Australian and WA Government cashflow assistance

There are different forms of assistance from both levels of government

Australian Government

On 22 March 2020, the Australan Government announced increases to the cashflow assistance it first announced on 12 March.

The Boosting Cash Flow for Employers measure will now deliver two rounds of payment to eligible businesses. You do not need to apply - the payment is automatic and will be processed by the Australian Taxation Office.

  • If your turnover is less than $50 million and you employ staff between 1 January 2020 and 30 June 2020
    • If you withhold PAYG tax on employees’ wages, you will receive a payment equal to 100 per cent of PAYG withheld (up from 50 per cent announced on 12 March). The minimum payment is $10,000 and the maximum is $50,000 (up from the minimum $2000 and maximum $25,000 announced on 12 March).
    • If you pay wages but are not required to withhold tax, and your business is eligible, the minimum payment is now $10,000.
    • The Australian Taxation Office will deliver this payment as a credit on quarterly business activity statements from 28 April 2020 and monthly activity statements from 21 April 2020. If the credit results in a refund, it will be paid within 14 days.
  • An additional payment is now being made from 28 July 2020.
    • Eligible entities will receive an additional payment equal to the total of all the Boosting Cash Flow for Employers payments already received.

This means the minimum combined payment under Boosting Cash Flow for Employers is now $20,000 and the maximum is now $100,000.

For more information on Boosting Cash Flow for Employers

WA Government

The State Government announced a package on 16 March 2020 and a second package on 31 March 2020. The payroll tax waiver in the second package replaced the payroll tax deferral in the first package. The following are the main points from both packages.

  • Licence fees, including plumbers licence fees, waived for 12 months.  In July, the Government clarified that the waiving of licensing-related fees for a 12 month period is limited to single-year payments. 
  • A one-off grant of $17,500 for business that pay payroll tax and have a payroll between $1 million and $4 million.
  • $1 million payroll tax threshold brought forward by six months to 1 July 2020.
  • Payroll tax waived from 1 March 2020 to 30 June 2020 for businesses with Australia-wide annual wages less than $7.5 million in 2019-20.
  • Small and medium-sized businesses affected by COVID-19 can now apply to defer payment of their 2019-20 payroll tax until July 21, 2020.
  • A one-off $2,500 credit, to be allocated from 1 May 2020, for Synergy and Horizon Power customers that consume less than 50 megawatt hours a year.
  • Affected business can apply for interest-free payment arrangements and for waiver of late payment penalties for payroll tax, transfer duty, landholder duty, vehicle licence duty or land tax.
  • No disconnections of electricity or water for late payments by affected businesses.
  • No interest on deferred bill payments for Synergy or Horizon Power customers that consume up to 50 megawatt hours a year.

For more information on the WA Government packages