The NSW State and Federal Governments have announced a series of measures to provide additional economic assistance in response to COVID-19. These measures are designed to discourage the layoff of staff & require clubs to continue to lodge all their tax returns such as BAS, IAS, and fringe benefits tax on time.
Clubs should ensure that the ATO & Revenue NSW have up-to-date contact details, including current bank account details to ensure that there is no delay in providing payments.
The following is a summary of those measures:
Clubs who pay payroll tax & have total wages for the 2019/20 financial year of no more than $10 million will have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July.
For those Clubs who lodge and pay monthly and whose total Australian wages will be no more than $10 million for the current financial year, no payment for the months of March, April or May 2020 will be required.
When lodging your annual reconciliation, you will still need to provide wage details paid in these months and will receive the benefit of a 25% reduction in the amount of tax you would have had to pay for 2019-20.
Payroll Tax threshold increase 2020-2021 financial Year
The tax-free threshold will increase from $900,000 to $1 million for the financial year commencing on 1 July 2020.
NSW Government Taxes, Fees & Charges
The NSW Government has announced they will waive a range of fees & charges for small businesses including bars, cafes, restaurants and trades, but at this time there is little detail available.
If Clubs have any taxes or charges due in the next six months, they should check with the appropriate government authority to see if payment can be deferred.
While no government announcements have been made at this stage with respect to assistance for employees/tenants who are experiencing financial hardship, media reports are suggesting a response from authorities in the near future.
More information on workplace responsibilities can be found in the link below:
Business & Employee Workplace responsibilities during COVID-19
Cashflow assistance Business Payments
The Federal Government has announced tax-free cash payments will be available to small businesses and not-for-profits up to $100,000. Small businesses are those with turnovers up to $50million. This is a top-up from the $25,000 announced two weeks ago.
These payments will be provided by way of a credit through Business Activity Statements and are primarily to discourage staff layoffs.
The cash assistance will commence in April, with up to $50,000 before 30 June 2020, and up to $50,000 in the 2021 financial year up to 30 September 2020.
There are differences for monthly or quarterly lodgers and post 30 June 2020. Clubs must continue to be an active lodger to receive assistance. The link below provides further detail of how these cash payments work.
Apprentices & Trainees
Wage subsidies of up to 50% of an apprentice or trainee wage are available.
Eligible employers can apply for a wage subsidy of 50% of the apprentice or trainees wage for up to 9 months from 1 January 2020 to 30 September 2020. The payments are accessible to businesses with less than 20 employees. Employers will receive up to $21,000 per apprentice ($7,000 per quarter).
The trainee wage subsidy only applies to trainees employed as of 1 March 2020. Employers will be able to register for the subsidy from early April 2020. Final claims for payment must be lodged by 31 December 2020.
Taxpayers can obtain a deferral of up to six months for payment of tax debts. The application is to be made through the ATO.
Temporary relief for financially distressed businesses
The economic impact of the coronavirus & health measures to prevent its spread could temporarily see businesses face financial distress. The Government has introduced several measures to lessen the threat of actions that could push clubs into insolvency and force the winding of the organisation. The link below provides further detail.
It has been reported in the press that some local councils are putting together assistance packages for small businesses.
Clubs should check with their local council to see if there has been an announcement regarding any assistance they might provide to support local businesses at this time.