Australian Immigration Daily News

In my capacity as Founder of Migration Alliance, in collaboration with Ken Phillips, Executive Director of Self Employed Australia (SEA), we provide the following summary to our RMA members:

This summary aims to assist Migration Alliance members and supporters understand the key Coronavirus emergency assistance available through the Federal government, and more.  SEA have collated this from official government sources and checked with our government contacts.

The assistance support is available for self-employed, small business migration agents who:

• Are sole traders and don’t employ anyone
• Employ people

And covers (details and links below):

1. Access to social security payments 

2. Cash flow subsidies 

3. Accessing superannuation 

4. Apprenticeship subsidies

5. Deferred payments on existing loans

6. New government backed loans

7. New tax investments subsidies

8. Help if going broke

We also have links to:

9. State governments’ support

10. Business tips during Coronavirus 

11. Low income households 

12. Cancellations—Travel, events, etc—Scams

1. Access to Social Security Income Support

Sole traders/self-employed migration agents now have access to the social security system, specifically the Job Seeker or Youth Allowance. You can receive a $550 fortnightly Coronavirus supplement. You can earn up to $1,000 a fortnight before the payment cuts out. Assets tests and other restrictions have been removed.

This is a change from existing rules. Currently if you are running a small business as a self-employed migration agent but on low income you could not get social security. Now you can.

Examples are:

• An artist can do shows and receive a social security top up.
• An IT contractor can to do phone support work and receive a social security top up.
• A café owner will be able to still serve coffee but receive social security support

Info here.

2. Cash Flow Support Where You Have Employees (see footer**)

Tax free subsidy from $20,000 to $100,000 where you have employees.
Applies for the period March to September this year (2020)

The way it works is as follows as we understand it:

• You lodge your normal PAYG statement (monthly/quarterly)
• The ATO will apply a credit against your account up to 100% of your PAYG payments. It appears that this means you make your payment less the credit.
• Or you will receive a subsidy payment from the ATO if you have low income employees who pay no tax.

The amount you receive will depend on the size of your business.
Minimum will be $20,000. Maximum $100,000.
Info here.

3. Access to Your Superannuation

Sole traders with reduced income (20% + reduction) can access $10,000 from super this financial year and $10,000 next year.
Info here.

4. If You Have Apprentices or Trainees

50% wage subsidy on each apprentice or trainee up to $7,000 per quarter (max $21,000).
Info here.

5. Defer Loan Payments

The banks are a deferring loan repayments for 6 months for small businesses needing help.
Info here and here.

6. Government-backed Small Business Loans

The Commonwealth is supplying a 50% guarantee on new small business loans up to $250,000 for terms up to 3 years. Loans are available through your bank from 1 April 2020 for 6 months. You don’t need to provide security and will not need to make repayments for the first 6 months.
Info here. 

7. Instant Tax Asset Write-off

Any business assets you buy can be instantly written off against your tax. Now applies to purchases up to $150,000 (increased from $30,000).
Info here.

8. If You Look Like You’re Going Broke

Temporary relief from creditors' demands against you plus temporary relief for your personal liability as a director while trading insolvent.
Info here.

9. Links to Support from State Governments

Info here.

10. Business Tips During Coronavirus

Info here.

11. Low-income Households Support

Info here.

12. Cancellations—Refunds (Travel, Events, Gym etc)—Scams

The Australian Competition and Consumer Commission has provided official advice on legal obligations and rights of businesses and consumers.
Info here.

Watch out for Coronavirus scams.
Info here.

**Migration Alliance, in collaboration with Ken Phillips, Executive Director of Self Employed Australia, is awaiting advice on the following: