Bennett Partners have developed a Business Survival Plan that includes practical advice and information to help you keep your business alive during these difficult times. Download it here - BUSINESS SURVIVAL PLAN
JobKeeper payment. Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.
Boosting Cash Flow for Employers. 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.
Supporting apprentices and trainees. The Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice's or trainee's wage for 9 months from 1 January 2020 to 30 September 2020.
SME Guarantee Scheme. SMEs with a turnover of up to $50 million will be eligible to receive these loans. The Government will provide eligible lenders with a guarantee for loans with the following terms:
Maximum total size of loans of $250,000 per borrower.
The loans will be up to three years, with an initial six month repayment holiday.
The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.
Loans will be subject to lenders' credit assessment processes with the expectation that lenders will look through the cycle to sensibly take into account the uncertainty of the current economic conditions.
Temporary early release of superannuation.The Government is allowing individuals/sole traders affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Individuals will not need to pay tax on amounts released.
Instant Asset Write Off. The Government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
Backing Business Investment. The Government is introducing a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset's cost.
Temporary relief for financially distressed businesses. The government has offered a 6 month temporary relief period for businesses who have incurred debt as a result of COVID-19. This relieves business owners from the Corporations Act that would normally hold them personally liable for taking on debt without entering an insolvency procedure like voluntary administration or liquidation. This temporary relief is aimed at helping small businesses remain open so that they can quickly resume normal operations when the crisis has passed.
Stimulus Package (QLD Government)
Queensland COVID-19 Jobs Support Loans The Queensland Government announced the availability of low interest loans of up to $250,000 for carry on finance with an initial 12-month interest free period for businesses to retain employees and maintain their operations. To register please email your full name, phone number and preferred email address to firstname.lastname@example.org or Freecall 1800 623 946. QRIDA have uploaded a comprehensive FAQs page, which can be found here.
Payroll Tax Relief (QLD). If your business has been affected by the coronavirus (COVID-19), you may be eligible for one or more of a range of payroll tax relief measures. These include:
refunds of payroll tax for 2 months
a payroll tax holiday for 3 months
deferral of paying payroll tax for the 2020 calendar year.
Industry Support - Market diversification and resilience grants are available for Queensland agriculture, food and fishing exporters and their critical supply chain partners, as well as industry organisations working with exporters.
Other support options
Help from your bank? Most Australian banks have now released financial relief strategies for their customers. Contact your bank directly to find out what packages they have in place.
ATO relief. On 12 March 2020, the Australian Taxation Office (ATO) announced a series of administrative concessions to assist businesses impacted by COVID-19, which can be found on their website. 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'.
How does the Cash Flow Boost for employers work? - Sit tight, this one is managed through your upcoming activity statements. The payment will be delivered by the Australian Taxation Office (ATO) as a credit in the activity statement system from 28 April 2020 upon businesses lodging eligible activity statements.