22 March 2020 - Updated Stimulus Package - Business and Superannuation Access
The Australian Government has announced further measures to assist Australians and businesses experiencing financial difficulty as a result of the COVID-19 outbreak.
Today’s significant announcements include for businesses:
- Small and medium sized businesses with turnover under $50 million, along with not for profit charities will be eligible for a tax free payment of up to $100,000.It will be worth 100 per cent of the tax those entities withhold from salary and wages of employees.
- The government will provide a guarantee to half of a bank’s loan to SME (turnover up to $50million) for loans granted within six months, commencing 1 April 2020. The government will guarantee unsecured loans of up to $250,000 over 3 years.
- For those individuals going through financial difficulty, to access up to $10,000 of their superannuation in the 2019/20 financial year and a further $10,000 in 2020/21, tax free.
- The minimum annual payment required for pensions will be reduced by 50% for 2019/20 and 2020-21.
The additional measures outlined last week included:
- Increase in the instant asset write off threshold from $30,000 to $150,000 for all businesses with aggregate annual turnover of less than $500 million until 30 June 2020.
- Businesses with an aggregate turnover of less than $500 million are able to deduct 50% of the cost of an eligible asset.
- Support to retain apprentices and trainees with 50% of the apprentices or trainees wage up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).
- Loan repayments on qualifying business loans will be deferred for a period of up to six months
For businesses in Western Australia:
- A one off grant of $17,500 for groups of employers whose annual Australian Taxable wages exceed $1 million but are less than $4 million.
- A payroll tax deferral for businesses that pay less than $7.5million in Australian Taxable wages where their turnover is impacted directly or indirectly by COVID-19.
- An increase in the payroll tax threshold to $1 million up from $950,000 effective 1 July 2020.
Further the Australian Taxation Office will offer assistance to businesses impacted by COVID-19 by:
- Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise
- Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to
- Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters
- Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities
- Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
Employers will still need to meet their ongoing super guarantee obligations for their employees.
At PKF Perth we are here to help you navigate through this unprecedented situation. We have implemented policies consistent with Government recommendations. We have infrastructure in place to enable staff to work from home and are currently doing so on a 50/50 basis. We are open for business and here to support our valued clients.
We are in this together, we will make it through the other side.
Please contact your relationship partner to assist in accessing these measures on (08) 9426 8999.