There is no question that the effect of Covid 19 pandemic has brought many Australian businesses to their knees this year, no matter how big or small they are. In fact, about 2/3 of companies and small businesses have either laid off or cut working hours for at least some of their workers. Australian residents from every walk of life, regardless of their age or social status, are feeling the effects from mental and physical health to economic consequences in the form of layoffs. To counter this major problem, the Australian government has allocated $257 billion directly to support the economy, hoping to help businesses and individuals to ride out the storm of the coronavirus and stay afloat with their cashflow.
The Government’s economic support measures have provided new policies in response to the economic effects of the Coronavirus pandemic, and the goal is to keep Australians in employment and businesses continuing to survive. Here are some of the business relief packages that may apply to your current situation:
If your business has been adversely affected by Covid-19 pandemic, you now have an option to defer repayments on active loans for up to 6 months. Although repayment of both principle and interest amounts can be postponed for a period of time, the interest will still be accrued for the period and you would need to pay it when your repayment begins again. Please talk to your bank in regards to a loan deferral; they might have a better solution for you, or even an extension of your loan period.
The Federal Government has launched a JobKeeper program. According to this scheme, the government aims to support employers who are severely impacted by the coronavirus, to help them keep employees on the payroll. On 21 July 2020, the government has announced that they will extend the JobKeeper program until 28 March 2021. To see the eligibility of your business or non-profit organisation for the JobKeeper program, you can check on the ATO website to see if your business is qualified.
As of 9 September 2020, some withdrawals from your superannuation funds are tax free. The package is in the form of a one-off stimulus payment to be made through the social security system. To support small and medium-size businesses, there will be tax free payments delivered as a credit in the business activity statement system. Each state government has also instituted a payroll tax waiver for a few months and at different payroll threshold depending on the state you are in. Some of the participating states are as follows: Tasmania, New South Wales, Queensland, Western Australia, Victoria, South Australia.
Business Tax Measures
The government has launched a new set of tax write-off rules to expedite your business assets’ depreciation, designed to accelerate and protect business investments. For any purchase below $150,000 businesses with aggregated turnover of not more than $500 million in the year of 2020 are eligible for an asset instant write-off. This applies for each asset value, so you would be able to write off multiple assets at once. When it comes to land taxes, Australian governments have lowered the 2019-2020 land tax liability for both residential and commercial premises to really take advantage of this discount.
Please visit us at SpotMeNow Australia for more information on how you can look into an option of a personal loan to help with your expenses and purchases during this Covid-19 pandemic.