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.
- Business 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.
- 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.