WA Stimulus Package

The West Australian Government has announced an economic stimulus package to stave off the impacts of the coronavirus outbreak.

Household Fees & Charges

A freeze will be placed on household fees and charges, including electricity, water, motor vehicle charges, the emergency services levy and public transport fares, so that there will be no increase in the fee and charges amounts until at least 1 July 2021.

Energy Assistance Package

The Energy Assistance Package (EAP) in 2020-21 will provide additional support to vulnerable Western Australians by increasing the payment from $300 to $600 for eligible concession card-holders.

Payroll Tax

Businesses paying payroll tax with a payroll between $1 million and $4 million will receive a one-off grant of $17,500. For a group of employers, a single grant will be payable to the designated group employer.

You do not need to apply for the grant. Grants will automatically be paid by cheque from July but there will be delays for taxpayers whose tax status changed in 2018-19 or who became liable for payroll tax during the 2018-19 or 2019-20 assessment year. Eligible taxpayers should log in to Revenue Online to ensure their postal address is correct.

The payroll tax threshold was previously lifted from $850,000 to $950,000, with an increase to $1 million scheduled for January 2021. This will now happen six months earlier, on 1 July 2020. This will result in approximately an additional 300 businesses no longer being liable for payroll tax. The threshold increase will be reflected in Revenue Online when it comes into effect.

Application for a deferral up to 21 July 2020 is available for monthly payroll tax payments for employers who pay $7.5 million or less in Australian taxable wages and have been directly or indirectly impacted by COVID-19, compared to normal operating conditions.

Application for deferral can be done using the following form and submitted through a web enquiry:

https://www.wa.gov.au/government/publications/application-defer-payroll-tax-covid-19

Public Sector Leave

If you work in WA’s public sector, you will benefit from the introduction of 20 days paid COVID-19 leave.

The paid leave will also be extended to casual workers.

The leave will be available for workers who:

• Have contracted the virus themselves
• Need to self-isolate because of the virus
• Need to care for family due to school or childcare closures, or
• Are otherwise unable to attend work due to the virus

This is a special leave entitlement available in addition to regular sick leave.

• Twitter
• Facebook

Get the Government to go Guarantor on your Child’s First Home Loan

The First Home Loan Deposit Scheme is designed to assist eligible first home buyers to access the housing market sooner. The Scheme received royal assent on 18 October 2019, however, applications for the scheme are not yet open, as the government has just completed consultation with lenders, the public and APRA as to potential participation and capital requirement for First Home Loan Deposit Scheme mortgages.

The Scheme will enable the National Housing Finance and Investment Corporation (NHFIC) to provide a limited guarantee to allow first home buyers to purchase a home with a minimum deposit of 5 per cent of the property purchase price. The guarantee on eligible loans will be equal to the difference between the deposit (of at least 5 per cent) and 20 per cent of the property purchase price, with coverage broadly consistent with a parental guarantee.

The Deposit Scheme is proposed to commence from 1 January 2020.

The Scheme will include income tests for first home buyer eligibility, modest dwelling price limits and an annual cap of 10,000 guarantees issued.

An individual will be eligible if:

1. the applicant is a first home buyer; and
2. the applicant satisfies an income test

Where there are multiple applicants for a single loan, each applicant must satisfy all eligibility criteria

A loan is eligible if:

1. it is for the purchase of residential property or the construction of a dwelling on vacant land that forms part of the borrower’s residential property;
2. the residential property or dwelling will be owner-occupied;
3. the purchase price of the property is less than the price cap that applies in the area where the property is located;
4. the loan-to-value ratio of the loan at origination is between 80 and 95 per cent; and
5. it requires regular repayments of the principal

If you would like you would like more information on the scheme please contact one of our accountants or go to the National Housing Finance and Investment Corporation (NHFIC) website at  https://www.nhfic.gov.au/what-we-do/fhlds/.

• Twitter
• Facebook