Individual Support Measures



Commonwealth Government Economic response to the Coronavirus TOC \o "1-3" \h \z \u Individual Support Measures PAGEREF _Toc36116916 \h 1Individual Income Support - $550 per fortnight (Coronavirus supplement) PAGEREF _Toc36116917 \h 1Household Support Payment - $750 x 2 PAGEREF _Toc36116918 \h 2Early Access to Super – up to $10,000 x 2 (2019/2020 and 2020/2021) PAGEREF _Toc36116919 \h 3Changes to super minimum pension requirements PAGEREF _Toc36116920 \h 3ATO Business COVID-19 stimulus measures PAGEREF _Toc36116921 \h 4Business Cash Flow Assistance – Refund of PAYG Withholding PAGEREF _Toc36116922 \h 4Business Cash Flow Assistance – Apprentices and Trainees PAGEREF _Toc36116923 \h 5Business Investment Support – Increased Instant Asset Write Off PAGEREF _Toc36116924 \h 5Business Investment Support – Increased Depreciation Deduction PAGEREF _Toc36116925 \h 6Assistance for severely affected regions and sectors PAGEREF _Toc36116926 \h 6ATO Administrative Relief PAGEREF _Toc36116927 \h 6ATO Payment deferral PAGEREF _Toc36116928 \h 6ATO Remitting interest and penalties PAGEREF _Toc36116929 \h 6Supporting the Flow of Credit PAGEREF _Toc36116930 \h 8Credit / Loans Assistance PAGEREF _Toc36116931 \h 8Temporary relief for financially distressed businesses PAGEREF _Toc36116932 \h 8WA Government COVID-19 Economic response PAGEREF _Toc36116933 \h 9Relief for business and house holds PAGEREF _Toc36116934 \h 9Individual Support MeasuresIndividual Income Support - $550 per fortnight (Coronavirus supplement)Additional supplement of $550 per fortnight to existing and new recipients of eligible payment categories.Payment will apply for 6 monthsTo be eligible for Income Support Supplement, need to be eligible for/receiving:Jobseeker Payment1 (and all payments progressively transitioning to JobSeeker Payment; those currently receiving Partner Allowance, Widow Allowance, Sickness Allowance and Wife Pension)Youth Allowance Jobseeker Parenting Payment (Partnered and Single) Farm Household Allowance Special Benefit recipientsNot accessing employer entitlements (i.e. annual/sick leave)Not accessing Income Protection Insurance paymentsAccess to income support payment expanded:Jobseeker payments and Youth Allowance Jobseeker available to:Permanent employees who have been stood down or lost employmentSole tradersSelf-employedCasual workersContract workerswho meet income tests as a result of CoronavirusAsset testing waived for the period of Coronavirus supplementOne week Ordinary Waiting period waivedLiquid Asset test Waiting Period waivedSeasonal Work Preclusion Period waivedNewly Arrived Residents Waiting Period waivedIncome Maintenance Periods and Compensation Preclusion Periods continue to applyNew applicants need to register via myGov account and register your intention to claim a Centrelink payment, and verify their identity by calling Services Australia. Centrelink will contact you for more information. Existing Centrelink customers can use Centrelink online account, Express Plus apps or phone self service. Applicants for Jobseeker Payment and Youth Allowance Jobseeker will: Make an initial declaration about their identity, residency status, income and that they have been made redundant, or had their hours reduced (including to zero) as a result of the economic downturn due to Coronavirus. In the case of sole traders and the self-employed, applicants will make a declaration that their business has been suspended or had turnover reduced significantly.Applicants may also declare the amount of rent they pay in this declaration to qualify for Rent Assistance. Support Payment - $750 x 22 separate payment of $750 for current recipients of Social security, Veteran and other income support. First payment to be paid from 31/03/2020Second payment to be paid from 13/07/2020Payment tax freeTo be eligible for first payment:Reside in Australia andReceiving one of the following payments or hold one of the following concession cards from 12/03/2020 to 13/04/2020 inclusive: ? Age Pension ? Disability Support Pension ? Carer Payment ? Parenting Payment ? Wife Pension ? Widow B Pension ? ABSTUDY (Living Allowance) ? Austudy ? Bereavement Allowance ? Newstart Allowance ? JobSeeker Payment ? Youth Allowance ? Partner Allowance ? Sickness Allowance ? Special Benefit ? Widow Allowance ? Family Tax Benefit, including Double Orphan Pension ? Carer Allowance ? Pensioner Concession Card (PCC) holders ? Commonwealth Seniors Health Card holders ? Veteran Service Pension; Veteran Income Support Supplement; Veteran Compensation payments, including lump sum payments; War Widow(er) Pension; and Veteran Payment. ? DVA PCC holders; DVA Education Scheme recipients; Disability Pensioners at the temporary special rate; DVA Income support pensioners at $0 rate. ? Veteran Gold Card holders ? Farm Household AllowanceTo be eligible for second payment:Reside in Australia andReceiving one of the payments or holding a concession card per the list from the first paymentNot receiving $550 per fortnight Coronavirus supplementAnyone who receives the $550 per fortnight Coronavirus supplement will be eligible for the first $750 payment but will not be eligible for the second $750 payment. Access to Super – up to $10,000 x 2 (2019/2020 and 2020/2021)Eligible individuals can apply via myGov to access up to $10,000 of super before 1 July 2020. ATO will process application and issue determination to individual and Super Fund to release super payment. Further access up to $10,000 can be applied from 1 July 2020 until 24 September 2020.Super withdrawal tax free to individual and will not affect Centrelink/Veterans’ payment.To be eligibleUnemployed, orEligible to receive JobSeeker payment, Youth Allowance for JobSeeker, Parenting payment, special benefit, Farm Household allowance, orOn or after 1 January 2020, Made redundant, orWorking hours reduced by 20% or moreSole trade and your business has been suspended or your turnover reduced by 20% or more to super minimum pension requirementsReduction of minimum pension drawdown by 50% for account-based pensions and similar for 2019/2020 and 2020/2021 Business COVID-19 stimulus measuresBusiness Cash Flow Assistance – Refund of PAYG WithholdingReceive payment of 100% of PAYG Withholding paid, up to maximum of $50,000 per entity for March and June 2020 quarter BAS. Additional payment being introduced in July-October 2020 period equal to payment employer has received.Minimum payment of $10,000 even if no tax withheld, as long as you have lodged salary and wages amount. Maximum of $100,000 from the two payments. Tax free to employers.Will be credited to Integrated Client Account from 28/04/2020 once BAS lodged. Credit will not be made any earlier than 28/04/2020. If credit on account, refund will be processed by ATO within 14 days. To be eligible for 100% refund of PAYGW:Held an ABN on 12/03/2020 and continue to be active (does not apply to Charities)Registered for PAYG Withholding, i.e. employs workersMade eligible payments (salary/wage, director fees, eligible retirement/termination payments, compensation payments, voluntary withholding for contractors) you are required to withhold from, i.e. paid wages/salaries, even if you have not had to withhold any tax from those wages/salaries. SME with annual turnover under $50 million (based on prior year turnover)Active eligible employers establish prior to 12/03/2020, i.e. registered for PAYGW before 12/3/2020. EITHER:derived business income in the 2018–19 income year and lodged your 2019 tax return on or before 12?March 2020made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1?July 2018) and lodged the relevant activity statement on or before 12?March 2020.Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020. Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgments. To provide a similar treatment to quarterly lodgers, the payment for monthly lodgers will be calculated at three times the rate (300 per cent) in the March 2020 activity statement.To be eligible for additional payment in July-October 2020:Business must continue to be activeFor employers who received the minimum $10,000 credit in the first period, they will not receive another payment unless their PAYG Withholding exceeds $10,000 over the relevant periods. Monthly IAS lodgers will receive additional payment as a credit in instalments of 25% of initial total payment received. Maximum of $50,000. Quarterly BAS lodgers will receive additional payment as a credit in instalments of 50% of initial total payment received. Maximum of $50,000. Cash Flow Assistance – Apprentices and TraineesSubsidy of 50% of apprentice’s or trainee’s wage paid during 9 months from 1/01/2020 to 30/09/2020. Reimbursement up to maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter)Provided through National Apprentice Employment Network.Register for subsidy from early April 2020.Final claim for payment must be lodged by 31/12/2020. To be eligible:Small business employing less than 20 full-time employees Retain apprentice/traineeApprentice/Trainee employed through business as at 01/03/2020 Investment Support – Increased Instant Asset Write OffInstant Asset write off threshold increased from $30,000 to $150,000 per assetAccess for businesses with turnover of less than $500 million (from $50 million)Available until 30/06/2020Threshold reverts back to $1,000 from 1/07/2020To be eligible:Business turnover less than $500 millionPurchase of new or second-hand assets first used or installed ready for us by 30/06/2020Business Investment Support – Increased Depreciation DeductionIncrease of depreciation rate to 50% for new asset purchases eligible for depreciation under Division 40 of ITA Act 1997, e.g. plant & equipment. Access for businesses with turnover of less than $500 million (from $50 million)Available until 30/06/2021Does not apply to second -hand assets, buildings or other capital works depreciable under Division 43. To be eligible:Business turnover less than $500 millionPurchase of new assets first used or installed ready for us by 30/06/2021 for severely affected regions and sectorsApplies to affected industries, e.g. tourism, agriculture, education Administrative ReliefAbility to defer payment of income tax, FBT and excise payments until 12 September 2020Ability to stop interest accruing on your tax liabilities, or low interest payment arrangementsConsideration of reversing interest and penalties charged after 23/01/2020Allowing businesses to vary pay as you go instalment amounts to zero for the March 2020 quarter. Business that vary to zero can claim a refund for any instalments made for the September 2019 and December 2019 quarters. Ability to change your BAS reporting cycle (GST only) from quarterly to monthly to access monthly GST refunds (needs to be changed at the start of a quarter to take affect from 01/04/2020 AND have to continue on monthly reporting for 12 months before reverting back to quarterly) Not applicable to businesses with GST turnover of more than $20 millionArrangements will need to be made with the ATO to defer payments or lodgmentsATO Payment deferral?Generally, our debt management policy, as set out in?PS LA 2011/14 General Debt collection powers and principles, applies in relation to new measures. In most cases, we will not defer the due date for payment merely because the new measure imposes new payment obligations. However, we will consider arrangements to pay by instalments, depending on the measure or the taxpayer's circumstances. If you or your business has been affected by COVID-19, we can work with you to defer some payments and vary instalments you have due. These include your income tax, activity statement, pay as you go (PAYG) instalments, FBT and excise payments by up to six months.ATO Remitting interest and penalties If your business is affected by COVID-19, we will consider remitting interest and penalties incurred after 23 January 2020. the Flow of CreditCredit / Loans AssistanceGovernment assistance to get funding for cash flow needsGovernment to provide 50% guarantee to SME lenders to support new short-term unsecured loans to SMEsTemporary exemption from responsible lending obligations for lenders providing loans to small business customers. relief for financially distressed businessesTemporary increase in threshold for creditors issuing statutory demand on company and temporary increase in time period companies have to response to statutory demands they receiveTemporary increase in the threshold for a creditor to initiate bankruptcy proceedings and increase in time period for responseTemporary relief for directors from any personal liability for trading while insolventTemporary flexibility in the Corporations Act 2001 to provide targeted relief for companies from provisions of the Act to deal with unforeseen eventsATO temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups Government COVID-19 Economic responseRelief for business and house holds$607 million stimulus package to support WA households and small businesses in the wake of COVID-19$402 million to freeze household fees and charges until at least July 1, 2021Freeze will apply to entire 'household basket', including electricity, water, motor vehicle charges, emergency services levy and public transport faresEnergy Assistance Payment (EAP) doubled to $600 to support vulnerable Western Australians, including pensioners$114 million in additional measures to support small businessesSmall businesses that pay payroll tax will receive a one-off grant of $17,500$1 million payroll tax threshold brought forward by six months to July 1, 2020Businesses impacted by COVID-19 can defer payroll tax payments until July 21, 2020Building on $760 million announced in the past few months to stimulate economyStimulus measures made possible due to McGowan Government's responsible financial management and strong budget surplus ................
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