Additional Stimulus and Relief Measures - Federal & State Government Update
We are so thankful for those clients who have been in touch to seek out some initial support around addressing their key concerns and immediate actions and planning during these extraordinary times.
We are open for business and we are here to help. If you haven’t been in touch, please don’t be afraid to ask. We are still offering a complimentary 1-hour discussion with all our business clients to help you navigate the way through for some, very uncertain times.
Often navigating and interpreting this information can be information overload, we are here to help you break it down.
We are also making plans to proactively contact our business clients over the coming week to touch base.
This update contains some of the most recent announcements from the federal and state government of WA.
Again, please do not hesitate to ask us for help.
David: 0418 900 472 or email@example.com
Joselyn: 0417 740 927 or firstname.lastname@example.org
FEDERAL GOVERNMENT ANNOUNCEMENT – 30TH MARCH 2020
SUPPORT FOR BUSINESS
In addition to previously announced measures, the key further measure to support business is the newly announced JobKeeper payment.
The JobKeeper payment is designed to support businesses and their employees impacted by COVID-19, by providing a wage subsidy for employees. It is a retention measure to keep people in jobs.
There are eligibility criteria that needs to be met, we would encourage clients to discuss with us further about their circumstances and discuss registering your interest for this support with the Australian Taxation Office.
Further information is contained here regarding potential eligibility. https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_3.pdf
This is in addition to previously announced measures, being:
- Boosting cash flow for employers
- Temporary relief for financially distressed businesses
- Increasing the instant asset-write off
- Backing business investment
- Supporting apprentices and trainees
SUPPORT FOR HOUSEHOLDS AND INDIVIDUALS
New and current measures designed to assist households and individuals include:
- JobKeeper payment for households
- Income support for individuals
- Payments to support households
- Temporary early release of superannuation
- Temporarily reducing superannuation minimum drawdown rates
- Reducing social security deeming rates
Further information about support for households and individuals can be found here. https://treasury.gov.au/coronavirus/households
SUPPORTING THE FLOW OF CREDIT
New and current measures include:
- Support for immediate cash flow needs for SME’s
- Quick and efficient access to credit for small business
- Reserve Bank of Australia – Supporting the flow and reducing the cost of credit
- Support for non- ADI and small ADI lenders in the securitisation market
GOVERNMENT OF WESTERN AUSTRALIA ANNOUNCEMENT – 31ST MARCH 2020
The Government of Western Australia announced today a further $1 billion stimulus and relief package. The additional measures include expanded support for households, small and medium-sized businesses and community services.
SMALL AND MEDIUM-SIZED BUSINESS
- Relief from electricity bills and credits for impacted COVID-19 businesses
- Waiving of state payroll tax for a four-month period between March 1, 2020 to June 30, 2020 for small to medium sized businesses with Australia-wide annual wages of less than $7.5 million in 2019-2020. This replaces the initial deferral announced previously
- Waiving of a wide range of licence fees for small and medium-sized businesses in COVID-19 impacted industries for the next 12 months
- Businesses impacted by COVID-19 can also apply for an interest-free payment arrangement for late payment penalties to be waived for payroll tax, transfer duty, landholder duty, vehicle licence duty or land tax
- No small businesses facing financial difficulty due to COVID-19 will face power or water disconnections due to late payments, with interest relief under eligibility criteria.
- Expansion of the previously announced Energy Assistance Payment
- No households in WA experiencing financial hardship as a result of COVID-19 will have power or water disconnected
- Interest free arrangements for certain duties and taxes
- Keystart relief for those facing financial hardship due to COVID-19.
COMMUNITY SERVICES ASSISTANCE
- Electricity bills for around 2,800 will be reduced
- Funding certainty has been provided to community service providers, with government agencies to continue to pay contracts with the sector until at least June 30, 2020, even if providers are unable to deliver services due to impacts caused by COVID-19
- $159 million has been directed from Lotterywest to establish the COVID-19 Crisis Relief Fund to support not-for-profit sport, arts and community groups in dealing with the coronavirus (announced earlier this week).
A further $500 million has also been allocated to health and other frontline service delivery, as well as boosting capacity for additional industry support to ensure the Government can continue to provide a strong response to COVID-19.
Further detail regarding the state announcements can be found here: https://www.mediastatements.wa.gov.au/Pages/McGowan/2020/03/$1-billion-COVID-19-economic-and-health-relief-package-unveiled-.aspx
We will continue to provide communication to clients as it comes to hand.
Please contact us directly for further support.
The Team at Business Precision
This information is designed to be general in nature and not specific advice. Please contact our office for further information and advice specific to your circumstances.
Liability limited by a scheme approved under Professional Standards Legislation.
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