On Sunday 22 March the Government released a second stimulus package to help individuals and business get through the Coronavirus crisis. As per the previous stimulus package announcement, more information is coming to hand as we write this but these are the key points we know so far.
CASH AND LOAN SUPPORT FOR BUSINESSES
At this stage we are not aware of the eligibility being any different to the announcement of the first stimulus a week ago being, companies including not-for-profits with annual turnover of up to $50m and paid wages between 1 January 2020 and 30 June 2020.
Timing and how will payments be made:
The payments will be made through the ATO system and paid directly into the bank account you have registered with the ATO. These payments will be linked to the Pay As You Go (PAYG) Withheld reported in your BAS starting from the lodgement of your March 2020 BAS.
There is an increase in the payment amount offered in the first stimulus being:
- 100% of PAYG Withheld from employee wages (up from 50%)
- Minimum payment available to employers is now $20,000 (up from $2,000) with $10,000 being paid in the April to June 2020 period (lodgment of of March 2020 BAS) and $10,000 being paid in the July to October 2020 period (lodgement of June and September 2020 BAS)
- Maximum payment available to employers is now $100,000 (up from $25,000) with $50,000 being paid in the April to June 2020 period (lodgment of of March 2020 BAS) and $50,000 being paid in the July to October 2020 period (lodgement of June and September 2020 BAS)
- The ATO will make these payment by way of a credit to your Business Activity Statements
GOVERNMENT GUARANTEED LOANS
- Federal Government is offering businesses unsecured loans of up to $250,000 for a term of up to three years through your lender.
- Loans will be repayment free for six months and 50% guaranteed by the government.
INSOLVENCY MEASURES BEING RELAXED
- The outstanding amounts limits will be increased from $2,000 to $20,000
- Timing to respond will be six months instead of 21 days.
- Relief for Directors over the next six months whilst trading insolvent
ASSISTANCE FOR INDIVIDUALS
- A range of extra payments available including an extra $750 for Jobseeker allowance on top of the $750 originally offered.
- Support to Casuals and Sole Traders of an extra $550 a fortnight for the next 6 months
VICTORIAN GOVERNMENT ECONOMIC SURVIVAL PACKAGE
- Payroll tax waived – Payroll tax waived in the 2020 financial year for eligible businesses with taxable wages up to $3 million
- Payroll tax deferrals – The same eligible businesses will also be able to defer any payroll tax for the first three months of the 2021 financial year until 1 January 2021
- Commercial rent relief – Commercial tenants in government buildings can apply for rent relief
- Land tax payment deferral – 2020 land tax payments will be deferred for eligible small businesses
- Liquor licensing fees – 2020 renewable liquor licence fees waived
- $500m Business Support Fund – The fund will support the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail
- $500m Working for Victoria Fund – The fund will help workers who have lost their jobs find new opportunities, including work cleaning public infrastructure or delivering food – providing vital contributions to our state’s response to the pandemic and affording those Victorians security when its needed most
All of the above is what we know at the moment. As usual please feel free to contact us to discuss your individual situation and for further advice on the above.