Major Announcement for Business Owners
The Federal Government this morning has announced very important stimulus measures targeted at small business owners, be they owners of a company, sole trader or contractors. The full details of the announcements made to date can be found here https://treasury.gov.au/coronavirus To highlight some of the key points you should be across:
Minimum $20,000 being made available for small businesses - this involves PAYG withholding for small business owners, paid to businesses in their upcoming BAS/PAYG lodgement - This is now set at a minimum of $10,000 for the March 1/4 and a top up of $10,000 being paid in the June 1/4 lodgement - Total minimum of $20,000 for boosting cash flow.
Support announced for Sole Traders and Contractors - 2 key points here are 1) Eligibility for Newstart payments have been reduced, so casual employees,
contractors and soles traders can access this more easily. The value of the fortnightly payment has also been doubled.
2) Early access to super for unemployed, you have been made redundant, working hours have been reduced by 20% or more as a contractor or casual employee or you are a sole trader and your business is suspended or there is a reduction in turnover by 20% or more since Jan 2020.
Government Backed Business Loans - These loans will be made available through traditional lending channels and are designed to support business working capital during the down turn. They will be up to a maximum of $250,0000, Unsecured and an initial 6 month repayment holiday will apply. Maximum loan term is 3 years. Importantly normal credit application/assessment process will apply and interest will be charged on the amount drawn. So important you get the right advice from us before applying
These are welcome announcements and we hope they can go some way in assisting you manage your business through this difficult time. What is apparent is the rate of change is fast and we know you are working hard to make changes in your businesses to survive. We are here to support you by getting access to the information as soon as it comes to hand and ensure that you have the access to capital when you require it. If you would like more information or have a question please feel free to contact me by replying to this email or via the contact us page on the EZ Business Web Page. Thanks and keep well. Trent Carter Director Provident Lending & Business Solutions EZ Business Loans 08 6201 0143