COVID-19 · PACK COVID-19. DISCLAIMER Whilst carsales has taken care to ensure the accuracy of the...

August 2020

PARTNER

INFORMATIONPACK

COVID-19

DISCLAIMER

Whilst carsales has taken care to ensure the accuracy of the material contained in this document, carsales does not make any representations or

warranties regarding the accuracy or completeness of such material. You are responsible for assessing the accuracy of the material and rely on it at

your own risk. Given the quickly evolving nature of the COVID-19 pandemic, please confirm details of products or services with the relevant company

or government agency. carsales excludes all liability for loss or damage (including indirect or consequential loss or damage) which may be incurred in

connection with your use or reliance on the material contained in this document (other than liability which cannot be lawfully excluded).

The information provided in this document is of a general nature only and is not financial or legal advice. You should consider the appropriateness of

this information for your specific circumstances and consider obtaining independent financial, legal or other professional advice. Products and

services referred to in this document that are offered by third parties are subject to the third party's terms and conditions. Please contact the third

party product or service provider to confirm the details set out in this document and to obtain a copy of the relevant Product Disclosure Statement

(where applicable).

2

3

BANKING OVERVIEW

BANKING OVERVIEW

• The major banks, in conjunction with the Australian Banking Association (ABA)

and Federal Government have worked to put together financial support for SMEs

• These support tools typically include:

• Deferral of principal and interest loan repayments for 6 months

• Reduced interest rates

• Increased access to credit

• Waived fees and charges

• Initiatives outlined are as at date of publication. As details are still emerging and

quickly evolving, please confirm the details of each initiative with the relevant

bank.

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NATIONAL AUSTRALIA BANK

INITIATIVE DETAIL* ELIGIBILITY*

DEFERRAL OF LOAN REPAYMENTS

Defer principal and interest for up to six months on a range of business loans including floating and variable rate loans, and equipment finance loans. Initiative extended, on a cases by case basis, by up to a further 4 months, ending no later than 31 March 2021.

Eligibility for small and medium sized customers. Contact your relationship manager to confirm eligibility

REDUCED RATES

Receive a 200 basis point rate cut on QuickBiz loans and overdrafts, effective March 30

Receive an additional 100 basis point reduction on variable rates for small business loans, effective March 30

All

IMPROVED CREDIT ACCESS

Unsecured loan of up to $250,000. The new NAB Business

Support Loan has no establishment or account fee for a period of

up to 3 years. The loan has a variable rate of 4.5% p.a. with no

repayments due for 6 months

Lending criteria appliesAnnual turnover under $50m

JOBKEEPER SUPPORT

NAB can help customers access temporary finance options

ahead of the JobKeeper assistance payment being received.

Available to existing NAB customers with a business transaction

account. Interest is payable. Approved business customers will

have access to the NAB JobKeeper Overdraft until 31

October 2020.

Business Name and ABN stipulated on the ATO confirmation must match the trading entity that holds the NAB business transaction account.Account conduct must be in order.JobKeeper Assistance must not have been provided by other financiers

*PLEASE NOTE: Many of these initiatives require you to opt in. Please talk to your banking relationship manager to confirm each initiative's details and eligibility requirements, and to obtain a copy of any applicable terms and conditions

5

NATIONAL AUSTRALIA BANK


DEFERRAL OF CREDIT CARD EXPENSES

Defer business credit card repayments for up to 6 months

Eligibility for small and medium sized customers, contact your relationship manager to confirm eligibility

WAIVED MERCHANT FEESRequest merchant terminal fees are waived until the end of July 2020, except for Victoria, where this support will remain until the end of August 2020.


COVENANT SUPPORTReporting and financial covenants temporarily waived until 30 September 2020

Small and medium enterprise (SMEs)Contact your banker to confirm eligibility


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COMMONWEALTH BANK OF AUSTRALIA

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NEW LOANS AVAILABLE

Offering an unsecured loan of up to $250,000 (lending criteria applies) with no establishment or account fees, and no repayments required for six months. 4.5% interest rate p.a. New loans only.

Less than $50m turnover


CBA automatically enrolled business and community customers for a three month repayment deferral on all eligible BetterBusiness loans and equipment loans from April 2020. CBA extended this deferral for all eligible customers for an additional three months through to September 2020.

In July 2020 the Government announced a further repayment deferral of up to four months on eligible business loans, for customers impacted by coronavirus. CBA are offering this and other support to customers on a case by case basis depending on their individual circumstances.



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REDUCED RATESReducing our small business loans by 1% across all business loans where the

variable rate is calculated based on the current cash rateAll

DEFERRAL OF OVERDRAFT PAYMENTS

Deferring repayments on overdraft products for 90 daysContact your relationship manager

WAIVING REDRAW FEESWaiving early redraw fees on business term deposit accounts (including Farm Management Deposit accounts)

Contact your relationship manager

WAIVING ESTABLISHMENT AND EXCESS INTEREST FEES

Waiving establishment fees and excess interest on Temporary Excess productsContact your relationship manager



9


JOBKEEPER SUPPORT

CBA has a dedicated JobKeeper line in its call centers. They have also launched an

online application form for small businesses seeking to borrow funds in advance of

receiving the government payment

Existing customers who hold an eligible business transaction account, overdraft, business line of creditTo access this support:

You’ll need be able to evidence that you’ve registered for the JobKeeper payment

CBA will give you access to these funds where you have selected your CBA account as the payment source for the ATO to deposit the JobKeeper payment


ANZ

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NEW LOANS AVAILABLE

New three-year business loan of up to $250,000, with a six-month deferral on repayments; or

New six-month business overdraft of up to $250,000, with a six-month deferral of interest. At the end of the six months, you will have the option of fully repaying the overdraft or rolling the balance into a term loan for up to 2.5 years

Customers who are small and medium-sized businesses with a turnover of less than $50 million can applyThe loan must be used to support your current and upcoming business cash flow needs only (including working capital, liquidity and operating expenditure)The loan cannot be used to refinance drawn facilities with us or another lenderAvailable for new borrowing only, which must be unconditionally approved by 30 September 2020

REDUCED RATESDecrease variable interest small business loan rates in Australia by 25 basis points, effective from 27 March 2020 All


All impacted customers can request a six-month payment deferral on loan repayments for term loans, with interest capitalized. Initiative updated on 30/3/20 to include loan facilities up to $10m. On a case-by-case basis, ANZ may provide an extension to existing loan repayment deferrals of up to four months.


INCREASING OVERDRAFT FACILITIES

Making available temporary increases in overdraft facilities for 12 months



ANZ

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JOBKEEPER SUPPORTANZ has created a dedicated hotline and is prioritising business customers eligible for Job Keeper payments. ANZ will help bridge the gap until JobKeeper payments are received

Businesses eligible for JobKeeper


WESTPAC / ST GEORGE

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NEW LOANS AVAILABLEUnsecured three-year term loan up to $250,000 for eligible new and existing customers with turnover of less than $50M

Small business customers who have unsecured loans up to $250,000 relating to COVID-19

BUSINESS CREDIT CARD RELIEF

Eligible customers can defer repayments for business credit cards including Altitude Business and BusinessChoice, for 6 months. Eligible customers will also receive an interest rate reduction to 9.46% per annum on new and outstanding purchases and cash balances during the deferred repayment period

Business connections impacted by COVID-19:with total business exposure of less than $10 million per customer group; where the business is operated in Australia with less than 20% foreign ownership; and for those customer's above $3 million total business exposure, with current facilities that have not been in arrears in the last 90 days.

DEFERRING LOAN PAYMENTS

Repayment relief for small business customers: Westpac and St George small

business customers who need help to manage their cash flow can defer principal

and interest repayments of business term loans for up to six months.

Customers that need additional support at the expiry of their business loan

repayment deferral period can apply to extend their repayment deferral

period by up to four months. Extension of the deferral period is subject to

eligibility criteria and further credit assessment.

Business connections impacted by COVID-19:with total business exposure of less than $10 million per customer group; where the business is operated in Australia with less than 20% foreign ownership; and for those customer's above $3 million total business exposure, with current facilities that have not been in arrears in the last 90 days.


WESTPAC / ST GEORGE

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JOBKEEPER SUPPORT

Launched customer helpline for businesses impacted by COVID-19 who are waiting

for Federal Government JobKeeper payments to come through in May. Funding

support is also available for eligible businesses via exiting and new overdraft

facilities.

Meet the ATO JobKeeper eligibility criteria;Confirm that your business has enrolled for the JobKeeper Payment Scheme;Declare that the amount requested is aligned to the funds needed to pay the wages and salaries of your eligible employees;Hold an existing Westpac account in the same name as the Business registered under the JobKeeper Payment scheme. This must be the same account that the JobKeeper payments are paid into; andBe able to provide evidence of recent payroll payments for the last two months


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FEDERAL GOVERNMENT STIMULUS OVERVIEW

FEDERAL GOVERNMENT STIMULUS OVERVIEW

15

• The Australian Federal Government has taken a number of steps including:

• A ‘JobKeeper’ program

• A guarantee of 50 per cent to SME lenders for new unsecured loans to

be used for working capital

• Payments to small to medium sized businesses

• Apprentice and trainee subsidies

• Relaxation of some directors' duties regarding trading while insolvent

• Instant asset write-off increases

• Accelerate depreciation measures

• The following slides are intended to be an indicative guide as to policy actions

taken by the Federal Government. As details are still emerging and government

policies are quickly evolving, please confirm the details of each initiative with the

relevant government agency.

FEDERAL GOVERNMENT

16

PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government

Job Keeper Extension

Summary

The JobKeeper Payment, which was originally due to run until 27 September 2020, will now continue to be available to eligible businesses

(including the self-employed) until 28 March 2021. In addition, from 3 August 2020 the relevant date of employment will move from 1 March to

1 July 2020, increasing employee eligibility for the existing scheme.

The payment rate will be reduced from the current rate in two steps. Payments will reduce from 28 September 2020 and again on 4 January

2021. From 28 September 2020, the rates that apply for those who worked fewer than 20 hours per week will be lower.

In order to be eligible for the JobKeeper Payment from 28 September 2020, businesses will have to meet a further decline in turnover test for

each of the two periods of extension, as well as meeting the other existing eligibility requirements for the JobKeeper Payment.

Company eligibility

In order to be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, businesses and not-for-profits

will need to demonstrate that their actual GST turnover has fallen in the September quarter 2020 relative to a comparable period (generally

the corresponding quarter in 2019).

In order to be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, businesses will need to

demonstrate that their actual GST turnover has fallen in the December quarter 2020 relative to a comparable period (generally the

corresponding quarters in 2019).

FEDERAL GOVERNMENT

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Job Keeper Extension

Company eligibility (cont’d)

To be eligible for JobKeeper Payments under the extension, businesses will need to demonstrate that they have experienced the following

decline in turnover (which remains the same as existing rules):

• 50 per cent for those with an aggregated turnover of more than $1 billion;

• 30 per cent for those with an aggregated turnover of $1 billion or less

The JobKeeper Payment will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests

that apply during the relevant JobKeeper Payment period.

The Commissioner of Taxation will have discretion to set out alternative tests that would establish eligibility in specific circumstances where it

is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019, in line with the Commissioner’s

existing discretion.

As the deadline to lodge a BAS for the September quarter or month is in late October, and the December quarter (or month) BAS deadline is in

late January for monthly lodgers or late February for quarterly lodgers, businesses and not-for-profits will need to assess their eligibility for

JobKeeper in advance of the BAS deadline in order to meet the wage condition (which requires them to pay their eligible employees in advance

of receiving the JobKeeper payment in arrears from the ATO). The Commissioner of Taxation will have discretion to extend the time an entity

has to pay employees in order to meet the wage condition, so that entities have time to first confirm their eligibility for the JobKeeper

Payment.

FEDERAL GOVERNMENT

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Job Keeper Payment

Employee eligibility

The eligibility rules for employees remain unchanged. This means you are eligible if you:

• are currently employed by an eligible employer (including if you were stood down or re-

hired)

• were for the eligible employer (or another entity in their wholly-owned group) either:

– a full-time, part-time or fixed-term employee at 1 July 2020; or

– a long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 and not a permanent

employee of any other employer.

• were aged 18 years or older at 1 July 2020 (if you were 16 or 17 you can also qualify for fortnights before 11 May 2020, and continue to

qualify after that if you are independent or not undertaking full time study).

• were either:

– an Australian resident (within the meaning of the Social Security Act 1991); or

– an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at

1 March 2020.

• were not in receipt of any of these payments during the JobKeeper fortnight:

– government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010; or

– a payment in accordance with Australian worker compensation law for an individual's total incapacity for work.

Only one employer can claim the JobKeeper Payment in respect of an employee.

FEDERAL GOVERNMENT

19


JobKeeper Payment

Employee eligibility (cont’d)

The self-employed will be eligible to receive the JobKeeper Payment where they meet the relevant turnover test, and are not a permanent

employee of another employer.

Employees will continue to receive the JobKeeper Payment through their employer during the period of the extension if they and their

employer are eligible and their employer is claiming the JobKeeper Payment.

The JobKeeper payment rates

From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:

• $1,200 per fortnight for all eligible employees who were working in the business for 20 hours or more a week on average in the four weeks of

pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 20

hours or more per week on average; and

• $750 per fortnight for other eligible employees and business participants

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:

• $1,000 per fortnight for all eligible employees who were working in the business for 20 hours or more a week on average in the four weeks of

pay periods before either 1 March 2020 or 1 July 2020, and for business participants who were actively engaged in the business for 20 hours or

more per week on average; and

• $650 per fortnight for other eligible employees and business participants.

Businesses will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants).

FEDERAL GOVERNMENT

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Job Keeper Payment

Implications for those accessing services through Services Australia (Job Seeker allowance, for example)

In circumstances where an employee is accessing support though Services Australia because they have been stood down or had their hours

reduced and the employer will be eligible for the JobKeeper Payment, the employee will need to advise Services Australia of their new income

Application and reporting

Employers must elect to participate in the scheme. They will need to make an application to the Australian Taxation Office (ATO) and provide

supporting information demonstrating a downturn in their business. In addition, employers must report the number of eligible employees

employed by the business on a monthly basis

FEDERAL GOVERNMENT

21

INITIATIVE DETAIL ELIGIBILITY* TIMING HOW

RENT RELIEF On 7 April 2020, the Federal Government announced a mandatory Code of Conduct on SME commercial leasing principles during COVID-19

The key elements of the code are:

Rent is reduced in proportion to the reduction in the tenant’s turnover

Rent relief may be provided through both rental waivers and deferrals on the condition that at least 50 percent is in the form of a waiver and any deferral is recovered over the term of the lease, or at least 12 months if the lease is shorter than 12 months

Landlords must not terminate leases due to non-payment of rent during the COVID-19 pandemic period

Tenants must remain committed to the terms of their lease, subject to any amendments to their rental agreement negotiated under this Code

(This is a non-exhaustive list of code principles)

Applies to all tenancies that are suffering financial stress or hardship as a result of the coronavirus crisis as defined by their eligibility for the Federal Government’s JobKeeper payment, with an annual turnover of up to $50 million

The $50 million annual turnover threshold will be applied in respect of franchises at the franchisee level, and in respect of retail corporate groups at the group level (rather than at the individual retail outlet level)

The Parties to this Code concur that during the COVID-19 pandemic period, the principles of this Code should nevertheless apply in spirit to all leasing arrangements for affected businesses, having fair regard to the size and financial structure of those businesses

This Code comes into effect in all states and territories from a date following 3 April 2020 to be defined by each jurisdiction, for the period during which the Commonwealth JobKeeper program remains operational

The arrangements agreed to by the landlord and tenant will be subject to a binding mediation process and mandatory code of conduct overseen by state and territory governments

The Code will be given effect through relevant state and territory legislation or regulation as appropriate. The Code is not intended to supersede suchlegislation, but aims to complement it during the COVID-19 crisis period

Code:https://www.pm.gov.au/sites/default/files/files/national-cabinet-mandatory-code-ofconduct-sme-commercial-leasing-principles.pdf

*PLEASE NOTE: For full initiative details and to confirm eligibility criteria and timing, please contact the Federal Government

FEDERAL GOVERNMENT

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BOOSTING CASH FLOW FOR EMPLOYERS -INITIAL PAYMENT

The Government is providing up to $100,000 to eligible small and medium sized businesses that employ people, with a minimum payment of $20,000, over two tranches

Under the enhanced scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld up to $50,000 and a minimum of $10,000, for each tranche. The second tranche is referred to below as an ‘additional payment’

Small and medium sized business entities with aggregated annual turnover under $50 million and that employ workers. Eligibility will generally be based on prior year turnover

The payments will only be available to active eligible employers established prior to 12 March 2020

The payment will be delivered by the ATO as an automatic credit in the activity statement system from 28 April 2020 upon employers lodging eligible upcoming activity statements. Where this places the entity in a refund position, the ATO will deliver the refund within 14 days

Refer Table A on next slide

Via the lodgment of the BAS statement in accordance with normal timetable and process

BOOSTING CASH FLOW FOR EMPLOYERS –ADDITIONAL PAYMENT

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

To qualify for the additional payment, the entity must continue to be active

The additional payment will be applied to a limited number of activity statement lodgments

The ATO will deliver the payment as a credit to the entity upon lodgment of their activity statements

Where this places the entity in a refund position, the ATO will deliver the refund within 14 days

Refer to Table B on next slide

Via the lodgment of the BAS statement in accordance with normal timetable and process


FEDERAL GOVERNMENT

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TABLE A

TABLE B

TYPE OF LODGER ELIGIBLE PERIOD LODGMENT DUE DATE

QUARTERLYQuarter 3 (January, February and March 2020) 28 April 2020

Quarter 4 (April, May and June 2020) 28 July 2020

MONTHLY

March 2020 21 April 2020

April 2020 21 May 2020

May 2020 21 June 2020

June 2020 21 July 2020

TYPE OF LODGER ELIGIBLE PERIOD LODGMENT DUE DATE

QUARTERLYQuarter 4 (April, May and June 2020) 28 July 2020

Quarter 1 (July, August and September 2020) 28 October 2020

MONTHLY

June 2020 21 July 2020

July 2020 21 August 2020

August 2020 21 September 2020

September 2020 21 October 2020

FEDERAL GOVERNMENT

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SUPPORTING APPRENTICES AND TRAINEES – SMALL BUSINESS

Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020.

Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer.

Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).

Refer next slide for a program update.

The subsidy will be available to small businesses employing fewer than 20 full-time employees who retain an apprentice or trainee.

The apprentice or trainee must have been in training with a small business as at 1 March 2020.Employers of any size and Group Training Organisations that re-engage an eligible out-of-trade apprentice or trainee will be eligible for the subsidy.

Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian Apprenticeship Support Network (AASN) provider.

Employers can register for the subsidy from early-April 2020. Final claims for payment must be lodged by 31 December 2020.

Further information is available at:

www.dese.gov.au

www.australianapprenticeships.gov.au

For further information on how to apply for the subsidy, including information on eligibility, contact an Australian Apprenticeship Support Network (AASN) provider.

Visit the Australian Apprenticeships website.


FEDERAL GOVERNMENT

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SUPPORTING APPRENTICES AND TRAINEES – SMALL AND MEDIUM BUSINESS

The Government is extending and expanding the Supporting Apprentices and Trainees wage subsidy.

From 1 July 2020, the subsidy will Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 July 2020 to 31 March 2021, up to a cap of $7,000 per quarter.

Available to support small and medium businesses with fewer than 200 employees, including those using a Group Training Organisation, who retain an Australian Apprentice engaged as at 1 July 2020.

Employers of any size including Group Training Organisations that re engage an eligible out of trade apprentice or trainee will also be eligible for the subsidy.

From 1 July 2020 to 31 March 2021

Visit the Australian Apprenticeships website.


FEDERAL GOVERNMENT

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INITIATIVE DETAIL ELIGIBILITY TIMING HOW

TEMPORARY RELIEF FOR FINANCIALLY DISTRESSED BUSINESSES

To make sure that companies have confidence to continue to trade through the Coronavirus health crisis with the aim of returning to viability when the crisis has passed, directors will be temporarily relieved of their duty to prevent insolvent trading with respect to any debts incurred in the ordinary course of the company’s business. This will relieve the director of personal liability that would otherwise be associated with the insolvent trading. It will apply for six months.

Acts of dishonesty and fraud will still be subject to criminal penalties. Any debts incurred by the company will still be payable by the company

Additionally, the government announced a temporary increase in the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive; andThere is a temporary increase in the threshold for a creditor to initiate bankruptcy proceedings, an increase in the time period for debtors to respond to a bankruptcy notice, and an extended period of protection a debtor receives after making a declaration of intention to present a debtor’s petition

Consider obtaining legal advice if any of these may apply to you.

Company directors25 March to 24 September 2020

No action necessary


FEDERAL GOVERNMENT

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INCREASING THE INSTANT ASSET WRITE-OFF

The Government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020

Annual turnover of below $500m

This initiative applies from 12 March 2020 until 31 December 2020, for new or second handassets first used or installed ready for use in this timeframe

Deduction claimed through annual tax return process

BACKING BUSINESS INVESTMENT

Acceleration of depreciation deductions

Deduction of 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost

Details of eligible assets can be found at https://www.business.gov.au/

Businesses with aggregated turnover below $500 million

Applies to eligible assets acquired after announcement and first used or installed by 30 June 2021

Deduction claimed through annual tax return process

QUICK AND EFFICIENT ACCESS TO CREDIT FOR SMALL BUSINESS

The Government is providing an exemption from responsible lending obligations for lenders providing credit to existing small business customers

This exemption is for six months, and applies to any credit for business purposes, including new credit, credit limit increases and credit variations and restructures

Small businessesFor 6 months from announcement

No action necessary


FEDERAL GOVERNMENT

28


GUARANTEE OF UNSECURED LOANS – PHASEONE

The Government will provide a guarantee of 50 per cent to SME lenders for new unsecured loans to be used for working capital.

The Government will provide eligible lenders with a guarantee for loans with the following terms: (1) Maximum total size of loans of $250,000 per borrower; (2) The loans will be up to three years, with an initial six month repayment suspension; (3) The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan

Loans will be subject to lenders’ credit assessment processes with the expectation that lenders will look through the cycle to sensibly take into account the uncertainty of the current economic conditions

SMEs with a turnover of up to $50 million may be eligible to receive these loans

The scheme will commence by early April 2020 and be available for new loans made by participating lenders until 30 September 2020

Application through direct contact with the lending institution

GUARANTEE OF UNSECURED LOANS – PHASETWO

Key October 1 changes to the SME Loan Guarantee include:• Loans can be for a wider range of investment, beyond working capital• Secured lending now permitted (excludes commercial or residential property)• Maximum loan size increased to $1 million (from $250,000 per borrower)• Maximum loan term now five years (from three years)• Lenders can now offer a repayment deferral period

SMEs with a turnover of up to $50 million may be eligible to receive these loans

From 1 October 2020

Application through direct contact with the lending institution


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STATE GOVERNMENT STIMULUS OVERVIEW

OVERVIEW

30

• State and territory governments have announced a range of measures, which in some states and territories include:

• Payroll tax measures

• Loan facilities

• Business support/consulting services

• Fiscal support funds for affected industries

• Programs for displaced workers

• Land tax relief

• Waiving of certain government fees and charges

• Apprenticeship and youth employment support

• The following slides are intended to be an indicative guide as to policy actions taken as at 23 March 2020. As details are still

emerging and government policies are quickly evolving, please confirm the details of each initiative with the relevant

government agency

VICTORIAN GOVERNMENT

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BUSINESS HOTLINE

Businesses across the state can now access information on dealing with COVID-19 by calling the Business Victoria hotline on 13 22 15

Operators calling the hotline will be able to get information about support services, including those available through Business Victoria, which offers mentoring to help operators develop business continuity and recovery plans

The hotline will provide the latest information on the response to COVID-19 and how this affects businesses, including how to access financial support available through the national stimulus package

All Now Call 13 22 15

BUSINESS SUPPORT FUND

The Business Support Fund has been expanded to provide more than 80,000 eligible businesses in all areas under Stage 3 restrictions with a new $5,000 grant

Metropolitan Melbourne or Mitchell Shire businesses, be a participant in the Commonwealth Government’s JobKeeper Payment scheme, employ people, be registered with WorkSafe on 30 June 2020 and have an annual payroll of less than $3 million in 2019-20

Applications for the fund close on 19 August 2020

https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-package/business-support-fund

*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Victorian Government


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PAYROLL TAX REFUNDS

The Government will provide full payroll tax refunds for the 2019-20

financial year

This assistance is a refund, not a loan

Small and medium-sized businesses with payroll of less than $3 million in Victoria

Payments will start flowing from 27 March 2020

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

PAYROLL TAX DEFERRAL

Eligible businesses can defer their liabilities for the first half of the 2020-21 financial year

Small and medium-sized businesses with payroll of less than $10 million in Victoria

Until 1 January 2021

PAYROLL TAX EXEMPTION ON ADDITIONAL JOBKEEPER PAYMENTS

Any additional payments made to bridge the gap between an employee’s normal wage and the $1500 per fortnight required to qualify for JobKeeper payments are exempt from payroll tax:

For employees who have come to an agreement with their employer to be stood down and not perform any work, the full $1500 paid to them is exempt from payroll tax

For employees paid less than $1500 per fortnight, the payroll tax exemption applies to the difference between their wage and the $1500

All businesses registered for payroll tax that make additional payments to employees as part of the JobKeeper program are eligible

Inclusion on next lodgment.Businesses that have already lodged their monthly returns for April 2020 and included additional payments in their estimated taxable wages can make adjustments as part of their payroll tax annual reconciliation in July 2020

Existing process



33


WORKING FOR VICTORIA FUND

$500 million ‘Working for Victoria Fund’ aimed at Government employment opportunities, job-matching, retraining, hardship support

The fund will help workers who have lost their jobs find new opportunities, including work cleaning public infrastructure or delivering food – providing vital contributions to our state’s response to the pandemic and affording those Victorians security when it’s needed most

Displaced workersYet to be determined

https://www.business.vic.gov.au/disputes-disasters-and-succession-planning/illness-and-business-management-plan/coronavirus-business-support

LAND TAX DEFERRAL

2020 land tax payments will be deferred

Land owners that have at least one taxable non-residential property and total taxable landholdings below $1 million

Can be deferred until after 1 January 2021 and will need to be paid in full by 31 March 2021

Automatic, the SRO will contact all eligible taxpayers



34


LAND TAX REDUCTION

Eligible landlords will receive a 25% reduction on the property’s 2020 land tax

Landlords who provide tenants impacted by coronavirus with rent relief consistent with the principles of the Support to Landlords and Tenants package, or who are unable to secure a tenant because of coronavirus.

Landlords must also provide a declaration from their tenant that the tenant meets these conditions:They have an annual aggregated turnover of up to $50 million, andthey are eligible for, and participating in, the Australian Government’s JobKeeper Payment.

2020 period

More information on the principles of the Support to Landlords and Tenants package for commercial leases on the Small Business Commissioner website

PROMPT INVOICE PAYMENT

Commitment to pay State Government

invoices within 5 daysAll Within 5 days


NEW SOUTH WALES GOVERNMENT

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PAYROLL TAX REDUCTION

Payroll tax customers whose total grouped Australian wages for the 2019/20 financial year are no more than $10 million will have their annual tax liability reduced by 25% when they lodge their annual reconciliation.

Payrolls up to $10m Australia wide

Applicable to full financial year

Lodge annual reconciliation by 28 July 2020


Any outstanding liability for the 2019/20 financial year and the monthly payments for the July, August and September periods will be deferred until October 2020

All businessesAnnounced May 2020

Payment due in October 2020

FASTER PAYMENTS TO BUSINESS

Fast-tracking the payment of suppliers and contractors to help businesses maintain their cash flow

All current suppliers ImmediatelyNormal payment process

*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the New South Wales Government


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CHANGES TO LONG SERVICE LEAVE RULES

Waiving the one month notice period for taking leave

Greater flexibility for employees to take this leave in shorter blocks

No change to eligibility of Long Service Leave

Immediate and for another six months

By mutual agreement between employer and employee

PAYROLL TAX THRESHOLDINCREASE

Raising of the payroll threshold limit to $1 million (Australia wide) in 2020-21. The current threshold is $900,000

Businesses with payroll of less than $1,000,000

Financial year commencing 1 July 2020

Existing lodgment requirements apply



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GRANT

Eligible businesses can apply for recovery grants of $500 to $3000.

This grant helps small businesses get back to business by meeting the costs of safely reopening or upscaling operations, for example:

Making fit-out changesProviding staff training and counsellingCovering advertising and communications expensesPurchasing cleaning products or services.

Fewer than 20 Full Time Equivalent (FTE) staff (including non-employing businesses, such as sole traders) as at 1 March 2020

Apply before 16 August 2020

https://www.service.nsw.gov.au/transaction/apply-small-business-covid-19-recovery-grant


QUEENSLAND GOVERNMENT

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LOAN FACILITY

Concessional loans of up to $250,000 with an initial 12 month interest free period for businesses to retain staff

Loans may be used to help meet a business’ working capital expenses such as paying employee wages, sundry creditors, rent and rates and other eligible carry-on expenses

• $1 billion loan scheme• Maximum loan up to $250,000• No repayments or interest charged for the first year• Plus two years interest only• 2.5 % fixed interest rate• 10-year term of loan

Sole traders, partnerships, private and public companies and Trusts that have been financially affected by COVID-19

Must have operated the business or non-profit organisation since 1 July 2017

Applicants must also:

Be considered viable under normal business conditions

Be able to service the loan under normal business conditions

Intend to continue operations after receiving the loan

Intend to use any surplus liquid reserves or normal credit sources up to normal credit limits, in conjunction with the loan to continue operations

Applications are now closed

*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Queensland Government


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PAYROLL TAX EXEMPTION ON JOBKEEPER PAYMENTS

Payroll tax assessments do not include JobKeeper payments

JobKeeper recipients Effective immediatelyJobKeeperpayments are not included on return


Defer all payroll tax payments for the rest of 2020

Large businesses with a payroll over $6.5m in Queensland that are directly or indirectly affected by COVID-19

Effective immediately

Must be applied for via business.qld.gov.au website

PAYROLL TAX REFUND

A two-month refund of payroll tax(January and February 2020)

Large businesses with a payroll over $6.5m in Queensland that are directly or indirectly affected by COVID-19

Applications for payroll tax refunds closed on 31 May 2020




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PAYROLL TAX REFUND

A two month refund of payroll tax (November and December 2019)

All small and medium sized business with a payroll up to $6.5m in Queensland

Applications closed on 31 May 2020


PAYROLL TAX HOLIDAY

A three month payroll tax holiday(January to March 2020)


Applications closed on 31 May 2020


PAYROLL TAX DEFERAL

Defer all payroll tax payments for the rest of 2020






41


UTILITY COST RELIEF

A $500 rebate on electricity bills

All Queensland small and medium sized businesses that consume less than 100,000 kilowatt hours


Refund on next bill

Automatically applied to electricity bill


WESTERN AUSTRALIAN GOVERNMENT

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PAYROLL TAX REBATE

A one-off grant of $17,500 to assist businesses to manage the impacts of COVID-19

Payroll tax paying businesses with a payroll between $1 million and $4 million Australia wide

For a group of employers, a single grant will be payable to the designated group employer

Grants will automatically be paid by cheque from July but there will be delays for taxpayers whose tax status changed in 2018-19 or who became liable for payroll tax during the 2018-19 or 2019-20 assessment year

You do not need to apply for the grant

PAYROLL TAX WAIVER

Payroll tax waived for a four-month period

Small-to-medium sized businesses with Australia-wide annual wages of less than $7.5 million in 2019-20.Replaces the payroll tax deferral already announced for particular small-to-medium sized businesses

Between March 1, 2020 to June 30, 2020

Process differs between businesses with payrolls less than $5 million and those between $5 million and $7.5 million. Refer:https://www.wa.gov.au/government/multi-step-guides/payroll-tax-employer-guide/covid-19-relief-payroll-tax-employer-guide

*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Western Australian Government


43


PAYROLL TAX EXEMPTION ON SUBSIDISED JOBKEEPERPAYMENTS

Wages paid by employers that are subsidised by the Australian Government’s JobKeeper Payment are exempt from payroll tax. The exemption does not apply to any part of wages that are not subsidised

Recipients of JobKeeper subsidy Currently availableExisting lodgment process



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PAYROLL TAX THRESHOLD INCREASE BROUGHT FORWARD

$1 million payroll tax threshold brought forward by six months to 1 July 2020

Businesses with payroll less than $1m

From 1 July 2020

ELECTRICITY BILL SUPPORT

One-off $2,500 credit available

Synergy and Horizon Power customers that consume less than 50 megawatt hours (MWh) per annum

For customers as of 1 March, and allocated from May 1

Allocated from May 1, 2020 to reduce current and future electricity bills

PAYMENT ARRANGEMENTS AND WAIVED LATE FEES

Interest-free payment arrangements available and late payment penalties to be waived for payroll tax, transfer duty, landholder duty, vehicle licence duty or land tax.

Businesses impacted by COVID-19

Currently availableContact relevant WA government department



PAYROLL TAX WAIVER

Six month payroll tax waiver

Business groups with annual Australian wages of up to $4 million

Eligible business groups will not be required to pay any payroll tax in the months of April to September 2020

Monthly payroll tax returns must still be lodged to capture wages for the month

Waiver of payroll tax for the six months will be finalised as part of the Annual Reconciliation processes

An online application form will be made available for businesses that were not liable for payroll tax in 2018-19.

SOUTH AUSTRALIAN GOVERNMENT

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*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the South Australian Government



Six month payroll tax deferral

Business groups with annual Australian wages of over $4 million, that can demonstrate they have been significantly impacted by COVID-19

Defer payroll tax payments for the six months from April to September 2020. For these eligible businesses, payroll tax payments that were due to be paid from April to September will now be due in October 2020

Via online application,Monthly payroll tax returns must still be lodged

EMERGENCY CASH GRANT

Small businesses that employ South Australians who have been highly impacted by the COVID-19 pandemic may be eligible to receive a $10,000 grant to support the operation of their business.

Have annual turnover more than $75,000Annual payroll less than $1.5 million, and not be entitled to a payroll tax waiverHave an ABN and operating on 1 March 2020.Highly impacted by COVID-19 Use the funds to support activities related to the operation of the business.Not eligible if part of a group receiving other payroll tax relief.Other requirements apply

Apply by 1 June 2020.

Register your interest on the SA Treasury website


46



PAYROLL TAX EXEMPT ON JOBKEEPER

Payroll tax on JobKeeper payments will be exempt from payroll tax

JobKeeper recipientsReturns must still be lodged

LAND TAX DEFERRAL

Businesses can defer payment of their remaining 2019-20 land tax payments for six months

Businesses paying land tax quarterly in 2019-20

Administration as per normal schedule

Businesses and individuals will be sent their land tax notices of assessment as usual, with information provided on how the deferral will be administered

No application process will be required


47



LAND TAX REFORM TRANSITION FUND

The previously announced land tax reform transitional relief fund available to eligible taxpayers whose land tax bill will increase as a result of the changes in aggregation of land commencing from 1 July 2020 will be increased from 50% to 100% of the increase in an eligible taxpayer’s 2020-21 land tax assessment

As per original announcement, and subject to the existing criteria

From 1 July 2020As per original announcement

JOB ACCELERATOR

The Government is relaxing the existing Job Accelerator Grant ( JAG) criteria requiring an employer to have maintained their overall employment levels for a full year to be eligible for their second anniversary JAG payment

Claims 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 two year anniversary date

As per existing JAG timetable

Refer:https://www.revenuesa.sa.gov.au/grants-and-concessions/jobacceleratorgrantscheme/more-information


48



SKILLS FOR BUSINESS SCHEME

Offers small businesses up to $5000 for every new apprentice or trainee hired in SA on a paid training contract, as well as advice on how to address a business’ skills and training needs and access subsidies

The Skills for Business package is now offering businesses across South Australia extra support to continue skills training, with the following support options available:

Group Training Boost – making it easier to employ an apprentice with up to $5200 off the charge out rate when you host a new apprentice or trainee through your Group Training Organisation (GTO)

Equipped for Growth - up to $5000 small business boost when you hire an apprentice

Equipped for Work – up to $1500 reimbursed for equipment and services when you hire an apprentice. A funding increase from $1000 to $1500 is available until 31 July 2020

Equipped for Training – a Travel and Accommodation Allowance contributing to the cost for your apprentice’s off-the job training

Small and medium sized business entities and NFPs with aggregated annual turnover under $50 million and that employ workers will be eligible. Eligibility will generally be based on prior year turnover

The payments will only be available to active eligible employers established prior to 12 March 2020

The additional funding support is available for a limited time and will apply to new paid training contracts signed by 31 August 2020

https://www.skills.sa.gov.au/business/financial-support-to-hire-an-apprentice


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TASMANIAN GOVERNMENT

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PAYROLL TAX WAIVER

Non hospitality, tourism, seafood and export small to medium businesses with an annual payroll of up to $5 million in Australian wages will be able to apply based on the immediate impact of the virus on their businesses to waive their payroll tax payments for the entire financial year of 2019-20

Australian Wages (or Australian Group Wages if part of a group) must be $5 million or less; and

One of the following three points must apply:1. you are not grouped and only pay wages in Tasmania; or2. you are not grouped and the Tasmanian portion of your wages will be 50 per cent or more ofyour total Australian Wages; or3. you are grouped and the Tasmanian portion of the Australian Group Wages will be 50 per centor more of the group’s Australian Group Wages

Approved applicants (who demonstrate that their business is affected byCoronavirus) will not be required to lodge payroll tax returns for March, April and May 2020

Refer:https://www.sro.tas.gov.au/Documents/Coronavirus-payroll-tax-waiver-2019-20-wages-less-than-$5-million-guideline.pdf

*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the Tasmanian Government

https://www.sro.tas.gov.au/Documents/Coronavirus-payroll-tax-waiver-2019-20-wages-less-than-$5-million-guideline.pdf


51


PAYROLL TAX ON JOBKEEPER

JobKeeper wages will not attract Payroll Tax and should not be included in relevant monthly returns.

This applies to both Tasmanian and Interstate wages (and for all members of a group where relevant)

A. Employees with wages higher than the JobKeeper WagesWhere an employee receives a higher fortnightly wage than the JobKeeper Wages, tax must be paidon the amount of the wage that exceeds the JobKeeper Wages. Payroll tax is not payable on theportion of the wage that is the JobKeeper Wages.

B. Employees with usual wages lower than the JobKeeper WagesWhere an employee usually receives a fortnightly wage lower than the JobKeeper Wages, and is nowpaid an amount equivalent to the JobKeeper Wages, payroll tax is not payable on the full amount oftheir $1 500 fortnightly wage

C. Employees who have been stood downWhere an employee usually receives a higher fortnightly wage than the JobKeeper Wages but now is only paid the amount equivalent to the JobKeeper Wages, tax is not payable on the full amount oftheir $1 500 fortnightly wage.

Businesses receiving JobKeeper

Current

Applicable wages should not be included in the payroll tax return



52


PROMPT INVOICE PAYMENT

Unless otherwise required by contractual arrangements, the normal terms of trade for payments by government agencies will be reduced from 30 days to 14 days

AllPaid within 14 days

YOUTH EMPLOYMENT PAYROLL TAX REBATE

The Government will introduce a youth employment payroll tax rebate scheme for young people from 1 April 2020 to 31 December 2020.

Rebate of one year from the date the youth employee commenced employment

Businesses that employ a young person under 24 years old

Further details:https://www.sro.tas.gov.au/Documents/Coronavirus-payroll-tax-rebate-scheme-2019-20-for-apprentices-trainees-and-youth-employees-guideline.pdf

REGISTRATIONFREEZE FOR LIGHT AND HEAVY VEHICLES

Small businesses looking to suspend activity due to the COVID-19 business downturn and trading restrictions can apply to the Registrar of Motor Vehicles to freeze their business vehicle registrations for both light and heavy vehicles. Registrations can be reactivated at no cost to them when the business restarts.

For businesses that has been significantly impacted by measures taken to manage COVID-19, causing suspension or cessation of business activities.

The maximum period that a registration can be frozen is 12 months

www.transport.tas.gov.au/registration/registration_business_support_package


https://www.sro.tas.gov.au/Documents/Coronavirus-payroll-tax-rebate-scheme-2019-20-for-apprentices-trainees-and-youth-employees-guideline.pdf


53


LAND TAX WAIVERLand Tax will be waived for commercial property for the 2020-21 financial year

The business owner is liable for the land tax and can demonstrate that their business operations have been affected by COVID-19

The State Revenue Office will publish more details in due course

The State Revenue Office will publish more details in due course


AUSTRALIAN CAPITAL TERRITORY GOVERNMENT

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BUSINESS ADVICE AND SUPPORT SERVICE

The service supports small businesses to address the impact of recent events on their business and provide one-on-one business management advice. Business owners can receive up to four hours of fully subsidised, face to face tailored advice and access online business development resources

Small businesses Open now

Make a booking with this service by calling 6297 3121

PAYROLL TAX EXEMPTION OF JOGKEEPER PAYMENTS

Businesses are exempt from any payroll tax on wages subsidised by the Commonwealth JobKeeper payment scheme from 30 March 2020

Jobkeeper recipients


All ACT businesses with Group Australia-wide wages of up to $10 million can defer their 2020-21 payroll tax, interest free until 1 July 2022

$2m-$10m payroll (already exempt under $2m) Australia Wide

Eligible businesses will need to lodge their payroll tax returns as normal but will not be required to make the associated payment at the usual time

https://www.revenue.act.gov.au/

FIXED CHARGE FOR COMMERCIAL PROPERTY RATES

A rebate on the fixed charge for 2019-20 on commercial rates for properties with an AUV below $2 million will be provided, which particularly targets businesses who own their own premises

Commercial rate payers will receive a credit of $2,622 (equivalent to the annual fixed charge) to their 2019-20 general rates, in quarter four. This will be applied automatically

Commercial property owners with an Average Unimproved Value below $2 million on their property are eligible for a rebate on their commercial rates fixed charge

Automatic

*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the ACT Government

AUSTRALIAN CAPITAL TERRITORY GOVERNMENT

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COMMERCIAL GENERAL RATES RELIEF

Deferral of issuing 2019-20 Quarter 4 rates notice by 4 weeks.

Deferral of issuing 2020-21 Quarter 1,2 and 3 rates notice by up to 3 weeks

All commercial property rate payers

Application to open soon. Payment will be due a month after issue of notices

Apply via the ACT Revenue Office Website

*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the ACT Government

NORTHERN TERRITORY GOVERNMENT

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OPERATIONALSUPPORT PAYMENT

Covering three fortnightly payments over a six week period, the number of FTE employees will be used as evidence of business activity and a nominal value of $1,000 per FTE will be paid per fortnight, up to a maximum of $15,000 per payment

Businesses with annual turnover greater than $75,000 and who have received previous payments under a NT scheme will be able to supply additional information on a fortnightly basis to enable these payments

Application now open

Businesses can complete an application form on business.nt.gov.au/recoveryBusiness will provide a certified financial/payroll statement identifying number of employees pre-shutdown

REBOUND SUPPORT GRANT

A grant for new activities that adapt or rebound the business to operate effectively in the new economic environment.

Grants include an unmatched portion worth up to $5,000 depending on business size and an additional matched contribution of up to $10,000. The maximum grant available ranges between $10,000 and $15,000 in total

Businesses approved for the Small Business Survival Fund and / or the Business Hardship Register, with annual turnover between $75,000 and $10 million will be able to access the grant once, providing quotes for up to five different activities

Application now open.

Further information:https://businessrecovery.nt.gov.au/businesses/small-business-survival-fund

*PLEASE NOTE: For full initiative details and to confirm eligibility criteria, please contact the NT Government

https://businessrecovery.nt.gov.au/businesses/small-business-survival-fund


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PAYROLL TAX EXEMPTIONON JOBKEEPER PAYMENTS

Employers receiving the Australian Government’s JobKeeper payments for employees working in the Northern Territory will not have to pay payroll tax on those payments

Recipients of JobKeeper

UTILITY COST REDUCTION

Reduce power, water and sewerage bills by 50 per cent for businesses for six months (for regulated utility tariffs)

Businesses that demonstrate substantial hardship due to the coronavirus crisis

For six months from 1 April, and businesses can apply from 1 May



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RATES RELIEFRelief for six months through a three-month rates waiver, followed by a three-month rates deferral

To be confirmed by local councilsTo be confirmed by local councils

Encouraged by NT Government but ultimately up to local councils to determine

PAYROLL TAX WAIVER

Waive payroll tax for 6 months

Employers with a total payroll below $7.5 million where turnover has been reduced by at least 30 due to coronavirus crisis.


Register on the DTBI Business Hardship Register


Defer payroll tax for 6 months

Employers with a total payroll above $7.5 million where turnover has been reduced by at least 50 per cent due to coronavirus crisis



BUSINESS HARDSHIP PACKAGE

Financial relief from charges by government, local councils and some utility providers.

Terms and conditions are currently being developed and further details will be made available in the coming days

Businesses with less than $50 million turnover who have experienced a reduction of turnover of more than 30%

Applications will open on 1 May 2020



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