COVID-19 Update

COVID-19 Superannuation

Below is an outline of the measures behind this package.

Accessing your super
  1. The ATO will be solely responsible for assessing applications for the early release of superannuation by individuals impacted by the Coronavirus.
  2. The Government has legislated to allow eligible individuals to release tax-free up to $10,000 over 2 financial years from their superannuation on compassionate grounds. Eligible individuals can apply to access up to $10,000 in this financial year to 30 June 2020, and a further $10,000 from July until September 2020.
  3. Applications can be made from mid-April 2020 directly to the ATO through the myGov website. A person will need to certify that they meet the eligibility criteria. The ATO will verify the applicant, assess the application, record the bank account details, and make a decision. The ATO will then direct the nominated super fund to release the requested amount to the bank account that is specified by the applicant. You do not need to contact your super fund at any stage.
  4. Some Criteria for accessing your superannuation is summarized below (Meet any 1):
    • Unemployed
    • Eligible to receive Jobseeker, Youth Allowance or Parenting payment on or after 1 January 2020.
    • Made redundant
    • Working hours were slashed by 20%
    • Sole trader whose business was suspended or turnover fell by 20% or more.
  5. Withdrawals are tax-free.

COVID-19 Business Help

Below is an outline of the measures behind this package.

PAYG cash credits to SME employers and charities
  1. It will now provide a tax-free credit up to $100,000 for eligible small and medium sized entities (SMEs), and not-for-profits (including charities) that employ people, with a minimum credit of $20,000. These tax-free credits seek to help businesses’ and NFPs’ cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.
  2. SMEs with aggregated annual turnover under $50m and that employ workers are eligible. NFPs entities, including charities, with aggregated annual turnover under $50m and that employ workers will now also be eligible. This will support employment at a time where NFPs are facing increasing demand for services.

COVID-19 Business Help – Job Keeper Scheme

Below is an outline of the measures behind this package.

Job Keeper Payment
  1. To be eligible for the Job Keeper subsidy:
    • Business with turnover of less than $1 Billion where it has fallen by more than 30%
    • Business with turnover of $1 Billion or more where it has fallen by more than 50%
    • Business is not subject to Major Bank Levy
  2. Guidance from Treasury:
    • To establish that a business has faced either a 30 (or 50) per cent fall in their turnover, most businesses would be expected to establish that their turnover has fallen in the relevant month or three months (depending on the natural activity statement reporting period of that business) relative to their turnover a year earlier.
    • Where a business was not in operation a year earlier, or where their turnover a year earlier was not representative of their usual or average turnover, (e.g. because there was a large interim acquisition, they were newly established or their turnover is typically highly variable) the Tax Commissioner will have discretion to consider additional information that the business can provide to establish that they have been significantly affected by the impacts of the Coronavirus.
    • The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in specific circumstances (e.g. eligibility may be established as soon as a business has ceased or significantly curtailed its operations). There will be some tolerance where employers, in good faith, estimate a greater than 30 (or 50) per cent fall in turnover but actually experience a slightly smaller fall.

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