SMASHING THE CRISIS: A COVID-19 TOOL KIT

We've summarised all of the various government support initiatives and stimulus packages available to businesses in one single location. Alongside providing our insight into what the measures mean, how you can apply for them, and other things you can do to manage and protect yourself and your business, we've also included helpful blogs, webinars and checklists you can download and action right now.
LATEST DETAILS ABOUT THE
JOBKEEPER 2.0 OVERHAUL

The Federal Government has announced that that the JobKeeper payment, which was originally due to run until 27 September 2020, will now continue to be available for eligible businesses until 28 March 2021. From the first week of October, the payment will be reduced, and a new, two-tiered system will be introduced to separate part-time and full-time payments. The overhaul will also feature tighter eligibility requirements for businesses to receive the subsidy.

Read our latest blog for the full JobKeeper 2.0 details.

What are the JobKeeper 2.0 changes?

  • The JobKeeper wage subsidy has been extended until March next year.
  • Allowances for full-time workers will fall from $1,500 to $1,200 a fortnight from 28 September 2020 and to $1,000 per fortnight from 4 January 2021.
  • Allowances for part-time workers who work less than 20 hours a week will fall from $1,500 to $750 a fortnight from 28 September 2020 and to $650 per fortnight from 4 January 2021.
  • Businesses will need to retest and re-qualify to remain eligible for payment subsidies.
AN OVERVIEW OF
JOBKEEPER 2.0
Below is a summary of all the key details for JobKeeper 2.0. Click here to download a pdf version.
JobKeeper 2.0 Infosheet COVID-19 Stimulus
CHECK YOUR ELIGIBILITY FOR

The JobKeeper Payment scheme is a temporary subsidy for businesses significantly affected by coronavirus (COVID-19). The Government will provide a fortnightly payment of $1500 per eligible employee until 27 September 2020. The JobKeeper is administered by the Australian Taxation Office (ATO) to eligible employers, sole traders and other entities.

Employers need to pay eligible employees a minimum of $1500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month. The first payments to eligible employers commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020.

The subsidy started on 30 March 2020, with the first payments received by employers in the first week of May.

Find out more at the ATO website.

Employers are eligible for the JobKeeper payment if all of the following apply:

  • On 1 March 2020, you had an active business or not-for-profit organisation
  • You employed at least one eligible employee on 1 March 2020.
  • Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired). Your business has faced either a:
    • 30% fall in turnover (for an aggregated turnover of $1 billion or less)
    • 50% fall in turnover (for an aggregated turnover of more than $1 billion), or
    • 15% fall in turnover (for ACNC-registered charities other than universities and schools)
HOW TO APPLY FOR THE
JOBKEEPER SCHEME
  • Enrol in the JobKeeper scheme on the ATO website
  • Demonstrate that your business has or will experience the applicable 30% turnover decline
  • Identify your specific eligible employees and submit the information to the ATO (including those stood down or rehired), and provide this information on a monthly basis
  • Ensure that each eligible employee is paid at least $1,500 per fortnight (before tax).
  • Notify all eligible employees that they are receiving the JobKeeper Payment.
  • Reconfirm eligibility every month by completing the business monthly declaration between the 1st and 14th of each month. The earlier this step is completed, the sooner you receive your reimbursement for that month.
DOWNLOAD YOUR

Our COVID-19 Action Checklists outline immediate action items you can take now and practical considerations you should be thinking about to manage the potential impacts on your personal and business finances.

Download the checklists today and ensure you get the government stimulus measures available for your business and employees.

OTHER CONSIDERATIONS FOR
  • Manage Work Health & Safety: It's important to get an accurate view of which of your team members are working from home from a productivity and reporting standpoint, but also for insurance reasons. Check out the government's Safety Checklist to identify any risks associated with working from home and make sure your people are covered.
  • Understand your rights and responsibilities: Find out more about the options available to businesses and the implications for employees for arranging flexible work, using paid and/or unpaid leave, standing down employees, ending employment, and business bankruptcy and insolvency at the Fairwork website.
  • Income Support for Sole Traders: Sole traders and other entities may be eligible to receive the JobKeeper Payment if their turnover has reduced due to coronavirus. Following registration by the eligible business, the Government will provide $1500 per fortnight per eligible employee until 27 September 2020.
  • Apprentice Relief: Small businesses with apprentices and trainees are eligible to receive a wage subsidy of 50 per cent of their apprentice's wages, up to a maximum of $21,000 per eligible apprentice or trainee, for up to 9 months from 1 January 2020 to 30 September 2020.
APPLY FOR

The Australian Taxation Office (ATO) will provide relief for certain tax obligations for businesses affected by the Coronavirus on a case-by-case basis.

  • Payment deferral: Deferring by up to 4 months the payment date for BAS amounts due (including PAYG instalments), income tax assessments, FBT assessments and excise duty.
  • Monthly GST credits: Businesses on a quarterly reporting cycle may elect to change their GST reporting and payment to monthly, to get quicker access to GST refunds you are entitled to. You can only change from the start of a quarter, so a change now will take effect from 1 April 2020.
  • Interest and penalty remission: The ATO will consider remitting interest and penalties applied to tax liabilities incurred after 23 January 2020.
  • Low-interest payment plans: For business that need help to paying their existing and ongoing tax liabilities, you can contact the ATO to discuss entering a low payment plan.

ATO assistance will not be automatically implemented. We can help request assistance for you from the ATO, and if eligible, the ATO will tailor their support arrangements for you.

If you are not a current client, you can also call the ATO Emergency Support Infoline on 1800 806 218 to discuss relief options based on your needs and circumstances.

Other ways of contacting the ATO can be found on the ATO Contact page.

LOOK AT THE AVAILABLE OPTIONS FOR
  • Payroll tax changes
    • Tax-free threshold increase from $900,000 to $1 million.
    • Deferral of payroll tax for business with payrolls over $10 million for 6 months.
    • An additional 3-month deferral for businesses with payrolls of $10 million or less who received a 3-month waiver on payroll tax in the first package (March, April, May 2020).
  • $3000 Small Business Recovery Grant: Small businesses across NSW will be able to apply for funding to help them safely reopen after the COVID-19 shutdown. 
    • Apply online at Service NSW before 16 August 2020
    • Eligible businesses must have experienced at least 30% decline in turnover from March to July 2020, employ less than 20 full-time equivalent (FTE) staff, and be able to report a payroll below the NSW 2019-2020 tax threshold of $900,000
    • The grants can be used to cover marketing and advertising expenses, make fit-out changes and train staff in how to work safely under the current COVID-19 health conditions.
  • Deferral of gaming tax for clubs, pubs and hotels, and lotteries tax: Gaming machine tax normally paid between 1 March 2020 and 31 August 2020 is deferred to 1 September 2020. You do not need to apply for this.
  • Rent reduction for up to 6 months: Eligible commercial tenants may be able to request rent reductions
  • Land tax relief to support commercial leasing: Eligible commercial landlords can apply for a land tax concession of up to 25% of the 2020 calendar year, for relevant properties, if they pass the savings on to their tenants in the form of a rent reduction.
  • Deferral of the parking space levy (PSL) for 6 months: Payments from the end of March for six months until 30 September 2020 have been deferred to provide cash flow relief to businesses.
    • The deferral applies to the 4th quarter outstanding balance. The due date on the last quarter outstanding balance of your 2019-20 levy is now extended from 1 June 2020 to 30 September 2020.

Contact the NSW Business Concierge Service on 13 77 88 or visit the COVID-19 help for small businesses page.

  • $5,000 Grant Local Lockdowns Business Support Program: Businesses that are operating within a postcode affected by the return to Stage 3 restrictions are eligible for a one-off, $5,000 grant to help them get through to the other side of the local lockdown.
    • Register your interest by 31 July 2020 online.
    • Affected businesses include restaurants, cafes, pubs, gyms, indoor sporting venues, cinemas, live music, entertainment venues
  • Payroll Tax Refund: Businesses with annual taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived.
    • The State Revenue Office will directly contact eligible businesses to reimburse them for payroll tax already paid in the financial year.
    • Businesses can also defer paying payroll tax for the first quarter of the 2020-21 financial year.
    • Apply online for an emergency tax relief refund of payroll tax already paid in the 2019-20 financial year via PTX Express.
  • Liquor licence fees waived: Renewable liquor licence fees for 2020 will be waived. Businesses that have already paid will be reimbursed.
  • Land tax relief: Landlords who provide tenants impacted by the coronavirus pandemic with rent relief and those unable to secure a tenant because of the pandemic may be eligible for a 25% reduction on the property’s 2020 land tax. These landlords can also defer payment of their remaining 2020 land tax up to 31 March 2021.
    • Check your eligibly and apply via My Land Tax online
    • If the SRO has already advised you that your 2020 land tax has been deferred, you will only be applying for the 25% land tax reduction. If you have not been advised of a deferral, you can apply for a deferral at the same time as you apply for the 25% land tax reduction.
  • Commercial tenancy relief scheme: 6-month moratorium on commercial tenancy evictions from 29 March 2020 for the non-payment of rent for small to medium enterprises with an annual turnover under $50 million that have experienced a minimum 30 per cent reduction in turnover due to coronavirus (COVID-19)
    • freeze on rent increases during the moratorium for commercial tenants
    • a rental payment waiver or deferral proportionate to commercial tenants’ income reduction due to coronavirus (COVID-19), to be negotiated between tenant and landlord
    • a mediation service for commercial tenants and landlords to support fair tenancy negotiations.

Contact the Business Victoria hotline on 13 22 15 for more information, or access the Coronvirus business support page.

  • Small Business COVID-19 Adaptaion Grant: Round 2 opened on 1 July 2020. Check your eligibility and apply now for up to $10,000 funding for micro and small businesses impacted by COVID-19.
  • Defer payroll tax for 2020: You can apply to defer paying your payroll tax for the 2020 calendar year. If you had already applied for an earlier deferral date, you do not need not reapply – it will be extended to 31 December 2020.
  • COVID-19 Supplier Portal: Register the goods and services you can supply on a portal where Government and industry buyers can find items they need.
  • Queensland Small Business Commissiner: Commercial landlords and tenants can seek help to resolve COVID-19 impacted lease disputes.

 

Visit Business Queensland or contact the Small Business Holtine on 1300 654 687.

  • Payroll tax waivers: All businesses whose operations are directly affected by the prohibited activities list such as gyms and indoor sporting venues, cinemas, beauty therapists and nail salons will be eligible to receive a six-month waiver of payroll tax from April to September 2020.
  • Payroll tax deferral: All ACT businesses with Australia-wide wages of up to $10 million can defer their 2020-21 payroll tax, interest free until 1 July 2022.
  • Payroll tax deferral for construction industry: ACT businesses in the construction industry can defer their payroll tax liability, interest free for the six months from April to September 2020. Interest will not be charged on deferred amounts until 1 October 2020.
  • Commercial Tenancies Relief: Landlords are required to negotiate in good faith with tenantes who have qualified for the JobKeeper program and who cannot afford to pay their rent.
    • Property owners can apply for rebates on their general rates bill if they reduce rent for tenants significantly affected by COVID-19 from 1 April 2020 for six months; and
  • $750 Small business electricity rebate: Small business owners with electricity usage below 100 megawatts per year will see rebates of $750 automatically applied to their next electricity bill in around June or July 2020. The rebate will apply regardless of whether customers are on standing or market offers.
  • Hotels and accomodation providers fixed charge rebate: Hotels and serviced apartments will receive a rebate of the water and sewerage fixed charges on Icon Water bills for the first two quarters of 2020-21, saving businesses hundreds of dollars in fixed charges as they transition to reopening safely.
  • Food business registration, outdoor dining and liquor licensing fee waivers: On liquor licencees and Off licencees with gross liquor purchase value of $3 million or less in the last reporting year will receive a 12-month waiver of their annual food business registration and liquor licencing fees from 1 April 2020. Outdoor dining fees for 2020-2021 will also be waived.
    • Businesses do not need to contact the ACT Government for these waivers. This will be applied automatically as part of the normal annual fee licencing process.

Read more at the ACT Government website.

  • $17,500 grant for businesses with payroll tax between $1 million and $4 million
    • These will be automatically be paid by cheque to eligible businesses. Login to Revenue Online to ensure your postal address is up to date.
  • Payroll tax threshold increased to $1 million
  • Payroll tax waived from March to June for small businesses with annual wages under $7.5 million at 30 June 2020 declaring WA taxable wages as normal in Revenue Online 
    • Employers with taxable wages less than $5 million at 29 February can automatically claim the waiver by declaring WA taxable wages as normal in Revenue Online and recording the value of WA taxable wages as exempt wages using the ‘Other Exempt Wages’ field.
    • Employes with over $5 million in taxable wages at 29 Feburary can apply to defer lodgement and payment of returns
  • Rental payments waived for small businesses and not-for profit tenants of State Government-owned buildings for 6 months
  • One-off $2,500 credit on electricity bills for small businesses that consume less than 50MWh per annum.
  • Interest-free payment arrangements and late payment penalties waived for a range of taxes and duties, including payroll tax, transfer duty, landholder duty, vehicle licence duty or land tax.
  • Business licence fees waived: Including liquor licence renewal fees for 2020. Refunds will be given to businesses that have already paid liquor licence fees.
 
Contact the COVID-19 assistance centre on 133 140. Read more about the support measures at the WA Government website.
  • 6-month payroll tax waiver: Business groups with annual payroll tax of up to $4 million will receive a 6 month payroll tax waiver for the months of April to September 2020.
    • No application will be required. RevenueSA will notify these businesses through Revenue SA Online.
    • Business groups with annual payroll tax above $4 million that can demonstrate they have been significantly impacted will be able to apply
  • Land tax deferral: Businesses and individuals paying land tax quarterly in 2019-20 will be able to defer payment of their remaining 2019-20 land tax payments for 6 months.
    • Previously announced land tax reform transitional relief fund will be increased from 50% to 100% of the increase in an eligible taxpayer's 2020-21 land assessment.
  • Job Accelerator Grants: b>Relaxed criteria requiring an employer to have maintained their overall employment levels to be eligible for their second JAG payment.
    • Applications for the second JAG payment from 1 February to 30 June 2020 will be assessed on staffing levels as at 31 January 2020 rather than the relevant anniversary date.
  • Liquor licensing fees waiver:b>Waiver of annual licencing fees for 2020-21 for the On-Premises, Residential, Restaurant & Catering, Club, Liquor Production & Sales and Small Venue categories.

 

Contact South Australia Business at 1300 142 820, or visit the Financial Support for SA Businesses page.


 Tasmania's grants previously administered through Department of State Growth have now closed. Other free support can be found on their website.

SEEK LOAN REPAYMENT DEFERRAL VIA

As customers approach the end of their six-month loan repayment deferral period, banks are implementing phase two of their COVID-19 support. Find out more about the options available to you at the Australian Banking Association website.

98% of all businesses (including not-for-profits) with a loan from an Australian bank are eligible for help.

If you can pay in full, then you’ll be required to start repaying your loan at the end of your deferral period.

If you can partially pay but are in ongoing financial difficulty, you may have your loan restructured or varied to allow you to return to paying off your loan. If you can’t restructure, you may be eligible for an extra deferral period of up to four months.

During this four month extension, you will be expected to work with your bank to find the best solution to return to repayments. This four-month extension will not be automatic, it will only be provided to those that banks believe will genuinely benefit from extra time.

If you cannot make repayments either during or at the end of any deferral, you will be assisted through your bank’s financial hardship process to determine your best long-term solution.

Banks will communicate with you in a clear and timely manner, act with honesty and integrity and treat you in a fair and ethical manner.

APPLY FOR THE

The Coronavirus SME Guarantee Scheme will guarantee 50 per cent of new loans issued by eligible lenders to SMEs. The guarantee will apply to eligible unsecured loans of up to $250,000 per borrower (plus interest) and will apply to both principal and interest.

Loans must be approved by 30 September 2020 in order to be covered by the guarantee.

The Government will provide eligible lenders with a guarantee for loans with the following terms:

  • SMEs, including sole traders, with a turnover of up to $50 million.
  • Maximum total size of loans of $250,000 per borrower.
  • Loans will be up to 3 years, with an initial 6 month repayment holiday.
  • Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.

To apply for the scheme, contact James Russell, Kelly+Partners Finance Director to discuss the options available to you at james.russell@kellypartnersfinance.com.au.

FORECAST AND MANAGE YOUR
  • 7 Steps in Building a Great Cashflow Forecast: A great cash flow forecast helps you to understand what the payment cycles look like in your business, plan for any future ups and downs and identify areas that require focused attention. Read the full blog post.
  • Claim instant asset write-offs in tax time 2020: From 12 March to 30 June 2020 (inclusive), the instant asset write-off threshold for each asset increased to $150,000 (from $30,000). The assets must have been used, or installed ready for use, between 12 March 2020 and 30 June 2020. Lodge your tax return as soon as you can to receie any potential 2020 income tax returns.
  • 50 Per cent Investment Incentive: Businesses can deduct 50 per cent of an asset's cost in the year of purchase via a time-limited 15-month investment incentive. The asset must be a depreciating asset purchased between 12 March 2020 and 30 June 2021. There is no asset value threshold for this incentive. The existing depreciation rules will continue to apply to the remaining balance of the asset's cost over its effective life.

    The incentive does not apply if you are using the instant asset write-off for the asset, and the asset cannot be second-hand, capital words, or outside Australia. The credit will be processed on the preparation and lodgement of your 2020 income tax return.
NEGOTIATE YOUR

The Government announced a Mandatory Code of Conduct for commercial leases in April 2020 to support businesses affected by COVID-19. The Code of Conduct outlines a set of good faith leasing principles for commercial tenancies including retail, office and industrial between owners, operators, other landlords and tenants.

The code applies to tenants that have an annual turnover of up to $50 million, and are eligible for the JobKeeper Payment.

The key points for business owners:

  • Rent reductions will be based on the tenant’s decline in turnover to ensure that the burden is shared between landlords and tenants
  • Rent waivers must account for at least 50% of the rent reduction
  • Deferrals must be spread over the remaining time on a lease, or a minimum 24-month period

Under the code, landlords will not be able to:

  • increase rent
  • terminate leases due to non-payment of rent during the pandemic period
  • enforce penalties on tenants who stop trading or reduce opening hours
  • charge interest on unpaid rent and legislative and administrative hurdles to lease extensions will be removed.

The Code and its principles will be implemented and regulated by your relevant state or territory.

The policy will include a mutual obligation requirement on the small and medium-sized businesses and not-for-profit tenants to continue to engage their employees through the JobKeeper Payment where eligible, and if applicable, provide rent relief to their subtenants.

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