The authorities have declared changes to the scheme of JobKeeper. The workers, who missed out JobKeeper as they were unemployed on 1 March 2020 could be eligible now. These alterations will enable the employees on July 1, 2020, to get JobKeeper payment from August 3 if they will stand eligible. JobKeeper will get extended even after September 27, 2020. The employers will be required to reassess their eligibility with actual GST turnover for September 2020 and December 2020 quarter, to get JobKeeper from September 28.
Many of the businesses will make use of BAS (Business Activity Statement) for assessing eligibility. BAS will not be generally due till a month after ending of the quarter, the eligibility will be required to get accessed prior to BAS reporting deadlines to meet wage conditions for the workers. The ATO can extend the time that a body has to pay its employees to meet the wage conditions.
The payment rates for Jobkeeper will be reduced and split to lower and higher rates. It depends upon the number of hours that an eligible employee worked during the 4-week test period to access the higher or lower rate. The higher rates shall be applicable to the employees who worked a minimum of 20 hours a week in four weeks of pay periods before March 1, 2020, or July 1, 2020. The higher rate is $1200 each fortnight and between January 4 and March 28, 2021, it is $1000 each fortnight. The lower rate is $750 between September 28, 2020-January 3, 2021, and $650, between January 4, 2021 – March 8, 2021.
Cashflow Boost Payments
You will get a cash flow boost from June to September quarters of the the amount same as that you got in first cashflow boost tranche. The cashflow boost will be paid in two similar payments for the months of June and September, by reporting quarterly. The cashflow boost is provided in four equal payments, by reporting monthly.
The cashflow boost is applicable to eliminate any liabilities in the same reporting period and any excess amount will be paid as a cash refund from the side of ATO.
Assistance for Business Employing Apprentices and Trainees
Job Trainer gives a reimbursement of 50% to eligible employers for the cost of trainee wages to $7,000 each quarter. The small businesses that are having less than 20 employees the apprentice had to be employed on March 1, 2020, or on July 1, 2020, for claims after this date.
The medium-sized businesses that are having less than 200 employees, the apprentice had to be employed on July 1, 2020, the claim will open on October 1, 2020. The subsidy will end on March 31, 2021.
Support based on State and territory
Every State and Territory has some form of support accessible to certain businesses impacted by COVID-19, in spite of general waivers, reductions or rebates on some Government licensing and fees.
Australian Capital Territory
|Rate deferrals||Rate deferrals for commercial property owners affected by COVID-19.||1 April 2021|
|Payroll tax deferral||The ACT businesses with Australian wages of up to $10 million stand applicable to defer their 2020-21 payroll tax, till July 1, 2022.|
New South Wales
|Payroll tax deferral||The option of deferring 2019-20 payroll tax to October 2020. Installment plans can be entered into after October 2020.
The payroll tax threshold has increased to $1million for 2020-21.
|Small business recovery grant||Grants of between $500 and $3,000 to help small businesses reopen safely.||16 Aug. 2020|
|Export assistance grants||Up to $10,000 for almost 1,000 small or medium NSW export businesses.|
|Business hardship package||A package of concessions including payroll tax waiver or deferral, council rates, utilities, and rate concessions.||30 Sept. 2020|
|Adaption grant||Funding of up to $10,000 for regional micro and small businesses to adapt and sustain operations.||When allocation exhausted|
|Payroll tax relief||Payroll tax deferrals for the 2020 calendar year.||31 Dec. 2020|
|Support when employing apprentices||A range of grants and support when you hire an apprentice – up to $5,000 for hiring an apprentice, $1,500 on equipment reimbursement, and up to $5,200 off the Group Training Organisation charge out rate.||Generally 31 Aug. 2020|
|Small business sustainability||Grants of up to $5,000 for businesses with fewer than 20 employees to reopen and rebuild.||24 Aug. 2020|
|Business Support Fund||Grant of $10,000 for workers in metropolitan Melbourne and Mitchell Shire.
The grant of $5,000 in regional local government areas.
|14 Sept. 2020|
|Regional Tourism Accommodation Support||Up to $225 per night up to a maximum of $1,125 per bookable accommodation for canceled bookings during stage 3 restrictions.||19 Aug. 2020|
|CBD Business Support Fund||$20m fund for CBD businesses. No details available as yet but register your interest.|
|Night-time economy support||$30m fund for hospitality businesses. No details available as yet but register your interest.|
|Payroll tax deferrals||Businesses with payrolls up to $10 million can defer their liabilities for the first half of the 2020-21 financial year.|
|Payroll tax refunds||An emergency tax relief refund of payroll tax that was paid in the 2019-20 stand claimable by eligible businesses.|
|International competitiveness co-investment||Matched funding of between $50,000 and $100,000 for existing exporters (under 200 employees) of food, beverages, and services into Asia.||12 Aug. 2020|
|Payroll tax relief||The tax-free threshold increased to $1m on 1 July 2020.
Grants of $17,500 are given to the workers with wages that are taxable and are between $1million and $4million in 2018-19.
|Support when employing apprentices||A one-off payment of $6,000 for an apprentice and $3,000 for a trainee employed from 1 July 2020.||30 June 2021|
|The incentive to employee apprentices||The incentive of up to $8,500 for employing an apprentice or trainee from 1 July 2019.|
|Local Capability Fund||Fund to increase the capability of SMEs for planning, improvements to internal infrastructure, plant and equipment, and training. Current rounds include cost recovery for PPE manufacturing (up to $500k) and feasibility (up to $20k), and general recovery and growth (up to $100k) for supply to certain industries.||30 June 2021|
Assistance for individuals
If you are influenced by COVID-19, Services Australia has an online payment guide that assists you through the payments available.
Pandemic Leave Disaster Payment – Victoria
You could be eligible for $1500 payment if you have self-isolated or quarantined yourself due to COVID-19 and are incapable to earn.
Limiting access to income support
The assets test and the Liquid Assets Waiting Period will be reintroduced for access to income support payments from September 25, 2020, and shall be applicable to people with assets like savings over $5500 in case of singles and $11000 in case of singles with children.
Moreover, partner income testing will initiate from September 25, 2020, with higher thresholds than those before COVID-19. Consequently, you will not stand eligible for income support if you are not earning an income but your partner earns $3,086.11 each fortnight or $80,238.89 per annum. The Job seeking requirements that were stopped from March 24, 2020, have been started from June 9, 2020.
The Coronavirus supplement will start into effect, on a decreased rate of $250 each fortnight (from $550), from September 25th, 2020 till December 31st, 2020.
|27 April to 24 Sept. 2020||$550 per fortnight|
|25 Sept. to 31 Dec. 2020||$250 per fortnight|
Early access to superannuation
The data from the Australian Prudential Regulation Authority describes that more than $30 billion were taken from superannuation. If you are a Citizen or permanent resident of Australia or New Zealand, you can apply to get $10000 of superannuation from July 1, 2020, to December 31, 2020, if the working hours reduced by 20% or more and you have been drastically influenced by COVID-19. You must not access superannuation if you are not facing any hardships. You could have to bear a penalty of up to $12000 for giving misleading information.
SMSF and COVID-19
Coronavirus has influenced many of the SMSF’s. A glance at the basic issues:
SUPERANNUATION’S EARLY RELEASE
Under Measures of COVID-19, there are some crucial steps that the trustees are required to take if a member of the fund wants to access up to $10,000 of early superannuation. The trustees will be required to prove that the deed allows for early release, they did not receive any funds from ATO and the member meets the criteria of eligibility.
RELIEF FROM TENANT RENT
It is a breach of the law of superannuation to set up the rent for a tenant which is less than the market value in SMSF. the situation could be trickier if the relief of rent is given to the related party since the difference between the rent charged and the market value of that can amount to loan.
The ATO has stated that for financial years 2019-20 and 2020-21, it shall not take any actions where the rental relief is given on the terms of arms-length. The relief is collateral with the National Cabinet Mandatory Code of Conduct for the guidelines of commercial leasing having set the timeframe.
RELIEF FOR PARTY LOANS
It would be a breach of superannuation rules if SMSF has less borrowing arrangements with a related party and that party gives repayment relief. If the relief is given on reasonable terms, the ATO will accept it.
DIMINISHED ASSET VALUE
You must notice that whether the current asset allocation is moving inconsistency with the investment strategy of the fund when the assets of SMSF falls in value.
If you are required to sold assets and maintain a capital loss, like a loss on residential real estate, this loss can be considered offset against gains in capital. If Capital Loss > Gains, the loss can be further carried and are applicable in future capital gains. For unrealized gains, no deductions are available.
MINIMUM PENSION PAYMENTS
Minimum drawdown rates for the 2019-20 and 2020-21 years has been halved, for funds drawing a pension.
|Age||Default min. drawdown rates||2019-20 & 2020-21 reduced rates|
|95 or more||14%||7%|
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