The big four banks have all announced that their customers will be able to pause mortgage payments.

Some banks explicitly state only customers affected by coronavirus will be eligible to pause their repayments. But whether you need to provide proof (such as a doctor's note or severance form) to verify you have been affected by coronavirus depends on which bank you're with. 

If you're with Commonwealth

• You will be able to defer home loan repayments for up to six months
• Interest will be capitalised
• Interest and charges will be added to your loan balance
• Your loan balance will be recalculated at the end of the support period
• Your loan term will be extended so repayments stay the same as they were before you started the deferral

If you're with Westpac

• You will be able to defer repayments for three months
• A three-month extension is available after review
• This option is for people who have lost their job or income as a result of coronavirus
• Deferred interest will be capitalised, so your repayments will increase for the remainder of your loan term

If you're with ANZ

• You may be able to put your repayments on hold for six months
• Interest will be capitalised
• The bank will check in with you after three months

If you're with NAB

• You will be able to defer your repayments for up to six months
• There will be a three-month checkpoint with the bank
• You are eligible if you are a home loan customer affected by coronavirus
• This applies for owner-occupiers, investors or those on a principal and interest or interest only repayment schedule
• You will still be able to redraw during the repayment pause

 We strongly urge to you to contact your bank if you have any queries.

Article posted Thursday 26th March, 2020

Source: ABC News

The State Revenue Office of Victoria has announced that businesses with annual taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived.

Eligible businesses must continue to lodge returns but do not need to make further payments for this financial year.

The State Revenue Office will directly contact eligible businesses in relation to reimbursement for payroll tax already paid in the financial year.

These businesses can also defer paying payroll tax for the first quarter of the 2020-21 financial year.

More information about the administration of these relief measures will be sent directly to eligible businesses.

Article posted on Wednesday 25th March, 2020 

The Federal Government yesterday, 22nd March 2020, announced a second stage economic stimulus package. The “safety net” measures build on the first economic stimulus package they announced on the 12th March 2020.

Please note, the announcements are proposals at this stage, and Parliament is convening today to make the proposals law.

The legislation will provide more details about the measures.

Outlined below is a summary of some of the key measures announced:

SMALL & MEDIUM SIZED BUSINESS

The Government is providing up to $100,000 to eligible small and medium sized businesses, and not-for-profit organisations (including charities) that employ people, with a minimum payment of $20,000.

On 12 March 2020, the Government announced they would provide up to $25,000 to business, with a minimum payment of $2,000 for eligible businesses. Small and medium sized business entities with aggregated annual turnover under $50 million and that employ workers are eligible.  

The Government yesterday enhanced this measure as part of the second economic response package. Not-for-profit entities (NFPs), including charities, with aggregated annual turnover under $50 million and that employ workers will now also be eligible. Now, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000.

An additional payment is also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the amount they have received from the above. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments.

Quarterly lodgers will be eligible to receive the credit from 28 April 2020 upon the lodgement of their March quarter BAS. The second payment will be after the lodgement of their June quarter BAS.

BUSINESS LOANS

Australian banks will provide support to eligible businesses by deferring loan payments for up to six months.

Further, the banks in early April will look at providing loans to businesses. There will be no requirement to make loan repayments for the first six months. The Commonwealth is offering to guarantee these unsecured loans of up to $250,000 for up to three years.

INDIVIDUALS

Two cash payments of $750 each will be paid to eligible social security income support recipients and concession card holders. The first tax free payment, announced in the first stimulus package, is expected to be made from 31 March 2020. The second payment will be available to those who are not eligible for the Coronavirus supplement (see below) and will be paid from 13 July 2020.

The Government will temporarily double the Jobseeker Payment, previously called Newstart, providing people with an additional $550 a fortnight . This Coronavirus supplement payment will be available to sole traders and casual workers, provided they meet income tests. Sole traders and casual workers who are currently making less than $1,075 a fortnight will be eligible to receive the full supplement. The Government will waive asset tests and waiting periods to access the Jobseeker Payment.

SUPERANNUATION

The Government will allow eligible people to access up to $10,000 from their superannuation this financial year and in 2020-21.

To be eligible, you must meet one of the following conditions:

• you’re unemployed;
• you’re eligible to receive Jobseeker Payment, Youth Allowance, Parenting Payment, Special Benefit of Farm Household Allowance.
• on or after 1 January 2020, you were made redundant, your hours of work reduced by at least 20%, or if you’re a sole trader, your business was suspended or your turnover reduced by at least 20%.

People will not pay tax on the money they access, and withdrawals will not affect Centrelink or veterans' payments.

There will also be a temporary 50-per-cent reduction in superannuation minimum drawdown requirements for account-based pensions in 2019-20 and 2020-21.

Article posted on Monday 23rd March, 2020

The Federal Government yesterday, 12th March 2020, announced an economic stimulus package to assist in supporting the economic effects of the coronavirus (COVID-19) outbreak. This includes:

For businesses

• Instant asset write-off threshold increased from $30,000 to $150,000 for businesses with aggregated turnover of less than $500M for the year ending 30 June 2020;
• 15 month investment incentive (through to 30 June 2021) to support businesses investing in asset installation (50% deduction);
• Between $2,000 and $25,000 in cash flow assistance to support retaining staff for small businesses by reducing PAYG withholding obligations to 50% for the six months ending 30 June 2020; and
• 50% wage subsidies for businesses with trainees/apprentices for up to nine months from 1 January 2020 to 30 September 2020.

For individuals

• One off $750 payment to social security, veteran and other income support recipients and eligible concession card holders.

Once this announcement is enacted into law, and we have all the details, we will contact you with more information.

Article posted on Friday 13th March, 2020

*A stand down is when an employee can't do useful work because of: equipment break down, if the employer isn't responsible for it

*industrial action (www.fairwork.gov.au/Dictionary.aspx?TermID=2057) , when it's not organised by the employer

*stoppage of work for which the employer can't be held responsible, including severe and inclement weather or natural disasters.

Employers can't stand an employee down just because the business is quiet or there isn't enough work. Some awards, agreements and contracts have extra rules about when an employer can stand down an employee without pay. Check the List of awards (www.fairwork.gov.au/awards-and-agreements/awards/list-of-awards) to see if this applies to you.

An employer can't stand down an employee if they're on approved leave.

During a stand down period, an employee:

  *doesn't need to be paid 

  *accrues leave in the usual way.

*Casual employees can't be stood down if the business is quiet but they can be sent home after they've worked their minimum engagement period. For more information about casual employee pay and entitlements, see our Casuals page (https://www.fair-work.gov.au/employee-entitlements/types-of-employees/casual-part-time-and-full-time/casual-employees) .

*An application to deal with a dispute about a stand down can be made to the Fair Work Commission (https://www.fwc.gov.au/) by: an employee

*a union

*a Fair Work inspector.

If the Fair Work Commission makes an order about the dispute, you need to follow it or you risk being penalised.

Source:  https://www.fairwork.gov.au/pay/pay-during-inclement-weather-and-stand-down 

Here is more information and the your legal obligations regarding employment and the standing down of employees during the forced shut.

Click on the link below:

  https://coronavirus.fairwork.gov.au/