You may experiencing financial hardship during this difficult time of the Coronavirus outbreak as a small business owner from the forced closure of your business. Here's how government financial support can help you.
UPDATE: Since midnight 25th March all beauty therapy, tanning, waxing, nail salons, tattoo parlours have been ordered to stop operating by the federal government.
You may experiencing financial hardship during this difficult time of the Coronavirus outbreak as a small business owner from the forced closure of your businesses and from the rapid decline of bookings in the weeks prior to this.
Here is a breakdown of what support is available from government for small business owners that have employees.*
- Tax-free payments from $20,000 up to $100,000 to help with outgoings like rent, wages, and bills and to keep staff on. You will receive a payment equal to the PAYG withheld from $10,000 up to $50,000 per payment. The first payment is available after BAS lodgement date April 28th and the second after July 28th.
- If you pay staff but do not withhold tax, your business is eligible for $20,000, available from April 28th and will be paid as a credit after your BAS is lodged.
- Another payment will be introduced for the 1st quarter of 2021 (July to September) and will come through the BAS lodgement process. UPDATE: This is a payment equal to the total payments received under this initiative with a minimum payment of $20,000 and a maximum payment $100,000. There is no paperwork involved and it will come from the ATO. To be eligible you must continue to be active.
- Payments are tax-free and are triggered by your BAS lodgements.
- Payments are made as a credit. So if the payment is higher than the tax owed, then you will receive a refund of the difference within 14 days.
- Quarterly lodgers will receive their credit quarterly and monthly lodgers monthly and is processed once your activity statement is lodged.
- You can find more info here.
What else can you do?
- Speak to your landlord if you are renting and ask if they will consider a rent reduction or grant you an extension on payments. UPDATE: Federal Cabinet and State leaders met Wednesday night to discuss a plan to protect commercial renters from being evicted if they are unable to pay their commercial leases. This will be announced in the coming days.
- Look after your mental health. This is an extremely stressful time. Exercise, eat well and get enough sleep.
- Also, if you haven’t already, go to the Health Department website and get everyone in your team to complete the COVID-19 Infection Control Training. It will take less than 30 minutes and you will receive a certificate once successfully completed. Let your clients know you are COVID-19 trained and your salon is safe.
*This is information is a guide and is not a substitute for financial advice. Speak to your accountant about your own personal circumstances.