We’ve been working around the clock for a couple of weeks now to ensure the properties and our community are safe & healthy. We remain open & committed to our members who rely on us to underpin their businesses and understand intently that every job in Australia is essential (even more so now).
We’ve been paying attention to everything the State & Federal Government have been issuing and have put together a list where businesses can seek out grants, funding & stimulus.
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IMPORTANT: Please note this information in for general use and has been collated from various sources and can be subject to change. More information about relief concessions and requirements are being released every day. This email should not be considered formal advice from CreativeCubes.Co and is for guidance only. You should contact a qualified accountant for formal advice and to discuss your particular circumstances.
To do our part to support our members we’re offering 30% discount on membership fees in April to businesses continuing their membership with CreativeCubes.Co and experiencing hardship as a result of the COVID-19 Pandemic.
Who is eligible for this?
Sole traders, partnerships, trusts and companies, not-for-profits (including charities), who employee people and have a turnover of less than $50m.
The payments will only be available to active eligible employers established prior to 12 March 2020.
However, charities which are registered with the Australian Charities and Not-for-profits Commission will be eligible regardless of when they were registered, subject to meeting other eligibility requirements. This recognises that new charities may be established in response to the Coronavirus pandemic.
What is it?
Initial Boosting Cash Flow Payment
- Eligible businesses who withhold tax from their employee’s salary and wages will receive a payment equal to 100% of the tax withheld up to a maximum amount of $50,000 up to 30 June 2020.
- Eligible businesses that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax for the same period.
This payment will be delivered by the ATO as a credit via lodgement of the Business Activity Statements as from April 28, 2020.
To qualify for the additional payment, the entity must continue to be active.
The additional payments will be again be delivered as an automatic credit in the activity statement system. This will be equal to a quarter of their total initial Boosting Cash Flow upon the lodgement of their June 2020, July 2020, August 2020 and September 2020 activity statements (up to a total of $50,000).
For quarterly activity statement lodgers, the additional payments will be will be equal to half of their total initial Boosting Cash Flow upon the lodgement of their June 2020 and September 2020 activity statements (up to a total of $50,000).
How it works.
Monthly IAS payers – people who pay monthly.
Example: Business A reports withholding of $8,788 for their employees on each of the monthly Business Activity Statements (BAS).
Business A will be entitled to receive:
- A credit of $26,364 for the March period, equal to 300 per cent of their total withholding.
- A credit of $8,788 for the April period
- A credit of $8,788 for the May period
- A credit of $6,060 for the June period, up to the $50,000 cap.
- An additional payment of $12,500 for the June period, equal to 25 percent of their Initial Boosting Cash Flow for Employers payments.
- An additional payment of $12,500 for the July period, equal to 25 percent
- An additional payment of $12,500 for the August period, equal to 25 percent
- An additional payment of $12,500 for the September period, being a final 25 percent .
Quarterly BAS payers
Example: Business A has withholding of $26,364 for the March 2020 quarter.
Business A will be entitled to receive:
- A credit of $26,364 for the March period, equal to 100 per cent of their total withholding.
- A credit of $23,636 for the June period, up to the $50,000 cap.
- An additional payment of $25,000 for the June period, equal to 50 percent of their Initial Boosting Cash Flow for Employers payments.
- An additional payment of $25,000 for the September period, being a final 50 percent .
What if I pay wages but don’t withhold tax?
Example: If lodging Quarterly
- A credit of $10,000 for the March period.
- An additional payment of $5,000 for the June period, equal to 50 percent of their Initial Boosting Cash Flow for Employers payments.
- An additional payment of $5,000 for the September period, being a final 50 percent .
TAX PAYMENT DEFERRAL OPTIONS
If your business has been affected by COVID-19, the ATO can work with you to defer some payments and vary instalments you may have due.
Businesses on a quarterly GST reporting cycles may elect to change their reporting and payment to monthly, to receive quicker access to GST refunds. You will have to stay on the monthly cycle for 12 months.
If you’re a quarterly pay as you go (PAYG) instalments payer you can vary your PAYG instalments for the March 2020 quarter. Businesses that vary their PAYG instalment rate or amount can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
If your business has been affected by COVID-19 and you need help to pay your existing and ongoing tax liabilities, you can contact the ATO to discuss entering into a low interest payment plan.
- The Victorian Government has announced tax measures to support businesses through Victoria’s State of Emergency, as part of a broader economic survival package in response to COVID-19. This includes:
- Payroll tax waived in 2019-20 for eligible businesses with taxable wages up to $3 million. Eligible businesses must continue to lodge returns but do not need to make further payments for the 2020 year. The SRO will also directly contact eligible business in relation to reimbursement for payroll tax already paid in the financial year.
- To claim the refund for tax paid to date login to your PTX Express (if not registered follow the instructions to create a login).
Contact your bank for concessions available. Some banks are providing some options as per below. Please contact your bank to discuss what is available to you and what is available given your particular circumstances.
- Deferring repayments on a variety of business loan and overdraft products, for 6 months.
- Extension of a business loan term by a period of up to three months, where individual circumstances warrant.
- Waiving merchant terminal fees
- Providing early access to term deposits without incurring break fees
- Providing access to additional credit subject to approval
- Support to restructure existing business loans, including equipment finance
- Business credit card deferred repayments.
- Hardship assistance program
As part of their economic support package for city businesses, they are offering $5 million in grants for small to medium sized businesses and non-profit organisations to invest in online and e-commerce capabilities, take part in training and professional development, and undertake capital works.
- Up to $5000 for investing in online and e-commerce activities.
- Up to $2000 for training and professional development.
- Up to $10,000 for capital works projects (matching dollar-for-dollar) to adapt to changing conditions.
- 2020 renewable liquor licence fees waived.
- 2020 land tax deferred for people that have at least one non-residential property and total taxable landholdings below $1 million.
Businesses across the state can also now access information on dealing with COVID-19 by calling the Business Victoria hotline on 13 22 15.