Please find below a further update on the assistance for businesses as a result of the impacts of COVID-19.
The Government will today announce a second stage of measures to keep businesses in business and to keep workers in jobs.
This stage of measures is squarely focused on getting businesses and their workers through to the other side of this crisis.
The measures include:
- A wage subsidy for small and medium businesses to save jobs; and
- A guarantee on loans to small and medium businesses so they can keep in business.
1. Support to Keep Australians in Jobs
We are giving businesses a cash payment of up to $100,000 for the period March 2020 to September 2020.
That payment will be worth 100% of the tax those small and medium businesses, with a turnover less than $50 million, are withholding from their employees salary and wages.
The payment will be tax free. It will now also be available to eligible charities or other not-for-profit entities.
How the Payment Works
Eligible businesses that withhold tax to the ATO on their employees’ salary and wages – they report it each month or quarter anyway - will receive a payment equal to 100 per cent of the amount withheld, up to a maximum payment of $100,000.
Eligible businesses that pay salary and wages will receive a minimum payment of $20,000, even if they are not required to withhold tax.
In our first package we announced the cash payment would be 50% of tax withheld worth up to $25,000 in payments or a minimum of $2,000.
This announcement builds on the cash flow boost from the first package worth $6.7 billion. This new measure is worth $25.2 billion so in total it’s worth $31.9 billion.
The Government expects it will benefit around 690,000 businesses employing around 7.8 million people and 30,000 not-for-profits.
We estimate these businesses employ:
· NSW – Around 2.5 million people
· Vic – Around 2 million people
· Qld – Around 1.5 million people
· WA – Around 810,000 people
· SA – Around 480,000 people
· TAS – Around 155,000 people
· NT – Around 63,000 people
· ACT – Around 115,000 people