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Irina Hollander & Associates Pty Ltd Chartered Accounts

COVID-19 Government Assistance Measures

The assistance payments are listed in the order of availability, starting with what is available immediately.

If you are a sole trader, a partnership or a trust paying distributions, a company paying dividends or director fees, you are eligible for:

• Apprentice’s and trainee’s wage subsidy

Available from: can apply now

Eligibility: you had a trainee or apprentice as at 1 March 2020 and you are planning to retain them

How to apply: https://business.gov.au/risk-management/emergency- management/coronavirus-information-and-support-for- business/supporting-apprentices-and-trainees

How much: 50% of the apprentice’s and trainee’s wages paid from 1 January to 30 September 2020 of up to $7,000 per quarter

Apply for JobKeeper payments (below) instead, if you meet the eligibility criteria. Cannot apply for Apprentice’s and trainee’s wage subsidy and JobKeeper payments at the same time.

• Release of superannuation

Available from: mid-April 2020

Eligibility: a) you are unemployed OR
b) you are eligible to receive a job seeker payment, youth allowance for jobseekers or parenting payment (single or partnered) OR
c) on or after 1 January 2020 your business was suspended or there was a reduction in your turnover (payments for services collections) of 20% or more.

How to apply: ATO MyGov

How much: up to $10,000 before 1 July 2020 and up to $10,000 after 1 July 2020 for approximately 3 months

• JobKeeper Payments

Available from: Please register your interest to receive JobKeeper Payments updates via this link: https://www.ato.gov.au/general/gen/JobKeeper-payment/

You will receive a confirmation text message from the ATO during the day that they received your details. This is all that is currently available. The ATO will administer the payments. The application process is not yet available.

Your business eligibility: You or your entity are in business and had an ABN on 12 March 2020. You have suffered or expect to suffer at least a 30% decline in your turnover when compared to the same month or quarter of 2019.

Your employee’s eligibility: Full-time, part-time and long-term casuals (have been with your business for over 12 months) over 16 years of age, who were on your books on 1 March 2020.

How much: $1,500 per fortnight paid monthly for up to 6 months. The entire amount net of tax is to flow to the eligible employee.

When: The payments will start arriving from the first week of May 2020 and will be processed monthly. This subsidy will be backdated to 30 March  2020 and will end on 27 September 2020.

Recommendation: Please register for Single Touch Payroll (“STP”), if you have not yet. The process of distributing the JobKeeper payments will be more streamlined and less time consuming. Below is the link to the ATO website listing low cost and free STP software providers. The STP software providers have been asked by the government to update their solutions to become JobKeeper payments ready.  https://api.gov.au/stpmicrosolutions/

This measure is more generous than JobSeeker + Coronavirus supplement for individuals administered by Centrelink.

IN ADDITON:

If your business (any structure) lodges BAS and is registered for PAYG Tax Withheld, you are eligible for:

• Employer cash flow boost

Available from: Following lodgement of March 2020 quarter BAS

Eligibility: You employ people (including yourself) and were registered for PAYG Tax Withholding reporting in your quarterly BAS back on 12 March 2020 AND the company’s September 2019 quarter BAS was lodged on or before 12 March 2020.

How to apply: By lodging your March 2020 quarter BAS

How much: From $20,000 to $100,000 in PAYG Tax Withheld credits for the period from 01/01/2020 to 30/09/2020. The government will issue a credit equal the PAYG Tax Withheld amount as reported in your March 2020 and June 2020 QRT BAS’ of up to $50,000 in total. Then the government will match March 2020 and June 2020 quarters’ credits with the same amount of credits following lodgement of September 2020 QRT BAS. The PAYG Tax withheld reported in March 2020 and June 2020 quarters needs to be in line with what is typical for your business.

At this point in time, it is our understanding that there is no interaction between Employer cash flow boost and JobKeeper Payments. You can apply for both, if you meet eligibility criteria.

Please note that integrity measures are being put in place to prevent abuse of the assistance measures.

Click here to download our PDF.