Accountplan Update – Government & Banking Sector Assistance

Further to prior updates we have below outlined an updated summary of assistance packages available from either the Federal Government, QLD State Government or the Baking Sector

Federal Government Packages

Boosting Cash Flow for Employers

Provides up to $100,000 to eligible small and medium-sized businesses (SMEs), and not for-profits (NFPs) with a minimum payment of $20,000. These payments are designed to help SMEs and NFPs with their cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.

To be eligible SMEs & NFPs must:

• employ people
• have turnover less than $50M
• be established prior to 12 March 2020. 

Eligible employers will receive an initial payment equal to 100 per cent of their salary and wages withheld with:

• maximum payment of $50,000
• minimum payment of $10,000

Please note that eligible employers that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax.

These initial payments 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.

A second payment is also being introduced in the July – October 2020 period for entities who continue to be active. Eligible entities will receive an additional payment equal to the total of the initial payments they received. Hence across the 2 payments they may be eligible for:

• maximum payment of $100,000
• minimum payment of $20,000

Additional information can be found here
https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business

Supporting Apprentices and Trainees

Provides 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).

Eligibility guidelines:

• business must employ fewer than 20 full-time employees and retain an apprentice or trainee
• the apprentice or trainee must have been in training with a small business as at 1 March 2020

Additional information can be found here
https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business

Temporary Relief for Financially Distressed Businesses

The Government is looking to place a safety net under businesses that would otherwise be profitable and viable but are facing temporary financial distress due to the effects of the coronavirus. This is by a number of temporary relaxations to the Corporations Act:

• an 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;
• an 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 extending the period of protection a debtor receives after making a declaration of intention to present a debtor’s petition;
• temporary relief for directors from any personal liability for trading while insolvent

Additional information can be found here
https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business

Income Support For Individuals

The Government is establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months for the following eligible categories:

• Jobseeker Payment1 (and all payments progressively transitioning to Jobseeker Payment)
• Partner Allowance
• Widow Allowance
• Sickness Allowance
• Wife Pension
• Youth Allowance Jobseeker
• Parenting Payment (Partnered and Single)
• Farm Household Allowance
• Special Benefit recipients
  
  

Please note that if you already receive the above you do not need to do anything and the increase will be automatically applied for you.

For the period of the Coronavirus supplement, there will be expanded access to the income support payments listed above, including:

• permanent employees who are stood down or lose their employment
• sole traders; the self-employed; casual workers; and contract workers who meet the income tests as a result of the economic downturn due to the Coronavirus (this could also include a person required to care for someone who is affected by the Coronavirus)
• reduced means testing
• reduced waiting times

Additional information can be found here
https://www.dss.gov.au/about-the-department/coronavirus-covid-19-information-and-support#gov

Temporary Early Access To Superannuation

The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.

Eligible individuals will be able to apply online through myGov if they satisfy the following criteria:

• you are unemployed; or
• you are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or
• on or after 1 January 2020: you were made redundant; or your working hours were reduced by 20 per cent or more; or if you are a sole trader — your business was suspended or there was a reduction in your turnover of 20 per cent or more.

Additional information can be found here
https://business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business

QLD Government Packages

Payroll Tax Relief

SMEs may be eligible for one or more of a range of payroll tax relief measures including:

• refunds of payroll tax for 2 months
• a payroll tax holiday for 3 months
• deferral of paying payroll tax for the 2020 calendar year.

If you are an employer (or part of a group of employers) who pays $6.5 million or less in Australian taxable wages, you may receive an email about a:

• a refund of your payroll tax for 2 months
• a payroll tax holiday (i.e. no payroll tax to be paid) for 3 months.

You can also apply for a deferral of payroll tax for the 2020 calendar year. (If you have already applied for a deferral, you do not need not reapply – it will be extended).  If you do not receive an email, or you are unsure about your eligibility, complete the refund/holiday application form.

If you are an employer (or part of a group of employers) who pays more than $6.5 million in Australian taxable wages and have been negatively affected (directly or indirectly) by coronavirus, you can apply for a:

• deferral of payroll tax for the 2020 calendar year (If you have already applied for a deferral, you do not need not reapply – it will be extended.)
• refund of your payroll tax for 2 months.

A business is directly or indirectly affected by coronavirus if their current turnover, profit, customers, bookings, retail sales, supply contracts or other factors are negatively affected compared with normal operating conditions.

Queensland COVID-19 jobs support loans

SMEs may be eligible for a loan to retain employees and maintain your operations. The $500 million concessional loan facility will include low interest loans of up to $250,000 for carry on finance with an initial 12-month interest free period for businesses to retain staff.

You can register your interest on the following link or by phoning 1800 623 946:
http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme

Small and medium business power bill relief

SMEs may be eligible for a $500 rebate off energy bills. Businesses who consume less than 100,000 kilowatt hours (kWh) will receive the rebate. This will be automatically applied on your business electricity bills.

Banking Sector Packages

Whilst the individual offerings may vary from Bank to Bank we are aware of the following being made available:

• up to 6 months loan payment deferral on small business loans  
• up to 6 months loan payment deferral on Home Loans
• rate reduction between 0.50% and up to 2.00%
• providing easier access to emergency cash flow by way of Business Overdraft increases
  
  

If you or your business are experiencing financial stress please know that we are here to help guide you through some of the options that may be available to you – including those outlined above.