Welcome to the Nuwaru COVID-19 HUB
everything you need to know about the ATO, OSR and government announcements in one place
BREAKING NEWS: JobKeeper Payment - enrol and apply (from 20 April)
To enrol and apply for the JobKeeper payment, please use the button below which will redirect you to the ATO website
For the JobKeeper employee nomination notice, please click on the button below
Steps for employees
For information on the JobKeeper Payment, please click the buttons below.
To register your businesses interest in the JobKeeper payment please use the button below which will redirect you to the ATO website
Frequently asked questions
How does the 30%/50% turnover rule work
Overnight, the Government has issued clarification in relation to the employer eligibility for the JobKeeper subsidy. For business with less than $1bn, their turnover will need to have fallen by more than 30 percent, and for businesses with more than $1bn of turnover, their turnover will need to have fallen by more than 50 percent.
The guidance from Treasury is that to establish that a business has faced a 30% (or 50%) fall in turnover, most businesses would be expected to establish their turnover has fallen in the relevant month or three months relative to their turnover from the same period 12 months prior. Where businesses were not in operation a year earlier or where their turnover a year earlier was not representative of their usual or average turnover, the Tax Commissioner will have the discretion to set out alternative tests that would establish eligibility in specific circumstances. Notably, there will be some tolerance where employers in good faith, estimate a greater than 30%(or 50%) fall in turnover but actually experience a slightly smaller fall.
What is your interpretation of $1bn turnover requirement for large businesses
It is not clear from the Fact Sheets and announcements released by the Federal Government as to how the $1billion turnover should be interpreted for businesses with related entities or subsidiaries. The Government may adopt one of two options. The first is the use of aggregation rules (which are commonly found in small business entity concessions and the like) to calculate turnover for a group of companies. The aggregated turnover is defined as the annual turnover of the company as well as the annual turnover of all the entities that are connected or affiliated with the company. The second option that may be adopted is the use of the significant global entity concept, which is defined as 1) a global parent entity whose annual global income is $1billion or more, or 2) a member of a group of entities consolidated for accounting purposes where the global parent entity has an annual global income of $1billion or more
How does the 30%/50% turnover rule work
Overnight, the Government has issued clarification in relation to the employer eligibility for the JobKeeper subsidy. For business with less than $1bn, their turnover will need to have fallen by more than 30 percent, and for businesses with more than $1bn of turnover, their turnover will need to have fallen by more than 50 percent.
The guidance from Treasury is that to establish that a business has faced a 30% (or 50%) fall in turnover, most businesses would be expected to establish their turnover has fallen in the relevant month or three months relative to their turnover from the same period 12 months prior. Where businesses were not in operation a year earlier or where their turnover a year earlier was not representative of their usual or average turnover, the Tax Commissioner will have the discretion to set out alternative tests that would establish eligibility in specific circumstances. Notably, there will be some tolerance where employers in good faith, estimate a greater than 30%(or 50%) fall in turnover but actually experience a slightly smaller fall.
What is your interpretation of $1bn turnover requirement for large businesses
It is not clear from the Fact Sheets and announcements released by the Federal Government as to how the $1billion turnover should be interpreted for businesses with related entities or subsidiaries. The Government may adopt one of two options. The first is the use of aggregation rules (which are commonly found in small business entity concessions and the like) to calculate turnover for a group of companies. The aggregated turnover is defined as the annual turnover of the company as well as the annual turnover of all the entities that are connected or affiliated with the company. The second option that may be adopted is the use of the significant global entity concept, which is defined as 1) a global parent entity whose annual global income is $1billion or more, or 2) a member of a group of entities consolidated for accounting purposes where the global parent entity has an annual global income of $1billion or more
Large business measures
Payment deferrals
If you're having difficulty paying your tax, the ATO is encouraging you to contact them as early as possible to discuss your situation as they have a range of options to support you through this period. This can include deferring your income tax, FBT and excise payment due dates up to 12 September 2020, stopping interest accruing on your tax liabilities, and low interest payment arrangements.
Some of the common requests include:
Currently assistance for large business is tailored to the circumstances of the particular business. We have helped several clients approach the ATO to seek a deferral, if you need assistance please contact us at enquiries@nuwaru.com
Alternatively to contact the ATO directly, please reach out to the Large Services Team
If you're having difficulty paying your tax, the ATO is encouraging you to contact them as early as possible to discuss your situation as they have a range of options to support you through this period. This can include deferring your income tax, FBT and excise payment due dates up to 12 September 2020, stopping interest accruing on your tax liabilities, and low interest payment arrangements.
Some of the common requests include:
- Varying PAYG instalments to zero in the March 2020 BAS (and claiming a 5B credit for previous instalments)
- Deferral of net GST liabilities on BAS
- Deferral of income tax balancing charges
- Deferral of FBT instalments/balancing payments
- Moving from quarterly to monthly BAS to access refunds
- Remission of interest and penalties associated with the above
Currently assistance for large business is tailored to the circumstances of the particular business. We have helped several clients approach the ATO to seek a deferral, if you need assistance please contact us at enquiries@nuwaru.com
Alternatively to contact the ATO directly, please reach out to the Large Services Team
Technical issues
In addition to cash flow issues, there are a number of issues arising for business from the current circumstances, including:
If you need assistance on these issues, please contact Nuwaru (or please contact Sam Lo Ricco directly as our COVID-19 Lead Partner) or the Large Services Team at the ATO
In addition to cash flow issues, there are a number of issues arising for business from the current circumstances, including:
- PAYGW issues for your employees
- fringe benefits tax - WFH/ relocations
- GST
- tax residency - inability to travel (individual implications)
- permanent establishments - in abililty to travel / temporary relocations
- employee share schemes - what to do with worthless grants
- thin capitalisation - new capital and debt raising / impairment of assets / reliance on ALDT
- non-performing loans / bad debts / TOFA
- trading stock - market value
- custom duty refunds
- lodgement implications
- responding to ATO information requests
- compliance engagements
If you need assistance on these issues, please contact Nuwaru (or please contact Sam Lo Ricco directly as our COVID-19 Lead Partner) or the Large Services Team at the ATO
Support for significantly impact regions, communities and industries
The Government has set aside an initial $1 billion to support those regions, communities and industries that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education. The $1 billion will be spent through existing or newly established Government programs or initiatives
The Government has set aside an initial $1 billion to support those regions, communities and industries that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education. The $1 billion will be spent through existing or newly established Government programs or initiatives
Small & medium enterprise measures
Increasing the instant asset write-off
From 12 March 2020 until 30 June 2020, the instant asset write-off:
Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.
From 1 July 2020, the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.
From 12 March 2020 until 30 June 2020, the instant asset write-off:
- threshold is $150,000 (up from $30,000)
- eligibility range covers businesses with an aggregated turnover of less than $500 million (up from $50 million).
Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.
From 1 July 2020, the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.
Accelerated depreciation
Businesses with an aggregated turnover of less than $500 million are able to accelerate their depreciation deductions on the purchase of certain new depreciable assets.
This applies to eligible assets acquired and first used or installed ready for use from 12 March 2020 until 30 June 2021.
Businesses with an aggregated turnover of less than $500 million are able to accelerate their depreciation deductions on the purchase of certain new depreciable assets.
This applies to eligible assets acquired and first used or installed ready for use from 12 March 2020 until 30 June 2021.
Boosting cash flow for employers
Temporary cash flow support to small and medium businesses and not-for-profit organisations that employ staff during the economic downturn associated with COVID-19. This will be done through two sets of cash flow boosts delivered from 28 April 2020 to support employers to retain employees.
Stage 1 payment - With the lodgement of March 2020 activity statements from 28 April 2020 employers that withhold PAYG tax on their employees’ salary and wages will receive a tax-free payment equal to 100% of the amount withheld, up to a maximum of $50,000.
Stage 2 payment - For employers that continue to be active, an additional (tax-free) payment will be available in respect of the June and September 2020 quarters (or monthly as applicable) period up to a maximum of $50,000 (based on the stage 1 payment).
Temporary cash flow support to small and medium businesses and not-for-profit organisations that employ staff during the economic downturn associated with COVID-19. This will be done through two sets of cash flow boosts delivered from 28 April 2020 to support employers to retain employees.
Stage 1 payment - With the lodgement of March 2020 activity statements from 28 April 2020 employers that withhold PAYG tax on their employees’ salary and wages will receive a tax-free payment equal to 100% of the amount withheld, up to a maximum of $50,000.
Stage 2 payment - For employers that continue to be active, an additional (tax-free) payment will be available in respect of the June and September 2020 quarters (or monthly as applicable) period up to a maximum of $50,000 (based on the stage 1 payment).
Retaining apprentices and trainees
The Government is supporting small business to retain their apprentices and trainees
The Government is supporting small business to retain their apprentices and trainees
Unsecured loan guarantees
The Federal Government will establish the Coronavirus SME Guarantee Scheme which will support small and medium enterprises (SMEs) to get access to working capital to help them get them through the impact of the coronavirus.
Under the Scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs. The loans will not require repayment for the first six months, and will be for a maximum of $250,000 over three years.
Customers do not need to have existing lending to apply. The Government expects it to be operational by early April 2020
The Federal Government will establish the Coronavirus SME Guarantee Scheme which will support small and medium enterprises (SMEs) to get access to working capital to help them get them through the impact of the coronavirus.
Under the Scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs. The loans will not require repayment for the first six months, and will be for a maximum of $250,000 over three years.
Customers do not need to have existing lending to apply. The Government expects it to be operational by early April 2020
Financially distressed businesses
The Government is 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. The Government has created a safety net to lessen the threat of actions that could unnecessarily push them into insolvency and force the winding up of a business
The Government is 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. The Government has created a safety net to lessen the threat of actions that could unnecessarily push them into insolvency and force the winding up of a business
Individual measures
Superannuation
The Government is allowing individuals affected by the Corona virus to access up to $10,000 of their superannuation in 2019-2020 and a further $10,000 in 2020-2021
The Government is allowing individuals affected by the Corona virus to access up to $10,000 of their superannuation in 2019-2020 and a further $10,000 in 2020-2021
The Government is helping retirees to manage the impact of volatility in financial markets on their retirement savings by temporarily reducing superannuation minimum drawdown requirement
Income support
The Government is providing increased and accelerated income support for individuals to assist them during the next six months
The Government is providing increased and accelerated income support for individuals to assist them during the next six months
Support payments
The Government is providing 2 separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders
The Government is providing 2 separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders
NSW measures
Payroll tax
Payroll tax customers whose total grouped Australian wages for the 19/20 financial year are over $10million, will have the option of deferring the payment of payroll tax for up to 6 months.
Further, payroll tax customers whose total grouped wages are under $10million will have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July.
For customers who lodge and pay monthly and whose total wages are no more than $10m for the current financial year, no payment is required for the months of March, April or May.
Payroll tax customers whose total grouped Australian wages for the 19/20 financial year are over $10million, will have the option of deferring the payment of payroll tax for up to 6 months.
Further, payroll tax customers whose total grouped wages are under $10million will have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July.
For customers who lodge and pay monthly and whose total wages are no more than $10m for the current financial year, no payment is required for the months of March, April or May.
Other states and territories have announced similar payroll tax concessions - coming soon
Gaming machine tax
Clubs and hotels will have their gaming machine tax payments deferred from March 2020 until 1 September 2020. More information on payment arrangements will be provided soon.
Parking space levy
Parking space levy payments will be deferred until 30 September 2020. More information on payment arrangements will be provided soon.
Lotteries and Keno
Lotteries and Keno payments will be deferred from 1 April 2020 to 30 September 2020. More information on payment arrangements will be provided soon.
$10,000 small business grant
To be eligible, businesses will need to:
Clubs and hotels will have their gaming machine tax payments deferred from March 2020 until 1 September 2020. More information on payment arrangements will be provided soon.
Parking space levy
Parking space levy payments will be deferred until 30 September 2020. More information on payment arrangements will be provided soon.
Lotteries and Keno
Lotteries and Keno payments will be deferred from 1 April 2020 to 30 September 2020. More information on payment arrangements will be provided soon.
$10,000 small business grant
To be eligible, businesses will need to:
- Have between 1-19 employees and a turnover of more than $75,000;
- A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;
- Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
- Be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020;
- Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
- Provide appropriate documentation upon application.
Victorian measures
Economic survival package fact sheet
The Victorian Government has established an economic survival package to support Victorian businesses and workers through the devastating impacts of the COVID-19 pandemic
The Victorian Government has established an economic survival package to support Victorian businesses and workers through the devastating impacts of the COVID-19 pandemic
Business support fund
As part of a $1.7 billion economic survival package, the Victorian Government has launched a $500 million Business Support Fund to assist small to medium businesses most impacted by the COVID-19 outbreak. Funding of $10,000 per business is available and will be allocated through a grant process
As part of a $1.7 billion economic survival package, the Victorian Government has launched a $500 million Business Support Fund to assist small to medium businesses most impacted by the COVID-19 outbreak. Funding of $10,000 per business is available and will be allocated through a grant process
Payroll tax
Businesses with annual Victorian taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived.
Eligible businesses can claim a reimbursement of payroll tax already paid in the 2019-20 financial year via PTX Express. The State Revenue Office has clarified that the $3 million threshold applies to each employer and not on a payroll tax group basis. This measure is a permanent refund rather than just a deferral of the tax paid and is expected to cost the Government around $550m
The same businesses will be able to defer any payroll tax for the first three months of the 2020-21 financial year, freeing up cash flow. However, this measure is merely a deferral of the time for payment rather than being a permanent waiver or refund of the payroll tax liability
Businesses with annual Victorian taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived.
Eligible businesses can claim a reimbursement of payroll tax already paid in the 2019-20 financial year via PTX Express. The State Revenue Office has clarified that the $3 million threshold applies to each employer and not on a payroll tax group basis. This measure is a permanent refund rather than just a deferral of the tax paid and is expected to cost the Government around $550m
The same businesses will be able to defer any payroll tax for the first three months of the 2020-21 financial year, freeing up cash flow. However, this measure is merely a deferral of the time for payment rather than being a permanent waiver or refund of the payroll tax liability
Working for Victoria Fund
Under the $500 million Working for Victoria Fund, displaced workers will be eligible to apply for different types of work. This presents opportunities for paid work and an opportunity to contribute to Victoria’s ability to manage this event and support the community
Under the $500 million Working for Victoria Fund, displaced workers will be eligible to apply for different types of work. This presents opportunities for paid work and an opportunity to contribute to Victoria’s ability to manage this event and support the community
Land tax deferral
Landowners that have at least one non- residential property and total taxable landholdings below $1 million have the option of deferring their 2020 land tax payment until after 31 December 2020
The State Revenue Office will contact all taxpayers who are eligible for this deferral
Landowners that have at least one non- residential property and total taxable landholdings below $1 million have the option of deferring their 2020 land tax payment until after 31 December 2020
The State Revenue Office will contact all taxpayers who are eligible for this deferral
Fast tracking outstanding supplier payments
The Government will pay all outstanding supplier invoices within five business days – releasing up to $750 million into the economy earlier. The private sector is urged to do the same where possible
The Government will pay all outstanding supplier invoices within five business days – releasing up to $750 million into the economy earlier. The private sector is urged to do the same where possible
Relief for commercial tenants in government buildings
The Government will work directly with commercial tenants in government buildings who can apply for rent relief. Private landlords are also being encouraged to provide rent relief or holidays to help businesses
The Government will work directly with commercial tenants in government buildings who can apply for rent relief. Private landlords are also being encouraged to provide rent relief or holidays to help businesses
Liquor licence fees waived
Renewable liquor licence fees for 2020 will be waived. Businesses that have already paid will be reimbursed.
The State Revenue Office will administer the reimbursement, regardless of whether the licence fee was paid to it or the Victorian Commission for Gaming and Liquor Regulation
Renewable liquor licence fees for 2020 will be waived. Businesses that have already paid will be reimbursed.
The State Revenue Office will administer the reimbursement, regardless of whether the licence fee was paid to it or the Victorian Commission for Gaming and Liquor Regulation
Victorian Government - FAQs
Need Help?
Please reach out to Sam Lo Ricco our COVID-19 Lead Partner (email link below) for a free consultation on any of the above measures