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<\/a>As government measures change daily amid the COVID-19 pandemic, a second stimulus package was released.\u00a0 This update focuses on what this means for small business, as well as other questions small business owners may have.\u00a0 It is current as at 23 March 2020.<\/p>\nSole Traders:<\/strong><\/p>\n As part of the second stimulus package, sole traders have the following options: Small Businesses:<\/strong><\/p>\n Here is what is currently available to small businesses (turnover of less than $50m)<\/p>\n Where to apply: Business & Instalment Activity Statements<\/p>\n Loans:<\/strong><\/em> Where to apply: Banks & lending institutions<\/p>\n Apprenticeship Assistance:<\/strong><\/em> Where to apply:\u00a0 Employers can register for the subsidy from early April 2020. Final claims for payment must be lodged by 31 December 2020.\u00a0 For further information on how to apply for the subsidy, including information on eligibility, contact an Australian Apprenticeship Support Network (AASN)provider.<\/p>\n Instant Asset Write-off:<\/strong><\/em> Where to apply: 2020 Tax Return Form<\/p>\n Temporary relief from creditors & insolvency:<\/strong><\/em> ATO Administrative Relief:<\/strong><\/em> Employers will still need to meet their ongoing Superannuation Guarantee obligations for their employees.<\/p>\n
\n1) \u00a0 \u00a0 \u00a0Access to super if their income has stopped with up to $10,000 provided before 1 July 2020, and $10,000 next financial year.\u00a0 You can download the fact sheet by clicking this\u00a0link<\/a><\/strong>.\u00a0 If you are eligible for this new ground of early release, you can apply directly to the ATO through the myGov website:\u00a0www.my.gov.au<\/a><\/strong>. You will need to certify that you meet the above eligibility criteria.
\n2) \u00a0 \u00a0 \u00a0Access to jobseeker payment through Services Australia (Centrelink).\u00a0 See\u00a0link<\/a>\u00a0<\/strong>to the specific coronavirus page.<\/p>\n\n
\nStimulus & Wage Subsidy:<\/strong><\/em>
\nThe Government is providing up to $100,000 to eligible small and medium-sized businesses, and not for-profits (NFPs) that employ people, with a minimum payment of $20,000. These payments will help businesses and NFPs with their cash flow so they can keep operating, pay their rent, electricity and other bills and retain staff.\u00a0 The payment is a tax-free payment, and is worth 100% of the tax that small and medium-sized businesses withhold from their employees\u2019 salary and wages up to a maximum amount of $100,000.\u00a0 The amount will be paid automatically by the Australian Taxation Office based on the business\u2019s monthly or quarterly business activity statements.\u00a0 This means it will be directly linked to keeping someone employed as the tax is calculated and withheld based on a worker\u2019s wage.\u00a0 You can download the fact sheet & timetable by clicking this\u00a0link<\/a><\/strong>.<\/p>\n
\nThe government has also announced a new \u201ccoronavirus SME guarantee scheme\u201d, which will provide a guarantee of 50 per cent to small and medium enterprise (SME) lenders for new unsecured loans to be used for working capital.\u00a0 The loans will be made through participating banks and non-bank lenders to businesses disrupted by the coronavirus.\u00a0 Loans will be used for working capital purposes and be unsecured and it will be for loans granted within six months starting 1 April 2020.\u00a0 Lenders will not be charged a fee for accessing the guarantee scheme. Loans will be repayment-free for six months. The maximum that can be borrowed under the guarantee facility will be $250,000 on terms up to three years.\u00a0 For more information on this, click on this\u00a0link<\/a><\/strong>.<\/p>\n
\nThe Government is supporting small business to retain their apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice\u2019s or trainee\u2019s wage for 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice. Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee ($7,000 per quarter).\u00a0 You can download the fact sheet by clicking this\u00a0link<\/a><\/strong>.<\/p>\n
\nThe instant asset write off has increased from $30,000 to $150,000 until 30 June 2020, to encourage businesses to purchase assets during this period.\u00a0 This applies to new and second hand assets.\u00a0 For more information, click on this\u00a0link<\/a><\/strong>.<\/p>\n
\nThere will be temporary relief from creditors issuing statutory demands by increasing the threshold where one can be issued.\u00a0 There is also some measures regarding bankruptcy and directors liability for insolvent trading.\u00a0 More information on this is found on this\u00a0link<\/a><\/strong>.
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\nAs part of the government\u2019s coronavirus response package, it has provided for the ATO to give administrative relief for some tax obligations for people affected by the coronavirus outbreak, on a case-by-case basis\u00a0(see more here<\/a><\/strong>).\u00a0\u00a0Business operatives affected by the coronavirus should contact the ATO to discuss relief options. Options include:<\/p>\n\n