These are very interesting times we live in, to say the least. The Federal and State Governments are trying hard to do what they can to uphold the economy and to enable small business to be able to restart operations as soon as possible after the Coronavirus has run its course.
In an attempt to assist our business clients to be up to date with all opportunities for funding, we have prepared a summary of the situation as it stands today. With new announcements every other day, this may change at any time but as of today this is the funding available.
1 If you have employed people during the last quarter & paid PAYG on their behalf you are immediately entitled to the Coronavirus stimulus funding. Attached is an information sheet “COVID-19 Australian Government Economic Response” giving a run down of the way it works. You do not need to apply. It is built into the lodgement of your BAS. This is a minimum payment of $10,000 and a maximum of $50,000 for PAYG withheld for those who were active at 12 March 2020. The payment will be credited to the BAS and if any credit is left then it will be paid by the ATO when the BAS is lodged after 28 April 2020. This will occur again for the June BAS. Slightly different payment methods apply if you lodge your BAS monthly.
2 The second funding by the Federal Government is the JobKeeper Payment. This is for any business whose Gross income has dropped by at least 30% on the same time last year. Attached are both the employee & employer information sheets. The concept is for the employer to continue to keep employees on the books and pay a wage of $1,500 per fortnight so the employee does not have to go on any Centrelink payments. In May 2020 the ATO will reimburse these wages to the employer, backdated, and continue to reimburse for up to 6 months if necessary to enable us all to get through this difficult time. This payment is also extended to self-employed persons; for those who can show they are affected by the COVID-19 pandemic. You will need to register on the ATO website to be eligible for this payment so if you need our assistance please let us know.
3 Depreciation concessions have been extended from $30,000 up to $150,000 immediate write off (expires 30 June 2020) so this is an opportunity for investment if this is helpful.
4 If you employ apprentices or trainees then the Government will pay 50% of the wages for a period.
5 Bank Loans- the Government has teamed with the Banks to provide loans with a 6 month repayment holiday. You should discuss this with your Bank to see how they will support you and your business during this period.
6 Superannuation- if your income has dropped as a result of the Coronavirus outbreak, you can access up to $10,000 of your balance this financial year and next financial year. You should discuss this option with your Super Fund.
Your business also may be entitled to some of the bushfire grant/loans with the NSW Government if you are in certain local government areas including the Shoalhaven.
1 A new $10,000 Small Business Bushfire Support grant that covers income loss due to the bushfires is now available.
It is for small businesses that:
• have experienced a revenue drop of 40% or more over a three-month period, compared to the same period in the previous year, as a result of the bushfires
• are located in specified fire-affected Local Government Areas
The application process has been designed to be as simple as possible. It does not require you to upload documents as evidence.
To start the application process, please follow the link below.
There is also a $50,000 loan interest free for the first 2 years (Unsecured) or $500,000 with a home which may be worth applying for.
2 Small business, not-for-profit organisations and primary producers loan
Concessional loans of up to $500,000 are available for eligible small businesses and not-for-profit organisations.
There are 2 types of loans available, and each loan has a 2-year interest-free and repayment-free period:
• the Bushfire Working Capital Loan of up to $50,000 over 5 years
• the Bushfire Recovery Loan of up to $500,000 over 10 years.
Visit the Rural Assistance Authority to check your eligibility and apply.
As always we are most keen to help wherever necessary. Please let us know if you need any assistance with any of these funding opportunities or any other accounting needs.
Please stay safe and practice social distancing.
Resources for Business and Individuals
Australian Government’s Economic Response to COVID-19
Jobkeeper Payment – Information for Employers
Jobkeeper Payment – Information for Employees