William Buck – July Update

Startup Vic Industry Partners William Buck have collated information and updates regarding JobKeeper, available Government stimulus and Federal Government Economic and Fiscal developments.

JobKeeper Payments

Recently, Prime Minister Scott Morrison announced that the Job Keeper Payment will be extended to 28 March 2021. From 28 September 2020 the $1500 wage subsidy will be reduced to:$1200 per fortnight full-time workers – those that work above 20 hours per week; and $750 per fortnight part-time workers – those that work less than 20 hours per week.And then further reduced from 4 January 2021. There are also changes to the eligibility assessments.

Read more about the changes to JobKeeper Payment at our COVID-19 resource hub.

At this stage this is just an announcement and we expect more detail on how the changes will be implemented in the coming months, we will update you as soon as we have this information.

Victorian Government Grants

On 10 July 2020 the Victorian Government announced additional grants to support Victorian business continuing to face challenges in the current environment. These initiatives include;

  • Business Support Fund: This Fund was established to support businesses in metropolitan Melbourne and the Mitchell Shire through the renewed stage 3 restrictions, making available a grant of up to $5,000 for eligible businesses. This is in addition to any other previous Victorian grants/relief received.
  • CBD Business Support Fund: A $20 million CBD Business Support fund to assist small businesses operating in Melbourne’s CBD.
  • Regional Tourism Accommodation Support Program: A $40 million capped fund to help regional tourism businesses cover the costs of refunds due to the return of stage-3 restrictions

For further details on these grants, as well as other Victorian Government measures can be found at our Victorian COVID-19 updates page.

Home Office Deductions

As the work from home order continues in Victoria the need to understand what you can claim as a home office deduction grows. Our Working From Home Fact Sheet can be used as a guide by you and your employees to understand what deductions are available, and the records needed in order to claim a deduction.

Federal Government Economic and Fiscal Update

Treasurer Josh Frydenberg and Senator and Finance Minister Mathias Cormann yesterday announced some unsurprising numbers as part of an Economic and Fiscal Update ahead of the Federal Budget, to be handed down on 6 October 2020.

These include:

• An $85.8 billion deficit in the 2019-20 financial year financial year
• An expected $184.5 billion deficit in 2020-21
• Gross debt expected to increase to $851.9 billion by the end the 2020-21 financial year

In addition, the COVID-19 SME Guarantee Scheme will be extended until 30 June 2021, albeit with targeted amendments. Also, the Government has announced an extension for individuals accessing their superannuation early – the application period has been extended from 24 September to 31 December 2020.

Meanwhile, on Tuesday 21 July, the Government announced that the JobKeeper Payment Scheme would be extended to 28 March 2021. While there will be changes to eligibility for the Scheme and the payment amounts, these will only apply from 28 September 2020. This means that those businesses currently eligible for the JobKeeper Payment Scheme will remain eligible until the first phase ends on 27 September 2020.

William Buck Are Here For You!

While the impact of COVID-19 is being felt in Australia and across the world, we’re well placed to help you through this challenging time. We’ve supported our clients and community through times of change for over 125 years. COVID-19 represents another seismic change; one we’re ready to tackle head on. With a history of evolution, William Buck continues to grow and adapt to provide the best advice and services we can to our clients in the middle market.

Our team are ‘all in.’ They’re working tirelessly to support clients through this time and to bring you the latest news and advice. Should you need any additional support, please contact your advisor.