Many businesses across the world are now facing the prospect of reduced turnover, restricted trading conditions or forced shutdowns. There are a number of measures that have been introduced to assist businesses in getting through this tough period.
The government is paying employers a minimum of $20,000 in PAYG rebates up to a maximum of $100,000. For more information read our article here.
ADDITIONAL LOAN FUNDING
The government will provide a guarantee of 50 percent to SME lenders for new unsecured loans to be used for working capital. The maximum loan size is $250,000 per borrower for a term of up to three years with a six month repayment holiday. These loans will be unsecured meaning that borrowers will not have to provide an asset as security for the loan. Loans should be available from early April. This measure will make it easier for businesses with immediate cash flow issues to obtain finance from banks. The Reserve Bank has also taken measures to reduce borrowing costs for businesses with many banks already cutting business rates by 1 to 2%.
LOAN PAYMENT DEFERRALS
Banks are offering loan payment deferrals of up to six months to assist businesses with cash flow problems caused by the Coronavirus. If you are having cash flow issues please contact your bank and see what they can do for you. A summary of what the big four bank are offerring can be found here.
The ATO is offering the following concessions:
- Payment deferrals on tax debts for of up to six months.
- Low interest payment plans.
- The ATO will consider remitting interest for all affected businesses incurred after 23 January 2020.
- The ability to revise PAYG Instalments to zero for the entire 2020 financial year (including September and December 2019) without penalty. You will still have to pay your 2020 tax liability around May 2021, but this measure helps with immediate cash flow needs.
TEMPORARY EARLY ACCESS TO SUPERANNUATION
Sole traders whose business have been suspended or had their turnover reduced by 20 percent or more are eligible to access up to $10,000 from their Super Fund before 1 July 2020 and a further $10,000 between 1 July 2020 and approximately three months after. The amount will be tax free and will not affect Centrelink eligibility.
There is not currently any measure to assist specifically with rent relief. We would suggest you contact your landlord and see what they are prepared to offer you. There may be conditions in the lease agreement that deal with what happens if you are unable to trade but most will not have considered this.
For more information on staffing please read our article here.
Dont keep your problems to yourself. We are here to help you through these troubled times to survive and prosper into the future.