It has been a devastating bushfire season that seems to never end. In response to these events, both State and Federal governments and other organisations have a raft of tax relief measures for those people and communities affected. A summary of the bushfire tax relief measures to assist small businesses and individuals with much-needed cashflow support during this difficult time are listed below:

To build on the disaster recovery grants put in place by state governments, the Federal Government will provide top-up grants to eligible small businesses and non-profit organisations under the Disaster Recovery Funding Arrangements. 

This program is uncapped and means that businesses and organisations that have sustained damage as a result of the fires can access up to $50,000 in grant funding (tax free). 

More information to come from the government, however you can visit https://www.bushfirerecovery.gov.au/recovery-assistance 

As well as extra support announced already for families and communities to help keep spending in local stores, the Federal Government wants to ensure small businesses have cashflow to run their operations.

The Federal Government will boost the value and concessions for small business loans, also on offer to farmers, primary producers and non-profit organisations, under the Disaster Recovery Funding Arrangements.

To provide maximum flexibility for eligible businesses, loans of up to $500,000 will be offered for businesses that have suffered significant asset loss or a significant loss of revenue. The loan would be for up to 10 years and used for the purposes of restoring or replacing damaged assets and for working capital.

The loans will be available with a repayment holiday of up to two years, with no interest accruing during this period. The subsequent interest rate would be set at 50 per cent of the ten-year Commonwealth government bond rate (currently around 0.6%). 

The Government will be seeking the agreement of the states to provide these loans under harmonised, consistent terms and eligibility criteria.

More information to come from the government, however you can visit https://www.bushfirerecovery.gov.au/recovery-assistanceor call 13 28 46

Affected businesses, individuals, and self-managed superannuation funds in impacted local areas will now have until 28 May 2020 to lodge and pay business activity statements and income tax returns. This has been an automatic deferral set by the ATO.

PAYG Instalments

Pending your own cashflow circumstances, eligible taxpayers can vary their 2020 PAYGI to nil and seek a refund from the September 2019 quarter’s PAYGI amount paid. It’s important to monitor your tax position and ensure you will have the funds required to pay your taxes at the end of the year, however this measure if designed to assist with your immediate cashflow needs. 

Additionally, the ATO is fast-tracking any refunds that are due to taxpayers in the impacted regions.

The ATO will also be remitting any interest and penalties applied to tax debts since the commencement of the bushfires that have been applied to accounts of individuals and businesses located in impacted regions.

For people who have had documents destroyed by the bushfires, the ATO is able to assist by reissuing documents it has on hand.

For those taxpayers in affected areas with a tax debt or outstanding obligation, the ATO will not initiate debt recovery action until at least 28 May 2020.

Taxpayers can also request payment arrangements for outstanding debts.

The ATO will also consider releasing individuals and businesses from income tax and fringe benefits tax debts if they are experiencing serious hardship.

A summary of some of the funding available to affected individuals and communities:

Red Cross Emergency Grants
If you have lost your home in a bushfire since July 2019, you can apply for an emergency grant of $10,000.

https://www.redcross.org.au/get-help/emergencies/recovering-from-emergencies/direct-assistance-contact

Disaster Recovery Allowance – Call 180 22 66 to apply 

Disaster Recovery Allowance is a short term payment to help you if a declared disaster directly affects your income. You can get it for a maximum of 13 weeks.

Disaster Recovery Allowance is a taxable payment.

https://www.humanservices.gov.au/individuals/help-emergency/bushfires

Australian Government Disaster Recovery Payment – Call 180 22 66 to apply 

The Australian Government Disaster Recovery Payment is a one-off payment to help you if a declared disaster significantly affects you. It’s not for minor damage or inconvenience.

You can choose to get this payment in 2 instalments if you prefer.

If you’re eligible you will get:

• $1,000      per adult
• $400 for      each child under 16 years of age.

https://www.humanservices.gov.au/individuals/help-emergency/bushfires

Disaster Assistance Recovery Grants

The Prime Minister announced on Tuesday 14 January that grants of up to $75,000 will be made available to farmers in bushfire-affected areas. The eligibility criteria is currently being developed by the Federal Government and more information will be posted here when available.

Australian Government Bushfire Support Package for Business - UPDATED 

The Federal Government announced on 20th January 2020 that top-up grants of up to $50,000 will be available to businesses that have lost significant assets or had a major dip in revenue. The government will deliver $3.5 million to establish the Small Business Bushfire Financial Support Line as well as to fund 10 additional financial counsellors with the ability to provide advice to around 100 small businesses a day. 

More information will be posted here as it comes to hand as stated above under Prime Ministers Office heading. 

Call Gippsland Emergency Relief (GERF) for additional payments for emergency food, displacement, emergency fixes to your house etc. All you need is your bank details. They will be able to discuss your loss of stock, equipment etc. as well. 

Call 5153 9500 and they will assist.

Emergency Relief Assistance Payments & Emergency Re-establishment Payments

Emergency financial assistance is available to eligible fire-affected community members in Ararat, Alpine, Ballarat, East Gippsland, Glenelg, Golden Plains, Indigo, Mansfield, Northern Grampians, Pyrenees, South Gippsland, Southern Grampians, Towong, Wangaratta, Wellington and Wodonga council areas.

• Relief      payments are intended to help meet immediate needs, including emergency      food, accommodation, clothing, medication and personal items.
• Payments      of up to $560 per adult and $280 per child (up to a maximum of $1960 per      eligible household).
• The      payments are designed to help eligible people experiencing personal and      extreme financial hardship due to the fires.

Call 1800 961 054

http://emergency.vic.gov.au/relief-and-recovery/934

VicRoads - Bushfire Relief Assistance - NEW

If you’ve been affected by the bushfires in one of the declared State of Disaster areas, VicRoads will provide assistance to help with your registration and licensing services.

https://www.vicroads.vic.gov.au/licences/renew-replace-or-update/bushfire-relief-assistance

Micro Grants to support local community members owning and operating a micro business
 

In a time of bushfires, the income of small business owners can be immediately impacted. The micro grant can assist with day-to-day needs.
 

If you need a micro grant, please register your interest via this link: https://www.vic.gov.au/community-recovery-package#community-recovery-committees-6-million
 

Or contact Business Victoria Phone 13 22 15

If you would like to be part of the local community committee, you can also register your interest via 

https://www.vic.gov.au/community-recovery-package#community-recovery-committees-6-million 

ANZ

ANZ’s existing financial relief package includes measures such as the ability to suspend repayments on loans for up to three months as well as temporary interest rate relief for credit card and personal loan customers in extreme financial distress.

ANZ also extended special paid leave for employees who volunteer in emergency services to ensure they are financially supported while they serve the community.

https://www.anz.com.au/about-us/sustainability/financial-hardship

Commonwealth Bank

CommBank's Emergency Assistance Package is for customers and businesses affected by bushfires, floods and storms. They have also extended their Emergency Assistance Package to all volunteer firefighters. The package includes loan restructuring and waiving of selected fees and charges.

As part of the Bank’s Emergency Assistance Package, they can discuss a range of options, including:

• Emergency      accommodation assistance for CommInsure customers whose homes have been      damaged by bushfire, flood or storms
• Expediting      claims to CommInsure for customers seeking help through their home,      contents and car insurance
• Customised      assistance for Commonwealth Bank home loan, credit card and personal loan      customers who may experience difficulties because of the bushfire, flood      or storms
• Considering      requests for additional loans including emergency credit limit increases      (subject to credit approval)
• Loan      restructuring for business customers with existing loans
• Waiving      prepayment charges for the month following the event, for affected      customers wishing to access term deposits and Commonwealth Investment      Bonds ahead of the maturity date
• Waiving      other selected fees and charges.

https://www.commbank.com.au/support/emergency-assistance-package.html?ei=customers

NAB - UPDATED

NAB customers who have lost homes this bushfire season can immediately access $2,000 grants to help cover costs such as temporary accommodation, food and clothing.

NAB employees who have had to evacuate their homes can also access a $1,000 grant.

NAB’s ongoing natural disaster financial relief measures include:

• Credit      card and personal loan relief where appropriate
• Suspending      home and personal loan repayments
• Support      to manage existing regional and agribusiness bank facilities
• Waiving      costs and charges for withdrawing term deposits early
• Waiving      home loan and personal loan application fees
• Support      to restructure other existing bank facilities
• Provision      of support and counselling by making NAB’s Employee Assistance Program      available to customers.

Additional support now available for NAB business and agribusiness customers directly impacted by bushfires includes:

• $2,000      grants to help restart or reopen and cover the cost of damaged property,      equipment, fencing – and for loss of stock or livestock
• Up to a      three-year deferral of interest and repayments for existing NAB loans      where individual circumstances warrant
• A      commitment not to foreclose upon, or force the sale of existing loans for      up to three years
• $1      billion in concessional loans to customers seeking support to restructure      existing facilities to assist in repairs, restocking and re-opening for      business
• Support      and counselling by making NAB’s Employee Assistance Program available to      customers.

https://news.nab.com.au/news_room_posts/nab-announces-1-million-disaster-relief-fund

https://news.nab.com.au/nab-pledges-5-million-support-for-bushfire-recovery-extends-grants-to-affected-businesses-and-farmers

Westpac

Westpac's Disaster Relief Packages aim to offer immediate practical help to assist customers to manage the impact of natural disasters on their finances.

Grants of up to $2,000 can be accessed to help cover temporary accommodation, food and clothing.

Westpac’s Disaster Relief Packages generally offer the following:

Home loan and insurance customers

• Affected      customers with Westpac home loans may apply to defer repayments for up to      three months
• Affected      Westpac customers with Home and Contents insurance may be eligible to      receive assistance including emergency funds and temporary accommodation.      Contact us to find out if you are eligible or to make a claim.

Business customers

• Affected      businesses with existing loans can request loan restructuring without      incurring the usual bank establishment fees
• Affected      business customers with merchant facilities are eligible to receive      assistance including monthly terminal access fee waivers for up to three      months.

Credit cards, term deposits and personal loans

• Affected      credit card customers may apply to defer repayments to their card for up      to 90 days
• Customers      wishing to purchase replacement goods may apply for a personal loan at a      discounted interest rate with no establishment fee
• Westpac      will waive interest rate adjustments for affected customers wishing to      withdraw term deposits
• Customers      experiencing severe hardship may also be offered a halt on all interest      accrual on unsecured credit products for a period of up to three months.

https://www.westpac.com.au/about-westpac/sustainability/initiatives-for-you/customers-disaster-relief
 

Contact your communications and utilities providers (e.g. Telstra, Optus, Energy Australia, Alinta Energy etc.) to see what assistance they are offering to bushfire affected customers.

Many providers are offering financial assistance packages, including bill credits or waivers to those immediately affected, as well as emergency services volunteers.

From tomorrow Monday 6 January until further notice, Telstra are making their payphone network around the country available to provide free local, national and standard mobile calls. 

They will also be allowing free use of the Telstra Air Wi-Fi network at locations where payphones are equipped to provide this.

https://exchange.telstra.com.au/free-payphones-and-hotspots/

Vodafone - NEW 

Vodafone are offering assistance in a number of ways to those affected by the bushfires, including:

• Free      mobile services for frontline volunteers
• Free      Vodafone mobile Wi-Fi option for each home lost to bushfires
• Extra      data for impacted customers and free access to emergency websites
• Bill      payment support or relief.

https://www.vodafone.com.au/about/company/bushfire-support

This grant opens 17 February 2020 and helps to re-establish connectivity in affected areas and support affected small businesses.

2,000 grants will be available through the program and will include:

• A      technology pack which includes a complimentary tablet and up to two years      Optus mobile plan and/or fixed internet service
• Making      available the dedicated tech support team based in Australia for small      businesses
• Optus to      extend its staff volunteer programme to enable its staff to support small      businesses affected by the bushfires to get back on their feet

https://www.optus.com.au/about/media-centre/bushfire-support

Contact your Insurance company to start a claims process. 

o Check current policies for coverage. 

o Collate details of losses (photographic evidence helps). 

o Engage with your insurers. 

o Seek a 2nd opinion on proposed payouts. 

· Engage with your accountant the financial impact this will have on you over the next 12 – 24 months. We are here to help.

· For insurance, government assistance and tax deduction purposes, keep records of damaged, lost or destroyed trading stock (even if sold for reduced prices), equipment and business buildings. 

· Replacement equipment costing less than $30,000 attracts a 100% tax write-off (note: this threshold will end on 30 June 2020). 

· Review purchase agreements to determine rights and obligations of both parties. 

· Speak to them. Will they accept delayed payment terms? 

· Be realistic and conservative in your estimates. 

· Specialist business turn-around advice may be a good investment. 

If you have heard of other grants available for those affected by the bushfires, please email my office and I will be happy to update my website to share with others.