At Kelly+Partners our aim is to do everything we can to provide all the resources, tools and support Business Owners need to navigate the COVID-19 crisis.

Our COVID-19 Action Checklists outline immediate action items to fully prepare you and your business for the impacts of COVID-19. The biggest mistake you could make right now is inaction. Be proactive, get started today on the lists and execute as much as possible this week.

All Government Stimulus Measures - Updated Live

The Australian Government and banking institutions have united to assist small businesses weather economic uncertainty.

This page is a live document of the concessions and help available to businesses that we will be updating as future announcements are made.

1) Federal Government (available to all SMEs)

Relief for commercial tenants

The Government has announced a mandatory code of conduct for commercial tenants to support small and medium sized businesses affected by the coronavirus.

The Code of Conduct outlines a set of good faith leasing principles for commercial tenancies including retail, office and industrial between owners, operators, other landlords and tenants.

This code applies to tenants that are:

  • a small-medium sized business with annual turnover of up to $50 million
  • eligible for the JobKeeper Payment

The key points for business owners:

  • Rent reductions will be based on the tenant’s decline in turnover to ensure that the burden is shared between landlords and tenants
  • Rent waivers must account for at least 50% of the rent reduction
  • Deferrals must be spread over the remaining time on a lease, or a minimum 24-month period

Under the code, landlords will not be able to:

  • increase rent
  • terminate leases due to non-payment of rent during the pandemic period
  • enforce penalties on tenants who stop trading or reduce opening hours
  • charge interest on unpaid rent and legislative and administrative hurdles to lease extensions will be removed.

The Code and its principles will be implemented and regulated by your relevant state or territory.

The policy will include a mutual obligation requirement on the small and medium sized businesses and not-for-profit tenants to continue to engage their employees through the JobKeeper Payment where eligible, and if applicable, provide rent relief to their subtenants.

Australian and foreign banks, along with other financial institutions operating in Australia, are expected to support landlords and tenants with appropriate flexibility as they work to implement the mandatory Code.

The Government is also waiving rents for all its small and medium enterprises and not-for-profit tenants within its owned and leased property across Australia.

Read the original media statement here and the full Code of Conduct here.

JobKeeper Payments to business

Prime Minister Scott Morrison has announced a third and the largest coronavirus support package – a $130 billion economic stimulus package. In this package, businesses will receive a fortnightly wage subsidy up to $1,500 per employee. The so-called JobKeeper payment is designed to keep people in work and the Government expects up to 6 million people will access a $1,500 fortnightly wage subsidy.

How will it work?

Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.

Employers will be under a legal requirement to pass on the payments they receive to employees that are currently employed by the business or who were employed by the business as at 1 March 2020.

Who is eligible?

Employers that have a turnover of less than $1 billion and have experienced a 30% decline in their turnover compared to last year would be eligible to receive the JobKeeper Payment. (For businesses with a turnover greater than $1 billion, the reduction in turnover threshold compared to last year is 50%.)

Businesses with employees that have experienced the 30% (or 50%) reduction in turnover can receive a subsidy payment for each employee that meets the following key criteria:

  • the employee was employed by the business as at 1 March 2020);
  • the employee is currently employed, was stood down or re-hired by the employer;
  • the employee is a full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
  • the employee receives at least $1,500 per fortnight before tax (if employees do not currently receive this wage, employers are entitled to supplement the employee’s wages to meet this eligibility requirement); and
  • meet other eligibility requirements, such as age, citizenship and the employee is not receiving another JobKeeper payment.

How will employers receive payments?

To receive the JobKeeper payment, eligible employers must:

  • register an intention to apply on the ATO website;
  • Ensure that each eligible employee receives at least $1,500 per fortnight before tax (employees that do not receive this minimum payment must be paid a top-up);
  • Notify all eligible employees that they are receiving the JobKeeper Payment; and
  • provide information to the ATO on a monthly basis
  • Provide the ATO with information on the employees that are eligible to receive the payment. (Single Touch Payroll data will be used to pre-populate the employee details for most businesses.)

What about not-for-profits and businesses without employees?

Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are also eligible to apply for JobKeeper Payments.

Not-for-profit entities and businesses without employees should register their interest in applying for the JobKeeper Payment with the ATO.

Other Federal Government stimulus packages

On 12 March, the Government has announced a $17.6 billion economic plan to deal with the significant challenges posed by the spread of the coronavirus.

This initial package has been expanded with a further announcement on 22 March that brings the consolidated assistance provided by the Federal Government to $189 Billion.

The stimulus packages are focused on keeping Australians in jobs and helping small and medium sized businesses to stay in business and has four parts:

  • Supporting business investment
  • Providing cash flow assistance to help small and medium sized business to stay in business and keep their employees in jobs
  • Targeted support for the most severely affected sectors, regions and communities;
  • Household stimulus payments that will benefit the wider economy

The Government plans to introduce the package of Bills for the relief measures into Parliament on 23 March. What has been announced is set out below.

Real, Cash Money for Small Business Owners

i) 100% Cashback on PAYG Withholding, up to $100,000

Business entities with annual aggregated turnover of less than $50 million that withhold tax to the ATO on their employees’ salary and wages will receive a payment equal to 100% 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.

The ATO will deliver the payment as a credit to the business upon lodgment of their activity statements. Where this places the business in a refund position, the ATO will deliver the refund within 14 days. The payment will be a tax-free refund or credit.

The payment will be tax free and delivered by the ATO as a credit in your Business Activity Statement (BAS) from 28 April 2020. Quarterly BAS lodgers will get the credit in the June-20 quarter BAS. Monthly IAS lodgers will get a credit of 100% from the March-20 IAS up to the June-20 IAS. Any existing debt with the ATO this will be offset against your existing liability.

The Government has also announced that there will be an additional payment in the July – October 2020 period equal to the total of all the payments made in the period prior to June – limited to the maximum threshold of $100,000.

The benefit is for limited time only and applies to the PAYG Withholding on wages between 1 January 2020 and 30 June 2020.

If for example you have spent more than $100,000 in PAYGW for the 6 month period between 1 January and 30 June 2020, you should receive $100,000 from the Government. If you have spent $30,000 in PAYGW for the same period, you will get $30,000. These credit will be applied by the ATO as from 28 April.

Any employer that has received the maximum $100k payment will not be entitled to a further payment in the July – October quarter. The employer that, for example, received a $30,000 refund will receive a further $30,000 refund in the July – October quarter.

💡 How to apply?

  • This credit will automatically be processed upon lodgement for your BAS and IAS by Kelly+Partners.

ii) 50% subsidy on apprentice wages, up to $21,000

Eligible employers can apply for a wage subsidy of 50% of apprentice or trainee wages for up to 9 months from 1 January 2020 to 30 September 2020 (up to a maximum of $21,000 per eligible apprentice or trainee).

If a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.

💡 How to apply?

Employers can register for the subsidy from early April 2020 with final claims for payment due by 31 December 2020.

Instant asset write-off increase

For new or second-hand assets first used or installed ready for use from 12 March until 30 June 2020, the instant asset write-off threshold will be increased from $30,000 to $150,000 for businesses with aggregated annual turnover of less than $500 million (up from the current $50 million threshold). The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets.

The threshold will revert to $1,000 for small businesses (for businesses with a turnover less than $10 million) from 1 July 2020.

The draft legislation includes the following requirements to claim the instant asset write-off;

  1. The asset must be used, or installed ready for use, between 12 March 2020 and 30 June 2020.
  2. The entity that purchased the asset carries on a business and either
    1. Had turnover of less than $500m in the 2019 financial year; or
    2. Is expecting to have less than $500m of turnover in the 2020 financial year.

Business owners should work with their Kelly+Partners Client Director to see if they are expecting a refund from the 2020 income tax return, and if so should lodge tax returns as soon as they can to get the cash refund.

50% investment incentive

The Government is introducing a time limited 15 month investment incentive (to 30 June 2021). Businesses with aggregated annual turnover of less than $500 million per annum will be entitled to accelerated depreciation deductions. Eligible businesses will be able to deduct 50% of the cost of an eligible asset upon installation. Assets must be acquired after 12 March 2020 and first used or installed by 30 June 2021.

There is no asset value threshold for this 50% investment incentive and the existing depreciation rules will continue to apply to the remaining balance of the asset’s cost over its effective life. Therefore, an eligible asset will generate the immediate deduction of 50%, plus in the same year will generate a Division 40 depreciation deduction calculated in accordance with the normal depreciation rules.

The draft legislation includes the following requirements to claim the 50% investment incentive:

  1. The asset must be a depreciating asset purchased between 12 March 2020 and 30 June 2021.
  2. The entity that purchased the asset carries on a business and either
    1. Had turnover of less than $500m in the 2019 financial year; or
    2. Is expecting to have less than $500m of turnover in the 2020 financial year.

Exclusions are:

  • Does not apply if using the instant asset write-off for the asset.
  • Does not apply if you entered into a contract to purchase, started constructing the asset or started to hold it before 12 March 2020.
  • Does not apply to second-hand assets, capital words or assets outside Australia.

💡 How to apply?

  • This credit will be processed on the preparation and lodgement of your 2020 income tax return.

Tax Payment Deferrals

The ATO has announced a series of payment deferral concessions for businesses directly impacted by COVD-19. These concessions are:

  • Deferring by up to 4 months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise duty.
  • Allowing businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get faster access to GST refunds they may be entitled to.
  • Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
  • Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities; and
  • Allowing affected businesses to enter into low-interest payment plans for their existing and ongoing tax liabilities

💡 How to apply?

  • The ATO assistance is not automatic, contact your Kelly Partners client director, who will approach the ATO to request assistance, and if eligible, the ATO will ‘tailor’ the assistance package for you.
  • Non- Kelly+Partners clients can call the ATO’s Emergency Support Infoline on 1800 806 218 to discuss relief options based on their needs and circumstances.

Temporary relief for financially distressed businesses

The Government has also announced a series of measures that are aimed at lessening the threat of legal action against businesses that could cause them to become insolvent and force them into liquidation.

These measures include:

  • An increase to the threshold at which creditors can issue a statutory demand on a company and initiate bankrupt proceedings against an individual. The new threshold limit has not been released yet.
  • The time companies and individuals have to respond to statutory demands they receive will be increased. The new limits have not been released yet.
  • Directors are temporarily relieved from any personal liability for trading while insolvent.
  • New measures that introduce some flexibility to the Corporations Act 2001 targeted at providing relief from the provisions of the Act to deal with the unforeseen events that arise as a result of the Coronavirus health crisis have been announced. No further detail is available as to what these amendments are.

The Government also announced that the ATO will tailor solutions for owners and directors that are currently struggling due to the Coronavirus. The assistance offered by the ATO to business will including a temporary reduction of payments or deferrals of tax liabilities, or withholding enforcement of liabilities by not proceeding with actions such as Director Penalty Notices and the wind-up of a business.

💡 How to apply?

  • The ATO assistance is not automatic, contact your Kelly Partners client director, who will approach the ATO to request assistance, and if eligible, the ATO will ‘tailor’ the assistance package for you.
  • Non- Kelly+Partners clients can call the ATO’s Emergency Support Infoline on 1800 806 218 to discuss relief options based on their needs and circumstances.

Supporting the flow of credit

The Government, the Reserve Bank of Australia and the Australian Prudential Regulatory Authority have taken coordinated action to ensure the flow of credit in the Australian economy. These measures include:

Support for immediate cash flow needs for SMEs

Under the Coronavirus SME Guarantee Scheme, the Government will provide a guarantee of 50% to SME lenders to support new short-term unsecured loans to SMEs. The Scheme will guarantee up to $40 billion of new lending.

Quick and efficient access to credit for small business

The Government is cutting red tape by providing a temporary exemption from responsible lending obligations for lenders providing credit to existing small business customers.

Reserve Bank of Australia — Supporting the flow and reducing the cost of credit

The Reserve Bank of Australia (RBA) announced a package on 19 March 2020 that will put downward pressure on borrowing costs for households and businesses.

The RBA announced a term funding facility for the banking system. Banks will have access to at least $90 billion in funding at a fixed interest rate of 0.25 per cent. This will reinforce the benefits of a lower cash rate by reducing funding costs for banks, which in turn will help reduce interest rates for borrowers. To encourage lending to businesses, the facility offers additional low-cost funding to banks if they expand their business lending, with particular incentives applying to new loans to SMEs.

In addition, the RBA announced a further easing in monetary policy by reducing the cash rate to 0.25 per cent. It is also extending and complementing the interest rate cut by taking active steps to target a 0.25 per cent yield on 3-year Australian Government Securities.

Support for Non-ADI and smaller ADI lenders in the securitisation market

The Government is providing the Australian Office of Financial Management (AOFM) with $15 billion to invest in structured finance markets used by smaller lenders, including non-Authorised Deposit-Taking Institutions (non-ADI) and smaller Authorised Deposit-Taking Institutions (ADI). This support will be provided by making direct investments in primary market securitisations by these lenders and in warehouse facilities.

Australian Prudential Regulatory Authority — Ensuring banks are well placed to lend

The Australian Prudential Regulatory Authority has announced temporary changes to its expectations regarding bank capital ratios. The changes will support banks’ lending to customers, particularly if they wish to take advantage of the new facility being offered by the RBA.

2) State Government

i) NSW

Grants for NSW small businesses

Small Businesses from 03 April 2020 receive grants of up to $10,000 under a new assistance scheme.

To be eligible, businesses will need to:

  • Have between 1-19 employees and a turnover of more than $75,000;
  • A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;
  • Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
  • Be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020;
  • Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
  • Provide appropriate documentation upon application.

Applications for a small business grant of up to $10,000 will be available through Service NSW within a fortnight and remain open until 1 June 2020.

Payroll Tax Concessions

For businesses whose total grouped Australian wages for the 2019/20 financial year is less than $10M:

  • will have their annual tax liability reduced by 25% when they lodge their annual reconciliation, which is due on 28 July.
  • For those taxpayers who lodge and pay monthly, no payment is required for the months of March, April or May 2020; ie. the payroll tax is completely waived
  • When lodging your annual reconciliation, you will still need to provide wage details paid in these months and will receive the benefit of a 25% reduction in the amount of tax you would have had to pay for 2019-20.

💡 How to apply?

  • This will be automatically applied for the payroll tax returns covering above mentioned periods.

Other Concessions

The NSW government has also announced the following concessions:

  • The raising of the NSW payroll tax threshold to $1 million as from July 2020; and
  • a waiver of a range of fees and charges for small businesses including bars, cafes, restaurants and tradies.

NSW Government – Stage 2 of the COVID-19 Stimulus Package

On 27 March, the NSW Government announced stage 2 of the COVID-19 stimulus package worth $750m to keep businesses afloat and retain employees.

The full details are not yet available, however the NSW Treasurer Dominic Perrottet has confirmed the following measures as part of stage 2 in a media release:

  • Deferral of payroll tax for 6 months for businesses with payrolls over $10m.
  • Deferral of gaming tax for 6 months for clubs, pubs, hotels and lotteries, on the condition that saved funds are used to retain staff.
  • Deferral of rental payments for 6 months for tenants of NSW Government owned property with fewer than 20 employees.
  • Deferral of the parking space levy for 6 months.

Additionally, the creation of a $1b Working for NSW fund to “sustain business, create new jobs and retain employees”. This announcement included that the fund may be available for retaining some retrenched staff, specifically for hotels, pubs and clubs. Further details are expected early next week when legislation or regulations are prepared.

Information on stage 1 and stage 2 of the NSW Government’s COVID-19 stimulus package can be found on the NSW Treasury website.

ii) VIC

The Victorian government has announced a $1.7 billion “economic survival and jobs” package that includes the following assistance to SME businesses:

  • SME businesses with payrolls of less than $3 million will be refunded their payroll tax. Payments to eligible businesses will commence from 23 March.
  • SME businesses with payrolls of less than $3 million will also be able to defer any payroll tax for the first three months of the 2020/21 financial year until 1 January 2021.
  • Commercial tenants in government buildings can apply for rent relief.
  • A Business Support Fund will be established to support the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.

City of Melbourne – COVID-19 Business Grants

The City of Melbourne Council have announced $5m of grants to small and medium business and not-for-profits (NFP) to help respond quickly to COVID-19 changing marketing conditions.

Up to $5,000 for investing in online and e-commerce activities including website design, e-commerce, developing online content, digital marketing and training in the above.

Up to $2,000 for training and professional development such as online learning, training courses and in-house courses.

Dollar-for-dollar grants up to $10,000 for capital works projects to adapt to changing market conditions such as equipment, shop fittings, re-modelling, IT and software and vehicles.

To be eligible for the grants, the following must be satisfied:

  • Be located in the City of Melbourne;
  • Have an ABN;
  • Have less than 50 full time equivalent employees or less than 75 for hospitality or tourism businesses; and
  • Be able to demonstrate how the grant will help support the business or NFPs in response to COVID-19.

The last item will be the most difficult to satisfy for a business of NFP and a formal application needs to be lodged on the City of Melbourne website.

💡 How to apply?

Vic businesses can now access information on the support services being provided on dealing with COVID-19, including how to access financial support available through the national stimulus package, by calling the Business Victoria hotline on 13 22 15. A coronavirus business support page has also been created. Find it here.

iii) QLD

Queensland Government COVID-19 Measures

The Queensland Government have announced their proposed measures to reduce the economic strain caused by coronavirus, which is the biggest state Government stimulus at $4 billion.

Payroll Tax Relief

Eligibility for the payroll tax relief measures are different for employers who pay more or less than $6.5m of Australian taxable wages in a calendar year.

Employers who pay $6.5m or less of Australian taxable wages in a calendar year may be eligible for:

  1. Refund of payroll tax for 2 months.
  2. A payroll tax ‘holiday’ for 3 months.
  3. Deferral of payroll tax for the 2020 calendar year.

Employers who pay more than $6.5m of Australian taxable wages in a calendar year, and have been affected by coronavirus by lower turnover, profit, customers, bookings, sales or supply contracts, may be eligible for:

  1. Refund of payroll tax for 2 months
  2. Deferral of payroll tax for the 2020 calendar year until 13 January 2021

Businesses impacted by coronavirus will not need to pay payroll tax until 14 January 2021. However, businesses are still required to lodge returns of payroll tax on time, payment should be deferred. Many businesses will be contacted directly by the Queensland Office of State Revenue to apply for the relief, however application for the relief and information can be found here.

Other Measures

The Queensland Government has also launched a range of other measures such as:

  • Waiving liquor license fees.
  • Rent relief for businesses who lease premises owned by the state government.
  • Sole traders, small and medium business a $500 rebate on their power bill.

💡 How to apply?

Payroll Tax Concessions

  • Deferred payroll tax returns until 31 July 2020

💡 How to apply?

iv) WA

Payroll Tax Concessions

  • The payroll tax threshold will be increased to $1 million on 1 July 2020. This brings the increase forward from the planned date of 1 January 2021 and will result in approximately an additional 300 businesses no longer being liable for payroll tax. The threshold increase will be reflected in Revenue Online when it comes into effect.
  • Employers, or groups of employers, who pay $7.5 million or less in Australian taxable wages and have been directly or indirectly impacted by COVID-19 can apply to defer their monthly payroll tax payments until 21 July 2020.
  • A one-off grant of $17,500 will be available for employers, or groups of employers, whose annual Australian taxable wages are more than $1 million and up to $4 million. For a group of employers, a single grant will be payable to the designated group employer. You do not need to apply for the grant. Grants will automatically be paid by cheque from July but there will be delays for taxpayers whose tax status changed in 2018-19 or who became liable for payroll tax during the 2018-19 or 2019-20 assessment year. Eligible taxpayers should log in to Revenue Online to ensure their postal address is correct.

v) TAS

Interest Free State Government Loans

  • $20 million in interest-free loans available to small businesses in the hospitality, tourism, seafood production and export sectors.
  • Businesses with turnover of less than $5 million will be eligible, and the loans are intended to be used for purchasing of equipment, or for restructuring business operations.
  • Loans will be offered interest-free for three years. Details on how to apply have not yet been released.

Payroll Tax Concessions

  • Payroll tax waiver will be available to businesses in the hospitality, tourism and seafood industries, and will apply for the last four months of the 2019-20 financial year.
  • Other businesses with payrolls of up to $5 million will also be able to apply for a waiver, but eligibility will be based on how significantly the virus has affected business.
  • Further details on this criteria have not yet been released.

vi) SA

On 11 March 2020, the South Australia Government announced a $350 million stimulus package that will include current infrastructure projects being brought forward, as well as new projects around road maintenance, housing, tourism and health. The details of the package are not yet available.

vii) NT

The Northern Territory’s (NT) Government’s coronavirus stimulus package focusses on encouraging spending on home renovations and business upgrades in an effort to prevent widespread job losses across the NT. Under the new ‘Home Improvement Scheme:

  • Homeowners will get a $6,000 grant for renovations if they spend $2,000;
  • Businesses will receive $20,000 if they spend $10,000 of their own;
  • Owners of residential and investment properties will receive a $6,000 grant for renovations if they contribute $2,000 of their own money; and
  • Eligible businesses will get an initial $10,000 grant for upgrades, and another $10,000 if they contribute $10,000 of their own money.

Business owners will be able to spend their grant on upgrades or equipment if purchased from an eligible Territory business. The schemes are not yet active, but are expected to be up and running within the next few weeks.

3) Banks and Lending Institutions

Specific COVID-19 concessions have been announced by the following banks:

i) CBA

  • Deferring repayments on a variety of business loan and overdraft products, for 6-months.
  • Reducing commercial interest rates by 0.25
  • Waiving merchant terminal fees for impacted customers with CBA payment terminals, for 90 days.
  • Waiving early redraw fees on business term deposit accounts (including Farm Management Deposit accounts).
  • Waiving establishment fees and excess interest on Temporary Excess products.
  • Deferring repayments on vehicle and equipment finance loans, and providing tailored restructuring options that meet individual customer needs.

💡 How to apply?

ii) ANZ

  • Suspending interest repayments
  • Deferral of business loan repayments for up to 6 months, assessed on a case-by-case basis
  • Providing early access to term deposits without incurring break fees
  • Providing access to additional credit subject to approval

💡 How to apply?

  • Contact ANZ or your relationship manager.

iii) NAB

  • Deferral of business loan repayments for up to 6 months, assessed on a case-by-case basis
  • Extension of a business loan term by a period of up to three months, where individual circumstances warrant
  • Support to restructure existing business loans, including equipment finance
  • Business credit card deferred repayments.

💡 How to apply?

  • Contact NAB or your relationship manager
  • 1300 769 650 (Monday to Friday 8am-6pm AEST/AEDT)

iv) Westpac

  • Continuing it's hardship assistance program
  • Deferral of business loan repayments for up to 6 months, assessed on a case-by-case basis

💡 How to apply?

  • Contact Westpac or your relationship manager

v) Bendigo

  • Home Loan and Business Loan customers can apply for relief on loans for up to three months
  • Waiver of fees for the restructuring or consolidation of loans
  • Credit card customers can apply for an emergency credit card limit increase
  • Discounted interest rates on new personal loans taken out by existing Bendigo Bank customers
  • Waiver of interest rate reduction for early withdrawals on term deposits prior to maturity
  • Deferral of payments and extensions for Equipment Finance on a case by case basis

💡 How to apply?

  • Contact Westpac or your relationship manager

4) Superannuation

Early release of superannuation

The government has announced that individuals are allowed to withdraw up to $20,000 from their superannuation over the 2020 and 2021 financial year. A maximum of $10,000 in each 2020 and 2021 financial years is allowed under the rules.

The payment from a superannuation fund is tax free to the individual upon application to the superannuation fund on compassionate grounds. One of the following must be satisfied for withdraw amounts under this ground

  1. The person is unemployed or was made redundant after 1 January 2020.
  2. Was previously employed and their hours were reduced by 20% or more (including to zero) after 1 January 2020.
  3. Was a sole trader and on or after 1 January 2020, their business was suspended or suffered a reduction in turnover of 20% or more.
  4. The individual is eligible to receive certain Centrelink payments including youth allowance, jobseeker, parenting and special benefits;

Applications for these withdrawals must be made within 6 months of the day the legislation is passed, around 23 March 2020.

Reduce the minimum payment amounts for accounts-based pensions

The government has halved the minimum yearly repayments for account-based pensions for the 2020 and 2021 financial years. This can benefit retirees who chose to take their superannuation as an income stream, which the minimum yearly payment which is based on the age of the beneficiary.

All percentages have been halved for 2020 and 2021 financial years.

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