Hi, it’s Ashley Thomson with the COVID-19 business continuity update for Thursday 26th March.
In today’s blog:
1. Payroll tax refund – how to get your refund
2. Government support for affected employees
1. Payroll Tax Refunds begin 27th March
A quick recap on this measure:
Small and medium-sized businesses (in Victoria) with total payroll (that is, wages and super) of less than $3 million will be refunded payroll tax for the 2019-20 financial year. For clarity, you won’t have paid payroll tax if your total payroll is below $650,000.
If your business is eligible to receive this you will automatically get an email from the SRO.
Refunds will start being processed tomorrow, 27th March.
If you think you are eligible but you haven’t received the email, contact the SRO: https://www.sro.vic.gov.au/contactus
For eligible businesses, no further payroll tax payments need to be made this financial year but you must continue to lodge your returns.
Payroll tax for the first three months of the 2020/21 financial year will be deferred until 1 January 2021 for eligible businesses.
A business with 8 team members who each earn about $90,000 per annum will receive a rebate of around $5,000 and waiver of around $1,700. Total payroll tax benefit will be around $6,700 in FY 19/20.
2. Government support for downsized employees
If you have any employees who unfortunately have to be stood down or had their hours and/or pay reduced, they may be eligible for the Coronavirus Supplement of $550. By assisting them to understand the safety net, this can help to lessen the pain for them and you.
As businesses coaches, we urge you to encourage them to register their intent to claim with Centrelink before April 13. If they are eligible and have registered their intent to claim by April 13, they will also receive $750 in the second round Economic Support Payment. Keep this deadline in mind when considering the timing of any downsizing and of course, if you have any questions, you can discuss this with one of our Tenfold coaches or team.
This article from ABC news explains the entitlements for stood down employees:
Due to coronavirus, the Government has expanded the Jobseeker and Youth Allowance for jobseekers criteria meaning more people are now eligible.
From April 27, you’ll be eligible if you’re:
• A permanent employee who has been stood down or sacked
• A sole trader, self-employed, casual worker or contract worker who now earns less than $1,075 a fortnight as a result of the economic downturn
• You’re caring for someone who has COVID-19
The Jobseeker payments are tapered, meaning if you earn $0 for the fortnight you’ll get the full welfare payment, but if you still have some income (but remain below the income threshold) you will receive a portion of the payment.
But even if you’re only eligible for a tiny Jobseeker or Youth Allowance payment, you will receive the full $550 a fortnight Coronavirus Supplement.
Centrelink will now waive asset testing, except for those on the Farm Household Allowance and Special Benefit payments. Income testing will still apply.
And you cannot access Centrelink payments at the same time as receiving annual leave, sick leave or income protection insurance.
(If you wish, you can read the full article here: https://www.abc.net.au/news/2020-03-25/coronavirus-can-i-get-centrelink-jobseeker-if-partner-has-a-job/12085164)
Here is the link to the Services Australia page that you can share with and downsized employees:
There are still more topics I want to make sure you’re across so I’ll cover off on the PAYG boost and some cost cutting measures in coming updates.
PS: If there are other topics you want to know more about, give Tenfold Business Coaching a call – (03) 9813 8777. If you’re thinking about it, then other business owners probably are too.