Stimulus Package - Small Business Government Relief

A number of businesses are suffering deeply at the hands of the failing economy due to COVID-19. This post is intended to explore and dumb down the government stimulus package which directly relates to small business with a turnover of less than $50 million.

So, what are the small business stimulus packages? Below is a listing for you:


Table of Contents

JobKeeper Payment (Wage Subsidies)

Businesses which have been effected by COVID-19 may be able to access subsidies for wages for their employees. 

What is the subsidy?

For eligible employees within your business, you will be entitled to receive a wage subsidy totaling $1,500 per fortnight per employee.

Which Businesses are Eligible?
  • Businesses with turnover of less than $1 billion who’s revenue (Sales) have fallen by 30% or more.
  • Businesses with turnover greater than $1 billion who’s revenue (Sales) have fallen by 50% or more.
This list excludes businesses whom are subject to the Major Bank Levy.
Which Employees are Eligible?

Employees in your business will be eligible if:

  • They were employed in your business on Full Time, Part Time or Casual contracts from 1 March 2019 and continued employment through to 1 March 2020.
  • They are at least 16 years old.
  • Are an Australian Citizen, or hold eligible VISA’s (see Fact Sheet attached).
  • Are not receiving a JobKeeper payment from a different Employer.
Note: short term casuals who’s contracts terminate each year, such as fruit pickers are not entitled to this. Please also refer to the VISA listing, or seek further information on this to see if you are entitled.
When will the subsidy be paid?

The eligibility for the subsidy starts 30 March 2020 but first payment won’t be made until 1 May 2020. The amounts paid will be backdated to 30 March 2020.

I'm a sole trader, am I eligible?

Yes, as long as you have been operating your sole trader business since 1 March 2019, you will be eligible to receive the subsidy personally.

I am the owner of a Company (Pty Ltd), I do not pay wages but pay myself through other means (such as dividends), will I be entitled.

Whilst there has been a lot of speculation around this as there are many family owned businesses which are not paying wages that could use a boost, it seems to have finally been thought about by the Treasury.

The answer, whilst not fully confirmed seems to be yes, you will be entitled. When you apply, you will be able to nominate the self-employed person/people and receive the subsidy.

How do I apply?

You can apply by clicking the link below:

Further Information

If you require further information on the JobKeeper Payment (Wage Subsidy), please see below:

Cashflow Boost for Employers

In the Governments second stimulus package, small businesses who employ people will be provided 100% of their tax withholding in order to help ease their Activity Statement burdens.

How does it work?

Eligible businesses that withhold salary will automatically receive the cash flow boosts via a credit to their Business Activity Statement lodgments. The minimum that a business will receive if they are eligible is $20,000 and the maximum that can be received is $100,000.

No application is necessary for these amounts to apply. The ATO will automatically provide a credit to your Business Activity Statement based on the following:

March 2020 Activity Statement

  • If the amount that you withheld from employee salaries is greater then $10,000 in the March quarter, you will receive the full amount of withholding up to $50,000.
  • If the amount that you withheld from employee salaries is less than $10,000, you will receive $10,000.
June 2020 Activity Statement

Note: If you lodge monthly, the ATO will multiply your March month by 3 in order to determine how much you should receive