The most important budget of a generation.

In partnership with renowned economist Warren Hogan, we’ve created an essential Federal Budget eBook and podcast. We hope the insights and perspectives contained within both provide Australian SMEs with welcome clarity and direction.

Federal Government and RBA Initiatives – Supporting SMEs

Government support for SMEs - Latest Announcement

The Australian Government, Reserve Bank of Australia (RBA), the Australian Prudential Regulation Authority (APRA) and State Governments have taken co-ordinated action to support the flow of credit in the Australian economy, in particular for small and medium enterprises (SMEs). Judo Bank has summarised these schemes below, to help you decipher the avenues of support that may be available to you.

Coronavirus SME Guarantee scheme

The Coronavirus SME Guarantee Scheme (SME Scheme) provides support for SME businesses. Under the SME Scheme, the Government will guarantee 50% of new, unsecured, loans made by SME lenders (like Judo Bank) to SMEs to be used for working capital.

For more information, please visit our FAQ page

$130 billion JobKeeper Payment

Businesses significantly impacted by Coronavirus will be able to claim a subsidy of up to $1,500 a fortnight in wages per eligible employee:

  • Subsidy is available from 30 March 2020, for a maximum of 6 months
  • Applies to Full time, Part-time and Casual employees
  • ‘Significantly impacted’ is defined as:
    • Turnover <$1 billion: turnover reduced by more than 30% relative to a year ago (of at least a month)
    • Turnover >$1 billion: turnover reduced by more than 50% relative to a year ago (of at least a month)

For more information visit: The Treasury - Support for Businesses

Tax relief

The credit of up to $50,000 of the PAYGW Tax obligation for businesses with turnovers less than $50m before June 2020 upon the lodgement of the BAS statement and a further credit up to $50,000 for the July – October period.

For more information visit: ATO website

Asset write-offs - 1

The government has increased the instant asset write off from $30,000 to $150,000 per asset for businesses with turnover up to $500m for purchases made between 12/3/20 and 30/6/20.

Note: this is only for items claimable under Division 40 – (it does not apply to purchase of luxury cars or capital/building improvements/works).

For more information visit: Australian Government FACT SHEET

Asset write-offs – 2

Same criteria as above, if an asset purchase cost is greater than $150,000 a 50% immediate write off is available in the 2019/2020 financial year with the balance falling under the normal depreciation rules.

Targeted wage relief

A 50% wage subsidy for apprentices and trainees for 9 months from 1/1/20

For more information visit: Australian Government FACT SHEET

Temporary relief for financially stressed businesses

A temporary increase in the threshold at which creditors can issue a statutory demand and the time companies have to respond

  • A temporary increase in the threshold for a creditor to initiate bankruptcy proceedings, an increase in the time period for debtors to respond, and extending the period of protection a debtor receives after making a declaration of intention to present a debtor’s petition
  • Temporary relief for directors from any personal liability for trading while insolvent
  • Providing temporary flexibility in the Corporations Act 2001 to provide targeted relief for companies to deal with unforeseen events that arise
  • For businesses struggling due to the Coronavirus, the ATO will tailor solutions for their circumstances, including temporary reduction of payments or deferrals, or withholding enforcement actions

For more information visit: Australian Government FACT SHEET

Extension of deferred repayments on Business Loans

Businesses loan facilities of up to $10 million (up from the previously announced $3 million small business threshold) will now be able to defer repayments for loans attached to their business for six months. During this period banks have also agreed to not enforce business loans for non-financial breaches of the loan contract (such as changes in valuations).

For more information visit: Banks to help commercial landlords who help tenants through COVID19

State Government Initiatives

Victorian Government Economic Stimulus Package

Survival & Jobs Package including:

  • A full refund of any payroll tax paid for the 2020 financial year. Businesses with wages of less than $3 million per annum will be eligible for the relief
  • Liquor license fees waived for 2020
  • Land tax deferral for eligible small business up to $1M in land value for non-residential property
  • Commercial tenants in Government buildings can apply for rent relief

For more information please visit: Economic Survival and Jobs Package

NSW Government - Economic Stimulus Package 1

  • $450 million for the waiver of payroll tax for businesses with payrolls of up to $10 million for three months (the rest of 2019-20). This means these businesses will save a quarter of their annual payroll tax bill in 2019-20
  • $56 million to bring forward the next round of payroll tax cuts by raising the threshold limit to $1 million in 2020-21
  • $80 million to waive a range of fees and charges for small businesses including bars, cafes, restaurants and tradies
  • $250 million to employ additional cleaners of public infrastructure such as transport assets, schools and other public buildings

For more information please visit: Official information about COVID-19 (coronavirus) from the NSW Government

NSW Government Economic Stimulus Package 2

  • Employing 1000 more Service NSW staff to assist SME
  • Deferral of gaming machine tax for clubs, pubs and hotels for six months
  • Deferral of duty on lotteries and keno for six months
  • Deferral of the parking space levy for six months
  • Deferral of rents for six months for commercial tenants with less than 20 employees and not-for-profits in all Government properties.

For more information please visit: The NSW treasury

QLD Government Economic Stimulus Package

$4 billion package to support health, jobs, households and Queensland businesses.

  • Payroll Tax concessions:
    • Refunds of payroll tax for 2 months
    • Payroll tax holiday for 3 months
    • Deferral of paying payroll tax for the 2020 calendar year
  • Waiving liquor licencing fees for venues that have had to close their doors
  • Rent relief for businesses who rent premises from the state government
  • $500 rebate on power bills for sole traders, small and medium businesses
  • Waiver of fees & charges for tourism business

For more information visit: Queensland Government

ACT Government Economic Stimulus Package

Economic survival package:

  • Access to interest-free deferrals of payroll tax commencing 1 July 2020 for all businesses up to a payroll of $10m (SMEs up to $2m payroll already exempt). Anticipated to free up additional $100m of funds
  • 6 month waiver on payroll tax for hospitality, creative arts and entertainment industries
  • $750 rebate for small business owners to help with power bills
  • Waiving of fees for food business registration and liquor licensing fees (excluding off-license) and outdoor dining fees
  • Rebate on the fixed charge on commercial rates for properties with an AUV below $2m
  • ACT Govt to expedite payment of bills to SMEs

NT Government Economic Stimulus Package

Job rescue and recovery plan:

  • $50m Small business Survival Fund – Targeted support for heavily impacted industries – eligible businesses can apply for an immediate survival payment of between $2k - $50k
  • $20m for Business Improvement Scheme with matched grants of up to $20k
  • $5m Business Structural Adjustment to upgrade online presence etc. eligible to all business with a focus on hospitality sector
  • $2m Tourism Resilience Plan with grants up to $50k.

For more information visit Business Recovery NT

Tasmania - Support & Stimulus Package

  • Payroll tax liabilities waived for hospitality, tourism and seafood industry businesses for the last four months of 2019-20.
  • Other businesses with payrolls of up to $5 million impacted by Coronavirus will be able to apply, based to have their payroll tax waived for April to June 2020
  • Waiver of a number of lease, license and parks’ entry fees for tourism operators.
  • A 50 per cent discount on liquor licencing fees and a waiver of all application fees for the calendar year 2020,
  • $5,000 grant for businesses that hire an apprentice or trainee in the tourism, hospitality, building and construction, and manufacturing industries.

For more information visit: Tas Gov FACT SHEET

Tasmania - Small business loan support package

  • Loans from $20 000 up to $250 000 are available to assistant eligible businesses for the purposes of supporting business continuity, viability and sustainability during the Coronavirus period.

For more information visit: State Growth Tas Gov

WA Government stimulus

  • $114 million in measures to support Western Australian small and medium businesses
  • a one-off grant of $17,500 for payroll tax paying businesses with a payroll between $1 million and $4 million
  • $1 million payroll tax threshold brought forward by six months to July 1, 2020
  • small and medium sized businesses affected by COVID-19 can now apply to defer payment of their 2019-20 payroll tax until July 21, 2020.

For more information visit: WA Gov

Disclaimer

This information is of a general nature only and does not take into account your objectives, financial situation or needs. In particular, you should seek independent financial advice and read the relevant terms and conditions and relevant product documents prior to making a decision. | Past performance is not an indication of future performance. | Eligibility criteria, fees and charges and terms and conditions may apply to Judo Bank’s products and services. | The information on this page is current as at 7 April 2020 | The statements and content on this page have been sourced from various government publications and summarised. Judo Bank disclaims, to the extent permitted by law, all warranties, representations or endorsements, express or implied, with regard to the material and does not accept any liability in relation to the quality, operability or accuracy of the material.