In response to the heavy rain and significant flood situation occurring in NSW, there are a number of financial support programs available to businesses and individuals potentially affected by heavy rain and flooding.
Individuals
The federal government has activated the Australian Government Disaster Recovery Payment (AGDRP) and Disaster Recovery Allowance (DRA) for 34 local government areas. See the full list.
Under the AGDRP, eligible individuals who have been adversely affected by a major disaster can receive a one-off, non-means tested payment of $1,000 per adult and $400 per child.
The DRA is a short-term payment to assist individuals if a declared disaster directly affects their income. Individuals can access the DRA for a maximum of 13 weeks, with Services Australia paying the DRA from the date an individual loses income as a direct result of the NSW floods. The DRA is a taxable payment and Services Australia is able to withhold voluntary tax deductions from the payments.
Further, individuals receiving the DRA might be able to get the Beneficiary Tax Offset, which may reduce the amount of tax paid.
Individuals have until 20 September 2021 to make a claim for the AGDRP and DRA.
Business: Disaster Relief loans
The NSW government has activated its Disaster Recovery Funding Arrangement (DRFA) for the affected government areas. The DRFA program is administered by the NSW Rural Assistance Authority and includes assistance measures for individuals and families, businesses, primary producers, non-profit organisations and local and state governments.
Loans of up to $130,000 at a fixed concessional interest rate may also be available to small businesses and primary producers that have been directly impacted by a disaster. These loans may be used to meet carry-on requirements or to repair or replace damaged property not covered by insurance.
Find out more and apply: Primary Producers and Small Business.
Loans of up to $10,000 may be available for sporting and recreation clubs and associations as a contribution towards clean up, removal of debris and/or restoring essential facilities, equipment or assets damaged or destroyed by the disaster. Find out more and apply.
Loans of up to $25,000 at a fixed concessional interest rate may be provided to not-for-profit organisations for restoration of essential facilities, equipment or other assets damaged or destroyed, or temporary storage or leasing of alternate premises. Find out more and apply.
Business: Australian Taxation Office (ATO) Support
The ATO also stated that it will support businesses facing problems meeting their tax obligations due to flooding, depending on your circumstances it may:
- give extra time to pay debt or lodge tax forms such as activity statements
- help find a lost tax file number (TFN) after verifying an identity
- re-issue income tax returns, activity statements and notices of assessment
- help reconstruct lost or damaged tax records
- prioritise any refunds owed
- set up a payment plan tailored to the circumstances of a business, including an interest-free period
- remit penalties or interest charged during the time a business has been affected.
It is important to note that the ATO has indicated employers still need to meet super guarantee obligations for their employees, saying that, by law, it can’t vary the contribution due date or waive the super guarantee charge on late super guarantee payments.
Business and Individuals: support from the banks
The Australian Banking Association (ABA) announced that the major banks have a range of measures in place to assist businesses and individuals and can include items such as:
- a deferral of scheduled loan repayments
- waiving fees and charges, including break costs on early access to term deposits
- debt consolidation to help make repayments more manageable
- restructuring existing loans free of the usual establishment fees
- deferring interest payments on a case-by-case basis
- offering additional finance to help cover cash flow shortages
- deferring upcoming credit card payments
- increasing emergency credit card limits
More information
If you would like to find out if you are eligible for relief packages or to discuss your circumstances, please contact your Moore Australia advisor.