07 Oct 2021 COVID-19 support
The Tax Institute’s support for members: New 2021 COVID-19 webinar materials
On Tuesday 21 September 2021, The Tax Institute delivered our third webinar in the highly popular 2021 COVID-19 support measures series. The webinar materials contain updated content that you can find here.
COVID-19 Disaster Payment
The Federal Treasurer, the Hon. Josh Frydenberg MP, has announced that the temporary COVID-19 Disaster Payment will begin to transition once a State or Territory reaches 70% full vaccination of its population (16 years and older) in line with the movement into Phase B of the National Plan agreed to at National Cabinet.
Once a State or Territory reaches a 70% fully vaccinated threshold, the automatic renewal of the temporary payment will end, and individuals will have to reapply each week that a Commonwealth Hotspot remains in place to confirm their eligibility.
Read the Treasurer’s announcement here.
Supporting NSW businesses through to reopening
The Commonwealth and NSW governments will continue supporting small- and medium-sized businesses until NSW is expected to reach the 80% fully vaccinated threshold.
The Commonwealth will continue to co-fund the JobSaver program, with funding to taper when NSW meets its vaccination targets.
When the state’s vaccination rate reaches 70% of the eligible population, JobSaver payments will taper from the current payment rate equivalent to 40% of weekly payroll to 30% of weekly payroll. This is anticipated to occur by 10 October.
From 10 October to 23 October, the minimum and maximum weekly payments for employing businesses will be reduced by 25% to $1,125 and $75,000 weekly and grants to be 30% of weekly payroll. The grant for sole traders will reduce to $750.
Once NSW reaches a fully vaccinated rate of 80%, the Commonwealth’s contribution to the JobSaver program will cease, in line with the National Plan for Reopening. This is anticipated to occur by 31 October.
Read more here.
The Tax Institute’s Senior Advocate, Robyn Jacobson, CTA, has written a member-only blog ‘JobSaver extension: Pathway to recovery’ that summarises the payment rates and key dates you need to know to assist clients to receive support for the remainder of the JobSaver and Micro-business Grant programs. The final dates are subject to change. Read the blog here.
Supporting Victorian businesses through to reopening
A jointly-funded package of grants from the Commonwealth and Victorian governments will support small and medium-sized businesses through the next six weeks, at which point Victoria is expected to reach the 80% fully vaccinated threshold.
The funding package of up to $2.27 billion will support businesses most affected by restrictions as Victoria reaches the 70%, then 80% fully vaccinated thresholds on the State’s Roadmap to Deliver the National Plan.
Read more here.
The Tax Institute’s Senior Advocate, Robyn Jacobson, CTA, has written a member-only blog ‘Extension of Victorian COVID-19 business support’ that summarises the key measures of the grants available to small and medium sized businesses in Victoria. Read the blog here.
Further support for ACT businesses impacted by COVID-19
A jointly-funded package of grants from the Commonwealth and ACT governments will support small- and medium-sized businesses through until mid-October at which point the ACT is expected to reach the 80% fully vaccinated threshold.
Further support includes:
- Additional ACT COVID-19 Business Support Grants
- Expansion of COVID-19 Tourism, Accommodation Provider, Arts, Events, Hospitality and Fitness Grants
Read more here.
COVID-19 support: ATO’s tax quick guide
The ATO has released a quick guide to the tax treatment of government payments and help during COVID-19 for individuals and businesses.
For a summary of this content in poster format, go here.
Tax implications of COVID-19 government grants and payments
Find out about the tax implications of any government grants or payments your clients receive as a result of the COVID-19 public health orders. You can check if the payment is taxable or non-taxable, using this Quick guide to the tax treatment of COVID-19 payments or read the recently updated COVID-19 government grants and payments ATO website content.
Eligible COVID-19 business grants and support programs
Income tax does not need to be paid on some COVID-19 government payments to support businesses. These payments will be non-assessable non-exempt (NANE) income for income tax purposes if they are received under an eligible grant or support program and the eligibility criteria are met.
A list of eligible grants and support programs that may not be taxed (if you meet the eligibility criteria) can be found here.
ATO tailored support during COVID-19
The ATO has a range of options to support you during this difficult time. See the links below for more information:
- Support for businesses and employers
- Support for individuals and employees
- Support for not-for-profits
- Support for tax professionals
- Additional support during COVID-19
- Government grants and payments during COVID-19.
ATO additional support during COVID-19
The ATO is offering additional support during COVID-19. See the links below for more information:
- Who to contact
- Lodgment or payment
- Varying your PAYG instalments
- Changing your GST reporting cycle
- Statement of tax record
- Apply for administrative relief for Division 7A minimum yearly repayments
- Treatment of income of New Zealand sporting teams and support staff.