COVID-19 Relief Efforts for Australian Businesses - What to Know
With the COVID-19 pandemic running rampant throughout the world, many businesses are beginning to feel or already felt the stress of the disruption of day-to-day operations. For some, it is so severe that they had to close. Because of this, the government has started to provide all sorts of relief measures to save businesses that are bearing the brunt of the pandemic.
These reliefs, whether it be tax breaks or the likes, are different from state to state. Because of this, it is vital to know what kind of benefits you can receive depending on where your business is located.
Here are the benefits you can expect for some of the states in Australia for COVID-19:
Approximately $600 million has been allocated for relief campaigns in Western Australia, with around $110 million directed at SMEs. Small businesses are also given the ability to defer any of their payroll taxes until 21 July 2020.
As a small business here, while you might not receive as many benefits as you will be compared to other states, you'll still get enough to continue operating normally. Regardless, change is always a possibility, so keep an eye out for that.
While South Australia started with only $350 million for its relief efforts, another $650 million was later added, bringing the total to $1 billion. A large portion of the money will be directed at businesses, $300 million used for companies that faced the brunt of the pandemic. Another $60 million is used for payroll tax relief, and another $30 million is to pay for employees who have been laid off.
For your business here, your help will depend on your situation. If you're in an industry that is hit the hardest, such as tourism, you'll receive more support. However, whichever sector you're in, you'll still benefit from plenty of help to get through the pandemic.
Queensland has allocated approximately $27 million in funds to assist its local economy. The funds are used in a few ways, one example being that any fees or charges small businesses in Queensland have will be covered or waived. Another $500 million has also been announced to be used as loans for companies to help stimulate their cash flows. Special to the SMEs, the government in Queensland has offered payroll tax deferrals.
If you have a business here, you can expect to enjoy all these benefits, from waived fees to the ability to borrow money. However, do note that each company is capped at $250,000 for loans, which will be interest-free for a year.
New South Wales
Unlike Queensland, New South Wales has allocated a lot more to its COVID-19 relief efforts, approximately $3 billion. However, only about half of this is directed at businesses. In that money, around $80 million is used to help waiver any charge and fees for SMEs that are in the trade and hospitality sectors, as well as $450 million for exempting payroll taxes up to $10 million.
As a business in New South Wales, you can pretty much be at peace, knowing that you'll receive plenty of support to ensure that your business continues to remain up and running despite the pandemic. Another $1 billion campaign will also be launched to help ensure that companies like yours will operate normally.
With COVID-19, many businesses are struggling to run, but the government, both state and federal, are doing all they can to ensure that the country's economy doesn't collapse. As a business, bookkeeping has never been more critical than now. With money so tight, making the right financial decisions is vital to the survivability of your business. Because of this, if you haven't already, we highly recommend hiring business accountants with plenty of experience to take care of your finances.
If you're looking for accountants in Gold Coast, contact us today and see how we can help! We're happy to help.