Coronavirus – Economic Stimulus Package

All you need to know about the Coronavirus Economic Stimulus Package

stimulus package

Stimulus Package for Small Businesses

During the past months, first bushfire, and now CONVID-19 have created a big crisis among small businesses. The Australian Government has announced measures to support business impacted by coronavirus.

Below are some major takings from the announced economic measures:

  • Instant asset write-off threshold, increasing from $30,000 to $150,000.
  • Employers with employees and withholding tax payment will receive payments-  with employers set to receive a first payment equal to 100 per cent of their salary and wages withheld, up to a maximum of $50,000,  when businesses lodge their activity statements for the 28 April and 28 July quarterly due dates. And another $50,000 in the new financial year to confront fears of widespread lay-offs. Eligible businesses that pay salary and wages will receive a minimum payment of $20,000, even if they are not required to withhold tax.
  • Government will offer SMEs up to $21,000 per apprentice $7,000 per quarter for the first three quarters of 2020.
  • Government will provide a guarantee of 50% for new unsecured loans to be used for working capital.
  1. Business with a turnover of up to $50 million will be eligible to receive these loans.
  2. The Government will provide eligible lenders with a guarantee for loans with the following terms:
  3. Maximum total size of loans of $250,000 per borrower.
  4. The loans will be up to three years, with an initial six month repayment holiday.
  5. 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.
  • Loan: Retail banks have agreed to provide small businesses a six-month break from making repayments on their loans under a coronavirus relief package.
  • Employees, who have been made redundant, or those who have their working hours reduced by 20 per cent or more or sole traders whose businesses have been suspended or see a reduction in turnover by 20 per cent or more will also now be allowed to access up to $20,000 of their superannuation.

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