Posted March 31, 2020
The team at HABA understand exactly how trying, confronting and terrifying these times are for salon owners and small business owners across Australia. What all business owners need to focus on right now is their own health, the health of their teams and customers and the ongoing future of their business.
Hundreds of billions of dollars is being injected into the Australian economy by all arms of Government in order to keep Australians in work and businesses in business.
To that end, here are a list of stimulus options announced by the Australian Federal Government that will assist salon owners in assuring a future for your business when all of this has ended. And it will end.
Firstly, the most important and, to date the largest stimulus package is the JobKeeper initiative announced by the Government on Monday, 30th March 2020. This package is well worth investigating. See here for information: https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business/jobkeeper-payment
Answers to some of the questions being asked most frequently by our members are set out below:
- Businesses that self-assesses a reduction in revenue of 30% or more since 1 March, 2020 over a minimum one-month period are eligible.
- The grant applies to full and part-time employees as are casual employees who have been employed by the business for 12 months or more.
- The payment will be available for six months from 30 March, 2020.
- Payments are expected to be made to employers during the first week in May.
- If employees receive the JobKeeper payment, this may affect their eligibility for payments from Services Australia as they must report their JobKeeper Payment as income.
More information from our partners at Ai Group on Job Keeper Payments
APPRENTICE STIMULUS PACKAGE
For those members with apprentices, there is a specific stimulus package for employers that will cover half of all apprentices wages.
SMALL BUSINESS STIMULUS PACKAGE
Up to to $100,000 (tax free) is available for small and medium sized businesses that employ people, administered through the BAS System
SOLE TRADERS STIMULUS PACKAGE
For sole traders who have no employees, relief is available through Centrelink
DEPRECIATING ASSET STIMULUS PACKAGE
You can now deduct the cost of depreciating assets at an accelerated rate, from 15% each year to 57.5% each year.
SUPERANNUATION STIMULUS PACKAGE
The government is allowing individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. Individuals will not need to pay tax on amounts released.
There is an immediate new write-off threshold – from $30,000 to $150,000 for new or second hand equipment purchased before 30 June.
QLD BUSINESS STIMULUS
Queensland business will receive an initial cash injection of about $9,000, with a further $13,600 to be waived over the next three months.
Read more here > https://www.abc.net.au/news/2020-03-24/coronavirus-queensland-to-find-4b-to-save-small-medium-business/12076222
There is an increased threshold for statutory demand and more time allowed to deal with debt collections and payments.
New protections have been put in place for protection against insolvent training for directors of companies.
Given that this situation is constantly changing and evolving, and these are the stimulus measures announced in the last two weeks, it is highly likely that there will be additional measures announced in the coming weeks and months. Rest assured that HABA will continue to keep you updated on additional stimulus offerings for our members.
HABA would like to reiterate to all members that you absolutely need to consult with your accountant at this time to make sure that you get the right advice for your business. Do your research, check your business against any eligibility criteria and speak to your trusted advisor to ensure that you claim any and all stimulus that you are entitled to.
These are challenging times, but we are on your side and in this together with you.
HABA Members can call our team of IR specialists (please be patient as we are receiving a higher-than-usual volume of calls) and speak to them about your business’ specific needs at any time on 02 9221 9911 and press option 1. We want to help you through this difficult time.
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