Posts tagged " Jobkeeperpayment "

Business Support Fund

Victorian Business Support Fund

September 15th, 2020 Posted by B&W Additions News, Individuals, Jobkeeper Payment, News, Pension, Retirees, Superannuation No Comment yet

Over the weekend the Victorian Government release details of another round of the Business Support Fund to assist ease the financial burden being felt by many businesses in Victoria that are being adversely impacted by the ongoing lock downs  The amount of financial support on offer is unlikely to ease much of the pain that small businesses are suffering and if you are a sole trader then this package is offering no assistance.  There is supposed to be further announcements setting out an assistance package to those sole traders so we will have to wait to see what form that assistance is likely to take.


Cash grants of between $10,000 and $20,000 depending on the business’ annual payroll.  If you are an eligible business you will receive one of the following amounts:

  • $10,000 if your annual payroll is less than $650,000
  • $15,000 if your annual payroll is between $650,000 and $3.0m
  • $20,000 if your annual payroll is between $3.0m and $10.0m

To be eligible for the above cash grants you must:

  • Operate a business located in Victoria;
  • Participate in the JobKeeper Payment scheme;
  • Employ people and be registered with WorkSafe;
  • Have had an annual payroll of less than $10.0m in the 2020 financial year;
  • Be registered for GST;
  • Hold an ABN; and 
  • Be registered with the responsible Federal or State regulator (waiting on clarification as to what this actually means)

Cash grants of up to $30,000 for licensed pubs, clubs, hotels, bars, restaurants and reception centres.  The level of the cash grant is subject to venue capacity and location.


The latest round of assistance also includes additional funding, tools and resources to assist businesses prepare for re-opening.  Under the business adaption the Victorian Government is allowing:

  • A $20.0m voucher program to assist sole traders and small businesses build their digital presence/capability
  • A $15.7m package to help Victorian exporters get their products to market and establish new trade channels
  • A $8.5m expansion to the “Click for Vic” campaign to encourage more Victorians to support local business

The Victorian Government is also offering some waivers and deferrals.  These include:

  • A deferral of payroll tax liability for the full 2020/21 financial year

[This should come with a warning that it is a deferral of payroll tax payable and not a waiver.  If your business is paying payroll tax and you are able to continue to fund the liability then we suggest that you do so as accepting a deferral can create it own cash flow problems down the track.  An increase in the payroll tax threshold from $650,000 to $1.5m would have been more beneficial for businesses as it would provide relief from a tax that is imposed on businesses employing people.  In an environment where unemployment is forecast to be greater than 10% you would think that they would put together a business support fund that encouraged businesses to employ people or at a minimum retain their current employees].

  • Bring forward the 50% Stamp Duty discount for commercial/industrial property for all of Regional Victoria.
  • Deferral of the planned increase in landfill levy for 6 months
  • 25% waiver for the Congestion Levy for this year (presumably they refer to financial year but not clear in the current release)
  • Liquor license fee to be waived for 2021
  • Waiving of the Vacant Residential Land Tax for vacancies in 2020

We will advise you of when the application process opens for the third round of cash grants.

In the meantime please do not hesitate to contact us on on 03 96291433 if you have any queries.


Victorian Business Support Fund

Extension of the JobKeeper Scheme

Extension of the JobKeeper Scheme

July 22nd, 2020 Posted by B&W Additions News, Individuals, Jobkeeper Payment, News, Pension, Retirees, Superannuation No Comment yet

The Government announced on 21 July 2020 that they will be extending the JobKeeper scheme for another six months. Payments dates for the JobKeeper scheme when originally announced were to 27th September 2020. 

Due to the continued deterioration of the economy and the community spread of COVID-19 the scheme will now run until 28 March 2021. We have outlined below some of the key points of the extended scheme as announced today.


Eligibility

To be eligible for the JobKeeper payments under the extended time frame you will need to have experienced an actual decline in turnover of:

  • 50 per cent for those with an aggregated turnover of more than $1 billion; 
  • 30 per cent for those with an aggregated turnover of $1 billion or less; or 
  • 15 per cent for Australian Charities and Not for profits Commission-registered charities 

The JobKeeper payment extension is open to both existing and new recipients as long as you meet the original eligibility requirements and the additional turnover tests during the extension period. 


Comparison Period

For JobKeeper extension dates commencing 28th September 2020 and ending 3rd January 2021 you will need to demonstrate that you have met the relevant continuing decline in turnover test in both of the following quarters:

  • June 2020 quarter v June 2019 quarter; and
  • September 2020 quarter v September 2019 quarter.

You will then need to re-assess your ongoing eligibility in January for the period commencing 4th January 2021 and ending 28th March 2021.  To be eligible for the continued JobKeeper payments you will need to demonstrate that you have met the relevant continuing decline in turnover test in all of the following quarters:

  • June 2020 quarter v June 2019 quarter; and
  • September 2020 quarter v September 2019 quarter; and
  • December 2020 quarter v December 2019 quarter.

Recipients will need to assess their eligibility in advance before finalising their Business Activity Statements in order to enrol in the extended JobKeeper scheme. To give employers time to evaluate, the Commission of Taxation will have the discretion to extend the time where employers are required to pay the JobKeeper top up in advance in order to be reimbursed by the Australian Tax Office.

The existing rules for eligible employees remain unchanged.


Payment rates

For JobKeeper extension dates commencing 28th September 2020 to 3rdJanuary 2021 the payment rate are as follows:

  • $1,200 per fortnight for all eligible employees who, in the four weeks before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020
  • $750 per fortnight for other eligible employees and business participants.

For JobKeeper extension dates commencing 4th January 2021 to 28th March 2021 the payment rate are as follows:

  • $1,000 per fortnight for all eligible employees who, in the four weeks before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and for business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020
  • $650 per fortnight for other eligible employees and business participants.

For further information, visit the Australian Government Treasury Website fact sheet

Should you have any queries regarding the JobKeeper Scheme, please do not hesitate to contact either our office on 03 96291433 to discuss.

Things to know about the Jobkeeper Scheme

Things to know about the JobKeeper Scheme

April 27th, 2020 Posted by B&W Additions News, Individuals, Jobkeeper Payment, News, Pension, Retirees, Superannuation No Comment yet

The ATO is now accepting applications from employers to participate in the scheme.  It feels like everyday we are getting more guidance on how the scheme will operate and new rules on eligibility of employers[…]

jobkeeper scheme - Alternative Decline in Turnover Tests

JobKeeper Scheme – Alternative Decline in Turnover Tests

April 27th, 2020 Posted by B&W Additions News, Employers, Individuals, Jobkeeper Payment, News No Comment yet

One of the main eligibility rules to become an eligible employer under the JobKeeper scheme is to be able to demonstrate that the businesses turnover has declined by more than 30% (where the business’ aggregate turnover was less than $1.0b) to a comparable period[…]