COVID-19 Quick Guide for Small Businesses and Sole Traders - What are you entitled to?
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COVID-19 Quick Guide for Small Businesses and Sole Traders What are you entitled to? April 2020 minterellison.com
COVID-19 Quick Guide for Employers: What are small business entitled to?
ELIGIBILITY CRITERIA BENEFIT HOW TO APPLY
✓ Businesses with payrolls of < Payroll tax discount of 25% for No payroll tax payment required for March,
$10 million in 2019/20 2019/20 April or May 2020. When lodging your
annual reconciliation for payroll tax, you
must include wage details paid year to
date. If you have paid more than 75% of
your owing payroll tax, you will receive a
refund.
PAYROLL TAX WAIVER
(NSW only) https://www.revenue.nsw.gov.au/taxes-
duties-levies-royalties/payroll-tax
✓ Businesses or NFPs with annual A payment equal to 100% of salary You don't need to do anything. Payment will
turnover and wages withheld for your be delivered as a credit by the ATO when
< $50 million employees of up to $50,000 per you lodge your business or instalment
✓ Has made payments for salary employer for January to March 2020. activity statement.
and wages Eligible employers will receive a (First payment is made on 28 April
✓ Held an ABN on 12 March 2020 minimum payment of $10,000, even if irrespective of whether you lodge monthly
and continues to be active you do not withhold tax. or quarterly).
An additional equal payment will be For charities, payment will be delivered
made to employers in July to October through credits in the activity statement
CASH FLOW SUPPORT 2020. For NFPs that are not income system. If the credit places you in a refund
(All States and Territories) tax exempt, the payments will be position, the ATO will deliver the refund
treated as tax free. within 14 days.
A wage subsidy of 50% up to a Register now with an Australian
✓ Businesses with less than 20 maximum of $21,000 per eligible Apprenticeship Support Network.
employees apprentice or trainee.
https://www.australianapprenticeships.go
✓ Businesses who retain an
v.au/aus-employer-incentives
apprentice or trainee who was in
training on 1 March 2020
✓ Businesses of any size that re-
APPRENTICE / TRAINEE engages an apprentice or
WAGE SUBSIDY trainee
(All States and Territories)
ADDITIONAL RESOURCES
• https://business.gov.au/risk-management/emergency-management/coronavirus- • https://treasury.gov.au/
information-and-support-for-business • https://www.headsup.org.au/your-mental-health/work-and-your-mental-health-
• https://www.smallbusiness.nsw.gov.au/get-help/covid-19-coronavirus-information- during-the-coronavirus-outbreak
small-business-owners
This communication was prepared by MinterEllison for information only. This is not intended to be legal advice. If you have specific legal questions, you should seek independent legal advice from a lawyer. We cannot
guarantee that this information is error free or completely current. We recommend following up directly with the relevant department to find out additional information. MinterEllison | 2
COVID-19 Quick Guide for Employees and Sole Traders: Income support
ELIGIBILITY CRITERIA BENEFIT HOW TO APPLY
✓ A permanent employee, sole Expanded access to income support If you already receive income support
trader, self-employed or casual payments and a supplement of $550 payments no need to call or visit – your
worker who is stood down or has per fortnight, commencing 27 April payment will be increased automatically.
lost their employment/income 2020.
Otherwise, go online to your MyGov
and is not accessing employer
account to start your claim. If you do not
entitlements (eg any paid leave)
have a Customer Reference Number
or receiving income protection
(CRN) you will need to register your intent
insurance.
to claim and Centrelink will contact you to
do an identity check on the phone and
provide you with your CRN.
JOBSEEKER PAYMENT
Further information, including a step by step
(All States and Territories)
video on submitting your claim:
https://www.servicesaustralia.gov.au/indi
viduals/subjects/affected-coronavirus-
covid-19/if-you-need-payment-
coronavirus-covid-19
✓ You are currently unemployed Access up to $10,000 of your Apply via your myGov account. The ATO
superannuation before 1 July 2020 will review your application and if
✓ You are currently eligible to
and a further $10,000 from 1 July successful, the ATO will notify your
receive income support payment
2020 until 24 September 2020. superannuation fund to release the funds to
from the government;
you.
Any amount released as a lump sum
✓ You have been made redundant
is not taxable income and will not be It is important that you ensure your
or had your working hours
taken into account under any income superannuation fund details are correct.
reduced by at least 20% on or
or means tests.
after 1 January 2020
Further information:
EARLY ACCESS ✓ If a sole trader, had your https://www.ato.gov.au/Individuals/Super/
TO YOUR SUPER business suspended or a 20% Withdrawing-and-using-your-super/Early-
(All States and Territories) reduction in your turnover on or access-to-your-super/
after 1 January 2020.
ADDITIONAL RESOURCES
• https://business.gov.au/risk-management/emergency-management/coronavirus- • https://treasury.gov.au/
information-and-support-for-business • https://www.headsup.org.au/your-mental-health/work-and-your-mental-health-
• https://www.smallbusiness.nsw.gov.au/get-help/covid-19-coronavirus-information- during-the-coronavirus-outbreak
small-business-owners
This communication was prepared by MinterEllison for information only. This is not intended to be legal advice. If you have specific legal questions, you should seek independent legal advice from a lawyer. We cannot guarantee
that this information is error free or completely current. We recommend following up directly with the relevant department to find out additional information.
MinterEllison | 3
COVID-19 Quick Guide for Employers: Who is eligible for JobKeeper payments?
ELIGIBILITY CRITERIA BENEFIT HOW TO APPLY
✓ An employer or sole trader of a business with A wage subsidy of $1,500 per fortnight per • Businesses need to enrol via the ATO website
turnover of < $1 billion which has fallen by more employee or sole trader from 30 March 2020 for 6 no later than 31 May 2020 to claim for the
than 30% compared to last year, for at least a months. The wage subsidy will be paid as a fortnights in April and May.
month. reimbursement by the ATO, starting from May.
• If you wish to claim JobKeeper for the first two
✓ A charity registered with the ACNC with Conditions fortnights (30 March – 12 April and 13 April –
turnover of < $1 billion and an estimated 26 April), you will need to pay your employees
• The payment is a flat rate of $1,500 regardless of
reduction in turnover of 15% compared to the by 8 May 2020.
the employee's earnings or hours
previous year, with recent changes allowing https://www.ato.gov.au/general/gen/JobKeep
charities to exclude government revenue for the • Employers must ensure eligible employees er-payment/
turnover test (universities and non-government receive, at a minimum, $1,500 per fortnight
• As part of their application, employers need
schools that are registered charities are before tax
to include a nomination notice completed by
exempt).
• If an employee is paid more than $1,500 per each of their employees.
✓ An employee who is currently employed fortnight, the employer must top up the subsidy
Further information:
(including stood down or rehired) and was
employed by the employer at 1 March 2020 • If an employer can no longer afford to pay an
• Employer FAQs:
either full-time, part-time or a long-term casual; is employee at that level, the employee can
https://www.ato.gov.au/General/JobKeeper-
over 16 years of age; and an Australian citizen change their hours to align with the $1,500 a
Payment/In-detail/Employers--frequently-
or has a permanent visa. One payment only per fortnight subsidy (with at least three days notice)
asked-JobKeeper-questions/
employee. • An employer must make payments to eligible
• Employee FAQs:
✓ Long-term casual = casual employed on regular employees as per usual, and cannot wait until
https://www.ato.gov.au/General/JobKeeper-
and systematic basis for at least 12 months. the JobKeeper payment is received to make
Payment/In-detail/Employees--frequently-
payments to employees
asked-JobKeeper-questions/
• Sole Trader info:
https://www.ato.gov.au/General/JobKeeper-
Payment/In-detail/JobKeeper-guide---sole-
traders/
ADDITIONAL RESOURCES
• https://treasury.gov.au/coronavirus/jobkeeper
• https://www.asbfeo.gov.au/news/news-articles/covid-19-what-jobkeeper-payment-means-small-businesses
This communication was prepared by MinterEllison for information only. This is not intended to be legal advice. If you have specific legal questions, you should seek independent legal advice from a lawyer. We cannot guarantee
that this information is error free or completely current. We recommend following up directly with the relevant department to find out additional information. MinterEllison | 4COVID-19 Quick Guide for Small Businesses: Support snapshot
ELIGIBILITY CRITERIA BENEFIT HOW TO APPLY
✓ Between 1 and 19 employees and a turnover of more A grant of up to $10,000 to be used to fund Apply for the grant via ServiceNSW. The application is
than $75,000 unavoidable business costs such as utilities, expected to be available within two weeks and will
overheads, legal costs and financial advice close on 1 June 2020.
✓ Payroll below the 2019-20 tax threshold of $900,000
https://www.service.nsw.gov.au/transaction/apply-
✓ An ABN as at 1 March 2020, be based in NSW and small-business-covid-19-support-grant
employ staff at 1 March 2020
✓ Been highly impacted by the COVID-19 Restrictions on
SMALL BUSINESS GRANTS
Gathering and Movement Order 2020.
(NSW only)
✓ Have experienced at least a 75% decline in turnover
compared to same two-week period in 2019
✓ Low interest rate loans to SMEs, including sole traders The Federal Government will provide a You don't need to do anything except apply for a loan.
and not-for-profits, with a turnover of up to $50 million guarantee of 50% to SME lenders in connection https://treasury.gov.au/coronavirus/sme-guarantee-
with working capital loans unsecured for up to scheme
$250,000.
LOAN GUARANTEE
(All States and Territories)
OTHER SUPPORT
Electricity and gas network relief package Australian banks small business relief package Commercial tenant rent relief
Energy Networks Australia announced small businesses that are temporarily Australian banks are offering existing small business customers the Rental relief will operate through a Code of Conduct ensuring landlords will not
closed due to COVID-19 may be eligible for full electricity and gas tariff relief option to defer loan repayments for 6 months, along with other be able to terminate leases for non-payment or rent and must offer
under a financial support package. Further information, including participating assistance which may include fees waived, loans restructured and proportionate reductions in rent (by waiver or deferral) based on the tenant’s
providers: https://www.energynetworks.com.au/news/media-releases/2020- further credit. Contact your bank to discuss deferring your options. reduction in business. Further information:
media-releases/energy-network-relief-package-announced/ Further information, including participating providers: https://www.asbfeo.gov.au/news/news-articles/covid-19-mandatory-
https://www.ausbanking.org.au/campaigns/financial-hardship/ commercial-tenancy-code and https://www.tenants.org.au/blog/renting-
and-covid-19-information
Fees waived Community Support Package City of Sydney
The NSW State government will waive a range of fees and charges for small The government will provide a $200 million support package to support The City of Sydney council announced a range of measures including a small
businesses including bars, cafes, restaurants and tradies. These details are charities who provide emergency food and relief services, as demand business grants program, a concierge service for small businesses and sole
still being finalised and will be published on these websites when it is available: for these services will be heightened due to COVID-19. Further traders to advise on the type of support available eg waiving of footway dining,
https://www.fairtrading.nsw.gov.au/ https://www.safework.nsw.gov.au/ information: https://www.pm.gov.au/media/11-billion-support-more- market permit and filming fees, flexible approach to parking and other
https://www.liquorandgaming.nsw.gov.au/ https://www.service.nsw.gov.au/ mental-health-medicare-and-domestic-violence-services-0 infringements. Further information:
https://news.cityofsydney.nsw.gov.au/announcements/covid-19-support-
for-business
This communication was prepared by MinterEllison for information only. This is not intended to be legal advice. If you have specific legal questions, you should seek independent legal advice from a lawyer. We cannot guarantee that this
information is error free or completely current. We recommend following up directly with the relevant department to find out additional information. MinterEllison | 5You can also read
