COVID-19 STIMULUS NEWSLETTER

GOVERNMENT CREDIT GUARANTEE FOR UNSECURED SME BORROWING

The Government has announced the Coronavirus SME Guarantee Scheme, whereby it will provide a guarantee to Small and Medium Enterprise (SME) lenders of 50% for new unsecured loans to be used for working capital. SMEs with a turnover of up to $50 million will be eligible to receive these loans.

Under the JobKeeper Payment, businesses significantly impacted by COVID-19 will be able to access a government wage subsidy of $1,500 (before tax) per fortnight per employee for up to six months. It is a flat $1,500 regardless of what the employee is paid.

The Australian Taxation office (ATO) has implemented a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak.

It is important to be aware that the specific integrity rules contain some integrity provisions to prevent artificial or contrived arrangements or schemes being used to access the funding from the PAYGW cash flow boost measures.