CORONAVIRUS STIMULUS PACKAGE

Please find useful resources and information to guide you through these tough economic times with the Coronavirus affecting all of us.

We will send through updates when we can regarding the Coronavirus Stimulus Package as new announcements are being made.

Please be aware that information changes rapidly and we have done our best to provide you with the most accurate information.

Stay safe and rely on Australian Government websites and reliable news sources for up to date facts.

Best regards,

1on1 Tax Team.

1. Temporary early release of superannuation for individuals

Individuals affected by the economic impacts of COVID-19 can access up to $10,000 of their superannuation savings before 01 July 2020 and a further $10,000 after 01 July 2020 (subject to a 6-month time frame).

ELIGIBILITY:

You are unemployed; or
You are eligible to receive Jobseekers, Parenting Payment, special benefit or Farm Household Allowance; or
From 01 January 2020, you were:
- made redundant; OR
- your working hours were reduced by at least 20%; OR
- you are a sole trader and your business was suspended or turnover reduced by 20% or more.

Tax will not need to be paid on amounts released and it will not affect Centrelink or Veteran’s Affairs payment.

For more information go to Early access to superannuation

2. payments to support households for individuals

Individuals eligible for social security and veteran income support recipients and eligible concession card holders at any time from 1 March 2020 to 13 April 2020, will receive $750 payment from 31 March 2020. A further $750 payment to be made from 13 July 2020, please note that this excludes those who already receive the $550 fortnightly Coronavirus Supplement. These payments are exempt from income tax.

For more information go to Payments to support households

3. Coronavirus supplement for individuals and sole traders

From 27 April 2020 for 6 months, new and existing recipients of the Job Seeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit can earn up to an additional $550 per fortnight.

Sole traders, self-employed people and people caring for those infected or in isolation as a result of contact with Coronavirus will also be eligible for the supplement. The Government will temporarily waive for certain payments.

For more information go to Coronavirus information and support – DSS

4. Boosting Cash Flow for Employers

DESCRIPTION

Businesses and not-for-profits employing people will receive a credit amounting to 100% of PAYG tax withheld from their employee’s wages from 01 January 2020 up to 30 June 2020. Employers will receive $10,000 minimum per Activity Statement even if they are not required to withhold any PAYG tax.

ELIGIBILITY:

Small and medium-sized business entities with aggregated annual turnover under $50 million.

HOW THE PAYMENTS WILL BE DELIVERED:

These tax-free payments (Boosting cash flow for employers’ payments) will be made through the BAS/IAS process to employers that employ staff. The payments will be split between the following:

Period: Jan – Mar 2020 & Apr – Jun 2020 Business Activity Statements

Date: 28 April 2020 & 21 July 2020

Credit: 100% of PAYG tax withheld from $10,000 up to maximum of $50,000 from the 1^st of January 2020.

Period: Jun 2020 & Jul – Sept 2020 Business Activity Statement

Date: 21 July 2020 & 21 October 2020

Credit: 50% of initial payment up to a maximum of $50,000

For more information go to Cash flow assistance for businesses

5. Supporting apprentices and trainees

Employers with less than 20 full-time employees, who retain an apprentice/trainee (who was in training with the employer as at 01 March 2020) may be entitled to receive a wage subsidy of 50% of the apprentice’s or trainee’s wage for 9 months from 01 January 2020 – 30 September 2020. The maximum wage subsidy of the 9-month period is $21,000 per eligible apprentice or trainee.

For more information go to Cash flow assistance for businesses

6. Temporary relief for financial distressed businesses

Creditors can issue statutory demand when debt reaches $20,000 (originally from $2,000)
Creditors can start bankruptcy proceedings from $20,000 (originally from $5,000)
The time limit for both these notice periods is 6 months (originally 21 days)
Temporary relief for directors from any personal liability for trading while insolvent

For more information go to Temporary relief for financially distressed businesses

7. Backing business investment

Businesses with annual aggregated turnover less than 500 million, will now be able to deduct 50% of new asset’s cost with existing depreciation rules applying to the balance of the asset’s cost from 12 March 2020 up to 30 June 2021.

For example:

A truck mounted concrete pump costs $800,000 and was purchased on the 30^th May 2020 (purchase date must be from 12 March 2020 and before 30 June 2021).
The business will receive the following deductions:

$800,000 x 50% = $400,000 accelerated depreciation
$400,000 x 30% = $120,000 existing depreciation rules

$520,000 total deduction

For more information go to Delivering support for business investment

8. Instant asset write-off for businesses

From 12 March 2020 until 30 June 2020, the instant asset write-off for eligible businesses has been increased to $150,000. Eligible businesses are those with a turnover of less than $500 million.

For more information go to Delivering support for business investment

9. Relief for businesses impacted by COVID-19:

6 MONTHS DEFER:

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

OPTION FOR QUARTERLY TO MONTHLY CYCLE:

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

PAYG INSTALMENT VARIATIONS:

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

REMISSIONS FROM 23 JAN 2020:

Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities

LOW INTEREST PAYMENT PLANS:

Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.

For more information go to Support measures to assist those affected by COVID-19

10. Coronavirus supplement for individuals and sole traders

From 27 April 2020 for 6 months, new and existing recipients of the Job Seeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit can earn up to an additional $550 per fortnight.

For more information go to Coronavirus information and support – DSS

Have more questions?

ATO Emergency Support Infoline – 1800 806 218

Business Queensland – 1300 654 687

myGov – 132 307

Centrelink Support – 1300 169 468

Further sources