Need help? Understand what the measures are and how they could help your business.
On 22 March 2020, the Federal Government announced an additional economic support package of $66b, which will give businesses cash flow assistance and help them stay open and prepare for recovery on the other side of the Coronavirus pandemic.
In short, the purpose of the Government’s package is to help people keep their jobs, and keep businesses afloat during the economic downturn.
The package is available to small and medium-sized businesses and sole-traders who need assistance to get through these challenging times.
There are some eligibility criteria you need to meet for parts of the package, and levels of assistance depend on how you’ve been affected by the economic downturn.
Here’s a basic breakdown of the package, but you should visit the Government’s website to understand what support is available to you.
On 1 April 2021, the Federal Government launched a new SME Recovery Loan Scheme that is designed to help small and medium sized enterprises (SME) that have been hit hard by coronavirus (COVID-19).
The scheme is an extension to the support already available and allows eligible businesses to access finance as JobKeeper is phased out. The scheme includes significant increases in key areas, including loan terms and loan size.
Eligible businesses will be able to use the scheme to refinance existing loans or for a range of other business purposes including maintaining and growing their business.
There are several key benefits of this scheme for eligible borrowers, including:
Learn more about the NAB Business Recovery Loan.
You may be able to claim a tax deduction for the full cost of eligible depreciating business equipment or vehicles if you:
This can include second-hand assets if your business has an aggregated turnover of less than $50 million. You may also be able to claim deductions for the cost of improvements you made to new or existing equipment or vehicles. A limit applies to the cost of passenger vehicles.
Read more about temporary full expensing or learn about the instant asset write-off.
Talk to your accountant or tax advisor to confirm if your business is eligible for temporary full expensing.
The Government is supporting small business to retain their apprentices and trainees.
Eligible employers can apply for a wage subsidy for the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020.
Read more about the wage subsidy.
The Government has increased funding for the Export Market Development Grant (EMDG), allowing exporters and tourism businesses to get additional reimbursements for costs incurred in marketing products.
The Government is helping to secure freight access for Australian agricultural and fisheries exporters. Read more about the International Freight Assistance Mechanism.
The Austrade website provides regular updates on Australia’s key export markets to help Australian businesses to overcome complex challenges related to COVID-19.
Speak to your accountant for more information on how the Government’s economic support package may benefit your business.
Coronavirus information and business support from the Government
Economic stimulus package media release
The Treasury’s economic response to Coronavirus
In addition to Federal Government support, your state or territory may provide additional support for your business. Keep up-to-date with the latest information and advice from your state or territory. Find out more about how states and territories are assisting with supporting small businesses during Coronavirus.
It’s important to stay aware of scams targeted at businesses and individuals during times like these. Remember we would never ask for your pin or account details. You should always be certain that you’re dealing with your bank or relevant government department before providing any information. Learn more about how to identify spam and phishing messages to better protect your business.
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