Coronavirus (COVID-19) Assistance

JobKeeper Payment

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.

Income Support for Individuals

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.

Payments to Support Households

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.

Temporary Early Release of Superannuation

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.

Update to Bankruptcy Legislation

Changes introduced to Bankruptcy legislation makes it extremely difficult for creditors to force you into Bankruptcy for unpaid debts.

• You need to have over $20,000 of unpaid debts for a creditor to issue you with a Bankruptcy notice.
• You now have up to 6 months to respond to a Bankruptcy notice, up from 21 days.
• Creditors cannot attempt recovery action for 6 months under the temporary protection period.

You can find out more here.

JobKeeper Payment

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.

Cashflow Support for Small and Medium Businesses

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.

Temporary Relief for Financially Distressed Businesses

• The threshold for a creditor to issue a Statutory Demand has increased from $2,000 to $20,000.
• The timing a business has to respond to a Statutory Demand has increased from 21 days to 6 months.
• Businesses that trade insolvent due to unforeseen events that arise as a result of Coronavirus will have temporary relief from insolvent trading claims and director liability.

You can find out more here.

Increasing the Instant Asset Write-Off

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.

Backing Business Investment

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.

Supporting Apprentices and Trainees

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

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.

Relief for Commercial Tenants

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.

Work with key suppliers, landlords and banks with your business plan

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.

Deal with and plan for tax and Government assistance

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.

Create a cashflow forecast to determine your likely situation

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.

Work with debtors to ensure your cashflow is not unnecessarily impacted

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.

Use funds in your profit, reserve or vault bank accounts wisely

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.

Speak to a business debt expert and get help early

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.