COVID-19 update for Small Business Owners

A small business breakdown of the government’s economic stimulus

In response to the economic impact of the coronavirus, the Australian Government has, so far, introduced two stimulus packages to assist small and medium businesses. Here’s what you need to know.

How the government stimulus might help your small business

For the many small businesses looking for all the help they can get as the global coronavirus pandemic bites, the recently announced stimulus packages could help relieve some of the pressure. Here’s an overview:

 

Cash flow help with wages:

What it is: Credits that eligible businesses will receive in
their business activity statement system

Who is eligible: Businesses with annual turnover
under $50m that employ staff

How much: $20,000 – $100,000 split over multiple payments

When: For quarterly BAS lodgers:
First credit will be applied to activity statements lodged from 28 April 2020, with a second to come 3 months later

For monthly BAS lodgers:
First credit will be applied to activity statements lodged from 21 July 2020, and then monthly for 3 months after that

Support for apprentices & trainees:

What it is: A 50% wage subsidy to help keep
apprentices and trainees employed

Who is eligible: Businesses with fewer than 20 full-time employees
and an apprentice/trainee as at 1 March 2020. Eligibility must be assessed by an Australian Apprenticeship Support Network provider.

How much: 50% apprentice/trainee wage subsidy of
up to $21,000 per apprentice or trainee

When: For wages paid between 1 January and 30 September 2020. Applications open 2 April 2020.

Income support for sole traders & the self-employed:

What it is: A ‘coronavirus supplement’ for those affected by
the economic downturn. The supplement is in
addition to other payments, such as the Jobseeker
allowance (formerly Newstart).

Who is eligible: Sole traders who’re making less than $1 ,075 a
fortnight, due to their business being suspended
or having a significant reduction in turnover
because of COVID-19

How much: $550 per fortnight

When: Payments start from 27 April 2020, but applications are open now through myGov.

 

Temporary relief from insolvency:

Insolvency demand threshold:  Was $2,000, Now $20,000.
Debtor response time: Was 21 days, Now 6 months.

 

Huge increase to instant asset write-off scheme

What it is: The ability to instantly write-off the cost of a newly purchased eligible asset, as long as the cost is under the threshold.

Who is eligible: Businesses earning less than $500 million a year

How much: The threshold has increased from $30,000 to $150,000

When: On eligible purchases made until 30 June 2020

 

Additional support

Most states and territories have also implemented
economic support measures. Check state and territory
government websites for more info.

This information is provided for general guidance only. If you need to
know more, the Federal Government has set up a dedicated COVID-19
support line. The number is 1800 806 218.

 

 

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