Updates on Support for Small Business

As the COVID-19 situation is continually evolving, we have established a central point on our website to keep our customers informed and updated on the range of resources available to businesses during this difficult time. We understand that this is a very difficult time for many businesses, and we want to assist wherever possible. We encourage you to contact us for any of your equipment, vehicle or general finance needs. We are open for business and have strong capacity to lend to small and medium sized businesses across the country. We can assist you to lock in your working capital well in advance of any disruptions to your business.

Cash flow assistance for business

On 22 March 2020, the Australian government announced a cash payment of between $20,000- $100,000 along with government guaranteed loans of up to $250,000. These announcements complement a range of earlier measures to encourage banks to continue lending to small businesses as well as deferring loan repayments for six months. The business investment measures have been designed to assist Australian businesses and economic growth in the short-term, and encourage a stronger economic recovery following the Coronavirus outbreak. 

Increasing the instant asset write-off to $150,000

Expansion of the Instant Asset Write-off Scheme from $30,000 to $150,000 with to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. For example, assets that may be able to be immediately written off are a tractors or other farm machinery and cars, utes and trucks for farming businesses.

Backing Business Investment Scheme (BBI)

The Government is introducing a time limited 15 month investment incentive to support business investment and economic growth over the short-term, by accelerating depreciation deductions. Additional 50% immediate tax deduction for businesses with turnovers of less than $500 million.

Businesses with turnovers of less than $500 million will also be able to claim an additional immediate tax deduction of 50% of the cost of assets purchased between 12 March 2020 and 30 June 2021. This is on top of the normal tax depreciation deduction the business would be entitled to (including the instant asset write-off explained above).

Boosting cash flow for businesses with $25,000 cash payment for eligible businesses

Businesses with turnovers of less than $50 million that employ staff between 1 January 2020 and 30 June 2020 will receive tax-free cash payments of 50% of their Business Activity Statement or Installment Activity Statement from 28 April 2020.

Supporting apprentices or trainee wages

Eligible employers can apply for a wage subsidy of 50% of their apprentice or trainee wage for up to nine months from 1 January 2020 to 30 September 2020. 

Access to superannuation

The Government will allow people to access up to $10,000 from their superannuation with no tax. There will also be a temporary 50-per-cent reduction in superannuation minimum draw-down requirements for account-based pensions in 2019-20 and 2020-21.

Full details of the Federal Government's Stimulus Package can be found here.

 

Reserve Bank safety net package

The Reserve Bank  (RBA) announced yesterday a rate cut, quantitative easing and cheap credit are new measures designed to help businesses during the coronavirus crisis.

  • Official interest rate cut to an all time low of 0.25%
  • Quantitative easing - the RBA will buy government bonds, which essentially creates new money, lowers the borrowing cost for the government and frees up credit
  • Cheap credit to banks to lend to businesses - the RBA has set up a three-year funding facility at least $90bn to be lent to authorised deposit-taking institutions (banks) at a fixed rate of 0.25%. The idea being that more money will be available to lend to to business, especially to small and medium-sized businesses. Read more

Small business loans to be deferred by banks for 6 months

The Australian Banking Association has announced a relief package that will allow small business customers to defer loan repayments by six months. Banks developed this Small Business Relief Package following discussions with APRA and ASIC to provide the appropriate regulatory treatment. Under the scheme, small businesses will be able to defer loan repayments for six months by simply contacting their lender. Further details of how the actual scheme will be rolled out is yet to be finalised. Read more

State by State Stimulus Packages

The various states and territories are offering a range of small business stimulus packages designed to give tax relief, support at-risk businesses and support workers. 
Victoria
Tasmania
NSW
WA
SA
NT
ACT

We are just an email or phone call away, so please get in touch if we can help. 

Preserve your working capital and access finance for your business. Contact us for a quote today.

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