My Opinion - The Stimulus for Business is going to take too long and it's not real cash for many businesses out there!
Firstly, let me say, the CoVID-19 Stimulus Package that what ScoMo has put together so far IS impressive but there's a big BUT.... It's just not going to come soon enough for many businesses and it leaves our sole trades and partnership clients who have no employees vulnerable and completely high and dry. Small business is the backbone of this nation! I bloody hope there is more to come because the business world is hurting right now and mid-may to see some relief is too far away!
Let me break it down for you....
SUPPORT FOR SMALL BUSINESSES Small businesses will receive 2 x tax-free amounts from $20k up to $100k. These payments will be delivered by the ATO as a credit on your BAS from late April. So, potentially IT'S NOT REAL CASH IN THE BANK! It means you just pay the ATO less on what you would have paid them. Where the stimulus exceeds your BAS bill, you'll get the refund. So only the balance will be cash in the bank. Now, I now this is still a huge benefit, but no money in the bank and not as much as it's dressed up to be is going to cost so many jobs! AND (as much as I'd love to be positive), I'm freaking out that people with an ATO debt, won't get a cent. We looked high and low and asked the ATO a million times over but we can't get an answer to this question. They elude to stimulus $$$ reducing the 'SAME' BAS that the stimulus is paid (aka, March Qtr BAS and June Qtr BAS) but the fact that they've been so general and we can't get an answer - well it worries me for those businesses who have just struggled through a drought and already have cashflow troubles.
ScoMo is also offering Gov backed unsecured loans of up to $250,000 for up to three years - but honestly, is it a business owners responsibility to go into debt up to their eye balls? Then spend the next 10 years recovering? The Qld State Gov also has 12-mth interest free loans that are available too to those that need it but please enter into debt with caution!
ACCESS TO SUPER I hate this, but I know it's necessary! You will now be allowed to access to $10k from your super from this financial year and again another $10k next financials to 30 September. It will be tax free and to be eligible you will be unemployed, made redundant, work hours reduced by 20% or a sole trader where business has been suspended or turnover reduced by 20%.
CASUALS + SOLE TRADERS - CORONAVIRUS SUPPLEMENT PAYMENT The doubled Newstart Allowance has been temporarily increased for you for the next 6 months and there is no waiting period. But, 'my bad' you need to wait until you can get onto MyGov or get through on the phone. May the odds be ever in your favour! In all seriousness though, Centrelink are working as best they can, they are overwhelmed naturally, but they will get to you. Sole traders who are making less than $1,075 a fortnight will be eligible to receive the full supplement. P/S - If you've never claimed Centrelink before and don't have a CRN (client reference number), it can all be done over the phone without the need to present ID.
There's plenty more in it but these are the big things to come from the Second Wave of Stimulus.
Taxchic out.