ASSISTANCE AVAILABLE TO SMALL BUSINESSES - Australian Small Business ...
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Senator the Hon Michaelia Cash
MINISTER FOR EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS
SENATOR FOR WESTERN AUSTRALIA
27 March 2020
ASSISTANCE AVAILABLE TO SMALL BUSINESSES
(As at 1.00pm AEST 27 March 2020)
These are extraordinary times for all Australians. The coronavirus is having a devastating
impact on Australian jobs and small businesses.
The Morrison Government is acting to cushion the blow from the coronavirus for businesses
and households to help them get through to the other side of this crisis as the world deals with
the significant challenges posed by its spread.
For the latest information on the Coronavirus, please visit australia.gov.au. This site will
link you to the up-to-date news, updates and advice from Australian Government Agencies.
Below I have set out a summary of the measures available to small businesses and sole
traders under the $189 billion economic support package announced by the Prime Minister.
I have also included in the table at the end of this letter the measures announced by each State
and Territory Government in response to the coronavirus crisis to assist you and your
stakeholders in finding the right support.
Helpline available
The Morrison Government’s Business Hotline - 13 28 46 – has been expanded to provide
specialist advisers and extended hours to support small and medium businesses impacted by
the COVID-19 pandemic. You can also send an email.
The Hotline operates seven days per week, and provide an additional two hours a day of
support outside standard operating hours for the first month, answering calls from 7.00am to
11.00pm AEST.
During these challenging times businesses that have been impacted by COVID-19 need readily
available access to advice so they can fully understand the assistance available to them and
their employees.
Assistance for Sole Traders
The Government also recognises a significant number of sole traders and Australians who are
self-employed have had their income reduced as a result of the COVID-19.
The Government is temporarily expanding eligibility to income support payments and
establishing a new, Coronavirus supplement to be paid at a rate of $550 per fortnight. Thissupplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months. Some sole traders may apply for income support to supplement their income. To ensure they can keep focusing on their business, sole traders and the self-employed will be able to meet their mutual obligations by continuing to run, operate and diversify their businesses over the next six months. Sole traders who have a reduction in their turnover of 20 per cent or more will be able to access up to $10,000 of their superannuation before 1 July 2020 and a further $10,000 after 1 July 2020. We are making sure that sole traders and the self-employed have maximum flexibility to keep their doors open in these extraordinary circumstances. To view the media release in full, please click here. For further information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet- Support_for_sole_traders.pdf Early release of superannuation The Government will allow individuals in financial stress as a result of the COVID-19 to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. The withdrawals will be tax free. Individuals wishing to apply for early release of their superannuation will be able to do so from mid-April 2020. Applications can be made to the myGov website: www.my.gov.au. For further information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet- Early_Access_to_Super_1.pdf Boosting Cash Flow for Employers Tax free payments of up to $100,000 will be made to eligible businesses with a turnover of under $50 million, to provide temporary cash flow support to businesses that employ staff. This will work by giving eligible businesses that withhold tax to the ATO on their employees’ salary and wages a payment equal to 100 per cent of the amount withheld. Eligible businesses that pay salary and wages will receive a minimum payment of $20,000. Payments will be made automatically on lodgement of activity statements. This measure will benefit around 690,000 businesses employing around 7.8 million people. For further information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet- Cash_flow_assistance_for_businesses_0.pdf $1.3 billion measure Supporting Apprentices and Trainees Employers of apprentices and trainees who employ less than 20 full-time staff can apply for a wage subsidy of 50 per cent, of up to $7,000 per quarter, for each trainee or apprentice they employ. This applies to trainee and apprentice wages paid for the period from 1 January 2020 to 30 September 2020 up to a maximum of $21,000 per eligible apprentice or trainee.
This will support up to 70,000 small businesses and around 117,000 apprentices.
Supporting Small Business to Get to the Other Side with Loans
The Government has announced a new Coronavirus Guarantee Scheme to support small and
medium businesses with a turnover less than $50 million.
This measure compliments the $8 billion worth of measures the banks announced last week
to defer loan repayments for six months for small and medium businesses battling the impacts
of coronavirus. Small businesses should contact their bank to apply.
Details
Under the Scheme, the Commonwealth will guarantee 50%, through the participating banks,
of an eligible loan to small and medium enterprise customers that have been impacted by the
coronavirus.
The Scheme will have the capacity to support lending of $40 billion to small and
medium businesses.
Loans will be used for working capital purposes and be unsecured and it will be for loans
granted within 6 months starting 1 April 2020.
The Scheme will apply to new or existing customers of banks and non-bank lenders.
Lenders will not be charged a fee for accessing the Scheme.
It will be repayment free for 6 months.
The maximum loan will be $250,000 for a term up to 3 years.
It will not apply to re-financing of existing customers. Those already have existing loans
that will benefit from the ABA announcement.
Through this measure, the Government is offering to guarantee $20 billion.
The Government’s announcement of the Scheme follows the announcement by the
Government on 19 March 2020, together with the Reserve Bank, to inject more than $100
billion into the Australia’s financial system. Please click here for the Government’s release
and here for the Reserve Bank’s release.
For further information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-
Supporting_the_flow_of_credit_1.pdf
Australian Taxation Office (ATO) Support
The ATO has set up an Emergency Support Infoline - 1800 806 218. The Infoline provides
tailored advice to support small business who may be having difficulties meeting their tax
and super obligations.
Small businesses can contact the ATO to defer some payments and vary instalments that are
due. These include income tax, activity statement, pay as you go (PAYG) instalments, FBT
and excise payments by up to six months.
Sole traders and self-employed Australians who are PAYG instalments payers, may vary
their PAYG instalments on their activity statement. They may do this by lodging a revised
activity statement before the instalment is due and before the tax return for the year is lodged.
Sole traders and self-employed Australians who vary their PAYG instalment rate or amount
can also claim a refund for any instalments made during the 2019–20 financial year.Where PAYG instalments are varied, the ATO won't apply penalties or charge interest to
varied instalments for the 2019–20 financial year and if a mistake is made in working out the
PAYG instalment, the sole trader and self-employed Australian may correct it by lodging a
revised activity statement or varying a subsequent instalment.
For more information: https://www.ato.gov.au/Individuals/Dealing-with-disasters/In-
detail/Specific-disasters/COVID-19/
Increasing the Instant Asset Write-Off
We are increasing the instant asset write off threshold from $30,000 to $150,000, and
expanding access to businesses with aggregated annual turnover of less than $500 million
until 30 June 2020.
For further information: https://treasury.gov.au/sites/default/files/2020-03/Fact_Sheet-
Delivering_support_for_business_investment.pdf
Backing Business Investment
Businesses with a turnover of less than $500 million can, until 30 June 2021, deduct 50 per
cent of the cost of an eligible asset on installation, with existing depreciation rules applying to
the balance of the asset’s cost.
Support for Coronavirus affected regions and communities
An initial $1 billion has been allocated to support those regions and communities that have
been disproportionately affected by the economic impacts of the Coronavirus, including those
heavily reliant on industries such as tourism, agriculture and education.
The $1 billion will be provided through existing or newly established Government programs.
For further information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-
Assistance_for_severely_affected_regions_and_sectors.pdf
These measures reflect our collective determination to do what it takes to support Australian
jobs and Australian businesses as we work together through this complex and rapidly
evolving challenge.
Sincerely
Senator the Hon Michaelia Cash
MINISTER FOR EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS
SENATOR FOR WESTERN AUSTRALIA
COVID-19 Relief State and TerritoryJurisdictio
Key Measures Link
n
$137 Million stimulus
package – will target
vulnerable households
and small businesses
$622 credit to
commercial rates bill
$750 rebate to
small businesses
through their next
electricity bill
Businesses with
a turnover of up to
$10 Million will be
able to defer payroll
tax for 12 months
Affected
industries will https://apps.treasury.act.gov.au/budget/covid
ACT receive a one-off six -19-economic-survival-package
month waiver on
payroll tax
Taxi and
rideshare fees
waived
Food and liquor
licence fees waived
$20 Million fund
for simple
infrastructure works
on public buildings
Funding for
clubs to retain casual
staff
Public sector
staff in events orentertainment
redeployed to
maintenance works
Community
$500,000 in arts
grant funding
brought forward
$7 Million
package for non-
government
organisations to
meet increased
demand for social
services
$6.36 Billion health
boost and economic
stimulus
$4 Billion in
deferral of
payroll tax for
business with
payrolls over $10
New South million for six
Wales months
$1 Billion
Working for https://preview.nsw.gov.au/covid-19
NSW fund to
sustain business,
create new jobs
and retrain
employees
including $250
million to employ
additional
cleaners of public
infrastructure.
$500 Million to
bring forwardcapital works and
maintenance.
$450 Million for
the waiver of
payroll tax for
businesses with
payrolls of up to
$10 million for
three months (the
rest of 2019-20).
More than $250
Million to bring
forward
maintenance on
public assets.
Payroll tax cuts
by raising the
threshold limit to
$1 Million.
$80 Million to
waive a range of
fees and charges
for small
businesses.
$34 Million
boost in funding
to prevent
homelessness.
$30 Million to
boost the Energy
Accounts
Payments
Assistance
scheme.
$10 Million to
support charities. $6 Million
additional
funding for
Lifeline’s
operations in
NSW.
Deferral of
gaming tax for
clubs, pubs and
hotels, and
lotteries tax for
six months,
conditional on
these funds being
used to retain
staff.
Deferral of the
parking space
levy for six
months.
Deferral of rents
for six months for
commercial
tenants with less
than 20
employees in all
Government-
owned properties.
$60 Million stimulus
package to support
Territorians
$30 Million
Home https://coronavirus.nt.gov.au/
Improvement
Northern Scheme - $6000
Territory grant for
Territory
homeowners andlandlords who
also contribute
$2000, and a
$4000 grant with
a $1000
contribution.
$20 Million
Business
Improvement
Scheme. All
eligible
businesses will
receive a $10,000
grant. If the
recipient also
wants to put in
their own
$10,000, they
will then get an
additional
$10,000 from the
Government
($30,000 in
total).
$5 Million
Business
Structural
Adjustment
package to assist
businesses who
need to
physically adjust
to the 100 person
rule or to
establish or
upgrade their
online presence
to adjust to
changingbehaviours of
consumption.
$5 Million
Immediate Works
Grants Package
reintroduces the
Immediate Works
Grant for
incorporated not-
for-profit and
community
organisations –
including clubs -
to undertake
repairs,
renovations and
upgrades to their
premises/facilitie
s
Freezing
Government Fees
and Charges and
Electricity Prices
$4 Billion stimulus
package to support
Queenslanders
$2.5 Billion for
workers and
industry,
Queensland $740 Million in https://www.qld.gov.au/
immediate
payroll tax
refunds,
A payroll tax
holiday and
deferral until the
end of 2020 foreligible
businesses,
A two-month
refund of payroll
tax, giving an
average of nearly
$9,000 cash,
A three-month
payroll tax
holiday, saving
an average of
$13,360,
No Queensland
business
impacted by
COVID-19 will
have to make a
payroll tax
payment this
year.
Up to $500
Million to assist
workers who lose
their job or
income with
retraining, job-
matching and
other help to
transition.
$1.2 Billion for
health to increase
the capacity of
Queensland's
health system to
confront COVID-
19.
$300 Million for
households$1 Billion stimulus
package to support
South Australians
$300 Million
Business and
Jobs Support
Fund
$250 Million
Community and
Jobs Fund
Payroll tax relief
Up to $60 million
$50 Million for
the Planning and
Development
Fund available
this year, up from
South $25 million
https://www.sa.gov.au/covid-19
Australia $30 Million for
Cost of Living
Concessions
$15 Million
investment in
upgrades at our
country hospitals.
$12 Million
skills package to
boost local jobs,
Supermarkets
granted 24-hour
weekday trade
option and
extended
weekends in
response to
Coronavirus. Waiver of liquor
licence fees for
2020-21 for those
hotels,
restaurants, cafes
and clubs forced
to close as a
result of new
social distancing
restrictions.
$420 Million support
package to keep
Tasmanians in jobs
$50 Million
allocated to fast
track
maintenance on
public buildings
over the next 12
months.
$20 Million in
interest free loans
to small
businesses in the https://coronavirus.tas.gov.au/
hospitality,
tourism, seafood
production, and
Tasmania exports sectors
with turnovers
less than $5
million.
Payroll tax
liabilities will be
waived for
hospitality,
tourism and
seafood industry
businesses for thelast four months
of 2019-20. Other
businesses with
payrolls of up to
$5 Million will
be able to apply,
based on the
impact of virus,
to have their
payroll tax
waived for April
to June 2020.
Improving small
business cash
flows by paying
bills sooner:
unless otherwise
required by
contractual
arrangements,
payment terms by
Government
agencies will be
reduced from 30
days to 14 days.
The targeted
Small Business
Grants Program
provides a $5,000
grant for
businesses that
hire an apprentice
or trainee in the
tourism,
hospitality,
building and
construction, and
manufacturing
industries. Youth
employment
Scheme to
provides a
payroll tax rebate
for one year, to
businesses that
employ a young
person aged 24
and under,
between April
and December
2020.
$80,000 will be
provided to the
Tasmanian
Chamber of
Commerce and
Industry (TCCI)
to provide
Human
Resources and
Industrial
Relations
assistance
associated with
the coronavirus
to businesses.
$1.7 Billion economic
survival and jobs
package for Victorians
The Government
will provide full
Victoria payroll tax https://www.vic.gov.au/coronavirusresponse
refunds for 2019-
20 financial year
to SMEs with
payroll of less
than $3 Million –giving $550
Million back to
businesses who
need it.
The Government
will pay all
outstanding
supplier invoices
within 5 business
days.
Commercial
tenants in
government
buildings can
apply for rent
relief; 2020 land
tax payments will
be deferred for
eligible small
businesses.
$500 Million to
establish a
Business Support
Fund supporting
the hardest hit
sectors, including
hospitality,
tourism,
accommodation,
arts and
entertainment,
and retail.
$500 Million
Working for
Victoria Fund to
help workers who
have lost theirjobs find new
opportunities.
$114 Million in
measures to support
WA small and
medium businesses
Small and
medium
businesses whose
annual Australian
Taxable Wages
are between $1
Million and $4
Million will
receive a one-off
grant of $17,500
to assist them to
manage the
impacts of
Western COVID-19. https://www.wa.gov.au/
Australia The payroll tax
threshold will be
increased to $1
Million from 1
July 2020, six
months earlier
than planned -
11,000 WA
businesses will
benefit from the
cut in payroll tax.
Small and
medium sized
businesses
affected by
COVID-19 can
apply to defer
payment of their2019-20 payroll tax until 21 July 2020. The deferral is available to employers who pay $7.5 Million or less in Australian Taxable Wages and have been directly or indirectly impacted by COVID-19, compared to normal operating conditions. Freezing Government Fees and Charges and Electricity Prices
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