Support for the Sporting Sector
Current: 27 April 2020
The NSW sporting sector is made up of many diverse organisations with different organisational structures; membership bases and sizes; geographic reach, organisational health maturity and financial health.
For many sporting and recreation organisations, COVID-19 is having a direct financial impact on your operations.
This resource provided by the NSW Office of Sport has been developed to provide guidance on the resources and initiatives available to sport sector organisations and will be updated regularly.
NSW Government Economic Support
On 12 March 2020, the NSW Government announced the $2.3 billion Health and Economic Stimulus package to help to support jobs, businesses and the vulnerable in the face of the COVID-19 outbreak over the next six months. On 27 March 2020, the NSW Government further supplemented this with additional measures under the Health and Economic Stimulus Package 2.
Key measures include:
Deferral of payroll tax for business with payrolls over $10 million for six months (up to $4 billion deferred). Businesses with payrolls of $10 million or less received a three-month waiver on payroll tax in the first package. These businesses will now get an additional three-month deferral as well
deferral of rents for six months for commercial and not-for-profit tenants with less than 20 employees in all Government properties
creation of a $1 billion Working for NSW fund to sustain business, create new jobs and retain employees
On 3 April 2020, the NSW Government grants of up to $10,000 to support small businesses across NSW struggling to cope with the COVID-19 shutdown.
To be eligible, businesses will need to:
Have between 1-19 employees and a turnover of more than $75,000;
A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;
Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
Be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020;
Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
Provide appropriate documentation upon application.
Applications for a small business grant of up to $10,000 will be available through Service NSW within a fortnight and remain open until 1 June 2020.
Further Information is Available HERE
Australian Government Economic and Health Support
As part of the Australian Government’s economic response to the COVID-19, the Australian Government has announced a number of stimulus packages designed to support jobs and the economy:
On March 22, a combined $189 billion economic stimulus package which includes grants of up to $100,000 to eligible small and medium sized businesses, and not for-profits (including charities) that employ people, with a minimum payment of $20,000 was announced. The package includes $17.6 billion from the Government’s first economic stimulus package, $90 billion from the Reserve Bank of Australia and $15 billion from the Government to deliver easier access to finance, and $66.1 billion.
On 30 March, $130 billion will be made available as part of the JobKeeper payment. The payment is designed to help keep more Australians in jobs and support businesses and organisations affected by the economic impact caused by the Coronavirus.
Stimulus package measures to support individuals include income support, temporary early release of superannuation and a temporary reduction in superannuation minimum drawdown requirements.
For businesses and organisations, there is:
a fortnightly payment of $1,500 per eligible employee to subsidise their wage to help businesses and organisations paying their employees
up to $100,000 to eligible small and medium sized businesses, and not for-profits (including charities) that employ people, with a minimum payment of $20,000
and changes and support measures from the Australian Taxation Office
On 29 March, the Australian Government announced another $1.1 billion funding package designed to protect against the widespread impact of the coronavirus pandemic. Australians will not incur any out-of-pocket costs for consults done over the phone or on video with health professionals like GPs, psychologists and psychiatrists. Key points include:
The bulk of the package will go to expanding Medicare subsidies for telehealth services
Money will also be committed to mental health services and counselling services for families caught up in, or at risk of, domestic violence
SUPPORT TO INDIVIDUALS AND HOUSEHOLDS:
1) Income Support
If you are in the category of lower-income Australians (pensioners, other social security and veteran income support recipients and eligible concession card holders), you may be eligible to income support up to $550 a fortnight for Individuals or a one off payment of $750 for households.
2) Temporary Early Release of Superannuation
If you are unemployed, receiving jobseeker payments or after 1 January 2020 were made redundant, working hours reduced by 20% or more, a sole trader experiencing a reduction on turnover of 20% or more or if your sole trading business is suspended, you may be eligible for early access to superannuation ($10,000 limit now, additional $10,000 after 1st July 2020).
3) Temporary Reduction in Superannuation Minimum Drawdown Requirements
If you are a retiree with a superannuation account-based pension, the minimum drawdown rates have been reduced by 50% to reduce the need to sell investment assets to fund minimum drawdown requirements.
SUPPORT TO BUSINESSES:
1) Boosting Cash Flow for Employers
Not-for-profit organisations, sole traders, partnerships, companies or trusts that has held an ABN on 12 March 2020, turnover of less than $50 million and have made withholding payments (BAS & IAS), you may be eligible for two tax-free cash flow boost of a minimum $10,000 up to $50,000 (credit amount will be equal to wages PAYGW, or if PAYGW is nil – min $10,000). The payment will be delivered by the ATO as an automatic credit in the activity statement system from 28 April 2020 upon employers lodging eligible upcoming activity statements. The second payment will be introduced in July – October 2020.
2) Supporting Apprentices and Trainees
Small businesses employing fewer than 20 full-time employees, who retain an apprentice or trainee as at 1 March 2020 may be eligible for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020, up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).
3) Increasing the Instant Asset Write-Off
The instant asset write off threshold has been increased from $30,000.00 to $150,000.00 for all businesses with a turnover less than $500 million.
4) Backing Business Investment
Businesses with aggregated turnover below $500 million, purchasing certain new depreciable assets after announcement and first used or installed by 30 June 2021, may be eligible for a deduction of 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
SUPPORT FROM THE AUSTRALIAN TAXATION OFFICE:
1) Extended Payment Due Dates
Deferring by up to six months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise.
2) Convert Quarterly Reporting to Monthly
Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to.
3) Vary PAYG Instalments and Claim Back Instalments Paid
Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
4) Remission of Interest and Penalties
Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.
5) Support for Ongoing Tax Liabilities
Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
SUPPORTING FLOW OF CREDIT
1) Coronavirus SME Guarantee Scheme
Small and medium sized businesses with a turnover of up to $50 million will be eligible to receive a maximum loan of $250,000.00 to be used as working capital, for up to three years, with an initial six month repayment holiday, in the form of unsecured finance (meaning that borrowers will not have to provide an asset as security for the loan). This will commence by early April 2020 and be available for new loans made by participating lenders until 30 September 2020.