CORONAVIRUS - COVID-19 Update

With all the uncertainty surrounding coronavirus and the plethora of financial challenges it brings, our role as a responsible small business lender is now more critical than ever. 

We understand small businesses need financial support or relief to survive the next six to eight months as the ongoing COVID-19 pandemic continues to disrupt our economy.

As such, Capify remains committed to help and support your business during this challenging time and ensure you still have access to the right funding solutions. 

Please click here or call us on 1300 760 930 to speak to our lending team about the best finance options available to you.

The Australian government has announced several stimulus packages worth $189 billion to help SME’s combat the current economy.

As the COVID-19 situation continues to evolve, we understand this is a particularly challenging time for many small Australian businesses.

Like you, our business has also been impacted heavily by the significant measures being taken across the country to combat the spread of COVID-19 and feel it’s vital we work together to support each other during this time.

The Australian government has announced several stimulus packages that will help businesses combat the current economy.

Navigating through these various schemes can be confusing, which is why we have partnered with Access Professionals, an accounting firm specialising in business accounting & consultation, to simplify it for you.

Please watch our recent webinar below to learn;

• What COVID-19 Government Stimulus packages are available to small businesses
• Who is eligible
• How much you can expect to receive and by when
• Application process
• FAQ’s

You can access additional resources such as the COVID webinar presentation slides, fact sheets and FAQ’s via the following links;

• COVID Government Stimulus Webinar Presentation Slides
• COVID-19 Job Keeper FAQs
• COVID-19 Supporting Apprentices and Trainees FAQs
• SME Commercial Leasing Principles During COVID-19
• Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020

We have also listed some key points regarding the various packages available including relevant fact sheets below; 

Delivering support for business investment

• $700 million to increase the instant asset write off threshold from $30,000 to $150,000 and expanding access to businesses with an aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. The threshold applies on per asset basis, so eligible businesses can immediately write-off multiple assets. 
• $3.2 billion to back business investment by providing a time-limited 15-month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase.

Please click here to view the fact sheet for full details on eligibility.

Cash flow assistance for employers

• Boosting cash flow for employers – SME’s with aggregated annual turnover under $50 million to cover the costs of employee wages and salaries equal to 50 per cent of PAYG withheld for businesses that withhold tax, with a minimum of $2,000 and a maximum of $25,000 over six months. This will be a tax-free payment, benefiting around 690,000 businesses employing 7.8 million people.
• Helping businesses retain apprentices and trainees by offering a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for nine months. Max $21k for businesses with less than 20 employees.

Supporting the flow of credit

• The Government, Reserve Bank of Australia and the Australian Prudential Regulation Authority have taken coordinated action to support the flow of credit in the Australian economy, in particular for small and medium enterprises (SMEs). The Coronavirus SME Guarantee Scheme will provide a guarantee of 50% to SME lenders for new unsecured loans to be used for working capital for SMEs with a turnover of up to $50 million. 
• The Government will provide eligible lenders with a guarantee for loans with the following terms:o The maximum total size of loans of $250,000 per borrower.o The loans will be up to three years, with an initial 6-month repayment holiday.o The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.

Assistance for severely affected regions

• The Government has set aside an initial $1 billion allocation to support those regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.
• The ATO will also provide administrative relief for certain tax obligations (similar to relief provided following the bushfires) for taxpayers affected by the Coronavirus outbreak, on a case by case basis.

Please click here to view the fact sheet for full details on eligibility.

Along with packages to ease the financial stress on businesses, the Australian government have also established packages to help individuals and households to manage the economic impact of the Coronavirus;

Stimulus payments to households to support growth

• One-off payments of $750 will be paid to around 6.5 million lower-income Australians, including pensioners, other social security and veteran income support recipients and eligible concession cardholders.
• The one-off payment will be paid from 31 March 2020.

Please click here to view the fact sheet for full details on eligibility.

Income support for individuals

• Over the next six months, the Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight.
• The Coronavirus supplement will be paid to both existing and new recipients, in addition to the JobSeeker Payment, Youth Allowance Jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit, from the 27th of April.
• For the period of the Coronavirus supplement, there will also be expanded access to the income support payments for permanent employees who are stood down or lose their employment.

Please click here to view the fact sheet for full details on eligibility.

Early access to superannuation

• The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.
• Eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months (exact timing will depend on the passage of the relevant legislation). 

Please click here to view the fact sheet for full details on eligibility.

With the rapidly changing nature of the Covid-19 outbreak, information and advice from the Government can change quickly, so please visit https://treasury.gov.au/coronavirus and www.pm.gov.au/media/economic-stimulus-package for the latest update on government initiatives to support businesses in Australia.