From changes to how clubs can operate in the current environment to the longer-term financial implications, the COVID-19 impact on sport at all levels will be significant.
Below is some information that can help clubs to navigate some of the uncertainty and access crucial government support and assistance.
Annual General Meetings and Governance Issues
The current social-distancing measures, as well as the closure of many potential venues, may cause a significant impact on the format and facilitation of upcoming Annual General Meetings for our affiliated clubs. Please take a look at our fact sheet on conducting AGMs during this time.
Government support and assistance (summary)
The Government is providing up to $100,000 to eligible small and medium-sized businesses, and not-for-profits (NFPs) that employ people, with a minimum payment of $20,000.
An additional payment is also being introduced in the July – October 2020 period. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments they have received. This means that eligible entities will receive at least $20,000 up to a total of $100,000 under both payments.
On 12 March 2020, the Australian Taxation Office (ATO) announced a series of administrative concessions to assist businesses impacted by COVID-19, which include:
- deferring by up to 4 months the payment of tax amounts due through the BAS (including PAYG instalments), income tax assessments, FBT assessments and excise by affected businesses;
- allowing affected businesses on a quarterly reporting cycle to opt into monthly GST reporting to get quicker access to any GST refunds;
- allowing affected businesses to vary PAYG instalment amounts to zero for the April 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;
- remitting any interest and penalties, incurred by affected businesses on or after 23 January 2020, that have been applied to tax liabilities; and
- allowing affected businesses to enter into low-interest payment plans for their existing and ongoing tax liabilities.
The ATO assistance is not automatic, taxpayers must first contact the ATO to request assistance, and if eligible, the ATO will ‘tailor the assistance package for the relevant taxpayer.
To assist businesses (including sole traders) experiencing financial difficulty as a result of COVID-19, the Australian Taxation Office is implementing relief options, that include additional support for or changes to:
- Payment deferrals
- Monthly GST credits
- PAYG instalments
- Remitting interest and penalties
- Low-interest payment plans
- Super guarantee payments
- Supporting your wellbeing
The ACT Government is delivering a $137 million economic survival package to support the ACT community through the public health emergency caused by the COVID-19 pandemic. These measures include:
- $2,622 credit to commercial rates bill
- $750 rebate to small businesses through their next electricity bill
- Businesses that pay up to $10m in wages will be able to defer payroll tax for 12 months
- Affected industries will receive a one-off six-month waiver on payroll tax
- Food and liquor licence fees waived
- $20m fund for simple infrastructure works on public buildings
- Funding for clubs to retain casual staff
Key elements of the NSW COVID-19 package include:
- $450 million for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the rest of 2019-20). This means these businesses will save a quarter of their annual payroll tax bill in 2019-20
- $56 million to bring forward the next round of payroll tax cuts by raising the threshold limit to $1 million in 2020-21
- $80 million to waive a range of fees and charges for small businesses including bars, cafes, restaurants and tradies
- $250 million to employ additional cleaners of public infrastructure such as transport assets, schools and other public buildings
- more than $250 million to bring forward maintenance on public assets including social housing and crown land fencing
- $500 million to bring forward capital works and maintenance.
Source: Australian Sailing
The NSWIS / Office of Sport has also compiled a useful summary of support available to the sporting sector.