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 $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.||
The tourism industry has been flagged as a potential sector to receive support. This will include a waiver of certain fees and support to promote domestic tourism. This administrative relief will be provided on a case-by-case basis and businesses will need to apply. Currently there are no details around the application process.
|JobKeeper Payment||Payment of $1,500 per eligible employee per fortnight for up to 6 months.||
If you are a charity registered with the ACNC regardless of turnover
You will need to demonstrate a reduction in turnover of more than 15% compared with the same period last year (i.e. April 2020 compared to April 2019).
As this is not yet law, there is no guidance on what is included in turnover. We expect guidance to be provided over the coming days.
This payment is available for all employees you had at 1 March 2020 covering full-time, part-time and certain casual employees. It does not matter if you have dismissed the employee as a result of the reduced demand; the payment is available if they were an employee at 1 March 2020, you reinstate the employee and you meet the other eligibility requirements.
For casual employees to qualify, they need to have been employed on a regular basis for longer than 12 months as at 1 March 2020. They do not need to be getting shifts now – they simply need to have been employed at 1 March 2020 and been engaged on a regular basis for more than 12 months. Currently there is no further guidance on what ‘regular basis’ means.
In addition, the employees need to be at least 16 years of age, an Australian citizen or hold a relevant visa and not be in receipt of another JobKeeper payment.
Additional information and examples are provided on The Treasury website.
|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 have been given a 6-month respite from any personal liability for trading whilst insolvent||
This is comforting for directors of all entities.
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-19 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% 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.||
You 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.