The Australian Federation of Travel Agents (AFTA) welcomes the $17.6 billion Coronavirus (COVID-19) support package released by the Federal Government and will be releasing a ‘how to’ guide for travel businesses.
The Travel Business: How to access the Stimulus Package is designed to support members and the broader industry to understand the simple steps to access support where eligible.
“AFTA is pleased the Federal Government is making a solid commitment to sustaining the Australian economy in the wake of the COVID-19 outbreak”, AFTA Chief Executive Jayson Westbury said.
AFTA said in a statement that “COVID-19 has brought many challenges to the travel industry and as it seems the worst is right before us.”
“We are acutely aware of just how bad the current trading conditions are and assure members and the broader travel industry that they remain confident that an end is in sight.”
AFTA is working behind the scenes daily with government at both federal and state levels to ensure that the travel industry is not forgotten.
“Small business ‘lives and dies’ on cashflow, and this is particularly acute in travel agencies at this time with low to no bookings, and refunds flowing out the door. AFTA will drive the guidance process to help support agencies across the country to understand how they can access the funds being made available and if this is not enough, will stand ready to take it up with the Prime Minister directly,” Jayson Westbury added.
Specific measures in place that may help assist AFTA members include:
- Increasing the instant asset write-off threshold from $30,000 to $150,000, effective immediately until 30 June 2020. This will also be expanded to include businesses with aggregated annual turnover of less than $500 million (up from $50 million). Travel business suggestions and a guide to be released next week.
- Boosting cash-flow for employers by providing up to $25,000 back to small and medium-sized businesses, with a minimum payment of $2,000 for eligible businesses. This payment will be tax free. This is a GRANT, you will not have to pay it back. Travel business examples and a guide will be released next week.
- Supporting small business to retain their apprentices and trainees, by applying for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain a trainee, the subsidy will be available to a new employer that employs a trainee.
- The government grants will be issued automatically, based on business activity statements or instalment activity statements from 28 April 2020.
All ATAS accredited travel agency businesses are being encouraged to get in touch with the Australian Taxation Office (ATO) who can tailor a support plan for businesses needs and circumstances around the relief options. The ATO Emergency Support Infoline number is 1800 806 218.
Some options available from the ATO to assist travel agency businesses impacted by COVID-19 include:
- Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, and fringe benefits tax assessments.
- Allowing businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds entitlements.
- Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the April 2020 quarter. Businesses that do vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
- Remitting any interest and penalties, incurred on or after 23 January 2020 that have been applied to 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.
