Economic Stimulus Round Two - the focus on small, medium and micro businesses
The good news in amongst all the Coronavirus uncertainty is that the Federal Government is making solid moves to sure up the economy.
In the latest economic stimulus package there are more benefits for all areas of the economy. Here we focus on small, medium and micro businesses.
Make sure you know what you’re eligible for.
By ATB Partners.
Building on it’s first economic stimulus package announced last week, the Federal Government has now announced a second range of initiatives to keep the economy as buoyant as possible during this unprecedented time of crisis.
At the moment, here at ATB we’re working through the finer details of the package so that we can assist all of our clients to access what they are entitled to.
We are still waiting on more information from the government with regard to how to access these entitlements and what documentation may be required to prove eligibility. But for now, the news is excellent for small and medium businesses, and also sole traders, with a range of sensible measures that will go a long way towards helping the critical SME and mico-business sector survive the months ahead.
Here’s a high-level summary of what’s been announced in the past 24 hours
Cash Flow boost for Employers
Minimum payment $20,000 and up to $100,000 available to eligible small and medium sized businesses, and not‑for-profits (including charities) that employ people, to help cash flow.
Financial assistance with wages
Employers will receive a payment equal to 100 per cent of their salary and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000. The payment will be available from 28 April 2020. Small and medium business entities with aggregated annual turnover under $50 million and that employ workers are eligible. NFPs entities, including charities, with aggregated annual turnover under $50 million and that employ workers will now also be eligible.
Coronavirus SME Guarantee Scheme
Under the Scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs.
Temporary relief for financially distressed businesses
The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.
The package also includes temporary relief for directors from any personal liability for trading while insolvent.
The Corporations Act 2001 will be amended to provide temporary and targeted relief for companies to deal with unforeseen events that arise as a result of the Coronavirus.
Sole Traders
Impacted sole traders and the self-employed will be able to access the jobseeker payment and the coronavirus supplement.
Access to superannuation
Individuals “in financial stress” as a result of the coronavirus downturn will be able to have limited access to their superannuation savings, up to $10,000,
For more detail, click here: Coronavirus economic stimulus package – 23 March 2020.
Don't go it alone
There’s some complexity in the detail, and we’re here to help.
Don’t forget our team can work from anywhere, at any time. We’re available to answer questions, help you understand what you’re eligible for, and take you through the process of applying for government assistance, so contact us.
Don’t forget to download our FREE Business Contingency Planning toolkit if you haven’t already done so.
Read More Blogs