24 March, 2020
Basketball Victoria Update
In light of the new Stage 1 restrictions from the State and Federal Government, Basketball Victoria’s offices in Wantirna and Bendigo were closed from 5pm Monday 23/3/2020 (yesterday).
From today there are a small number of key Basketball Victoria employees working from home to continue to assist you, while the State Basketball Centre and Bendigo office reception(s) have new voicemails directing the public to email email@example.com if they require assistance.
We will continue to communicate any important updates with you via email, our website and social media channels.
Please find below some information and updates regarding the Government’s response to the economic impact of COVID-19 and how it could affect you and/or your business.
Associations can contact Ben Pahl – GM Business Services firstname.lastname@example.org if they have specific finance questions.
Stimulus Package and Financial Assistance Information
The Commonwealth Government has released the second stage of its economic plan to cushion the economic impact of COVID-19 and help build a bridge to recovery.
A total of $189 billion is being injected into the economy by all arms of Government in order to keep Australians in work and businesses in business. The second stage economic support package includes:
Support for Businesses
Boosting cash flow for employers
The Government is enhancing the Boosting Cash Flow for Employers measure it announced on 12 March 2020. The Government is providing up to $100,000 to eligible small and medium-sized businesses, and not for-profits (NFPs) that employ people, with a minimum payment of $20,000. Small and medium-sized business entities with aggregated annual turnover under $50 million and that employ workers are eligible.
Under the enhanced scheme, employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000.
Temporary relief for financially distressed businesses
The ATO will tailor solutions for owners or directors of businesses that are currently struggling due to COVID-19, including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups.
Increasing the instant asset write-off
The Government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
Backing business investment
The Government is introducing a time limited, 15-month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the assets cost.
Supporting apprentices and trainees
The Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for 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 that employs that apprentice. Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).
Supporting the Flow of Credit
Support for immediate cash flow needs for SMEs
Under the COVID-19 SME Guarantee Scheme, the Government will provide a guarantee of 50 per cent to SME lenders to support new short-term unsecured loans to SMEs.
Quick and efficient access to credit for small business
The Government is cutting red tape by providing a temporary exemption from responsible lending obligations for lenders providing credit to existing small business customers. This reform will help small businesses get access to credit quickly and efficiently.
Supporting individuals and households
Income support for individuals
Over the next six months, the Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited COVID-19 supplement to be paid at a rate of $550 per fortnight. This will be paid to both existing and new recipients of JobSeeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit.
Payments to support households
The Government is providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders. The first payment will be made from 31 March 2020 and the second payment will be made from 13 July 2020, with approximately half of those that benefit being pensioners. This payment will help to support confidence and domestic demand in the economy. The second payment will not be made to those eligible for the COVID-19 supplement.
Temporary early release of superannuation
The Government is allowing individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
Reducing social security deeming rates
On 12 March, the Government announced a 0.5 percentage point reduction in both the upper and lower social security deeming rates. The Government will now reduce these rates by another 0.25 percentage points as of 1 May 2020.
The Victorian Government has also announced the following additional tax measures to support businesses including:
Payroll tax waived
Businesses with annual taxable wages up to $3 million will have their payroll tax for their payroll tax for the 2019-2020 financial year waived. Eligible businesses must continue to lodge returns but do not need to make further payments for this financial year.
Liquor licence fees waived
Businesses that have paid for a renewable liquor licence for 2020 will be reimbursed their licence fee and those yet to pay will have the fee waived.
Land tax deferral
Land owners due to pay 2020 land tax that have at least one non-residential property and total taxable landholdings below $1 million have the option of deferring their 2020 land tax payment until after 31 December 2020.
Basketball Victoria will continue to advocate to the State and Federal Government for financial support to enable the continuity of member associations and the Victorian basketball community during this significantly difficult period caused by the COVID-19 virus.