Help for businesses and employers
Job Keeper Payment
Pays business/employer up to $1,500 per fortnight while Covid-19 impacting business:
- This applies to most businesses – subject to detailed conditions
- That have experienced a downturn in turnover due to Covid-19
- Eligible businesses must register for this payment
- Further detail at https://www.ato.gov.au/General/JobKeeper-Payment/
Boosting Cashflow for Employers
Pays tax-free cash boosts of between $20k and $100k
Applies automatically to qualifying businesses who employ staff when they lodge their BAS or PAYG AS returns
Qualifying businesses:
- Aggregated turnover <$50m
- ABN held on 12 March 2020
- You are liable to withhold PAYG from payments to employees
- You lodged either a BAS for any period starting on or after 1 July 2018 and ending before 12 March 2020 or your 2018-19 IT Return before 12 March 2020 (note extensions will be allowed for clients part of a lodgement program)
The cashflow boost is equivalent to the amount of PAYG withheld from wages for March 2020 to June 2020, subject to a cap
There will be a second cashflow boost – equivalent to the amount paid for March 2020 to June 2020, credited automatically when the June to September 2020 BAS/AS are lodged
Further detail at https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/
Increasing the Instant Assets Write-Off
From 12 March 2020 to 30 June 2020 the instant asset write-off will be extended to allow instant write-offs of business assets valued up to $150k purchased by businesses with aggregated turnover of up to $500m
From 1 July 2020 it will revert back to purchases of up to $1,000 and only for businesses with aggregated turnover of up to $10m
Backing Business Investment
Accelerated depreciation for businesses with aggregated turnover of less than $500m for assets acquired and first used in the business from 12 March 2020 to 30 June 2021
Help for employees and individuals
JobKeeper Payment
This pays money to business/employer while Covid-19 impacting business but your employer must notify you if they intend to claim this in relation to you
Early-release of Superannuation
From 20 April individuals can apply online through their MyGov accounts to release up to $10,000 from their superannuation before 1 July 2020
A further up to $10,000 can be released from 1 July 2020 to 24 Sept 2020
The payments so released will not be taxable or taken into account for any income/means test
It is strongly recommended that you speak to your financial adviser before considering withdrawing funds from your superannuation fund. It seems wise to regard early release as a last resort.
Reducing Superannuation Minimum DrawDown Rates
Given the recent significant losses in the financial markets and to avoid pensioners having to sell superannuation assets at a loss in order to be able to satisfy minimum pension requirements – the annual minimum drawdown rates have been reduced by 50% for 2019-20 and 2020-21
Simplified Working from Home Expenses
From 1 March 2020 to 30 June 2020 individuals working from home will be able to claim a standard 80 cents per hour deduction for working from home running costs instead of one of the existing methods for claiming such costs