JobKeeper Payment
You may be eligible to receive the JobKeeper Payment if your turnover has been reduced because of the coronavirus. Following registration by the eligible business, the Government will provide $1,500 per fortnight per eligible employee until 27 September 2020.
The JobKeeper Payment is available to eligible employers, businesses including companies, partnerships, trusts and sole traders, not-for-profits and charities.
The intent of the JobKeeper Payment is to enable any eligible self-employed person get a wage subsidy regardless of what business structure they use, where:
- the business operates through a sole trader structure – one owner can be nominated to receive the JobKeeper Payment
- the business operates through a partnership – one partner can be nominated to receive the JobKeeper Payment
- the business operates through a company – one director can be nominated to receive the JobKeeper Payment
- the business has shareholders who provide labour to the company and receive dividends in lieu of wages – one such shareholder can be nominated to receive the JobKeeper Payment
- the business operates through a trust – one individual beneficiary (that is, not a corporate beneficiary) can be nominated to receive the JobKeeper Payment
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Temporary cash flow support
Employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being $50,000 and the minimum payment being $10,000.
An additional payment is also being introduced equal to the total of all of the Boosting Cash for Employers payments received. This means that eligible businesses will receive at least $20,000 up to a total of $100,000 under both payments.
Not-for-profit entities will also be eligible.
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Assistance to help pay the wages of apprentices or trainees
Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer.
Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).
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Casual employees
If you employ a casual employee and they can’t work because they become sick or need to self-isolate, or their income has been otherwise impacted by the economic downturn caused by the coronavirus, they may be eligible for income support payments.
The government is making these payments quicker to access by waiving the usual waiting period in certain circumstances.
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Temporary relief for financially distressed businesses
The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.
The package also includes temporary relief for directors from any personal liability for trading while insolvent, and providing temporary flexibility in the Corporations Act 2001 to provide temporary and targeted relief for companies from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus health crisis.
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The increased instant asset write-off
Under normal circumstances, individual assets less than $30,000 are eligible for the instant asset write-off. The Government has lifted this threshold to $150,000 for assets that are either installed or ready for use by 30 June 2020.
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Backing Business Investment (BBI) / Accelerated depreciation deduction arrangements
For a time limited 15-month period investment incentive are now in place to support business investment, by allowing accelerated depreciation deductions.
Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of an eligible asset on installation, with existing depreciation rules applying to the balance of asset’s cost.
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Increased and accelerated income support
The Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months.
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Assistance for affected regions, communities and industries
The Government has created an initial $1 billion support fund to provide assistance to industries and regions severely affected by the economic impacts of Coronavirus.
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Small to Medium Enterprise Guarantee Scheme
This scheme will provide businesses with funding to meet immediate cash flow needs, but further enhancing lenders’ willingness and ability to provide credit. Businesses with a turnover of up to $50 million will be eligible to receive these loans.
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Tax support
The Australian Tax Office is providing relief for some tax obligation for businesses affected by the outbreak, on a case by case basis.
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Temporary relief or financially distressed businesses
The Australian Government will make a number of changes to the Bankruptcy Act 1966. The threshold for the minimum amount of debt required for a creditor to initiate bankruptcy proceedings against a debtor will temporarily increase from its current level of $5,000 to $20,000. This will apply for 6 months.
Failure to respond to a bankruptcy notice is the most common act of bankruptcy. The time a debtor has to respond to a bankruptcy notice will be temporarily increased from 21 days to 6 months. The extension will give a debtor more time to consider repayment arrangements before they could be forced into bankruptcy. This will apply for 6 months.
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