Coronavirus Economic Response Package
The ATO is committed to supporting the Australian community to get through this difficult time and to access the help on offer. We know that many businesses and communities are being heavily affected by the challenging economic conditions created by the outbreak of COVID-19.
The ATO is administering six economic stimulus measures to support businesses and individuals during the COVID-19 pandemic:
- allowing individuals to access their superannuation early
- reducing superannuation minimum drawdown rates
- assisting eligible employers, sole traders and other entities to pay their employee’s salary or wages via JobKeeper payments
- providing cash flow assistance for employers
- increasing the instant asset write-off, making more businesses eligible
- backing business investment by accelerating depreciation deductions.
Enrolment is now open for the government's $130 billion JobKeeper Payment scheme. The scheme supports businesses significantly affected by the coronavirus to help keep more Australians in jobs.
The JobKeeper Payment supports eligible employers and other entities affected by COVID-19 to pay their employees a minimum of $1,500 per fortnight to help keep more Australians in jobs.
Employers need to pay all eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month by us.
Enrolments closed on 31 May 2020 for the initial JobKeeper period, from 30 April 2020 until 31 May 2020. Find out more by visiting ato.gov.au/jobkeeper.
Cash flow boost
Eligible employers will receive between $20,000 and $100,000 in cash flow boost amounts, delivered as credits in the activity statement system, when they lodge their activity statements up to the month or quarter of September 2020.
There is no need to apply - if an employer is eligible, they simply lodge their activity statements and the credits will be automatically applied.
The cash flow credit will be applied to reduce liabilities arising from the same activity statement e.g. PAYGW and GST payable. Any excess credit will be refunded, rather than offset against any existing tax debts employers have.
If eligible employers are due to receive a refund, the ATO will generally pay it within 14 days.
Find out more by visiting ato.gov.au/cashflowboost.
Early access to super
Eligible individuals financially affected by COVID-19 can access some of their superannuation (super) early. Individuals will not pay tax on amounts released and will not need to include them in their tax return.
Eligible Australian and New Zealand citizens and permanent residents can access up to $10,000 in superannuation before 30 June 2020. They will also be able to access up to a further $10,000 from 1 July 2020 until 24 September 2020.
Individuals can only submit one application in each of the financial years, even if they do not receive the full $10,000 per financial year.
Eligible temporary residents can apply to access up to $10,000 of their super until 30 June 2020.
For more information about economic stimulus measures administered by the ATO, visit ato.gov.au/coronavirus or call 13 72 26.
Bronwyn Du Mont
Director, Debt — Significant Debt Management
Australian Taxation Office