Increased Government Assistance Announced for Covid-19

Increased Government Assistance Announced for Covid-19

Scott Morrison has proposed the following increased measures to support businesses and the community.
Please remember that they are not yet law. Royal Ascent was granted on 26 March 2020 and these measures are now law.

ATO link
The Australian Governments Economic Response to Coronavirus

Increased PAYG Withheld refunds:

Practically this means that approximately double the value of the PAYG Withheld from your employees from Jan to June does not need to be paid to the ATO, (up to a maximum of $100,000) but can be kept in the business to provide cash flow. To be eligible you need to be actively employing and lodging your Activity Statements on time.

  • Employers are now set to receive 100% of the PAYG Withheld reported in the Business Activity Statements due 28 April and 28 July and the monthly Activity Statements due 21 Apr to 21 July, up to a maximum of $50,000.
  • Eligible businesses that pay wages and salaries will get a minimum of $10,000 even if they are not required to withhold tax. The minimum payment will be applied to the entities first lodgement
  • Monthly lodgers will get 300% of their March PAYGW liability returned, to bring them in line with the benefit to the quarterly lodgers
  • A second “Additional Payment” equal to the “First Payment” is now available to eligible businesses. The “First Payment” is the total PAYGW “payments” received from the ATO, for the Activity Statement periods March to June.
    • For quarterly lodgers 50% of the “Additional Payment” will be credited 14 days after lodging each of the June & Sept Activity Statements.
    • For monthly lodgers 25% of the “Additional Payment” will be credited 14 days after lodging each of the June, July, Aug & Sept Activity Statements
  • These payments will go back into the business ATO Integrated Client Account to offset the amount owing on Activity Statements.
    • The payment will be credited to your ATO Integrated Client Account Within 14 days of lodging the relevant Activity Statements
    • The business will not receive the cash but their Activity Statement liability will be reduced.
    • If the payment puts the ATO Integrated Client Account into credit a refund for the credit amount will be paid to the business within 14 days

Early Release of Superannuation

If you are in the regretful position of not being able to provide ongoing employment to your staff, please advise them that they may be eligible for temporary early release of superannuation. Sole traders can also apply if they meet the criteria. The eligibility criteria is at the link above.

Government support for loss of personal income

The government will establish a new $550 fortnightly coronavirus supplement payment.

Permanent employees who are stood down or lose their employment, sole traders, the self-employed, casual workers and contract workers will be able to access the new coronavirus supplement under expanded access to the JobSeeker Payment, formerly known as Newstart.

The supplement will also be paid to both existing and new recipients of the JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.

Useful links

Best wishes,
Lisa Kennedy-Jones

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