Funding and Support During Coronavirus Crisis
In this crazy unprecedented season we find ourselves in, it is easy to become overwhelmed with information and responsibility.
There is a raft of funding and grants becoming available from national governments and major organisations. This article covers what we know is out there so you can go after it. We are an Australian business so it will focus mostly on Australian government offerings.
Government & Other Business Assistance
Boosting Cash Flow for Employers
Small and Medium Sized Businesses will be able to claim the “Boosting Cash Flow for Employers” support announced by the Morrison Government this week. This assistance has been designed to help eligible businesses cover the cost of employee wages and salaries.
The payments will be tax free and available to businesses with a turnover of less than $50m that employ staff between 1 January 2020 and 30 June 2020.
Do you have an Apprentice or Trainee?
If you have an apprentice or trainee employed in your business then the Australian Government is offering a wage subsidy of 50 percent for up to 9 months for the period 1 January 2020 to 30 September 2020.
As long as the business employs less than 20 staff and the apprentice or trainee was employed as at 1 March 2020.
Backing Business Investment
There is a 15 month investment incentive available to support business investment and economic growth over the short term by accelerating depreciation deductions.
Assets acquired from 12 March 2020 and first used or installed by 30 June 2021. This makes it a great time to invest in your business.
Instant Asset Write Off
The instant asset write-off threshold has been increased from $30,000 to $150,000. This means great tax deductions in the lead up to end of financial year. Another reason to invest in income producing assets.
Facebook Small Business Grant Program
Our friends at Facebook have announced a $100 million grant program that is aimed at supporting 30,000 small businesses that have been affected by the Covid-19 outbreak. Funds can be used to keep advertising spends running or to assist with operational shortfalls and to pay staff.
What a great initiative!
Whilst they are not yet accepting applications, you may want to subscribe via this link here https://www.facebook.com/business/boost/grants so that you can be kept up to date on how to apply.
The Queensland Government has announced a variety of measures to support businesses. From payroll tax support through to fees and charges relief for tourism and hospitality providers.
But the big game changer for Queensland is the provision of low interest loans of up to $250,000 for carry on finance with the first 12 months being interest free. This will help many businesses to help retain staff.
For more information or to register your interest follow this link http://www.qrida.qld.gov.au/current-programs/covid-19-business-support/queensland-covid19-jobs-support-scheme
Northern Territory Businesses
If your business is situated in the NT then you can access a range of grants and schemes to assist with keeping cashflow moving.
There is funding for not-for-profit and community organisations to engage local businesses to undertake works on property and facilities; funding for businesses to make improvements to their premises and an intensive business support program for NT tourism businesses.
Banks have announced that business loans for small businesses will be deferred for six months. Contact your business banker for more details.
New Business Lending
The Australian Government and the Reserve Bank announced an additional $100 billion to back lending to SMEs. What does this mean? Well it should allow banks to access additional cash at lower rates so that they can offer SMEs lower rate business loans to help sustain staff and structure.
Stay tuned, we’ll be adding to this blog post over time as new incentives or opportunities become available.