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  • There will be a temporary reduction to superannuation minimum drawdown requirements for account based pensions and similar products by 50 per cent for 2019-20 and 2020-21.
  • There will be a temporary increase to the threshold at which a creditor can take action to initiate insolvency or bankruptcy from $5,000 to $20,000 and companies and individuals will have six months to respond instead of 21 days.
  • There will also be relief for directors for personal liability when the company is trading while insolvent.

Coronavirus SME Guarantee Scheme

·           The Government will provide a guarantee of 50 percent to businesses with a turnover of up to $50 million, for new unsecured loans to be used for working capital.

·           The maximum total size of loans will be $250,000 per borrower

·           The loans will be for a term of up to three years with an initial six-month repayment holiday, and will be available for new loans made until 30 September 2020.

Early release of superannuation

  • From April, individuals will be able to access their superannuation, capped at $10,000 this financial year and a further $10,000 next financial year. The withdrawals will be tax-free and will be made available to those eligible for the coronavirus supplement as well as sole traders who have seen their hours of work, or income fall, 20% of more as a result of the coronavirus.
  • There will be expanded access to income support payments for the self-employed, causal workers, contract workers and employees who are stood down or lose their employment.
  • There will be reduced means testing and a reduction in waiting times.
  • There will also be a new $550 per fortnight Coronavirus supplement, commencing from 27 April 2020
  • This will be paid to both existing and new recipients of the JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.
  • The Coronavirus supplement will be paid for the next 6 months. Eligible income support recipients will receive the full amount of the $550 Coronavirus supplement on top of their payment each fortnight.

Payments for households

  • A further $750 payment to social security and veteran income support recipients and eligible concession card holders, except for those who are receiving an income support payment that is eligible to receive the coronavirus supplement. This second payment will be made automatically from 13 July 2020 and is estimated to cost $4b over the forward estimates period

Cashflow assistance for employers

  • The second stimulus package will build on the tax free cash payments announced in the first package, with both thresholds and payment amounts increasing.
  • SME employers, including not-for-profit and charities with aggregated annual turnovers of under $50 million will be eligible for tax-free payments of up to $100,000 per employer. The payments will be delivered in two phases – the first phase will equal 100 per cent of the PAYG withheld on salary and wages for the period January – June 2020 up to a maximum of $50,000, and will be paid following lodgement of the March and June quarter activity statements.
  • To qualify for the second phase of payments, the entity must continue to be active. The second phase of payments will be made following lodgement of the June and September quarter BAS's and each second phase payment will be equal to half of the total first phase payments
  • Eligible businesses that pay salary and wages but are not required to withhold tax will receive a total minimum payment of $20,000, up from $2000 in the first package. The first payment of $10,000 will be available from 28 April 2020 and, will be paid as a credit to the business upon lodgement of the March quarter activity statement, with a second payment of $5,000 paid upon lodgement of the June quarter activity statement and a final payment of $5,000 paid upon lodgement of the September quarter activity statement.
  • Monthly activity statement lodgers will begin to receive their payments from 28 April 2020.
  • The payments are tax free, there will be no new forms and payments will flow automatically through the ATO.  The payments will only be available to active eligible employers established prior to 12 March 2020, with the exception of charities who will be eligible regardless of when they were registered.

The instant asset write-off threshold of $30,000 has been extended to 30 June 2020.

Business with a turnover less than $50 million can claim a tax deduction of up to $30,000 for the business portion of each asset (new or second hand), purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020.

NB: The GST exclusive cost of the asset must be less than $30,000 in order to claim an instant asset write-off.

DROUGHT ASSISTANCE FUND

The Drought Assistance Fund provides a $50,000 interest free seven year loan to transport stock, fodder and water; genetic banking of breeding herds, fodder and water infrastructure and activities which promote profitability and resilience as a result of the on-farm investment. No repayment is required in the first two years.

www.raa.nsw.gov.au/loans/drought-assistance-fund
NB: Applicants who received a loan in the 2018-19 financial year can apply for an additional loan of up to $50,000 in the 2019-20 financial year.

FARM INNOVATION FUND

The Farm Innovation Fund provides a low interest loan scheme to build permanent infrastructure to a maximum of $1,000,000 per project. 

The Farm Innovation Funds helps to improve farm productivity, manage adverse seasonal conditions and ensure long term sustainability.  The interest rate is fixed at 2.5% and the loan is for a maximum 20 year period.

www.raa.nsw.gov.au/loans/farm-innovation-fund
Interest charges on Farm Innovation Fund loans for the 2019-20 year will be waived.

FUEL TAX CREDIT RATES

Fuel tax credit rates increased on 5 August 2019.  The new rates are 16 c/litre for heavy vehicles travelling on public roads and 41.8 c/litre for vehicles travelling off public roads and for powering auxiliary equipment of a heavy vehicle.

EMERGENCY WATER INFRASTRUCTURE REBATE

The Emergency Water Infrastructure Rebate covers 25% of the cost of purchase, delivery and installation of water infrastructure that addresses animal needs and improves resilience to drought.

Eligible activities include:

  • Pipes
  • Water storage devices such as tanks and troughs
  • Pumps
    De-silting of existing dams
  • Bores and associated power supply.

Ineligible activities include:

  • Construction of dams
  • Water infrastructure for uses other than to supply water for livestock.

The rebate can be claimed for eligible water infrastructure expenses since 1 July 2018, up to a maximum rebate of
$25,000 per farm enterprise.

Apply at www.raa.nsw.gov.au/grants/emergency-water-infrastructure-rebate-scheme

EMERGENCY DROUGHT TRANSPORT SUBSIDY

Round Two of the Drought Transport Subsidy is now available. The subsidy can be applied for the cost of transporting fodder, water to a property for stock or domestic use, stock  to and from agistment, and stock to sale or slaughter. For applications received from 1 July 2019 the subsidy also includes transporting of farm chemicals, fertiliser and seed  to farms.

Farmers who applied for the Drought Transport Subsidy in the 2018/19 financial year (Round One) are able to apply for an additional $40,000 for invoices dated between 1 July 2019 to 30 June 2020. Farmers who did not apply for the Drought Transport Subsidy prior to 30 June 2019 (Round One), can apply for a maximum subsidy of $40,000 for invoices dated from 1 January 2018 to 30 June 2020.

The subsidy covers up to 50% of the full cost of freight up to a maximum of $7.50 per kilometre. For invoices dated from  1 July 2019 to 30 June 2020, the maximum distance of 1500km that is able to be subsidised has been removed.

Apply at www.raa.nsw.gov.au/grants/transport-subsidy-emergency-drought-relief.

NSW LONG SERVICE LEAVE CORPORATION

Workers must be registered and record the time worked in the relevant industry at the end of each financial year.  Self-employed workers also report details of their assessable income and prescribed costs each year.  Lodgements can now be made for up to 6 prior financial years.

Workers covered by the Building and Construction Industry Long Service Payments Act 1986 are those who carry out construction, reconstruction, renovation, alteration, demolition, maintenance or repairs of or to any of the following: Airfields, aqueducts, breakwaters, bridges, buildings, chimney stacks, cooling towers, docks, drilling rigs, fences, gas holders, works for water supply or storage, harbour/river or water course improvements for the purpose of navigation, jetties, irrigation works, navigational lights/beacons or markers, piers, pile driving, pipelines, railways, roads, sewerage works, silos, swimming pools, transmission of electric power, transmission of wireless or telegraphic communications, tunnels, viaducts and wharves.

It includes structures, fixtures or works for use in, or in conjunction with, any of the above and site preparation. Work is not restricted to onsite work; it also includes some offsite work.

Work carried out in NSW in the contract cleaning industry has been covered since 1 July 2011. The work has to be all or mostly involved in bringing a premises to a clean condition, or keeping it in a clean condition. A premise means the whole or any part of a building, structure or place, whether built on or not. The scheme covers cleaning work performed on commercial and domestic premises and can include a small amount of minor property maintenance. 

Examples of types of cleaning work covered include: mopping, vacuuming, dusting, sweeping, Carpet cleaning, high pressure cleaning of pavers, walkways and buildings, window and gutter cleaning, graffiti removal, swimming pool cleaning (not repair &/or maintenance work), housekeeping.

For more information, go to:  https://www.longservice.nsw.gov.au