The Australian Government is supporting Australian businesses to manage cash flow challenges and retain employees during the Coronavirus health crisis. Assistance includes:
Boosting cash flow for employers
Helping small and medium businesses with aggregated annual turnover under $50 million to cover the costs of employee wages and salaries equal to 50 per cent of PAYG withheld for businesses that withhold tax, with a minimum of $2,000 and a maximum of $25,000 over six months. Businesses that pay salary and wages but are not required to withhold tax will also receive the minimum payment of $2,000. This will be a tax free payment, benefiting around 690,000 businesses employing 7.8 million people.
Supporting apprentices and trainees
Helping businesses retain apprentices and trainees by offering a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for nine months. The subsidy of up to a maximum of $21,000, will be available to businesses employing fewer than 20 full-time employees who retain an apprentice or trainee, or, where a small business is not able to retain an apprentice, the subsidy will be available to a new employer. This will support up to 70,000 small businesses employing around 117,000 apprentices.
For more information on the ways in which the Government can support your businesses visit Business.gov.au.
All taxpayers affected by the Coronavirus outbreak can contact the ATO for assistance. Taxpayers can contact the ATO on 1800 806 218 or visit the ATO website at ato.gov.au for further information.
If you need help or advice please contact your accountant or feel free to contact us.