Since March 2020, the Australian national government has announced a number of COVID-related business interventions. It has been estimated that upwards of 3.5 million businesses may receive direct assistance in one or more of the following ways:
1. Support for Business Investment:
This entails a commitment of A$700 million, allowing the instant asset write-off threshold to be increased from A$30,000 to A$150,000. Businesses with an annual turnover below A$500 million are eligible for this support, where the limit was previously set at A$50 million. The intervention is effective between March 12, 2020, and June 30, 2021.
An additional A$3.2 billion has been allocated to accelerate depreciation deductions. Until June 30, 2021, businesses with an annual turnover below A$500 million can deduct 50% of the cost of new Division 40 assets upon installation or use thereof. Standard depreciation rates will apply to the balance.
Note that interested businesses need not apply for these interventions. Instead, they can claim the deduction when they lodge their tax returns.
2. "Boosting Cash Flow for Employers" Payments:
SMBs and not-for-profits with employees and a turnover of less than A$50 million may be entitled to a tax-free payment of up to A$100,000. At the very least, eligible entities will receive A$20,000. This is intended to help cover operating expenses.
Note that eligible businesses that withhold tax on salaries and wages are being paid up to 100% of what is withheld, where the maximum payout is A$50,000. Initially, those that aren't required to withhold tax received a minimum of A$10,000.
This form of assistance should support approximately 690,000 businesses that employ an estimated 7.8 million workers, and roughly 30,000 not-for-profits. In terms of rollout, the Australian Taxation Office (ATO) started making payments on April 28, 2020. These have taken the form of credits in the activity statement system.
Another payment will be made to qualifying entities between July and October 2020. This will equal the sum of all prior "Boosting Cash Flow for Employers" payments made to each business. This will also take the form of one or more credits, depending on when businesses lodge their activity statements.
Businesses should note that they do not need to apply for these payments. Instead, they are being automatically calculated and delivered by the ATO. For further details, visit business.gov.au and ato.gov.au.
3. Income Support for Sole Traders and Self-Employed Individuals:
Sole traders and self-employed individuals who have had their business activities suspended or turnover markedly reduced are now eligible for the biweekly JobSeeker Payment or Youth Allowance JobSeeker. These individuals will also receive a Coronavirus Supplement of A$550 each fortnight.
This expanded access to payments, as well as the Coronavirus Supplement, started being rolled out at the end of April and will be valid for six months. Candidates can claim these payments online through myGov or by phoning Services Australia.
4. JobKeeper Payments:
Businesses that have been notably affected by COVID-19 can access biweekly wage subsidies worth A$1,500 (before tax) for each eligible employee. These can be used to pay full-time and part-time staff, including those being stood down, as well as casual workers who have been employed by the business for the past 12 months or more (calculated from March 1, 2020). Payments are being made for up to six months.
Worth noting is that the JobKeeper Payment can also be accessed by sole traders and self-employed individuals whose turnover has been reduced due to COVID-19. However, those who receive income support from Services Australia will need to declare this income appropriately, which could affect their eligibility for continued assistance.
Interested parties can read our detailed article to learn more about eligibility criteria and the application process. The subsidy was rolled out on March 30, 2020, and recipients were awarded their first payments at the beginning of May.
5. Wage Subsidies for Apprentices and Trainees:
A further A$1.3 billion has been committed to supporting the work of roughly 120,000 apprentices and trainees through the provision of wage subsidies. Eligible employers can apply for subsidies of up to 50%. This form of relief may be drawn upon for the period spanning January 1, 2020, to September 30, 2020.
Naturally, small businesses that are unable to support the costs associated with retaining their apprentices will forego this support. Instead, apprentices' new employers will be eligible for the subsidy.
Note that employers will receive up to A$21,000 per eligible apprentice or trainee, which equates to A$7,000 per quarter. Businesses were able to register for these wage subsidies from early April. For more on the application process, be sure to locate and contact an Australian Apprenticeship Support Network Provider.
6. Rent Relief:
Various measures have been introduced to support commercial tenants who are SMBs. Key among these is a 6-month moratorium on evictions for those who are unable to meet their financial obligations owing to COVID-19.
The government has also implemented a mandatory code of conduct that applies to SMB tenants who have an annual turnover of A$50 million or less and qualify for the JobKeeper Payment. The policy stipulates a number of regulations, including that:
- Landlords cannot terminate lease agreements due to non-payment of rent during the pandemic, or in a reasonable period thereafter.
- Landlords must offer rent reductions in the form of deferrals of waivers based on their tenants' reduced income.
- Owners' benefits — including loan payment deferrals and reduced charges — should be passed to their tenants.
- Tenants must adhere to the contents of their lease agreements, which are subject to amendments as a result of COVID-19.
Be sure to download the code of conduct for more detailed information.
7. International Freight Assistance:
On July 3, the national government announced that they had set aside a further A$241.9 million to sustain the International Freight Assistance Mechanism (IFAM). This should help keep international freight routes (including flights) operational for the remainder of 2020.
Eligible exports include high-value, perishable agricultural and fisheries products such as seafood; premium red meat and fruits; packaged vegetables and salads; as well as dairy.
Imports, in turn, will include items needed to strengthen the current health response. This includes medical supplies and equipment, as well as medication.
Worth noting is that the IFAM will initially focus on key markets located in China, Hong Kong, Japan, Singapore, and the United Arab Emirates. Businesses that wish to access IFAM flights to export their goods can read more about the intervention and register their interest online.
8. Additional Support for Disproportionately Affected Entities:
A further A$1 billion has been allocated to support those who have been particularly impacted by COVID-19. Businesses that are heavily dependent on international trade, for example, could use these funds to pinpoint other export markets. Moreover, plans to encourage domestic tourism could eventually spur growth within the hospitality industry.
Download the fact sheet from treasury.gov.au to learn more.
9. Administrative Relief:
Beyond these financial commitments, the Australian government has announced less stringent tax obligations. This includes the option to defer certain payments by up to four months. Moreover, recipients of government grants could be given extensions on project milestones and reporting deadlines.
For now, the government is also raising the threshold at which creditors may issue statutory demands and providing companies with longer response times. Directors who trade while insolvent will benefit from temporary relief from all personal liability.
More detailed information is available in the treasury.gov.au fact sheet download.
Deferment of Loan Repayments:
On March 20, 2020, Anna Bligh, CEO of the Australian Banking Association, announced that small businesses affected by COVID-19 could have their loan repayments deferred for six months. The offer applies to over A$100 billion in existing loans. Depending on the uptake, it is thought that this could put up to A$8 billion back into small businesses.
Note that interest will accrue during the six-month window.
Once businesses reach the end of the repayment holiday, they can either:
- Start repaying their loans if they are able to, or
- Have their loans restructured or varied so that they can begin to repay their debt, or
- Request an additional four-month repayment holiday, or
- Apply for assistance through their lender's financial hardship framework, which should help determine the most favorable long-term solution.
Further details are available on the Australian Banking Association's website.
Coronavirus SME Guarantee Scheme:
The Australian government has established the Coronavirus SME Guarantee Scheme with support from the Reserve Bank of Australia and the Prudential Regulation Authority. The Scheme is intended to help SMEs obtain working capital. To this end, the government is guaranteeing 50% of each applicable loan. Below are the salient terms:
- Only SMEs with a turnover of less than A$50 million are eligible. This includes sole traders.
- Loans are to be unsecured and capped at A$250,000 per borrower.
- Term lengths should be a maximum of 3 years.
- Repayments need only be made from the seventh month after which the loan is awarded.
- Lenders' credit assessment processes still apply, but the uncertainty of the economic climate should be accounted for.
The Scheme was officially rolled out in early April 2020 and will support all new loans secured by September 30, 2020. Interested parties should contact their financial institutions for further details.
The aforementioned interventions are available to businesses across the nation. Worth noting, however, is that there are various state and territory-specific initiatives. We've included some of the most prominent ones below.
The Australian Capital Territory:
The Australian Capital Territory (ACT) government has devised and instituted the COVID-19 Economic Survival Package, which is intended to help sustain SMBs as well as families and households. The multifaceted initiative includes the following support for businesses:
Small businesses that use less than 100 megawatts of electricity per year will receive a rebate of A$750. This will be added to their next electricity bill between June and July 2020.
All restaurants, cafés, and takeaway outlets will receive a one-off A$1,000 rebate on electricity bills issued during the first four months of the 2020–2021 financial year.
All commercial property owners who have been impacted by the pandemic can defer their rates payments until October 2020.
Those who own commercial properties with an Average Unimproved Value of up to A$2 million will receive a rebate, issued in the form of a credit, on their commercial rates fixed charge. This will be applied automatically in the fourth quarter. Furthermore, the 2020–2021 Fire and Emergency Services Levy will not be increased.
Commercial tenants of ACT government-owned properties could receive rental relief for six months as of April 1, 2020, provided they can demonstrate that their operations have been markedly affected by COVID-19. Tenants should email the ACT Property Group to apply.
Commercial tenants in privately-owned commercial properties will be encouraged to consult with their landlords to discuss relief. Negotiations will be facilitated by a state-appointed Commercial Tenancy Mediator. Landlords, tenants, the government, and financial institutions will collaborate to execute agreed-upon plans.
Selected businesses that purchase less than A$3 million in liquor per year had their liquor licensing and food business registration fees waived for 12 months as of April 1, 2020. Their 2020–2021 outdoor dining fees will also be waived. Those that have prepaid their food business registration fees will have 12 months added to their licenses.
Rideshare operators had their rideshare vehicle license fees waived for 12 months as of April 1, 2020. Where licenses have been prepaid, individuals will have 12 months added to their licenses. Government-leased taxi plate fees will also be waived. Moreover, taxi drivers who lease privately-owned plates will receive a payment of up to A$5,000.
Businesses that must hold an infection control license will not be charged the applicable fee for 12 months as of April 1, 2020.
The Clubs Diversification fund, which is currently worth A$1.8 million, has been freed up to sustain community clubs. The ACT government has pledged an additional A$1.5 million to meet this objective. The overall aim is to promote staff retention.
Businesses that are directly impacted by the ban on certain activities will not be required to pay payroll tax between April and September 2020. Prospective candidates should complete the online application form.
ACT businesses with wages of up to A$10 million are able to defer their payroll tax for the 2020–2021 financial year until July 1, 2022. No interest will be charged. Note that payroll tax returns need to be lodged per usual.
All businesses in the construction industry can defer their payroll tax for the six months spanning April to September 2020. Interest will only start to accrue on deferred amounts from October 2, 2020.
The Vocational Education and Training sector will be supported through increased subsidies for apprenticeships, traineeships, and other categories. No applications are required; adjustments will be made automatically.
The government aims to expedite the rollout of the Canberra Institute of Technology's (CIT's) "Study Work Anywhere Any Time" initiative by harnessing the expertise of local SMBs. This will support businesses and retain those with valuable technological skills.
The Canberra Business Advice and Support Service has been designed to help small businesses address the effects of the recent environmental and health emergencies on their entities. Their interventions include four hours of one-on-one support and business development resources. Interested parties can call (02) 6297 3121 to make a booking. Alternatively, email email@example.com.
A business liaison team has been established to inform businesses about available support and to issue practical guidance to those that remain operational. Businesses can call (02) 6205 0900.
New South Wales:
The New South Wales (NSW) government has rolled out an economic stimulus package that is designed to support SMBs. The most salient aspects include:
The COVID-19 Support Grant:
NSW-based small businesses and nonprofits will be eligible for a grant worth between A$500 and A$3,000 if, as of March 1, 2020, they:
- Have an NSW-registered Australian Business Number.
- Employ less than 20 full-time equivalent people (this includes non-employing businesses).
- Have a total payroll of less than A$900,000.
- Have been markedly impacted by the Public Health Order 2020.
- Are classified as a highly impacted industry.
- Lost 30% or more of their income between March and July of 2020, relative to two or more weeks during the same period in 2019.
- Have an annual turnover above A$75,000.
- Have reopening or upscaling expenses from July 1, 2020.
Interested individuals should visit services.nsw.gov.au to obtain further information and submit an application before 11:59 p.m. AEST on August 16, 2020.
The Support4work Grant:
In cases where injured workers return to work under reasonable circumstances, eligible small businesses will receive two equal payments worth A$4,000 total. This should help facilitate the recovery of affected individuals, as well as businesses as they weather the effects of COVID-19.
The first payment will be made once the injured person recommences work. The second payment will be made five weeks later, once it has been established that the employee has remained at work.
Businesses can view the full list of eligibility criteria on the State Insurance Regulatory Authority's website. Those who would like to apply should download the application form and submit it via email by September 30, 2020.
Various financial and non-financial measures are being developed to help NSW-based businesses export their goods. Key among these are dollar-matched Export Assistance Grants worth up to A$10,000. These should support up to 1,000 SMBs. Interested parties should email firstname.lastname@example.org to receive additional information and register their interest.
Additional interventions include the Going Global Program, which should help businesses to enter additional export markets, and the e-Commerce Program, which should expand businesses' access to e-commerce sites. Further information should be released on business.nsw.gov.au as the initiatives are rolled out.
The Community Sport Recovery Package:
A three-pronged package worth A$27.3 million has been devised to assist the Sport Sector as community sports begin to resume in July. To this end, State Sporting Organizations, Regional Academies of Sport, as well as local clubs and associations will receive direct payments from the Office of Sport. No applications are needed. Instead, the Office will reach out to eligible entities.
Further information should be available on sport.nsw.gov.au/ in the coming weeks.
- The tax-free threshold has been raised from A$900,000 to A$1 million for the 2020–2021 financial year.
- Businesses with payrolls over A$10 million can defer their payroll tax for 6 months.
- Pubs, hotels, clubs, and lotteries can defer their gaming tax payments for 6 months, provided that the funds are used to promote staff retention.
Fee Deferrals and Waivers:
- Parking space levies can be deferred for 6 months.
- Tenants of government-owned facilities can defer their rent payments for 6 months, provided that they have less than 20 employees.
- Eligible individuals and businesses need not pay the usual license, permit, and registration fees. This applies to new applications and renewals but excludes fees associated with license amendments, replacements, and similar services.
Support for the Taxi Industry:
Eligible taxi owners — including those who own wheelchair-accessible taxis — will receive a subsidy from the NSW government. There is no application process; these checks will be issued automatically. Worth noting, however, is that owners must keep their taxis registered for at least 6 months once they receive the subsidy.
A$250 million has been set aside to enlist the cleaning services of SMBs. The intention is to minimize the spread of COVID-19 while sustaining approximately 550 cleaners. Companies can apply online.
Struggling to figure out which benefits, rebates, and concessions are available to your business and household? Use the NSW's COVID-19 Assistance Finder and complete the questionnaire to obtain tailored information.
The Northern Territory (NT) has adopted a multi-pronged approach to helping businesses weather the effects of COVID-19. Key interventions are described below.
The Business Hardship Register:
Businesses that earn less than A$50 million per year and have lost 30% or more of their income due to COVID-19 can ask to be included on the state's Business Hardship Register. Successful applicants will receive a certificate of hardship, which could render them eligible for a number of concessions. These are described below.
1. Tax Relief:
Businesses with Australian taxable wages below A$7.5 million for the 2019–2020 financial year should submit their business hardship certificate to the Territory Revenue Office (TRO). Thereafter, the TRO will indicate whether their payroll tax can be waived for the period spanning March to August 2020.
Those with Australian taxable wages above A$7.5 million for the 2019–2020 financial year could be eligible for a payroll tax deferral, provided that their turnover has decreased by at least 50%. Successful applicants can defer payment of one or more returns for the period spanning March to August 2020, such that they only make the payment(s) on September 21, 2020.
Note that businesses must continue to lodge their payroll tax returns as usual.
2. Council Rates Concessions:
Businesses that conduct business activities from their premises and pay rates may receive a three-month rate waiver, and an additional three-month deferral on their 2020–2021 rates payments (which would be deferred to January 1, 2021). Interested parties should furnish their local government with their hardship certificate.
3. Utilities Concessions:
Once included on the hardship register, businesses can issue their utilities providers with their hardship certificate. Those who are prescribed customers, as outlined in section 13A(d) of the Electricity Reform Act 2000, may be eligible for a deduction of at least 50% on their electricity tariff, as well as their water and sewerage tariff.
4. Rent Relief:
Businesses with annual revenue below A$50 million that have lost 30% or more of their income due to COVID-19 should request rent relief from their landlords. In addition, landlords will not be required to pay the property activation levy in instances where their properties become vacant as a result of COVID-19.
Commercial landlords who refuse to negotiate in good faith will not be able to access the abovementioned relief or any other government support.
Suspension of Planning Approval Process Requirements:
Those who would like to start construction on projects linked to the Business Improvement Grant or the Immediate Work Grant do not need to apply for approval.
Tourism Business Support:
Tourism Northern Territory has partnered with financial consultancy firm KPMG to create a A$200,000 grant program. Specialists will meet with interested parties to unpack their concerns and issue practical guidance. These private, hour-long appointments will take place between March 24, 2020, and July 31, 2020. Applications can be submitted online.
The NT government has also devised a A$2 million Tourism Resilience Plan that comprises four programs. Ultimately, these are designed to generate more interest in tourism and to promote learning. Interested individuals can download a summary of this initiative to read more about it.
The Tradies/Contractors Program:
Registered tradies and contractors who wish to be listed as providers of goods and services under the Business Improvement Grants, Immediate Work Grants, and Home Improvement schemes should read the applicable terms and conditions. Thereafter, they can apply online.
To be eligible, candidates must:
- Be registered as a tradie or contractor.
- Have their business classified as a legal entity.
- Possess a valid Australian Business Number as of March 18, 2020.
- Operate in the NT.
- Have been providing goods or services within the NT as of March 18, 2020.
- Employ residents of the NT.
- Have a significant business presence within the NT.
- Hold the requisite permits and licenses.
- Be adequately insured.
Streamlined Access to Job Seekers:
The NT government has partnered with the Industry Capability Network Northern Territory (ICN NT) and software provider Cited to create the Territory Jobs Hub — an online portal where local businesses can connect with job candidates. The service is completely free for employers and job seekers alike and can be used to fill casual, contract, and permanent positions.
Queensland businesses have access to a range of interventions. These include:
Grants ranging from A$2,000 and A$10,000 for micro and small businesses as they prepare to resume their activities. The funds can be used to obtain professional advice to support sustainability; pay for business coaching; conduct marketing and communication activities; support digital development; cover operational expenses; and more. Eligible businesses can apply online.
Tax relief for SMBs with a payroll of up to A$6.5 million. Businesses ought to have been affected by COVID-19, whether directly or indirectly. The package includes a two-month refund of their payroll tax (for November and December 2019), as well as a three-month payroll tax holiday from January to March of 2020. The remainder of 2020 payroll tax payments can be deferred by applying online.
Tax relief for large businesses, which are classified as those with payroll above A$6.5 million. Once more, businesses must have been impacted by COVID-19. The package includes a two-month refund of their payroll tax (specifically, for November and December 2019 payments). As with SMBs, large businesses will be able to defer the remainder of their 2020 payroll tax payments.
Fee waivers for tourism operators and hospitality providers. These include application fees for certain types of liquor licenses, registration renewal fees normally paid by Inbound Tour Operators, and daily fees associated with commercial activity agreements and permits. More detailed information is available on business.qld.gov.au.
One or more land tax rebates for commercial landowners who have had difficulty securing tenants due to COVID-19, or whose tenants have been unable to make their usual rent payments due to the pandemic. Eligible individuals can apply online.
Rent waivers for those operating tourism businesses on state land (unless they pay minimum rent, in which case they may be eligible for a rent deferral). Waivers apply to the period spanning April 1, 2020, through September 30, 2020, while deferrals apply to the period between January 1, 2020, and March 31, 2020. Businesses can view detailed eligibility criteria and application procedures online.
Rent waivers for certain businesses in Categories 11, 13, 14.2, 15, and 16 (valid from April 1, 2020, to September 30, 2020), and rent deferrals for those that pay rent on a quarterly basis and do not qualify for the stated waiver. In the latter case, rent that is due for the period spanning April to June 2020 can be paid any time until September 1, 2020.
Market Diversification and Resilience Grants to support food, fishing, and agriculture exporters plus their supply chain partners. This includes up to A$7,500 for new equipment when applicants contribute 25% of the total costs and project funding of up to A$50,000 when applicants cover 50% of the overall costs. Applications have closed, but businesses can email MDRG@daf.qld.gov.au to receive updates about the program.
At least A$2.5 million to support Queensland's arts sector. Most funds are to be disbursed in the form of grants.
A Mentoring for Growth (M4G) program that aims to provide eligible businesses with one-on-one guidance. The initiative is being delivered telephonically, in person, and online. Those who wish to partake in M4G should register their interest online.
Free online training and learning materials offered by the Small Business Skills Hub. The subject matter includes foundational business skills, as well as strategies for connecting with customers and leading a profitable business. Registered businesses with less than 20 employees can sign up any time until December 31, 2020, at 12:00 a.m. AEDT.
A support line for Indigenous business owners, who can use the service to discuss their needs, learn about the resources at their disposal, and provide feedback about government-issued support for Indigenous businesses. Interested individuals can call 07 3063 4767.
South Australia has also taken a multi-pronged approach that includes emergency cash injections, tax and fee waivers, job accelerator grants, and the awarding of temporary liquor licenses.
Support in Hiring and Retaining Apprentices:
Skills South Australia is offering numerous forms of financial support to help business owners hire, train, and retain apprentices. The interventions include:
- An Equipped for Growth grant of up to A$5,000 that is offered to businesses when they employ a new apprentice. The assistance is available until August 31, 2020, or once funds have been expended.
- An Equipped for Work reimbursement worth up to A$1,500 that can be used to cover the cost of equipment and services when businesses hire an apprentice. This includes instances where businesses take on an existing staff member as an apprentice. The reimbursement is also available to businesses with more than 25 employees. The scheme is available until July 31, 2020.
- An Equipped for Training allowance that is intended to help offset the costs associated with apprentices' off-the-job training.
- A Group Training Boost, which entails up to A$5,200 off the Group Training Organization (GTO) charge-out rate. This comprises a discount of up to A$200 per apprentice or trainee per week, issued for up to six months.
Interested businesses should visit skills.sa.gov to view the full list of applicable eligibility criteria and submit their applications.
Payroll Tax — Waivers and Deferrals:
Businesses with grouped wages of A$4 million and below will receive a six-month payroll tax holiday. Specifically, they will not need to pay payroll tax for the months spanning April to September 2020. Businesses that were not required to pay payroll tax in the 2018–2019 financial year will be required to apply for the waiver.
Businesses with grouped wages over A$4 million that have been demonstrably impacted by COVID-19 can defer payroll tax payments for the period spanning April to September 2020. Successful applicants will need to honor the revised deadline of October 2020.
In both of the abovementioned instances, businesses still need to submit tax returns as usual. Interested parties should visit RevenueSA's website to determine whether they should submit the online application.
Land Tax Relief:
Those that have been paying land tax quarterly between 2019 and 2020 can defer this year's third and fourth quarter payments by up to six months. No applications are required, and businesses need not contact RevenueSA in order to institute this arrangement.
Moreover, in instances where landlords provide rent relief to tenants who have been affected by the COVID-19, they could be eligible for a 25% reduction on the amount of land tax owed. Applications close on July 31, 2020.
Finally, land tax transitional relief will be raised from 50% to 100% of eligible taxpayers' increase in their 2020–2021 land tax assessment.
Less Stringent Job Accelerator Grant Eligibility Criteria:
Current Job Accelerator Grant (JAG) criteria require employers to have sustained their overall employment levels for one year in order to receive their second JAG payment. However, this may not be feasible due to the effects of COVID-19.
Rather than reviewing staff levels on the applicable two-year anniversary date, the government will review staffing levels valid on January 31, 2020 when assessing claims for the second JAG payment.
Reduced or Waived Liquor Licensing Fees:
The government has waived annual liquor licensing fees in the following categories: Liquor Production and Sales; Restaurant and Catering; Club; Residential; On Premises; Small Venue. Those who hold a General and Hotel license will receive a fee reduction if they have a bottleshop, and a complete waiver if they do not.
Licensees in each of the abovementioned categories can also apply for short-term licenses which will allow them to sell alcohol for takeaway or delivery. Applications opened on March 26 and can be made free of charge. Successful businesses will be required to observe the applicable restrictions.
Finally, businesses should note that Packaged Liquor Sales licensing fees won't be cut or waived. Businesses that think they may be entitled to a discount can request a fee reduction from June 1. All applications are to be made online.
The Tasmanian government has devised a Support and Stimulus Package that is designed to provide socio-economic aid to businesses within the area. The most salient components of this package include:
The Primary Healthcare Grant Program:
General practices and community pharmacies can apply for one-off grants of up to A$10,000. These are intended to sustain the provision of primary healthcare services during the pandemic. Candidates should view the program guidelines before applying online. Submissions will close at 3 p.m. (AEST) on July 24, 2020.
Freezes, Waivers, or Caps on Certain Charges:
Small businesses on tariffs 22, 75, 82, and 94, as well as those on market contracts that are eligible for these tariffs, will not need to pay their first water and electricity bill received after April 1, 2020. Electricity prices are set to be capped, and water prices will be fixed during the next financial year.
In addition, the Tasmanian government will freeze all fees and charges that are subject to the Government Fee Units Act 1997. All businesses that have been notably impacted by COVID-19 need not pay land tax for their commercial properties during the 2020–2021 financial year.
Also worth noting is that Tasmanian businesses that operate within the tourism, hospitality, or seafood sectors will have their payroll taxes waived for the 2019–2020 financial year. All other businesses with payrolls below A$5 million can request the same form of relief.
In the same vein, wages that are subsidized by the JobKeeper Payment will not be subject to payroll tax. Moreover, businesses that employ individuals aged 24 or younger sometime between April 1, 2020, and December 31, 2020, will receive a 12-month rebate on their payroll tax.
The Business Vehicle Registration Relief Package:
Small businesses hoping to suspend their activity can apply to have their business vehicle registrations frozen for up to twelve months. This applies to both light and heavy vehicles. Registrations can be reactivated for free once operations commence.
In addition to this form of relief, the Tasmanian government will waive registration fees for heavy vehicles weighing more than 4.5 tonnes. The government will also waive the road component of motor tax. However, businesses will still be required to pay the regulatory portion of their motor tax.
Applications for both forms of relief can be made online. Candidates will need to furnish their Australian Business Number, as well as other details pertaining to their business. This includes a declaration that their business's operations have ceased or suspended.
The Victorian government has developed a A$3+ billion Economic Survival Package that includes:
One-off grants of up to A$5,000 for businesses located in Melbourne and Mitchell Shire, provided that they have been notably impacted by the Stay at Home order. The finds can be used to cover operational expenses, seek professional support, bolster marketing activities, and more. Eligible businesses can apply online.
An A$500 million Business Support Fund to support sectors that have been disproportionately affected by COVID-19. These include tourism, hospitality, entertainment, retail, and more. Eligible businesses will each be able to access a grant of up to A$5,000. Interested parties can view additional details, including application procedures, online.
Payments worth up to $225.00 (excluding GST) per night or up to $1,125.00 (excluding GST) per bookable offering in cases where clients have canceled their bookings due to the Stay at Home restrictions that were imposed on July 8, 2020. Accommodation providers should read the full set of eligibility criteria before applying online. Note that the scheme will end once the Stay at Home order has been lifted or funding has been expended.
Payroll tax waivers for businesses that have annual taxable wages of up to A$3 million. This intervention is applicable to the 2019–2020 financial year. Eligible businesses will be reimbursed for payroll tax that they have already paid during the financial year. They can also defer their payroll tax payments for the first quarter of 2020–2021.
The Agriculture Workforce Plan will assist agricultural, food processing, and similar businesses in running their operations. Specifically, eligible entities will receive recruitment support, case management, as well as financial support for activities such as staff relocation and transport; employee induction and retraining; and business adaptation. Businesses can register online.
Waivers on renewable liquor license fees in 2020. Businesses that have paid this fee will receive a refund from the State Revenue Office.
The fast-tracking of outstanding supplier invoices. This entails payments that are made within ten business days and is projected to release up to A$750 million into the economy.
Land tax deferral for those who own one or more non-residential properties and have total taxable land holdings of less than A$1 million. The revised deadline will be after December 2020. Candidates need not apply — instead, they will be contacted by the State Revenue Office.
A 25% reduction in 2020 land tax for landlords who have provided rent relief to struggling tenants. Owners who experience difficulty securing tenants due to the COVID-19 pandemic will also receive this form of support. Interested businesses can apply online.
Rent relief for commercial tenants who occupy government buildings.
Personal Protective Equipment (PPE) Temporary Supply Register:
Many businesses require PPE to keep operating safely. As such, the Department of State Growth has put together a temporary supply register where providers of PPE can list their details. The database will be removed once the need for such equipment has subsided.
Access to Qualified Staff:
Businesses that are looking to hire staff will have access to a pool of job-ready candidates via the Rapid Response Skills Matching Service. This could be a time and cost-saving alternative to traditional recruitment methods. Businesses with vacancies can register for this service by visiting skills.tas.gov.au.
Free Business Coaching:
Enterprise Centres Tasmania is offering free business coaching in the form of one-on-one consultations and workshops. The organization can offer guidance on most business processes, from starting a successful company to remaining operational during and after the COVID-19 pandemic. Interested individuals can register their interest by emailing email@example.com or calling 1800 440 026.
Collins SBA, in association with the Tasmanian Hospitality Association (THA), will also be providing hospitality businesses with one free 45-minute phone call to help ascertain their needs and identify solutions. Furthermore, Collins SBA will assist businesses in preparing a cash flow budget for the next year.
THA representatives will reach out to businesses to offer this support, but those in need of immediate assistance can contact Stephen Long on 0439 100 290 or firstname.lastname@example.org.
In addition to these initiatives, all businesses can request a complimentary two-hour coaching session from a member of the Digital Ready team. These appointments, which will be delivered telephonically or via Zoom, can be used to address any aspect(s) of running a business online. Bookings can be made by calling 1800 955 660.
Finally, businesses can reach out to the Tasmanian Chamber of Commerce and Industry (TCCI) for free guidance on navigating industrial relations issues, specifically. Interested parties should call 1300 559 112.
The Western Australian (WA) government has implemented various measures to support local businesses during the pandemic. Core interventions include:
The Reengagement Incentive:
Businesses that hire a trainee or apprentice subsequent to their contract being terminated by another employer on or after March 1, 2020, will qualify for a one-off payment. This will be worth A$3,000 for each trainee, and A$6,000 for each apprentice.
Note that claims should be submitted within three months after the employee has successfully completed the probation period. Applications should be submitted by June 30, 2021. Full terms and conditions are available on jobsandskills.wa.gov.au.
Payroll Tax Relief:
The WA government will increase the payroll tax threshold to A$1 million as of July 1, 2020.
Businesses with combined Australian taxable wages of less than A$5 million on February 29, 2020, will not be subject to payroll tax for the period spanning March to June 2020. The waiver will be applied automatically.
Businesses that exceeded this threshold in February, but anticipate that their payroll will equal less than A$7.5 million by June 30, 2020, can qualify for the abovementioned benefit. The same is true for new employers who are registered to pay payroll tax from March 1, 2020. However, these businesses must apply.
Finally, businesses with combined Australian taxable wages of at least A$7.5 million can request an interest-free payment plan if they are concerned about meeting their obligations.
One-off A$17,500 Grants:
In addition to the payroll tax waiver mentioned above, businesses that have more than A$1 million in annual Australian taxable wages will receive a one-off grant of A$17,500, provided that their annual Australian taxable wages do not exceed A$4 million. Payments will be made from July 2020 onwards.
Small businesses and not-for-profit organizations operating from WA government-owned properties will not have to pay rent between March 30, 2020, and September 30, 2020. Tenants who paid in advance will enter negotiations with state government agencies to ensure that they are not financially disadvantaged.
Land Tax Aid:
The Land Tax Assistance for Landlords program has been established to assist landlords who provide at least three months of rent relief to tenants who have lost 30% or more of their income due to COVID-19. Aid will be disbursed in the form of grants, which will be valued at 25% of each recipient's land tax bill for the 2019–2020 financial year. Applications can be submitted online.
Assistance with Electricity Bills:
Small businesses that are customers of Horizon Power and Synergy will receive a one-off credit worth A$2,500 to help cover their electricity costs, provided that they consume less than 50MWh per year. The WA government has also indicated that there will be no utility disconnections or interest charges in instances where clients defer their electricity bill payments.
Relief for the On-Demand Transport Industry:
An A$9 million package has been created to support the on-demand transport industry. It includes:
- A$4.7 million worth of Regional Taxi Assistance Payments (due to be made in July).
- A$1.5 million worth of A$2,500 payments to support approximately 600 authorized, on-demand service providers.
- The waiving of all Passenger Transport Vehicle (PTV) authorization renewal fees for 12 months.
- The waiving of all on-demand booking service authorization renewal fees for 12 months.
In addition, metropolitan and regional taxis will not be required to have new or upgraded cameras until at least July 1, 2021. The previous deadline was set for July 2, 2020.
Relief for the Business and Construction Industry:
A$24.5 million has been set aside to support the building and construction industry. This has been distributed through, inter alia, one-off A$2,000 payments to businesses that employ trainees and apprentices and currently receive Construction Training Fund (CTF) payments. Those who are eligible will receive an email from the CTF if they have not already been contacted.
The COVID-19 Assistance Center:
The Small Business Development Corporation (SBDC) has formed a dedicated COVID-19 assistance center to provide businesses with information about the available interventions, as well as strategies for weathering the pandemic. Businesses can email email@example.com or call 133 140 between 8:30 a.m. and 4:30 p.m. during the week.
Resources for Australian Business Owners:
Below, we've rounded up a list of national and region-specific, authoritative resources that business owners can use to keep abreast of current affairs.
The Commonwealth of Australia:
- Coronavirus Information and Support for Businesses.
- Coronavirus (COVID-19) Business Support: Contact Details (Chat, Email, Phone).
- Australian Apprenticeship Support Network Locator.
- Australian Government Department of Health: Coronavirus (COVID-19) Health Alert.
- National Coronavirus Helpline (available 24/7): 1800 020 080
Australian Capital Territory:
New South Wales:
- New South Wales Department of Finance, Services and Innovation, Fair Trading Division: Coronavirus (COVID-19) Information for Businesses and Consumers.
- New South Wales Department of Health: COVID-19 (Coronavirus).
- Northern Territory Government: Coronavirus (COVID-19).
- Northern Territory PHN: COVID-19.
- Northern Territory Council of Social Services: Coronavirus (COVID-19) — Advice for Social and Community Services & the NT.
- South Australia Consumer and Business Services: COVID-19 Updates.
- South Australia Department of Health: Coronavirus Disease 2019 (COVID-19).
- Tasmanian Chamber of Commerce and Industry: COVID-19 Business Resources.
- Tasmanian Department of Health: Coronavirus.
- Victorian Chamber of Commerce and Industry: COVID-19 (Coronavirus) Resources for Businesses.
- Victorian Department of Health and Human Resources: Coronavirus Disease (COVID-19).
What is the Australian government doing to assist businesses affected by the coronavirus?
All arms of government have committed a combined total of A$189+ billion, which is intended to support businesses and households. Key business-centered interventions include cash injections into SMBs, accelerated depreciation deductions, wage subsidies for apprentices and trainees, guarantees on new business loans, and deferments on tax payments.
What is the Coronavirus SME Guarantee Scheme?
Australia's Coronavirus SME Guarantee Scheme aims to help small and medium-sized enterprises (SMEs) obtain working capital in the form of unsecured loans. These are intended to help SMEs withstand the effects of the coronavirus. Under the Scheme, the Australian government will guarantee 50% of applicable loans. The Scheme was rolled out in April 2020 and will support all new loans secured by September 30, 2020.