Here is some information on the Government Stimulus Update
The Government has announced extensions and modifications to the JobKeeper, JobSeeker and JobTrainer stimulus measures. We are holding an online Business Forum to discuss the new budget and these changes on Thursday 6 August, so please join our Q&A session to have your questions answered. Click here to register.
JobKeeper & JobSeeker measures extended
If your business currently receives JobKeeper, your arrangements will generally remain unchanged until 27 September 2020. However, from 28 September 2020, employers seeking to claim JobKeeper payments will need to reassess their eligibility and prove an actual decline in turnover.
Eligibility will be determined with reference to actual GST turnover:
- To receive JobKeeper payments between 28 September to 3 January 2021, employers will need to show eligibility for both the June and September 2020 quarters.
- To receive JobKeeper payments between 4 January 2021 to 28 March 2021, employers will need to show eligibility for all three of June, September and December 2020 quarters.
There are also changes to the dollar amount of JobKeeper payments.
The JobTrainer package has expanded the number of businesses that can access the 50% apprentice wage subsidy and extends the subsidy until 31 March 2021. Businesses with under 200 employees can now access a wage subsidy for apprentices/trainees employed from 1 July 2020. Employers will be reimbursed 50% of an eligible apprentice’s wage up to a maximum of $7,000 per quarter per apprentice/trainee.
Employers will be able to access the subsidy after an assessment by the Australian Apprenticeship Support Network.
Coronavirus SME Loan Guarantee Scheme
This financing scheme for small businesses has been expanded:
- From 1 October, small businesses with a turnover of up to $50 million can apply for loans from 44 approved lenders.
- The maximum loan size will be increased from the initial $250,000 to $1 million.
- The maximum loan term has been increased from three to to five years.
- Secured lending will also be permitted, excluding commercial or residential property.
- Repayment holiday periods will be at the discretion of lenders.
- The initial phase of the scheme remains available for new loans issued by eligible lenders until 30 September 2020, with the second phase of the scheme to kick off on 1 October 2020 and run until 30 June 2021.
Victoria Business Support package
For Victorian businesses, the following additional measures have been announced:
- Cash grants of $5,000 are available for more than 80,000 eligible businesses as part of the government’s expanded Business Support Fund
- Business owners requiring mental health support can benefit from a $26 million investment in this area.
- For the worst-hit businesses in hospitality and the state’s night-time economy, a dedicated fund of $30 million has been established.
- Affected businesses with payrolls up to $10 million can defer their payroll tax liabilities for the first half of the 2020–21 financial year.