UPDATED: Tuesday 21 july 2020 9pm ACDT
To deal with the COVID-19 (Coronavirus) pandemic in Australia, the Federal Government has released three rounds of stimulus measures, along with further extensions.
The state and territory governments have also announced their own support measures, for businesses and affected areas.
Here, we summarise the support measures announced to date for:
- Federal
- New South Wales
- Queensland
- Western Australia
- South Australia
- Tasmania
- ACT
- Northern Territory
- Victoria
- Australian Tax Office
This page will continue to be updated to reflect any future announcements. Please remember to refresh you screen to see the latest updates.
Latest updates
Federal
On 21 July 2020, the Federal Government announced a six month extension to the JobKeeper wage subsidy scheme, as lockdown restrictions continue to have an adverse impact on many businesses. The JobKeeper extension measures are essentially a refinement of the existing JobKeeper rules based on the Government’s review of the current rules effectiveness.
The new JobKeeper extension has four key elements:
- Extending JobKeeper support for a further six months until 28 March 2021.
- Ensuring that JobKeeper payments are more directed to employees who had an appropriate level of working hours as at 1 March 2020 under a new 20 work hours test.
- Requiring businesses now to test a decline in turnover based on actual (versus projected) turnover based on 2019 comparables.
- Gradually reducing the JobKeeper extension payments under a two tiered approach up to 28 March 2021.
Importantly, the existing JobKeeper rules will continue to apply until 27 September 2020 as originally announced with the new JobKeeper extension support applying from 28 September 2020 until 28 March 2021. This means that businesses that currently qualify for JobKeeper will not be affected by the new rules until they come into effect from 28 September 2020.
The table below highlights the main conditions under the JobKeeper extension.
| JOBKEEPER EXTENSION | EFFECTIVE FROM | CONDITIONS | BENTLEYS COMMENT |
|---|---|---|---|
| JobKeeper Extension Payments First extension period – either $1,200 or $750 per fortnight depending on whether the 20 work hour test met Second extension period – either $1,000 or $650 per fortnight depending on whether the 20 work hour test met | First extension period starting from fortnight ending 11 October 2020 until 3 January 2021 Second extension period starting from fortnight ending 17 January 2021 until 28 March 2021 | For employees - based on a 20 hour work test where the employee worked on average at least 20 hours per week in the four weeks of pay periods prior to 1 March 2020. Higher rate paid if 20 hour work test met For eligible business participants - based on a 20 hour work test where the business participant on average worked at least 20 hours per week during the month of February 2020. Higher rate paid if 20 hour work test met | The Commissioner has some discretion to consider the 20 hour work test to have been satisfied where it may have otherwise failed based on certain circumstances such as where the employee was on leave or volunteering work during the bushfires given as examples |
| Decline in Turnover Test | Starting from 28 September 2020 | First extension period – must meet decline in turnover test for June 2020 and September 2020 quarters based on actual turnover compared to the relevant 2019 period. Second extension period – must meet the first extension period decline test as well as turnover test for the December 2020 quarter compared to the relevant 2019 period | The relevant decline in turnover will be either 15%, 30% or 50% depending on the type and size of entity as prescribed under the existing JobKeeper rules |
Further details can be found here:
- Bentleys: JobKeeper 2.0 explained
- Australian Government: Factsheet – Jobkeeper payment extension (external website)
On 30 March 2020, the Federal Government announced a third round of stimulus support measures to deal with the deepening economic crisis as a result of the COVID-19 lockdowns. The third round of measures, costing $130 billion, now bring the Federal Government’s stimulus spending to well over $300 billion, and represents an unprecedented 16% of the Australia’s GDP. This is the highest level of Australian Government spending in the nation’s history. The centre piece of the third round support measures, entitled ‘JobKeeper Payments’ aim to provide wage subsidies for employers to retain workers during these difficult times.
In the table immediately below, we have now consolidated and summarised the key measures announced by the Federal Government on 12 March, 22 March and 30 March 2020 with a focus on businesses affected by the COVID-19 lockdowns. The tables for the state and territory support measures will also be continually updated by Bentleys. It will be important for all businesses and individuals to be aware of the support available during these difficult times, including formulating their own plans to deal with the key issues of revenue loss, creditors, employee retention, insolvency and other flow on effects the COVID-19 lockdowns will have both domestically and globally.
Federal tax support measures
| Effective from | Conditions | Bentleys comment | |
|---|---|---|---|
| JOBKEEPER PAYMENTS | |||
| Employer wage subsidy of $1,500 per employee per fortnight | The subsidy will start on 30 March 2020 with the first payments to be received by employers in the first week of May 2020 | 30% decline in turnover (50% for larger businesses) Employees as at 1 March 2020 or self-employed Passed on to employees earning less than $1,500 per fortnight Register with the ATO and employees notified Ongoing reporting requirements to ensure continued eligibility | For employees earning less than $1,500 per fortnight the package will increase pay to $1,500 per fortnight over a 6 month period. For businesses that have shut down, the package is intended to incentivise both the employer and employee to remain in contact so that the employer can continue to pay employees $1,500 per fortnight and resume operations post lockdown |
| BOOSTING CASH FLOW FOR EMPLOYERS - ENHANCED | |||
| Employer cash support payment up to $100k (increased from previously announced $25k support on 12 March 2020) Payment calculation method also accelerated from 50% to 100% of PAYG withholdings Payments are tax free | Covers amounts withheld from 1 January 2020 to 30 June 2020 (for monthly PAYG withholding lodgers it applies to amounts withheld from 1 March. However, to provide a similar treatment to quarterly lodgers the payment will be calculated based on 3 times the March PAYG withholding) | Aggregated turnover less than $50m (generally based on prior year turnover) Now also includes Not-For-Profits and Charities that are employers Must have been an employer established before 12 March 2020 with an exception for Charities registered with the Australian Charities and Not-for-profits Commission (ACNC) | The $100k cash support cap is effectively made of two components. The first component is a doubling of the boosting cash-flow support from $25k to $50k for March to June PAYG withholdings. The second component is a cash support payment equal to the first component received and applied to activity statements from June to September Employers with nil PAYG withholding will have the minimum support payment increased from $2k to $20k |
| ASSET WRITE OFFS | |||
| 100% write off for assets less than $150k | From 12 March 2020 until 31 December 2020 | Aggregated turnover less than $500m | Asset must be first used or installed ready for use by 31 December 2020 to qualify (this has been extended from 30 June 2020). |
| Upfront 50% deduction for “eligible assets” and existing depreciation rules applying to balance | Immediate effect for “eligible asset” purchases until 30 June 2021 | Aggregated turnover less than $500m | “Eligible assets” are new assets that can be depreciated for tax purposes, except second-hand assets. Therefore, this does not apply to capital works |
| GOVERNMENT LOAN SUBSIDY - SME GUARANTEE SCHEME | |||
| To enhance the ability for SMEs to obtain loans from lending institutions, a 50 per cent SME Government Guarantee will be provided to SMEs for new unsecured loans to be used for working capital. A 6 month loan repayment holiday to be provided | New loans from early April to 30 September 2020 | Turnover up to $50m Limit of $250k loan per borrower. Loans up to 3 years Loans will be based on lender’s loan conditions but the Government will be expecting lenders to look past current conditions when making loan assessments | It is expected that many cash strapped SMEs may consider this option. Of note, no loan security will be required but still subject to lender’s lending requirements |
| 50% of an apprentice or trainee’s wage over a 9 month period | Effective from 1 January 2020 to 30 September 2020 | For businesses with less than 20 full time staff who retain an apprentice or trainee. The apprentice/trainee must have been in training as at 1 March 2020 | Where a small business is not able to retain an apprentice, the subsidy will still be available to a new employer of that apprentice |
| TEMPORARY RELIEF FOR FINANCIALLY DISTRESSED BUSINESSES - DEALING WITH CREDITOR DEMANDS | |||
| The current minimum threshold for creditors issuing a statutory demand under Corporations law will be temporarily increased from $2,000 to $20,000. Timeframe for responses to a statutory demand will be extended temporarily from 21 days to 6 months | Government has announced this will apply for a 6 month period | No specific conditions noted | Affected businesses should start liaising with their creditors. Bentleys can provide assistance where required |
| TEMPORARY RELIEF FOR FINANCIAL DISTRESSED BUSINESSES - TRADING WHILST INSOLVENT | |||
| Temporary relief from personal liability for insolvent trading will apply with respect to debts incurred in the ordinary course of the company’s business | Government has announced this will apply for a 6 month period | Companies will still be liable for their debts | Government has indicated dishonesty and fraud will still be subject to criminal penalties |
| TEMPORARY RELIEF FOR FINANCIALLY DISTRESSED BUSINESSES - BANKRUPTCY PROCEEDINGS | |||
| Threshhold to initiate bankruptcy proceedings against a debtor will temporarily increase from $5,000 to $20,000 | Government has announced this will apply for a 6 month period | No specific conditions noted | Distressed businesses should consult an advisor. Bentleys can provide assistance where required |
| CERTAIN CORPORATIONS LAW REQUIREMENTS TO BE RELAXED | |||
| Relief from specific Corporations Law obligations to be introduced including modifying certain obligations to enable compliance with legal requirements during the crisis | Six months from the date an instrument made by the Treasurer is made | Further details to be provided | The Government has announced that this could cover for example the requirement to hold certain AGMs as a result of social distancing measures |
| OTHER TARGETED AREAS - SUPERANNUATION AND SUPPORT FOR RETIREES | |||
| Minimum drawdown requirements for account-based pensions and similar products will be halved over the next two years | Applies for the June 2020 and June 2021 income years | Reduction in draw-down requirements applies to account based pensions and similar products | For example, a retiree under 65 years of age, the minimum draw down pension rate will be reduced from 4% to 2% for June 2020 and June 2021 |
| Individuals affected by the Coronavirus have the ability to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21 | Applies for the June 2020 and June 2021 income years | Individual must either be unemployed, eligible for certain welfare payments (e.g. job seeker payment). Others include individuals who were made redundant where working hours or turnover reduced by 20% or more after 1 January 2020 | This may be particularly critical for sole traders and workers who have sufficient superannuation support. Application must be made to the ATO |
| Social security deeming rates to be reduced by a further 0.25% in addition to the 0.5% reduction announced on 12 March 2020 | From 1 May 2020 | N/A | Applies to Government income support recipients including those on age pensions |
| OTHER TARGETED AREAS - SUPPORT FOR HOUSEHOLDS | |||
| The Government is providing two separate payments of $750 each to social security, veteran and other income support recipients and eligible concession card holders. | First payment to be made between 12 March 2020 and 13 April 2020 Second payment to be made available to those eligible as at 10 July 2020 | Covers a broad range of welfare recipients including eligible concession card holders, age pension, disability support pension, Job seeker allowance, widow allowance, carer payment, AUSTUDY and others | A total of $1,500 will be provided to eligible recipients under this measure. The Government expects the majority of the beneficiaries for this support will be pensioners |
| The Government is providing a Coronavirus Supplement payment of $550 per fortnight for those individuals financially impacted by the Coronavirus | From 27 April 2020 for a 6 month period, but this can be extended | Must be an existing or new Jobseeker, Youth allowance, Parenting payment, Austudy, ABSTUDY, Farm allowance and Special benefit recipient. Asset testing will be waived. Waiting period waived | Those receiving this payment will not be eligible for the second $750 payment in the above measure |
| ASSISTANCE FOR SEVERELY AFFECTED REGIONS | |||
| $1b Support Package most affected by Coronavirus such as tourism, agriculture and education | Government has announced as soon as practicable | Details yet to be released | This will include assistance to help businesses identify alternative export markets and supply chains |
Further details can be found here:
- Australian Government: Support for businesses (external website)
- Australian Government: Economic response to the Coronavirus (external website)
- Australian Tax Office: Support for large business impacted by COVID-19 (external website)
New South Wales
On 13 April 2020, the New South Wales (NSW) Treasurer announced a $440 million land tax break to support tenants and landlords. This announcement builds on the NSW Government’s commitment to legislate the National Cabinet’s Code of Conduct for commercial and residential leasing.
The main requirements are set out in the summary table below. We note that the NSW Government has yet to release legislation giving effect to land tax changes, so the summary table below is subject to further details becoming known.
| EFFECTIVE FROM | CONDITIONS | BENTLEYS COMMENT | |
|---|---|---|---|
| LAND TAX WAIVER AND DEFERRAL | |||
| 25% waiver of 2020 land tax liability Three month deferral on remaining land tax liability | Immediate effect – i.e. applies for the 2020 land tax year | Landlord leases land for business or residential purposes subject to land tax Commercial tenants max turnover $50m Tenant must be able to demonstrate: • For commercial tenants – 30% drop in revenue • For residential tenants – 25% drop in household income as a result of COVID-19 pandemic Tenant rent reduced by land tax reduction Applied on a property by property basis | Landlords will need to make an application to waive/defer land tax liabilities for 2020. Revenue NSW will announce application process and required supporting information shortly. Expected information may include: • BAS statements from tenant • Letter from accountant • Old and revised tenancy agreements to show rent reduction |
Further details can be found here:
- COVID-19: NSW land tax relief measures for 2020
- Revenue NSW: NSW Government offers $440 million land tax break to support tenants and landlords (external website)
- Treasury NSW: COVID-19 (Coronavirus) and land tax (external website)
On 3 April 2020, the NSW Government announced a third set of support measures in the form of a $10,000 grant for eligible small businesses with employees who have been significantly impacted by the COVID-19 lockdown measures. The package now provides further payroll tax relief in the form of payroll tax deferrals for businesses with payrolls above $10m, as well as providing an additional three month deferral for smaller payrolls, building upon the Stage 1 and 2 announcements.
Further details on measures announced in NSW stimulus packages – for stages 1, 2 and 3 – are summarised below.
NSW support measures, stages 1-3
| EFFECTIVE FROM | CONDITIONS | BENTLEYS COMMENT | |
|---|---|---|---|
| SMALL BUSINESS GRANT | |||
| $10k grant to certain small businesses that have been adversely affected by COVID-19 | Applications open 17 April 2020 and close 1 June 2020. Funds expected to be paid shortly after processing of application | Employs between 1-19 employees as at 1 March 2020 Payroll under NSW threshold of $900k In an affected industry being retail, accommodation and food service, rental, hiring and real estate services, administrative and support services, arts and recreation services Supporting documentation to be submitted with online application | Will be important for affected business to make the online application between 17 April 2020 and 1 June 2020 in order to be considered |
| PAYROLL TAX DEFERRAL - OVER $10M | |||
| 6 month deferral of payroll tax where payroll over $10m | Deferral starting from March 2020. | Payroll over $10m | Payroll relief now extended to employers with larger payrolls |
| PAYROLL TAX WAIVER AND DEFERRAL - $10M OR LESS | |||
| 3 month waiver and 3 month deferral of payroll tax where payroll $10m or less. | Effective from March 2020. | For grouped Australia wide payrolls up to $10m | Monthly payers not required to make March, April and May payments and deferral option for remainder of liability. For annual payers, 25% discount will be applied on filing |
| $1 BILLION FOR NSW WORKING FUND | |||
| Working for NSW Fund totalling $1b to sustain business, create new jobs and retain employees | Immediate from March 2020 | Further details to be provided | The funding comprises $750m in new funding and $250m previously announced for additional cleaning services |
| DEFERRAL OF RENTS ON GOVERNMENT OWNED PROPERTIES | |||
| Deferral of rents for six months for commercial tenants with less than 20 employees in Government-owned properties | Further details to be provided | Must be leasing from a Government-owned property | |
| DEFERRAL OF GAMING TAX FOR CLUBS, PUBS, HOTELS, AND LOTTERIES TAX | |||
| 6 month deferral of gaming tax for clubs, pubs and hotels and lotteries tax | Clubs and hotels will having gaming machine tax payments deferred until 1 September 2020. Lotteries and Keno payments deferred from 1 April to 30 September 2020 | Conditional on funds being used to retain staff | |
| DEFERRAL OF PARKING SPACE LEVY | |||
| 6 month deferral of parking space levy | Levy deferred until 30 September 2020 | N/A | |
| STATE FEES AND CHARGES | |||
| Waiver of various state fees and charges | Further details to be provided | Further details to be provided but to be targeted at small business | Intended to cover bars, cafes, restaurants and trade persons |
| PUBLIC WORKS AND INFRASTRUCTURE | |||
| $250m to employ additional cleaners of public infrastructure | Further details to be provided | Further details to be provided | This will cover additional cleaning support for transport infrastructure, schools and public buildings |
| Over $250m to bring forward maintenance of public assets | Further details to be provided | Further details to be provided | This is to cover social housing and crown land fencing |
| $500m to bring forward capital works and maintenance | Further details to be provided | Further details to be provided |
The NSW Government has also set up a Business Concierge service where businesses can register and receive support from the NSW Government on regulation issues, including dealing with councils and agencies during the COVID-19 crisis.
Further details can be found here:
- COVID-19: NSW small business grants now available
- NSW Goverment, Service NSW: Grants loans and financial assistance (external website)
- NSW Government: Business concierge service (external website)
- NSW Government: Billions in tax relief for business (external website)
- NSW Government: $2.3 billion health boost and economic stimulus (external website)
Queensland
| Effective from | Conditions | Bentleys comment | |
|---|---|---|---|
| $1B INDUSTRY SUPPORT PACKAGE | |||
| Support to assist large businesses through this period to ensure they will be able to scale up and service the community when economic activity improves. | Further details to be provided | Will be focussed to support businesses: • which make a significant contribution to Queensland • that employ people in Queensland at scale • which are significant in a regional context • that can make a key contribution to a rapid response by the economy as conditions improve • which are significantly impacted as a result of COVID-19 • to leverage current support measures and those available from other jurisdictions | |
| ASSISTANCE TO AFFECTED INDUSTRIES | |||
| $27.25m package for tourism and seafood businesses | Further details to be provided | Must be in specific industries or regions | Waiver of a range of fees, charges and levies to support tourism operators to continue to operate. Includes application and liquor licencing fees, registration renewal fees for Inbound Tour Operators, rebates on marina charges and passenger levies, and deferral of tourism lease rent payments. |
| $500M LOAN FACILITY | |||
| Low interest loan facility | Applications are now open until 25 September 2020 or until funding fully committed | Loans up to $250k No repayments or interest for first year Two years interest free 2.5% fixed interest rate 10 year loan term | Intended to assist businesses to retain staff |
| $500M WORKER RETRAINING & ASSSISTANCE | |||
| Up to $500m package to assist workers who lose their job or income with retraining, job-matching and other help to transition into jobs. Businesses that need access to skilled labour to meet demand will also receive assistance under this initiative. | Further details to be provided | Further details to be provided | Intended to support workers to move to other vital industries such as health care, agriculture, food production, transport, cleaning and mining. |
| PAYROLL TAX | |||
| Payroll tax refund for 2 months and payroll taxtax holiday for 3 months for SMEs | Immediate | Applies to SMEs with up to $6.5m in Australian taxable wages and impacted by COVID-19 | Eligible SME businesses in Queensland will receive a payroll tax holiday |
| Payroll tax refund for 2 months and payroll tax deferral extended from SMEs to all businesses | Immediate to 31 December 2020 | Applies to all businesses impacted by COVID-19 | Eligible businesses in Queensland will receive a payroll tax refund and will not need to pay payroll tax for the 2020 calendar year until 14 January 2021 |
| $100M ELECTRICITY BILL RELIEF FOR SMEs | |||
| Sole traders, small and medium businesses will get a $500 rebate on their power bill. | Immediate | Any business consuming less than 100,000 kilowatt hours will receive the rebate | Rebate will be automatically applied on business electricity bills |
Further details can be found here:
- Queensland Government: COVID-19 essential information (external website)
- Queensland Government: COVID-19 economic relief package (external website)
- Queensland Government: COVID-19: business and industry support (external website)
- Accounting treatment for COVID-19 government assistance
Western Australia
WA support measures, as at 1 April 2020
| Effective from | Conditions | Bentleys comment | |
|---|---|---|---|
| BUSINESS GRANTS | |||
| One-off grant up to $17,500 to businesses who pay wages between $1m and $4m | Grants to be paid from 1 July 2020 | Based on annual Australian taxable wages between $1m and $4m | For employers grouped for payroll tax only a single grant will be paid to the designated group employer |
| PAYROLL TAX | |||
| Payroll tax waiver offered to businesses who pay wages under $7.5m | Covers the monthly payroll tax payments for the March-June 2020 returns | Australian taxable wages do not exceed $7.5m and business has been affected by the coronavirus | This has replaced the previous deferral offer. A formal application is required for businesses whose taxable wages were more than $5m as at 29 February 2020 |
| Increase in payroll tax threshold to $1m brought forward by 6 months | Effective from 1 July 2020 | Current payroll tax threshold is $950k | |
| STATE FEES AND CHARGES | |||
| Planned increases to electricity, water, motor vehicle charges, Emergency Services Levy, public transport fares will not go ahead | Effective from 1 July 2020, with no increase until at least July 2021 | Intended to keep household costs at a manageable level | |
| Energy Assistance Payment to be doubled, and access expanded to new applicants | Effective now for those eligible as at 16 March 2020, and from 1 July 2020 for new applicants | Must be a concession card holder | Aimed to ease the financial burden on vulnerable citizens. Access has been widened and brought forward |
| Deferral and no interest on electricity and water bills for households | Effective until 30 September 2020 | Must be required due to financial hardship | Aimed to ease the financial burden businesses and households |
| Interest-free payment arrangements on transfer duty, landholder duty, vehicle licence duty and land tax, and waiver of late payment penalties for households and small and medium sized businesses | Effective until 30 September 2020 | Must be directly or indirectly impacted by the Coronavirus | Aimed to ease the financial burden businesses and households |
| Waiver of various state licence charges and registrations for 12 months for small and medium sized businesses | The start time is unclear at this stage | Applicable for small and medium sized businesses | To provide relief for businesses impacted by trading restrictions |
| $2,500 credit for electricity for small business and not-for-profits | Allocated from 1 May 2020 | Small business means it consumes less than 50 megawatt hours per annum | To provide relief for businesses impacted by trading restrictions |
| Rental waiver for small business and not-for-profits for 6 months | Further details to be provided | 1) Must be leasing from a WA Government owned building 2) Cannot be a subsidiary of a larger business | Aiming to ease the burden on small business |
Further details can be found here:
- WA Government: COVID-19 payroll tax relief (external website)
- WA Government: Media statement – $1 billion economic and health relief package unveiled (external website)
South Australia
The South Australian Government released further detail as to their $650m Stage 2 stimulus package on 27 March 2020. The measures include:
| Effective from | Conditions | Bentleys comment | |
|---|---|---|---|
| LAND TAX DEFERRAL | April 2020 | Land tax bills for quarters 3 and 4 of the 2019-20 income year (current year) will be deferred by 6 months | The deferral will be automatic with administration information on land tax notices |
| LAND TAX TRANSITION FUND | Commencing 1 July 2020 | • 2020-21 year – 50% of increase in liability over $2,500 (up to $102,500); • 2021-22 year – 30% of increase in liability over $2,500 (up to $102,500); • 2022-23 year – 15% of increase in liability over $2,500 (up to $102,500); The relief for the 2020-21 year has now been increased from 50% to 100% | Does not apply to land held in trusts |
| PAYROLL TAX RELIEF - ANNUAL PAYROLL UP TO $4M | This will be for the returns for March to August 2020 and will be applied automatically | Six month waiver of payroll tax obligations | Relief will be applied automatically. Returns still need to be completed |
| PAYROLL TAX RELIEF - GROUPED ANNUAL PAYROLL ABOVE $4M | Payments will be deferred until October 2020 | Six month deferral of payroll tax may be available on application | Online application form is still being developed |
| WAIVER OF LIQUOR LICENCE FEES | Applied automatically | Businesses will not be required to pay liquor licence fees for 2020-21 for the following liquor licence categories: • On premises • Residential • Restaurant and Catering • Club • Liquor Production and Sales • Small Venue Holders of a General and Hotel licence who have a bottleshop will receive reduced fees, or a full waiver if they do not have a bottleshop | |
| CENTRELINK JOBSEEKER PAYMENT | Immediate . Expect payment early April. | • Once-off payment of $500 • Will receive the 2020-21 Cost of Living Concession early | |
| ACCESS TO ACCRUED LEAVE FOR PUBLIC SECTOR WORKFORCE | If a public servant has a family member who has lost their job and moved onto Commonwealth benefits, they will be able to receive their accrued leave down to a limit of 2 retained weeks | ||
| JOB ACCELERATOR GRANTS | N/A | The government is relaxing requirements under the Job Accelerator Grant program | |
| $10,000 EMERGENCY CASH GRANTS | Apply by 1 June 2020 | Employing small business or NFP highly impacted by COVID-19 | By application $10,000 cash grant |
| COMMERCIAL LEASE PRINCIPLES IN COVID-19 EMERGENCY RESPONSE ACT | From 30 March 2020. Applied automatically, if it applies to you | Applies generally to commercial leases |
Further details can be found here:
- Government of SA: Register for the small business grant program (external website)
- Bentleys SA: Bentleys_COVID19 Stimulus Measures_Tables_21Apr
- Bentleys COVID19 Stimulus Measures ReferenceTables 6Apr pdf
- Bentleys COVID19 Bank Offerings 26 Mar 2020 pdf
- SA Government: Unprecedented response and economic stimulus to drive SA jobs, economy in wake of bushfires, Coronavirus (external website)
Tasmania
| Effective from | Conditions | Bentleys comment | |
|---|---|---|---|
| PAYROLL TAX RELIEF | |||
| Payroll tax to be waived for the entire 2019-2020 year. This will include refunds for previous payments, as well as waivers | 1 July 2019 | Applies to businesses with a payroll of less then $5 million | Other businesses may apply for this concession, but only if they have less than $5m payroll and have been impacted by the virus |
| Primary health grant | To assist general practices and community pharmacies to support continued delivery of primary health services during the COVID-19 pandemic, grants of up to $10 000 are available as one off support payments | Submissions close 30 June 2020 | |
| ELECTRICITY, WATER AND LAND TAX | |||
| Electricity and water bill will be waived for small businesses | Immediate | This applies for small businesses and their first quarterly bill received after 1 April 2020. This applies to Tariffs 22, 94, 82 or 75. Further, from 1 July 2020 electricity bills will be capped and water bills will be frozen | |
| Land tax waived | 1 July 2020 | The Government will also waive land tax for 2020- 21 for commercial property owners financially impacted by COVID-19, where the land tax is paid by the business owner |
Further details can be found here:
- Tasmanian Government: Business continuity grant factsheet (external website)
- Tasmanian Government: Emergency support grant application (external website)
- Tasmanian Government: Business support loan scheme factsheet (external website)
- Tasmanian Government: COVID-19 business support packages (external website)
- Tasmanian Government: Support for businesses and industries (external website)
Northern Territory
| Effective from | Conditions | Bentleys comment | |
|---|---|---|---|
| BUSINESS SUPPORT: | |||
| Eligible businesses will receive a one-off payment of $10,000. If a business puts in $10,000 of their own money, then the government will grant another $10,000. $20m has been allocated for this package. | Immediate | Must use money to improve a business in the Territory. The purchases must be made from another Territory business. | |
| $5m has been allocated to help businesses with adjusting to the conditions caused by the virus. | Immediate | All businesses can apply, but the hospitality sector will have first priority. Further details to come. | |
| $5m has been allocated to grant money for repairs, renovations and upgrades. The grant is up to $50,000. | Immediate | Must be an incorporated not-for-profit or a community organisation. If the organisation puts in their own money, it will be matched dollar for dollar up to $50,000. | The grant and dollar-matched grant can be added together for a total grant of up to $100,000. |
| FREEZING OF GOVERNMENT CHARGES: | |||
| All government fees and charges will be frozen. | Until 1 July 2021 | N/A | This includes electricity, water and car registration. |
| HOME IMPROVEMENT: | |||
| $30m of grants will be provided to Territory homeowners and landlords for home improvement. | Immediate | If the owner contributes $1,000 they will receive a $4,000 grant, if the owner contributes $2,000 they will receive a $6,000 grant. |
Further details can be found here:
Australian Capital Territory
| Effective from | Conditions | Bentleys comment | |
|---|---|---|---|
| PAYROLL TAX WAIVER FOR 6 MONTHS | |||
| Businesses in the hospitality, creative arts and entertainment industries. | Covers waiver of payroll tax from April to September 2020 For monthly lodgers, first credit will be applied to the April 2020 liability. For annual lodgers, the credit will be applied at the end of the 2019-2020 financial year | Business must be in the hospitality (cafes, pubs, hotels, clubs and restaurants), creative arts or entertainment industries. Businesses will need to apply online at the ACT Revenue Office website at www.revenue.act.gov.au | This should be a priority for all ACT businesses that qualify. The online application page is yet to be created at the time of writing |
| PAYROLL TAX DEFERRAL | |||
| SME businesses can defer their 2020-21 payroll tax, interest free until 1 July 2022 | For monthly lodgers, deferral can be applied to the April 2020 liability. For annual lodgers, deferral can be made to the full 2020-21 liability usually payable in July 2021 | For grouped Australia wide payrolls up to $10m Businesses will need to apply online at the ACT Revenue Office website at www.revenue.act.gov.au | This should be a priority for all ACT businesses that qualify. The online application page is yet to be created at the time of writing |
| COMMERCIAL GENERAL RATES REBATE | |||
| For commercial owners of property a rebate for fixed rates of $2,622 | The credit will be applied to the 2019-20 general rates, in fourth quarter | Commercial properties with an average unimproved land value (AUV) of less than $2 million | The rebate will be automatically applied |
| ELECTRICITY REBATES | |||
| Small business owners with electricity usage may qualify for rebates of $750 | From June or July 2020 depending on the issue of the next electricity bill | Applies only to business they use less than 100 megawatts per year | The rebate will be automatically applied |
| RIDESHARE AND TAXI VEHICLE LICENCE FEES | |||
| Licence fees will be waived for 12 months for rideshare operators. Waiver of government leased taxi plate fees | From 1 April 2020 | N/A | Fees will be waived automatically. Cases where licences have already been prepaid 12 months in advance, an additional 12 months credit will be added to the licence at the next due date |
| FOOD BUSINESS REGISTRATION, OUTDOOR DINING AND LIQUOR LICENCE FEES | |||
| 12 month waiver of food business registration and on-licence liquor fees for licensed venues | From 1 April 2020 | Waiver only applies to licensed venues | Cases where food business registration has been prepaid for more than one year in advance, an additional 12 months will be added to the licence |
| Outdoor licence fees to be waived | For 2020-21 | Waiver only applies to licensed venues | Cases where food business registration has been prepaid for more than one year in advance, an additional 12 months will be added to the licence |
| SUPPORT TO CLUBS | |||
| Additional payment of $1.5 million and freeing up the existing $1.8 million in the Clubs Diversification Fund | Details to be provided | Details to be provided | This is targeted at assisting clubs to retain their employees at existing award rates |
| INFRASTRUCTURE SPENDING | |||
| $20 million to be immediately spent on infrastructure projects | Will have a focus on works that can start immediately | Spending for maintenance on local schools, roads, and public transport | This is targeted at keeping locals employed in public works |
| FUNDING FOR ARTS SECTOR $500K | |||
| Funding for artists of up to $10,000 to support arts development and the sustainability of arts practice over the next six to nine months through a $500,000 grants program | Grant applications will open on 30 March 2020 and close at 5pm 17 April at 5pm. Announcements on successful recipients will be made around 1 May 2020 | Application must be made | Those in the arts sector should start their applications immediately |
| SUPPORT FOR HOUSEHOLDS AND WELFARE AND OTHER AREAS | |||
| Various other support to be provided to households, targeted welfare groups and other areas. See link below for further details |
Victoria
| Effective from | Conditions | Bentleys comment | |
|---|---|---|---|
| PAYROLL TAX REFUNDS | |||
| Full payroll tax refunds for the 2019-20 financial year. | Immediate to 30 June 2020 | Immediate to 30 June 2020 For small and medium businesses with payroll of less than $3 million. | This assistance is a refund, not a loan. |
| PAYROLL TAX DEFERRAL | |||
| Payroll tax deferral for the first three months of the 2020/21 financial year. | 1 July 2020 | Payments can be deferred until 1 January 2021. | |
| COMMERCIAL TENANTS RENT RELIEF | |||
| Commercial tenants rent relief - Commercial tenants in Government buildings can apply for rent relief. | More details to come | More details to come. | Private landlords are also being encouraged to undertake this measure. |
| 2020 LAND TAX PAYMENTS | |||
| 25% discount and deferral of balance for eligible small businesses. | Deferral of balance until March 2021 | Landlords provide rent relief to tenants in “financial stress”. Extra criteria for commercial landlords: tenant eligible for JobKeeper payments, and tenant’s annual turnover $50m or less | |
| $2,000 rental assistance directly to landlord for residential renters | More details to come | Rent relief provided by landlord but still represents more than 30% of tenant’s income. Tenant earns less than $100,000 p.a Tenant has less than $5,000 in savings | |
| Six-month ban on evictions and rental increases | From 29 March 2020 | Residential tenants. Commercial tenancies involving small and medium-sized business | |
| Rent waivers and deferrals for commercial tenancies | From 29 March 2020 | Businesses earning less than $50m and with a turnover reduction of at least 30% | |
| GOVERNMENT SUPPLIER INVOICE PAYMENTS | |||
| Government supplier invoices | All payments made within five business days | Business with outstanding government supplier payments | The private sector is urged to do the same, where possible. |
| LIQUOR LICENSE FEES | |||
| All liquor license fees will be waived for 2020. | 2020 fees | Liquor licensing fees for affected venues and small business | |
| BUSINESS SUPPORT FUND | |||
| A $500 million Business Support Fund has been established to provide funding of $10,000 per business through a grant process | Applications are being accepted now, but close on 1 June 2020 | Subject to closure or highly impacted by Government restrictions, turnover more than $75,000 and payroll of less than $650,000 | This fund will support the hardest hit sectors including hospitality, tourism, accommodation, arts and entertainment, and retail |
| WORKING FOR VICTORIA FUND | |||
| A $500 million Working for Victoria Fund will be established. | Immediate | Workers who have lost their jobs, been stood down, or have reduced shifts as a result of COVID-19, and who have Australian working rights | This fund will help workers who have lost their jobs find new opportunities, including work cleaning infrastructure or delivering food |
Australian Tax Office
The following table is a summary support measures announced by the Australian Taxation Office (ATO) for taxpayers affected by the COVID-19 lockdowns.
| EFFECTIVE FROM | CONDITIONS | BENTLEYS COMMENT | |
|---|---|---|---|
| DEFERRAL OF ATO PAYMENTS | |||
| Deferral of due dates for post 23 January 2020 tax payments by up to 6 months | On or after 23 January 2020 | Businesses affected by COVID-19 | Payments of tax amounts due through the BAS (including PAYG instalments), income tax assessments, FBT and excise are included. This measure is only available for businesses affected by COVID-19 |
| PAYG TAX INSTALMENTS VARIATION | |||
| Allowing to vary PAYG instalment amounts to zero for the March 2020 quarter (and claim refund for any instalments made during the 30 June 2020 year – i.e. September 2019 and December 2019 quarters) | March 2020 quarter | PAYG Instalment payers affected by COVID-19 | Taxpayers subject to PAYG tax instalments can make a variation of the PAYG instalment on their activity statement if affected by COVID-19. The ATO won’t apply penalties or charge interest to varied instalments for the 2019-20 financial year |
| GST REPORTING CYCLE CHANGES | |||
| Allowing business on a quarterly GST reporting cycle to opt into monthly GST reporting to get quicker access to any GST Refund | Immediately | Businesses affected by COVID-19 | This measure may be considered for businesses with falling revenues. The ATO has confirmed that changing a GST reporting cycle to monthly does not mean that a business is also required to change its PAYG withholding reporting cycle. The ATO will need to be notified of any changes to the GST cycle before the end of the first month in the quarter, otherwise the new cycle will take effect from the start of the next quarter. i.e. notify the ATO before 30 April 2020 so that the business can change to monthly GST reporting for the month of April 2020; otherwise, notifications after 1 May 2020 will mean monthly reporting from July 2020. Must keep reporting for 12 months before reverting to quarterly reporting |
| INTEREST AND PENALTY REMISSION | |||
| Remission of interest and penalties for post-23 January 2020 tax debts | Incurred on or after 23 January 2020 | Businesses affected by COVID-19 | This measure is only available for businesses affected by COVID-19 |
| PAYMENT PLANS | |||
| Allowing affected businesses to enter into low-interest payment plans for their existing and ongoing tax liabilities | Immediately | Businesses affected by COVID-19 | This measure is only available for businesses affected by COVID-19 |
| R&D EXTENSIONS | |||
| R&D Tax Incentive applications for the 30 June 2019 income year will be accepted until 30 September 2020 | Immediately | Businesses with R&D activities | Businesses have an extension to apply to register their eligible R&D with the Department of Industry, Innovation & Science until 30 September 2020 (instead of 30 April 2020) |
| ABN AND GST REGISTRATION CONTINUATION | |||
| If an entity temporarily ceases its trading activities but intends to restart, ABN & GST registrations are not required to be cancelled | Immediately | Businesses which have paused but intend to restart | Entities which have temporarily ceased trading but intend to restart when conditions allow are not required to cancel their ABN and GST registration. If a business permanently ceases, then its tax affairs must be finalised before the ABN is cancelled: final BAS to be lodged, and ABN & GST registration will need to be cancelled within 21 days of ceasing business activities. Tax obligations include: FBT, PAYG, ETPs for employees, super payments for employees, CGT, GST |
| SINGLE TOUCH PAYROLL (STP) REPORTING | |||
| Employee cessation date to be reported in the STP report. If the employees have received their final pay, the employer can advise the ATO by submitting an update event | Immediately | Businesses who have let employees go | Entities do not need to wait until the end of the year to finalise STP data for employees who have ceased employment. If employees are no longer being paid, the employer can advise the ATO there is no requirement to report through STP |
Please note:
- COVID-19 relief is not automatically granted by the ATO. The taxpayer or their agent must contact the ATO.
- The ATO’s Emergency Support Infoline is 1800 806 218.
- The ATO notes that employers still need to meet super guarantee (SG) obligations for their employees. By law, the ATO says it cannot vary the contribution due date or waive the super guarantee charge (SGC) where super guarantee payments are late or unpaid.
Further details can be found here:
- ATO: COVID-19 support available (external website)
- ATO: COVID-19 dealing with disasters (external website)
Please contact your local Bentleys advisor for further information. We can help you identify opportunities for you and your business.
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.
What would you like to learn more about? How can we help you?
Read our latest insights into COVID-19
Find out about Bentleys' response to COVID-19