THE JOB KEEPER STIMULUS

This scheme introduces various incentives. The same payment is received for a part-time worker as for a full-time worker on any wage.

Many part-timers’ wages will be less than the subsidy; However the employer still has to pay them the $750 per week. The payroll is simpler the fewer employees are on it, so the employer might give one part-timer the bulk of the hours and retrench the others.

Many part-timers are casuals, though, and they aren’t covered unless they are “long term” casuals (seemingly a contradiction in terms).

This means many casuals can expect to be sacked in favour of workers who can be put into “free” $750 per week jobs.

Meanwhile, the superannuation guarantee no longer applies to wages covered by the jobseeker payment, including wages the employer would have paid anyway. That’s something that could lead to all sorts of legal complexities in the future.

As always, we at JMp Accountants are here to work alongside with you as these issues unfold and announcements are made.

Please continue to contact us, and we will endeavour to continue to keep in contact with all of you during these testing times.

Business Support Fund – VICTORIA

• The Victorian Government has launched the $500 million Business Support Fund to support small businesses in the sectors hit hardest by the Coronavirus (COVID-19) pandemic so they can survive and keep people in work.

• The fund is part of the Victorian Government’s $1.7 billion Economic Survival Package which is supporting businesses and workers through the devastating impacts of the Coronavirus (COVID-19) pandemic.

When do applications open and close?

• Applications open on Monday 30 March 2020 and close on Monday 1 June 2020.

• Businesses that have already expressed interest will be contacted by email with a link to apply.

What businesses are eligible to apply for grants under the Business Support Fund? Businesses can apply if they:

• Employ staff

• Have been subject to closure or is highly impacted by Non-Essential Activity Directions issued by the Deputy Chief Health Officer to-date.

• Have a turnover of more than $75,000

• Have payroll of less than $650,000

• Hold an Australian Business Number (ABN) and have held that ABN at 16 March 2020 (date of the State of Emergency declaration)

• Have been engaged in carrying out the operation of the business in the Australian State of Victoria on 16 March 2020.

What sectors are eligible for grants? The Business Support Fund is for small businesses that employ staff and are subject to closure or are highly impacted by the shutdown restrictions announced by the Victorian Government as a result of the Coronavirus (COVID-19).

Why are applications only open to businesses with an annual wage bill of less than $650,000 a year?

The fund is targeted at small businesses that may not be eligible for 2019-20 refunds and waiving of payroll tax, which applies to businesses with wages bills of $650,000 or above. Businesses with a wages bill between $650,000 and $3 million will have their payroll tax refunded and waived for the 2019-20 financial year under the Victorian Government’s $1.7 billion economic survival package.

Why are applications only open to businesses with an annual turnover of more than $75,000? Businesses with a turnover below this level are likely to be sole traders that do not employ people. $75,000 is also the threshold for when the Australian Taxation Office requires a business to register for GST.

If your business is not eligible for this funding you may still be eligible for other support in the Victorian Government’s Economic Survival Package or those provided by the Commonwealth Government or your local council.

What other Victorian Government support is available for businesses and workers impacted by the Coronavirus (COVID-19) pandemic?

• The Victorian Government has announced a $1.7 billion Economic Survival Package to support businesses and workers affected by the COVID-19 outbreak.

In addition to the Business Support Fund, the package also provides:

• Full payroll tax refunds and waivers for the 2019-20 financial year to small and medium-sized businesses with payroll of less than $3 million, which can also defer payroll tax for the first three months of the 2020/21 financial year until 1 January 2021

• Waiving of liquor licensing fees for 2020

• Land tax deferral for landowners that have at least one non-residential property and total taxable landholdings below $1 million

• Fast tracking outstanding supplier invoices to within five business days and future invoices within 10 days

• Rent holiday for commercial tenants in government buildings for 2020.

The current circumstances can be very challenging for many of us; JMP Accountants are here to support you. If you have any queries or concerns please contact us.

If you wish to advertise your business to JMp clients please let us know.