Being a business that relies on executing campaigns for largely retail clients, many with bricks and mortar stores, we’ve been impacted!
Our priority for few weeks, was to help our clients as much as we could, be empathetic to their many varied circumstances and most importantly keep our staff.
Admittedly, we’re in a category that should bounce back quickly and already we’ve found ourselves with new and different opportunities. So, when the JobKeeper announcement came it was great news for many of our clients, but for our own circumstances it just left us confused.
We’ve been lucky that our finance team and accountant have been supplying plenty of links and reading material to help us navigate the situation.
For those that haven’t yet been able to come up for air and get their head around exactly what’s available for their business or here is some help.
We’ve put together a summary and some quick links to help.
GST and PAYG
Under the new enhanced scheme, employers should have already received a payment equal to 100 per cent of their salaries and wages withheld (up from 50 per cent), with the maximum payment being increased from $25,000 to $50,000. In addition, the minimum payment is being increased from $2,000 to $10,000. When trying to understand the impact we found this fact sheet useful, it gives a number of scenarios relevant to different businesses.
Asset Write Off
The 100% immediate asset write off threshold has been increased from $30,000 to $150,000 between 12 March 2020 and 30 June 2020. If you are planning a sizeable purchase before the end of 2020 financial year, start by visiting the ATO website here to check eligibility.
A good starting point is the ATO website for the most up to date eligibility criteria. This has been a great boost for many businesses in the position to take advantage and since the implementation we’re finding more clients looking for new and innovative ways to sell product online.
Coronavirus SME Guarantee Scheme
SME’s with an annual turnover of less than $50 million can now apply for an unsecured loan of up to $250,000 at a reduced variable rate. There are no establishment or ongoing account fees, and a repayment holiday applies for the first six months with interest capitalised to the loan during this period. The maximum loan term is two years with no principal and interest repayments required during this term.
State and Local Council Initiatives
There is also support at State and Local Council level, such as:
- In Victoria, Grants of up to $10,000 are available for the most severely impacted sectors like retail, health and fitness and hospitality
- City of Melbourne is offering a number of grants including up to $5000 for e-commerce and digital marketing services and;
- City of Sydney has a similar scheme, the details of which can be found here.
With most of you living the new norm for the last 8 plus weeks, you’ve changed and adapted (until there’s more change). Now as business owners most of you are ready to try and get business moving.
Take advantage of advantage of our years of digital knowhow and months of helping clients grow through crisis and book a 30 minute strategy session with our business development team.