Coronavirus (COVID-19) Business

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BUSINESS

Your business might be eligible for support.

As a result of the Coronavirus outbreak, the Australian Government has recently announced an economic response totalling $17.6 billion. This response aims to support Australian businesses in the following key areas:

  • Cash flow assistance for businesses
  • Support for business investments

We have included information below on the types of support available, eligibility criteria and expected support time-frames. 

 

Cash Flow Assistance for Businesses

Assistance will be provided to help businesses manage their cash flow and retain employees through two measures:  

1. Boosting Cash Flow for Employers  

What is it? 
Eligible businesses will receive up to $25,000 tax free, with a minimum payment of $2,000.

Who is eligible? 
Small and medium business entities with employees and aggregated annual turnover of under $50 million (based on prior year turnover).

Eligible businesses that withhold tax to the ATO on their employees salary and wages will receive a payment equal to 50% of the amount withheld (maximum payment of $25,000). 
Eligible businesses that pay salary and wages will receive a minimum payment of $2,000, even if they are not required to withhold tax.

When will it be received? 
The payment will be delivered by the Australian Taxation Office (ATO) as a credit in the Activity Statement system from 28 April 2020, upon businesses lodging eligible upcoming activity statements. 

2. Supporting Apprentices & Trainees

What is it?
Eligible employers can apply for a wage subsidy of 50% of the apprentice’s wage paid during the 9 months from 1 January 2020 – 30 September 2020 (maximum $21,000 per eligible apprentice).

Who is eligible? 
Small businesses who retain an apprentice or trainee and employ fewer than 20 full time employees. The apprentice must have been in training with the business as at 1 March 2020.

How to apply? 
Employers can register for this subsidy from early-April 2020 by contacting an Australian Apprenticeship Support Network (AASN) provider. Final claims for payment must be lodged by 31 December 2020.   

Support for Business Investments

1. Increasing the Instant Asset Write-Off
The Government has increased the instant asset write-off threshold from $30,000 to $150,000. They have also expanded access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.

2. Backing Business Investment
The Government is introducing a limited time 15-month investment incentive (through to 30 June 2021) to support investment by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the assets cost.  

Additional Resources and Support

Australian Apprenticeship Support Network

Australian Government: Business Support
Australian Government Treasury Website

ATO Support Services

Click here to download an Economic Response Overview.

Click here to download an Economic Response Factsheet.

 

 

Summary of stimulus package

Stimulus Condition

Details

Main Benefited Sectors

$25,000 Cash payments  

Will be an automatic payment, through Business Activity Statement, (BAS), of $25,000 grants for small and medium sized businesses, up to a turnover of $50 million.

 

Retail Sector

Smaller-Medium processors/ non packer exporters

Instant Assets Write offs

Instant Assets Write offs for purchases of equipment for the businesses. Previously was for businesses up to $50 million with purchases of some $30,000 dollars, now increased to $150,000 and it will go to businesses with a turnover of up to $500 million.

 

 Larger Businesses  (turnover >$50m)

Apprenticeship payments

For businesses of less than 20 employees, paying half the wages of Apprentices, back dated from the 1st of January of this year, for 9 months total.   (from 1 January 2020 to 30 September 2020)

Retail sector

Fund for heavily impacted regions and businesses 

Regions and businesses which are most heavily impacted by the virus will be eligible for additional financial support through a regional and community fund established by the federal government.

It will also include additional assistance to help businesses identify alternative export markets or supply chains

The $1 billion fund will be available.

 

Exporters?

Unsure no detail as of yet. Likely target will be those heavily reliant on industries such as tourism, agriculture and education.

 

Tax Relief 

The Australian Tax Office (ATO) is also providing administrative relief for some tax obligations for people affected by the coronavirus outbreak, on a case-by-case basis

  • No details

 

 

The material in this email has been compiled from both State and Federal government sources. It does not constitute legal advice or recommendations and should not be relied upon as such. Appropriate legal advice should be sought that reflects your individual circumstances.
The Australian Meat Industry Council is all about our members being Retail, Processing and Smallgoods.

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