Victorian and Commonwealth Governments Business Assistance during containment of COVID-19

The Victorian Government expose its support to combat COVID-19 as many businesses are being financially impacted by the virus.

Victorian Government Assistance: $1.7 billion economic and jobs package

 

  • $500 million Business Support Fund: The fund will support small to medium businesses within the hardest hit sectors, including hospitality, tourism, accommodation, arts and entertainment, and retail.  Businesses requiring further information should register here
  • $500 million Working for Victoria Fund: The fund will help workers who have lost their jobs find new opportunities – providing vital contributions to our state’s response to the pandemic and affording those Victorians security when its needed most. To receive more information please register here.
  • Payroll Tax: Full payroll tax refunds for the 2019-20 financial year to small and medium-sized businesses with payroll of less than $3 million; and deferral of any payroll tax for the first three months of the 2020/21 financial year until 1 January 2021. Details on this package will become available over the next few days here
  • Land Tax: Commercial tenants in government buildings can apply for rent relief – and 2020 land tax payments will be deferred for eligible small businesses. Details on this package will become available over the next few days here. 
  • Payments to business: The Government will pay all outstanding supplier invoices within five business days. Further information to be provided.
  • Liquor Licensing: Waiver of liquor licensing fees for 2020 for affected venues and small businesses. Please refer to contact information here.
  • Workers in Transition: This support provides information, tools and resources to help both business and workers through retrenchment processes and into new opportunities. For more information, click here

 

Other important COVID 19 information in relation to healthy workplaces is available at: https://www.dhhs.vic.gov.au/business-sector-coronavirus-disease-covid-19

 

Australian Government $189 billion Assistance Program

The Australian Government is supporting Australian businesses through a $189 billion program to manage cash flow challenges and retain employees. Assistance includes cash flow support to businesses and temporary measures to provide relief for financially distressed businesses.

 

  • Boosting cash flow for employers: 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. This will benefit around 690,000 businesses employing around 7.8 million people, and around 30,000 NFPs (including charities).
  • Temporary relief for financially distressed businesses: The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company. The ATO will tailor solutions for owners or directors of business that are currently struggling due to the Coronavirus
  • Financial assistance – flow of credit - SME Guarantee Scheme: SMEs with a turnover of up to $50 million will be eligible to receive a guarantee of 50% to SME lenders to support new short-term unsecured loans to SMEs. The Scheme will guarantee up to $40 billion of new lending.

               - Maximum total size of loans of $250,000 per borrower.                                                                           - The loans will be up to 3 years, with an initial 6-month repayment holiday.                                         - The loans will be in the form of unsecured finance, meaning that borrowers will have to provide an asset as security for the loan.

  • Increasing the instant asset write-off: The instant asset write-off threshold has been increased from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. This measure will support over 3.5 million businesses (over 99 per cent of businesses) employing more than 9.7 million employees.
  • Backing Business Investment (BBI): The Government is introducing a time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
  • Supporting apprentices and trainees: Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s 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). This measure will support up to 70,000 small businesses, employing around 117,000 apprentices.
  • Assistance for affected regions, communities and industries: $1 billion to support regions most significantly affected by the Coronavirus outbreak. These funds will be available to assist during the outbreak and the recovery. In addition, the Government is assisting our airline industry by providing relief from a number of taxes and Government charges estimated to total up to $715 million.

For more detail please go to https://treasury.gov.au/coronavirus  or https://www.business.gov.au/

 

Other useful information

  1. Coronavirus Business Liaison Unit: A Coronavirus Business Liaison Unit has been established within The Treasury to engage with business on a regular basis and provide updates to government on crucial issues. 
  2. Australian Taxation Office: The ATO will continue to update their website on advice to business once implemented. 

Source: Victorian Government

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