At the time of writing this article, economies of countries around the world are suffering thank to the Coronavirus. The Australian government is doing every possible thing to support its citizens, community and business (small or large). The economic stimulus package was released on 12 March 2020covers support for a variety of business owners and the special case has been given to protect the jobs. Primarily, the stimulus package was targeted to:
- Supporting business investment
- Providing cash flow assistance to help the small and medium-sized business to stay in business and keep their employees in jobs
- Targeted support for the most severely affected sectors, regions and communities;
- Household stimulus payments that will benefit the wider economy
This stimulus package will support you if your small business has been impacted by the international outbreak of novel coronavirus (COVID-19).
Support for business investment
- $700 million to increase the instant asset write off threshold from $30,000 to $150,000 and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. For example, assets that may be able to be immediately written off are a concrete tank for a builder, a tractor for a farming business, and a truck for a delivery business.
- $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.
These measures start today and will support over 3.5 million businesses (over 99 per cent of businesses) employing more than 9.7 million employees or 3 in every 4 workers. The measures are designed to support business sticking with investment they had planned, and encouraging them to bring investment forward to support economic growth over the short term.
Cash flow assistance for businesses
- $6.7 billion to Boost Cash Flow for Employers by up to $25,000 with a minimum payment of $2,000 for eligible small and medium-sized businesses. The payment will provide cash flow support to businesses with a turnover of less than $50 million that employ staff, between 1 January 2020 and 30 June 2020. The payment will be tax free. This measure will benefit around 690,000 businesses employing around 7.8 million people. Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.
- $1.3 billion to support small businesses to support the jobs of around 120,000 apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage for up to 9 months from 1 January 2020 to 30 September 2020. Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice.
Stimulus payments to households to support growth
- $4.8 billion to provide a one-off $750 stimulus payment to pensioners, social security, veteran and other income support recipients and eligible concession card holders. Around half of those that will benefit are pensioners. The payment will be tax free and will not count as income for Social Security, Farm Household Allowance and Veteran payments. There will be one payment per eligible recipient. If a person qualifies for the one off payment in multiple ways, they will only receive one payment.
Payments will be from 31 March 2020 on a progressive basis, with over 90 per cent of payments expected to be made by mid-April.
Assistance for severely-affected regions
- $1 billion to support those sectors, 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. This will include the waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and Commonwealth National Parks. It will also include additional assistance to help businesses identify alternative export markets or supply chains. Targeted measures will also be developed to further promote domestic tourism. Further plans and measures to support recovery will be designed and delivered in partnership with the affected industries and communities.
The Australian government is also offering free small business support call centre service where you can talk to experts if you have any question. Our local teams are ready to talk you through the support and services on offer.
Contact us on 1300 654 687 to find out more or click here for more info.
Though governments are doing every possible thing to support the small and large businesses, there is only so much they can do. Many businesses will still suffer due to a lack of confidence in the market. So what can you do to save yourself? In this article, we will discuss a few proven methods which can help you not just sustain but also grow your business in these tough times.
1. Do not let go of exiting clients: Whatever you do either provide a service or sell the products, don’t let these tough times distract you from providing great service to your existing clients. Since getting new clients is hard, the least you can do for your business is to try to keep your existing clients and customers.
2. Digital Marketing: In these tough times, you do not want to spend too much on expensive marketing and promotion. Stick to the methods that are most cost-effective yet proven to deliver results. As per Vikas from SEO expert Brisbane , Search marketing requires least investment and can deliver great results. It can help you rank better in search results. When customers search your type of business then you will appear at the top. This generates more sales and business for you.
3. Approaching Prospects Directly: It is possible many small businesses to be struggling due to coronavirus panic. They may need some expert’s help, suppliers, distributors, technical help and so on to get back on their feet. If you think you can help a business, reach out directly on the phone, email or SMS. Tell them how you can help them in these tough times and how your unique skill or product can help them get back on their feet.
4. Youtube is another great free way to benefit your business. It’s a free platform with millions of users. If you wish to promote your product or service, it is best to create a video that deliver value to your target customers in these tough times. There are plethora of videos on YouTube, so make sure you make it unique, deliver value and then indirectly let people know how your business can help.
In the end, be ready for the impact. Even though you will do eveything you can, there are may be high probability that you may suffer some loss. Be prepared. Don’t panic but plan ahead. Cut down your expenses and focus on making a backup plan. Also, don’t forget to stay safe from corona virus.