1. Cash Flow Assistance to Businesses 

This payment will assist small and medium businesses that employ staff with temporary cash flow support. In the latest update, not-for-profit entities (NFPs), including charities, with aggregated annual turnover under $50 million and that employ workers will now also be eligible, and the amounts have been increased.

  • Eligible businesses are small and medium entities, and NFP’s with aggregated annual turnover under $50 million and that employ workers.
  • The measure will provide between $10,000 and $50,000 back to eligible entities. The payment will be tax-free.
  • The payment will be delivered by the ATO as a credit in the activity statement system from 28 April 2020 upon businesses lodging eligible upcoming activity statements.
  • Eligible businesses that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 100% of the amount withheld, up to a maximum payment of $50,000.
  • Eligible businesses that pay salary and wages will receive a minimum payment of $10,000, even if they are not required to withhold tax.
  • 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.

2. Financially Distressed Business Safety Net 

To help businesses resume normal operations once the crisis has passed, changes have been made to lessen the threat of actions that could unnecessarily push businesses into insolvency, including:

  • Temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.
  • Temporary relief for directors from any personal liability for trading while insolvent.

3. Increased Instant Asset Write-Off Threshold 

To provide cash flow benefits for eligible businesses, the instant asset write-off threshold has been increased and more businesses will be eligible.

  • The Government is increasing the instant asset write-off threshold from $30,000 to $150,000 for new or second-hand assets first used or installed ready for use from 12 March until 30 June 2020.
  • Businesses with aggregated annual turnover of less than $500 million (up from the current $50 million threshold) will be eligible.
  • The threshold applies on a per asset basis, so eligible businesses can immediately write–off multiple assets.

4. Backing Business Investment Incentive 

The Government is introducing a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions.

  • Businesses with aggregated annual turnover of less than $500 million per annum will be able to deduct 50% of the cost of an eligible asset upon installation, provided it was acquired after 12 March 2020 and first used or installed by 30 June 2021.
  • There is no asset value threshold for this 50% investment incentive.
  • Existing depreciation rules applying to the balance of the asset’s cost.

5. Supporting Apprenticeships and Trainees

This subsidy is intended to help businesses retain apprentices and trainees.

  • Businesses employing fewer than 20 full-time employees and who retain an apprentice or trainee will be eligible.
  • The apprentice or trainee must have been in training with a small business as at 1 March 2020.
  • A wage subsidy of 50% of the apprentice’s or trainee’s wage for the nine months from 1 January 2020 to 30 September 2020 is available, up to a maximum of $21,000.
  • Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer.
  • Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian Apprenticeship Support Network.

6. NSW Government Support Measures – Tax Relief for the Remainder of the Financial Year

  • The NSW Government has announced a waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the rest of 2019-20).
  • The payroll tax threshold limit will be raised from $900k to $1 million in 2020-21.
  • A range of fees and charges for small businesses including bars, cafes, restaurants and tradies will be waived.