Economic Response Update: COVID-19
As the COVID-19 situation continues to evolve, we have been keeping a close eye on the information being distributed. We have summarised and compiled important information that has been issued by the Australian Government and other government agencies.
Rubiix have also stopped all physical meetings in our office. This is precautionary only to ensure the safety of our staff, clients and the community. We encourage the use of programs such as Skype and Zoom. We have been using these programs to communicate with our interstate and overseas clients for many years and believe there will be no change in the level of service we can provide.
Businesses
This will support businesses to manage cash flow challenges and help businesses retain their employees. These measures are designed to support employing small and medium enterprises and to improve business confidence. In addition, the wage subsidy for apprentices and trainees will help to ensure the continued development of the skilled workforce that employers need.
The latest update in regards to cash flow assistance is the introduction of The Boosting Cash Flow for Employers measure which will provide up to $100k back to businesses, with a minimum payment of $20k for eligible businesses.
To discuss your eligibility please contact our office.
Temporary Relief for Financially Distressed Businesses
The measures being brought in aim to act as a safety net for businesses. One element of the safety net is to lessen the threat of actions that could result in the insolvency or forced wind up of a business.
Please see the fact sheet below for more information and elements of the package.
Payroll Tax and Land Tax (Victoria)
The State Revenue of Victoria announced the following tax measures to support businesses during this time.
- Payroll tax waived in 2019-20 for eligible businesses with taxable wages up to $3 million.
- 2020 renewable liquor licence fees waived
- 2020 land tax deferred for people that have at least one non-residential property and total taxable landholdings below $1 million.
For further information, please head to their website.
Superannuation
Super saving access will be broadened to allow access up to $10k before 30 June 2020 and an additional $10k from 1 July for approximately three months.
In order to be eligible, you must meet one of the following criteria:
- You are unemployed
- You are eligible to receive Jobseeker Payment, Youth Allowance (jobseekers), Parenting Payment, Special Benefit or Farm Household Allowance
- On or after 1 January 2020, you were made redundant, your hours of work reduced by at least 20%, or if you’re a sole trader, your business was suspended or your turnover reduced by at least 20%.
To discuss further, please contact our office.
Pension Drawdowns
There will be a temporary reduction on pension drawdowns by 50% for both this financial year and the 2020/21 financial year.
Bank Deferrals
For further information on how banks are assisting with deferrals, please contact your financial institution directly.
Supporting Individuals and Households
The assistance from the Australian Government includes:
- Income support for individuals
- Payments to support households
- Temporary early release of superannuation
- Temporarily reducing superannuation minimum drawdown rates
- Reducing social security deeming rates
For more information, please follow the link below.
If you have any questions regarding the information above, please do not hesitate to phone our team on (03) 9603 0066 for assistance.
Updated 23 March 2020