The key business focused support packages available are summarised below, please click on the headings to navigate to the most appropriate assistance for your business.

While all care was taken to include all major initiatives the landscape is changing daily and from time to time items on this list may change – remember we are only a phone call away.

To read a summary of relief measures available for individuals, please click here. 

Available Measures 

Click on the buttons below to learn more about the relevant measures.

Business Subsidies

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Australian Tax Office 

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Australian Apprenticeships

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Reserve Bank of Australia and APRA

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Temporary relief for financially distressed businesses

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Queensland State Government Initiatives

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Business Subsidies

JobKeeper Payment (Round 3 stimulus - announced 30 March 2020)

The JobKeeper payment is intended to provide wage subsidies to businesses that are significantly affected by COVID-19. The Government has announced its intention to pass additional legislation to introduce this new measure. If legislation is enacted, support will be directed to employers to pass on to employees. (Source: ATO

Here's an outline of the newly announced measure.

  • $130 billion over next 6 months - $1,500 per fortnight per employee JobKeeper Payment.

Available to those employees from 1 March 2020 (or stood down since 1 March 2020):

  • Full and part-time employees
  • Sole traders
  • Casuals who have been with employer for longer than 12 months

Eligible employers

  • Eligible employers turnover decreased by 30% for business making < $1 billion
  • Eligible employers turnover decreased by 50% for business making > $1 billion

Additional information

  • $320+ billion of federal support so far -  16.4% GDP
  • Cash flow mid may – backdated to now.
  • Estimated to protect 6 million jobs.

More information: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_0.pdf

https://treasury.gov.au/sites/default/files/2020-04/JobKeeper_frequently_asked_questions.pdf

https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_0.pdf

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Australian Tax Office

 

Instant asset write-off increased

  • 12 March 2020 to 30 June 2020

  • Business with turnover below $500 million (grouped)

  • Asset costing up to $150,000 exclusive of GST

More info: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/

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Backing business incentive – 50% immediate deduction for all new assets

  • 12 March 2020 to 30 June 2021 

  • Business with turnover below $500 million (grouped) 

  • Asset costing any amount; cannot be used in conjunction with Instant Asset Write-Off

More info: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Backing-business-investment---accelerated-depreciation/

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Boosting cash flow for employers - tax free credit or refund against PAYG withheld from wages and salaries

  • Pay As You Go Withholding Credits/Refunds - March quarterly and monthly lodgements to September Quarterly and Monthly lodgements 

  • Business that was an employer as at 12th March 2020 

  • Business with turnover below $50 million (grouped)

  • Tax Free 

  • $20,000 to $100,000 split into two periods capped at $50,000 each

  • ATO has today announced they will pursue those who “artificially” change their payroll to access the boost or to increase their entitlement

More info: https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/

 

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Administrative ATO relief for all businesses

  • Payment deferrals 

  • Changing GST reporting cycle 

  • Vary pay as you income tax instalments 

  • Remitting interest and penalties 

  • Low interest payment plans

More info: https://www.ato.gov.au/Individuals/Dealing-with-disasters/In-detail/Specific-disasters/COVID-19/?page=2#We_will_work_with_you

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Australian Apprenticeships

 

Supporting employers of apprentices and trainees

  • Support for employers of apprentices between 1st January 2020 and 30th September 2020

  • Up to $21,000 per apprentice or trainee payable by 3 quarterly instalments of $7,000

  • Initial setup must be business with less than 20 employers as at 1 March 2020

  • Follows employee if small business cannot keep them on

  • Subsequent employer of any size can continue to claim support

  • Register from 2nd April 2020, final claim by 31st December 2020

More info: https://business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Supporting-apprentices-and-trainees

Australian Apprenticeships Incentive Programs Guideline Document: 

https://www.australianapprenticeships.gov.au/sites/default/files/2020-03/FINAL%20Australian%20Apprenticeships%20Incentives%20Program%20Guidelines%20-%20effective%202%20April%202020.pdf

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Reserve Bank of Australia and APRA

 

Coronavirus SME loan guarantee scheme

  • 50% guarantee of new loans made by eligible lenders to SMEs including sole traders

  • Businesses with turnover up to $50 million

  • Maximum total size of loans of $250,000 per borrower

  • Loans up to 3 years, first 6 months repayment holiday

  • Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan

More info: https://treasury.gov.au/coronavirus/sme-guarantee-scheme             

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Access to credit for small business

  • Responsible lending obligations relaxed for next 6 months 

  • Lender not required to spend time and resources confirming business use

More info: https://treasury.gov.au/coronavirus/business-investment

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Temporary relief for financially distressed businesses

 

Creditor statutory demand threshold and time to act changes

  • Temporary change to the Corporations Act 2001

  • Duration is 6 months

  • Threshold for creditor statutory demand increased from $2,000 to $20,000

  • Time limit to respond to creditor statutory demand changed from 21 days to 6 months

  • Small business retain right to chase debtors however

More info: https://business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Temporary-relief-for-financially-distressed-businesses

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Temporary relief from directors’ personal liability for trading while insolvent

  • To curb insolvencies via voluntary administration/liquidation, due to Coronavirus caused economic down turn

  • 6 month period whereby directors cannot be prosecuted for insolvent trading for incurring debt during the downturn

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Queensland State Government Initiatives

 

Payroll tax relief

  • Refund of payroll tax for 2 months

  • Payroll tax holiday for 3 months

  • Deferral of paying payroll tax for the 2020 calendar year

More info: https://www.business.qld.gov.au/running-business/employing/payroll-tax/lodging/coronavirus-tax-relief

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QLD Covid-19 jobs support loans

  • $500 million loan scheme

  • Maximum loan up to $250,000 for the purposes of “carrying on”

  • No repayments or interest charged for the first year

  • Plus two years interest only

  • 2.5% fixed interest rate

  • 10-year term of loan

  • Open until 25 September 2020 or until funding is fully committed

More info: http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme

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$3 billion for industry, workers and economy wide

  • Includes Payroll tax relief and Jobs Support Loans (listed above)

  • Assistance for retraining

  • Job-matching

  • Transition support for workers into high-demand industries necessary to get through the crisis: health care, agriculture, food production, transport, cleaning and mining

  • Industry support package for large businesses that make significant contribution to Qld or significant in a regional context

  • $500 rebate for electricity rebate for small to medium businesses

  • Government premises 6 month rental holiday

  • Waiver of tourism and fisheries’ licenses, fees and permits

  • Assistance to tourism operators

  • Assistance to exporters to source alternative markets and participate in online markets

  • Supply chain support

More Info: https://www.qld.gov.au/__data/assets/pdf_file/0021/122808/covid-19-factsheet.pdf

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*If you have operations in multiple States please call your Ulton Advisor for tailored assistance as all State Governments are offering substantial business assistance

 

 

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