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COVID-19 Stimulus Package - What it means for you?

Daniel Mangiameli • March 17, 2020

We have already seen how COVID-19 has impacted our everyday living from our daily grocery shop, all the way through to our local community, sporting events & tourism industry.

We have seen supply chain disruptions making it difficult for businesses to provide the usual goods and services, as the flow of imported and exported goods from China and other countries are being delayed or halted.

That means our local building and supplies store might not have the materials we need for the weekend DIY job, or bigger yet, the materials we need for building homes & commercial properties.

In addition, our local farmers are having difficulty sourcing chemicals for their upcoming cropping season with some of these chemicals being on order since December.

It also means your local café or restaurant might not have access to the same everyday products, as the demand for food continues to grow.

Ultimately, COVID-19 is having a domino effect not only on our individual health but on our small business economy.

So, what's out there to help small businesses?

On 12 March 2020, the government announced a package of measures to help the economy withstand and recover from the economic impact of coronavirus.

The following measures may be introduced to government legislation in the coming weeks.

-          Increasing the instant asset write-off threshold from $30,000 to $150,000 for eligible businesses with an aggregated annual turnover of less than $500 million.

-          A time limited 15-month investment incentive to support business investment and economic growth over the short-term, by accelerating depreciation deductions. An instant deduction of 50% of the cost of an eligible asset on installation will apply.

-          Boosting Cash Flow for Employers by providing up to $25,000 to assist with staff wages. The payment will be delivered by the ATO offsetting the amount of your PAYG Withholding tax payable for the first 6 months of the calendar year.

Facebook is also offering $100 Million in cash grants and advertising credits. The grants will be available for up to 30,000 eligible small businesses in over 30 countries.

The big 4 banks are providing fee-free redraws on loans, early access to term deposits, deferred payments on business credit cards, waiving merchant fees and deferring home loan repayments.

This is a tough time for everyone but we need to keep in mind that our local businesses still need our support.

If you require further information on any of the above, please call our office on (03) 5032 9422

This is a developing situation changing daily and sometimes even hourly as more relevant information come to light we will keep you informed.

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