COVID-19 update:

Our offices are closed but most of our team are available to help you and your business. Free access to information that we have established for our own business or clients.

Coronavirus - Australia

Economic Support in Australia

Government schemes provide grant to businesses employing staff and allow draw down of superannuation for individuals.

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