The legislation to implement them is to be drafted next week.
$25,000 Small Business GrantA $25,000 payment will be made to small & medium businesses with turnover of less than $50m who employ staff.
The payment will be automatic and applied by the ATO against your Business Activity Statement from the 28th April. Eligibility will be based on prior year turnover and payments will be 50% of the amount withheld up to the $25,000.
More details can be found: here
Supporting Apprentice PackageIn addition, a wage subsidy of $21,000 per apprentice or trainee ($7,000 per quarter) will also be introduced. This is open to any business employing less than 20 fulltime employees.
It will also be open to larger businesses if they re-employ an apprentice that was training with a small business and has been let go.
This package will be managed by an Australian Apprenticeship Network (AASN) provider.
More details can be found: here
Australian Tax OfficeThe ATO has announced several items to assist businesses with cash flow including:
- Payment Deferrals
- Quarterly PAYG instalment variations to $0
Note: Businesses must still meet their Super Guarantee Obligations – by law these cannot be deferred and you will incur additional penalties if you fail to make them on time.
New South Wales
Payroll Tax Waiver & Threshold changesNSW are waiving payroll tax for the next 3 months, meaning a saving of a quarter of the yearly payroll tax bill. This will be available for payrolls up to $10m.
Additionally, they are bringing forward increases to the payroll tax threshold to July 2020. Currently $900,000 is the threshold, however from 1st July 2020 it will be $1m.
Payroll Tax DefermentQLD are deferring, until July 2020, the payment of payroll tax for businesses with an annual payroll up to $6.5m. To access this deferment, you will need to apply on the Business Queensland website.
Job Support LoansBusinesses impacted by COVID-19 can apply for a Job Support loan of up to $250,000 to retain employees and maintain operations. The loans will have a 12-month interest free period.
For more details and to apply click here.
Payroll Tax GrantIn WA, a one-off grant of $17,500 will be given automatically to any business with an annual payroll between $1m & $4m. This will be determined from the last financial year payroll tax lodgements and paid automatically via cheque.
Reduction in Payroll Tax thresholdFrom 1st July 2020, the payroll tax threshold will be increased from $950,000 to $1m. This brings forward the reduction in payroll tax by 6 months.
Payroll Tax DefermentSmall to medium businesses will be allowed to defer their payroll tax payments until 21st July 2020.
To request a deferment click here.
Payroll Tax Relief
Tasmania are waiving payroll tax for the last 4 months of the 2019-2020 financial year for key hospitality, tourism and seafood businesses. Small & medium businesses in other industries with annual salaries less than $5m will be able to apply for a three-month waiving of their payroll tax liability.
For more details click here.
If / When the Victorian, ACT or NT governments announce employer directed relief we will let you know. Note: All of the above announcements still require legislation to pass to actually be in effect.
If you find your business is in any difficulty, we recommend you seek professional advice from an accountant as early as possible.