Hi everyone,

Please look through these links and click on the ones that relate to you:

Banks and initial correspondence on how they can help – https://www.abc.net.au/news/2020-03-26/are-banks-freezing-mortgages-banks-putting-payments-on-hold/12090642.

Please read it carefully to make sure you understand that this is a deferral and not a free period. It will however be very helpful. You should be contacting your bank and any other financing companies now to discuss options.

Income support for individuals – https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf

Please read how to apply on line and also there are a couple of great examples on how the benefits apply.

Early access to super – https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Early_Access_to_Super_1.pdf

Please read as to how you are able to access your super and what is the criteria you need to meet. Once again a couple of very good examples.

Support for Businesses – https://treasury.gov.au/coronavirus/businesses

• Boosting cash flow for employers Fact Sheet – https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf
• Temporary relief of financially distressed businesses Fact Sheet – https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf
• Increasing instant Access write-off and Backing business investment Fact Sheet – https://treasury.gov.au/sites/default/files/2020-03/Fact_Sheet-Delivering_support_for_business_investment.pdf
• Supporting apprentices and trainees – https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf

Quick and efficient access to credit for small business ($250,000) – https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Supporting_the_flow_of_credit_1.pdf

State Based Relief:

The following is a summary of key relief incentives released by the NSW government and the City of Sydney.

NSW Stimulus 

• 2021 payroll tax threshold to be increased to $1 million.
• Waiver of payroll tax for the final 2020 June quarter for businesses with payrolls of up to $10 million.
  How to apply: Automatic, expected to be applied to the next monthly return.
• Fast track of the next round of payroll tax cuts will raise the threshold limit to $1 million for the 2020-21 financial year
  How to apply: Automatic, expected to be applied to monthly returns from 1 July.
• Waiver of some charges and licencing fees for small businesses including bars, cafes, restaurants and tradespeople.
  The NSW State Government are yet to specify eligibility and which fees will be waived.
• $250 million to employ additional cleaners of public infrastructure including public transport and schools as well as bringing forward of maintenance on public assets, bring forward capital works projects.

City of Sydney Council relief package

• Rent relief for eligible tenants.
• Refunds for venue fees and advertising bookings.
• Coverage of costs for aquatic centres so casual workers are paid.
• Waiver of outdoor dining fees and fines for using a footpath without a permit.
• Parking fines will only be issued if there is “an imminent public or environmental health or safety risk”.

For all the latest updates on the NSW stimulus package, please visit preview.nsw.gov.au/Covid-19

Vic Stimulus

Payroll Tax Refunds – Victorian Government

• Full payroll tax refunds up to $113,975 a year for the 2019/2020 year.
• Refunds will start flowing back week commencing 23 March 2020.

Who is eligible and what are the details?

• SMEs with a payroll of less than $3 million.

What do I need to do?

• Automatic
• Refunds will start flowing back week commencing 23 March 2020.

Defer Payroll Tax – Victorian Government

• Defer payroll tax for the first 3 months of the 2020 / 21 financial year until 1 January 2021.

Who is eligible and what are the details?

• SMEs with a payroll of less than $3 million.

What do I need to do?

• Not entirely clear but appears automatic deferral.

Rent relief – Victorian Government

• Commercial tenants in Government buildings can apply for rent relief.

Who is eligible and what are the details?

• Appears available to all tenants for Victorian Government buildings however details are limited.

What do I need to do?

• Not entirely clear but appears you should contact your Victorian government lease contact to negotiate.

Business Support Fund – Victorian Government

• $500 million to establish a Business Support Fund.

Who is eligible and what are the details?

• The Fund will support the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.
• The Victorian Government will work with the Victorian Chamber, Australian Hotels Association and Ai Group to administer the fund to help businesses survive and keep people in work.

What do I need to do?

• Link to register interest to understand more https://fs2.formsite.com/diirdwebteam3/u3qeftcfcc/index.html

City of Melbourne Stimulus Package

The City of Melbourne is developing a local economic stimulus package valued at more than $10 million, which will include:

1. A virtual Business Support Summit at Melbourne Town Hall
2. Suspending fees for Food Act registrations and street trading permits for three months
3. Halving rent for eligible tenants in Council owned buildings for three months
4. Opportunities to deploy casual and part-time staff to enhance city cleanliness and amenity
5. Developing a Rates Hardship Policy for consideration by the end of this month

SA Stimulus

Among the new initiatives in the Government’s second stimulus package:

Payroll tax relief (Up to $60 million of savings to business)

• 6-month waiver for all businesses with an annual payroll (grouped) up to $4 million
• Eligible businesses won’t have to pay any payroll tax from April to September
• This measure is expected to assist up to 2,400 businesses and save them up to $84,000 over the six months (average saving $25,000)
• Employers with grouped annual wages above $4 million able to defer payroll tax payments for 6 months on demonstration of significant impacts on cash flow of coronavirus
• Around 4,300 businesses will be able to access this payroll deferral and is expected to increase overall cash flow by around $580 million.

Land tax relief (Up to $13 million in additional savings)

• From July, the Government’s significant land tax reforms will kick in, delivering $189m in savings to investors and landlords over the next three years.
• Under the new measures, individuals and businesses with outstanding quarterly bills for 2019-20 able to defer payments for 6 months (up to 28,000 private land tax ownerships will benefit)
• For 2020-21 Land Tax Transition Fund relief will be increased from 50% to 100% based on existing relief criteria guidelines – saving some investors up to $50,000

Fees and Charges

• Waiver of liquor licence fees for 2020-21 for those hotels, restaurants, cafes and clubs forced to close as a result of new social distancing restrictions

$300 million Business and Jobs Support Fund

• A fund to support individual businesses and industry sectors directly affected by coronavirus, and face potential collapse – and the loss of thousands of jobs – as a result

$250 million Community and Jobs Fund

• A fund to support community organisations, sporting, arts and recreational bodies, non-profit organisations as well as some industry sectors whose operations have been impacted by the coronavirus
• Will also help with training of South Australians seeking new skills and employment and to assist organisations meet increased demand for services including emergency relief.

Cost of Living Concessions (An estimated additional benefit of about $30 million)

• A once-off boost of $500 and bring forward the 2020-21 ‘Cost of Living Concession’ for households who are receiving the Centrelink JobSeeker Payment, assisting those who are unemployed or lose their jobs as a result of the coronavirus restrictions.
• For eligible homeowners, their 2020-21 payment of $215.10 will now become $715.10. Eligible tenants will receive $607.60.

Access to accrued leave for public sector workforce

• If a public servant has a family member who has lost their job and moved onto Commonwealth benefits, they will be able to receive their accrued leave down to a limit of 2 retained weeks (annual and long service leave)

 NT Stimulus

The NT Government has announced its economic response to coronavirus — a $60 million stimulus package aimed at business upgrades and home renovations.

The $60 million stimulus package will be divided into two major portions — a $30 million ‘Home Improvement Scheme’ and a $20 million ‘Business Improvement Scheme’.

The Home Improvement Scheme will provide Territorians who own a home a $6,000 grant for renovations if they contribute $2,000 of their own money. Alternatively, home owners can spend $1,000 to a get a $4,000 renovation grant.

The Government would freeze fees, charges and electricity prices until July 2021 under the scheme.

Under the Business Improvement Scheme, all eligible businesses will receive $10,000 and can receive a further $10,000 if they spend $10,000 of their own cash on business upgrades.”This could include buying new equipment, new shop fit outs and physical changes to attract customers,”

What about local clubs, tourism and the health sector?

The Government has earmarked $5 million for an ‘Immediate Works Grants’ package which will provide grants of up to $50,000 to not-for-profits and community organisations for repairs and renovations. The Government also said it would match dollar for dollar any further money put into renovation works from local organisations

The NT tourism sector, which was already facing uncertainty heading into peak season, was given $2 million from the Government last month to assist with the impacts of coronavirus.

ATO Assistance

The ATO encourages businesses impacted by the coronavirus to get in touch with the ATO to discuss relief options which will be tailored for each affected business. Options available to assist businesses impacted by COVID-19 include:

1. Deferring by up to six months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise
2. Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to
3. Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters
4. Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities
5. Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.

But lodgments should be kept up to date all the way through this crisis.

It is likely additional measures will be announced in the future as the COVID-19 crisis continues to change almost daily and governments continue look to assist business and jobs.

We will keep you up to date as we go when new announcements come out.

Stay safe.

John and the Team.