Update: Australia’s legislative response to COVID-19
The Australian government has implemented many legislative changes, grants, incentives, and extensions to ease the strain on business. The following are the current benefits offered.
Job Keeper Payments
Businesses significantly impacted by the Coronavirus outbreak can access a subsidy from the Government to continue paying their employees. This subsidy may apply to sole traders and the self-employed. Payments are issued every two weeks for $1,500 per eligible employee from March 30 2020, for a maximum of 6 months.
Cash Flow Grants
The Australian Taxation Office (ATO) will provide tax-free cash flow boosts of between $20,000 and $100,000 to eligible businesses, delivered through credits in the activity statement system, when eligible businesses lodge their activity statements.
Apprentice & Trainee Support
Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from January1, 2020 to September 30, 2020.
Relief for Commercial Tenants
A mandatory code of conduct for commercial tenancies has been established to support small and medium sized enterprises (SMEs). Measures include rent reductions based on the tenant’s decline in turnover with the burden shared between the tenant and landlord. Tenants must continue to engage their employees through the JobKeeper Payment where eligible, and provide rent relief to their subtenants, when applicable.
Instant Asset Write-Off
The threshold for depreciation deductions has increased to $150,000 and now includes businesses with aggregated annual turnover of less than $500 million.
The government now offers a free streamlined extension process for patents, trademarks and designs legislation has been established for up to three months, excepting fees.
The government will provide additional support to sectors hard hit by the virus. These include tourism, agriculture, and education. Details have not yet been released.
While this information is correct at the date of publishing, we recommend you contact us for assistance. We are here to help you navigate these new various legislative changes, grants, and incentives and the impact they may have on your business.