Dear valued clients,
As you know, on 23 March, 2020, Parliament passed two packages worth $17.6 billion and $66 billion in response to the economic consequences outbreak of the COVID-19 virus.
Fact Sheets and Package Details
A Fact Sheet outlining the First “Coronavirus Economic Rescue Package” can be found here – https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Assistance_for_households.pdf
Details of Treasury’s Second “Coronavirus Economic Response Package” can be found here – https://treasury.gov.au/coronavirus
A link to the Australian Government’s Business website can be found here – https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business
Sole Traders, Self-employed, Permanent, Casual, Contractors.
The key distinguishing feature is for those who employ staff/workers. For my many clients who are sole traders and do not employ staff/workers, the Government has established a new $550 fortnightly coronavirus supplement payment. Sole Traders, the self-employed, permanent employees who are stood down or lose their employment, casual workers and contract workers will be able to access the above coronavirus supplement payment under expanded access to the Job Seeker allowance via MyGov. Payments are set to commence from 27 April, 2020.
As an aside, the Government made a last-minute decision to include students on youth allowance, Austudy and Abstudy in the package thus allowing them to get their welfare payments boosted by $550 a fortnight along with those receiving Jobseeker, youth allowance, parenting and special benefit payment.
Small Businesses
For my Business clients who employ staff/workers, the stimulus payments will be made upon you lodging your upcoming BASs. Those eligible businesses will receive a minimum payment of $10,000 (max $50,000) when they lodge their BAS for Q3 (Jan-Mar 2020) plus $5,000 (max $25,000) when they lodge their BAS for Q4 (Apr-Jun 2020) and a further $5,000 (max $25,000) when they lodge their BAS for Q1 2020-2021 – (Jul-Sep 2020).
An article by Peter Switzer best describes this with an example and this can be found here – https://switzer.com.au/the-experts/peter-switzer/scomo-and-josh-take-on-covid-19/?utm_source=newsletter&utm_medium=email&utm_campaign=20200323
Access to Superannuation
Employees who have either been made redundant or incurred reduced working hours of 20% or more, plus Sole Traders whose business have been suspended or incurred a reduction in turnover of 20% or more, will be able to apply online through MyGov to access up to $10,000 of their Super before 1 July, 2020 and up to a further $10,000 after 1 July, 2020 but only up to 30 September, 2020.
Conclusion
If you have any questions, please get in touch, ideally during business hours, to discuss. The office is ostensibly closed to face-to-face meetings as all communication during the COVID-19 period is either via telephone 1300-141796 or via email.
It is difficult to get definitive answers in relation to the above at the current time so please note, this information is to the best of my knowledge at the time of sending.
Kind regards,
Wayne Maber