Covid-19 Business Update – Fact Sheets

I want to say a huge thank you for all your phone calls and emails since my post from yesterday.  It is so special for me to be able to provide some sort of support to all of you through this incredibly difficult time, both financially and emotionally.

To follow on from the points that I discussed yesterday, the Government has released a series of Fact Sheets which I think are really useful for small business owners and have included links below to help support you further.  

Assistance to business to keep their employees

The Government is providing up to $100,000 to eligible small and medium sized business along with not-for-profits (including charities) that employ people, with a minimum payment of $20,000.  

The payments are tax free with payment flowing automatically via the ATO.  Payments will be available from 28 April 2020 so presumably will follow lodgement of the periodic Activity Statement.

Extension of the immediate asset write off

The Goverment is increasing the instant asset write off threshold from $30,000 to $150,000 until 30 June 2020.

Temporary relief for financially distressed businesses

The Government is temporarily increasing the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.  The package also includes temporary relief from directors from any personal liability for trading while insolvent. 

This relief measures seems to be aimed at companies with amendments to be made to the Corporations Act 2001 to reflect these.  There is no indication from the Government announcement as to how sole traders/partnerships or individual trustees of trusts will be affected.

Supporting apprentices and trainees

The Government is supporting small business to retain their 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).

How can we help?

Get in touch whether by phone or email so that we can talk and keep your business in the best shape possible through these tough times.

All the best,

Chris East