Well it was inevitable that we would be sending out another update around Covid -19 and any additional stimulus. We again suspect that this won’t be the last email regarding government stimulus. As your advisers, we will endeavour to ensure that any eligible tax & business oriented assistance offered is communicated to you, but you should also keep in touch with your professional bodies and industry associations. In the coming weeks we will be contacting our business clients in relation to the specifics of the stimulus packages. For now, please see below and from the team at Vantage, take care and stay safe.
What we have provided below is some really helpful information split into 3 components.
Round 2 - Stimulus
The second stimulus package was passed in parliament on the 23rd March 2020. The specifics of that, from a tax & business point of view can be viewed here.
We believe it would be helpful to mention that the Banks in conjunction with the Government will introduce the SME Guarantee Scheme. This scheme will provide businesses with funding to meet immediate cash flow needs, by further enhancing lenders’ willingness and ability to provide credit. Businesses with a turnover of up to $50 million will be eligible to receive these loans. There is very little information on the matter for now, and what is available is contained in the link below.
Both now and into the future some clients may experience difficulty in meeting their loan repayments. So it’s clear that the banks will have to provide some assistance by way of deferring repayments. This won’t happen automatically, so it’s up to customers to touch base with their respective lender/s. Below we have provided a great link from the Australia Banking Association. It contains a list of banks and their respective policies on the issue.