Support available for companies

The Australian Government has announced measures to support businesses impacted by the coronavirus (COVID-19). If you run a company and do not employ any staff you are eligible for: 

Temporary relief for financially distressed businesses

The Government is temporarily increasing in the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.

The package also includes temporary relief for directors from any personal liability for trading while insolvent, and providing temporary flexibility in the Corporations Act 2001 to provide temporary and targeted relief for companies from provisions of the Act to deal with unforeseen events that arise as a result of the Coronavirus health crisis.

Learn more about temporary relief for financially distressed businesses

The increased instant asset write-off

Under normal circumstances, individual assets less than $30,000 are eligible for the instant asset write off. The Government has lifted this threshold to $150,000 for assets that are either installed or ready for first use by 30 June 2020.

Read more about the increased instant asset write-off.

Accelerated depreciation deduction arrangements

A time limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.

Learn more about accelerated depreciation deduction.

Increased and accelerated income support

The Government is temporarily expanding eligibility to income support payments and establishing a new, time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months.

Read more about the increased and accelerated income support.

Assistance for affected regions, communities and industries

The Government has created an initial $1 billion support fund to provide assistance to industries and regions severely affected by the economic impacts of Coronavirus.

Find out more about the assistance for affected regions, communities and industries.

Tax support

The Australian Tax Office (ATO) is providing relief for some tax obligations for businesses affected by the outbreak, on a case-by-case basis. Contact the ATO’s Emergency Support Infoline for businesses on 1800 806 218 for more information or to request this help.

SME Guarantee Scheme

This 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.

Read more about the Coronavirus SME Guarantee Scheme

Information sourced from: https://business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business/companies