Coronavirus support for you

Coronavirus support for youIt’s hard to escape the news of the Coronavirus as it continues to have a huge impact on people across the world. Closer to home, the Morrison Government has announced a stimulus package in response to the anticipated economic downturn.

This package includes a number of economic stimulus measures for the 2019/20 and 2020/21 income years, with most of targeted at helping small to medium-sized businesses.

Here to help

But first, we want to assure you that we are here to help you weather the issues that this virus raises. We’re also very aware that your family, staff and business needs are top priority. Also, If you would like to conduct meetings over the phone or online communication platforms like Zoom, we can oblige.

What the stimulus package means for you

Here’s a summary of the Australian Government’s announcement with an overview of what’s in the package. Please do not hesitate to get in touch if you have a question.

Support for businesses

We have set out the business support that has been passed by the government in our article Coronavirus Stimulus Package. Since then the government has announced its JobKeeper Payment.

This package includes:

  • A $1,500 per employee per fortnight employment subsidy
  • A cash flow boost for employers
  • Support for apprentices and trainees
  • An increase in the instant asset write-off threshold to $150,000
  • An immediate 50% depreciation deduction on assets above $150,000
  • Temporary relief for financially distressed businesses
  • Government support for lending to small and medium sized businesses

In addition, there are measures that will indirectly help Australian businesses:

Income support for individuals

Over the next six months, the Government is temporarily expanding eligibility to income support payments. They are establishing a new, time-limited Coronavirus supplement payable at $550 per fortnight. This will be paid to both existing and new recipients of JobSeeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.

Stimulus payments to lower income Australians

The Government will provide two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders. The first payment will be made from 31 March 2020 and the second payment will be made from 13 July 2020. Around half of those that benefit are pensioners. This payment will help to support confidence and domestic demand in the economy. However, the second payment is not for those eligible for the Coronavirus supplement.

Support for Coronavirus-affected regions and communities

The Government has set aside $1 billion to support those regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus.

Temporary early release of 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.

ATO flexible approach

The ATO has signalled it will be flexible in the way it handles taxpayers’ affairs over the coming months. The measures will include:

  • up to a four month deferral of the payment date of amounts due through the business activity statement. These include PAYG instalments, income tax assessments, fringe benefits tax assessments and excise.
  • Allowing quarterly GST reporting businesses to opt into monthly GST reporting in order to get quicker access to GST refunds.
  • Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the April 2020 quarter. Businesses that vary their PAYG instalment to zero may also claim a refund of instalments paid for the September and December 2019 quarters.
  • Looking to remit any interest and penalties, incurred on or after 23 January 2020, on tax liabilities. Affected businesses may also pay their existing and ongoing tax liabilities in low-interest payment plans.

If you have any questions or concerns, please feel free to reach out to us directly. Please stay safe and we wish you all good health in the months to come.