Though COVID-related restrictions in 2020 might have successfully decreased cases in Australia, business activities may have been impacted by the decision. Luckily, the Australian government passed several legislations that helped businesses through grants and tax relief measures.
Although the economy is on its way to recovery, it would still take time for it to return to pre-pandemic levels. On the other hand, some of these COVID tax relief options may soon no longer be available. For example, the JobKeeper Payment, which helped businesses continue their current employees’ payroll through government subsidies, was no longer available since 28 March 2021.
In that case, what are some government grants and COVID tax relief options that you can still claim until the end of 2021? Here are several that you can still rely on for the near future:
1. JobMaker Hiring Credit
As one of the COVID tax relief options made available in 2020, JobMaker Hiring Credit is intended to help businesses hire new employees. For this scheme specifically, JobMaker Hiring Credit would reward businesses that hire individuals from the age of 16 to 35 years old.
The amount ranges from $100 to $200 per week per person, with several additional criteria attached to the terms of employment, such as a fixed-term placement and a minimum of 20 working hours per week before employers can claim the tax credits. Businesses are still eligible to claim the JobMaker Hiring Credit for people they hired until 6 October 2021.
2. Cash-flow boost
This tax relief measure is designed for small and medium enterprises (SME) in Australia. The amount will range between $20,000 to $100,000. However, this option is only available for SMEs that employ at least one person who is not registered as a business owner.
Additionally, the cash-flow boost will only be granted for businesses that have filed a tax return on or before 12 March 2020. If you have done so, be sure to read more on the terms and conditions to see whether you are eligible to receive a tax refund.
3. Instant asset write-off
Although this COVID tax relief option used to be available for nearly all businesses, starting from 2021, only businesses with a turnover of less than $500 million are eligible for this scheme. The instant asset write-off allows businesses to get a tax deduction on new assets purchased between 6 October 2020 and 30 June 2022.
Additionally, for businesses with a turnover of less than $50 million, second-hand assets can also receive the same tax deduction as new assets. Of course, certain asset types may not be eligible for the instant asset write-off, so pay attention to the terms stated by the Australian Taxation Office.
4. Industry-specific grants
Besides COVID tax relief options, the Australian government also offers several industry-specific grants for businesses operating in industries severely impacted by COVID-19. Some of these grants, which are still available until December 2021, are:
- The Creative Economy Support Package, which includes direct grants or concessional loans provided from the government for eligible industry-specific activities.
- The Consumer Travel Support program, aimed at helping travel agents and tour arrangement service providers process refunds and credits to Australian consumers.
- Payroll tax relief, available as either a no payable payroll tax or as a refund for paid payroll tax.
- Electricity rebates, which are state-specific, for both businesses and individuals. For businesses, the rebates will impact their tax deduction. This scheme is available for small businesses until 30 June 2021.
Although we are still in the midst of the pandemic, vaccination efforts are underway, and we may go back to our everyday routines soon. Be that as it may, it would take some time for business activities to recover. In the meantime, use any government grants and tax relief that your business is still eligible for so that you can return to your normal business operations when the time comes.