SME Recovery Loan Scheme
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:
- Lenders can offer borrowers a repayment holiday of up to 12 months.
- Borrowers can access up to $5 million per ABN.
- Loans are for terms of up to 10 years.
- Loans can be either unsecured or secured (excluding residential property).
Learn more about the NAB Business Recovery Loan.
Temporary full expensing
You may be able to claim a tax deduction for the full cost of eligible depreciating business equipment or vehicles if you:
- first held, and first used or installed, the equipment or vehicles between 7 October 2020 and 30 June 2022
- have a business with an aggregated turnover of less than $5 billion
- only claim the portion of the asset you use for business.
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.
Supporting apprentices and trainees
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.
Support for exporting businesses
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.