The Federal Government has announced a total of $197.1 billion stimulus and wage subsidy package to support Australian workers and businesses.
This includes the JobKeeper Payment, instant asset write-offs, cash payments and unsecured small business loans.
In addition, depending on which state your business is registered in, many State Governments have their own stimulus packages. For full details of all that’s available for your business, see items below with reference to Australian states.
We encourage you to talk to your accountant. If you do not have one or are seeking a second opinion, you can find one that suits your business needs, budget and size here.
We’ll continue to update this page with new Government Stimulus packages and subsidies as they materialise, so make sure you sign up or check in often to stay in touch with the latest.
Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months. To receive the JobKeeper Payment, employers must: Register an intention to apply on the ATO website and assess that they have or will experience the required turnover decline Provide information to the ATO on eligible employees. This includes information on the number of eligible employees engaged as at 1 March 2020 and those currently employed by the business (including those stood down or rehired). For most businesses, the ATO will use Single Touch Payroll data to pre-populate the employee details for the business. Ensure that each eligible employee receives at least $1,500 per fortnight (before tax). For employees that were already receiving this amount from the employer they will continue to receive their regular income according to their prevailing workplace arrangements. For employees that have been receiving less than this amount, the employer will need to top up the payment to the employee up to $1,500 per fortnight, before tax. And for those employees earning more than this amount, the employer is able to provide them with a top-up. Notify all eligible employees that they are receiving the JobKeeper Payment. Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business. Eligibility Employers will be eligible for the subsidy if they pass the basic turnover test: their business has a turnover of less than $1 billion and their turnover has fallen by more than 30% (of at least a month); or their business has a turnover of $1 billion or more and their turnover has fallen by more than 50% (of at least a month); and the business is not subject to the Major Bank Levy. However, if your business doesn't pass the test, you may still be eligible for the JobKeeper payment based on an alternative test, which is explained in detail on the ATO website.
Eligible small and medium sized businesses, and not-for-profits (including charities) that employ people, will receive at least $20,000 up to a total of $100,000 under both payments. These payments will help employers to retain staff and helping entities to keep operating.The cash flow boost provides a tax free payment to employers and is automatically calculated by the Australian Taxation Office (ATO). There are no new forms required.Are you eligible? Small and medium business entities with aggregated annual turnover under $50 million and that employ workers will be eligible.Eligibility will generally be based on prior year turnover.When and how will you receive the payments?The ATO will deliver the payment as a credit to your business upon lodgement of your activity statements. Where this places the business in a refund position, the ATO will deliver the refund within 14 days.Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020, and the additional payment for the quarters ending June 2020 and September 2020.Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgements, and the additional payment for the June 2020, July 2020, August 2020 and September 2020 lodgements.
Regional Growth Loans are direct, interest-free loans for emerging and fast-growth SMEs in regional NSW that are scaling quickly and creating jobs, but face barriers in accessing finance from traditional lenders.Regional Growth Loans are for businesses who are creating jobs specifically in areas outside of Sydney, Newcastle and Wollongong.Funding available Direct loans ranging from $200,000 to $500,000 are available to businesses with no interest payable over the term of the loan.Jobs for NSW does not require the loan to be secured by personal assets such as residential property.As part of the standard terms and conditions, Jobs for NSW will place a general security over the current and future assets of the business.Who is eligibleTo apply for a Regional Growth Loan, your business must:have a registered ABN and be an incorporated company have a minimum of 5 employees (full-time, part-time or casual)be creating a minimum of 10 additional FTE within two years outside of metropolitan NSW (Sydney, Newcastle and Wollongong)have been trading for a minimum of one year demonstrate future growth for at least one year evidenced by secured pipeline or contracts demonstrate that they have been unable to obtain commercial finance.Why choose a Regional Growth Loan? With a Regional Growth Loan:your business has access to funding when traditional lenders are unable to helpthere is no interest payable for the life of the loanthere are no penalties for early repaymentthere are no establishment feesyour business can continue to grow through additional capital.
Up to $500,000
There is a temporary increase to 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.This includes temporary relief for directors from any personal liability for trading while insolvent, and providing temporary flexibility in the Corporations Act 2001 to provide temporary and targeted relief from provisions of the Act.The elements of the package are:A temporary increase in the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receiveA temporary increase in the threshold for a creditor to initiate bankruptcy proceedings, an increase in the time period for debtors to respond to a bankruptcy notice, and extending the period of protection a debtor receives after making a declaration of intention to present a debtor’s petitionTemporary relief for directors from any personal liability for trading while insolventProviding temporary flexibility in the Corporations Act 2001 to provide targeted relief for companies from provisions of the Act to deal with unforeseen events that arise as a result of the coronavirus health crisis.The Australian Taxation Office (ATO) will tailor solutions for owners or directors of businesses that are currently struggling due to the coronavirus, including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups.Temporary higher thresholds and more time to respond to demands from creditorsA creditor issuing a statutory demand on a company is a common way for a company to enter liquidation. The Government is temporarily increasing the current minimum threshold for creditors issuing a statutory demand on a company under the Corporations Act 2001 from $2,000 to $20,000. This will apply for 6 months.Not responding to a demand within the specified time creates a presumption that the company is insolvent. The statutory time frame for a company to respond to a statutory demand will be extended temporarily from 21 days to 6 months. This will apply for 6 months.To assist individuals, the Government will make a number of changes to the personal insolvency system regulated by the Bankruptcy Act 1966. The threshold for the minimum amount of debt required for a creditor to initiate bankruptcy proceedings against a debtor will temporarily increase from its current level of $5,000 to $20,000. This will apply for 6 months.Failure to respond to a bankruptcy notice is the most common act of bankruptcy. The time a debtor has to respond to a bankruptcy notice will be temporarily increased from 21 days to 6 months. The extension will give a debtor more time to consider repayment arrangements before they could be forced into bankruptcy. This will apply for 6 months.When a debtor declares an intention to enter voluntary bankruptcy by making a declaration of intention to present a debtor’s petition there is a period of protection when unsecured creditors cannot take further action to recover debts. This period will be temporarily extended from 21 days to 6 months. This will give debtors more time to consider the options that are best for them. This will apply for 6 months. Creditors, many of whom are themselves small businesses, will still have the right to enforce debt against companies or individuals through the courts.Temporary relief from directors’ personal liability for trading while insolventDirectors are personally liable if a company trades while insolvent. This can lead to boards of directors feeling under pressure to make quick decisions to enter into an insolvency process if there is any risk that the company will experience periods where it will be trading while insolvent. To make sure that companies have confidence to continue to trade through the coronavirus health crisis with the aim of returning to viability when the crisis has passed, directors will be temporarily relieved of their duty to prevent insolvent trading with respect to any debts incurred in the ordinary course of the company’s business. This will relieve the director of personal liability that would otherwise be associated with the insolvent trading. It will apply for six months. Temporary relief from personal liability for insolvent trading will apply with respect to debts incurred in the ordinary course of the company’s business. Egregious cases of dishonesty and fraud will still be subject to criminal penalties. Any debts incurred by the company will still be payable by the company.