COVID-19 Stimulus Measure Summary | Bentleys Business Advisors

The Bentleys Tax team is maintaining this list of COVID-19 measures, which have been announced by Australian federal, state and territory governments, for reference by Bentleys staff.

Last updated: 24 March 2020, 11.00am ACDT

Here we provide some direction on how you can help your clients access:

Cash payments (permanent)
Cash payments (timing)
Expense reductions (permanent)
Expense reductions (timing)
Other concessions.

Cash payments (permanent)

Measure description	Jurisdiction/provider	Eligibility	Timing	How do I get it?
$550 per fortnight special Coronavirus supplement for income support payments#	Federal government	Existing or new Job seeker, Youth allowance Jobseeker, parenting payment, farm allowance and special benefit. Asset testing will be waived. Waiting period waived	Over the next 6 months	Services Australia is administering for eligible recipients
Two $750 one-off payments to social security and other income support recipients	Federal government	Individuals in receipt of eligible social security payments	From 31 March 2020 and from 13 July 2020	Automatic from government
$17.5k business grant	WA government	WA employers with Aust taxable wages $1m to $4m	WA employers with Aust taxable wages $1m to $4m	Automatic from government but should check details WA payroll
Victoria payroll tax refund	Victorian government	Employers with payroll of less than $3m	For payroll tax from 1 July 2020 to 30 June 2020	Automatic from government. Payments expected from March 27
$20,000 - $100,000 cash payment or PAYG reduction for employers##	Federal government	Business with aggregated turnover less than $50m and employing staff and registered as employers prior to 12 March 2020	Minimum $10,000 and maximum $50,000 paid on March – June BAS (calculated based on the amount of PAYG withholdings from 1 January to 30 June 2020). Additional payment of $10,000 -$50,000 in July to Oct 2020 period calculated based on the initial payment and spread over the period	Calculated by ATO on lodgement of BAS by completing relevant employment labels
Early access to superannuation ($20,000) tax-free	Federal government	Individuals who are: 1) unemployed 2) eligible for government payments, or 3) after 1 January 2020: o made redundant; o had hours reduced by 20% or more; or o if a sole trader had a reduction in turnover of 20% or more	$10,000 can be accessed before 1 July 2020. $10,000 can be accessed for 3 months from 1 July 2020	Apply from mid-April though the mvGov website: www.my.gov.au

# Further information can be found here: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf
## Further information can be found here: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf

Cash payments (timing)

Measure	Jurisdiction/provider	Eligibility	Timing	How do I get it?
12 mth Interest-free loans up to $250k	Queensland government	Queensland businesses by application	Immediate	Apply to QLD government via email: [email protected]
TAS 3-yr interest-free loans	Tasmanian government	<$5m turnover for hospitality, seafood, export sectors, used for equipment purchase or restructuring	Immediate	Business Tasmania on 1800 440 026 or visit www.business.tas.gov.au/ coronavirus_information
PAYG Instalment refund for payments made year to date	Australian Taxation Office	Businesses needing cashflow due to COVID impacts	Immediate	Variation to instalment to next BAS/ IAS# to withdrawn instalments from start of year
Change to GST reporting cycle from quarterly to monthly to access refunds	Australian Taxation Office	All businesses	Immediate	Through online application form
Vic government supplier payments	Victorian government	Businesses with outstanding government supplier payments	All payments made within 5 days	TBA
SME loan guarantee scheme. Up to $250k unsecured loans	Federal government through lending institutions##	Less than $50m turnover. Government will guarantee 3-year loan with no repayments for 6 months	Early April 2020 to 30 September 2020	Through lenders

# The ATO information suggests these measures will not be applied automatically. You will need to notify the ATO of the reasons for the variation when the form is lodged. The ATO will not apply interest or penalties on the final tax liability which is higher due to the refunded instalments.
## The RBA is also providing lending support to financial institutions to reduce the cost of funding to SMEs.

Expense reductions (permanent)

Measure description	Jurisdiction/provider	Eligibility	Timing	How do I get it?
50% credit for apprentices wages	Maximum $21,000 payment per apprentice	<20 full-time employees and employing eligible apprentice	From April 2020	Apply to an Australian Apprenticeship Support Provider from early -April 2020
Three month waiver of NSW payroll tax	NSW government	Total Aust payroll <$10m	Immediate to 30 June 2020	Application to NSW revenue
Bring forward of NSW & WA payroll tax threshold increase to $1m	NSW and WA government	All businesses	From 1 July 2020	Automatic on payroll tax returns
Govt fee waivers	NSW government	Eligible small businesses	TBA	TBA
Govt fee waivers	QLD government	Eligible businesses including fishery and hospitality	Immediate	Details at QLD fee waivers #
Govt fee waivers	TAS government	Tourism, hospitality, fisheries	Immediate	Details at Tas govt fees ##
Govt fee waivers	Vic government	Liquor licencing fees for affected venues and small business	2020 fees	Vic Revenue to reimburse eligible business
Govt fee increase freezing	NT government	All fee payers	Immediate until 1 July 2021	Automatic from govt
Household fee increase freezing	WA government	All WA households	Immediate until 1 July 2021	Automatic from govt
TAS Payroll tax waiver	TAS government	Hospitality, seafood, tourism. Other businesses with payroll up to $5m by application	Four month waiver till 30 June 2020	Application to TAS govt
NT business improvement grant $10,000 or $20,000 (with owner $10,000 contribution)	NT government	Must be used for undertaking improvements to an NT business purchased from an eligible NT business (not solar or PV installation)	Application from 30 March 2020. Eligible businesses listed from 13 April 2020	Application to NT govt: business.nt.gov.au/recovery
NT home improvement grant ($6,000 voucher for $2,000 contribution or $4,000 voucher for a $1,000 contribution)	NT government	Used for home improvement or repairs by local business registered for the scheme. One home per person only	Businesses from 30 March, households from 6 April. Voucher eligible for 3 months	Application to NT govt: business.nt.gov.au/recovery
NT $50,000 matched grant	NT government	community organisation for premises/ facility upgrade	Immediate	Application to NT govt
ACT rates rebate	ACT government	Residential property owners ($150 rebate) and commercial properties AUV <$2m (fixed charge $2.6k rebated)	Immediate	Automatic from government
ACT payroll tax waiver	ACT government	Hospitality, creative arts and entertainment	Immediate for 6 months	Online form www.revenue.act.gov.au
ACT registration fee waiver	ACT government	Food business registration, liquor licencing, taxi/ ride share fees	April 2020 for 12 months	Automatic from government

# Queensland Government: https://www.qld.gov.au/about/industry-recovery/business-and-industry-support
## Tasmanian Government : http://www.premier.tas.gov.au/documents/FACT_SHEETS_-_STIMULUS_PACKAGES_Final-V2.0.pdf

Expense reductions (timing)

Measure	Jurisdiction/provider	Eligibility	Timing	How do I get it?
QLD payroll tax deferral	QLD government	<$6.5m Aust taxable wages and impacted by COVID	Immediate until 31 July 2020	Application to QLD govt payroll tax relief#
WA payroll tax deferral	WA government	<$7.5 Aust taxable wages and impacted by COVID-19	Immediate until 21 July 2020	Application to WA govt payroll tax relief##
Deferral of Vic payroll tax	Victorian government~	Businesses with payroll less than $3m	Businesses can defer Jul-Sept payroll tax to 1 January 2021	TBA
PAYG Instalment refund for payments made year to date	Australian Taxation Office	Businesses needing cashflow due to COVID impacts	Immediate	Variation to instalment to next BAS/ IAS ~~
Deferral of due dates for post 23 Jan tax payments by up to 6 months	Australian Taxation Office	Businesses needing cashflow due to COVID-19 impacts	Immediate	Contact ATO 1800 806 218
Remission of interest & penalties for pre-23 Jan tax debts	Australian Taxation Office	Businesses needing cashflow due to COVID-19 impacts	Immediate	Contact ATO 1800 806 218
Rent relief	Landlords	By negotiation. Vic govt landlord has announced a scheme	Immediate	Contact landlord
Bank repayment deferrals	Financial institution	Most banks have announced deferral of repayments and other measures	Immediate	Contact financial institution
ACT payroll tax deferral interest-free	ACT government	Businesses less than $10m in payroll	From 1 July 2020 until 1 July 2022	Online form www.revenue.act.gov.au
Vic land tax deferral	Vic government	Non-residential landowners with less than $1m in taxable holdings	2020 land tax payment deferred until after 1 Jan 2021 and can be paid by 31 March 2021	Automatic administration by Vic Revenue

# Queensland Government: https://www.business.qld.gov.au/running-business/employing/payroll-tax/lodging/coronavirus-tax-relief
## WA Government: https://www.wa.gov.au/government/publications/application-defer-payroll-tax-covid-19
~ Victorian government: https://www.premier.vic.gov.au/economic-survival-package-to-support-businesses-and-jobs/
~~ The ATO information suggests these measures will not be applied automatically. You will need to notify the ATO of the reasons for the variation when the form is lodged. The ATO will not apply interest or penalties on the final tax liability which is higher due to the reduced instalments.

Other concessions

Measure	Jurisdiction/provider	Eligibility	Timing	How do I get it?
Increase to instant asset write-off deduction to $150k	Federal government	Depreciating asset purchases less than $150k (note car limit for car purchases) where entity has aggregated turnover less than $500m	Acquired after 12 March and Installed and ready for use before 30 June 2020	Acquire eligible asset
Write-off of 50% cost of eligible new assets	Federal government	Depreciating asset purchases) where entity has aggregated turnover less than $500m	Acquired after 12 March and Installed and ready for use before 30 June 2021	Acquire eligible asset
$1b support package	Federal government	TBA	TBA	TBA
$1b public works package	NSW government	TBA	TBA	TBA
$27m tourism/seafood package	Queensland government	TBA	TBA	TBA
$350m infrastructure fund	SA government	Eligible projects	Immediate	SA government by application
$500 business support fund	Vic government	Impacted sectors	TBA	TBA
$500 worker support fund	Vic government	Assist impacted employees find new opportunities	TBA	TBA
Temporary reduction in minimum super draw-down	Federal government	Superfunds with account-based pensions. Minimum pension reduced by 50%	For 2020 and 2021 financial year pension payments	Super administration
Reduction in social security deeming	Federal government	Aged pensioners	1 May 2020	Government administration
Exemption from responsible lending	Federal government	Small business customers	Immediate for 6 months	Business practice

Useful resources

The information above is a short summary of announced measures which have not been legislated. Each measure has its own unique requirements, which are not listed in detail here. You should review each particular measure and the enabling legislation before advising your client of the impacts for these particular circumstances. Further, this document has not been through a detailed review process and may contain errors or inconsistencies which may impact your client outcomes if relied on.

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