Help is Coming
Help is coming. Not a lot. But hopefully enough.
Help Is Coming
The federal and state governments, ATO and Reserve Bank are all implementing measures to help you cope with COVID-19. The 1st round of measures have been announced. More measures will follow in a 2nd and possibly 3rd round. Here is what should be coming your way – current as of 25 March 2020 7am.
The federal government announced its 1st round of measures on 12 March 2020. The bill was passed late Monday night on 23 March 2020 without objection in both the House of Representatives and the Senates after some amendments were made. We don’t have the details yet, but so far you are likely to receive:
1 – 50% Cash Boost of PAYG withholding from Jan to June 2020.
2 – Instant asset write-off of $150,000 until 30 June 2019
3 – 50% deduction for any asset purchased by 30 June 2021
4 – 50% wage subsidy for apprentice and trainee wages til 30 Sep 2020
The 50% cash boost will probably have the greatest impact. It has been increased to $100,000 with a $20,000 minimum per business.
All Australian states and territories have announced COVID-19 stimulus packages. NSW announced its measures on 17 March 2020 – first bill expected later next week. This proposal includes a:
5 – Waiver of payroll tax from now until 30 June 2020
6 – Raise of payroll threshold to $1m from 2020/21
7 – Waiver of many state fees and charges for SME in NSW
The ATO has announced that you can request a:
8 – Reduction of PAYG instalment for the March quarter to nil
9 – Refund of PAYG instalments already paid for this financial year.
10 – 4-months deferral of BAS, PAYG I, FBT and excise payments
And the Reserve Bank of Australia (RBA) is trying to get you the finance you need at an affordable interest rate, so that you can receive:
11 – Rate cut via your bank due to a cut of the RBA rate
12 – Extra funding through your bank from a $90b funding facility
13 – Extra funding from non-bank lenders from a $15bn funding facility
Australian Banking Association
14 – Banks are not to push for repayment of $100bn in business loans.
The above is only a short summary, but a lot of the if and when won’t affect you, for example the $500m turnover threshold.
More details will follow soon. Just call if you want to talk this through.
Disclaimer: numba does not provide specific financial or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax advice when considering whether the information is suitable to your circumstances.
Liability limited by a scheme approved under Professional Standards Legislation.
Last Updated on 25 March 2020