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Corona Virus Update 1 April 2020

Coronavirus News Update

 

Proposed JobKeeper payment

This proposal is still before parliament and final information will not be known until it has been legislated.

The JobKeeper payment is a subsidy that will be paid through the tax system to eligible employers and self-employed individuals impacted by the Coronavirus. Eligible participants will be able to claim a subsidy of $1,500 per fortnight, per eligible employee, from 30 March 2020 (with payments commencing from the first week of May 2020), for a maximum period of six months. This subsidy will be paid by the ATO monthly in arrears and will ensure that an eligible employee receives a gross payment (i.e., before tax) of at least $1,500 per fortnight. Self-employed individuals (i.e., businesses without employees) can also qualify to receive the JobKeeper Payment.

Employers will be eligible for the JobKeeper subsidy where:

  • for a business with a turnover of less than $1 billion – its turnover will be reduced by more than 30% relative to a comparable period a year ago (of at least a month); or
  • for a business with a turnover of $1 billion or more – its turnover will be reduced by more than 50% relative to a comparable period a year ago (of at least a month); and
  • the business is not subject to the Major Bank Levy.

Self-employed individuals (i.e., businesses without employees) and not-for-profit entities (including charities) that satisfy the above requirements will be eligible to apply for the JobKeeper Payment.

As soon as more information is available in relation to this package we will communicate this to you.

Link to Treasury website for information on the JobKeeper stimulus package
https://treasury.gov.au/coronavirus/jobkeeper

Link to the ATO website on to register for the JobKeeper payment
https://www.ato.gov.au/general/gen/JobKeeper-payment/?=redirected_JobKeeper

Tasmanian Government Support for small businesses

The Tasmanian Government has announced numerous measures to help Small Businesses through the impact of the COVID-19 restrictions.
These include:

  • Access to a Small Business Emergency Support Grant of $2,500 for affected industries by the COVID-19 social distancing measures
  • Access to a longer-term Small Business Hardship Grant of $15,000
  • Access to a Business Continuity Grant for $750 for advice from a CA or CPA in relation to maintaining your business throughout this time
  • Business vehicle registration relief
  • A Business Support Loan Scheme where loans from $20,000 to $250,000 to assist eligible business for supporting business continuity, viability and sustainability during the Coronavirus period.
  • Payroll tax is waived for eligible businesses who have been affected by the downturn.

Link to the Tasmanian Government for information of state based stimulus
https://www.business.tas.gov.au/covid-19_business_support_packages

Mainland clients please contact John or Emma directly to go through your state based packages and your eligibility options.

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

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Source: Thomson Reuters (Professional) Australia Limited

Important: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.

Halys & Sells
29 Salamanca Place
Hobart 7000
Tasmania, Australia

Phone: 03 6223 4456

Liability limited by a scheme approved under Professional Standards Legislation.