The COVID-19 pandemic has brought the world into a standstill.
Micro, small, and medium-sized businesses have incurred the heaviest losses. And with forced shutdowns in place, staying financially secure can be a challenge for entities around the country.
But this doesn’t mean the end of the road.
The government has enacted programmes to aid SMEs facing unprecedented financial losses.
Check out these government grants, stimulus packages, and other resources you can avail of below. This, combined with a careful business strategy, may help your business thrive during this difficult time.
Employees are valuable assets to any good company. And like business owners, they also feel the financial strain of COVID-19.
The JobKeeper Payment assists businesses with paying their employees by giving them access to a government subsidy.
The subsidy includes AUD 1,500 per employee every two weeks, starting on March 30, 2020 up to six months.
For employers, this will help them retain their employees and restart their operations once the situation gets better. For employees, this means they get to keep their jobs and earn an income, even with limited working hours.
For details on eligibility and application process, click here.
Sole traders — such as self-employed individuals — may also avail of the JobKeeper Payment if their income has reduced due to COVID-19.
The Australian government will provide sole traders AUD 1,500 per employee every two weeks up to six months.
This subsidy will help sole traders maintain their income and keep their employees amid the pandemic.
Click here to know more about eligibility, application process, and payment process.
Small businesses and nonprofit organisations can also apply for a cash flow boost to retain employees amid the spread of COVID-19.
The cash flow boost consists of two sets amounting between AUD 20,000 and AUD 100,000. This will be delivered in two sets from April 28, 2020 through credits in the activity statement system.
To access the cash flow boost, businesses are required to lodge their activity statement.
Visit the Australian Taxation Office website to learn if your business or organisation is eligible for the cash flow boost.
The government has also allowed sole traders and employees to access their superannuation early to cope with their losses due to COVID-19.
Those affected can access up to AUD 20,000 of their superannuation. AUD 10,000 will be available from mid-April to July 1, 2020, while the remaining AUD 10,000 will be available from July 1, 2020 to September 24, 2020.
To be eligible for this benefit, employees must have lost their jobs or had at least 20% reduction of their working hours. Meanwhile, sole traders must have had their business suspended or their turnover reduced by at least 20%.
Learn how to apply here.
To ensure the flow of credit despite the COVID-19 situation, the Australian government has coordinated with the Reserve Bank of Australia and the Australian Prudential Regulation Authority to offer the Coronavirus SME Guarantee Scheme.
Under this scheme, the government will provide a 50% guarantee to SME lenders for new unsecured loans to be used for working capital. This will boost the lenders’ capability to issue loans for businesses seeking additional funding.
The scheme will guarantee up to AUD 40 billion of new lending, starting by early April 2020 until September 30, 2020.
Click here for details on eligibility and application process.
This is a tough time for businesses around the world. With government grants and resources made to cushion the impact of COVID-19, your business won't have to suffer badly.
Vodien is also here to support you in coping with the COVID-19 pandemic. We may be separated by social distancing, but as a nation, we get through this together.
Check out our business continuity and opportunity guides here.