South Australian Members
2020-21 State Budget Announcement – Small Business Grants
The Government is supporting business through the announcement of Round 2 of the Small Business Grants for businesses that remain impacted by COVID-19. The grant provides:
- $10,000 grants for eligible small businesses that employ staff and are receiving JobKeeper from 28 September 2020; and
- $3,000 grants for small businesses that do not employ staff (sole traders), are operating from commercial premises, and are receiving JobKeeper from 28 September 2020.
Applications are open until midnight 28 February 2021, click here to apply now.
2020-21 State Budget Announcement – Apprentice payroll tax exemption
The Government has announced a 12-month payroll tax exemption on wages paid to new eligible apprentices.
Wages paid to apprentices and trainees who commence a relevant contract of training between 10 November 2020 and 30 June 2021 (inclusive), will receive relief equivalent to a 12 month payroll tax exemption.
There is no application process. You will be able to specify the wages paid to eligible apprentices in RevenueSA Online. More information is available on the RevenueSA website.
2020-21 State Budget Announcement – Extension of payroll tax relief
The Government has extended payroll tax relief already in place for businesses to support them during the COVID-19 pandemic, including:
- an exemption of all Commonwealth JobKeeper payments from payroll tax
- a 15 month waiver of payroll tax due over the period April 2020 to June 2021 for businesses and business groups with annual Australian grouped wages below $4 million
- a six month waiver of payroll tax due over the period January 2021 to June 2021 for businesses that are eligible for the extended Commonwealth JobKeeper payment from 4 January 2021
- up to a nine month deferral of payroll tax due over the period April 2020 to December 2020 for businesses with annual wages above $4 million adversely affected by COVID-19. Extended repayment arrangements for deferred payroll tax are also available.
More information is available on the RevenueSA website.
2020-21 State Budget Announcement – Extension of land tax relief
The Government has extended land tax relief in response to COVID-19.
Eligible commercial landlords may be eligible for land tax relief and there are two stages to the land tax relief measure:
- Period 1: 30 March 2020 to 30 October 2020
- Period 2: 31 October 2020 to 30 April 2021
Each period is assessed separately. You will need to meet all of the criteria for the period to receive relief for that period. Eligibility criteria are outlined on the RevenueSA website.
The maximum land tax relief available is 50% of the 2019-20 land tax liability of the relevant property. You may apply for relief of up to 25% in each period.
Relief for Commercial Tenants
In order to receive land tax relief (outlined above), commercial landlords must demonstrate that they have provided, or will provide, rent relief (reduction) to the tenant(s) impacted by COVID-19 in the relevant period. A deferral or postponement of rent is not rent relief.
If you are an eligible tenant, contact your landlord to discuss whether or not they expect they will be eligible for land tax relief. If they are, or expect to be eligible for land tax relief, this may assist you in negotiating an overall rent reduction.
Relief for Commercial owner-occupiers
Commercial owner-occupiers may be eligible for land tax relief in Period 2 (31 October 2020 to 30 April 2021). Eligibility criteria are outlined on the RevenueSA website.
The maximum land tax relief available is 25% of the 2019-20 land tax liability of the relevant property.
NORTHERN TERRITORY MEMBERS
2020-21 Territory Budget Announcement – JobMaker Booster
The NT Budget announced a JobMaker Booster which extends the Federal Government’s JobMaker Hiring Credit program.
The NT Government will provide eligible Territory small businesses with $100 per week for eligible employees between 30-35 years of age and $200 a week for employees over 35 years of age. Combined with the Commonwealth, this guarantees a $200-a-week wage subsidy for eligible Territorians, no matter their age, who go from Centrelink to a job.
Applications open for business to register for the scheme on 15 December 2020. Information will be made available at businessrecovery.nt.gov.au
2020-21 Territory Budget Announcement – Small Business Grants
If you are a Northern Territory business with premises, you may be eligible to access the following support:
Small Business Roadhouse to Recovery Grant - to help assist roadhouses to improve their visitor experience with grants of up to $150,000 to support infrastructure improvements.
The NT Government will provide $3 for each $1 spent by the eligible business, up to a maximum of $150,000. for example, a $50,000 investment by a business can deliver a $200,000 upgrade.
Applications will be assessed on a competitive basis, with priority given to remote premises.
Applications are now open and close 14 January at 4pm.
Small Business Pivot Grant - helping small businesses affected by COVID-19 adapt to the new economic environment and reach new markets. The Small Business Pivot Grant is designed to help small businesses drive increased revenue through improved business performance and access to new markets.
Grants of up to $10,000 will be available for eligible businesses, with a matched 50:50 co-contribution requirement. The grant will be open to all Territory small businesses defined as an actively trading business with an annual turnover of less than $10 million.
Applications will open 1 December 2020 and close 2 February 2021.
Small Business CX Grant - a one-off grant for small businesses looking to enhance their customer. Customer experience enhancements should address front of house improvements for customers.
The grant will be offered through a competitive process, with grants of up to $20,000 available on a 50:50 co‑contribution basis. The grant will be open to all Territory small businesses defined as an actively trading business with an annual turnover of less than $10 million.
Applications will open 15 January 2021 and close 28 February 2021.
Terms and conditions of the Grants are expected to be published in late November 2020, and will be made available at businessrecovery.nt.gov.au
We will let you know when application forms are live.
2020-21 Territory Budget Announcement – extension of NT Business Hardship Package
The Business Hardship Package helps NT businesses that have experience significant hardship as as result of the COVID-19 pandemic.
Support is available to Territory businesses with a turnover of less than $50 million who can demonstrate a reduction of turnover of 30% or more due to COVID-19.
Once approved for the hardship register, businesses will receive a business hardship certificate that they can use to access relevant concessions for:
The Business Hardship Package is available until 1 July 2021, and you can apply online at the Smartygrants website.
JobMaker wage subsidy
On 6 October 2020 as part of the 2020–21 Budget, the government announced a new incentive for businesses to employ additional young job seekers called the JobMaker Hiring Credit. The JobMaker Hiring Credit will be administered by the ATO.
Eligible employers will have access to a JobMaker Hiring Credit for each new job they create over the 12 months from 7 October 2020, for which they hire an eligible employee, for a maximum claim period of 12 months from their employment start date.
Employers will register with the ATO and make claims quarterly, with claims commencing in February 2021.
The JobMaker Hiring Credit will be:
- $200 per week for each eligible employee aged 16 to 29
- $100 per week for each eligible employee aged 30 to 35
Eligible employees must have worked an average of at least 20 hours-per-week over the quarter for the employer to qualify for the payment. Employees that start and/or stop employment during a quarter must meet a similar test based on the length of time in employment.
For the employer to be eligible, new employees must be aged 16 to 35 years, and in receipt of income support payments (such as JobSeeker Payment, Youth Allowance (Other), or Parenting Payment) for at least one of the three months before they were hired.
It is important to note that businesses who are in receipt of JobKeeper are not eligible for the subsidy, and that JobMaker cannot be claimed in combination with other Commonwealth assistance measures such as the ‘Boosting Apprenticeships Commencements’ wage subsidy.
More information is available here.
The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021. In addition, from 3 August 2020, the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the original scheme and the extension.
There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of JobKeeper payment is different.
The extension periods are:
- Extension 1: from 28 September 2020 to 3 January 2021
- Extension 2: from 4 January 2021 to 28 March 2021
The rates of payment will change
The rate of the JobKeeper payment in each extension period will depend on the number of hours an eligible employee works. The payment will be split into two rates:
- Tier 1: this rate applies to eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020
- Tier 2: this rate applies to any other eligible employees
The rates of the JobKeeper payment in Extension 1 are:
- Tier 1: $1,200 per fortnight (before tax)
- Tier 2: $750 per fortnight (before tax)
The rates of the JobKeeper payment in Extension 2 are:
- Tier 1: $1,000 per fortnight (before tax)
- Tier 2: $650 per fortnight (before tax)
From 28 September 2020, businesses seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover).
From 28 September 2020, businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.
From 4 January 2021, businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in the December quarter 2020 to be eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.
To be eligible for JobKeeper Payments under the extension, businesses will still need to demonstrate that they have experienced a decline in turnover of:
- 50 per cent for those with an aggregated turnover of more than $1 billion;
- 30 per cent for those with an aggregated turnover of $1 billion or less; or
- 15 per cent for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities).
If a business or not-for-profit does not meet the turnover test for the extension period, this does not affect their eligibility prior to 28 September 2020.
For further information on the changes to JobKeeper, please click here.
The Federal Government has announced a ‘Boosting Apprenticeship Commencements' wage subsidy, which will see the Government pay a capped 50% wage subsidy for new apprentices commencing between 5 October 2020 and 30 September 2021.
While members may have already retained existing apprentices subsidised through JobKeeper or the ‘Supporting Apprentices and Trainees wage subsidy’, this new package will mean taking on a new apprentice will make even more sense.
Question: What financial support is there to keep an apprentice employed?
Answer: Small and medium businesses with less than 200 employees can receive a 50% wage subsidy from 1 July 2020 to 30 September 2021, for apprentices engaged as at 1 July 2020
Question: How can I access this money?
Answer: Employers will need to register with an Australian Apprenticeship Support Network (AASN) provider. A list of providers can be found at https://www.australianapprenticeships.gov.au/search-aasn
Question: What if I employ an MTA Group Training Scheme apprentice?
Answer: If you employ an MTA apprentice through our Group Training Scheme, the subsidy will still be passed onto you in full.
MTA apprentices will also not count towards your staff count so if you have 199 employees and 2 MTA apprentices, your staff count for apprentice wage subsidy eligibility purposes will still be 199.
Question: Can I receive this wage subsidy at the same time as the JobKeeper payment?
Answer: Unfortunately if an employee is receiving the $1,500 per fortnight JobSeeker payment, they are not eligible to receive this additional apprentice subsidy.
However, if you are eligible to receive the apprentice wage subsidy, it is recommended that you still apply for it for the period of 1 January 2020 to 31 March 2020, which covers the time prior to the JobKeeper Payment coming into effect.
SA Specific Question: What about if I want to take on a new apprentice?
Answer: The Government of South Australia is giving $5,000 to businesses with less than 25 employees for every new apprentice hired in SA on a paid training contract. If you have taken an apprentice since 1 March 2020, you can apply for the funding at https://www.cognitoforms.com/DepartmentForInnovationAndSkills/ApplyForFinancialSupportOptions
Asset incentives and
capital allowance deductions
From 7 October 2020 to 30 June 2022, businesses with a turnover of up to $5 billion will be able to deduct the full costs of assets purchased during this period.
The Government has also introduced a temporary measure for businesses with an aggregated turnover of under $500 million to deduct capital allowances for depreciating assets at a faster rate. This will equal an additional 50% of the asset cost in the year of purchase. To be eligible the asset must:
- be new and not held by another entity;
- be first held on or after 12 March 2020;
- be first used or first installed ready for use for a taxable purpose on or after 12 March 2020 until 30 June 2021; and
- not be an asset which an entity has applied for the instant asset write off rule or depreciation deductions.
It is recommended that members seek independent financial advice before making asset investment decisions.
Instant asset write-offs
The Federal Government has addressed concerns regarding eligibility for the extended $150,000 instant asset write-off threshold for businesses with an annual turnover of less than $500 million, due to delayed delivery dates on stock due to the impact of COVID-19. While the purchase date for assets remains as 31 December 2020, the delivery date for eligible assets has been extended until 30 June 2021.