What’s still up for grabs

Businesses that act fast can take advantage of valuable financial support

JobKeeper

There’s good and bad news here. On the plus side, it is still available until March 28, 2021 at the rate of $1000 a fortnight for fulltime employees and $650 for employees working less than 20 hours a week. If your business has been receiving JobKeeper, you should continue to be eligible as long as turnover remains down by 30% and you complete monthly declarations.

JobMaker

February 2021 heralds the start of JobMaker payments to businesses that take on new employees subject to certain conditions.

JobMaker is worth $200 a week for each new employee aged below 30, or $100 weekly for new hires aged 30-35, for a maximum period of 12 months from their employment start date. Employers cannot claim both JobKeeper and JobMaker.

Apprentice/trainee wage subsides

If you take on a new apprentice or trainee and your business could be eligible to receive 50% of their wage. The subsidy is limited to a maximum of $7000 a quarter up to September 30, 2021.

Loss carrybacks

Talk to your tax adviser about taking advantage of the new initiative to carry-back tax losses made in the 2020 to 2022 financial years, potentially giving your business a refund of tax previously paid. Carryback losses can be claimed when you lodge your 2020-21 and 2021-22 business tax returns, or you can choose to continue carrying losses forward to offset against future profits.

Instant asset write-off

Invest in new assets such as plant and machinery, IT equipment or even an office refit and the tax office will wear the cost, up to $150,000, until June 30, 2022.

If you’re thinking of buying a new car for the business, the maximum instant

claim is $59,136 for the 2020-21 financial year if you select a passenger vehicle designed to carry less than one tonne and fewer than nine passengers.

Fringe benefits tax exemptions

From April 1, 2021 the 47% fringe benefits tax (FBT) will no longer apply to SMEs that provide employees with car parking and a variety of work-related devices such as mobile phones and laptops.

In addition, an FBT exemption for certain staff retraining costs has been in place since October 2020. It’s designed to encourage employers to help workers transition to new employment opportunities within or outside their business.

State support

The states have their own Covid-driven grants. Here’s a sample of what’s available:

Queensland: At the time of writing, small businesses in regional Queensland (excluding the south-east) were able to apply for the Small Business Covid-19 Adaption Grant worth between $2000 and $10,000.

NSW: If your business is currently exporting or was exporting before the impacts of Covid-19, bushfires and/or drought, you could be eligible for the Export Assistance Grant.

ACT: An assistance package includes cost savings for a variety of industries. Food businesses, for example, can apply for waivers of business registration, outdoor dining and liquor licensing fees, rebates on electricity fees and payroll tax deferrals.

Victoria: The Small Business Digital Adaptation Program lets businesses trial and receive access to digital products, tools and training to build digital capability.

Tasmania: Small businesses can receive a grant of $750 for the cost of professional advice on recovery from the pandemic.

South Australia: Round two of the Small Business Grants program provides businesses that have been significantly affected by Covid-19 with funding of up to $10,000 to help them survive.

Western Australia: The Apprenticeship and Traineeship Re-engagement Incentive provides a one-off payment to businesses that employ an apprentice or trainee whose training contract was terminated or cancelled by a previous employer on or after March 1, 2020.

Northern Territory: The Business Hardship Package provides relief from a variety of government and council charges.