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Apr 28, 2020 / News
COVID-19 Stimulus and Support Measures for NFP’s
We have summarised the COVID-19 related stimulus and support measures that are available for Not-for-Profit (NFP) entities.
There are further State Government announcements that are not included here because the details have not been released but they may be of assistance to you when details are known.
| Support Type | Details | Application to NFP’s |
|---|---|---|
| Small business relief package | Defer loan repayments for up to 6 months |
Contact your bank directly for details on how to apply. Loan repayments can be deferred for up to 6 months. Please note that interest will continue to accrue during this time. See our article 'Banks announce Small Business Relief Package' for more information. |
| Increased Depreciation Deductions | Accelerated depreciation on certain new depreciable assets | Does not apply to NFP entities as you do not pay income tax. |
| Instant Asset Write-Off | Increasing the instant asset write-off to assets costing less than $150,000 | Does not apply to NFP entities as you do not pay income tax. |
| Cash Flow Boost Payments (Initial and Additional) | Receive up to $100,000 credit on the ATO activity statement account between the BAS period March 2020 and September 2020. |
If your turnover less than $50 million If the turnover of your entity is less than $50 million, you had an active ABN on 12 March 2020 and you make eligible payments to your employees for which you are required to withhold tax, you will receive the cash flow boost payment. The amount will depend on your PAYG liability across the BAS periods of March to June 2020. Up to $50,000 is available for the BAS periods March to June 2020 and will appear as a credit towards your PAYG liability on your activity statement account with the ATO. In addition you will also receive a second cash flow boost to the same value as the first cash flow boost, split evenly over the BAS periods of June to September 2020. A total of $50,000 is available in the 2nd boost provided the PAYG withholding reported between March and June 2020 is $50,000 or above. The total cash flow boost available is $100,000. Additional information is provided on the ATO website. |
| Apprentices and trainees | Employers employing less than 20 employees can apply for a wage subsidy of 50% of the apprentice or trainee’s wage for up to 9 months. |
If you have less than 20 employees Apply for the apprentice subsidy. If you have more than 20 employees This does not apply. |
| Affected regions | Sectors and regions disproportionately affected by the coronavirus will receive targeted support. |
Tourism, agriculture and education have been flagged as sectors that have been disproportionately affected by the economic impacts of COVID-19. Assistance will be provided through existing or newly established Government programs. The Deputy Prime Minister will work with affected industries and communities to develop recovery plans and measures. |
| JobKeeper Payment |
Payment of $1,500 per eligible employee per fortnight for 13 payroll periods covering the period 30 March 2020 to 27 September 2020. |
If you are a charity registered with the ACNC regardless of turnover This scheme supports businesses significantly affected by the coronavirus for the period 30 March 2020 to 27 September 2020. Eligible employees will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee. Eligible Employers
Eligible Employees
If you choose to participate in the JobKeeper Payment scheme, you must nominate all your eligible employees. You cannot choose to nominate only some employees. However, individual eligible employees can choose not to participate. Turnover The calculation of decline in turnover is based on GST turnover. We recommend you contact your trusted Nexia Edwards Marshall adviser to discuss the turnover implications for your business. You only need to satisfy the decline in turnover test once. You will be required to report current turnover and projected turnover at the conclusion of each month you are seeking the JobKeeper payment. Key Dates
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| Deferral of lodgements or payments with the ATO | Deferrals are available in relation to activity statements, PAYG instalments and FBT payments. |
Contact the ATO Emergency Support Infoline on 1800 806 218. No automatic deferrals will be applied, you need to contact the ATO and request a deferral. We have an article on the ATO’s administrative concessions for businesses affected by coronavirus. |
| Respite from personal liability of directors | Directors of companies incorporated under the Corporations Act have been given respite from any personal liability for debts incurred by the company in the period 25/3/20 to 25/9/20 even if the company is trading whilst insolvent. |
This is comforting for directors of companies. We have an article on COVID-19 and Safe Harbour Rules for Directors and Business Owners. |
| Increase in creditor demand threshold |
Creditor statutory demand threshold has increased from $2,000 to $20,000. A company is deemed to be insolvent if it fails to pay a creditor who has issued a statutory demand unless that demand is set aside by a court. |
|
| NDIS financial assistance | Financial assistance to providers to support retention of workers including advance payments, 10% COVID-10 loading on some supports and changes to cancellation policies |
Registered NDIS providers may receive a one-month advance payment based on monthly average supports delivered in the previous three month period – to provide immediate cash flow relief. It will be automatically provided unless the NDIS provider opts out. To cover the additional costs of service delivery for existing supports, a 10 per cent COVID-19 loading will be added to price limits of some Core and Capacity Building supports for up to six months. Increased flexibility of the NDIA’s cancellation pricing policy will allow providers to charge the full 100 per cent for the price of a cancelled service, and the definition of ‘short notice cancellation’ will also be broadened. More information for NDIS Providers is available on the NDIS website. |
| Business loan guarantee scheme | Government will provide a guarantee of 50% to eligible lenders of unsecured loans to be used for working capital. |
Need to speak directly to your bank to ascertain the assessment criteria for this type of loan. Loans of up to $250,000 can benefit from the Government guarantee. |
| Small Business Grants | One off emergency cash grants of $10,000 from the South Australian Government’s Jobs Rescue Package |
NFP entities that employ South Australian who have been highly impacted by COVID-19 may be eligible to receive a $10,000 grant to support the operation of their business. The grant is being funded from the State Government’s Jobs Rescue Package. To be eligible:
Businesses that are eligible for the Commonwealth JobKeeper payment will be deemed to be highly adversely impacted by COVID-19 restrictions. |
| Land Tax Relief | Land tax relief for landlords |
The South Australian Government has announced land tax relief for non-residential and residential landlords in response to COVID-19. This does not apply for registered charities. |
| Payroll Tax Relief | Payroll tax relief for employers |
Business groups with annual Australian wages of up to $4 million will receive a six month payroll tax waiver. Eligible business groups will not be required to pay any payroll tax in the months of April to September 2020. This does not apply for registered charities. |
| Job Accelerator Grant | Relaxed existing criteria for the Job Accelerator Grant (JAG) |
The Government is relaxing the existing Job Accelerator Grant (JAG) criteria requiring an employee to have maintained their overall employment levels to be eligible for their second JAG payment. The Government understands that due to the impact of COVID-19, some employers may not be able to meet this criteria. Applications for the second JAG payment from 1 February to 30 June 2020 will be assessed on staffing levels as at 31 January 2020 rather than the relevant anniversary date. |
How can Nexia Edwards Marshall help you?
If you have any questions on how the above may apply to you or how to access these stimulus and support measures please contact Steven Wild or your Nexia Edwards Marshall specialist.
The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.
