Federal Stimulus

Boosting cash flow for employers

This package is aimed solely at employers and is based on the PAYGW generally paid as part of your BAS or IAS. The payment comes in two stages, the first being instant relief of PAYGW for the March and June quarters(up to a maximum of $50,000) and the second being an additional payment sen tout as part of your June and September BAS which will each be 50% of your original payout.

For example I you were to withhold the following amounts in the March and June quarters here is what you would receive:

There is no need to apply for this one as the ATO will automatically apply the package once you have lodged your BAS. In order to qualify for the additional payments, you will need to still be trading.

It is also important to keep in mind that the ATO will be looking at entities that lodge BAS during these periods that have substantially different wage figures so it’s important not to go over the top trying to maximise your stimulus payouts.

Support for employers of apprentices

The government is offering a wage subsidy of 50% of apprentice wages for 9 months being backdated to January and running through to September for employers with less than 20 full-time employees or employers with more than 20 full-time employees that are taking on an apprentice let go from a smaller employer (this will be evaluated in September and extended if need be).The maximum payout will be $21,000 and applications will begin around the beginning of April.

Trainees and apprentices fall under this scheme so if you employ staff under a traineeship you may be eligible to apply for these wage subsidies. In order to qualify the apprentice had to have been employed by you prior to March 2020.

Eligibility for this stimulus package will be assessed by an Australian Apprenticeship Support Network (AASN) provider and it is recommended that entities that think they may be eligible should contact one from the list in their area to check availability and for more information

https://www.australianapprenticeships.gov.au/search-aasn

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Increase to instant asset write-off thresholds

Assets under $150,000 (excluding GST) in value can now be completely expensed in the year they are purchased instead of depreciated at 15% for the first year and 30% going forward. This will continue through to the 30/06/2020 when the instant write-off thresholds will return to $1000.

In order to qualify the equipment needs to be installed and ready to use by the 30/06/2020, otherwise the lower limit of $1000 will apply.

Unsecured 3-year loans

The federal government in partnership with the major banks are offering unsecured 3-year loans up to $250,000 to small and medium businesses.

These will be 50% guaranteed by the federal government and will be offered at a 4% discount compared to current unsecured small business loan rates. There will also be a 6-month payment free option for some providers, with the 6 months of payments then being capitalised at the end of the 6-month period.

To apply for these loans, you will need to consult with your bank of choice. We advise if you are considering taking on one of these loans to talk to us first so we can evaluate if this will be the best solution for you

QLD Government Stimulus Packages

Payroll tax refunds and freeze

For employers with excess of $25,000 in wages a week the Queensland government has announced relief in the form of Payroll tax refunds and a holiday from future payments.

Small to medium size businesses (up to annual payroll of$6.5 million) will be eligible for a refund of the past two months of payroll tax payments and will not be required to pay the next three months of payroll tax with deferrals available for the remainder of the year.

Large businesses will also be eligible for the refund however will not be eligible for the 3-month tax free period but instead may defer their payments for the remainder of the year. To apply for either are fund or a deferral you will need to lodge an application online using the following forms;

Payroll Tax Refund/Holiday Application

Payroll Tax Deferral Application

A deadline for application of the Payroll Tax Refund/Holiday has been set at 31/05/2020.

 Rebates on electricity

A rebate of $500 is available to small and medium sized business that consume less than 100,000 kilowatt hours per annum. These rebates will automatically be applied to electricity bills and there is no need to apply.

Relief for businesses renting government premises

Businesses renting a government premises will be able to apply for rental relief during the evolving Covid 19 crisis. Details of this scheme are still outstanding, but we recommend if you are leasing a government premises to talk to your landlord about these relief measures.

There are rumours the government is looking to roll out a blanket rent relief but they have not announced anything at this point in time.

Loan facilities to help with payroll

The QLD government are offering loans up to $250,000 interest and payment free for 12 months with an additional 2 years of interest only payments. These loans will be 10 year fixed term loans with a fixed interest rate of 2.5%.

Applications are now open for these loans and to apply you will need the following information at a minimum;

·        Financial statements for both 17/18 and 18/19 financial years

·        Personal tax returns for all associated individuals for 17/18 and 18/19 financial years

·        Bank account information including most recent statements showing balances for business loans and credit cards (may also use balances from internet banking)

·        ATO Integrated Client Account statement for the 12 months prior to application for the applicant, associates and all associated entitites

·        Aged list of debtors and creditors at time of application

·        Two of either Australian Drivers Licence,Australian Passport or Medicare Card for the applicant (or representative of applicant for businesses and trusts)

·        Organisation Constitution or Rules of Association and Certificate of Incorporation if applicable

·        Trust deed if applicable

Applications can be made at https://applyonline.qrida.qld.gov.au/login however we advise if you are considering taking on one of these loans to talk to us first so we can evaluate if this will be the best solution for you.

As this is an evolving issue with updates now occurring every other day, we imagine these packages will likely change. We will be keeping on top of the latest information and aim to keep you all informed as things progress.

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