remaining 2019-20 land tax payments for six months
Businesses paying land tax quarterly in 2019-20
Administration as per normal schedule
Businesses and individuals will be sent their land tax notices of assessment as usual, with information provided on how the deferral will be administered
No application process will be required
SOUTH AUSTRALIAN GOVERNMENT
47
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the South Australian Government
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
LAND TAX REFORM TRANSITION FUND
The previously announced land tax reform transitional relief fund available to eligible taxpayers whose land tax bill will increase as a result of the changes in aggregation of land commencing from 1 July 2020 will be increased from 50% to 100% of the increase in an eligible taxpayer’s 2020-21 land tax assessment
As per original announcement, and subject to the existing criteria
From 1 July 2020As per original announcement
JOB ACCELERATOR
The Government is relaxing the existing Job Accelerator Grant ( JAG) criteria requiring an employer to have maintained their overall employment levels for a full year to be eligible for their second anniversary JAG payment
Claims for the second JAG payment from 1 February to 30 June 2020 will be assessed on staffing levels as at 31 January 2020 rather than the relevant two year anniversary date
As per existing JAG timetable
Refer:https://www.revenuesa.sa.gov.au/grants-and-concessions/jobacceleratorgrantscheme/more-information
SOUTH AUSTRALIAN GOVERNMENT
48
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the South Australian Government
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
SKILLS FOR BUSINESS SCHEME
Offers small businesses up to $5000 for every new apprentice or trainee hired in SA on a paid training contract, as well as advice on how to address a business’ skills and training needs and access subsidies
The Skills for Business package is now offering businesses across South Australia extra support to continue skills training, with the following support options available:
Group Training Boost – making it easier to employ an apprentice with up to $5200 off the charge out rate when you host a new apprentice or trainee through your Group Training Organisation (GTO)
Equipped for Growth - up to $5000 small business boost when you hire an apprentice
Equipped for Work – up to $1500 reimbursed for equipment and services when you hire an apprentice. A funding increase from $1000 to $1500 is available until 31 July 2020
Equipped for Training – a Travel and Accommodation Allowance contributing to the cost for your apprentice’s off-the job training
Small and medium sized business entities and NFPs with aggregated annual turnover under $50 million and that employ workers will be eligible. Eligibility will generally be based on prior year turnover
The payments will only be available to active eligible employers established prior to 12 March 2020
The additional funding support is available for a limited time and will apply to new paid training contracts signed by 31 August 2020
https://www.skills.sa.gov.au/business/financial-support-to-hire-an-apprentice
SOUTH AUSTRALIAN GOVERNMENT
49
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the South Australian Government
TASMANIAN GOVERNMENT
50
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX WAIVER
Non hospitality, tourism, seafood and export small to medium businesses with an annual payroll of up to $5 million in Australian wages will be able to apply based on the immediate impact of the virus on their businesses to waive their payroll tax payments for the entire financial year of 2019-20
Australian Wages (or Australian Group Wages if part of a group) must be $5 million or less; and
One of the following three points must apply:1. you are not grouped and only pay wages in Tasmania; or2. you are not grouped and the Tasmanian portion of your wages will be 50 per cent or more ofyour total Australian Wages; or3. you are grouped and the Tasmanian portion of the Australian Group Wages will be 50 per centor more of the group’s Australian Group Wages
Approved applicants (who demonstrate that their business is affected byCoronavirus) will not be required to lodge payroll tax returns for March, April and May 2020
Refer:https://www.sro.tas.gov.au/Documents/Coronavirus-payroll-tax-waiver-2019-20-wages-less-than-$5-million-guideline.pdf
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Tasmanian Government
TASMANIAN GOVERNMENT
51
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX ON JOBKEEPER
JobKeeper wages will not attract Payroll Tax and should not be included in relevant monthly returns.
This applies to both Tasmanian and Interstate wages (and for all members of a group where relevant)
A. Employees with wages higher than the JobKeeper WagesWhere an employee receives a higher fortnightly wage than the JobKeeper Wages, tax must be paidon the amount of the wage that exceeds the JobKeeper Wages. Payroll tax is not payable on theportion of the wage that is the JobKeeper Wages.
B. Employees with usual wages lower than the JobKeeper WagesWhere an employee usually receives a fortnightly wage lower than the JobKeeper Wages, and is nowpaid an amount equivalent to the JobKeeper Wages, payroll tax is not payable on the full amount oftheir $1 500 fortnightly wage
C. Employees who have been stood downWhere an employee usually receives a higher fortnightly wage than the JobKeeper Wages but now is only paid the amount equivalent to the JobKeeper Wages, tax is not payable on the full amount oftheir $1 500 fortnightly wage.
Businesses receiving JobKeeper
Current
Applicable wages should not be included in the payroll tax return
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Tasmanian Government
TASMANIAN GOVERNMENT
52
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PROMPT INVOICE PAYMENT
Unless otherwise required by contractual arrangements, the normal terms of trade for payments by government agencies will be reduced from 30 days to 14 days
AllPaid within 14 days
YOUTH EMPLOYMENT PAYROLL TAX REBATE
The Government will introduce a youth employment payroll tax rebate scheme for young people from 1 April 2020 to 31 December 2020.
Rebate of one year from the date the youth employee commenced employment
Businesses that employ a young person under 24 years old
Further details:https://www.sro.tas.gov.au/Documents/Coronavirus-payroll-tax-rebate-scheme-2019-20-for-apprentices-trainees-and-youth-employees-guideline.pdf
REGISTRATIONFREEZE FOR LIGHT AND HEAVY VEHICLES
Small businesses looking to suspend activity due to the COVID-19 business downturn and trading restrictions can apply to the Registrar of Motor Vehicles to freeze their business vehicle registrations for both light and heavy vehicles. Registrations can be reactivated at no cost to them when the business restarts.
For businesses that has been significantly impacted by measures taken to manage COVID-19, causing suspension or cessation of business activities.
The maximum period that a registration can be frozen is 12 months
www.transport.tas.gov.au/registration/registration_business_support_package
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Tasmanian Government
TASMANIAN GOVERNMENT
53
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
LAND TAX WAIVERLand Tax will be waived for commercial property for the 2020-21 financial year
The business owner is liable for the land tax and can demonstrate that their business operations have been affected by COVID-19
The State Revenue Office will publish more details in due course
The State Revenue Office will publish more details in due course
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Tasmanian Government
AUSTRALIAN CAPITAL TERRITORY GOVERNMENT
54
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
BUSINESS ADVICE AND SUPPORT SERVICE
The service supports small businesses to address the impact of recent events on their business and provide one-on-one business management advice. Business owners can receive up to four hours of fully subsidised, face to face tailored advice and access online business development resources
Small businesses Open now
Make a booking with this service by calling 6297 3121
PAYROLL TAX EXEMPTION OF JOGKEEPER PAYMENTS
Businesses are exempt from any payroll tax on wages subsidised by the Commonwealth JobKeeper payment scheme from 30 March 2020
Jobkeeper recipients
PAYROLL TAX DEFERRAL
All ACT businesses with Group Australia-wide wages of up to $10 million can defer their 2020-21 payroll tax, interest free until 1 July 2022
$2m-$10m payroll (already exempt under $2m) Australia Wide
Eligible businesses will need to lodge their payroll tax returns as normal but will not be required to make the associated payment at the usual time
https://www.revenue.act.gov.au/
FIXED CHARGE FOR COMMERCIAL PROPERTY RATES
A rebate on the fixed charge for 2019-20 on commercial rates for properties with an AUV below $2 million will be provided, which particularly targets businesses who own their own premises
Commercial rate payers will receive a credit of $2,622 (equivalent to the annual fixed charge) to their 2019-20 general rates, in quarter four. This will be applied automatically
Commercial property owners with an Average Unimproved Value below $2 million on their property are eligible for a rebate on their commercial rates fixed charge
Automatic
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the ACT Government
AUSTRALIAN CAPITAL TERRITORY GOVERNMENT
55
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
COMMERCIAL GENERAL RATES RELIEF
Deferral of issuing 2019-20 Quarter 4 rates notice by 4 weeks.
Deferral of issuing 2020-21 Quarter 1,2 and 3 rates notice by up to 3 weeks
All commercial property rate payers
Application to open soon. Payment will be due a month after issue of notices
Apply via the ACT Revenue Office Website
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the ACT Government
NORTHERN TERRITORY GOVERNMENT
56
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
OPERATIONALSUPPORT PAYMENT
Covering three fortnightly payments over a six week period, the number of FTE employees will be used as evidence of business activity and a nominal value of $1,000 per FTE will be paid per fortnight, up to a maximum of $15,000 per payment
Businesses with annual turnover greater than $75,000 and who have received previous payments under a NT scheme will be able to supply additional information on a fortnightly basis to enable these payments
Application now open
Businesses can complete an application form on business.nt.gov.au/recoveryBusiness will provide a certified financial/payroll statement identifying number of employees pre-shutdown
REBOUND SUPPORT GRANT
A grant for new activities that adapt or rebound the business to operate effectively in the new economic environment.
Grants include an unmatched portion worth up to $5,000 depending on business size and an additional matched contribution of up to $10,000. The maximum grant available ranges between $10,000 and $15,000 in total
Businesses approved for the Small Business Survival Fund and / or the Business Hardship Register, with annual turnover between $75,000 and $10 million will be able to access the grant once, providing quotes for up to five different activities
Application now open.
Further information:https://businessrecovery.nt.gov.au/businesses/small-business-survival-fund
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the NT Government
NORTHERN TERRITORY GOVERNMENT
57
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
PAYROLL TAX EXEMPTIONON JOBKEEPER PAYMENTS
Employers receiving the Australian Government’s JobKeeper payments for employees working in the Northern Territory will not have to pay payroll tax on those payments
Recipients of JobKeeper
UTILITY COST REDUCTION
Reduce power, water and sewerage bills by 50 per cent for businesses for six months (for regulated utility tariffs)
Businesses that demonstrate substantial hardship due to the coronavirus crisis
For six months from 1 April, and businesses can apply from 1 May
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the NT Government
NORTHERN TERRITORY GOVERNMENT
58
INITIATIVE DETAIL ELIGIBILITY TIMING HOW
RATES RELIEFRelief for six months through a three-month rates waiver, followed by a three-month rates deferral
To be confirmed by local councilsTo be confirmed by local councils
Encouraged by NT Government but ultimately up to local councils to determine
PAYROLL TAX WAIVER
Waive payroll tax for 6 months
Employers with a total payroll below $7.5 million where turnover has been reduced by at least 30 due to coronavirus crisis.
For six months from 1 April, and businesses can apply from 1 May
Register on the DTBI Business Hardship Register
PAYROLL TAX DEFERRAL
Defer payroll tax for 6 months
Employers with a total payroll above $7.5 million where turnover has been reduced by at least 50 per cent due to coronavirus crisis
For six months from 1 April, and businesses can apply from 1 May
Register on the DTBI Business Hardship Register
BUSINESS HARDSHIP PACKAGE
Financial relief from charges by government, local councils and some utility providers.
Terms and conditions are currently being developed and further details will be made available in the coming days
Businesses with less than $50 million turnover who have experienced a reduction of turnover of more than 30%
Applications will open on 1 May 2020
Register on the DTBI Business Hardship Register
*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the NT Government
To the full extent permitted by law, carsales excludes all guarantees, warranties or representations of any kind in relation to the material and all liability for loss or damage (including indirect or consequential loss or damage) which may be incurred in connection with your use of or reliance on the material contained in this document.
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