Are you having a hard time keeping updated with all of the government announcements for support relief and determining your eligibility as a business owner?
We have summarised a range of Victorian and Australian federal COVID-19 relief and support packages including loans, grants and incentives for business that are experiencing financial hardship during the pandemic.
We are here to support you in these difficult and challenging times, and we want to ensure that your business is accessing the assistance it needs and making the most of its benefits.
Government Loans
- Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme: Under the Scheme, the Government will provide a guarantee of 50% to SME lenders for new unsecured loans of up to $1 million per borrower.
- COVID-19 Export Capital Facility: The Commonwealth Government has established a $500m COVID-19 Export Capital Facility to assist previously profitable Australian exporters whose businesses have been impacted by COVID-19. Exporters will be able to access loans from $250,000 to $50m under the Facility.
Government Grants
- Business Survival Package – $534m: Comprised of a Business Support Fund to support eligible businesses with $5,000 grants in areas under Stage 3 restrictions. A Regional Tourism Support Program to provide $40 m for regional tourism businesses to cover the costs of refunds. A $20m CBD Business Support Fund to help small business in Melbourne’s CBD to face the large and sustained shock from the restrictions. A Night-time economy support program of $30m to assist the hardest-hit businesses in hospitality.
- Business Support Fund – Expansion: Eligible businesses can apply for a one-off $10,000 in Melbourne or Mitchell Shite and $5,000 in regional Victoria grant which can be used towards costs such as utilities, rent and salaries, and activities to support business continuity planning.
- JobMaker Plan for the Creative Economy – $250m: A mixture of grants and loans to get the live entertainment industry working again and includes: $75m in competitive grant funding for Reactive Productions and Tours, $90m in concessional loans to assist creative economy businesses, and other measures.
- JobTrainer – $2b: The program is made of two parts:
1. $500m to support to provide over 300,000 new training places to assist school leavers and job seekers to gain skills.
2. $1.5b to expand the Supporting Apprentices and Trainees wage subsidy.
Job Keeper
Under the JobKeeper scheme, businesses that meet the relevant decline in revenue (15%, 30% or 50%) can access a subsidy from the Australian Government to continue paying their employees. Affected employers, businesses and religious institutions can claim a fortnightly JobKeeper payment of $1,500 per eligible employee, per eligible religious practitioner, or for one eligible business participant from
30 March 2020, for a maximum period of six months.
Payroll Tax Deferral
Three relief measures have been announced by the Victorian Government:
1. Payroll tax waived for eligible business – Businesses with annual Victorian taxable wages up to $3 million will have their payroll tax for the 2019-20 financial year waived.
2. Additional payments under the JobKeeper program are now exempt from payroll tax – Any additional payments made to bridge the gap between an employee’s wage and the $1500 a fortnight required for the JobKeeper program are now exempt from payroll tax.
3. Extended and expanded payroll tax relief deferral – An employer whose Victorian taxable wages for the 2019-20 financial year did not exceed $10 million has the option to defer payment of their payroll tax liability.
Cash Flow Boost
Temporary cash flow boosts will support small and medium businesses and not-for-profit (NFP) organisations during the economic downturn associated with COVID-19. Eligible businesses and NFP organisations who employ staff will receive between $20,000 to $100,000 in cash flow boost amounts, delivered through credits in the activity statement system when eligible businesses lodge their activity statements.
Rent Relief and Mediation
he Victorian Government announced a commercial tenancy relief scheme to alleviate financial hardship faced by tenants and landlords as a result of COVID‑19. For commercial tenants and landlords, the scheme will provide support for a six-month moratorium on commercial tenancy evictions from 29 March 2020, for the non-payment of rent for small to medium enterprises with an annual turnover under $50 million that have experienced a minimum 30 per cent reduction in turnover due to COVID‑19. The Victorian Government will also provide land tax relief to commercial landlords that provide rent relief to their tenants.
Early Release of Super
If you have been adversely financially affected by COVID-19, you may be able to access some of your superannuation early. Eligible citizens and permanent residents of Australia or New Zealand can apply once in the 2020–21 financial year to access up to $10,000 of their super.
Super Guarantee Amnesty
The government introduced a super guarantee (SG) amnesty (the amnesty). The amnesty allows employers to disclose and pay previously unpaid super guarantee charge (SGC), including nominal interest, they owe their employees, for quarter(s) starting from 1 July 1992 to 31 March 2018. Employers participating in the amnesty need to apply by 7 September 2020.
Cash Flow Management
Reviewing and management of your businesses cash flow position including:
- Wages and entitlements
- Meeting lending obligations and creditor demands
- Covering rent
- Maintaining personal expenses
If you need more detailed information including eligibility criteria and require assistance with applications and lodgement, contact one of our trusted advisers today.