As mentioned in our last few updates, do not hesitate to ask us for help.
We are still providing an initial 1-hour free meeting (most likely via Zoom or phone) for clients who are unsure as to 'where to' from here or just want to get a better understanding of the current government measures in place to support their business.
Dave: 0418 900 472. firstname.lastname@example.org
Joselyn: 0417 740 927. email@example.com
There is more detail coming out on an ongoing basis, so we will do our best to try and make sense of it all for you specific to your situation as you ask and as it changes.
The government's additional measures released yesterday see some additional $66b flow into the economy to assist people during this time.
The banking industry has also announced measures to support households and business, please seek immediate advice from your bank in the case you require relief now.
A basic breakdown of the increased government measures are below:
SUPPORT FOR BUSINESSES
INCREASED - Boosting cash flow for employers
- The maximum payment has now increased from $25,000 to $100,000 and now includes NFP's. The payment guidelines are listed here. The payment guidelines are a little more complex than the previous release, so please ask us for information regarding your individual business situation if unsure. The attached guide does provide some examples also.https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf
Temporary relief for financially distressed businesses
- Measures have been put into place to protect businesses under severe financial distress including relief measures and increased safety nets. See here. https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Providing_temporary_relief_for_financially_distressed_businesses.pdf
Increasing the instant asset write-off
- As per the previous measures, the instant asset write-off has been increased from $30,000 to $150,000 for businesses with a turnover of under $500 million. See here. https://treasury.gov.au/sites/default/files/2020-03/Fact_Sheet-Delivering_support_for_business_investment.pdf
Backing business investment
- As per the previous measures, there is are accelerated depreciation measures in place over the short-term. See here. https://treasury.gov.au/sites/default/files/2020-03/Fact_Sheet-Delivering_support_for_business_investment.pdf
Supporting apprentices and trainees
- As per the previous measures, there is support available wage subsidies for apprentices and trainees. See here. https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Cash_flow_assistance_for_businesses_0.pdf
BUSINESS INVESTMENT MEASURES
- Immediate cash flow needs for SME's
- Quick and efficient access to credit for small business
- Reserve Bank of Australia - Supporting the flow and reducing the cost of credit
- Support for non-ADI and smaller ADI lenders in the securitisation market
- Australian Prudential Regulation Authority - Ensuring banks are well placed to lend.
All information regarding these can be further accessed here.
SUPPORT FOR INDIVIDUALS AND HOUSEHOLDS
With forced closure of certain industries there will be people requiring access to further support measures. The government has released these below also.
- Income support for individuals
- Payments to support households
- Temporary early release of superannuation
- Temporarily reducing superannuation minimum drawdown rates
- Reducing social security deeming rates.
All information regarding these can be further accessed here. https://treasury.gov.au/coronavirus/households
We will continue to provide communication to clients as it comes to hand.
Please contact us directly for further support.
The Team at Business Precision
This information is designed to be general in nature and not specific advice. Please contact our office for further information and advice specific to your circumstances.
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