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Everything you need to know about the COVID-19 Government support initiatives

Business owners are expressing growing concerns surrounding the immediate and ongoing impact of COVID-19 on the economy. In an effort to limit the economic impact of the pandemic, the Australian Government has taken various measures to protect jobs, support investments and counter uncertainties as the circumstances develop.

Here at SP Solutions, we’re on hand to provide information about what this new legislation means for you and your business. With a wealth of experience offering prominent business consulting services in Melbourne to small and medium enterprises we are in a unique position to provide advice on how to obtain the most out of the changes introduced by the Australian Government.

New Government Stimulus Package
A $17.6 billion economic stimulus package has been introduced to help businesses stay afloat as we all adapt to the changes brought on by the impact of COVID-19. The stimulus covers a range of relief, tax and employer legislation to provide support in a range of business areas. We’ve outlined these below:

  • A range of measures have been taken to boost cashflow for employers with an annual turnover of less than $50 million
  • Government loan subsidy to enable SMEs to borrow from lending institutions
  • Temporary relief for financially distressed businesses undergoing bankruptcy proceedings and those dealing with the demands of creditors and businesses trading whilst insolvent
  • Support for households and retirees including access to superannuation
  • Write-offs for assets up to $150K
  • Adjustments to ATO debt
  • Wage subsidies for businesses employing apprentices
  • Payroll tax refunds and deferrals
  • Rent relief for commercial tenants
  • 2020 land tax payment deferrals for eligible small businesses
  • Government supplier invoices are to be paid within 5 days
  • $500 million business support fund to be established
  • $500 million Working for Victoria fund to assist those looking for work
  • Job Keeper payments to employers

As a business advisor accountant, the goal of SP Solutions is to help you understand these changes and how they could help your business. Take a look at our COVID-19 Government Initiatives Fact Sheet or watch our pre-recorded webinars with SP Solutions’ very own Sebastian Caruso to learn about the changes in greater detail.

Business Continuity Planning
Your business is likely to experience a profound period of change as you adapt to meet new public health requirements. You may be seeing a reduction in cash flow as fewer sales take place, have employees working from home or even be closed for a short time due to quarantine restrictions.

It’s likely that you have assessed the ways in which it may be viable for your business to continue to operate, but it’s also vital to consider the logistics of this including:

– How could your employees work from home, what are their workplace obligations?
– Do you have the financial resources to pay your bills for a short period of time if you see fewer sales?
– The best way to communicate with clients and customers throughout this period of uncertainty.
– How to keep things running smoothly as this period of potential disruption continues.

Arrange a consultation with a business advisor accountant for an in-depth analysis of your business and advice on planning. As a specialist accountant for tradies, we’ll also be able to point you in the right direction with financial planning.

Update your enduring power of attorney and will as soon as possible
It’s important to be responsible and consider a scenario in which you may be admitted to hospital or forced to self-quarantine and the implications of this on your business. You require EPOA so that someone you trust can make important business decisions where necessary. This individual should be someone that you can trust to be responsible and make decisions that are in the best interest of your business. Make sure you have an updated EPOA and Will and that these are accessible to your family in case of an emergency.

If you’re looking for business consulting services in Melbourne, or an accountant for Tradies, SP Solutions can provide industry experts to offer bespoke business and financial advice on the new government initiatives and how they can be utilised by your business.