A quick update of what support is available with restrictions being removed over the next few months plus other tax news:
COVID-19 support will roll back as states and territories reach vaccination targets.
Individuals
- Disaster Payment
The COVID-19 Disaster payment was offered to those who lost work because of the lockdowns. These payments will phase out as we reach vaccination targets.
At 70% full adult vaccination on 10 October 2021, the automatic renewal that has been in place will end and individuals will need to reapply each week that a declared hotspot remains in place to confirm their eligibility.
2 weeks after 80% (17/10/2021) those needing financial support will no longer be eligible for the disaster payment, but will need to apply for another form of income support such as JobSeeker. Unlike the disaster payments, JobSeeker and most other income support payments are subject to income and assets tests.
Close date: 31 October 2021
- Pandemic Leave Payment
The Pandemic Leave Disaster Payment ($1,500) for those who cannot work because they need to self-isolate or quarantine, or care for someone with COVID-19.
Close date: 30 June 2022
Businesses
- JobSaver New South Wales
The NSW JobSaver, which provides payments of up to 40% of weekly payroll, requires businesses receiving JobSaver to reconfirm their eligibility for the payment each fortnight including a 30% decline in turnover test and headcount test. To be eligible you had to have a turnover between $75,000 and $250 million.
You needed to nominate the 2-week period in which your business first experienced the required decline in turnover on or after 26 June 2021.
- For Employing businesses: 40% of their weekly NSW payroll, with payments between $1,500 and $100,000 per week
- For Non-employing business eg sole trader: $1,000 per week.
JobSaver payments will change to 30% of weekly payroll after NSW reaches 70% double vaccination (taking effect from 10 October 2021).
Payments will then change to 15% of weekly payroll after NSW reaches 80% double vaccination.
If you’re a non-employing business this will change to $750 at 70% and $375 when NSW reaches 80% double vaccination. See summary below.
Close date: 30 November 2021.
- SME lending options
The expanded SME recovery loan scheme took effect on 1 October 2021. Under the scheme, the Government will guarantee 80% of loan amounts to businesses that can demonstrate they have been adversely impacted by COVID-19.
Under the scheme, lenders can provide:
- A repayment holiday of up to 24 months
- Loans of up to $5m
- Loan terms of up to 10 years, and
- Secured and unsecured loans
The recovery loans can be used to refinance existing loans, purchase commercial property, purchase another business, or working capital.
Close date: 31 December 2021.
- Small Business Fees and Charges Rebate NSW has increased to $2,000
A rebate is available to small businesses, sole traders and not-for-profits to help them recover from the impacts of COVID-19 and encourage growth by reducing the cost of running a business.
To be eligible:
- have total Australian wages below the NSW Government 2020-21 payroll tax threshold of $1.2 million.
- have an Australian Business Number (ABN) registered in NSW and/or have business premises physically located and operating in NSW.
- Note: Only one $2,000 rebate is available for each ABN.
You just need to apply online if you are a small business or sole trader.
Close date: 30 June 2022.
Other individual & business support available:
- Residential tenancy & landlord support package
- Rent choice – private rental subsidy
- Energy payment assistance
- Road tolls
- Export assistance grants
- Payroll tax deferrals
- Dine & Discover vouchers
- $250 home schooling payment
In Other news:
*New super employer obligation for new staff
When your business hires a new employee, the Choice of Fund form is used to identify where they want their superannuation to be directed. From 1 November 2021, where an employee does not identify a fund, the employer is required to contact the ATO and request details of the employee’s existing superannuation fund or ‘stapled’ fund (the fund stapled to them). The request is made through the ATO’s online services through the ‘Employee Commencement Form’.
If the ATO confirms no other fund exists for the employee, contributions can be directed to the employer’s default fund.
*Single touch payroll reporting (STP)
Single touch payroll will apply to most businesses from 1 July 2021, this will include small businesses (those with 19 or fewer staff) and businesses with closely held employees (e.g., directors of family companies, salary and wages for family employees of businesses).
STP is an Australian Government initiative to reduce employers’ reporting burdens to government agencies.
With STP, you report employees’ payroll information each time you pay them through STP-enabled software. This includes:
- salaries and wages
- pay as you go (PAYG) withholding
- superannuation
You will need to use existing software to regularly report your employees’ payroll and super details to the ATO or there is free software available such as Payroller.
*New Lifetime Director IDs
Directors will be required to register for a unique identification number that they will keep for life, much like a tax file number under a rewrite of Australia’s business registers.
The introduction of the Director Identification Number (DIN) regime is part of the Government’s Modernisation of Business Registers (MBR) Program creating greater transparency and tracking the movements of individuals over time.
Under the new regime, all directors will need to have their identity confirmed when they consent to being a director. You will then keep this number permanently, even if you cease to be a director – the number will not be issued to another person. The result is an ID system that traces a director’s relationships across companies, enabling better tracking of directors of failed companies and prevents the use of fictitious identities.
Existing directors will have until 30 November 2022 to acquire a DIN.
Should you have any questions or need assistance with the above please don’t hesitate to contact us.