Did you know that Taxi Drivers are Sole Traders?
TAA has been keeping up to date with announcements from the Government and has rounded up the grants and funding available to sole traders and businesses. The following applies to sole traders at the time of publishing (8 April 2020).
TAA recommends you contact your accountant for advice relating to your individual circumstances.
Supports available include:
Small Business Support Fund
This small business grant of up to $10,000, put forward by the Victorian Government, is to be used towards business running costs, including salaries, utilities and rent. Eligible businesses must have staff, be highly impacted, and have a turnover of more than $75,000 and a payroll of less than $650,000.
More information at https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-fund
JobKeeper Salary Subsidy
The Federal Government’s Jobkeeper payment (valid for up to 6 months) is for businesses affected by the COVID-19 crisis - employees of these businesses are to receive $1,500 per fortnight. Businesses eligible include not for profits, charities and sole traders.
More information at https://treasury.gov.au/coronavirus/jobkeeper
PAYG refunds of up to $100,000 will be given to all businesses with employees as well as less than $50 million in turnover when they lodge their activity statemetns.
More information at https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/
Instant Asset Write off
Eligible businesses can immediately write off the cost of each asset that cost less than the threshold and claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use.
More information at https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/
Superannuation Early Release
The ATO has granted early access to superannuation - up to $10,000 can be retrieved.
More information at https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-your-super/#Compassionategrounds
Payroll, Land Tax and Liquor Licensing fee relief
Businesses with annual Victorian taxable wages of up to $3 million will have their payroll tax for the 2019-20 financial year waived. Land owners due to pay 2020 land tax, and who have at least one non-residential property and a taxable landholdings total below $1 million, have the option of deferring their 2020 land tax payment until after 31 December 2020. Liquor licence fees for 2020 will be waives (or refunded).
More information at https://www.business.gov.au/Grants-and-Programs/COVID19-Tax-Relief-Measures-VIC
Bank Loan payment freeze
Major banks are willing to freeze loan repayments on commercial lending for up to 6 months.
Check your banks website for details
Unsecured Loans (SME Guarantee Scheme)
The Australian Government will provide a guarantee of 50% to small-medium enterprise (SME) lenders for new unsecured loans to be used for working capital. SMEs with a turnover of up to $50 million are eligible to receive these loans - criteria applies.
More information at https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Supporting-the-flow-of-credit
New support packages are being introduced regularly by state and federal governments. Check the business support pages for your state for up to date information.
- COVID-19 help for small businesses
- Payroll tax relief measures for New South Wales businesses impacted by COVID-19
- Business recovery - support for businesses
- Intensive business support program for Northern Territory tourism businesses
- Queensland business and industry support for those affected by COVID-19
- Low interest loans of up to $250,000 for carry on finance with an initial 12-month interest free period for businesses to retain staff
- Funding for eligible Victorian businesses affected by COVID-19
- Tax relief measures for eligible Victorian businesses impacted by COVID-19