Coronavirus has drastically changed the way we live, work and communicate. It is having a huge impact across the country as job uncertainty increases and many Australians are now worried about how their finances will hold out during these challenging times.
Many Australian businesses have been forced to close due to the Government’s tight restrictions to help stop the spread of the virus, resulting in staff being stood down or terminated.
During these uncertain times, it’s important to understand there are solutions available to help ease the financial strain of Coronavirus. We’re here to help provide advice and support when you need it most.
Coronavirus is having a major impact across the country, with many Australians now facing financial insecurity and stress due to job loss or decreased hours of work. We’ve put together a few tips in the video below on how to stay healthy – financially and mentally – during these uncertain times.
With the Australian Government advising Australians to stay at home, many people may be experiencing heightened feelings of isolation, loneliness or anxiety. The good news is that is that this situation is only temporary and there are ways to manage and mitigate these feelings. Here’s how:
If you’re experiencing signs of stress, anxiety or depression due to staying at home, it’s important you speak to someone for help and support. There is free assistance available:
The Australian Government has announced multiple economic stimulus packages to help support individuals and households through the pandemic.
Businesses affected by Coronavirus can access a wage subsidy for their employees. Employers will be able to claim a fortnightly JobKeeper payment of $1,500 per eligible employee for up to 6 months back dated to 1 March 2020. Those who have been stood down due to the Coronavirus pandemic will also be eligible.
You can find out more here.
Individuals on Centrelink benefits, including Job Seeker, Youth Allowance and Parenting Payment will be able to access an additional temporary Coronavirus payment of $550 per fortnight.
You can find out more here.
Eligible low income earners on Centrelink benefits, including Job Seeker, Youth Allowance and Parenting Payment will receive two separate payments of $750. One in April and another in July.
You can find out more here.
Individuals affected by Coronavirus will be able to access their superannuation early, without it being taxed or affecting any Centrelink benefit payment. They can access up to $10,000 in 2019-20 and a further $10,000 in 2020-21.
You can find out more here.
Changes introduced to Bankruptcy legislation makes it extremely difficult for creditors to force you into Bankruptcy for unpaid debts.
You can find out more here.
Businesses affected by Coronavirus will be able to access a wage subsidy for their employees. Employers will be able to claim a fortnightly JobKeeper payment of $1,500 per eligible employee for up to 6 months back dated to 1 March 2020.
You can find out more here.
Eligible SMBs and not-for-profits will receive a credit for employee PAYG Withholding Tax of at least $20,000 and up to a total of $100,000. This will be delivered over two payments through credits in the BAS system when they lodge their BAS statements in April and then in October.
You can find out more here.
You can find out more here.
To support business investment, the Government is increasing the instant asset write-off threshold from $30,000 to $150,000. This allows businesses to immediately deduct purchases of eligible assets. Eligible businesses include those with an annual turnover less than $500 million.
You can find out more here.
The Australian Government is backing business investment by introducing the ability for businesses to deduct 50 per cent of the cost of an eligible asset on installation. Businesses with an annual turnover of less than $500 million who are purchasing new depreciable assets will be eligible.
You can find out more here.
Eligible businesses can apply for a wage subsidy of 50% of an apprentice or trainee’s wage for 9 months. Up to $21,000 per apprentice.
You can find out more here.
The Coronavirus SME Guarantee Scheme is also available for small to medium enterprises (SMEs) across the country. Under this scheme, the Government is providing a guarantee of 50 per cent to SME lenders for new unsecured loans to be used for working capital. This allows eligible businesses to borrow up to $250,000 for 3 years with an initial 6-month repayment holiday.
You can find out more here.
The Government has announced a mandatory code of conduct for commercial tenancies to support small and medium sized enterprises (SMEs) affected by the coronavirus. Rent reductions will be based on the tenant’s decline in turnover to ensure that the burden is shared between landlord and tenants.
You can find out more here.
COVID-19 is having a major impact across the country, with many Australian businesses forced to close due to the Government's tight social distancing restrictions. If your company is showing signs of financial distress, we've compiled 8 steps on how to combat this in the video below.
The support of these parties will be critical for many Australian businesses. If you are not going to be able to meet obligations, it’s important you engage with them as soon as possible and outline your 6 to 12 month plan. They may be able to assist you through the crisis by negotiating rent reductions, rent-free periods or put a hold on loan repayments.
Due to the impact of COVID-19, many businesses will put off paying GST and PAYG over the next few months. However, this can lead to significant cashflow problems. It’s important to continue putting aside a percentage of sales to GST and PAYG to ensure you receive the ATO credit for up to $100,000.
You need to ensure you know about your future cashflow so you can take action in the future that may be necessary for your business’ survival. Once you have clarity about your likely cashflow, you can plan to cover any shortfalls or if required to negotiate with suppliers, the bank and the landlord.
If customers don’t pay your outstanding invoices, your business may struggle. It’s important to maintain communication with customers throughout these challenging times to ensure they know you may need to be paid, even if it’s just to set up a payment arrangement.
Before you access money in your profit, reserve or vault bank accounts straight away, you need to take into careful consideration what kind of funds you may need over the coming months. Factor these funds into your cashflow forecast so that they can provide you with the greatest chance of long-term survival.
If your company is experiencing overwhelming debt due to the impact of Coronavirus, you need to act fast and speak to a corporate insolvency specialist as soon as possible. Getting help early provides your business with its best chance of surviving through this crisis.
For more information on our solutions available for both Australian businesses and individuals, please read our articles below.
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