Coronovirus Stimulus Package for Small Businesses Update

Coronovirus Stimulus Package for Small Businesses Update

As Darwin said, “Those who survive, are not the strongest or the most intelligent, but the most adaptable to change”. 

Change is certainly upon us and is clearly evident as the Australian Government continues to take decisive stimulus action during the Coronovirus pandemic. An additional $66 billion has been added to the stimulus package to further support the Australian economy through the pandemic. This is over and above the $17.6 billion package announced on 12 March.

But, what does this stimulus update mean for us all? Well, it brings good and bad news.

The bad news is a dramatic clampdown and closure of clubs, pubs, restaurants, cafes, casinos, cinemas and churches from noon, Monday 23rd March 2020. It’s a huge blow for these small businesses and the people they employ. Thankfully however, all is not yet lost as they are still able to provide takeaway services to their customers. 

The Government has recognised the impact these drastic measures are having on the nations’ psyche and pockets, especially sole traders.  And so the good news is that sole traders, previously disadvantaged by the initial stimulus package, can now access a measure of relief.

Stimulus Package Updates

Briefly, the new updates to the stimulus package include:

  • Eligible sole traders will be able to access Job Seeker payment
  • Sole traders who have seen their hours of work or income fall by 20 per cent or more as a result of the pandemic, will be granted early access to superannuation
  • To help retain staff and continue operating, Not-for-profits and small businesses with a turnover under $50 million, will be given a tax-free cash payment from $20,000 up to $100,000
  • Small businesses will benefit from greater leniency for insolvency and bankruptcy
  • The Government will provide a guarantee of 50% to small and medium enterprise (SME) lenders for NEW unsecured loans of up to $250,000, to be used for working capital

Download our updated Coronovirus Stimulus Package Unpacked Guide as your quick go to reference.

A note of caution

The Government’s stimulus package is still a work in progress. So a note of caution, talk to your financial advisor to discuss how you can submit your applications and maximise the benefit from the Coronovirus Stimulus Package.

Jenny Joseph

WRITTEN BY:

Jenny Joseph