COVID-19 Stimulus Relief

The Government is providing up to $100,000 (across two payments) to eligible small and medium-sized businesses, and not for-profits (NFPs) that employ people, with a minimum payment of $20,000.

These payments will help businesses and NFPs with their cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.

Who is Eligible?

Small to medium sized businesses who have an aggregated annual turnover under $50 million, held an active ABN on 12 March 2020 (and continues to be active) and made eligible payments that the business is required to withhold from.

Not-for-profit entities who have an aggregate annual turnover of less than $50 million, held an active ABN on 12 March 2020, and made payments to employees.

How to Apply and Timing of Payments

If your business or not-for-profit is eligible for this relief, you don’t need to apply for the scheme.

If eligible, upon lodgement of your activity statement the first amount will automatically be credited to the business’ account on the 28 April 2020 (a minimum of $10,000 up to a maximum of $50,000). A business that lodges early will not receive the cash flow boost before this date.

An additional payment has also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they already received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments.

Additional information

• Boosting Cash Flow Fact Sheet

Businesses that have been significantly impacted by COVID-19 will be able to access a wages subsidy to continue paying your employees.

Under the JobKeeper program, you will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum of six months.

Who is Eligible?

Employers will be eligible for the subsidy if:

• Their business has a turnover of less than $1 billion and their turnover has fallen by more than 30%;
• The business is not subject to the Major Bank Levy

Eligible employees are employees who:

• Are currently employed by the eligible employer (including those stood down or re-hired);
• Were employed by the employer at 1 March 2020;
• Are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020)
• Are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder

How to Apply and Timing of Payments

If you wish to participate in this scheme you need to register online at the ATO website.

The first payment will be received by employers from the ATO in the first week of May.

Additional Information

• JobKeeper Fact Sheet

The Government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.

Who is Eligible?

The Government is expanding access so that more businesses can take advantage of the IAWO. The annual turnover threshold for businesses is increasing from $50 million to $500 million.

Expanding the threshold will mean an additional 5,300 businesses who employ around 1.9 million Australians will be able to access the IAWO for the first time.

This proposal applies from announcement until 30 June 2020, for new or second-hand assets first used or installed ready for use in this time frame.

Additional Information

• IAWO Fact Sheet

The Payroll Tax Relief offers immediate payroll tax refunds of $740 million for COVID-19 affected businesses. Eligible businesses can also apply for deferral until the end of 2020 and a payroll tax holiday for three-months.

All small and medium businesses (payrolls of $6.5 million or less) in Queensland will be eligible for:

• A two-month refund of payroll tax, giving an average of nearly $9,000 in cash
• A three-month payroll tax holiday, saving an average of $13,360

In addition, they will be eligible to defer all payroll tax payments for the rest of 2020.

This means no eligible small or medium Queensland business will have to make a payroll tax payment this calendar year.

Who is Eligible?

If you are an employer (or part of a group of employers) who pays $6.5 million or less in annual Australian taxable wages you will receive a refund on your November and December 2019 payroll tax returns, and a payroll tax holiday (which means that you pay no tax) for January, February and March 2020.

How to Apply and Timing of Payment

An online portal for businesses to apply for payroll tax relief can be accessed via www.business.qld.gov.au.

The state government is aiming pay the refund within 48 hours of businesses completing all the required steps.

The payment will be made to the business’ nominated bank account.

Additional Information

• Payroll Tax Relief Fact Sheet

• Relief for businesses renting government premises.
• $500 rebate on electricity bills for all Queensland small and medium sized businesses that consume less then 100,000 kilowatt hours. This will be automatically applied to electricity bills.
• Liquor licensing fees waived for business impacted by enforced safety industry shutdowns.