Oaktree Accounting endeavours to keep you
informed on all the latest Government Stimulus Packages.
PLUS – we are here to assist you with a plan to get through COVID-19

First here are some useful links

JobKeeper Extended Fact Sheet

Individuals – How to claim JobSeeker payments
(Call Centrelink on 1300 169 468 to obtain a CRN if you have never claimed Centrelink payments)

Businesses – Register for JobKeeper

If you have a bank or other loan provider repayment commitments, contact your provider as some are deferring repayments for 6 months during COVID-19. Ensure you understand all the deferring conditions. Ask what the arrangements will be after you reinstate your loan repayments. Seek professional advice!

If you require some assistance with a ‘Business Continuity Plan’ please CLICK HERE for your FREE
Downloadable Microsoft Word Template. We also have a service available where we assist you to complete it and offer coaching to ensure you  either keep your business trading, go into hibernation, or get ready early to kick-start your business when this interruption is over.
Some marketing tips too – Click here  (we will be updating content constantly).

Below is a timeline of Government Stimulus and other important announcements regarding COVID-19

08 April 2020

JobKeeper Legislation Passed Today.

CLICK HERE to be redirected to the up to date ATO information regarding JobKeeper.

07 April 2020

The ATO has announced a temporary and simplified short cut method for individuals to claim expenses that relate to ‘working from home’ due to COVID-19.

07 April 2020

INFOGRAPHIC – If you have a suspected or confirmed case of COVID-19 at work (swa.gov.au/coronavirus)

31 March 2020

Assistance for WA Small & Medium-sized Businesses
which are experiencing financial hardship due to COVID-19

One-off $2500 credit on electricity bills for 95,000 small businesses – available for customers
that consume less than 50MWh per annum.

Power and water disconnections will not occur and interest will not be charged on deferred
payments until 30 September 2020.

Payroll tax will be waived for four months for small-to-medium sized business with
national annual wages of under $7.5 million.

A range of licence fees will be waived for small and medium-sized businesses in
impacted industries.

Businesses can apply for interest-free payment arrangements and for late payment
penalties to be waived for a range of taxes and duties.

30 March 2020

NEW JobKeeper and Increase in Partner Salary

This morning, the Prime Minister and the Federal Treasurer made an announcement with a new stimulus package for Australian workers and small business.

In summary the announcement said:

The Government will provide $1,500 per fortnight per employee for up to 6 months.

Employers will be eligible for the subsidy if their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month)

This stimulus measure is estimated to cost $130 billion.

Employers must elect to participate in the scheme. Registration will be managed by the ATO.

Applies to employees on the books as at 1st March

Includes full-time, part-time, long-term casuals and stood down employees.

Self-employed individuals will be eligible to receive the JobKeeper Payment where they have suffered or expect to suffer a 30 per cent decline in turnover relative to a comparable prior period (of at least a month).

The subsidy is equivalent to approx. 70% of the median wage, and 100% of wage in industries most hit (e.g. employees in hospitality)

Managed through ATO via STP to make sure payments are passed to employees

No SGC obligation on job keeper payments

First payments will be made 1st week May but backdated to today 30th March

You can to use this link to register interest and to receive updates on registration / application process.
The government also announced an increase in the JobSeeker partner salary limit to $79,762.
This is just a summary of the announcements. This has not yet been legislated so we don’t know the finer details. That information will be forthcoming in the next few days/weeks.

As more information comes to hand regarding this latest announcement, we will be in contact with you.

22 March 2020

Click here for full details of this second stimulus package

12 March 2020

Four part $17.6 billion economic plan to keep Australian jobs, keep business in business and support households.

-Supporting business investment

-Providing cash flow assistance for business to stay in business and keep staff

-Targeted support for the most severely affected sectors, regions and communities

-Household stimulus payments that will benefit the wider economy

Delivering support for business investment:

$700 million to increase the instant write off threshold from $30,000 to $15,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up to $50 million) until 30 June 2020. For eg. assets that may be able to be immediately written off are a concrete tank for a builder, a tractor for a farming business, and a truck for a delivery business.

$3.2 billion to back business investment by providing a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.

The measures are designed to support business sticking with investment they had planned, and encouraging them to bring investment forward to support economic growth over the short term.

Cashflow assistance for businesses

$6.7 billion to Boost Cash Flow for Employers by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020. The payment will be tax free. This measure will benefit around 690,000 businesses employing around 7.8 million people. Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.

$1.3 billion to support small businesses to support the jobs of around 120,000 apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 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 that employs that apprentice.

Stimulus payments to households to support growth

$4.8 billion to provide a one-off $750 stimulus payment to pensioners, social security, veteran and other income support recipients and eligible concession card holders. Around half of those that will benefit are pensioners. The payment will be tax free and will not count as income for Social Security, Farm Household Allowance and Veteran payments. There will be one payment per eligible recipient. If a person qualifies for the one off payment in multiple ways, they will only receive one payment.

Payments will be from 31 March 2020 on a progressive basis, with over 90 per cent of payments expected to be made by mid-April.

Assistance for severely affected regions

$1 billion to support those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education. This will include the waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and Commonwealth National Parks. It will also include additional assistance to help businesses identify alternative export markets or supply chains. Targeted measures will also be developed to further promote domestic tourism. Further plans and measures to support recovery will be designed and delivered in partnership with the affected industries and communities.

The Government is also offering administrative relief for certain tax obligations, including deferring tax payments up to four months. This is similar to relief provided following the bushfires for taxpayers affected by the Coronavirus, on a case-by-case basis.  The ATO will set up a temporary shop front in Cairns within the next few weeks with dedicated staff specialising in assisting small business. In addition, the ATO will consider ways to enhance its presence in other significantly affected regions to make it easier for people to apply for relief, including considering further temporary shop fronts and face-to-face options.

The Government’s economic support package is proportionate, timely and scalable to respond to the economic challenges presented by the spread of the Coronavirus.

Through our response today and the actions we have taken to bring the Budget back to balance over the last six and a half years, Australians can be confident that our nation is one of the best prepared to respond to the economic impacts of the Coronavirus.