Assistance for businesses from the Commonwealth Government in response to the coronavirus (COVID-19) outbreak was first announced on 12 March 2020, these measures were extended on 22 March 2020. The assistance, details here, includes cash flow support to businesses and temporary measures to provide relief for financially distressed businesses.
- Boosting cash flow for employers
- Temporary relief for financially distressed businesses
- Increasing the instant asset write-off
- Backing business investment
- Supporting apprentices and trainees
Of most direct application to Christian schools, the Government is providing up to $100,000 to eligible small and medium sized businesses, and not-for-profits (including charities) that employ people, with a minimum payment of $20,000.
The Boosting Cash Flow for Employers measure applies to organisations with aggregated annual turnover under $50 million and that employ workers. Employers will receive a payment equal to 100 per cent of their salary and wages withheld, with the maximum payment being increased from $25,000 to $50,000. The minimum payment is $10,000. An additional payment is also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments.
The amount of the payment will be based on the withhold tax paid to the ATO on employees’ salary and wages. It will be calculated from the amounts on BAS returns –
- 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.
The applicable amount is automatically calculated by the Australian Taxation Office (ATO). There are no new forms required. See the full details in this factsheet.
A range of State/Territory Government initiatives are summarised in this document from the Fair Work Commission.