COVID-19 has had a major impact on our community and our thoughts are with you.
Whilst there are still many unknowns about the situation, Geared’s duty is to ensure that we continue to support you in any way that we can during this time.
To limit the potential disruption to your business and to support the global goal of slowing down the virus, the Geared team will be working remotely. Over the years we have invested in systems and have trained and encouraged our team to work from home in case of sickness or emergency, and we are well prepared.
As a result, we will be able to continue to provide our full services to clients and our community throughout this time.
For the immediate future, we have however suspended all non-critical, face-to-face meetings until further notice. Instead, we’ll be able to organise telephone or video conference meetings accordingly to avoid any interruptions to your services.
If there is anything we can do to assist you please don’t hesitate to give us a call on 03 9079 0960 or email us at email@example.com.
WHAT YOU NEED TO KNOW ABOUT THE STIMULUS PACKAGE
In response to the economic impact of the Coronavirus, the Australian Government has announced investment packages to support the economy. So far, the Government has introduced three stimulus packages to assist small and medium businesses.
The stimulus packages are focused on supporting wages and business investment, providing cash flow assistance, targeted support and household stimulus payments.
On 30 March, the Government announced the $130 billion JobKeeper Payment to help keep Australians in jobs as we deal with the significant economic impact from the Coronavirus. This brings the Government’s total support for the economy to $320 billion.
The Prime Minister has warned that there are no “quick solutions” and that business should prepare for 6 months of disruption.
Here’s the key information you need to know.
CASH FLOW BOOST FOR EMPLOYERS
Instant asset write-off increased to $150,000 up to 30 June 2020 for new and second-hand assets. For eligibility criteria and application process, click here.
50% investment incentive for a limited 15 months to 30 June 2021 for newly acquired assets only.
Under the $130 billion JobKeeper Payment scheme, 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 (before tax) per eligible employee from 30 March 2020, for a maximum period of 6 months.
Employers will need to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper Payment. This will be paid to the employer in arrears each month by the Government. The first payments to eligible employers will commence in the first week of May 2020. JobKeeper Payments can be made for the period beginning 30 March 2020.
For more information and FAQs about the JobKeeper Payment, click here.
Eligible employers need to determine if they want to participate in this program by electing into it. To register your business, click here.
Temporary 6 month increase to the threshold at which creditors can issue a statutory demand on a company from $2,000 to $20,000 and an increase in the time companies have to respond from 21 days to 6 months. Directors also are provided with temporary relief from personal liability for trading while insolvent for 6 months.
Introduction of a Coronavirus SME guarantee scheme protecting financial institutions by guaranteeing 50% of new loans to SMEs – up to $250,000.
The eligibility criteria to access income support relaxed for the self-employed and sole traders. More information about support available for sole traders can be found here.
This includes temporary higher thresholds and more time to respond to demands from creditors and temporary relief from directors’ personal liability for trading while insolvent. More information is available here.
BANKING AND LENDER INSTITUTIONS
Specific COVID-19 concessions have been announced by the following banks: CBA, Westpac, NAB, ANZ and Bendigo around loan repayments, hardship assistance, merchant fees and interest rates.
For more information about the stimulus package, read the following article – A small business guide to the economic stimulus package.
As new announcements are made by the Government and financial institutions, we will continue to keep you abreast of developments. If there is anything we can do to assist you in the meantime, please contact us through the form below or call us on 03 9079 0960.