ASB MAGAZINE: We’ve been contacted by many surf retailers asking what can be done and what is being done for them as the Coved-19 situation continues to evolve on a daily basis. Today, we’ve announced a FREE hotline for retailers and instructional YouTube links in partnership with The Retail Doctor Group. Read that article HERE
Beyond that there is a lot of information regarding financial assistance for small to medium businesses (SME’s) but not necessarily found in one place. The Federal Government have, to date, announced two stimulus packages and with that in mind, we have provided you with a brief and up-to-date rundown of the benefits for individuals and small to medium sized businesses. Please note that this list is not exhaustive, and we have provided links to the Treasury website, so you can double check all information and keep abreast of developments.
At this time, the advice on the relief packages is that may be automatically paid to those who are eligible. You WILL NOT need to pay any money, provide bank details, or give any information to people who call you. At a time like this, it is common for scammers to come out of the woodwork. Please do not engage with anyone who cold-calls you. If you are unsure whether you are eligible for relief, or are suspicious of someone asking for personal details of payment of debts, please hang up on them. Exercise caution at this time.
These are the current relief packages, as we understand them to be at March 23. Please seek your own independent advice or call the Government hotline. The best place to verify the current offers is below.
FOR SMALL TO MEDIUM BUSINESS (SME’s)
- Businesses with turnover of less than $50M who employ workers will be eligible for the “Boosting Cash Flow for Employers Package”. All employers will receive a minimum payment of $10,000 [increased from the initial $2,000 announced last week] and the maximum is calculated as 100% of the PAYG withholding withheld from employee wages up to a maximum of $50,000. The amount is calculated on PAYG withheld between January and June 2020 and calculation varies depending on how often you lodge your activity statements.
- An additional payment is being introduced for the July – October 2020 period. This amount will be exactly the same as the original amount received by the business. This effectively doubles the amount received to a minimum of $20,000 and a maximum of $100,000
- The Victorian Government has announced that SME’s with a yearly payroll of less than $3M, will be provided with 12 months Payroll Tax relief. Businesses that currently pay payroll tax [ie, businesses with payroll, including superannuation, of greater than $54,166 per month] will receive a refund to their bank account of any payroll tax paid for the period 1 July 2019 to 29 February 2020. In addition, there will be no further payroll tax payable up to 30 June 2020. The Victorian Government advises that refunds will be able to be accessed by 27 March 2020
- There are also measures to temporarily assist businesses in financial distress.
- Instant asset write-off is increased from $30,000 to $150,000 for those of you who are not concerned about cash-flow and view this as a good time to invest in assets for your business.
- Wage subsidies are available for up to 50% of an apprentice or trainee’s wage for the nine months from 1 January to 30 September 2020. Employers will be reimbursed to a maximum of $7,000 per quarter per apprentice/trainee.
SUPPORT FOR CASH FLOW NEEDS FOR SMALL TO MEDIUM BUSINESSES
- The Federal Government will provide a guarantee of up to 50% of loans made to SME’s
- Lenders will be provided with a temporary exemption from the responsible lending obligations to provide loans to existing small business clients to enable faster approval and provision of loans to SME’s.
INDIVIDUALS + HOUSEHOLDS
- Income support payments and coronavirus supplements to existing and new recipients of some Centrelink payments. There will also be streamlined application for Centrelink benefits and reduced waiting times for payments.
- Two separate payments to recipients of social security, veteran and other support payments from Centrelink. These are due to be paid as $750 on 31 March 2020 and $750 on 13 July 2020.
- Temporary early release of superannuation amounts up to $10,000 for the financial year 2019-20 and again for the financial year 2020-21. There will be no tax payable on the amounts withdrawn and they will also not effect Centrelink or Veterans’ Affairs payments.
- Temporary reduction in superannuation minimum drawdown amounts for those receiving a pension from their super fund.
- Reduced Centrelink deeming rates to support retirees.
For the current information. Please refer to the Federal Treasury website: https://treasury.gov.au