Fact Sheet for Businesses/Organisations

Support for organisations affected by COVID-19

The Australian Government has announced measures to assist businesses and
employers affected by COVID-19.
This information is current as at Monday 23 March 2020.

The Australian Government has announced a range of measures to assist businesses
and employers. This guide is intended as an explainer only and we encourage you to
contact each relevant government department for more information.

Boosting Cash Flow for Employers

Employers will receive a payment equal to 100% of the amount withheld from salary
and wages (PAYG), with the maximum payment being $50,000 and the minimum
payment $10,000.

Employers will receive an additional payment equal to the total of all of the Boosting
Cash Flow for Employers payments received in the first quarter. This means that
eligible businesses will receive at least $20,000 up to a total of $100,000 under both
payments.

All small to medium businesses with an aggregated annual turnover under $50 million
and that employ workers will be eligible, including not for profits.

These payments will be delivered through the Australian Taxation Office (ATO) as a
credit in the activity statement system from 28 April 2020 upon businesses lodging
eligible upcoming activity statements.

What does this mean?

• Businesses will receive a credit equal to the amount of PAYG reported once they
have completed their March 2020 BAS.
• Businesses will continue to receive credits each time they report PAYG for the
remainder of 2020 until they have reached their eligible limit of $20,000-$100,000
depending on the size of their company and their payroll.
• Both payments will come through as credits in the tax system – there is no need to
apply for these payments.

For more information see: https://www.business.gov.au/riskmanagement/
emergency-management/coronavirus-information-and-support-forbusiness/
boosting-cash-flow-for-employers


Tax support

The ATO will provide administrative relief for certain tax obligations for taxpayers
affected by the coronavirus outbreak, on a case-by-case basis. This includes payment
deferrals and remitting interest and penalties.

What does this mean?

• You can contact the tax office and see how they can help you with your specific
circumstances.

For more information see:https://www.ato.gov.au/Individuals/Dealing-withdisasters/
In-detail/Specific-disasters/COVID-19/

Instant asset write-off

The instant asset write-off threshold has been increased to $150,000 and expanded to
include businesses with an aggregated annual turnover of less than $500 million. This
applies from 12 March 2020 to 30 June 2020, for new or second-hand assets first used
or installed ready for use in this timeframe.

What does this mean?

• Companies can write off the value of their assets, free up their depreciation liabilities
and reduce their taxable income, thus encouraging new investment.

For more information see: https://www.business.gov.au/riskmanagement/
emergency-management/coronavirus-information-and-support-forbusiness/
instant-asset-write-off

Deferred loan payments

The Australian Banking Association has announced that all small businesses affected
by COVID-19 will be able to access a six-month deferral on loan repayments. Contact
your lender for more information.

Small to Medium Enterprise (SME) Guarantee Scheme

The Government will provide a guarantee of 50% to small and medium enterprise
lenders for new unsecured loans to be used for working capital. SMEs with a turnover
of up to $50 million will be eligible to receive these loans. The Government will provide
eligible lenders with a guarantee for loans with the following terms:

• Maximum total size of loans of $250,000 per borrower.
• The loans will be up to three years, with an initial six-month repayment holiday.
• The loans will be in the form of unsecured finance, meaning that borrowers will not
have to provide an asset as security for the loan.

What does this mean?

• Small-to-medium companies can apply for loans with less burdensome asset criteria,
and they won’t have to make any repayments for six months.

For more information see: https://www.business.gov.au/Riskmanagement/
Emergency-management/Coronavirus-information-and-support-forbusiness/
Coronavirus-SME-Guarantee-Scheme

Continuing business

There are positive steps you can take to keep your business operating including
reviewing your finances and updating your business continuity plan, as well as getting
advice on handling cancellations and supporting your mental health.

For more information see: https://www.business.gov.au/riskmanagement/
emergency-management/coronavirus-information-and-support-forbusiness/
continuing-your-business

Health and safety

As an employer, you're required to ensure the health and safety of your workers. If an
employee is at risk of infection from coronavirus, you should request the employee
seek medical clearance from a doctor, work from home or not work during the risk
period.

You need to provide information and procedures to all employees and contract staff.
Inform staff who meet the isolation criteria that they should remain isolated in their
home.

For more information see: https://www.health.gov.au/


Support for casual employees

Casual employees will be the most affected, with their hours being reduced or cut all
together. Employers should provide their casual employees with information about
support available to them. The support available includes:

Income support payments

The Government is temporarily expanding eligibility to income support payments and
establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550
per fortnight. This supplement will be paid to both existing and new recipients of
Jobseeker payments, Youth Allowance Jobseeker, Parenting payment, Farm
Household allowance, Special Benefits. These changes will apply for the next six
months. Expanded access will allow sole traders, the self-employed, contract workers
and casual workers to apply for income support payments with reduced means testing,
reduced waiting times and flexible jobseeking arrangements.

For more information see: https://www.business.gov.au/Risk-management/Emergencymanagement/
Coronavirus-information-and-support-for-business/Increased-andaccelerated-
income-support

Early access to superannuation

Individuals affected can access up to $10,000 of their superannuation in 2019-20 and a
further $10,000 in 2020-21. Individuals can apply from mid-April 2020 if they are
unemployed or their business turnover as reduced.

What does this mean?

• If you’re impacted by COVID-19, you can take two lots of $10,000 out of your
superannuation account tax free – one now, and one after 1 July during the 2020-
2021 financial year
• Be careful to consider this as a last resort so that you are protecting your super for
your retirement. Many artists and artsworkers don’t have a great deal of super in
their accounts, and a $20,000 withdrawal may be detrimental to your future savings.

For more information see: https://www.business.gov.au/Riskmanagement/
Emergency-management/Coronavirus-information-and-support-forbusiness/
Early-access-to-superannuation

Stay updated

Up-to-date information on all the above and new measures can be found on:
https://treasury.gov.au/coronavirus/businesses
https://www.business.gov.au/Risk-management/Emergencymanagement/
Coronavirus-information-and-support-for-business