Economic Stimulus Package Updates

1. Small Business Grant Applications

To be eligible, businesses will need to:

• Have between 1-19 employees and a turnover of more than $75,000;
• A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;
• Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
• Be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020;
• Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
• Provide appropriate documentation upon application.

Applications for a small business grant of up to $10,000 are now available through Service NSW and will remain open until 1 June 2020.

If you would like YML to manage the Business Grant application process for you, please do the following urgently:

Click on the link below to engage us and provide us with your bank account details

https://app.hellosign.com/s/Ec6LMXZA

2. JobKeeper Extended Dates

The ATO has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.

If you enrol by 31 May 2020, you will still be able to claim for the JobKeeper fortnights ending in April and May, provided you meet all the eligibility requirements for each for those fortnights. This includes having paid your employees by the appropriate date for each fortnight.

For the first two fortnights (30 March – 12 April, 13 April – 26 April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by 8 May 2020. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.

If you would like YML to manage the JobKeeper Incentive process for you, please do the following urgently:

1. Click on the link below to engage us and provide us with your bank account details

https://app.hellosign.com/s/JTYX1jRe

2. Click the link below if you are a business owner (and not an employee) in order for you to receive JobKeeper

https://app.hellosign.com/s/Hu4BQXtt

3. Provide the link below to your employees so that we can collate the employee information required for you to receive JobKeeper (you will also need to provide your employees with your ABN)

https://app.hellosign.com/s/JhE06wTy

3. Land Tax Support Package

The NSW Government is introducing measures to help commercial and residential landlords manage their rental properties.

The support package includes a reduction of up to 25% of the land tax payable on a parcel of land in the 2020 land tax year. It is available when:

• your land is used for business or residential purposes
• you’re leasing property on that parcel to a residential tenant – or a business tenant with annual turnover of up to $50 million - who can demonstrate financial distress resulting from the COVID-19 outbreak
• you reduce the rent of the affected tenant by at least as much as the tax reduction
• the land tax is directly related to the property for which rent has been reduced.

Financial distress is considered to be:

• for commercial tenants - a 30 per cent drop in revenue due to COVID-19 pandemic
• for residential tenants - a 25 per cent drop in household income due to COVID-19.

To be eligible for the land tax support package, you must have a land tax liability in 2020.

You must also meet the requirements outlined in the support package, namely:

• your tenant is suffering from financial distress as a result of COVID-19
• you have reduced the rent of the affected tenant by at least as much as the tax reduction.

How to apply:

Revenue NSW are currently streamlining the application process which will soon be available on the Revenue NSW website.

Supporting documents may include BAS statements, or a letter from an accountant.

Eligible landowners will be able to apply for a land tax reduction via refund. The amount of refund provided will be up to 25 per cent of a landlord’s 2020 land tax liability.

If you would like YML to manage the Land Tax reduction application process for you, please do the following:

Click on the link below to engage us and provide us with your bank account details

https://app.hellosign.com/s/16cLMkVc

4. Superannuation Minimum Pension Requirements

For many retirees, the significant losses in financial markets as a result of the COVID-19 crisis are having a negative effect on the account balance of their superannuation pension or annuity.

To assist retirees, the Government has reduced the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50 per cent in the 2019-20 and the 2020-21 financial years.

Superannuation and annuity providers calculate the minimum annual payment required at 1 July each year, based on the account balance of the member or annuitant. The 50 per cent reduction will apply to the calculated minimum annual payment.

Example

Robert is 67 years of age. At 1 July 2019, Robert’s account based pension balance was $480,000. Robert’s minimum annual payment was calculated at

5% (the percentage applicable to his age) of his pension balance, which is $24,000. Following the law change, Robert’s required annual minimum pension payment for 2019-20 is $12,000.

Please note that If Robert has already withdrawn more than $12,000 for 2019-20, he is not able to put the amount above $12,000 back into his superannuation account unless he’s eligible to make superannuation contributions and subject to any other rules or limits such as contribution caps.

How can YML help?

By completing the links provided above you are assured that YML will manage the process.  If you have question please contact YML Group today on (02) 8383 4400, or by visiting the Contact Us page on our website.