Stimulus Support For Your Business & Tips To Be Proactive
Hello Friends and Valued Clients,
We wanted to touch base and give you all a very quick snapshot of the Federal Government’s Stimulus Package announced yesterday and how it can benefit your business.
Firstly, regardless of what side of the political spectrum you sit on, we wholeheartedly agree that what the Federal Government has announced is what was required to support the economy through this period and keep businesses moving in the right direction despite the chaos. We applaud their swift action.
Benefits for you:
Cashflow Boost
SME’s are eligible for up to a $25,000 payment delivered via the ATO. This is a cashflow boost to help cover the costs of employee wages and salaries (50 per cent of PAYG withheld, with a minimum $2,000 payment and up to a cap of $25,000 over 6 months) – this covers the period: January – June 2020 and businesses turning over up to $50 Million per annum.
Instant Asset Right Off
Increased from $30,000 - $150,000 if you are a business turning over up to $500 Million. (this applies to things like purchases of cars, trucks, tractors, shop fit outs etc).
Accelerated Depreciation Deduction
Accelerated Depreciation over and above what businesses are already able to access in the 1st year – increased by 50%.
Cash Payments
$750 cash payments to be made by 31st March 2020 to anyone on benefits aimed at stimulus spending (pensioners, Newstart, disability/carers, youth allowance, recipients of tax benefits etc).
Coronavirus Regional & Community Fund
A $1Billion fund has been established through the Department of Trade, Tourism & Investment to support tourism and businesses that export and need access to funds to find new markets to purchase their products. This will be available through an application process and certain criteria will need to be met.
Bushfire Victim Tax Relief
Anyone affected by the Bushfires can have their tax obligations deferred for up to 4 months.
Small to Medium Enterprise Grants
Additional support will be provided to businesses by the way of grants in the coming days, these will be particularly to support those businesses impacted directly or indirectly by the tourism downfall or the limitations on exports. So if you are eligible, you need to apply. We can assist if you need us to, with a proven track record and a 95% success rate on grant applications, you can rest assured you’re in the right hands with the DJC team.
Wage Subsidies
Businesses with less than 20 people can access a $21,000 payment to support them in keeping apprentices and trainees employed.
There are a raft of other benefits, but the above ones are the key highlights and the ones that will affect your business the most.
Deadline: All of these benefits will only be available up to 30th June 2021 at this stage.
My Number#1 Tip:
My Number#1 Tip in all of this is, now is the time to continue marketing your business to the most appropriate audience with an appetite to purchase your products and services. DO NOT stop marketing as it will only hurt your business. Pivot yes, but don’t stop. If you need assistance working out how to pivot or where to spend your marketing dollars most effectively, I am always here to give you unbiased advice, so don’t hesitate to reach out to me directly: danae@danaejones.com.au
More detailed information about the stimulus package can be found here: https://treasury.gov.au/coronavirus
We are here to support you, so please get in touch if you would like our assistance with grant applications and additional benefits we can offer to help your business weather the storm.
Cheers
Danae