Unpaid Trust Distributions: ATO's Rulings vs. Recent AAT Decision and What It Means for 2023
It has long been the ATO’s practice to treat a trust’s unpaid present entitlements (“UPE”) to a company as a loan for th...
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.
Click on the buttons below to learn more about the relevant measures.
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.
Available to those employees from 1 March 2020 (or stood down since 1 March 2020):
Eligible employers
Additional information
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
12 March 2020 to 30 June 2020
Business with turnover below $500 million (grouped)
Asset costing up to $150,000 exclusive of GST
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
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
Payment deferrals
Changing GST reporting cycle
Vary pay as you income tax instalments
Remitting interest and penalties
Low interest payment plans
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
Australian Apprenticeships Incentive Programs Guideline Document:
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
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
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
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
Refund of payroll tax for 2 months
Payroll tax holiday for 3 months
Deferral of paying payroll tax for the 2020 calendar year
$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
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
*If you have operations in multiple States please call your Ulton Advisor for tailored assistance as all State Governments are offering substantial business assistance
There is no better advertisement campaign that is low cost and also successful at the same time.
It has long been the ATO’s practice to treat a trust’s unpaid present entitlements (“UPE”) to a company as a loan for th...
Small businesses with an aggregated turnover of less than $50 million will be able to claim a bonus deduction equal to 2...
From the 1 July 2023 your wages data collated from your Single Touch Payroll (STP) lodgments will be prefilled into your...