Overview of COVID-19 key assistance programs available from the Federal Government.
Key first stimulus package announcements
Instant asset write off
- Threshold temporarily increased from $30,000 to $150,000 for all new and second hand assets acquired prior to 30 June 2020
- Available to businesses with turnover <$500m
- Delivering support for business investment
Vary PAYG instalments
- ATO will allow altering PAYG instalments if the current rate will result in too much income tax being paid. Can vary to zero for March quarter
- Taxpayers may defer payment of taxes due after 23 January 2020 by up to six months
- ATO support measures
Wage subsidy
- 50% payment of apprentice or trainee wages for small businesses employing <20 FTE
- Paid from 1 January 2020 to 30 September 2020 at 50% of the wage up to a maximum of $21,000
- Cash flow assistance for business
Individual support
- $750 x 2 to Australian residents receiving government assistance or a concession card holder
- Payments to support households
Black summer innovation
- Grants up to $25,000 to food and agribusinesses located in affected areas
- Grants are to be used to support business, product or service innovations
Accelerated depreciation
- 50% of the cost of a new asset acquired prior to 30 June 2020
- Available to businesses with turnover <$500m
- Delivering support for business investment
Key second stimulus package announcements
Not for Profit & SME*
- Initial cash payment of between $10,000 and $50,000 equal to 100% of withheld wages
- Subsequent payment in Q1FY21
- Cash flow assistance for business
SME* guarantee
- Government will guarantee to lenders up to 50% of an unsecured working capital loan. Maximum loan $250,000
- Supporting the flow of credit
*SME eligibility is employing people with turnover under $50m
Statutory demands
- Increased threshold from $2,000 to $20,000
- Extended time to respond from 21 days to six months
- Temporary relief for financially distressed
Directors’ relief
- Temporary relief from personal liability for trading whilst insolvent and incurring new debts
- Temporary relief for financially distressed
Third stimulus package announcement: JobKeeper payments
Employees earning over $1,500
- Employee continues to receive current wage from employer
- Government to subsidise the employee wage with $1,500 top-up amount
- Must have been employed as at March 2020
- First payment to employers from 1 May 2020
- Subsidy to last for the next six months
- $1,500 fortnightly payment is before tax (PAYG is withheld from full amount)
Employees earning under $1,500
- Employee to be paid $1,500 from employer
- Government to subsidise full wage payment
- Must have been employed as at March 2020
- First payment to employers from 1 May 2020
- Subsidy to last for the next six months
- $1,500 fortnightly payment is before tax (PAYG is withheld from full amount)
Employees stood down
- Employee must be re-engaged
- Employee to be paid $1,500 from employer
- Government to subsidise the full employee wage up to $1,500
- Must have been employed as at March 2020
- First payment to employers from 1 May 2020
- Subsidy to last for the next six months
- Companies are using the payment to subsidise paid leave to employees
- $1,500 fortnightly payment is before tax (PAYG is withheld from full amount)
Self-employed
- Applies to those with a decrease in turnover of 30% or more
- Receive $1,500 subsidy from the Government
- First payment to employers from 1 May 2020
- Subsidy to last for the next six months
- $1,500 fortnightly payment is paid on a monthly basis
HomeBuilder program
- Grants of $25,000 to eligible owner-occupiers
- Must be used to build a new home or substantially renovate an existing home
- Grants available from 4 June to 31 December 2020 and construction to commence within three months