Few people could have predicted the impact of the coronavirus (or COVID-19) and the devastating consequences that it is brought upon communities throughout the world.
No country has been immune to the effects of the virus and what it has meant for people’s health and the economies right across the globe.
Support programs and schemes have been enacted to help soften the harsh effects of the economic downturn. The Australian government and banking institutions are now providing financial assistance schemes for businesses and sole traders.
It’s important to know what assistance you and your business are eligible for in order to weather the financial storm.
Assistance for Australian Business
There are a number of support programs and initiatives that could make a significant difference to the well-being of your business.
You can learn more about the coronavirus and support for Australian businesses from the Australian government’s special Business.gov.au website page.
As the website outlines – “The Federal Government, along with the Reserve Bank and the Australian Prudential Regulation Authority have taken coordinated action to support the flow of credit in the Australian economy, in particular for small and medium enterprises”.
Details include the different support schemes available to your business, such as;
- The Coronavirus SME Guarantee Scheme
- The increased Instant Asset Write-Off
- Boosting cash flow for employers
- Temporary relief for financially distressed businesses
Your eligibility for the different facets of assistance needs to be confirmed.
A Breakdown of the Schemes
The Coronavirus SME Guarantee Scheme will support businesses by providing a guarantee of 50% to small and medium enterprise (SME) lenders for new unsecured loans to be used for working capital.
The Instant Asset Write-Off threshold has been increased from $30,000 to $150,000 and expanded to include businesses with annual turnover of less than $500 million. This is up from $50 million and applies from March 12 until June 30, 2020.
There are more details online about the ways the governments (both Federal and State) are working to boost the cash flow for employers.
The Treasury Department has outlined how it will help financially distressed businesses with Special temporary relief measures.
The Aust Tax Office says that it will ensure their services are customised to the needs of the community by working with both taxpayers and their tax agents to tailor support to individual circumstances.
The Victorian Government recently announced $500 million to establish a Business Support Fund to assist small to medium businesses most impacted by the COVID-19 outbreak.
Knowing where you are financially placed now can help secure your financial future. The key is to know where and how to access assistance. Having an expert in your corner can make all the difference.
A tax and financial expert
Knowing you have the right advice about which financial assistance scheme will work best for you and your business is important.
The different factors include;
- Your eligibility for one or multiple schemes
- What financial assistance scheme will help you best
- How to access the funds or assistance as early as possible
- What other measures you can take to minimise debts and financial distress
These are stressful times that add to an already stressful climate for businesses. Using a qualified accountant you can trust will eliminate some of that worry and stress.
See the experts at Ruth Watson and Associates – it could mean huge difference to your business now and into the future.
Talk to the trusted team who can help by contacting us today.
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