COVID-19 Frequently Asked Questions

Frances Sievers

March 30, 2020

We are getting an increasing number of enquiries to clarify the Federal government and state government stimulus packages and though there is scant information on the details at times, we have put together the following FAQ to assist those struggling with the fallout of the COVID-19 measures in business and personal life.  We have tried to break up the information into sections to assist you to find the information you want to know.  If there is anything that you want clarification on, whether you are a existing client or not, please don’t hesitate to reach out to us on FaceBook, LinkedIn, Twitter and email or phone, we will be more than happy to help guide you.  As the questions come in we will continue to add them to our blog.  Follow us on FaceBook or keep coming back to our page to stay up to date. 

COVID-19 Frequently Asked Questions – Can I access my Superannuation 

If you are in any of the following categories you will be able to withdraw $10,000 of your superannuation before 30/06/2020 and another $10,000 any time before 30/06/2021 

Categories: 

The money you withdraw will be tax free 

To apply you need to go through the myGov website which will be overseen by the Australian Taxation Office.  If you have a self managed Superannuation Fund you still need to go through this channel and not just draw the funds. 

The Tax Office will make a determination based on your application and provide a notice to your super fund who will then release the funds to you.  You need to ensure that your personal details are up to date with your Superannuation Fund. 

https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Early-access-to-superannuation

COVID-19 Frequently Asked Questions – What Support is available if I employ trainees and apprentices 

A reimbursement up to a maximum of $21,000 per eligible apprentice ($7,000 per quarter) is available if you: 

If you have more than 20 full time employees: 

Assistance is for wages paid between 1 January 2020 to 30 September 2020. 

To receive the subsidy you need to apply with an Australian Apprenticeship Support Network Provider who will complete an assessment 

It will be available from early April with final claims to be lodged prior to 31 December 2020.   

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

COVID-19 Frequently Asked Questions – I am having trouble paying my obligations to the Tax Office, can I receive an extension or a payment arrangement? 

 COVID-19 Frequently Asked Questions – I pay wages, how much cashflow assistance will I receive? 

You will be entitled to receive: 

A)  Boosting Cashflow Assistance of 100% of the PAYG Withholding reported on Business Activity Statements (the withholding from employee wages at W2 on your BAS).  You will receive a minimum of $10,000 and a maximum of $50,000. 

B)  An additional payment equalling the total cashflow boost assistance you have received  

This means you will receive a total minimum of $20,000 and a maximum of $100,000 

Lets look at the two payments separately: 

Boosting Cashflow Assistance: 

Additional Payment  

You will receive the payments as a credit on your Tax Office Integrated Client Account.  You do not have to apply for the assistance.  When the credit exceeds your existing ATO liability a refund will be issued by the Tax Office generally within 14 days.  

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

COVID-19 Frequently Asked Questions – I am a sole trader with no employees.  What assistance am I entitled to? 

Sole traders, contractors and casual workers who are currently making less than $1,075 a fortnight (which is $27,950 per year) will be eligible to receive the full coronavirus supplement of $550 per fortnight.  

The supplement and expanded access to sole traders will commence from 27 April 2020.  For the first six months there will be no assets test but an income test will still apply.  You can not be receiving annual leave and/or sick leave or other employer entitlements nor can you be receiving income protection payments.   

You may also apply for Job seeker payments.  Sole traders will automatically meet the requirement to actively build their skills or look for work by continuing to develop and sustain their business.   

https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Increased-and-accelerated-income-support

COVID-19 Frequently Asked Questions – What are the changes to accelerated Depreciation for small business? 

The instant asset write off has been increased from $30,000 to $150,000 for assets either installed or ready for first use by 30 June 2020. 

https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Instant-Asset-Write-Off

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