Post

20 Oct 2021

CORONAVIRUS/COVID-19 ECONOMIC RELIEF PACKAGE

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<p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">by Sekou Seasay <span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;"><a style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px; color: #25458d; outline: 0px; transition: all 0.3s ease 0s; text-decoration-line: none !important; box-shadow: none !important;" href="http://www.financialplanningmagazine.com.au/article/CFP-pathways/214928.aspx" target="_blank" rel="noreferrer noopener">CFP®</a> Chartered Tax Adviser™, AIPA, Registered Tax Agent, GradDip Adv Tax Law B Bus Admin <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">The Australian government has introduced a package of Bills designed to stay off the economic impact of coronavirus/COVID-19 and emaciate its impact on affected individuals and businesses. The measures were announced between 12 and 22 March 2020 and has been introduced into Parliament. In broad terms, the bills with various measures, including: <ul style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px 11px; padding: 0px 0px 0px 10px; list-style-position: inside; list-style-image: initial; color: #25458d; background-color: #ffffff;"> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">providing stimulus payments to households</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">reducing the superannuation minimum drawdown rates</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">providing additional support for income support recipients</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">enhancing the instant asset write-off</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">accelerating depreciation deductions</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">boosting cash flow for employers</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">providing for early release of superannuation, and</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">increasing Medicare levy and Medicare levy surcharge low-income thresholds.</li> </ul> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">The key measures of the bill are: <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Enhancing the instant asset write-off <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">These measures are included in the Omnibus Bill. Schedule 1 of the bill aims to: <ul style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px 11px; padding: 0px 0px 0px 10px; list-style-position: inside; list-style-image: initial; color: #25458d; background-color: #ffffff;"> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">increase the cost threshold below which small business entities can access an immediate deduction for depreciating assets and certain related expenditure (the instant asset write-off) from $30,000 to $150,000, from 12 March 2020 to 30 June 2020. This measure will increase the instant asset write off tax shield from $8,250 to a whopping $33,000, a $24,750 for a base rate corporate entity and $5,700 to $67,500 for individual tax payers depending on marginal tax rates.</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">provides access to an instant asset write-off to entities with an aggregated turnover of $10m or more but less than $500m (up from the existing cap of $50m), and</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">make the instant asset write-off available for depreciating assets and certain related expenditure costing less than $150,000, from 12 March 2020 to 30 June 2020.</li> </ul> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">These measures will take effect on or after 12 March 2020. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Accelerating depreciation deductions <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 2 of the Omnibus Bill temporarily allows businesses with aggregated turnovers of less than $500m pa to deduct capital allowances for depreciating assets at an accelerated rate. The conditions that must be satisfied for a small business to apply the accelerated rate of deduction includes that the asset: <ul style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px 11px; padding: 0px 0px 0px 10px; list-style-position: inside; list-style-image: initial; color: #25458d; background-color: #ffffff;"> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">is new and has not previously been held by another entity (other than as trading stock or for testing and trialling purposes)</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">is an asset for which an entity has not claimed depreciation deductions, including under the instant asset write-off rules, and</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">is first held, and first used or installed ready for use, for a taxable purpose between 12 March 2020 and 30 June 2021 (inclusive).</li> </ul> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">There are different rules that apply depending on whether an entity is using the simplified rules for capital allowances for small businesses. These measures will take effect on or after 12 March 2020. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Boosting cash flow for employers <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">The Cash Flow Boost Bill provides for the Commissioner to make payments referred to as cash flow boost payments comprising the first cash flow boost and the second cash flow boost payments. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Eligible entities will receive the first cash flow boost payments from March 2020 to June 2020. Entities are eligible if: <ul style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px 11px; padding: 0px 0px 0px 10px; list-style-position: inside; list-style-image: initial; color: #25458d; background-color: #ffffff;"> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">the entity makes a payment that is subject to withholding obligations under Subdiv 12-B, 12-C or 12-D of the Taxation Administration Act 1953 (i. e a payment of wages or salary or similar remuneration), whether or not any amount is actually withheld, in the period</li> </ul> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">• either: <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">o            – the entity was a small or medium business entity, or a charity or other not-for-profit (NFP) entity of equivalent size, for the most recent income year of the entity for which an assessment of income tax has been made by the Commissioner, or <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">o            – the Commissioner is reasonably satisfied that it is likely that the entity is a small or medium business entity, or a charity or other NFP entity of equivalent size, for the income year that includes the period <ul style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px 11px; padding: 0px 0px 0px 10px; list-style-position: inside; list-style-image: initial; color: #25458d; background-color: #ffffff;"> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">the entity has notified the Commissioner of their entitlement in the approved form</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">the period is one of the following:</li> </ul> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">o            – the quarters ending in March 2020 or June 2020, or <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">o            – the months of March 2020, April 2020, May 2020 or June 2020 <ul style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px 11px; padding: 0px 0px 0px 10px; list-style-position: inside; list-style-image: initial; color: #25458d; background-color: #ffffff;"> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">if the entity is not an Australian Charities and Not-for-profits Commission registered charity, it both:</li> </ul> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">o            – held an ABN on 12 March 2020, and <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">o            – either derived assessable income from carrying on a business in the 2018/19 income year or made one or more supplies for consideration in the course of an enterprise it carried on within Australia in tax periods commencing after 1 July 2018 and ending before 12 March 2020 and notice of the income or supplies was held by the Commissioner on or before 12 March 2020 or within such further time as the Commissioner allows, and <ul style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px 11px; padding: 0px 0px 0px 10px; list-style-position: inside; list-style-image: initial; color: #25458d; background-color: #ffffff;"> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">the entity (or an associate or agent of an entity) has not engaged in a scheme for the sole or dominant purpose of seeking to make the entity entitled to the first cash flow boost or increase the entitlement of the entity to the first cash flow boost.</li> </ul> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">The Cash Flow Boost Bill also provides for the Commissioner to make the second cash flow boost payments upon lodgment of activity statements for periods from June to September 2020 to entities that were entitled to the first cash flow boost. Schedule 3 of the Omnibus Bill makes consequential amendments to various Acts arising from the Cash Flow Boost Bill. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">The Cash Flow Boost Bill provides for the Commissioner to make payments to eligible entities in respect of periods from March 2020 and the quarter ending March 2020. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Boosting cash flow tax strategy <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">One of the biggest problems for small businesses is how to extract revenue from the business for personal use whilst reducing income tax. This is often done with a combination of wages, dividends and sometimes capital withdrawal. Any one choice or combination of choices will result in an income tax liability. For some self-employed single director entities, this measure may provide an opportunity to extract revenue from the businesses as wages whilst deferring the payment of the ensuant tax liability to the Commissioner of Taxation. We have calculated that a single director who draw wages will exhaust the $100,000 boosting cash flow payment at an annual wage of $269,980. The position where all of the payment do not qualify for a boosting cash flow payment and where all qualify for the payment are contrasted below. <figure class="wp-block-table" style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 1em; padding: 0px; overflow-x: auto; color: #25458d; background-color: #ffffff;"> <table class="" style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px; border-spacing: 0px; width: 796.188px;"> <tbody style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;"> <tr style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;"> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;"> </td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Without boosting cash flow payment – $</td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">With boosting cash flow payment – $</td> </tr> <tr style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;"> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;">Wages</td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;">269,980</td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;">269,980</td> </tr> <tr style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;"> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;">PAYG withholding</td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;">99,996</td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;">99,996</td> </tr> <tr style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;"> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Boosting cash flow payment</td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">0.00</td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">(99,996)</td> </tr> <tr style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;"> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Net Tax paid</td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">99,996</td> <td style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 5px;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">0.00</td> </tr> </tbody> </table> </figure> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">To qualify for the payment, we have clarify with the ATO that the following conditions must be met: <ul style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px 11px; padding: 0px 0px 0px 10px; list-style-position: inside; list-style-image: initial; color: #25458d; background-color: #ffffff;"> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">The entity must be registered for PAYG withholding</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">The entity must be registered for Single-Touch Payroll (STP) and</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Be singletouch payroll compliant in the lodgement period (March and June) and</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Lodge activity statements.</li> </ul> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Stimulus payments to households <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 4 of the Omnibus Bill provides for the payment of the first economic support payment of $750 to Social Security and Veterans’ income support recipients, Farm Household Allowance recipients, Family Tax Benefit recipients and holders of a Pensioner Concession Card, Commonwealth Seniors Health Card or Commonwealth Gold Card. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 4 also provides for the payment of a second economic support payment of $750 to Social Security and Veterans’ income support recipients, Family Tax Benefit recipients and holders of a Pensioner Concession Card, Commonwealth Seniors Health Card or Commonwealth Gold Card who receive a qualifying payment or hold a qualifying concession card on 10 July 2020, unless they are eligible to receive the Coronavirus Supplement. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">These measures will take effect on the day after the Omnibus Bill receives assent. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Superannuation drawdowns <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 10 of the Omnibus Bill amends the SIS Regulations and RSA Regulations to reduce the minimum payment amounts for account-based pensions (and for the equivalent annuity products) by half for the 2019/20 and 2020/21 financial years. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">These measures will take effect the day after the Omnibus Bill receives assent. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Additional support for income support recipients <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 11 of the Omnibus Bill amends the Social Security Act 1991 to provide additional financial assistance to Australians financially impacted by the coronavirus. Australians can claim Jobseeker Payment or Youth Allowance (other) if they are an Australian resident (or exempt from the residence requirements) and satisfy the requirements outlined in a legislative instrument. If qualified, a person receives the current rate of Jobseeker Payment or Youth Allowance (other) along with a fortnightly supplement of $550 or such other amount determined by legislative instrument. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">The supplement is also available to existing recipients of Jobseeker Payment, Youth Allowance (other), Parenting Payment, Special Benefit, and the Farm Household Allowance. The Minister for Families and Social Services (the Minister) may extend the supplement to other social security payments by legislative instrument. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">The supplement is available for an initial six-month period, commencing on 27 April 2020. The Minister may extend the six-month period and extend the supplement to other social security payments. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Recipients of Jobseeker Payment or Youth Allowance (other) (which includes new and existing recipients) will be exempt from the assets test, liquid assets waiting period, ordinary waiting period, newly arrived resident’s waiting period and seasonal worker preclusion periods. Parenting Payment recipients will also be exempt from the assets test, ordinary waiting period, newly arrived resident’s waiting period and seasonal worker preclusion period. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">The exemption from the newly arrived resident’s waiting period also applies to special benefit. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 11 also amends the Farm Household Support Act 2014 to apply the supplement and exemptions to recipients of the Farm Household Allowance. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">These measures will take effect on 27 April 2020. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 11 also delays the commencement of the Social Services and Other Legislation Amendment (Simplifying Income Reporting and Other Measures) Act 2020 by 12 months to 1 July 2021. That Act amends the Social Security Act 1991 to ensure that employment income is assessed once it is paid to a social security recipient. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Early release of superannuation <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 13 of the Omnibus Bill amends the SIS Regulations and RSA Regulations to allow individuals affected by the coronavirus to have up to $10,000 released from their superannuation or retirement savings account on compassionate grounds. Each person is permitted to have up to two releases — one for an application made during the 2019/20 financial year and another for an application made during the 2020/21 financial year. This means a person may have up to $20,000 released in total. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 13 also amends the Income Tax (Transitional Provisions) Act 1997 to ensure that any such amounts that are released are not subject to tax. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">These measures will take effect on the day after the Omnibus Bill receives Royal Assent. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Medicare levy and Medicare levy surcharge low-income thresholds <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Schedule 14 of the Omnibus Bill amends the Medicare Levy Act 1986 and the A New Tax System (Medicare Levy Surcharge — Fringe Benefits) Act 1999 to increase: <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • the Medicare levy low-income thresholds for individuals and families (along with the dependent child/student component of the family threshold) in line with movements in the consumer price index (CPI) <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • the Medicare levy low-income thresholds for individuals and families eligible for the Seniors and Pensioners Tax Offset (along with the dependent child/student component of the family threshold), in line with movements in the CPI, and <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • the Medicare levy surcharge low-income threshold in line with movements in the CPI. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">These measures apply to the 2019/20 income year and later income years. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;"><span style="border: 0px; font-style: inherit; font-variant: inherit; font-weight: bold; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Remaining measures <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">The legislative package also deals with the following measures: <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Delegation power for the Director of Human Biosecurity. Schedule 5 of the Omnibus Bill enables the Director of Human Biosecurity to delegate their function or powers under Pt 3 of Ch 2 (human biosecurity control orders) of the Biosecurity Act 2015. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Environmental Management Charge. Schedule 6 of the Omnibus Bill amends the Great Barrier Reef Marine Park Regulations 2019 to temporarily waive the environmental management charge from 1 April 2020 to 31 December 2020. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Assistance for apprentices and trainees and the aviation sector. Schedule 7 of the Omnibus Bill establishes legislative authority for government spending on new measures to assist employers to retain apprentices and trainees, and to provide financial assistance to participants in the Australian aviation sector to assist with the impact on the sector of the coronavirus. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Providing flexibility in the Corporations Act. Schedule 8 of the Omnibus Bill establishes a temporary mechanism to provide regulatory relief to classes of persons that, due to the coronavirus, are unable to meet their obligations under the Corporations Act or the Corporations Regulations. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Childcare. Schedule 9 of the Omnibus Bill provides limited flexibility to manage the impact of the coronavirus, as well as future disasters, on families and on business continuity for childcare services. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Temporary relief for financially distressed individuals and businesses. Schedule 12 of the Omnibus Bill provides temporary relief for financially distressed individuals and businesses. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Delaying the next intergenerational report to 2021. Schedule 15 of the Omnibus Bill delays the next intergenerational report from 2020 to mid-2021 to ensure there is adequate time to produce long-term projections that are based on robust budget estimates. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Deferral of sunsetting. Schedule 16 of the Omnibus Bill allows the relevant Minister for an Act or legislative instrument that is scheduled to sunset on or before 15 October 2020 to determine a new day on which the legislation sunsets. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Bill 2020. This Bill authorises the relevant Minister to grant guarantees to financial institutions in connection with loans made, or to be made, to small and medium enterprises (SMEs) if granting the guarantee is likely to assist in dealing with the economic impacts of the coronavirus. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Australian Business Growth Fund (Coronavirus Economic Response Package) Bill 2020. This Bill increases the availability of patient capital for SMEs by authorising the contribution of $100m to invest in an Australian Business Growth Fund. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Bill 2020. This Bill allows the Government to set aside $1b to support regions, communities and industry sectors most severely affected by the coronavirus. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">•            • Structured Finance Support (Coronavirus Economic Response Package) Bill 2020. This Bill establishes the Structured Finance Support (Coronavirus Economic Response) Fund, initially consisting of $15b. <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">              • Appropriation Bills. The Appropriation (Coronavirus Economic Response Package) Bill (No 1) 2019–2020 and the Appropriation (Coronavirus Economic Response Package) Bill (No 2) 2019–2020 propose appropriations from the Consolidated Revenue Fund for certain services of the Government.

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CORONAVIRUS/COVID-19 ECONOMIC RELIEF PACKAGE